Further Job Losses at Sony
In America and Japan, apparently
26 Apr 2007
Link to this: http://news.spong.com/article/12382
A Reuters report claims that US and Japanese arms of SCE could also see redundancies. This follows the 160 jobs shed in the UK, with most of the job losses taking place at UK-based Sony-owned studios in London, Cambridge and Liverpool.
According tech site Beyond3D, 50 staff are to be lost from Liverpool Studio, 20 from Cambridge Studio and 50 from London Studio. 30 of the Sony Territories staff (dedicated to distribution and publishing) are to go as well.
The Reuters report states that SCE spokesman, Satoshi Fukuok, has told media that "potential job cuts are not the result of the PS3's slow start, but a response to changes in the game industry, including a shift to online distribution of software from packaged software sales."
It continues "Its (SCE's) game business is estimated to have made a loss of more than 200 billion yen ($1.7 billion) for the year ended March 31, making the PS3 the biggest risk factor for Sony's earnings growth, although it is not unusual for game makers to rack up a substantial loss in the initial phase of a console launch."
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2 comments on-line.
keep saying that.... lol thats how nintendo always operates... =)
-c
Please don't let your enthusiasm for a given platform confuse you into thinking that the platform holder is exempt from the immutable laws of product launch economics.
Nintendo may not sell its consoles at a loss initially after launch, and wait for improved production efficiencies to make them profitable later. But it clearly and definitely makes a loss in the initial stages of a console launch...
It has to recoup all the development, distribution and launch marketing costs before it goes into profit. That initial stage of loss may be shorter tham Sony or Microsoft's, but it stil exists.
First comment
Posted by crs117
...although it is not unusual for game makers to rack up a substantial loss in the initial phase of a console launch."
keep saying that.... lol thats how nintendo always operates... =)
-c
Latest comment
Posted by Rod Todd
crs117 wrote:
keep saying that.... lol thats how nintendo always operates... =)
Please don't let your enthusiasm for a given platform confuse you into thinking that the platform holder is exempt from the immutable laws of product launch economics.
Nintendo may not sell its consoles at a loss initially after launch, and wait for improved production efficiencies to make them profitable later. But it clearly and definitely makes a loss in the initial stages of a console launch...
It has to recoup all the development, distribution and launch marketing costs before it goes into profit. That initial stage of loss may be shorter tham Sony or Microsoft's, but it stil exists.
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