Sony denies reports regarding major division shut downs

by Majed Athab { Jan 5th 2009 at 10:53AM }

According to a story published by The Times, insider sources from Sony Corp. say the company is in for some "sacred cow-slaying" cost cuts. This alleged drastic restructuring goes so far as to suggest that there will be closures of company factories and that major divisions will be shut down. This news comes roughly a month after it was revealed that Sony had plans to cut 8,000 jobs from its non-SCEA workforce.

However, as MCV reports, Sony is already denying the supposed corporate restructuring. "We do not plan to announce additional restructuring measures at this time," said Sony spokesman Atsuo Omagari. "We don't have any such plan." Whether true or not, Sony's corporate outlook is rather dire; analysts are saying that a radical restructuring is long overdue. They suggest that Sony needs to focus on content and software, and to give Sir Howard Stringer complete control of the business.

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."

Source 1 - The Times [Via GamesIndustry.biz]
Source 2 - MCV

Tags: ps3, scea, sony

Reader Comments (Page 1 of 1)

AF @ Jan 5th 2009 11:11AM

Of course Kotaku is reporting this like they're gonna close the games division. Yeah, right.

Hife @ Jan 5th 2009 12:00PM

I went to Kotaku to see what you were talking about. Nonsense like that is why I quit going to that site.

Also, are Apple and Nintendo really the two competitors Sony is trying to catch up with? I don't think so.

Game_playa @ Jan 5th 2009 2:39PM

There too damn biased!
They try to put a bad spin on everything PS3! Especially Luke.

Game_playa @ Jan 5th 2009 2:39PM

They're*

magicfett @ Jan 5th 2009 11:20AM

Yeah you can smell the fear on the xbots these days.

Jack Tretton @ Jan 5th 2009 1:48PM

That's just your upper lip.

Dan Rabot @ Jan 5th 2009 11:20AM

I would like to think that Sony's game division is safe, but with the sheer number sof stupid parents buying their kids 360's for Christmas hasn't helped Sony.

It's a nasty situation, but I'm worried there may be a time where Sony can't continue selling consoles at a loss to a relatively small market.

In a better financial climate Sony would need to advertise and educate people as to the power of the PS3 but unfortunately in hard times cheap is where the majority go.

It's a shame and a failing of Capitalism.

required @ Jan 5th 2009 1:00PM

I thought Sony sold more PlayStations this season than Microsoft sold XBoxes. If they didn't, that's very ugly as Sony has the PS2, PSP and PS3 available.

ChuckJ @ Jan 5th 2009 1:16PM

Soooo a parent is "stupid" for buying a 360 for their kid, or themselves????
Yeah, stupid parents trying to save money in a shaky economy. How dare they!

You are a blatant idiotic fanboy with the inability to use common sense.

Invisible Robot Meat @ Jan 5th 2009 4:20PM

ChuckJ, to answer your first question, yes, yes they are. And to call someone an idiotic fanboy doesn't mean much coming from a blatant idiotic troll.

Dan Rabot @ Jan 6th 2009 4:42AM

Why would you buy a 360 if you're not stupid?

By the time you've even got the features of a PS3 (charging controllers, WIFI, Online, decent HDD) You've spent as much as a PS3 costs and you've got a less powerful, less versatile, less dependable machine. Not to mention you have to KEEP PAYING to play online.

I don't know about you but these days 99% of my gaming is online, saving by not drip feeding Microshaft money is not something I'd be happy to do.

Are Halo and Gears worth it? Really?

The Capitalist system should work by the best products succeeding because people buy them, not by one company making so much money on a product that they can use barely legal advertising...

".....on 360, console ony £129" - on the end of every multiplat game!!

....and making copies of their competitors innovative products (Singstar, Eyetoy, Buzz) and pumping cash into getting people like Burt Reynolds to advertise them (your cash by the way, your online registration fee - I mean they're not going to spend that on imporving your experience, or being innovative now are they)

Microshaft are not and have never been a company i wish to support, they are underhanded, financial terrorists of this industry.

In 4/5 years when their false advertising has pushed PS3 out of the developers minds (god forbid), and the only option for High def gaming is the 360 with hundreds of generic FPS's and nothing interesting or new, with millions of RROD's and an Apple style returns policy the gaming world will most certainly end up stuck in a boring rut.

Sony on the other hand can't afford to spend on advertising as they are selling at a loss to push technology forward on theri own steam. I think they deserve an award to be honest.

Then there's the life expectancy - How long will it be till the best games won't even fit on a 360DVD do we think Sony will just give Bill Gate's blu-ray drives?

So yeah, buying a 360 for your kids over Christmas is stupid like buying a VHS.

Jon Acheson @ Jan 5th 2009 11:30AM

What Christmas 08 says to me is that the current PS3 model isn't compelling to PS2 owners.

Maybe because it doesn't play PS2 games, ya think?

Daniel @ Jan 5th 2009 11:44AM

Nixing BC has been much more of a hit to sales than Sony wants to admit. They need to work on a firmware to add this back across the board ASAP.

Alphathon @ Jan 5th 2009 1:04PM

That would be fantastic, but I don't see it happening while the PS2 is still in production. I think I read here that it was only taken out (software BC I meen) because SCEJ was wanting to push sales of the PS2 more.

Mo @ Jan 5th 2009 1:06PM

i was a stickler for my 60 GB for backwards compatibilty but I *rarely* use it because well, ffs, ps2 games are SOO last gen.. they have to be severely unique (bushido blade, kengo) or related to something really epic (mgs1/2/3) other than that, im only playing ps3 titles. Although I really love seeing the splash screens come up for ps1 and ps2... so nostalgic

master811 @ Jan 5th 2009 1:15PM

Do that many people really miss playing PS2 games though? Most of the big PS2 titles have sequels either already out or coming out soon on the PS3.

The only game I really miss playing is Timesplitters (although I have got a BC PS3, I don't play it cos I can't transfer the saved game over as its one of the few encrypted ones).

Damn Free Radical, and I was so waiting for TS4 which will never come now probably :(

maidsandharem @ Jan 5th 2009 9:15PM

@ mo there are still ps2 games i play on my ps3 like capcom vs snk 2, marvel vs capcom and urban reign 4 players is crazy! seriously i think its because ps2 had the ability to let more people play on the same console thats why i still play ps2 games on my ps3

maxpontiac @ Jan 5th 2009 12:08PM

Corperations as a whole in 2009 will take a huge hit.

This financial meltdown is and will affect everyone eventually.

No one is safe.

Mo @ Jan 5th 2009 1:07PM

indeed my friends, indeed...

but man, people love making sony out to be the clumsy, weak, dumb, inferior team destined to fail. Everyone hates who is on top, and with the PS2 sony dominated.

ChuckJ @ Jan 5th 2009 1:19PM

Mo,

What in the hell are you talking about? Who is out there attempting to make Sony any of the things you mentioned. If hearing about what is going on with Sony, makes you think of clumsy, dumb, weak, etc then perhaps that is YOUR inner feelings on this.
No one is going out of their way to say any of those things about Sony. This is just news coming out. So it cant be reported at all? Is that what you are really saying here?

Hife @ Jan 5th 2009 1:43PM

ChuckJ,

Why are you on here? A click on your name was all it took for me to find out you are an xbox fanboy and don't have a PS3.
Maybe your inner feelings drive you to come to our website and justify your purchase eh?

Iridium @ Jan 5th 2009 8:03PM

The worst thing Sony can do is give more power to Stringer. The guy is an absolute moron. He was a frickin journalist at CBS for gods sake. He joined Sony through Sony pictures and knows nothing about the consumer electronics business.

The man is a backroom wrangler. Good at throwing money at people to get them to come over to his side. His career highlight is getting Letterman to come to CBS. Thats about it.

Stringer is the worst man for the job in every sense of the word. I wouldn't pay him $5 to run my company. But that is business today. The worst of the worst. The men of no IQ run business today.

Memo to Sony, drop the fraud that is Stringer and hire someone with experience in actually making cosumer electronics and you will be fine. This idiot is going to run you straight into the ground. Since he's come on board as president Sony has done so much better, hasn't it.

Nineteen88 @ Jan 6th 2009 5:36AM

If Kutaragi was CEO, would he have done better?

nakedatthecomp @ Jan 5th 2009 2:37PM

why did ps3fanboy just go all bold? or is my Firefox going crazy?

Brian @ Jan 5th 2009 3:56PM

come on all companies are hurting, the downward trend of to market is going to make people spend less. Sony ain't going anywere anytime soon but it maybe a smart idea for them to do some restructuring

bknight @ Jan 5th 2009 5:45PM

I cant see Sony cutting the Playstation Brand.
Its like I cannot see them cutting LCD TV or Camera's but Sony needs to make Playstation Brand profitable so that means no price cut.

I still think that Blu Ray drive in a console was included to early it should of been introduced into the PS4.

Hopefully Sony will not cut it even if you are a 360 fanboy having MS and Sony in the market is good for gamers, can you imagine if you had to buy a WII game over xmas?