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Sony set to cut productions costs across the board

3 April 2008 15:00 by Andre "DVDBack23" Yoskowitz | 15 comments

Sony has reported that it intends to continue cutting production costs across the board on its goods as well as fulfill "more orders in an attempt to offset the reductions in export profits caused by the strengthening yen currency."

The current economy of the United States has seen the dollar lose significant ground to the yen over the past year and that fact could impact whether or not the electronics giant can offer another price cut on the PlayStation 3 gaming console in the near future. Last year, a price cut on the console spurred a sales growth beyond expectations.

"As to the situation of the US dollar's weakness in the medium to long term, we already have a strategy to deal with it," said Ryoji Chubachi, Sony president.

"We will lower our production costs as possible as we can and we will choose production sites to cope with the industry's weakness, and in the short term, we will try to accept more orders."

According to MSN Money, "for every JPY 1 gain versus the US dollar, Sony loses around JPY 6 billion (USD 58.3 million / EUR 37.5 million). In the past year the yen has moved from an exchange rate of 111 to the US dollar, to 102.5 - representing a loss of around JPY 51 billion (USD 496 million / EUR 318 million) for Sony."

Permalink to this article | Topic: Consoles

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Discuss this article!
core2kid (Senior Member) 3 April 2008 15:55
Sony's Victory on Blu-Ray already pushed their sales by a lot. Now a price drop is all they need to catch up or even beat Microsoft and possibly Nintendo. [ + quote]
iluvendo (AfterDawn Addict) 3 April 2008 15:58
After all the payoffs with BD, I guess they need to recoup a couple of Yen. If it wasn't for bad luck, I'd have no luck! "The flimsier the product,the higher the price" Ferengi 82nd rule of aquisition [ + quote]
Paladore (Junior Member) 3 April 2008 21:27
hmm,i own xbox 360 and wii, if they drop the ps3 to like 299 id buy one for sure too. [ + quote]
H0bbes (Junior Member) 4 April 2008 0:49
Methinks Sony spendeth too much money on laywers, hmmm? ;-p [ + quote]
core2kid (Senior Member) 4 April 2008 10:21
*Originally posted by H0bbes:* Methinks Sony spendeth too much money on laywers, hmmm? ;-p LMFAO!!!!! [ + quote]
georgeluv (Member) 4 April 2008 12:27
whoa... slow down there sony. yall already have spotty hardware issues on consumer goods (ps3 excluded, thank god... but remember that ps2?) and now your going to cheap out on manufacturing EVEN MORE? [ + quote]
glassd (Newbie) 4 April 2008 13:34
*Originally posted by georgeluv:* whoa... slow down there sony. yall already have spotty hardware issues on consumer goods (ps3 excluded, thank god... but remember that ps2?) and now your going to cheap out on manufacturing EVEN MORE? If they keep cutting parts and it starts failing, they can paint it white and call it a X-Box 360. [ + quote]
core2kid (Senior Member) 4 April 2008 14:00
*Originally posted by georgeluv:* whoa... slow down there sony. yall already have spotty hardware issues on consumer goods (ps3 excluded, thank god... but remember that ps2?) and now your going to cheap out on manufacturing EVEN MORE? The PS2 had laser problems, not really hardware IMO. All lasers are going to fail eventually. It was also an easy self fix and you could easily prevent it by keeping the system clean. You can't really prevent the RROD on the 360 unless you buy an aftermarket cooler, which still isn't guaranteed to prevent it. [ + quote]
iluvendo (AfterDawn Addict) 4 April 2008 14:07
*Originally posted by H0bbes:* Methinks Sony spendeth too much money on laywers, hmmm? ;-p Absolute truth!!!!!! If it wasn't for bad luck, I'd have no luck! "The flimsier the product,the higher the price" Ferengi 82nd rule of aquisition [ + quote]
ZippyDSM (AfterDawn Addict) 4 April 2008 19:02
I hope t see more polish on the PS3 and better prices for it, I hope they wont pull a MS and do nothing to make the system better. [ + quote]
MonoSoft (Member) 9 April 2008 20:35
*Quote:* whoa... slow down there sony. yall already have spotty hardware issues on consumer goods (ps3 excluded, thank god... but remember that ps2?) and now your going to cheap out on manufacturing EVEN MORE? spotty hardware? out of the three consoles PS3 is the most reliable easily... X Box 360 is by far the least reliable, they even set aside a seperate money pot for their repair services which they knew would inevitably happen... i think saying PS3 will beat the other two is far too optimistic.... even though i do think it's the best of the three.. because people can't afford to fork out extra for it... that doesn't make it not value for money.. ^_^ PSP, Custom: Crystal Faceplate and UMD Door, Black Backplate MotherBoard = TA-086 MB(25/12/2005)3.80 M33-5 [ + quote] This message has been edited since posting. Last time this message was edited on 9 April 2008 20:37
ZippyDSM (AfterDawn Addict) 9 April 2008 20:41
*Quote:* *Quote:* whoa... slow down there sony. yall already have spotty hardware issues on consumer goods (ps3 excluded, thank god... but remember that ps2?) and now your going to cheap out on manufacturing EVEN MORE? spotty hardware? out of the three consoles PS3 is the most reliable easily... X Box 360 is by far the least reliable, they even set aside a seperate money pot for their repair services which they knew would inevitably happen... i think saying PS3 will beat the other two is far too optimistic.... even though i do think it's the best of the three.. because people can't afford to fork out extra for it... that doesn't make it not value for money.. ^_^ The PS3 will easily beat the 360 its a mess IE titanic mess, beating the WII on the grounds of sales will be impossible until the WII maximizes its gimmickial saturation. But the PS3 has the high end console base sewn up it would take sony doing something ore foolish than anything the 360 has done of yet to not outpace the 360. [ + quote]
MonoSoft (Member) 17 April 2008 21:21
that's a perfect explanation of what the Wii is... a gimmick.. still i wont deny it's ability to please a family household... but i will still say that the marketing ages for these consoles are: Wii: 5-10 years old (mentally) X-Box 360: 12-18 years old (or American..) Playstation 3: 16+ (or born with one in Japan) as almost every person has their "inner child", this is why the Wii is suceeding to beat the other two consoles badly in competition... the fact that Nintendo can't support the supply & demand of the console is making them delay their sucession... and it takes roughly 4 weeks for an X-Box user to get their console fixed, where as Sony will bring a fresh one to your door and take the broken one away.. [ + quote]
ZippyDSM (AfterDawn Addict) 17 April 2008 22:04
*Originally posted by MonoSoft:* that's a perfect explanation of what the Wii is... a gimmick.. still i wont deny it's ability to please a family household... but i will still say that the marketing ages for these consoles are: Wii: 5-10 years old (mentally) X-Box 360: 12-18 years old (or American..) Playstation 3: 16+ (or born with one in Japan) as almost every person has their "inner child", this is why the Wii is suceeding to beat the other two consoles badly in competition... the fact that Nintendo can't support the supply & demand of the console is making them delay their sucession... and it takes roughly 4 weeks for an X-Box user to get their console fixed, where as Sony will bring a fresh one to your door and take the broken one away.. One of the reasons why nin can't dot hat is because they are stretched a bit thin in producing them...they have already made a HUGE HUGE HUGE success over the WII, now they gotta milk it for all its worth :P [ + quote]
core2kid (Senior Member) 20 April 2008 17:24
*Quote:* *Originally posted by MonoSoft:* it takes roughly 4 weeks for an X-Box user to get their console fixed, where as Sony will bring a fresh one to your door and take the broken one away..[/quote]I highly doubt they do that. I think you gotta mail it to them first. [ + quote]