I was going to add this to the console area, then i decided not to because i felt it had to deal more with the people in the industry.
Its a real shame that people work that hard for a good product and get chopped, but i guess thats the nature of the business.
What do you guys think ?
Quote:
Burlingame, Calif. -
Sony's computer entertainment unit, responsible for the company's PlayStation gaming consoles, has laid off nearly 100 of its 1,600 U.S. employees, located mostly at its U.S. headquarters in Foster City, Calif.
The move wasn't unexpected. In April 2007, Sony's (nyse: SNE - news - people ) European division of the same unit announced plans for a similar slim-down of about 150 employees.
Sony said the cuts were part of an ongoing restructuring. But the company's downsizing efforts occur as the PlayStation 3, its $600 gaming console launched in November 2006, struggles in the market. April 2007 sales data from the NPD group show that the PS3 trails Nintendo's (other-otc: NTDOY - news - people ) Wii and Microsoft's (nasdaq: MSFT - news - people ) Xbox 360 with only 82,000 units. In Japan, the Wii outsold the PS3 by 5-to-1 in May, according to Japanese gaming publisher Enterbrain.
A Sony representative says the PS3's performance isn't to blame for the layoffs. "This move is not wholly related to any one product in our portfolio," says Sony corporate communications director Dave Karraker.
Sony's computer entertainment unit posted a $2 billion loss on sales of $8.6 billion during the company's 2006 fiscal year.
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Sony Cuts Back Game Unit
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