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Forums - Sony - Rumor: Sony To Close "Major Divisions" Next Month

SMcc1887 said:
@Jerry

They have probably the best Mp3/Mp4 player in the market with the NWZ-A729.
Even if Sony got into even deeper trouble, surely the japanese Govt. would step in to help one of if not their biggest company

Ummm, let's hope not. Companies that usually get bailout fail anyway. If the company had a poor business model, then it would do nothing  to pump money into it. If the US automakers would have gotten the bail out they, the trouble would have just popped up again. The money does not make trouble go away.

Since Sony is being disrupted (by Nintendo amoung others) it would be hard to bounce back. Typically, companies that are disrupted will be destroyed unless they have a firm hold in society (Harley Davidson being one of them). It is very likely that the gaming division will go. If Sony understands disruption, they will cut it off now rather then catch gang green.



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*~Onna76~* said:
Ronster316 said:
awwwwww , poor sony............ muwahahahahahahahaha

 


And this ain't trolling? I'll beat the crap out of you in person if I had the chance. Now I know for sure that this website is pathetic biased and it ain't towards Sony *pulk*.

Meh, don't let him bother you. I'll never understand people who get off on other people's misfortunes, which honestly leads one to believe that they're seriously may be something wrong with him. For someone to devout so much hatred and attention to a company and a guy (Ken Kutaragi), without them really having done anything to that person... is extremely disturbing.

 



NJ5 said:
Groucho said:

Guys... Sony Computer Entertainment is one of the most profitable divisions of Sony, after you discount hardware costs. The article itself mentions that focusing more on "software" as one of the goals they are shooting for.

At Sony, "software" means games and PC products (like their music studio stuff). Only 8000 of Sony's over 150000 employees work in the SCE division. If they do anything, they will axe hardware/financial/manufacturing divisions and enlarge their software division. PS3 owners have nothing to worry about. Contrary to the "OMG everyone panic" idea presented in this thread by many posters, this could be one of the best things to ever happen to the PS3.

So you're saying SCE will ditch hardware and focus on making software? Isn't that similar to predicting Sony will be like Sega?

Note that I'm not saying it will happen, just trying to understand how this can be the best thing ever for the PS3 as you said.

 

Basically all I'm saying here is that SOny's next platform will likely not be a new media mover (i.e. Blu-Ray), or anything new or cool.  Very likely it will be based on the same hardware specs, or very very similar.  All Sony has to do, to reduce their gaming division hardware R&D and turn hardware losses into profits, is sit and live out the "10-year plan", as advertised.  The PS3 hardware will likely turn from loss/unit to profit/unit in 2009 -- as long as their are no serious R&D expenses, I think we can reasonably expect SCE to turn a decent profit for many years to come.  If you look at the quarterly losses over the last two years for SCE, you can see them getting closer and closer to profitability, at a pretty good clip -- very much in line with reduced PS3 manufacturing expenses.  While the entertainment division alone will likely not entirely recover the costs of PS3 development (IMO), once you factor in Blu-Ray royalties over the next decade, the PS3 has done exactly what Sony has set out to do with it.  Sony only looks bad to knee-jerk reaction, uninformed stockholders.  Most major stock analysts seem to agree that Sony stock is definately a "hold" or "buy" for long-term at this time.

Claiming that SCE software is unprofitable, because the Entertainment division bore the expense of PS3 R&D, and Blu-Ray player loss leading, is just plain wrong.  Sony will not close their game development studios.  Its ridiculous to think they'd be so short-sighted.

The next Sony platform could easily be an offshoot of the PS3, for a small fraction of the R&D cost of the original.  Nintendo did it this way.  Sony can do the same.  Most of the hardware costs from Sony's Entertainment division, after the PS3 loss/unit is dealt with, are likely R&D -- just sticking with the same (or nearly so) architecture (which can survive this and the next generation, if we've learned our lessons from the Wii yet) will allow them to reduce their major expenses for years to come.  Without R&D or per-unit hardware losses, Sony's Entertainment division will likely be very profitable in the next few years.

 



Sony needs change, they need to fix their brand name back. They may have to get new leaders because i don't like the decisions they have made the last couple years.


But, for those getting aroused thinking about Sony killing off the PlayStation Brand, keep dreaming.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
*~Onna76~* said:
Ronster316 said:
awwwwww , poor sony............ muwahahahahahahahaha

 


And this ain't trolling? I'll beat the crap out of you in person if I had the chance. Now I know for sure that this website is pathetic biased and it ain't towards Sony *pulk*.

You're just as pathetic to want to beat someone up from a comment they made on a website, grow up.

 



 

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pearljammer said:
*~Onna76~* said:
Ronster316 said:
awwwwww , poor sony............ muwahahahahahahahaha

 


And this ain't trolling? I'll beat the crap out of you in person if I had the chance. Now I know for sure that this website is pathetic biased and it ain't towards Sony *pulk*.

Meh, don't let him bother you. I'll never understand people who get off on other people's misfortunes, which honestly leads one to believe that they're seriously may be something wrong with him. For someone to devout so much hatred and attention to a company and a guy (Ken Kutaragi), without them really having done anything to that person... is extremely disturbing.

 

Why don't you ask Ronster why he dislikes Sony so much? maybe then you will understand ...

 

See a lot of people don't understand jack because the don't ask or inquire. This might help you.

 



 

Groucho said:

Basically all I'm saying here is that SOny's next platform will likely not be a new media mover (i.e. Blu-Ray), or anything new or cool.  Very likely it will be based on the same hardware specs, or very very similar.  All Sony has to do, to reduce their gaming division hardware R&D and turn hardware losses into profits, is sit and live out the "10-year plan", as advertised.  The PS3 hardware will likely turn from loss/unit to profit/unit in 2009 -- as long as their are no serious R&D expenses, I think we can reasonably expect SCE to turn a decent profit for many years to come.  If you look at the quarterly losses over the last two years for SCE, you can see them getting closer and closer to profitability, at a pretty good clip -- very much in line with reduced PS3 manufacturing expenses.  While the entertainment division alone will likely not entirely recover the costs of PS3 development (IMO), once you factor in Blu-Ray royalties over the next decade, the PS3 has done exactly what Sony has set out to do with it.  Sony only looks bad to knee-jerk reaction, uninformed stockholders.  Most major stock analysts seem to agree that Sony stock is definately a "hold" or "buy" for long-term at this time.

Claiming that SCE software is unprofitable, because the Entertainment division bore the expense of PS3 R&D, and Blu-Ray player loss leading, is just plain wrong.  Sony will not close their game development studios.  Its ridiculous to think they'd be so short-sighted.

The next Sony platform could easily be an offshoot of the PS3, for a mere fraction of the R&D cost of the original.  Nintendo did it this way.  Sony can do the same.  Most of the hardware costs from Sony's Entertainment division, after the PS3 loss/unit is dealt with, are likely R&D -- just sticking with the same (or nearly so) architecture (which can survive this and the next generation, if we've learned our lessons from the Wii yet) will allow them to reduce their major expenses for years to come.

 

I assume you're saying Sony could turn a profit in late 2009 by not cutting PS3's price. I agree with that, and in fact I think that's what they will do (not cutting prices until profitability is ensured). Spending hundreds of millions on price cuts when the whole company is hurting is not gonna happen.

However, this poses problems for the future of the PS3. Without a price cut, PS3 sales will take a huge hit throughout the year, the PS3 could sell significantly less than 10 million... 6-7.5 million comes to mind. This takes a lot of momentum out of it, and in turn makes it harder to profit when PS2/PSP software and hardware sales seem to be declining.

SCE seems to be in a terrible Catch-22 situation regarding the strategy for 2009.

 



My Mario Kart Wii friend code: 2707-1866-0957

Hyruken said:
Groucho said:

Guys... Sony Computer Entertainment is one of the most profitable divisions of Sony, after you discount hardware costs. The article itself mentions that focusing more on "software" as one of the goals they are shooting for.

At Sony, "software" means games and PC products (like their music studio stuff). Only 8000 of Sony's over 150000 employees work in the SCE division. If they do anything, they will axe hardware/financial/manufacturing divisions and enlarge their software division. PS3 owners have nothing to worry about. Contrary to the "OMG everyone panic" idea presented in this thread by many posters, this could be one of the best things to ever happen to the PS3.

 

 Not really sure losing over $3BILLION in 2 years could be considered "profitable". The money they are losing each year is declining due to finding and making parts cheaper for the console but it is still losing money. In 07 Sony lost $2.6Billion due to the PS3 and in 08 lost $1.16Billion by June 08. That was just 6 months. With the last 6 months of 08 due to be announced soon i think we can bet that it is increased not decreased its loses from June. Meaning it is very possible that in 2008 the PS3 lost $2Billion. Again that is very far from being profitable. Closer to being bankrupt then making money.

 

 first of all we already got 3 months of those last 6 months and they lost about 400k. Secondly why would they loose more money when A. new cheaper chips were introduced into the ps3 last half of the year and B. SW sales are way up. Last year Sony was losing more money per ps3 than this year and they still showed profit for 4th quarter.



Max King of the Wild said:
Hyruken said:
Groucho said:

Guys... Sony Computer Entertainment is one of the most profitable divisions of Sony, after you discount hardware costs. The article itself mentions that focusing more on "software" as one of the goals they are shooting for.

At Sony, "software" means games and PC products (like their music studio stuff). Only 8000 of Sony's over 150000 employees work in the SCE division. If they do anything, they will axe hardware/financial/manufacturing divisions and enlarge their software division. PS3 owners have nothing to worry about. Contrary to the "OMG everyone panic" idea presented in this thread by many posters, this could be one of the best things to ever happen to the PS3.

 

 Not really sure losing over $3BILLION in 2 years could be considered "profitable". The money they are losing each year is declining due to finding and making parts cheaper for the console but it is still losing money. In 07 Sony lost $2.6Billion due to the PS3 and in 08 lost $1.16Billion by June 08. That was just 6 months. With the last 6 months of 08 due to be announced soon i think we can bet that it is increased not decreased its loses from June. Meaning it is very possible that in 2008 the PS3 lost $2Billion. Again that is very far from being profitable. Closer to being bankrupt then making money.

 

 first of all we already got 3 months of those last 6 months and they lost about 400k. Secondly why would they loose more money when A. new cheaper chips were introduced into the ps3 last half of the year and B. SW sales are way up. Last year Sony was losing more money per ps3 than this year and they still showed profit for 4th quarter.

Much stronger Yen maybe? I swear this has already been posted!

 



 

I don't understand how the yen got stronger in a financial crisis!

surely it would get weaker along with other currencies