HERE WE GO AGAIN... poor PS3 sales lead to even more layoffs at Sony. OUCH

PS3 will be discontinued by 2008 if things don't turn around drastically imo.

http://news.filefront.com/sony-computer-entertainment-lays-off-80-100-at-us-headquarters/

Kotaku is reporting today that Sony Computer Entertainment America let go of approximately 80-100 staff members. Brian Crescente, editor-in-chief of the gaming blog, said an internal source notified him of the layoffs as employees were asked to turn in badges and keys and leave the premises.
SCEA spokesman David Karraker said that the staff 'alignment' is to aid in the companies restructuring and allow it to maintain its position in the market. Karraker told Kotaku "These restructuring efforts are currently underway and do include the streamlining of our operations and other initiatives to further strengthen the business, reduce costs and increase operational efficiency. " When questioned about the number of employees involved the spokesman declined to mention specific figures.
The full details of the layoff are available in the Kotaku article, but this act follows a general hiring freeze at the company as well as similar layoffs at the European Sony Computer Entertainment offices a few months ago. The reasons for the restructuring are suspected to be related to the cost and sales of the recently released Sony PlayStation 3.
The worldwide downturn of SCEI and the recent departure of Ken Kutaragi in October of 2006 show a company in transition. Many speculate less than stellar sales of the high priced PS3 as well as the ongoing consumer apathy toward Blu-Ray may be contributing factors.

Wait till next year

Wait till next year

AgentA-Mi6

But but but...the cows tell me it's selling good compared to the other consoles at the same point in time.  I guess the fanboys are wrong...who would have guessed it.mikasa

Wait till next year

AgentA-Mi6

This is waiting! 

Roffles.

Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.Vandalvideo

Not really, their other departments are actually keeping the company in the black. 

[QUOTE="AgentA-Mi6"]

Wait till next year

jedigemini

Because it's a timeless saying.  Notice how they don't give a specific date or month?  It's because next year will never get here when they keep saying "Wait til next year".

The PS3 didn't get the nickname waitstation for nothing.

Wait till next year

AgentA-Mi6

BU BU WAITZ PLZ!!!!! 

Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.Vandalvideo

Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.Ibacai

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...  

Nintendo will go out of busyness after the GC, I tell you.tegovoltio

(the GBA was selling like hot cakes... and sold around 80million probly more like 90million now.)

And the GC wasn't being sold at a loss.  

Yeah it's just layoffs.  The PS3 is making Sony so much money, that they want to layoff people so they can make even more money! 

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.GundamGuy0

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

Microsoft laid people off 76 people in the Xbox department just a few years ago.  

[QUOTE="Vandalvideo"]Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.ramey70

Not really, their other departments are actually keeping the company in the black. 

[QUOTE="tegovoltio"]Nintendo will go out of busyness after the GC, I tell you.GundamGuy0

(the GBA was selling like hot cakes... and sold around 80million probly more like 90million now.)

And the GC wasn't being sold at a loss.

PS2 is still selling great if we use that and how do you know PSP isn't doing fine?

Also Xbox only generated red numbers for MS and now we get 360. 

I just love reading about things that have aboslutely nothing to do with the gaming.Teufelhuhn

Sure it does... maybe they got rid of the people in marketing, so they can come up with some ads that will actually make sense and sell the thing.  

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.GundamGuy0

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

not true, EA had layoffs in 06 and have grown and are from from in danger.  In fact they are opening a new department to make Wii games.  Lay offs happen to streamline and save money.  The PS3 is expensive to make and even if it sold more it would only make Sony lose more money.  All companies kill reduncies to save money. 

[QUOTE="GundamGuy0"]

[QUOTE="tegovoltio"]Nintendo will go out of busyness after the GC, I tell you.tegovoltio

(the GBA was selling like hot cakes... and sold around 80million probly more like 90million now.)

And the GC wasn't being sold at a loss.

PS2 is still selling great if we use that and how do you know PSP isn't doing fine?

Also Xbox only generated red numbers for MS and now we get 360.

I didn't say Sony was going under, just laying off people because there market is shrinking.  

SCEA spokesman David Karraker said that the staff 'alignment' is to aid in the companies restructuring and allow it to maintain its position in the market. jedigemini

:lol:

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.GundamGuy0

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

[QUOTE="GundamGuy0"]

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.ramey70

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

Microsoft laid people off 76 people in the Xbox department just a few years ago.  

[QUOTE="GundamGuy0"]

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.Javy03

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

not true, EA had layoffs in 06 and have grown and are from from in danger. In fact they are opening a new department to make Wii games. Lay offs happen to streamline and save money. The PS3 is expensive to make and even if it sold more it would only make Sony lose more money. All companies kill reduncies to save money.

Yes true, but you would think that Nintendo and Microsoft would need to do this too... why don't we hear about that? 

[QUOTE="ramey70"][QUOTE="GundamGuy0"]

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.Eltroz

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

Microsoft laid people off 76 people in the Xbox department just a few years ago.

Alright I just thought it was biased reporting. But i stand corrected.  

[QUOTE="ramey70"][QUOTE="GundamGuy0"]

[QUOTE="Ibacai"]Tons of threads on this already and it's just layoffs. Happens regularly in the business world. Let me know when you doomsayers have anything else.Eltroz

Why don't we hear about Nintendo or Microsoft laying off people if it happens so often...

Lay off's happen when your not growing but instead shrinking...

Microsoft laid people off 76 people in the Xbox department just a few years ago.

Which has zero bearing on the fact that he claimed you never hear of Microsoft laying off employees, which was innaccurate. 

Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.Vandalvideo

Yes. Yes I do.

http://www.networkworld.com/news/2007/051607-sonys-sales-profits-jump-but.html

They're having RECORD high sales in their other departments actually.

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

There is no way there will be a price drop anytime soon. They can not take a bigger profit hit when they can not even afford to keep their employees.Eltroz

Well they *may* be laying off people in order to ALLOW a price cut.

changed avoided to allow.  Not sure how I typed that.

[QUOTE="Vandalvideo"]Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.valmonte

Yes. Yes I do.

http://www.networkworld.com/news/2007/051607-sonys-sales-profits-jump-but.html

They're having RECORD high sales in their other departments actually.

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

 

Killfox

That's impossible. Some of the most highly educated and respected minds in the business world post on system wars and have clearly said otherwise.  

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

Killfox

Did you even read it?  It's not like he gives a real answer as to why it happened.  Just that it is due to changing markets and multiple issues.  So yes it's more than just the PS3 crappy sales, but also what caused those crappy sales.  Like people wanting real online experience. 

====

His quote:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

 In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

[QUOTE="AgentA-Mi6"]

Wait till next year

jedigemini

I like it when they sat that :lol:

There is no way there will be a price drop anytime soon. They can not take a bigger profit hit when they can not even afford to keep their employees.Eltroz

[QUOTE="Killfox"]

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

mikasa

Did you even read it?  It's not like he gives a real answer as to why it happened.  Just that it is due to changing markets and multiple issues.  So yes it's more than just the PS3 crappy sales, but also what caused those crappy sales.  Like people wanting real online experience. 

====

His quote:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

 In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

[QUOTE="valmonte"]

[QUOTE="Vandalvideo"]Do you have any proof they are from the "gaming department". Sony is doing pretty bad in a lot of departmentso ther than gaming.Vandalvideo

Yes. Yes I do.

http://www.networkworld.com/news/2007/051607-sonys-sales-profits-jump-but.html

They're having RECORD high sales in their other departments actually.

Sony Pictures posted a 55% increase in operating revenues for 2007.  I can't believe you think that is poor. 

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

 

Killfox

Sony Computer Entertainment America (SCEA) PR boss Dave Karraker has released a statement denying that the recent layoffs of SCEA HQ employees stemmed directly from trailing PS3 sales. Here's the statement made by Karraker to video game news website Next-Gen:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary.

[QUOTE="mikasa"][QUOTE="Killfox"]

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

Vandalvideo

Did you even read it?  It's not like he gives a real answer as to why it happened.  Just that it is due to changing markets and multiple issues.  So yes it's more than just the PS3 crappy sales, but also what caused those crappy sales.  Like people wanting real online experience. 

====

His quote:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

 In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

Look up Okkam's Razor and then decide.

Sony Pictures posted a 55% increase in operating revenues for 2007.  I can't believe you think that is poor. ramey70

[QUOTE="Vandalvideo"][QUOTE="mikasa"][QUOTE="Killfox"]

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

mikasa

Did you even read it?  It's not like he gives a real answer as to why it happened.  Just that it is due to changing markets and multiple issues.  So yes it's more than just the PS3 crappy sales, but also what caused those crappy sales.  Like people wanting real online experience. 

====

His quote:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

 In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

Look up Okkam's Razor and then decide.

[QUOTE="mikasa"][QUOTE="Killfox"]

Here ill just end the thread now. http://ps3.qj.net/Dave-Karraker-Layoffs-not-due-to-PS3-sales/pg/49/aid/94450

Vandalvideo

Did you even read it?  It's not like he gives a real answer as to why it happened.  Just that it is due to changing markets and multiple issues.  So yes it's more than just the PS3 crappy sales, but also what caused those crappy sales.  Like people wanting real online experience. 

====

His quote:

This move is not wholly related to any one product in our portfolio. More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services.

 In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

Vandal were would I be without you??? Kids these days.

SCEA spokesman David Karraker said that the staff 'alignment' is to aid in the companies restructuring and allow it to maintain its position in the market.

jedigemini

They actually -want- to be in last place??!!! :o

Well, it at least explains alot of their decisions.... Mark my words, they're doing this to make a comeback with PS4, so they appear stronger than ever before!