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What the Sony Reshuffling Actually Means

Newsweek's N'Gai Croal steps up this morning with some interesting analysis of the Sony re-organization that occurred late last month. Mr. Croal points out the difficulty of understanding the machinations of a notoriously tight-lipped foreign company, and attempts to look at the executive movements from the games business view. From the article: "Here's what's on SCE's plate at this very moment: three product lines that must be managed over the next five to six years (PS2, PSP and PS3); two more product lines that are almost certainly already in the planning stages (PS4 and PSP2); an online service, an online store, operating systems and system updates for each of the post-PS2 machines; and one of the world's largest game studio operations. Given that workload, Sony desperately needed to free Ken up to do the vision thing, and groom the next generation to run SCE on a day-to-day basis, much like Microsoft did when Bill Gates ceded operational control of Microsoft to Steve Ballmer. So while we have absolutely no visibility into whether this evolution was initiated by Kutaragi or by Stringer, it strikes us as precisely the right move to help ensure the future health of the PlayStation business."

30 comments

  1. I hate forced subjects by Dance_Dance_Karnov · · Score: 5, Insightful

    "free Ken up to do the vision thing"

    translation: Stay out of the way and shut the hell up, crazy man.

    1. Re:I hate forced subjects by ageitgey · · Score: 2, Insightful

      If it's a manpower issue, they could always hire this guy who looks like he is well qualified for that, skill wise.

      --
      Uninnovate - Only the finest in engineering.
    2. Re:I hate forced subjects by ProppaT · · Score: 2, Interesting

      I'm glad you got modded insightful instead of funny. It's the blatent truth of the issue. Ken is a crazy, crazy man with little to no business since. Sony is running off the steam of their name at this point. Hopefully the up in commers in the corporation will have a little more sense or there's going to be little cash to run off of in the future. As it sits now, SCE is the company's only real profit (other divisions are taking losses).

      Frankly, after my run of faulty Sony products (tally of broken sony equipment: 1 psx, 2 ps2's, 2 discmen, 1 dvd player), they lost a potential PS3 customer until they prove to me that the hardware is solid or the price drops substantially. I know I'm not the only person who feels burnt by their QA either. Despite all the other craziness going on in the company, the first real step would be stepping their hardware quality up to what it used to be in Sony's glory days.

      --
      Wise men say, "Forgiveness is divine, but never pay full price for late pizza."
    3. Re:I hate forced subjects by Anonymous Coward · · Score: 1, Informative

      "Ken is a crazy, crazy man with little to no business [sense]."

      "As it sits now, SCE is the company's only real profit (other divisions are taking losses)"

      for a crazy man with no vision and no business sense, you have to credit him with steering the boat that upset the mighty nintendo. created the first console to ever sell 100 million units and followed it up with a second console that sold even more. it took vision to convince sony to enter the games business. it took business sense to secure key titles and third party collaborations.

      does he still have it? who knows? but you have to give credit to the man that is responsible for almost keeping sony afloat off of his own vision.

    4. Re:I hate forced subjects by thatguywhoiam · · Score: 1
      Frankly, after my run of faulty Sony products (tally of broken sony equipment: 1 psx, 2 ps2's, 2 discmen, 1 dvd player)

      So you're the one who bought the PSX! Neat!

      they lost a potential PS3 customer until they prove to me that the hardware is solid

      Just out of curiosity, how are you ever going to find out if you've decided not to buy Sony stuff?

      --
      If Jesus wants me it knows where to find me.
    5. Re:I hate forced subjects by xantho · · Score: 2, Funny

      Especially since that guy cut his ears off and gouged out his eyes. He'll never be able to find out now. Except maybe by braille articles in Newsweek.

    6. Re:I hate forced subjects by king-manic · · Score: 1

      Under Steve Jobs:

      1 - Everyone in the music dept will now be shuffled into janitorial services. a new sony online stores opens to great success.
      2- PS4 will look fabulous, perform slightly slower then the next Xbox but will excel at 1 or 2 game genres so much we'll forgive him. It will also be $1900 and somehow we will buy it anyways.
      3- The PSP2 will suddenly be the most popular consumer product ever. It will actually be a repackaged DS but with a better shell. Analysts will be stunned.
      4- Oddly most fo slashdot will be proclaiming the Death of Steve led Sony due to insane profits and the fact they don't have 99% market share.

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
  2. Shuffling and shuffling by asb · · Score: 0, Troll

    I thought you meant the recent PS3 firmware update. I'm still wondering what the heck it means.

    --
    Antti S. Brax - Old school - http://www.iki.fi/asb/
  3. From TFA by tttonyyy · · Score: 3, Funny

    In the days that followed, much of the speculation and analysis was misleading, inaccurate or just plain outlandish. Sounds just like the speculation that used to exist over the hardware in the console.

    Summary of TFA: We don't really know what's going on, but we've got a few clues so we'll wildly extrapolate forward from those.

    In other news, no tea in the vending machine this morning - this probably means that Asia is now underwater and establishing a subsea uber-race.
    --
    biopowered.co.uk - catalytically cracking triglycerides for home automotive use since 2008. Just say no to big oil!
    1. Re:From TFA by antifoidulus · · Score: 1

      Is it wrong to be turned on by that last sentence?

    2. Re:From TFA by tttonyyy · · Score: 1

      Is it wrong to be turned on by that last sentence? Yes, keep your tentacle extrapolation to yourself. ;)
      --
      biopowered.co.uk - catalytically cracking triglycerides for home automotive use since 2008. Just say no to big oil!
  4. It's... by CaseM · · Score: 0, Offtopic

    "Rrrrrrrrrreeeeeeeeeeeestructrinnnnnnng. C'mon it's restructuring, people!"

    1. Re:It's... by Thraxen · · Score: 1

      It's only restructuring if the actual 'structure' changed. Say, for example, R&D and QA were two different departments, but then it was decided that R&D should be a sub-division of QA and thus the top QA execs are now in charge of R&D. Also, creating entirely new positions or departments could also be considering restructuring.

      I don't know if any of that happened here, but from what I've read it just sounds like swapped some people aroundin existing positions... thus that would be 'reshuffling'. Actually, I think 'reshuffling' works fine in either case.

    2. Re:It's... by Anonymous Coward · · Score: 0

      Apparently there is no 'u' (You) in restructuring...

  5. Nothing concrete really... by Chordonblue · · Score: 2, Insightful

    There's no meat here at all. No discussion as to how to get themselves out of the hole, or at the very least stop digging new ones. As I see it, it's the friction between the different divisions that's causing all the problems. Useless MP3 players (when they should be OWNING that market), lagging media sales (DVD and CD), bad press due to various stumblings, PS3 waiting for Blu-Ray, and more, have caused the once-mighty Sony to stumble. They've managed to alienate all but the most rabid fans with their stupid and uncoordinated moves.

    Either Sony has to REALLY reorganize and focus on what they do best, or they need to give the CEO carte blanche to make the tough choices. Toes will be stepped on, feelings will be hurt, but if they don't do this things won't be any better by this time next year (even if the PS3 is in good supply).

    --
    "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
    1. Re:Nothing concrete really... by ClamIAm · · Score: 1

      No discussion as to how to get themselves out of the hole

      What hole? Do you mean...

      They've managed to alienate all but the most rabid fans with their stupid and uncoordinated moves.

      Um, right. I think what you mean is "they've alienated all the video game and computer nerds who aren't rabid fans". The general electronics-buying person doesn't even know about the rootkit fiasco, much less understand its gravity. In fact, they generally like Sony.

    2. Re:Nothing concrete really... by Chordonblue · · Score: 1

      Even non-gamers were alerted to problems with their MP3 players, exploding batteries and rootkit-based copy protection schemes. As the technical people generally advise the non-technical it's usually not a good idea to anger that base.

      There is every indication that Sony is hurting financially from all of this, not to mention increased competition from China and Korea in their electronics department.

      --
      "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
    3. Re:Nothing concrete really... by ClamIAm · · Score: 1

      There is every indication that Sony is hurting financially from [PR problems]

      Care to cite some respected analysis that agrees with this?

    4. Re:Nothing concrete really... by Chordonblue · · Score: 1

      Not really necessary... No. :)

      --
      "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
    5. Re:Nothing concrete really... by ClamIAm · · Score: 1

      In other words, you got nuthin?

    6. Re:Nothing concrete really... by Chordonblue · · Score: 1

      I guess feelings aren't worth much these days... Yeah.. Nothin' :)

      --
      "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
  6. Big ships turn slowly by PingSpike · · Score: 3, Insightful

    Larger, more established companies tend to change slowly. They tend to be risk averse even though they're actually better equiped to weather potential failures then their smaller competitors. And in situations like this, divisions within the company can be crippled by their sister divisions. The video game division doesn't just have to compete with nintendo and microsoft, it has to compete with other divisions within sony. The video game division says they need to keep their costs down, but the other division needs to push that new expensive bluray format so that gets stuck on there for instance.

    Sony seems obsessed with trying to get the market to adopt one of their proprietary media formats. They tried just using their name to push it, and then they've started trying to piggyback on the success of some of their other products to get it adopted. Neither has had much success. It'd be a great revenue generator, but consumers don't want to pay the extra cost and competitors are right there to offer an alternative. Give it up already! They aren't helping blu-ray be adopted, they're hurting their PS3.

    1. Re:Big ships turn slowly by Anonymous Coward · · Score: 2, Insightful

      I'm an AC, so this probably isn't goint to get read, but why does everyone think BluRay is a proprietary sony format? It was created by a consortium of many different companies. Granted sony has the lions share in the Blu-Ray consortium, but it is by no means controlled exclusively by sony.

      The fact that it is created and controlled by a consortium is no different than HD-DVD or DVD or CD.

      Betamax was proprietary. It was created by sony, hardware was exclusively produced by sony. Sony had complete control over the format. It failed, for obvious reasons.

      BuRay is not like this, there is a licensing fee payed to the BluRay consortium for each disc pressed, and probably for each optical drive produced that reads the format. But this is not different than DVD, or HD-DVD. There is a licensing fee payed to the DVD consortium for each DVD produced, and same for HD-DVD. These are all "Proprietary" formats, if you find the word "licensed" is synonomous with "Proprietary". But we have been living with licensed standards for years. MPEG, DVD, CD, were all licensed formats. They are not open source or free.

      In fact, sony was a very large player in both the DVD, and CD consortiums.

      If you are going to bash a company for their behavior, I understand. But don't bash them for having interest in a new technology. If companies didn't put themselves behind new tech, no new tech would be created, because there would be no money to create it. This stuff doesn't appear in a vacuum. If you want to give your money to toshiba instead of sony, thats your perrogative, but just understand that toshiba's HD-DVD is just as proprietary as sony's blu-ray. They are just backed by different companies.

      But perhaps we should boycott toshiba too.. I mean, they partnered with sony and IBM to create the cell prosessor. Any anyone who is in cahoots with sony, has got to be evil by association.

      Right?

      As for bluray hurting the PS3. I'm sure sony made that decision mostly on disc capacity. High def games, using high def textures, and streaming geometry with small load times mean lots of storage space. Even storage space for redundant game data to allow faster loading and streaming. All this talk that video games don't need more than 8 gigs is just plain crazy and shortsighted imo. I am a game developer, and I am working on a cross platform nextgen title for ps3 and xbox360. and storage constraints are a BIG problem on the 360, we have to design our game around the limitation of 8 gigs of storage, where the sony console would not have those same limitations.

    2. Re:Big ships turn slowly by djupedal · · Score: 3, Informative

      Time out...

      "It was created by a consortium of many different companies"

      Incorrect, sorry - Blu-ray technology was 'created' in Sony labs, by Sony engineers, using Sony R&D budget monies and the Japanese 'Bullet Train Development Concept', that says why make the next leap a measly 10% over the existing level, just to keep you in the game, when a 200% jump means a whole new game... with the field, ball, rules, cheerleaders, refs, players AND winning trophy firmly in your grasp, since there are no competitors even in the same league.

      After which, Sony called a campfire meeting of friends, and then the BD consortium was formed. Roughly 170 companies have lined up to date, or so they say.

    3. Re:Big ships turn slowly by thatguywhoiam · · Score: 3, Insightful
      Sony seems obsessed with trying to get the market to adopt one of their proprietary media formats.

      Even just 3 years ago, I would have agreed vigorously. Now I'm not so sure.

      As you mentioned above, these big corps steer like a Buick. Changes take a long time to trickle down. But somewhere between the death of MiniDisc and the PSP, Sony has changed tack.

      They no longer sell ATRAC3, their proprietary audio codec. New devices only support this for legacy reasons The PSP, while locked down as far as executable code goes, does support standard things like JPG / PNG / MPEG-2 / MPEG-4. Even the Sony Ericsson phones only play MP3/AAC. Nothing DRM'd.

      And now we see that the PS3 has multiple card readers (not just MemoryStick) a Linux bootloader provided and supported by Sony, a standard HDD that is removable without voiding the warranty, and a regular power plug (they used to rape you for those 'special' plugs, remember that?) Say what you will, but these things were basically unthinkable for Sony a few years ago.

      I don't know exactly where they are going with this but these are certainly encouraging signs.

      --
      If Jesus wants me it knows where to find me.
  7. Rush reminiscing by testudorex · · Score: 1

    Remember when Rush Limbaugh revealed how he was finally free of his burden to "hold other people's water" that "didn't deserve it?"
    I bet a lot of Sony sympathizers are feeling the same thing now that Kenny is no longer making retarded remarks about the PlayStation brand.

    --
    "NASA's Rollercoaster For Moon Rocket Escape"
    Xonk?
  8. Hoo boy... by nsmike · · Score: 1

    Getting dizzy from that spin...

  9. All Stringer's fault by gamer4Life · · Score: 1

    Many missteps made by Sony in recent years can be attributed to Stringer and his leadership in Sony's content business. The content side has always hindered their consumer electronics division, through adding proprietary formats, DRM, and other content-driven designs. Everything from the lack of an iPod competitor, the inclusion of Blu-ray into the PS3, to the rootkit ordeal has Stringer's hands in it. They are all an example of how the content side of Sony has taken control.

    Kutaragi, being less politically savvy than Stringer, criticized the company for Sony's policy of using proprietary technologies and implicitly criticised the company's use of DRM technologies, to his own detriment. Fact was, the content side was making money at the expense of the consumer electronics division, and that's why Sony's leadership in electronics has gone downhill.

    The past year, we have seen Stringer oversee the rootkit fiasco as well as Blu-ray in the PS3, both of which are tied to the content business. Hopefully Stringer is fired, and the rest of the content executives demoted, as well as the marketing director.

    Ken Kutaragi as a replacement would be much better than Stringer, although he would first need coaching on public relations.

  10. So professional, too by Anonymous Coward · · Score: 0

    "free Ken up to do the vision thing"

    A: "What do you do at work?"
    B: "Oh, you know, the vision thing..."

    What the hell is that? Is this really the way people talk now?