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Forums - Sony Discussion - Sony slashing jobs, leaving unprofitable businesses

This is pretty common among all corporations during a recession. That is one of the reasons why it is called a recession. I don't see why anyone is particularly surprised.



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http://www.gamesindustry.biz/articles/playstation-division-under-review-as-part-of-corporate-changes

It looks like the Playstation Division will in fact be affected by this.

Corporate reviews of the Games Division are underway, with further possible job cuts.



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Almost every major company is having the same financial problems. Sony needs to stop the bleeding, and wait for global economic conditions to improve.



We have too many economy "experts" on this site lol. Just sit back and let Sony fix the mess. They have many qualified people to deal with these things.



SMcc1887 said:
We have too many economy "experts" on this site lol. Just sit back and let Sony fix the mess. They have many qualified people to deal with these things.

For what it's worth, I've seen much more accurate predictions about the industry here than anywhere else, including "professional" analysts opinions. Before today, where else did you see predictions backed up by data that Sony would have an unprofitable quarter?

I'm not saying we're smarter than those analysts, perhaps there's some filtering going on there if you know what I mean...

 



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NJ5 said:
SMcc1887 said:
We have too many economy "experts" on this site lol. Just sit back and let Sony fix the mess. They have many qualified people to deal with these things.

For what it's worth, I've seen much more accurate predictions about the industry here than anywhere else, including "professional" analysts opinions. Before today, where else did you see predictions backed up by data that Sony would have an unprofitable quarter?

I'm not saying we're smarter than those analysts, perhaps there's some filtering going on there if you know what I mean...

 


Im just saying that although theres many good logical comments in this thread theres a few that are not. I dont think people know enough about Sony and their divisions to say that "Sony Pictures will get sold" lol:) Sony is a Massive company and therefore not stupid. Im sure they can deal with problems.

NJ5 said:
SMcc1887 said:
We have too many economy "experts" on this site lol. Just sit back and let Sony fix the mess. They have many qualified people to deal with these things.

For what it's worth, I've seen much more accurate predictions about the industry here than anywhere else, including "professional" analysts opinions. Before today, where else did you see predictions backed up by data that Sony would have an unprofitable quarter?

I'm not saying we're smarter than those analysts, perhaps there's some filtering going on there if you know what I mean...

 

Well, there are a lot of really smart people here.

Anyway, one of the bad thing for Sony is that their competitor aren't doing so bad right now: Microsoft, Nintendo, Samsung, LG, Nokia, etc.

Their strategy to rely on the brand name instead of the quality of their product hasn't paid off when the Koreans started to make really good products. I rather buy a LG or Samsung TV that is about the same quality as Sony than pay 200-300$ for it.

 



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SMcc1887 said:

 

Im just saying that although theres many good logical comments in this thread theres a few that are not. I dont think people know enough about Sony and their divisions to say that "Sony Pictures will get sold" lol:) Sony is a Massive company and therefore not stupid. Im sure they can deal with problems.

I agree with you on that... For me at least it was unpredictable which divisions would get affected. In hindsight, it makes sense they did the initial cuts on the electronics division as that's their biggest, but from now on I have no idea... My best guess is the phone/music business getting severely affected along with smaller cuts in all other divisions.

 



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NJ5 said:
SMcc1887 said:

 

Im just saying that although theres many good logical comments in this thread theres a few that are not. I dont think people know enough about Sony and their divisions to say that "Sony Pictures will get sold" lol:) Sony is a Massive company and therefore not stupid. Im sure they can deal with problems.

I agree with you on that... For me at least it was unpredictable which divisions would get affected. In hindsight, it makes sense they did the initial cuts on the electronics division as that's their biggest, but from now on I have no idea... My best guess is the phone/music business getting severely affected along with smaller cuts in all other divisions.

 


I agree with you......What I would say is that whatever measures Sony takes, no matter what anyone says........they are for the good of the Company.

SMcc1887 said:
We have too many economy "experts" on this site lol. Just sit back and let Sony fix the mess. They have many qualified people to deal with these things.

 

These messes can't be fixed quickly -- it will take years to fix the Playstation mess.  It was billions of dollars lost.

Look at the GI article.  One of the stated problems with Sony is that they don't have any core businesses with stable profits.  Prior to the PS3 their games division had very stable profits with approximately one unprofitable year every 5 or 6, and that unprofitable year was planned.

Sony needs to return their games division to profitability and the next serious opportunity to do that will be with the PS4.

 

I agree with you......What I would say is that whatever measures Sony takes, no matter what anyone says........they are for the good of the Company.

Not so fast.  Moves like cutting workforce and slashing R&D are rarely good for companies.  They may be necessary due to Sony's current cash problems, but if they were good for the company Sony would have made those moves earlier.

Also, it is not accurate to say, "Big companies must be smart because they're big."  Companies change as they grow.  They lose agility.  Sony was built around ideas that are now obsolete -- they used to have engineering teams compete to try to make the best product.  Now specializations leave Sony unable to make a lot of their own stuff at all, much less have competing teams do it in parallel.