SCEA Lays Off 100 Employees
In an effort to streamline operations and cut costs for the financially hemorrhaging company, Sony Computer Entertainment of America laid off from 80 to 100 employees today. Kotaku reported today that they received the news from a former staff member.
"In an effort to accurately align the company to meet the changing needs of our consumers and of our industry, Sony Computer Entertainment America has found it necessary to analyze our current business and to restructure the company as necessary to continue our standing as the market leader," SCEA spokesman Dave Karraker told Kotaku this evening, when contacted for comment. "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. "
Meetings began at the start of the work day where departments where separated into two groups, those who still had a job, and those who were about to be fired, each attending separate meetings to explain their current employment status. Those who were laid off were given a severance package and asked if they would like to have a manager pack up their things, or schedule an appointment in the evening to gather their things.
Sony is in quite a pickle right now. Recently Sony Computer Entertainment of Europe when through a similar downsizing/firing session. The PS3 has cost the company billions of dollars and is still not selling well. Look at the numbers in Japan. The land of former Sony fanatics are jumping on the Nintendo bandwagon, where the Wii is selling like hotcakes.
It’s obvious that Sony is taking drastic measures to rethink their gaming strategy. Their business decisions have afflicted many of their own workers who are now out of a job. An inevitable price cut for the PS3 seems like it will be the only way for the PS3 to stay competitive in the market. A cut would push more systems, which will sell more software and allow their gaming division to stay afloat. They have already cut the price of their entry level Blu-Ray players by $100, so I feel that a cut for the PS3 is right around the corner.
Lay-Offs Hit SCEA HQ Today [Kotaku]
Toots
Posted to Miscellany on 6 June 2007
· Comments (2)
Other stuff like this: layoffs, price cut, ps3, scea
At the $100 price cut, Sony is still making money (not that much mind you) on every player
They're still losing between $200 and $250 on PS3 until the move to 65nm and the board reduction coming later this year. They know they have to cut the price, but they also can't afford to lose more $$ per system
^^^ What WickyWoo said.