Sony To Halve Number Of Suppliers

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Sony has said that it will halve the number of parts suppliers it uses in a bid to slash costs.

It aims to reduce purchasing costs by 20 percent, or 500 billion yen ($5.3b/£3.4b), this year, according to an Associated Press report.

Earlier this month the company reported its first annual net loss in 14 years. It posted a $1 billion loss for the fiscal year ended March 31, 2009, a figure it expects to grow during the current business year.

In reaction it is moving to cut its parts suppliers from about 2,500 to 1,200.

In the past, Sony divisions each worked out their own contracts with different suppliers, but negotiations will be centralised going forward, said the company.

Sony’s games division, which had previously been given more freedom to procure parts than others, will likely be affected by the move. Last year the division managed to more than halve its operating losses, thanks in part to PS3 hardware cost reductions.

"We are fundamentally transforming Sony into a more innovative, integrated and agile global company," Sony CEO Howard Stringer said.



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This might help them in more ways than one....I see electronics in general getting cheaper....


Good to see they're finally doing something to reduce costs :)

wow they will be profitable just because they have reduced a lot of cost even if they had to cut 16,000 jobs but they are trying hard times

See...news like this makes me smile

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getting ready for a price cut? hmmm

"I don't have time to play video games anymore, but if I did, I would definitely choose the PlayStation 3 instead of the 360" - President Barack Obama

infamous8 said:
getting ready for a price cut? hmmm

Methinks this is what they're doing as well.

I don't think this will have a short term effect on ps3 pricing strategy. Obviously, their costs will go down, but it may be upwards of two years before they divest themselves of half their suppliers, depending on contracts that are already in place. That being said, the price of the ps3 will go down, regardless of any savings they might achieve by reducing supplier numbers

less suppliers = less customisation = less quality/diversity
less suppliers = less companies in business = less jobs on the market

This is rather bad news, both for Sony's products and for the industry of electronics...

_ So what chip should we use for the PS4?
_ Well we just signed a contract for chips in the PSP... company rules says we have to use the same parts in all our products to reduce suppliers.
_ Cool it'll reduce costs... and programers will be familiar with it too.
_ Should we make the PS4 into a portable too? I mean the architecture will be adequate for it.
_ Good idea, like that we can use the same casing too.
_ umh... I don't like where this is going...


READ: lower features on products, lesser innovation- probably cheaper quality parts... yup thats global agile aight!

Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business