While millions of gamers around the globe are eagerly salivating over what will be announced for their PS3 or Vita consoles at the E3 show this year, Sony have other things to worry about than simply wowing their current and (likely, more important for them) new customer base.
On the eve of Sony’s much-anticipated Playstation press conference at the E3 2012 show, comes news surprising as it is devastating: Sony’s stock fall below 1,000 Yen (or around $12.79 at the moment with the current exchange values). Not since 1984, while trading in Japan on Monday have Sony’s stocks been so bleak.
For with a mind for investments, or just want to know more about the overall financial situation, Reuters have a large article covering it.
This year has been a bad one, with a river of bad news that seems to be showing no sign of diminishing at any time in the near future. In February of this year (2012) its credit and debt ratings were downgraded, snapping at the heels of massive quarterly losses. This sparked Sony to outline plans for the future of the company, while simultaneously making a rather staggering 10,000 people jobless. New York Times then followed on with a scathing article on Sony, declaring it was “in the fight of its life“. They also mention Sony fell behind the “tech parade”. With Yoshiaki Sakito, a former Sony executive saying “it’s almost game over at Sony”.
So what on earth is to blame for this? One of the main problems is Sony’s flagging portable music sales (thanks to Apple’s Ipod) and its TV’s are no longer as popular as they once were (thanks to companies such as LG and Samsung rising in popularity). Check out the New York Times article for more on this.
Also, while it wasn’t too long ago that Sony’s Pkaystation brand was considered to be a veritable money tree, this has started to change. The Playstation Vita (the PSP’s successor) hasn’t been the success Sony has hoped for, with its less than stellar sales calling into question how to measure the handhelds success.
Sony have also shuttered two of its 15 fully owned development studios in 2012. A rather historic and unprecedented move, considering Sony had ever shuttered one of its development studios in the years prior since the Playstation 1 first went on sale in Japan, way back in the mists of 1994.
Which two studios were unlucky enough to face the chopping block? BigBig Studios (a UK based studio, responsible for Little Deviants on the PS Vita) was axed in January, 2012. Following quickly after, Zipper Interactive, best known for their well known SOCOM franchise were also closed.
So, a lot of Sony’s fortunes in the gaming industry seem to be resting on E3 2012. What will happen? Stay tuned to RedGamingTech and we’ll be sure to let you guys know!