Ouch not good for Sony.

So it's official now that SCE will see cuts. I have the feeling that "headcount reduction" won't be overhead alone. I'm sure studio's will be closed and/or sold.

I get the feeling that they haven't got any plans for SCE yet, they just decided they have to do something and it will of course include some headcount reduction.

Just for reference, 250 billion yen in annual savings means almost tripling the cost savings from the 16,000 layoffs announcement.

"a reduction in headcount and other restructuring measures are expected for the gaming division as well as other divisions."

the reduction in headcount means layoffs for sure, which is bad in the sense people are going to be jobless in these tough times. but this is good for sony as a whole. and who knows once the economy is back and sony is ready alot of these workers could come back. anywho that was a side note, what i wanted to ask was is R&D part of the gaming division (like the R&D for the playstation of course)? if so do you expect that to go through the "restructuring measures"?

i think we can all agree on that the tv division is going to go through those "restructuring measures" and maybe the phone division (if they survive this)

quick opinion, as long as the ps3 maintains 100k+ sales a week and is not being outsold by the 360 2:1 i believe sony should keep the price as is for as long as possible to a. make profits and b. to have costs cut even more so a price cut on the ps3 is not as hurtful as it would be now. also outsourcing might not be a bad plan for them...

didn't expect sony to loss so much money

I don't think Gaming division should be cut, but definitely need an overhaul, especially them execs.

It's kinda stupid to cut gaming now when it's where the growth is.

R&D will for a big part be on SCE's budget. Exception are things like Cell and BluRay, that are innovative features for the whole of Sony, but hardware/processor design etc will be on SCE's budget.

I don't see the phone division mentioned in the cost saving graph, so I don't think that's a priority atm. It performed quite well the last couple of years.

I don't think Sony will look at 360 anymore. They have to focus purely on profitability for the whole division. Meaning they'll keep the current price for as long as they need to. Especially if job cuts are made, they won't lower the price. Especially in Japan employees are sacred, so they won't fire people to be able to afford a pricecut.

Is this significantly more than expected? I've seen people predict huge losses for a while now, but can't remember any of the numbers.

agreed. recently obama has used his powers and froze 100+- salaries of his staff members, citing "Families are tightening their belts, and so should Washington," can we see something like this from sony? why not freeze some of the top ceo/execs salaries to help cut costs. im sure they wont be pleased but you gotta do what you gotta do.

In terms of operating losses, it's what I expected:

http://www.vgchartz.com/forum/thread.php?id=55401

It seems analysts are saying they expected a smaller net loss.