Sony PS3 layoffs
No matter how hard Sony tries to explain the recent layoffs, it is quite clear that the real reason is due to the below average sales of its PS3 gaming system. With about a 100 people losing jobs in the US in its PS3 division, it is now official that the PS3 has been one of Sony’s biggest flops in recent times.
Sony’s explanation for the recent round of layoffs is that they are restructuring taking place in the company. With about $1.9 billion operating loss last year, this is a move that was anticipated as the PS3 contributed a big margin towards the loss. Unlike Microsoft’s Xbox 360 or Nintendo’s Wii, the PS3 has seen slow sales on top of which Sony actually makes a loss on each PS3 unit it sells.
A lot of feedback for Sony is to reduce the price of the PS3 to compete more evenly with the Xbox 360. With more units in people’s homes, Sony can then make a profit on games and media sales through its online service which it provides for free. Sony also needs to accept that they made a major mistake by packing the PS3 with technology so advanced that the general public just isn’t ready for, yet.