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

PDF said:

So its going to be a rebuilding year

Just like my high school basketball team.

... or a rebuilding decade, like lots of professional sports teams.



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HappySqurriel said:
PDF said:

So its going to be a rebuilding year

Just like my high school basketball team.

... or a rebuilding decade, like lots of professional sports teams.

 

lions fan?

 



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NJ5 said:

Here is a list of Sony's major divisions:

Electronics
Sony Ericsson (Mobile phones)
Game
Pictures
Financial Services
Sony BMG Music Entertainment
All Others

Of those, the ones posting a loss in the last quarter were:

- Sony Ericsson ($18 million loss)
- Game ($429 million loss)
- Financial Services ($275 million loss)
- Sony BMG Music Entertainment ($45 million loss)

In the previous fiscal year as a whole, the Game division was the only one posting a loss ($1.35 billion at today's exchange rates).

If the article is right in claiming that major divisions will be abolished (a pretty bold claim), the Game division doesn't look safe at all in this context.

 

LIES!!!!

 



Tease.

PS3 is Sony's 8 to 10 billion loss burden. Sony has fallen since PS3 was launched.
Sony fans go on about XBox and XBox 360 costing MS $5 billion dollars. PS3 cost Sony double that amount. Blu-Ray has been a high risk investment from Sony. All the eggs have been put into one basket.
Sony is struggling to stay alive in the video gaming industry. Sony has to remember it has limited financial resources. MS on the other hand have virtually unlimited financial resources. Going head to head, blow for blow, price cut after price cut with MS could be the downfall of Sony.



NJ5 said:

Here is a list of Sony's major divisions:

Electronics
Sony Ericsson (Mobile phones)
Game
Pictures
Financial Services
Sony BMG Music Entertainment
All Others

Of those, the ones posting a loss in the last quarter were:

- Sony Ericsson ($18 million loss)
- Game ($429 million loss)
- Financial Services ($275 million loss)
- Sony BMG Music Entertainment ($45 million loss)

In the previous fiscal year as a whole, the Game division was the only one posting a loss ($1.35 billion at today's exchange rates).

If the article is right in claiming that major divisions will be abolished (a pretty bold claim), the Game division doesn't look safe at all in this context.

 

Do you have data like this on MS? Ninny?

 



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Squilliam said:
makingmusic476 said:
Squilliam said:
Given the number of consoles sold thus far, they would be wise to close down a few of their SCE studios to lower their overall operating expenditure. If HD Publishers lost money this generation and they target 100% of the HD market how can SCE studios be assumed to be profitable? Their big games tend to be expensive and long in development with an unknown quantity of bundling throwing us off their real sales figures.

 

Most HD-centric publishers release quite a few duds.  Sony is the opposite (outside of Lair, and they don't even own the developers).  I could see Sony ending the NBA series, and maybe making some small changes elsewhere, but their games in general sell very well.  7 out of the top 20 best selling ps3 games are published by Sony, and Resistance 2 should break into the top twenty in mere weeks.  Killzone 2, the next game in their line up, will probably outsell Resistance 2.

8 Million sellers in the database.

28 non Million sellers in the database.

Motorstorm -> Resistance 1 -> Gran Turismo 5P -> Uncharted -> Littlebig Planet -> Heavenly sword

or 6 of those million sellers have had official bundling and for the first 3 games the bundling was extensive. LBP I believe was bundled in the EU and Japan (with controllers)

 

Resistance 1 was not bundled extensively. It was in a starter pack bundle for 3 months in Europe.



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outlawauron said:
Squilliam said:
makingmusic476 said:
Squilliam said:
Given the number of consoles sold thus far, they would be wise to close down a few of their SCE studios to lower their overall operating expenditure. If HD Publishers lost money this generation and they target 100% of the HD market how can SCE studios be assumed to be profitable? Their big games tend to be expensive and long in development with an unknown quantity of bundling throwing us off their real sales figures.

 

Most HD-centric publishers release quite a few duds.  Sony is the opposite (outside of Lair, and they don't even own the developers).  I could see Sony ending the NBA series, and maybe making some small changes elsewhere, but their games in general sell very well.  7 out of the top 20 best selling ps3 games are published by Sony, and Resistance 2 should break into the top twenty in mere weeks.  Killzone 2, the next game in their line up, will probably outsell Resistance 2.

8 Million sellers in the database.

28 non Million sellers in the database.

Motorstorm -> Resistance 1 -> Gran Turismo 5P -> Uncharted -> Littlebig Planet -> Heavenly sword

or 6 of those million sellers have had official bundling and for the first 3 games the bundling was extensive. LBP I believe was bundled in the EU and Japan (with controllers)

 

Resistance 1 was not bundled extensively. It was in a starter pack bundle for 3 months in Europe.

It doesn't make sense that RFOM 1 outsold COD 2 on the Xbox 360 without extensive bundling.

 



Tease.

madskillz said:
NJ5 said:

Here is a list of Sony's major divisions:

Electronics
Sony Ericsson (Mobile phones)
Game
Pictures
Financial Services
Sony BMG Music Entertainment
All Others

Of those, the ones posting a loss in the last quarter were:

- Sony Ericsson ($18 million loss)
- Game ($429 million loss)
- Financial Services ($275 million loss)
- Sony BMG Music Entertainment ($45 million loss)

In the previous fiscal year as a whole, the Game division was the only one posting a loss ($1.35 billion at today's exchange rates).

If the article is right in claiming that major divisions will be abolished (a pretty bold claim), the Game division doesn't look safe at all in this context.

 

Do you have data like this on MS? Ninny?

 

Nintendo doesn't have different divisions for gaming, they don't even discriminate between Wii and DS revenue.

As for Microsoft the data is in their investors page (same as with Sony):

http://www.microsoft.com/msft/default.mspx

Microsoft is losing money on Online Services Business and Corporate-level Activity which is explained here:

http://www.microsoft.com/msft/IC/Popups/CorporateLevelActivity.htm

In the previous fiscal year they also lost money on the Entertainment and Devices division (which 360 is a part of).

 



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numonex said:
PS3 is Sony's 8 to 10 billion loss burden. Sony has fallen since PS3 was launched.
Sony fans go on about XBox and XBox 360 costing MS $5 billion dollars. PS3 cost Sony double that amount. Blu-Ray has been a high risk investment from Sony. All the eggs have been put into one basket.
Sony is struggling to stay alive in the video gaming industry. Sony has to remember it has limited financial resources. MS on the other hand have virtually unlimited financial resources. Going head to head, blow for blow, price cut after price cut with MS could be the downfall of Sony.

 

Your trolling is getting VERY tiring.  Now you're just making up numbers!  Sony never lost anywhere close to 8-10 billion on the ps3.  They only lost a bit more than 3 billion.

From Neogaf:

 

FY* Sony** Nintendo Microsoft
1998 974,000,000 629,000,000
1999 1,130,000,000 645,000,000
2000 730,000,000 421,000,000
2001 -409,000,000 726,000,000
2002 623,000,000 800,000,000 -750,000,000
2003 939,000,000 560,000,000 -1,191,000,000
2004 650,000,000 316,000,000 -1,215,000,000
2005 404,000,000 777,000,000 -485,000,000
2006 75,000,000 894,000,000 -1,262,000,000
2007 -1,969,000,000 1,489,000,000 -1,892,000,000
2008 -1,265,000,000 2,480,000,000 426,000,000
2009 51,000,000 1,026,000,000
Totals 1,953,000,000 10,762,000,000 -6,369,000,000

 



I don't claim to be an expert in business matters, but here's what I think Stringer will do if the other Sony executives give him the keys to the castle:

- Overall re-structuring which lays off many upper management positions and increases efficiency.

- Sell Sony Ericson because it doesn't seem to be that profitable.

- Potentially sell Sony BMG or atleast beform a big amount of restructuring with more emphasis on backing artists that have are low risk to being profitable.

- Highly doubt they would sell Sony Pictures but they will probably re-structure to focus more on big franchises like Spiderman and James Bond.

- I think there will be some bit of re-focusing in regarding to Sony cameras and camcorders. They will focuse less on HD Camcorders and high quality cameras and more on entry level and mid range models. Sony Walkman will probably close. Sony TVs should actually do pretty well because Sony is on the pioneering edge of OLED tech and when this becomes more mainstream 4-5 years from now they could stand to benefit a great deal. Same goes with Bluray which will become only more and more mainstream in the next couple years.

- I also highly doubt that Sony would sell their gaming division. But a big restructuring is in order:

        - Close down the following studios: SCEA San Diego, SCE Bend Studio, Bigbig Studios, and SCE Studio Cambridge

        - Increased unity betwen SCEA, SCEE and SCEJ, getting rid of tasks that can be performed at one instead of all 3.

        - More pressure for games that have been in development a long time to be released (Gran Turismo 5).

        - Increase Ads and business partnerships in Home.

        - Focuse on making the PS3 cheaper so they sell it at a small loss or break even.

        - Drop the price of the PS2 as a last ditched effort to get more sales before they discontinue it.

         - More focuse on downloadable games for the PSP, which has less risk than UMDs.

         - Less original titles and more sequels.

         - a whole new marketing strategy.

         - Sony will buy Media Molecule because they are small but still make big successful games.

         - They will probably back out of any third party exclusives they had been funding.

 

Sometimes you need a bad economy so that bad business practices get noticed and fixed and im sure Sony will be able to pull itself out of the hole and get back on its feet.