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Forums - Sony Discussion - Sony:We can't survive without more layoofs,demand will be low for long time

Statements such as these perplex me to no end. How can you with a straight face speak about surviving at one moment, and then at another moment talk about curtailing expansion. Wouldn't the latter be a foregone conclusion. Are they actually still considering expansion as a viable model in this economy. This company is going to go bankrupt if it cannot move beyond lust.



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Well I figure as long as the games they make, sell pretty well, they break even no? As far as I know, most Sony produced titles are doing just fine, and they have content on they're store, which is pretty much strait profit xD I can't imagine that they're gaming division by itself is dragging the company down all that much. Maybe because a good majority of it's games aren't released yet, but when they are I'm pretty sure they'll do ok.



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ChronotriggerJM said:
@Meso Actually, as far as I know, the Gaming division is still profitable :P

The PS3 was definitely part of the problem I agree, but the gaming portion of that had little to do with anything I feel. The push for blu-ray probably wasn't the gaming departments goal, the invention of the Cell chip probably wasn't the gaming division's goal, and creating a virtual marketplace or essentially the Sony store was beneficial to most branches.

As far as I know the Games themselves are still selling pretty well and probably still bring them income :P

 

 the latest numbers published by sony in October reported a 400 million USD loss in that quarter. The quarter before reported a 700 million loss, I think. So no, it is not profitable.



Imagine not having GamePass on your console...

Sony is a company that is (primarily) focused on premium products at a time when more and more people favour more "budget" products, in an ecconomic climate that will push people to spend less on unnecessary things.



@Dirty, but that includes the losses of the PS3 as a console as well, which as I mentioned isn't due to the gaming developers themselves :P The PS3 was a trojan for Sony pushing so many different things into the market, almost none of which having anything to do with the division it'self. That just happens to be the division the project was written off under.



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FishyJoe said:
colonelstubbs said:
As i said in the other thread, have nintendo reported any layoffs, or have i just missed these stories?

 

Nintendo only has 3700 employees. Sony has 180,000.

In addition, Nintendo has one of the highest profit per employee ratios in the world of all companies not just video games companies.

 

 Goldman Sachs had the highest profit/employee in 2007, they lost 2.1 billion $ last quarter.

Things can change fast...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Not looking good for ol Sony.



Ail said:
FishyJoe said:
colonelstubbs said:
As i said in the other thread, have nintendo reported any layoffs, or have i just missed these stories?

 

Nintendo only has 3700 employees. Sony has 180,000.

In addition, Nintendo has one of the highest profit per employee ratios in the world of all companies not just video games companies.

 

 Goldman Sachs had the highest profit/employee in 2007, they lost 2.1 billion $ last quarter.

Things can change fast...

 

Nintendo is fairly transparent, GS was not. We know what Nintendo is selling and how they make money. It was not at all clear with GS. GS was heavily leveraged. Nintendo has a cash surplus.

There are almost no similarties between these companies.

 



Seraphic_Sixaxis said:
So sony really is doomed then? that looks pretty harsh to me. o_o'; ...

 

Doomed is a really gloom way to put it. The company employs close to 180,000 people so what we have seen so far is a 5% drop. Sony has survived through every other economic downturn since 194_. Things will hopefully get better when the world economy comes out of this slump.



Ail said:
FishyJoe said:
colonelstubbs said:
As i said in the other thread, have nintendo reported any layoffs, or have i just missed these stories?

 

Nintendo only has 3700 employees. Sony has 180,000.

In addition, Nintendo has one of the highest profit per employee ratios in the world of all companies not just video games companies.

 

 Goldman Sachs had the highest profit/employee in 2007, they lost 2.1 billion $ last quarter.

Things can change fast...

Nintendo doesn't have nearly the same amount of risk as Goldman Sachs did. They don't even have debt, none.

 



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