Sony on the brink of corporate upheaval, drastic changes

[Demotruk]

richardhutnik said:

Demotruk said:

richardhutnik said:

Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.

That is true, but momentum and all the benefits that come with having marketshare, come from winning the console war.  In the videogame business, if you make yourself a niche player, third party developers leave you, and you end up not having people buy your console, and you drop off the cliff and eventually have to stop making consoles.  This is what happened to Sega and others.

 

 

Yep. When I say "cut your losses", I mean it. This is a sink or swim situation for Sony, and the PS3 is tied to their leg.