Square Enix isn’t the only major game-related company facing financial troubles recently; in order to cut down on costs, Sony Computer Entertainment America has laid-off somewhere between 80 and 100 workers.

Said Sony spokesman David Karraker to popular gaming blog Kotaku, "In an effort to accurately align the company to meet the changing needs of our consumers and of our industry, Sony Computer Entertainment America has found it necessary to analyse our current business and to restructure the company as necessary to continue our standing as the market leader.

"These restructuring efforts are currently underway and do include the streamlining of our operations and other initiatives to further strengthen the business, reduce costs and increase operational efficiency."

The blog’s source, one of the laid-off Sony employees, says that the reduction of the workforce is an answer to SCEA’s financial losses (its poor sales, which are no secret) in addition to the expense of game development for the PS3. Apparently, however, the laid off workers did get “fair” pay and benefits in leaving, so we have to give that to Sony.

Two months ago, about 160 workers at Sony Computer Entertainment Europe were made redundant.

Methinks Sony has to find a better answer to this financial problem, as it’s quite painful to see the PS3 crippling the company.

Tags : downsizing : made redundant : Play Station : ps3 : SCEA : Sony Computer Entertainment America

Comments

By: deanogee

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On: 02:48 Jun 7th, 2007
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no ps4 on the way soon then?

By: Dragonfly

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On: 09:14 Jun 7th, 2007
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deanogee;21752

no ps4 on the way soon then?

They might want to try getting the PS3 to sell before they even consider that one...

This honestly doesn't surprise me. The company has been in the pits for a while now, and laying off workers is only going to hamper future endeavours.

It's going to be an interesting few years for sony, that's for sure.

By: Dragonsoul

On: 12:00 Jun 9th, 2007
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They'll have to do something abou the morale loss that's sure to come. Having been through company lay-offs before the feeling of hopelessness that hits a person after the company lays off friends and coworkers can really devastate them. Naturally this affects efficiency and that only adds to the already poor performance of the company.

Incidently I find it funny they call it a "restructing effort". Can't they just be upfront and say layoff?

By: deanogee

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On: 12:10 Jun 9th, 2007
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in light of this news im confused of why no one of vgc has picked up the top story of today in the uk..

"The Church of England is considering legal action against entertainment firm Sony for featuring Manchester Cathedral in a violent PlayStation video game."

http://news.bbc.co.uk/1/hi/england/manchester/6736809.stm"]http://news.bbc.co.uk/1/hi/england/manchester/6736809.stm[/URL]