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

I hope Sony can survive this recession, and hopefully this will go some way to sorting out their problems

The better not affect SCE, even if it does stop any further expansion, or the purchase of Level 5 (if it was every close to happening)

I agree that SE might be over, which would be unfortunate as I would have to look elsewhere for a phone, but I would assume Sony's movies would continue, as they do own Spiderman and Bond, both of which make tons of money. I am not sure what are the main unprofitable divisions other than the PS division (though I doubt that is in any danger)



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As long as the Gaming division is fine, I'm game.

Radical Reconstruction is what Sony needs, and what they'll get.



goddog said:
im gonna go out on a limb and say the sony ericson partnership may be over, and they will sell stakes in sony BMG, if not in the movie unit. I expect a few first party devs to be shuttered, and more charges for sony online. shuttering of TV production and research facilities

 

From the article:

Koya Tabata, a Credit Suisse analyst, recently warned investors that the restructuring of Sony is perilously overdue and must be radical. Sony management needs to make a rapid shift in its business model to one driven by earnings in the content business, he said.

The focus of research and development must be on software, he said, adding: “The most important thing is that, to improve organisational 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.”

When Sony Pictures and Sony Computer Entertainment Worldwide Studios are some of the more porfitable parts of Sony, why would they be shut down?  Even the weaker games from SCE's game lineup often manage to break a million (like Heavenly Sword), and excell well into profitibility (the exceptions being Lair - Factor 5 isn't first party, and they're already dead - and Sony's NBA series).

I agree that they should end the Ericsson deal, however.



The ps devision right now is one of the most vulnarable though atm. since the ps3 wiped out all ps2 earning and cancelling current ps2 and psp earning not to mention eating away ps1 earning. I dont expect the devision to be shut down. Just not purchasing any studios in the near future and scaling down the gaming devision or merging studios.



I TAKE NO SIDES

But how do you know Game Division isn't in danger? PS3 made more losses than PS2 made profits...



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goddog said:
@fishyjoe, do we know how much debt sony has?

 

From their last statement, it was around $11.8 billion in total debt.



series of “sacred cow-slaying” measures that they believe will abolish or fundamentally alter many of Sony's long-established business practices.

Sir Howard Stringer, is given free rein to take on the company's old guard and erase many of its legacies.

 

It saddens me that japanese culture/legacies/business practices will be lost just for something as shallow as £££. I understand why it must be so but its still sad. Money is erasing nations cultures. Sometime in the future prehaps there will be no nations left just corparations, no culture, no legacies, just just the grind for the almight dollar. I put most blame on amercia (not americans, just your goverment). If capitalism had failed or at least not been so good (upto recently) maybe money would not be literally life and death.



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neotea said:
The ps devision right now is one of the most vulnarable though atm. since the ps3 wiped out all ps2 earning and cancelling current ps2 and psp earning not to mention eating away ps1 earning. I dont expect the devision to be shut down. Just not purchasing any studios in the near future and scaling down the gaming devision or merging studios.

 

But why would you downsize the elements bringing in the money?  The losses are made on selling ps3 hardware at a significant loss, and that's where they need to make changes.  Continuing to sell hardware at a massive loss while decreasing the number of games you make and sell would only result in more losses overall.



FishyJoe said:
goddog said:
@fishyjoe, do we know how much debt sony has?

 

From their last statement, it was around $11.8 billion in total debt.

 

Sony has no money atm its all borrowed money atm.



I TAKE NO SIDES

makingmusic476 said:
goddog said:
im gonna go out on a limb and say the sony ericson partnership may be over, and they will sell stakes in sony BMG, if not in the movie unit. I expect a few first party devs to be shuttered, and more charges for sony online. shuttering of TV production and research facilities

 

From the article:

Koya Tabata, a Credit Suisse analyst, recently warned investors that the restructuring of Sony is perilously overdue and must be radical. Sony management needs to make a rapid shift in its business model to one driven by earnings in the content business, he said.

The focus of research and development must be on software, he said, adding: “The most important thing is that, to improve organisational 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.”

When Sony Pictures and Sony Computer Entertainment Worldwide Studios are some fo the more porfitable parts of Sony, why would they be shut down?  Even the weaker games from SCE's game lineup often manage to break a million (like Heavenly Sword), and excell well into profitibility (the exceptions being Lair - Factor 5 isn't first party, and they're already dead - and Sony's NBA series).

I agree that they should end the Ericsson deal, however.

 

for sony pictures, its more they are need some cash, and selling stakes in it will give them that while keeping control and revenue from it. as for sony SCE they have grown too big, Im not saying major closings, just a few smaller studios shuttered or combined into otherones, with a net reduction in upper management... the more I look at it the more i see their problems being largely caused by a lopsided amount of upper management 



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