Wall Street Journal on Sony.... Ouch!!!

[NJ5]

senseinobaka said:

NJ5 said:
Your post would make sense, but I have two problems with it. I don't see Sony's game division doing any significant layoffs yet, and I still don't see that they'll become profitable with the measures done so far. Did I misunderstand anything?

I dont think you can really expect layoffs in the gaming division. The sony owned labor is at a higher level (management and executive). The manufacturing, game development, etc are all outsourced. So layoffs would come in the form of not extending or cutting corners on contracts, which they have done.  Also the measures sony has taken has improved their situation and as component prices come down the effect will be additive. But as someone mentioned earlier, being in the black is not profit, profit it making enough to be in the black, recoup all losses, and then some more.

 

That's not true. Sony does a lot of game development, in fact they have more employees than Nintendo. 1900 at SCEE and 1200 in Japan, can't find data for SCEA but surely it puts it above Nintendo's 3800 employees.