Sony to Slash US Workforce

Although most gamers are aware that Sony has, for the time being at least, been stripped of its console crown, few realize just how bad times are for the Japanese company. Although speculation has run rampant for months that Sony might lay off some of its workforce in the wake of the PlayStation 3's early troubles, only recently is the company officially announcing plans to do just that stateside. It seems Sony's American workers will be worst hit, with plans for Japanese operations to remain mere "restructuring".

When the PlayStation 3 launched in November, few could have predicted Sony would ever have to lay off staff. The powerful system largely overshadowed the year-old Xbox 360 and underpowered Nintendo Wii, although the latter two consoles were available in much greater quantities. That opened up a window of opportunity for the cheaper and better-supported Wii, which has taken over the PlayStation's position as crowned king of consoles.

The losses for Sony are fairly staggering. In the year ending March 31, Sony's game division lost a reported $1.91 billion. That's primarily because the PS3 costs the company more to make than it retails for, a reality that flies in the face of Nintendo's already profitable Wii. (Source: eetimes.com )

In April, Sony announced plans to cut 160 jobs from the European workforce. Although details on the numbers are not yet known, it took until today for Sony to decide it must lay off a significant portion of its American workers.

In a statement, a Sony spokesperson had this to say: "We are taking another look at the company as a whole." (Source: washingtonpost.com )

Maybe it's time Sony took another look at the competition.