Rumors: Sony to Cut Several Divisions

[John Funk]

Rumors: Sony to Cut Several Divisions

The world-wide recession, a stronger yen, and flagging PS3 sales may be taking their toll on Sony, as the electronics giant is rumored to be shutting down several divisions in a desperate cost-cutting measure.

According to Reuters [http://uk.reuters.com/article/technology-media-telco-SP/idUKT36000820090105?feedType=RSS&feedName=technology-media-telco-SP], Sony will likely announce closures of factories and major divisions early next month, though the company itself has denied that any such plans existed. Whether or not the rumors are true, there might just be reason to believe that they aren't far off the mark: the global recession is hitting everybody's pockets, a stronger yen means that Sony's vast overseas operations don't pay the bills at home like they used to, and the PlayStation 3 is struggling to stay afloat.

If it is true, though, one wonders how it might affect the company's gaming division. With so much money invested in the PS3 already, it probably wouldn't be wise to just pack up and leave the market to Nintendo and Microsoft. On the other hand, if Sony is still losing money on every PS3 sold and a price drop might just make things worse ... would it be better to just cut its losses to try and staunch the bleeding?

Or would cutting other unprofitable divisions - we've heard rumors that TV production is on the chopping block - to focus on getting the PS3 back in the black be Sony's best chance? Stay tuned for any further developments as the story unfolds.

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[sirdanrhodes]

Old news. But I hope, that it's not the PS3 for the chop, console wars ramp up prices for all.

 

[Baby Tea]

I'm waiting for Indigo to jump in and say something Pro-PS3 in light of this news.

I don't think Sony would abandon the PS3. Way too far fetched. Blue Ray is getting deeper and deeper in the market, and the PS3 is a fairly big part of that. If the PS3 was ONLY games, then maybe PS fans would have a bit to be worried about. But it's part Blue-Ray too, and it played a fairly important role in helping Blue-Ray kick out HD-DVDs.

You might say 'farewell' to Cybershots or Handycams or Walkmans or Viaos...but not PS3's.
No way.

 

[NewClassic_v1legacy]

There are a lot of facets that I'm sure Sony can cut before they need to put the gaming market on the chopping block. As far as the price of PS3s, I'm surprised Sony hasn't found a way to cut costs on the system, given it's now-increasing age.

Although I'm curious to see where this goes, I don't have much stock in Sony Games division being lopped apart too badly. There's a possibility, but I don't see it being too terribly likely.

I'll admit, given that this is still in the rumor phase, I'm a little skeptical of the whole thing. There's the possibility that the rumor is baseless, and that I've spent this entire time conjecturing the elaborate results of a work of fiction.

 

[AceDiamond]

i doubt they're shutting down the PS3. Blu-Ray is far too important to them.

 

[klc0100]

they already said that there will be a PS4 in 2010 .

Really where?

 

[DigitalSushi]

while i'm no fan of the TV' sony make, if they really chop that division off we wont get any more of those funky Bravia adverts that mess with your head.

 

[smallharmlesskitten]

I'm waiting for Indigo to jump in and say something Pro-PS3 in light of this news.

I don't think Sony would abandon the PS3. Way too far fetched. Blue Ray is getting deeper and deeper in the market, and the PS3 is a fairly big part of that. If the PS3 was ONLY games, then maybe PS fans would have a bit to be worried about. But it's part Blue-Ray too, and it played a fairly important role in helping Blue-Ray kick out HD-DVDs.

You might say 'farewell' to Cybershots or Handycams or Walkmans or Viaos...but not PS3's.
No way.

I'll jump in.

Sony have issued a denial saying that they will not cut any branches.

They do expect their operating profit to half.

The source is the business section of my national newspaper

 

[Jumplion]

I'm waiting for Indigo to jump in and say something Pro-PS3 in light of this news.

He only comes along when there are a billion-and-one Anti-Sony people, and in this particular thread if they were to say things like "Those money-grubbing-dirty-stinkin'-nazi-fucking-Sony guys diserve it!" then he'll come along and give the IBM and Microsoft from the Nazis.

Or if he's provoked by someone, but htat isn't the case is i-.

Shit...

Frankly I wouldn't be to surprised if Sony shut down a couple divisions, the whole economy and all, but to think that Sony would completely shut down the PS3 is...well, ludicrous to say the least. Hell even most people who hate Sony would have to agree that that's a stupid presumption, though that doesn't mean that they wouldn't hope...

 

[y8c616]

while i'm no fan of the TV' sony make, if they really chop that division off we wont get any more of those funky Bravia adverts that mess with your head.

Whats up with Bravia TV's? I recently got the latest 32" model at a special introductory price at Tesco and i think its great.

 

[mhitman]

they should just realize they've lost,

 

[Jumplion]

they should just realize they've lost,

I'm sorry if none of us can predict the future.