In a statement to Next-Gen, Sony Computer Entertainment America has denied that the layoffs reported today are directly linked with trailing PlayStation 3 sales.
“This move is not wholly related to any one product in our portfolio,” said SCEA PR boss Dave Karraker when asked if the layoffs were directly linked to PS3 sales. “More accurately, it is reflective of shifts in the marketplace and in consumers’ wants and needs, such as the rise of digital content delivery and networked services. In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary.”
SCEA laid off 80 to 100 workers yesterday, mainly at its headquarters in Foster City, Calif. Karraker declined to offer details surrounding the specifics of how the employees were informed.
SCE Europe announced earlier this year that it was looking into layoffs to “streamline” operations.
Sony’s PS3 is trailing behind rival game consoles Xbox 360, which launched about a year prior to PS3, and the Nintendo Wii, which launched around the same time as Sony’s machine. In April, U.S. market research firm NPD Group said that the Wii sold 360,000 units during the month, while Xbox 360 sold 174,000. PS3 sold just 82,000 units.
The aging PS2 however, managed to move 194,000 units, and the PSP handheld sold 183,000.
Sony’s games division lost nearly $2 billion last fiscal year because of PS3 launch expenses. Sony overall predicts impressive operating profit of 440 billion yen for the current fiscal year, thanks in part to lowered production costs related to PS3.