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Forums - Sony - Sony on the brink of corporate upheaval, drastic changes

richardhutnik on 04 January 2009
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 



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Demotruk on 04 January 2009
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

neotea on 04 January 2009
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

Yeah remember how nintendo was able to survive in the n64 and gamecube area.  3rd parties almost all abandon them.  It was there 1st party titles that pull nintendo through.



I TAKE NO SIDES

makingmusic476 on 04 January 2009
Demotruk said:
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.

 

The losses are coming from hardware sales, and not the software produced by Sony's studios.



Demotruk on 04 January 2009
neotea said:
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

Yeah remember how nintendo was able to survive in the n64 and gamecube area.  3rd parties almost all abandon them.  It was there 1st party titles that pull nintendo through.

Nintendo is a conservative, low risk company. Sony are in a wholly different situation than Nintendo was.

 



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

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heruamon on 04 January 2009
ssj12 said:
Sony is probably going to cut manufacturing of all products 30- 50 %. They already cut PS3 manufacturing so they wont be bleeding as much. The PSP and PS2 they make money off of so they wont cut manufacturing.

We might see one or two facilities being temporarily shut down in Sony's main sites.

Still this isnt much of a shock. A ton of businesses are getting hurt. Nintendo might be seeing record profits but those profits are dropping the farther the worse the yen - euro and yen - dollar difference becomes.

I'd expect even Google to start hurting if this crap continues.

cutting manufacturing cost another 30-50% for the ps3 would be pretty darn impressive, especially if nothing is taken out of the console.  I have my doubts about their ability to do so, but they seem to be an efficient bunch.  I hope that sony con indeed recover, as they push another console makers to innovate and deliver better products to the consumer, which is what's most important, at the end of the day.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

neotea on 04 January 2009

one of these days nintendo might post a year as lost. but thats being unrealistic though.



I TAKE NO SIDES

Demotruk on 04 January 2009
makingmusic476 said:
Demotruk said:
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.

 

The losses are coming from hardware sales, and not the software produced by Sony's studios.

 

I realize that. That's why they won't be making big risky pushes to sell consoles any more. They won't aim to be the market leader but instead profit from software sales. This means a different kind of software strategy, similar to how Sega changed after dropping their hardware.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

richardhutnik on 04 January 2009
Demotruk said:
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.

That is true, but momentum and all the benefits that come with having marketshare, come from winning the console war.  In the videogame business, if you make yourself a niche player, third party developers leave you, and you end up not having people buy your console, and you drop off the cliff and eventually have to stop making consoles.  This is what happened to Sega and others.

 



Demotruk on 04 January 2009
richardhutnik said:
Demotruk said:
richardhutnik said:
Demotruk said:
My prediction for what Sony will do with SCE:

Keep it. They'll scrap other divisions and sell various intellectual assets for finance but since they wouldn't get a good price for SCE they'll cut their losses. ie. They'll continue to produce the PS3 but won't drop the price unless it's selling at a profit. They'll continue to make software, but more conservatively. Lower budget, lower risk titles. They'll lean on third parties for bigger titles. They will not spend money on R&D for future consoles until they are in a more stable financial position.

Cutting back on your own development, and leaning on third-party, when you are the last place console, is to end up putting yourself even further behind, because you don't have as much of a chance of producing exclusive killer apps.

 

 

The ultimate goal is not to win the console war, but to make money. Sometimes you have to cut your losses.

That is true, but momentum and all the benefits that come with having marketshare, come from winning the console war.  In the videogame business, if you make yourself a niche player, third party developers leave you, and you end up not having people buy your console, and you drop off the cliff and eventually have to stop making consoles.  This is what happened to Sega and others.

 

 

Yep. When I say "cut your losses", I mean it. This is a sink or swim situation for Sony, and the PS3 is tied to their leg.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.