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Sony Chops Jobs

by Tim Stevens on June 7, 2007 at 09:28 AM

Sony Chops JobsWhile the PS3 can't be ruled a total flop yet, it's certainly experiencing a spanking at retail, being outsold 4:1 by the Wii and 2:1 by the Xbox 360 in the U.S. market. Things are even worse in Japan, where gamers are buying five Wii consoles for every PS3 sold. Paltry sales have led to a massive $1.91 billion loss for the year in Sony's games division, which spells doomsday for employees. Sony has now announced that between 80 and 100 U.S. workers will be receiving pink slips, while 160 European employees will get the ax. For now, Sony has said that no Japanese workers are in danger of losing their jobs.

This is a clear indicator that Sony is hurting and that the $500 to $600 price point for the PS3 was just as poorly received as everyone (except Sony) knew it would be. Rumors of a price cut have been buzzing since before the console even hit store shelves and are getting stronger now. But, with Sony still estimated to be losing up to $200 on every PS3 sold, can the company even afford to lower the price?

From AOL Money & Finance and Gamesindustry.biz

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Tags: 360, breaking+news, flop, games, PS3, sony, top, wii

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