It's confirmed that it's being looked at...

but they can't say if anythings been decided yet.

In otherwords... they may or may not be cutting staff in the games division.  Either way it would be a stupid thing to announce right befoer X-mas.

@NJ

If we´ve only seen the tip, what should we expect the rest to be like?....many more layoffs?

It's all about making a quick buck!  I use to gamble on day trading in several stocks years ago, when the market was much much safe for this type of stuff...if there is ever such a time.  Companies msot times experience a slight bump, when job cuts are announced, as personnel cost for usually a major cost driver.  Day trading is FAR more dangerous than casino gambling, imho...and I've got a $25k bill to prove it...lol.

At the end of January their financial report comes, which will most likely show a net loss (during a holiday quarter no less). More job losses are practically guaranteed since $1 billion/year in savings won't be enough. It's not just me saying so, I think the analysts have finally decided to open their mouths as you can see in a few of today's articles.

As for the longer term, ask the crystal ball ;)

Well their stock went up since they managed to put a positive spin on the story (a better tomorrow for Sony!). But I still don't see what you mean by "the tip of the iceberg." What are you referring to?

I'm guessing the whole "Sony is doomed" schtick?

I must say Mr. James, you are rabid today.

Well here are some examples from analysts today:

"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, a fund manager at Daiwa SB Investments.

"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company."

"There's nothing in the announcement about the speed at which the company will carry out the cuts or how positive they will be for earnings next fiscal year," says Mizuho Investors Securities (8607.T) analyst Nobuo Kurahashi.

Another thing that strikes critics as odd: Sony has yet to revise the ambitious three-year agenda of financial targets and product launches that it announced with much fanfare less than six months ago. So far, the company is sticking by its goals for a return on equity of 10% within three years, from 8.6% last year.

The cuts left analysts wondering what products Sony will rely on for future growth. The company's LCD TVs are a huge revenue source for the electronics division but have yet to turn a profit, and Sony officials are now downplaying expectations for a turnaround this fiscal year. "And what of the other divisions, such as video games?" says S&P's Kobayashi.

Sources:

http://news.bbc.co.uk/2/hi/business/7772597.stm
http://www.businessweek.com/globalbiz/content/dec2008/gb2008129_569144.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis

People are probably going to be buying a lot less expensive stuff after Christmas, and less of what they continue to buy, so Sony likely isn't out of the woods for at least another six months.

Not doomed.  But that EVERYONE thinks it's the tip of the iceberg and they will lay off more workers... etc.