Further Job Losses at Sony

In America and Japan, apparently

Posted by Staff
Further Job Losses at Sony
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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Comments

crs117 27 Apr 2007 01:17
1/2
...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
Rod Todd 27 Apr 2007 04:28
2/2
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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