Sony's luck seems to be spiraling down the drain.
Recently, several major tech publications reported that the PS3 has major technical flaws. It seems that durring the Tokyo Game Show the PS3's that were available to play had to be repeatedly reset due to lockups & crashes. Sony blamed this on the heat of the show, however one writer noted the enclosures for the PS3's was cooled & no other hardware manufacturers seemed to have similar issues.
This occurs only about 30 days before the consoles launch. One writer reported that one Sony PS3 Rep at the show hinted the Console Launch may be delayed passed the new year due to technical issues.
Add to these major woes:
- SWG's continued bad press, and SOE's drop to the 3rd largest MMO maker, even though it offers almost over double the games as the #2 (NC Soft).
- A resulting stock drop of about 3% due to PS3 issues.
- 278 million dollar profit last year erased (and then some) by 270 million dollars of Taxes owed, 7 million batteries recalled (estimated at 180 mil+, plus litigation) & an estimated loss of about 70 million dollars annually due to the SWG NGE.
- The slow sales & high costs of the launch of Blue-Ray, and the comparitive success of HD DVD over it so far.
- Sony said last month it was delaying the Japanese release of its new digital Walkman by a week because of a malfunction of an unspecified part. Rumors are flying around that it's a bigger issue than that.
- Huge drops in Sony Flat Pannel / Plasma sales this year, due to competitive pricing in a diverse market.
- A total share drop of about 25% over the last 6 months, with SWG being listed by some analysts as a loss-leader concern.
- EDIT: This morning, it was annouced that another 1.2 million battieries will be recalled by another 3 manufacturers. Sony is also facing pressure to recall all betteries of that type, even if laptop makers do not.
The Question: What, if anything, will this mean to SWG? Will pressure be put on Smed to improve profits, and if so, would they consider / push for classic servers?
I'll start my own SWG... with Black Jack... and Hookers!!!
In fact, forget the SWG!!!!
Comments
They will just continue to suck every penny they can out of the game.
Beyond that, I doubt it will mean much.
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SOE is one of 5 divisions, accounts for about 10% of total sales, and is the most profitable division. They are not a small problem.
Over the last year SOE has slipped from 2nd to 3rd, and over the last 3 years, 1st to 3rd. Blizzard makes over 800 million a year in sales, and over 700 million in profits. SOE could add a minimum of an additional 50 mil in profit with classic servers.
I'll start my own SWG... with Black Jack... and Hookers!!!
In fact, forget the SWG!!!!
Proud Master CH -
Sorry,
Proud FORMER Master CH...
my toon was untimely converted into something more Star Warsy
Proud Master CH -
Sorry,
Proud FORMER Master CH...
my toon was untimely converted into something more Star Warsy
in the 80's and 90's i wouldnt buy electronics from any company but Sony.
but im a launch veteran of SWG, so i dont need to explain here why SONY products are no longer allowed in my home. period.
SWG ADDICT...clean since the NGE
Just another bad sign for Sony. That, and when you look how many "exclusive PS" games are now heading to Xbox2 as well... I think they really bit off more than they can chew.
Shayde - SWG (dead)
Proud member of the Cabal.
It sounds great, so great in fact, I pitty those who canceled - Some deluded SWG fanboi who pities me.
I don't like it when you say things. - A Vanguard fan who does too.
09f911029d74e35bd84156c5635688c0
$ony's woes will mean little to $OE and SWG, aside from the fact that the people in charge of both aren't as aware of reality as they should be.
$OE is an independent subsidiary company and has it's own revenue stream, and with games like EQ and others doing fairly well (and let's not forget that SWG is still probably making a profit - not much of one, but it's in the black) hence they are insulated to a significant degree from the financial woes plaguing $ony ATM.
$ony is doing on thing well of late - they are getting very, very good at shooting themselves in the foot. It even appears they are using large caliber rounds to do it with, too.
SWG Veteran and Refugee, Intrepid server
NGE free as of Nov. 22, 2005
Now Playing: World of Warcrack
Forum Terrorist
Which causes SOE to cut support, cut developers, etc. SWG is a fine example of this. Even if, for sake of argument, the NGE was the "correct" thing to do, SOE's not giving it enough resources to get done in a timely manner doomed it to fail anyway.
Blizzard could buy them with the change from their couch.
Shayde - SWG (dead)
Proud member of the Cabal.
It sounds great, so great in fact, I pitty those who canceled - Some deluded SWG fanboi who pities me.
I don't like it when you say things. - A Vanguard fan who does too.
09f911029d74e35bd84156c5635688c0
If SWG is in that deal and immediate precu servers are made available ( and some Csr , MOD and GM errors are corrected .) and the DC universe project would be a sweet deal for Bioware or anyone else (/callingotherfriendswith$).
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Seed is no more
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I Rest my case :P
For every minute you are angry , you lose 60 seconds of happiness."-Emerson
In the grand scheme of things, SOE is a very *small* cog in the machine that is Sony. Think about it...Sony is, but not limited to, involved in movies/television shows, music, electronics (home audio/video, alarm clocks, telephones, mobile phones, car audio, consoles, computers (and all peripherals, laptops, desktops, etc)
games, cameras...The list goes on and on...
SOE is *part* of Sony, but is viewed internally as an independant entity. If / when SOE stops being profitable, then you'll start seeing shakeups at the top, then work its way down. Most likely, you'd see Smedley removed, and someone else take his place before any games are shutdown.
SW:G is still making money, even at 50,000 subs, they are looking at 750,000 in revenue per month, not counting residuals from Station Pass. Lets say they have 25 devs working on SW:G (from TH to Helios, and all in between) making an average of 50,000 per year, or 4,166 per month. You're looking at just over 100K per month in salary, leaving about 650K to pay other expenses (Lucas Arts, for example). Expenses for utitlities (building rent if they don't own, utilities) are *NOT* considered part of the SOE SW:G cost structure, since it is shared by SOE EQ/EQ2, and other parts of SOE Austin.
Hell, if they just had 25,000 subs, the game would still be making money. Barely, but it would still at least break even.
As Nelson from The Simpsons would say - "HAAA HAAA"
It cheers me up to see $ony in trouble. Maybe this is Karma finally catching up with them due to $OE's mis-treatment of loyal customers. I hope so. Only a rollback and a full apology will appease karma.
I'll start my own SWG... with Black Jack... and Hookers!!!
In fact, forget the SWG!!!!
Bioware couldn't come close to affording them, and not many would want to enherit the problems even if the could. If anything, they would sell off titles and fold SOE, but it won't happen. There too much pure profit in SOE....
The only company that could offer enough cash would be Microsoft, and they don't like taking on others problems.
I'll start my own SWG... with Black Jack... and Hookers!!!
In fact, forget the SWG!!!!
Blizzard could buy them with the change from their couch.
what does soe have you'd want to buy?
Developers of talent? Have you seen Helios body of work?
Game Engine? They just licensed an engine they dont have one worth stealing
IP? Sorry but WoW > EQ. SWG is dealing with LA and a license so ah no. Other titles?
Management? ROTFLMAO at the thought.
As far as buying a developer why would anyone target soe?