Sony America announce massive job cuts; insider says Sony is in REAL TROUBLE.

First, the official news:

http://news.yahoo.com/s/nm/20070607/bs_nm/sony_job_cuts_dc

http://www.engadget.com/2007/06/07/sony-announces-ps3-related-job-cuts-in-us-forgets-to-mention/

Sony announces PS3-related job cuts in US -- forgets to mention when or how many

Posted Jun 7th 2007 5:00AM by Thomas Ricker
Filed under: Gaming

It's not like we didn't see it coming or anything what with Sony's game division -- home of the PS3 -- recently posting a $1.91 billion loss for the year. But man, our hearts go out to those whose jobs at Sony Computer Entertainment are now on the chopping block. Thing is, Sony, while announcing plans to cut jobs in the US, is only turning the screw deeper by not providing any details. The move comes as Sony struggles to keep up with Nintendo which again snagged top-honors for the 4th consecutive month in the US market: 360,000 Wiis sold to the PS3's 82,000 while Microsoft sold 174,000 Xbox 360s. The gap between the Wii and PS3 sales in Japan is just as bad, if not worse. Fortunately for Sony, their Bravia LCD TVs, VAIO computers, and Handycams are all doing well enough to (mostly) offset the PS3 related losses. We'll have to wait and see if Sony's summer game catalog, bigger disks, and possible price cuts can reverse SCE's fortunes.

---------------------------------------------+++++++++++++++++++++++-----------------------------------------

Next, the PS3 insider known as "Sony Prophet" on the PS3forums talking about the job cuts a DAY before the official pres release today!

http://www.ps3forums.com/showthread.php?t=76759

Sony is in seriously deep ****.

You all know me as a fairly obvious Sony loyalist - and I still love my PS3. Damn thing's fun, even if the pickings are slim. My PSP goes everywhere I go. I love it. I say this because I don't want you to think this is fanboy rhetoric. I just want you to know what's going on.

Anyway, here's the situation...

PS3 hasn't been selling so hot. It's a fact that no one can reasonably contest. The system is sold at a monumental loss (several hundred dollars each, in fact) with the plan to make up the difference in software sales and royalties. Looking at the current situation (just go visit a Gamestop and check out the PS3 section), you can see the trouble with that in the short term.

Now one might say the long term plan is sound. Lose lots of money now, make it up later. Well there's another problem - many of the really huge 2007 titles are now 2008 titles. Killzone 2, Metal Gear Solid, etc - and many of the killer-app exclusives (Assassins Creed, Devil May Cry) are no longer exclusives. You can say Sony planned for that too. The best titles for any system, after all, are the first party titles. God of War 2 is one of SCEs biggest successes... and while games like Ratchet and LAIR have their own online followings, they are nevertheless niche titles... not GTA/GoW/Halo level blockbusters. Even Uncharted, which is amazing btw, is slipping under the radar.

Ok, now that you know all that... how are the short term losses looking now? Well, they're bloody astronomical. The short term losses are far beyond what anyone expected. The predictions of this situation were felt a few months ago when the entire company was placed on a hiring freeze. That is, no new employees can be hired no matter the losses. This is a pretty standard thing in big business when it looks like FYE goals are going to come up short. It happens every few years - especially when new hardware is launched... so there wasn't too much cause for concern.

But today was a massacre. SCE has laid off an undisclosed number of employees world wide. It's been a trickle here and there, but today the axe came down - suddenly, and without any warning. You can be assured a press release will be inbound sometime tomorrow with the usual buzzwords "Downsizing", "Stronger position going forward", etc... but what this means for anyone following the so-called "Console Wars" is that Sony is in seriously deep financial ****. They're a major company, they can take it, and they may yet weather this... but this should come as a staggering blow to consumer confidence. Sony is trying to cut their losses - and should those losses continue - what else might they cut?

This will be my last post as an industry insider.

------------------------------------------+++++++++++++++++++++++++++++------------------------

It's WORSE than I thought it was.

Damn...this is End

tomorrow i will sold my ps3...and buy other console 

Thank you Mr...I'm happy now and safe 

Thing is, Sony, while announcing plans to cut jobs in the US, is only turning the screw deeper by not providing any details.

SF4reborn

Maybe they are in trouble but hey wait till they say an official word!

Can't blame them! And not to flame but M$ had major lost when they sold Xbox and Xbox360...

I mean it's Sony, it can't die...Right?

they wont die but the ps3 might die if they dont sell very well. why make loads of the consoles if all they are doing is loosing money. the ps3 might have a short life. but if you think about it the ps3 costs 3 times more than the wii and the ps3 doesnt have 1 good game to make you want it. resistance is good but its just another fps its just like doom just a bit better looking. the wii has zelda and its a great game. sony should have done something to make mgs4 come out on the ps3 release, like paid them a couple of million because it would have made the sales go upd_ano

You know that Wii will die in 2 years right ?

When all mario and zelda friends will be out...

Ps3 sell 3 mil with 2-3 good games...now look at september to december this year almost 25-30 great title for ps3...Bom ! 

Which is why there stock is trading at near a 5 year high. Yeah, tell me how bad Sony is doing again?

http://finance.yahoo.com/q/bc?s=SNE&t=5y 

they wont die but the ps3 might die if they dont sell very well. why make loads of the consoles if all they are doing is loosing money. the ps3 might have a short life. but if you think about it the ps3 costs 3 times more than the wii and the ps3 doesnt have 1 good game to make you want it. resistance is good but its just another fps its just like doom just a bit better looking. the wii has zelda and its a great game. sony should have done something to make mgs4 come out on the ps3 release, like paid them a couple of million because it would have made the sales go upd_ano

Haha...somebody said Wii. ;)

Anyway, I'm not worried. Companies go through these things. 

bu..bu ... bu... Teh layoffs!!?!

To be honest... I don't care i don't work for Sony.