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Sony to slash 10,000 (6%) of workforce by year's end

Salacious Crumb

Junior Member
Wrong.

They make incredible headphones, cameras, mp3 players, televisions (yes the high end ones), and the HMZ-T1. Also they have gorgeous smart phones that are mid-tier and reasonably priced (excluding Xperia Play).

The company needs to slash the fat and hire some new blood.

They do make all those things, but I don't think I would describe any one of them as incredible. The HMZ-T1 is pretty nice but very few people will want to buy it.
 

knitoe

Member
To me, Sony is a dumb company. Latest example would be why isn't there a Vita cellphone version, touch emulating sticks / buttons. If there was one, I would have gone with it instead, and maybe even, leave my iphone behind.
 
I hope this doesn't negatively impact the Vita :( I love it and I want it to succeed.

I would LOVE to see Sony kick the tar out of Samsung and release some amazing phones (though I'll probably still just use an iPhone :p)

Samsung has Sony pinned down when it comes to televisions, and you want Sony to fight back with phones? :lol :lol
 

dzukela

Member
We are moving closer and closer to a one console future. Too much money, risk, and complexity involved. A consortum needs to make baseline specs and they need to move on from there.
In my opinion, ms and sony should team up.
Exchange tech and patents, and focus on 2 compatible console with baseline specs.
Both can add extras, but a game for psxb4/720 must work on both consoles.
 

knitoe

Member
In my opinion, ms and sony should team up.
Exchange tech and patents, and focus on 2 compatible console with baseline specs.
Both can add extras, but a game for psxb4/720 must work on both consoles.

Why would Microsoft want to do that? They got into the console business to stop Sony. Now, they are making money while Sony is losing. They are on track.
 
To me, Sony is a dumb company.

I pretty much agree with this right here. They all seem mismanaged to some degree, but they're massive corporations, so that's no surprise. Sony, however, has been on a never-ending slide downward this entire generation and it doesn't look like it's going to stop any time soon with Vita out there sucking up more money and resources than it can make up for. This will go on for years.
 
Sony has been making really odd decisions lately...I'm still baffled as to why they put a photo editor (which isn't free btw) on a game console...
 

see5harp

Member
Windows 7 - Again, rushed out to compete with linux in the netbook wars, pretty much an os x clone.

MS Office - Did you not read my post? Outside of excel, not much has improved. Also people are moving to keynote, openoffice.

Skype - Bought, not designed by MS. You could buy the company Apple but I wouldn't call you someone who makes great products, just someone who bought smart.

As far as sales, again ms is just smart at packaging and licenses. At my company, and you will find this to be true in most, we only started rolling out windows 7. XP due to internal applications not being compatible since they are developed in house was the os of choice until just recently depending on hardware and os limitations/requirements. Peoplesoft applications for instance.

So we bought new machines all the time but they were packaged with windows 7 os and ms office 2007 licenses. Speaking of, we also held out as long as we could with exchange server 2003 before upgrading to exchange 2010 just recently, so we held on to office 2003 as well. even though we had to pay for every windows 7 and office 2007 license we bought with a new dell computer, didn't matter if we used it or not the license is bundled with the pc purchase. MS will tell you the adoption rate was through the roof, it was not it was just packaged to sell bundled regardless if you used it or not.

You really think Windows 7 was rushed to combat linux? Are we talking about consumer products or enterprise? I think regardless of how government and private practive obtain licenses, MS is being used (I really don't understand what difference there would be in adoption rate if Dell sold the computers without Windows or Office-most offices and government would be going MS). I don't understand how your office's slow movement to adopt Windows 7 has anything to do with whether MS created a quality product. Windows 7 out of the box is their best OS in years and so far it seems like pretty are happy with it. I have a macbook and it's great but there are many features in Windows 7 that I'd love to see in OSX. Another point-why are we even talking about MS...this thread is about Sony and how their incredible decline in networth might affect their Gaming/entertainment division. MS is not in this position.
 

Satchel

Banned
VfzCS.jpg



Executives taking bonus cuts and cutting jobs only slow the inevitable. Unless they come up with something that earns them a ton of money and people become interested in the brand again it's only a matter of time before the liquidation begins.

I dont think Sony will die off. They may just become an insurance company since that's the only thing they do that actually makes money.
 

Triple U

Banned
To me, Sony is a dumb company. Latest example would be why isn't there a Vita cellphone version, touch emulating sticks / buttons. If there was one, I would have gone with it instead, and maybe even, leave my iphone behind.

"Sony is dumb because they didn't make what I think they should make"
 

knitoe

Member
"Sony is dumb because they didn't make what I think they should make"

Unless you been living under a rock, smartphones are taking over. It's a no brainer, especially when you have cellphone and portable gaming business, to release a Vita smartphone version. Then, we are taking about Sony here...
 

DarkChild

Banned
Well Sony's first phone, the Xperia S, is in extremely high demand, outstripping supply in Europe atm. It seems like they have actually made their first good phone and they also have a Q3/4 flagship yet to come which will give them a shot at competing in Q4 where previously they would rely on their Q1/2 flagship which would be hopelessly outdated by the time holiday buying rolled around forcing them to cut prices to compete effectively with the new iPhone and Galaxy phones.
Thats because Sony Xperia S is finally a good phone. They had all they need in terms of tech, its just that their business model sucks ass. But, I think they are slightly late with Xperia S and Ion since now Quad Core phones are coming out and Galaxy s3 is near, that won't end well if they price it good.
 

see5harp

Member
Unless you been living under a rock, smartphones are taking over. It's a no brainer to release a Vita smartphone version. But, we are taking about Sony here.

I don't think a smartphone version would have been incredibly popular. Wouldn't they have to release a super closed off Android phone? I don't see many iOS users paying a premium to buy a $300 phone running some terrible Sony OS and I don't see any Android users clamoring to buy an Android phone with a super locked up OS.
 

statham

Member
I think MS sees the writing on the gravestone. sony-microsoft.com/microsoft-sony.com it was written and about to be told. expect alot of seppuku from the GT5/forza 3 graphics thread.
 

DarkChild

Banned
For sony its more about the internal streamline of their divisions and products, cutting out the older execs that held the company back is a step in the right direction. Even if ps3 beat the 360 and the wii, this restructuring at sony needs to happen.



depends on the region no?

Phones sell well outside of the US, they make money through internet service in japan.

Outside of the US microsoft isnt as popular, some countries are even looking into creating a linux standard to do away with microsoft windows as the industry standard. Companies and countries are tired of paying microsoft for licenses.
http://www.focus.com/fyi/50-places-linux-running-you-might-not-expect/

MS actually makes the worst products, starting with teh xbox, if not for the financial pool to pull from most companies would have folded after rrodgate, outside of gaming their windows mobile has falllen into the OTHER category, vista was a bust and windows 7 rushed to compete with linux who was dominating in the netbook arena and copied pretty much mac os x in the process.

that financial pool is just really from patents not from good products. google makes no money from a company running android as its free but ms makes money on patents used by android. shitty unsuccessful phone but successful patents.

The only thing MS does right is Servers and Excel and there really hasn't been any improvements here. My company was ready to switch out MS servers for ibm or others but they decided to buy out a few comanies and include the features we were paying for separately into a packaged bundle so that it would all run natively under one license. saved us the money of upgrading to another company. Which now a days is always about the cheapest options.

With the exception of excel that is pretty much unmatched, word and powerpoint haven't really advanced, if anything they usually get more complicated and resource hungry. I wonder how ms feels about the fact that since sales departments are now using tablets like the ipad for presentation instead of laptops they are switching to keynote and dumping powerpoint. I run open office at home myself. Windows OS I use is just primarily for gaming support, I'd run a hackingtosh or linux if I could on my own hardware.

Unless your an xbox fan or running a company with the need to push ms exchange, ms has nothing to offer the common consumer.
This is a joke, right?
 

Mandoric

Banned
I don't think a smartphone version would have been incredibly popular. Wouldn't they have to release a super closed off Android phone? I don't see many iOS users paying a premium to buy a $300 phone running some terrible Sony OS and I don't see any Android users clamoring to buy an Android phone with a super locked up OS.

Why would it have to be super-locked down? Open beta for Sony's Android app platform on Vita starts this month.
 

knitoe

Member
I don't think a smartphone version would have been incredibly popular. Wouldn't they have to release a super closed off Android phone? I don't see many iOS users paying a premium to buy a $300 phone running some terrible Sony OS and I don't see any Android users clamoring to buy an Android phone with a super locked up OS.

No mater how popular, would have added another avenue to overall Vita sold which means possibly more longterm support.

Remember, iOS became popular due to games. Vita phone should offer better gaming so it should attract users. As iPhone users, update yearly, I would be tempted to switch. Right now, I carry iPhone then maybe my Vita. If I can have both in one, I'll carry that.

Im serious.

Smartphones have took over the cellphone market but I'm confused as to why you are bringing this up in a conversation about a portable game system.

I am sure I am not the only one that thinks insteading of getting my kid a DS, 3DS, Vita or etc., I'll just let them have my old iPhone or get them iPod touch with all those cheap apps, games and learning tools.
 

see5harp

Member
Why would it have to be super-locked down? Open beta for Sony's Android app platform on Vita starts this month.

Please Sony won't even let you upload music via drag and drop or use a program like iTunes to manage apps/files/media. We'll see what happens with app development but I'm going to assume that everything will be filtered through the PS Store on Vita which is not the same thing as Android.
 

Koren

Member
I often think that they make great products and fail to market them.

For example, I truly love their Readers (ePaper devices) and while they where one of the first to market those, they'll probably be destroyed by Amazon Kindles (less convincing to me). And I fear that this could be one of their products that get the axe T_T
 

Raoh

Member
You really think Windows 7 was rushed to combat linux? Are we talking about consumer products or enterprise? I think regardless of how government and private practive obtain licenses, MS is being used (I really don't understand what difference there would be in adoption rate if Dell sold the computers without Windows or Office-most offices and government would be going MS). I don't understand how your office's slow movement to adopt Windows 7 has anything to do with whether MS created a quality product. Windows 7 out of the box is their best OS in years and so far it seems like pretty are happy with it. I have a macbook and it's great but there are many features in Windows 7 that I'd love to see in OSX. Another point-why are we even talking about MS...this thread is about Sony and how their incredible decline in networth might affect their Gaming/entertainment division. MS is not in this position.

Vista was too bloated to run on netbooks where Linux was owning the market. Windows 7 was pushed out sooner than planned to be able to compete in the netbook arena, this is of course pre iPad, that pretty much killed the netbook.

As for why mention ms, its a counter argument to sony not making good products. MS can receive the same claims.

To the response to someone else about if my post was a joke..


Microsoft blames netbook appeal, marketing costs for Windows drop
http://www.zdnet.com/blog/microsoft...-appeal-marketing-costs-for-windows-drop/1835
Microsoft’s planned layoff of 5,000 employees over the next 18 months is what most company watchers are focused on today. But performance of the Windows client division is also sure to be under the microscope, too.

OEM revenue — the money Microsoft earns by charging its PC maker partners a set amount for each copy of Windows they preload on new systems — was down $465 million, or 12 percent. OEM license units were down one percent, according to the company.


Dear netbook, thank you for Windows 7
http://arstechnica.com/microsoft/news/2009/03/dear-netbook-thank-you-for-windows-7.ars

When a new market of small-factor computers became very popular last year, Microsoft wasn't feeling too hot. Linux and Windows XP were being used, and the consumers buying these PCs were not able to take advantage of all the hard work that had gone into Vista.

If it wasn't for the netbook, that would have never happened; Microsoft is very much aware that it's not going to make much money offering XP on netbooks forever. So it's really no surprise that when Microsoft announced the Windows 7 editions last month, it promised that all editions would run on netbooks. To achieve this goal, the company has been tweaking like no tomorrow. It's never bothered doing that with a new Windows release, at least not to the extent that it is doing with Windows 7.

If Vista Can't Run on a Netbook, Will Windows 7?
http://www.itworld.com/windows/71891/if-vista-cant-run-netbook-will-windows-7


Sixty Percent of Companies Not Moving to Windows 7
http://www.pcworld.com/businesscent...ent_of_companies_not_moving_to_windows_7.html
Of course, Microsoft's licensing means that this unfortunate fact won't cut too deeply into the company's bottom line. While Microsoft's OS market may be stagnating, hardware is hardware, and it will fail and need replacing. That's when they'll manage to sell you yet another license that can be downgraded to XP.
 
3 year old articles are meaningless when talking about an industry that moves as fast as tech does. Microsoft is posting record earnings quarter after quarter lately.
 

see5harp

Member
Every large company goes through changes over the course of a few decades but I really don't think the amount of marketshare MS has lost to linux (lol), OSX, and iOS is comparable to the amount of marketshare Sony has lost to Samsung in the TV market. I never agreed with the statement that Sony makes zero quality products but I strongly disagree with the argument that MS is in the same kind of trouble with Windows 7.
 

Raoh

Member
Every large company goes through changes over the course of a few decades but I really don't think the amount of marketshare MS has lost to linux (lol), OSX, and iOS is comparable to the amount of marketshare Sony has lost to Samsung in the TV market. I never agreed with the statement that Sony makes zero quality products but I strongly disagree with the argument that MS is in the same kind of trouble with Windows 7.

Not saying that they are, but more like the other person above said, this happens to many companies. No one expected RIM to drop so badly, for an ms product to feel pressure from linux in the consumer market, for ms to compete so aggressively against sony/nintendo.

And who knows what to expect after a restructuring of sony. RIM has bigger problems than restructuring which puts them in a worse position.

But I still stand by my statement, MS doesn't make many great products. They do package and license well. They buy a few and kill off the rest.
 

see5harp

Member
Not saying that they are, but more like the other person above said, this happens to many companies. No one expected RIM to drop so badly, for an ms product to feel pressure from linux in the consumer market, for ms to compete so aggressively against sony/nintendo.

And who knows what to expect after a restructuring of sony. RIM has bigger problems than restructuring which puts them in a worse position.

But I still stand by my statement, MS doesn't make many great products. They do package and license well. They buy a few and kill off the rest.

I'm not saying Sony is doomed by any means, I just don't see why you are so defensive when their numbers are obviously not good. A lot of people are still using XP...MS is still probably making money off those licenses. When Windows and DirectX isn't the standard platform and we're all running Linux or OSX boxes at home and work, I'll start worrying about MS.
 

Gadfly

While flying into a tree he exclaimed "Egad!"
Windows 7 - Again, rushed out to compete with linux in the netbook wars, pretty much an os x clone.
MS Office - Did you not read my post? Outside of excel, not much has improved. Also people are moving to keynote, openoffice.

Skype - Bought, not designed by MS. You could buy the company Apple but I wouldn't call you someone who makes great products, just someone who bought smart.

As far as sales, again ms is just smart at packaging and licenses. At my company, and you will find this to be true in most, we only started rolling out windows 7. XP due to internal applications not being compatible since they are developed in house was the os of choice until just recently depending on hardware and os limitations/requirements. Peoplesoft applications for instance.

So we bought new machines all the time but they were packaged with windows 7 os and ms office 2007 licenses. Speaking of, we also held out as long as we could with exchange server 2003 before upgrading to exchange 2010 just recently, so we held on to office 2003 as well. even though we had to pay for every windows 7 and office 2007 license we bought with a new dell computer, didn't matter if we used it or not the license is bundled with the pc purchase. MS will tell you the adoption rate was through the roof, it was not it was just packaged to sell bundled regardless if you used it or not.

This statement by itself shows you are clueless.
 

Raoh

Member
I'm not saying Sony is doomed by any means, I just don't see why you are so defensive when their numbers are obviously not good. A lot of people are still using XP...MS is still probably making money off those licenses. When Windows and DirectX isn't the standard platform and we're all running Linux or OSX boxes at home and work, I'll start worrying about MS.

I don't think there is a need to worry about ms, just a difference in ms doing well because their products are better or because they package, market and license better.

mobile is pretty much non existent, but there is no reason to worry about ms because of licensing, patents and office products they can sell on iOS/Android. Never said they were in trouble just that their products are not that great.

I'll drop it though, this is a sony thread. Sony is trimming fat, streamlining divisions. Sounds par for the course to me.

Buying out erricson, moving soe into playstation, less product in each division and concentrating on markets they can cater too like medical equipment. Alot of movies we watch are filmed using sony cameras, lenses etc. Gaming wise they still hold a strong library and even the ps2 is still relevant in smaller countries where gaming is just now starting to grow.

If they can make an Apple like eco system I think that is the real key for them. Hard to justify a sony android phone and a playstation and an apple tv if they can't be used in conjuction when apple is promoting apple tv/ipad/iphone/os x cross communication. Windows is heading that way but sony has no pc presence outside of the vaio.

The xperia live dock is a step in the right direction (not in english but best video I could find)
http://youtu.be/8dATOs_jK3I
 
So it looks like it's the same thing that happened last year, they have to write off the value of tax assets from their balance sheet. They won't lose any extra cash, just the assets.

Basically when a company loses money they are allowed to count that against profits in future years to reduce their taxes(which becomes a deferred tax asset), because Sony has lost money so many years in a row, they can't count on making back the losses so they lose the assets.

It's only a huge deal if they continue to lose money so the pressure will be on big time for them to start making a profit ASAP. Ford had a similar thing happen and because they turned things around they ended up getting the tax assets back and had inflated profits last quarter.

What does it mean for the PS4? Basically it means that they can't afford to have the company as a whole lose a dime in future years so I would imagine the PS4 budget is going to be carefully monitored and scrutinized.
 

Sandfox

Member
So it looks like it's the same thing that happened last year, they have to write off the value of tax assets from their balance sheet. They won't lose any extra cash, just the assets.

Basically when a company loses money they are allowed to count that against profits in future years to reduce their taxes(which becomes a deferred tax asset), because Sony has lost money so many years in a row, they can't count on making back the losses so they lose the assets.

It's only a huge deal if they continue to lose money so the pressure will be on big time for them to start making a profit ASAP. Ford had a similar thing happen and because they turned things around they ended up getting the tax assets back and had inflated profits last quarter.

What does it mean for the PS4? Basically it means that they can't afford to have the company as a whole lose a dime in future years so I would imagine the PS4 budget is going to be carefully monitored and scrutinized.
Going by what you said it sounds like Sony won't be selling the PS4 at a loss.
 
So it looks like it's the same thing that happened last year, they have to write off the value of tax assets from their balance sheet. They won't lose any extra cash, just the assets.

Basically when a company loses money they are allowed to count that against profits in future years to reduce their taxes(which becomes a deferred tax asset), because Sony has lost money so many years in a row, they can't count on making back the losses so they lose the assets.

It's only a huge deal if they continue to lose money so the pressure will be on big time for them to start making a profit ASAP. Ford had a similar thing happen and because they turned things around they ended up getting the tax assets back and had inflated profits last quarter.

What does it mean for the PS4? Basically it means that they can't afford to have the company as a whole lose a dime in future years so I would imagine the PS4 budget is going to be carefully monitored and scrutinized.

Oddly enough they have projected a profit of just over $2bn for the current year but I guess we will find out more on Thursday.

The report said that the tax credit losses were specifically in the US so it is possible that they expect the EU and Japan units to make a profit but still lose money in the US.
 

Auto_aim1

MeisaMcCaffrey
Going by what you said it sounds like Sony won't be selling the PS4 at a loss.
They may sell at a slight loss; I don't think it's possible to have a significant leap without taking a loss. Going by their financial condition, $50 to $100 loss per PS4 seems plausible, but not more than that. The profits from PS3 and software sales will help them for a few years, until the PS4 starts bringing in significant profits. But yes, they cannot afford to take risks with unproven tech again like they did with the PS3 (Blu Ray, Cell).
 
I'm pretty interested in investing in Sony right about now. A bit of a gamble, but it's not unusual for an organisation to start producing its best when it's backed into a corner like this. Nintendo did, Apple did. I would even say Sony did it for awhile when Stringer first came in with Bravia and Blu Ray but they floundered and got complacent again and remained too bloated
 
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