As the economic downturn continues to take its toll worldwide, Sony has joined the list of manufacturers that show the gaming industry isn’t bulletproof. That corporate giant has announced plans to shave its workforce by a whopping 8,000 people. It also intends to close quite a few of its manufacturing facilities to help it save an estimated $1.1 billion at next fiscal year’s end.As Game Spot points out, the news is just the latest in a series of blows to the industry. Earlier, EA announced the reduction of 600 employees and a loss of $310 million. Other gaming and electronics industry companies have also faced the crunch, including Midway, Eidos and Samsung.
While Sony joins the conga line of companies impacted by the worldwide economic crisis, its news is particularly troublesome. When the giants suffer, you know it’s bad out there.
Although Sony’s announcement does highlight the severity of the global downturn, the entire situation can end up being good news for the industry. As more consumers tighten their wallets and demand quality over quantity, it could force those who want to survive to be even more creative and offer more bang for the buck.
While Sony is crying over sales, Microsoft is cheering its three-to-one sales victory over the PS3 on Black Friday. This, in my opinion, is largely due to the value the $199 Xbox 360 now offers gamers. The Wii also still seems to be more than holding its own.
It seems that sales, although down, are still coming. Consumers are demanding value for their money and they are turning to the products that deliver. The end result could be very troubling times for the industry as a whole, but it might just emerge leaner, meaner and even more intriguing for gamers.
On a side note, my heart goes out to those who have lost their jobs. This is a horrible time to be out of work. The human toll of the downturn should not be discounted, and it’s my fear we are only seeing the beginning.
Related:
Video Gamers Have A 1 Up On The Economy
A Return Of Wii Holiday Shortages?
Wal-Mart Helps Gamers Beat The Economy
Labels: microsoft, nintendo wii, PlayStation 3, ps3, sony, xbox 360
