UK newspaper The Times reports today that radical corporate upheaval is coming to Sony.
Long-overdue cost-cutting moves will, according to company sources, result in "sacred cow-slaying measures" that will "will abolish or fundamentally alter many of Sony’s long-established business practices."
The reorganization will likely be made public following CES in Las Vegas. The massive trade show ends on January 11th.
Could the PlayStation hardware business get the chop?
That’s hard to say, but the PS3 has been bleeding money since it launched in November, 2006 and the PSP is struggling as well. One ominous sign: there is talk of a shift that would turn Sony from a manufacturing to a content-driven business model.
PS3 manufacturing costs have generated huge losses for Sony over the past two years. Content would include games, of course, but Sony also has a stake in movies and music. If the company judges its console business as too costly to continue, it could decide to pursue a system-agnostic approach like the one adopted by Sega after it abandoned the Dreamcast in 2001. Ironically, back then it was Sony’s PlayStation 2 which steamrolled the well-regared Sega console.
Alternately, the PlayStation business might be salvaged in whole or in part and manufacturing cuts could be made on the consumer electronics side of Sony’s house.
In any case, we should know more next week. In the meantime, PlayStation 3 fanboys may suffer a few sleepless nights as they worry about the future of their system.