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)