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

Munkeh111 on 06 January 2009
Grampy said:
A lot of the confusion is apparently being caused by a state of near open warfare between British born CEO Sir Howard Stringer and an entreanched beuracracy in Japan.

The stockholders are apparently demanding that he take charge and make deep radical cuts with everything on the table. Japan executives claim that they are planning no more cuts than already announced.

Ken Kutaragi, the so-called "Father of the PlayStation was an early casualty of this conflict when he was canned by Stringer for essentially ignoring him on making cost saving measures on the PS3.

To maintain any stockholder confidence, Stringer is going to have to do something dramatic and the very high profile of the PS3 as a money drain makes it a likely target, The question is whether the machine gets the axe or it's pricetag gets axed in order to boost sales. The least useful and perhaps likely strategy is to do nothing, A possible alternative would be to axe the PSP. To keep two non-profitable platforms could lead to a complete stock collapse.

The answer will probably be announced after CES.

Why would they axe PSP, it is profitable. I also think that axeing the PS3 would achieve little, as they have lost tons of money, and they are getting close to achieveing profitability



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Demotruk on 06 January 2009
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

 

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

 

 

They are competing with Apple moreso than Microsoft, on other fronts. Sony is alot more than games, they also do phones(competing with iphone) and music players(competing with ipod) and laptops(competing with macbooks).



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Spankey on 06 January 2009
Demotruk said:
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

 

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

 

 

They are competing with Apple moreso than Microsoft, on other fronts. Sony is alot more than games, they also do phones(competing with iphone) and music players(competing with ipod) and laptops(competing with macbooks).

 

Oh for sure, yet seeing as how they're only competing with Nintendo on the DS and Console market, they should at least have mentioned MS as a major compeditor too.



Proud Sony Rear Admiral

aug17th on 06 January 2009

A more likely candidate to be axed is Sony Life Insurance, a financial arm which was severly hit by the market crash. 



Grampy on 06 January 2009
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

Two possible reasons
1: improved or not, it's still their biggest loser and frankly an embarassment since its a constantreminder of lost position. Being third where you once lead and the publicity about it don't polish the corporate image.

2. investers are demanding MAJOR change. Slaughtering the most sacred cow sends a clear signal that everything is on the table. Everyone thought that the father of the Playstation was untouchable......

 



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Demotruk on 06 January 2009
Spankey said:
Demotruk said:
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

 

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

 

 

They are competing with Apple moreso than Microsoft, on other fronts. Sony is alot more than games, they also do phones(competing with iphone) and music players(competing with ipod) and laptops(competing with macbooks).

 

Oh for sure, yet seeing as how they're only competing with Nintendo on the DS and Console market, they should at least have mentioned MS as a major compeditor too.

 

 

You're looking at this from a gamer perspective, the article is not. They mention Nintendo and Apple because they are market leaders competing with Sony on various fronts. Microsoft is a market leader, but not in anything that they're competing with Sony over. If they would mention Microsoft, they would do just as well to mention Nokia, Samsung, other TV companys etc. etc.



A game I'm developing with some friends:

www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

Squilliam on 06 January 2009
Grampy said:
A lot of the confusion is apparently being caused by a state of near open warfare between British born CEO Sir Howard Stringer and an entreanched beuracracy in Japan.

The stockholders are apparently demanding that he take charge and make deep radical cuts with everything on the table. Japan executives claim that they are planning no more cuts than already announced.

Ken Kutaragi, the so-called "Father of the PlayStation was an early casualty of this conflict when he was canned by Stringer for essentially ignoring him on making cost saving measures on the PS3.

To maintain any stockholder confidence, Stringer is going to have to do something dramatic and the very high profile of the PS3 as a money drain makes it a likely target, The question is whether the machine gets the axe or it's pricetag gets axed in order to boost sales. The least useful and perhaps likely strategy is to do nothing, A possible alternative would be to axe the PSP. To keep two non-profitable platforms could lead to a complete stock collapse.

The answer will probably be announced after CES.

Actually I would say that would be the most useful strategy for the PS3. Do nothing with the price, just let the money come in from the sales of the blockbuster titles that they have been subsidising for the last 3-4 years. Essentially just let the product decline on its own and keep the revenue on hand in the short term. They must be paying something close to 15-20% interest if not higher considering their financial situation isn't looking rosy and they are getting loans to cover the day to day operating expense in a recession.

 



Tease.

madskillz on 06 January 2009
Grampy said:
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

Two possible reasons
1: improved or not, it's still their biggest loser and frankly an embarassment since its a constantreminder of lost position. Being third where you once lead and the publicity about it don't polish the corporate image.

2. investers are demanding MAJOR change. Slaughtering the most sacred cow sends a clear signal that everything is on the table. Everyone thought that the father of the Playstation was untouchable......

 

This. Every PSbot is talking about how the Entertainment, especially the PS3 is safe - and I can't help but ask - have any of you even worked for a bizness? If you don't move products, you don't make money and you have to let workers go. Investors and stockholders call the shots, not the company. They are the ones who have suck money into the company. They are assured of a return of some type - or warned that the profit is not coming right now or soon. When are the investors going to say 'Enough is enough?' How much longer are they going to ride the 'Profit's coming' train? What other products out there - with two generations of success - lands in 3rd place - and almost 3 years later - is still holding down 3rd place? And to think - the investors will keep holding on? Nah ... if giants like AIG, Fannie Mac and other companies can fail for bankruptcy and/or close, what is so precious about the PS brand that Sony investors won't say 'Cut our losses and let's start again?'

Just sayin' ...

 



Grampy on 06 January 2009
Squilliam said:
Grampy said:
A lot of the confusion is apparently being caused by a state of near open warfare between British born CEO Sir Howard Stringer and an entreanched beuracracy in Japan.

The stockholders are apparently demanding that he take charge and make deep radical cuts with everything on the table. Japan executives claim that they are planning no more cuts than already announced.

Ken Kutaragi, the so-called "Father of the PlayStation was an early casualty of this conflict when he was canned by Stringer for essentially ignoring him on making cost saving measures on the PS3.

To maintain any stockholder confidence, Stringer is going to have to do something dramatic and the very high profile of the PS3 as a money drain makes it a likely target, The question is whether the machine gets the axe or it's pricetag gets axed in order to boost sales. The least useful and perhaps likely strategy is to do nothing, A possible alternative would be to axe the PSP. To keep two non-profitable platforms could lead to a complete stock collapse.

The answer will probably be announced after CES.

Actually I would say that would be the most useful strategy for the PS3. Do nothing with the price, just let the money come in from the sales of the blockbuster titles that they have been subsidising for the last 3-4 years. Essentially just let the product decline on its own and keep the revenue on hand in the short term. They must be paying something close to 15-20% interest if not higher considering their financial situation isn't looking rosy and they are getting loans to cover the day to day operating expense in a recession.

 

As a practical solution I absolutely agree but I don't he can appear to not take decisive action and survive.

 



Spankey on 06 January 2009
madskillz said:
Grampy said:
Spankey said:

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Strange they mention Apple and Nintendo by name...but not MS?

Apple making a home console confirmed?

Anyway, back on topic, We'll just have to wat till the Sony q3 results and statements on 29 Jan to find out the truth.

Also, for Sony gaming division to pull back from -$1.5 billion to just -$500mil in a mere 2 quarters isn't that bad, is it? still got another 4 months to pull back to the black.

Two possible reasons
1: improved or not, it's still their biggest loser and frankly an embarassment since its a constantreminder of lost position. Being third where you once lead and the publicity about it don't polish the corporate image.

2. investers are demanding MAJOR change. Slaughtering the most sacred cow sends a clear signal that everything is on the table. Everyone thought that the father of the Playstation was untouchable......

 

This. Every PSbot is talking about how the Entertainment, especially the PS3 is safe - and I can't help but ask - have any of you even worked for a bizness? If you don't move products, you don't make money and you have to let workers go. Investors and stockholders call the shots, not the company. They are the ones who have suck money into the company. They are assured of a return of some type - or warned that the profit is not coming right now or soon. When are the investors going to say 'Enough is enough?' How much longer are they going to ride the 'Profit's coming' train? What other products out there - with two generations of success - lands in 3rd place - and almost 3 years later - is still holding down 3rd place? And to think - the investors will keep holding on? Nah ... if giants like AIG, Fannie Mac and other companies can fail for bankruptcy and/or close, what is so precious about the PS brand that Sony investors won't say 'Cut our losses and let's start again?'

Just sayin' ...

 

 

"bizness" lol. Have you ever learned at a "skool"?

Anyway, Sony BMG lost them more than the gaming division did last quarter, and the Gaming division has shown the most growth out of any segment last quarter excpet for Sony Pictures. In fact, those were the only two segments to show any growth at all last quarter.

Just sayin'...



Proud Sony Rear Admiral