A Reuters report (via Kotaku) claims that Sony will probably announce closures of Japanese factories and "major divisions" in early February. The original report from the Times of London cites inside sources that claim the company will be making big changes, but Sony spokesperson Atsuo Omagari claims "we do not have any such plan."
Last month, Sony announced it would be cutting around 8,000 employees by April of 2010, and closing two overseas manufacturing plants. A statement from Sony Computer Entertainment read, "In order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world."
It was also early last month that an analyst for CNN Money called the PlayStation 3 a sinking ship, citing declining sales and calling for hefty price cuts to the machine. But it's just recently that we've heard more optimistic news that the PlayStation 3 is almost breaking even on manufacturing costs. If that's the case, a price cut could be coming to keep the system competitive as consumers watch their wallets in the current economic climate.
All of this could amount to a very bleak picture for Sony's PlayStation division, but nothing is set in stone. The cuts made to major divisions could be trimming, rather than eliminating, and it's hard to imagine Sony doing away with the successful PlayStation brand altogether. We'll have to wait until early February to see if these cuts are coming, and where they'll be hit.
