Sony's Gaming Division to Cut U.S. Jobs

By Tim Conneally | Published June 8, 2007, 1:17 PM

Rumors of Sony Computer Entertainment's plans to cut U.S. jobs were substantiated on Thursday with the announcement of its plans to restructure in the face of last year's operating losses.

The size of the cutback is not yet known, however the recent streamlining of its European gaming unit saw the loss of 8 percent of the workforce there. If a comparable cut is made stateside, it could mean roughly 120 employees would be let go.

A similar restructuring was also mentioned for its Japanese division, though no plans have been finalized yet.

The sales figures of the PS3 have been well reported, and Japanese magazine publisher Enterbrain showed that Nintendo's Wii has been outselling Sony's console by a four to one ratio. But Sony seems to be struggling not with the other companies in the video game market, rather against the price tag of its own console.

Despite the struggles of the gaming division, May saw Sony's shares reach their highest price in five years.

Comments

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$600 for the system is expensive, however, what worst is there isn't much PS3 games. My friend own one, and he is using it to plays his PS2. If Sony wants the PS3 to sell, releases more cool games. Please include the fun factor in there not just heavy graphics.

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Steve,

Your dedication to Sony while getting nothing in return is hilarious. The fact that you and Dave both dont even own a PS3 is the funniest part about your pathetic ruse.

When are you going to figure out that nobody likes you?

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Guys, It's time to bury the hatchet. After all these months of Sony Memory Sticks being shoved up our ass, we have decided to pitch all of our earnings together and buy a 360.

And you know what? How the hell did we become so blind? Man, we sure do feel like the donkey's patoot. The 360 is much better than we had thought. Such little credit given to this AMAZING system. Granted, the PS3, as we are sure, is also an amazing system. Hmm, if we only had a little bit more funds we could have gotten a PS3 instead. I mean, damn... Why did we defend it so vigorously when we have never even touched one... Oh well, what's done is done, so we ask for forgiveness for our ignorance.

Bonded Together in Unity Forever,
Steve Austin, DaveBG, Mark Gillespie.
Laterz

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Lol ^^^^.

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Guys, our brand new 360 is not working correctly, I have only had it 1 day, and it's now showing 3 red lights when I switch it on, plus it's put big scratches in all my games...

It also sounds like a jet taking off in my living room..

Is this normal for a 360?

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In the rare case of having a failure you can call up MS and they will gladly fix it for you.

"It also sounds like a jet taking off in my living room."
Mine doesn't sound loud to me. Can't even hear it while I am playing my great games that are far better than the PS3's. Then when I watch movies the fan slows down significantly making it quiet while I watch my movies as well.

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siryak: "In the rare case of having a failure..."

You really are deluded aren't you....

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Nope. I just think in more of reality terms instead of the misconstrued numbers the Sony fanboys would like you to believe.

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I don't know if my PS3 is working or not since there is nothing to justify turning it on.

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Ouch! lol

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Forget the Sony fanboys.. Just take the internet. It is so much easier for people to complain today, that they are more likely to do so. So it in turn makes it seem like there are far more problems. I think it comes down to 2 things.

1) Problems are somewhat higher than the norm, although I think they have improved greatly.

2) Repairs are a big problem. Many people complain about going through 3,4 or more consoles. Well people forget that doesn't mean 4 individual consoles have failed - (i.e. they didn't go and have 4 break right out of the box). The had their's break, sent it in and the repaired unit failed.

So I believe it is a combination of a slightly more than normal rate of failure and a poor repair process.

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Steve, you never cease to amaze me. A sony story somehow gets turned into Microsoft bashing.

Just buy a 360 and shut the hell up you cheap ****.

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No surprise here. I said from the beginning $600 was too much for a console and I am being proven right again and again everyday.

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Then surely the Xbox is also overpriced, as the Xbox division is losing MUCH more money than SCEA, and has laid of many more people...

Have a look on MicrosoftWatch, it's well documented. The only difference, is of course, it's Microsoft, so that new passes the radar, when it's Sony however, it's headline news...

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go fuk yourself, how about that you fuking a******?? JUST GO FUK YOURSELF YOU BRITISH B!TCH, YOU PEOPLE CAUSED ENOUGH TROUBLES IN THE PAST SO LEAVE US ALONE MOTHERFUKER, FUK YOU YOU FUKING SONY FAN, JUST GO TO DRINK YOUR TEA AND THEN FUK YOURSELF, HOW ABOUT THAT FUKING @SSHOLE

WHO THE FUK YOU THINK YOU ARE?

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"and has laid of many more people..."

Really? How do you figure? Where did you get that info from?

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Wow...you'd of thought steve murdered your parents or something, with the level of hatred in your words...

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He pulled it out of his a** as usual.

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Same ole story. Wah wah all the news places hate Sony wah wah. Also you have no proof that the Xbox division has laid off more people.

"Then surely the Xbox is also overpriced"
Lets see the PS3 cost way more than the Xbox so...Also the 360 is very likely getting a price cut soon. That will probably spell game over for $ony.

http://www.gamesindustry...tent_page.php?aid=25625
"We are well aware that the sweet spot of the market is really 199 bucks," said Hufford, speaking to Bloomberg.

According to Institutional Investor's analyst Heather Bellini, Microsoft could lower the price of the Xbox 360 as soon as September.

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You need to chill.

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Seriousily Carl, its ok to have an opinion but by god man switch to decaf, who killed your puppy or ate the last scoop of ice cream? There is absolutely no reason to be this mad on a forum unless of course steve dave other guy killed said puppy.

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Who cares about staff, profit matters!

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WOW, now that was inspiring. Why don't you grow up a little, wait grow up a lot.

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Which puts the PS3 in dead last lol.

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Wow, congratulations Steve Austin, you win the Trolling Award of the Year for this one. I don't know where you got the idea that Microsoft's gaming division laid off more people than Sony will. Anyway, we all know the Xbox360 was a bit overpriced, no surprise there. They were really pushing the price limit, that's why the Xbox360 is only doing "fairly well" in my book. Now if you look at the PS3's price, it's $200 more and that is why the PS3 is doing "horrible" at the moment. It's hard to justify spending $400 (Xbox360) on a gaming machine and it's almost impossible to justify spending $600 (PS3) for one.

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ha ha ha ha ha lmao, you guys make me laugh.... nah i just hate people who are so devoted to a company and change names aka i hate fake people like that guy

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"Have a look on MicrosoftWatch, it's well documented."

Well, I decided to go on that site and see for myself. You're quite the professional liar, aren't you? Using unrelated news in an attempt to make a desperate point... sad...

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Typical Xbox owner. Nuff said, I think it's time for school...

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I would say you are the liar.... I assume you think nobody will bother checking..

http://www.microsoft-wat...mit.x=2&submit.y=18

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"in U.S. Sales" ROFL Steve. Ofcourse a company as large is MS is going to have layoffs. They are taklking about the "gaming unit" above not "U.S. Sales." Typical Sony fangirl trying to twist reality to make a point. Then the 2nd article listed was way back in 2004. Not to mention that the first one was over a year ago as well. Your argument stinks of desperation Steve.

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Not to mention, that's like .03% of their total employees. Wow.. what a HUGE layoff! LOL. (oh.. and its old too and not related to gaming)...

Maybe we should dig up some articles about how the PS3 was delayed - They'd be just as relevant ;)

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