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View Full Version : Massive lay offs at SCEA


ENU291
06-06-07, 08:21 AM
It seems that the quarterly losses to Sony's gaming division is having a rippling effect on the business. After SCEE laid off about 160 employees in April SCEA followed suit with as many as 100 employees being let go this month. Is this a sign of things to come or is this just the beginning of Sony's recovery plan? Discuss...

Source: SCEA Layoffs (http://www.dailytech.com/SCEA+Layoffs+Hit+80+to+100+Employees/article7575.htm)

|MaguS|
06-06-07, 08:30 AM
Recovery plan in my opinion. Sony lost alot of money and im sure they have alot of people working there that were mainly there for the launch of the PS3 and during its R&D.

Namrok
06-06-07, 08:36 AM
Didn't Howard Stringer cut a lot of the fat when he took over as CEO as well? I thought Sony had been slimming down ever since then.

|MaguS|
06-06-07, 08:59 AM
Didn't Howard Stringer cut a lot of the fat when he took over as CEO as well? I thought Sony had been slimming down ever since then.

Yeah, They combined alot of studio and let go alot of redunant positions when he came on board. I don't think these has to do with that but more of a post launch fat trimming. Sonys R&D before the Ps3 was nuts...

Lyme
06-06-07, 01:45 PM
There are more cuts yet to come, the ps3 is still a long way from breaking even or being profitable. Given that Sony's games division due to the ps3 nearly wiped out all the record profits from other divisions, expect a lot more cuts of underperforming units in the next while. While most of us understand how game consoles take a lot of pre-investment before the return shows, most investors are unwilling to wait.

|MaguS|
06-06-07, 01:49 PM
There are more cuts yet to come, the ps3 is still a long way from breaking even or being profitable. Given that Sony's games division due to the ps3 nearly wiped out all the record profits from other divisions, expect a lot more cuts of underperforming units in the next while. While most of us understand how game consoles take a lot of pre-investment before the return shows, most investors are unwilling to wait.

The same thing happened when the PS2 launch this isn't new. This is just the largest hit sony has recieved since it entered the game industry. The PS2 wasn't breaking even till its 4 year.

Lyme
06-06-07, 04:01 PM
I belive that the time Sony mostly had japanise investors, now they are heavily invested in by Americans. As with all things, time will tell. In the grand scheme of things, 100 employees doesn't amount to jack. IBM laid off more employees in the last year than that by 30x.

SeriTonin
06-06-07, 04:13 PM
I know the supporters will say Sony is still gonna end up number one, and the haters will claim this is another nail in their coffin...personally, even if they end up successful, I have to say, this is a whole lot of touch and go fiancial worry in the long run that just doesn't seem worth it.

Then again, I don't remember reading such worrysome news when ps1/ps2 hit, maybe that says something.

I hate to say sony is dead in the water, but I really get the feeling they've become the Nintendo of 1996.

|MaguS|
06-06-07, 04:33 PM
I belive that the time Sony mostly had japanise investors, now they are heavily invested in by Americans. As with all things, time will tell. In the grand scheme of things, 100 employees doesn't amount to jack. IBM laid off more employees in the last year than that by 30x.

Actually Sony is still very much Japanese invested. The banks that they get their loans are all based in Japan aswell as they have a good standing in the Japanese Stock Market.

SeriTonin, You keep telling yourself that. Sony is not nearly doing as bad as Nintendo was back in 1996. The PS3 still has a large 3rd party support which is more then what can be said for Nintendo during their previous two consoles.

kevJ420
06-06-07, 05:03 PM
I know the supporters will say Sony is still gonna end up number one, and the haters will claim this is another nail in their coffin...personally, even if they end up successful, I have to say, this is a whole lot of touch and go fiancial worry in the long run that just doesn't seem worth it.

Then again, I don't remember reading such worrysome news when ps1/ps2 hit, maybe that says something.

I hate to say sony is dead in the water, but I really get the feeling they've become the Nintendo of 1996.

i don't know about all that now. nintendo lost square in 96, had two launch titles both by miyamoto, most 3rd party games were by midway, they're biggest game of 96 was worse looking (tech, not art) game than sony's big game of 96, and that same game had inferior audio to sega's biggest game of 96, sega had far more support than nintendo did.

meanwhile the sony of 2007 retains some square exclusitivity, there aren't any 3rd parties that say they definitely won't or not in the near future develop for them, they're 3rd party games aren't $80.

Nintendo of 2008 and beyond is going to be like nintendo of 96.

|MaguS|
06-06-07, 05:59 PM
BTW All you Doom and Gloom people... whats better, firing 100 poeple or having 90% of your staff call it quits?

90% of Nintendos Marketing and Sales walk out. (http://kotaku.com/gaming/rumor/noa-exodus-266629.php)

kevJ420
06-06-07, 06:47 PM
firing 100 people.

nobody could put it any other way.

sega's management called it quits in 96 when nakayama wouldn't let Tom Kalinske continue to do what he thought was best.

Had Kalinske been able to make decisions Sega would might be in the hardware business today.

Sega had the coolest managment and executives of any company, ever before their management changed in 96.

SCEA's management got fired after the PS had been out for about a year.

They had dickheads that wouldn't allow 16 bit franchises to be on the ps1, so after a year scei fired those anti-gunner's heaven (not a 16-bit franchise, but it was 2D) dickheads, and Victor Ireland probably hates Bernie Stolar to this day, and I really don't blame Victor Ireland if he does.

meanwhile, sega was losing in the U.S. even though their managers treated their 3rd parties with perfect respect.

Unlike a certain dickhead hw maker today that i hope goes out of business soon.

ENU291
06-06-07, 07:33 PM
BTW All you Doom and Gloom people... whats better, firing 100 poeple or having 90% of your staff call it quits?

90% of Nintendos Marketing and Sales walk out. (http://kotaku.com/gaming/rumor/noa-exodus-266629.php)
Laying off 100 employees because of financial difficulties is completely different then employees leaving a company because they don't want to uproot their family and relocate to another state.

superklye
06-06-07, 07:36 PM
Laying off 100 employees because of financial difficulties is completely different then employees leaving a company because they don't want to uproot their family and relocate to another state.
And people in marketing and sales have no souls anyway so they don't even count.

:p

Sabadin
06-07-07, 01:12 AM
Shame that wasn't Sony as well, they might be better off having 90% of their marketing walk out lol.

Lyme
06-07-07, 12:12 PM
ENU, 100 employees getting canned is not massive for a company the size of Sony.

|MaguS|
06-07-07, 12:26 PM
ENU, 100 employees getting canned is not massive for a company the size of Sony.

Hell EA lets 50-75 people go every 6 months... but they also rehire around the same amount acouple months later. EA (atleast Tiburon) doesn't have Permanent Testers, they have Seasonal testers. Basically they get hired for testing a specific game and once it goes out they get let go with few moving to new projects.

ENU291
06-07-07, 01:22 PM
ENU, 100 employees getting canned is not massive for a company the size of Sony.
True... I just grabbed the header off another site. In a global scope if you combine first the marketing group, the UK group and now the US group the total amount of personal laid off because of lack luster PS3 sales is somewhat significant.

Lyme
06-07-07, 04:44 PM
Sensationalism sells, no doubt there.