SCE: Things are looking up. Is a price cut really out of the question?

Forums - Sony - SCE: Things are looking up. Is a price cut really out of the question?

Grampy

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Grampy on 01 January 2009

Max King of the Wild said:
^lol so... MS cutting jobs is because of? I doubt Sony wouldn't have cut jobs even if they left the console business.

MS is cutting jobs in part because of the same thing. Running business on the Barbie Doll model. Sell the doll at a loss and make it up on the clothes.

With RROD and pressure to cut profits to the bone, they are not making enough to maintain a huge staff. The don't develop enough software to make up for little to no profits on HW.

Ironically the one company that produces and sells enough software that they could practically give their console away, Nintendo, actually has a smaller payrole and is much more efficent.

In 2006
Nintendo's 3,400 employees generated $8.26 billion in revenue or $2.5 million each.
Microsoft employees generated $624,000 each (Fortune magazine)