[UPDATE] Sony is taking sacred cow slaying measures
- Posted January 5th, 2009 at 11:23 EDT by
- 6,010 views
- 17 Comments
It's starting to become more evident that the video game industry may not be as recession proof as everyone once though. While Sony has already stated that they plan to leave their gaming division untouched upon cutting jobs, the latest report from the New York Times seems to indicate that no division will be safe.
An inside source within the company states that Sony is preparing to take "sacred cow slaying" measures that will result in the alteration of the company's business practices.
According to the Times, the restructuring and axe chopping is set to take place shortly after the Consumer Electronics Show. Apparently, analysts have been warning the platform about a future involving several multibillion-dollar losses that can be avoided if they allow Sony Corp Chairman Sir Howard Stringer free rein over the entire company. While we doubt this will be the case, it seems to be one of the plausible options.
Of course, we're more interested to see how this will affect the gaming division more so than anything else. Despite the assurances that the division is safe, we doubt that can be the case if the company is setting itself up for such a rough stretch of monetary losses. We expect Sony to make some cuts within that division of the company however if allowing Mr. Stringer to take the gloves off and walk supreme across the boardroom is the only way to correct the situation, then we'll be first in line to hold his metaphoric gloves for him.
Update:
According to MCV, Sony is denying any rumors regarding corporate restructuring, stating that, ""We do not plan to announce additional restructuring measures at this time," said Atsuo Omagari. "We don't have any such plan."
Whether this holds true or not, is still yet to be seen. Of course, we'll all find out very shortly as January 12, the day after CES 2009 is rapidly approaching.
Source (for Righteous)
Comments
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Alpha2
- 11:33am GMT - January 5th, 2009
- 1
Sony is fairly smart with their money. they're not going to do anything drastic but I have to think if any money can be save by cutting a few jobs or re allocating people to other departments at lower salaries they're going to do it. It's possible that they give some people to small dev studios, by creating small start-ups it gives them places to shelter their people and at the same time spur more quality Sony developed titles.
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Girugamesh |
Shidousha- 12:35pm GMT - January 5th, 2009
- 5
Already been denied. And Kotaku (lol @ the little fanboys) posted an article saying that they thought the Playstation division was going to be shut down LOL
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teevanator |
teevanator- 1:23pm GMT - January 5th, 2009
- 6
i hearby attack the title
so, bigC3, that was aprox. 1hr
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edward_moffet |
edd- 1:25pm GMT - January 5th, 2009
- 7
good job PSU way to make people run around and scream "the sky is falling" with old news, people do you really think sony was going to just shutdown their games divison pfft not a chance and although their games division profits may be down they still show profit overall and that's what matters. They wouldn't cut down their games division anyway because the ps3 is one of the main reasons bluray is successful and bluray im sure is earning them a good chunk of their overall profits so even though the games division down the ps3 contributed to their overall well being. So don't fret people.
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Free_Agent
- 4:35pm GMT - January 5th, 2009
- 9
@7
I think you should read the article again, particularly the last paragraph. It's no secret Sony is in some financial trouble(along with many others). Unfortunately, this is going to be a very rough year for Sony. They will be hit harder than any other game division for obvious reasons(price, marketshare, etc..) I wonder how much this will effect the product though?
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jaybiv |
jaybiv- 11:15pm GMT - January 5th, 2009
- 14
I read the article on the Times of London's website. It appears to be more barking from analysts than anything else. What do they know about business? This past summer, many energy analysts had oil at $200 per barrel. We saw how that worked out. There could very well be some restructuring going on with Sony. It makes sense for them to get rid of unprofitable divisions. I do not see Sony abandoning any of the entertainment electronics or media divisions. It will be interesting to see how this develops.
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Dave
- 1:28am GMT - January 6th, 2009
- 15
Already debunked? lol. How is this debunked? Why, because Sony denied what an INSIDE SOURCE reports? Do you expect Sony to just come out and say, "Yeah, that inside source guy is legit."
No, since when does any company do that, never? The majority of this article is speculative opinion from analysts in regards to their views of Sony's financial situation on top of the remarks coming from a source said to be inside Sony's company.
It's quite hard to "deny" what analysts predict and forebode on top of agree with what an inside source (which company agrees with a leak?) said. I'm not here to "promote" people to buy PS3s. I'm here to report the news for what it is. This isn't a "Fanboy" site, it's a PlayStation site dedicated to those who enjoy the Sony console.
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Righteous
- 2:22am GMT - January 6th, 2009
- 16
you're here to report the news then report the news on both sides, report as well sony's response to this, when it's already been out quite a while. now that's balanced reporting. and when there's a rumor and there's official statement discrediting that rumor it is therefore debunked.
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