AfterDawn: News

It looks like game over for Sony's CPU business

Despite assurances from company spokesmen that all is going according to plan for Sony's gaming division, the company is apparently considering getting out of the gaming CPU business entirely.

In September Sony announced that they would be selling the manufacturing facility where PS3 CPUs are built to Toshiba, but indicated that they intended to remain involved in related research with partners Toshiba and IBM. Plans currently under consideration would have them withdrawing completely from the alliance responsible for creation of the PS3's Cell processor.



Sony spokesman Tomio Takizawa said the company "is in talks with IBM and Toshiba to review the project." He added "Given the sale plan, it would be unreasonable for us to continue research on manufacturing technologies."

Source: Yahoo News

Written by: Rich Fiscus @ 7 Nov 2007 23:47

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• 38 comments

• b18bek9

  daym looks like sony is losing money right and left.....and they are selling there animation departemnt or something like that as well sounds like someone is hurting and the blu ray camp might lose as well since hd dvd players are cheap as a standard dvd player....

  8.11.2007 00:53 #1

• OzMick

  Um... Toshiba manufacture HD-DVD players... REALLY REALLY cheap ones. Doesn't Sony see any conflict of interest putting the Cell under control of a company spearheading an attack at their own optical format (and thus the PS3, due to Sony touting it as a player)? Damn, Sony is just putting their balls on the chopping block selling their CPU facilities to an indirect competitor... All Toshiba has to do is say sorry, we're out of CPUs, and no PS3s roll off the production line. So stupid!

  8.11.2007 06:18 #2

• ZippyDSM

  Originally posted by OzMick: Um... Toshiba manufacture HD-DVD players... REALLY REALLY cheap ones. Doesn't Sony see any conflict of interest putting the Cell under control of a company spearheading an attack at their own optical format (and thus the PS3, due to Sony touting it as a player)? Damn, Sony is just putting their balls on the chopping block selling their CPU facilities to an indirect competitor... All Toshiba has to do is say sorry, we're out of CPUs, and no PS3s roll off the production line. So stupid!If they did that no one could gain a profit from it and the CPU is not a total loss in other industries, Sony trying to stop the monetary losses is desperate but then again they have been desperate for a a year or 2 with some of the things they have been doing.

  8.11.2007 06:42 #3

• navi1199

  hmm... so i guess that ps9 commercial was a sham

  8.11.2007 07:16 #4

• ZippyDSM

  Originally posted by navi1199: hmm... so i guess that ps9 commercial was a shamnot really they jsut need to partner with the right goverment...er....company to build it ^_~

  8.11.2007 07:20 #5

• DXR88

  in other news Sony leaves the gaming industry. and sega unleashes there new console Called The DC3MAX Using the new Hd-dvd player and cell proccesor

  8.11.2007 07:59 #6

• ZippyDSM

  Originally posted by DXR88: in other news Sony leaves the gaming industry. and sega unleashes there new console Called The DC3MAX Using the new Hd-dvd player and cell proccesor
  Sega has neither the creative staff or cash flow to even atemped such a thing, sony is flailing about but will survive on brand power alone for the next few years.
  
  Toshiba could gather up a staff and do it but frankly without brand power behind it.....I know Toshiba buys sonys game department and sega!!
  
  just imagain the horror! :P

  8.11.2007 08:08 #7

• sciascia

  Who cares? As long as quality and reasonably priced consoles/games come out of this. I really don't care if it's Ted Kaczynski making them, as long as they're good quality and reasonably priced.

  8.11.2007 08:47 #8

• spydah

  It is best that they do this this is a common sense move rather then gutting it out when their marketing strategy for the PS3 is what really killed it. Focusing on Blu-Ray more then the gaming console first is pretty stupid because thats the reason gamers will spend money on a system and then the slow start to all these games is the current dagger. I dont have no issues with my PS3 i love it actually but them moving on in the CPU business is really best.

  8.11.2007 09:27 #9

• ZippyDSM

  Originally posted by sciascia: Who cares? As long as quality and reasonably priced consoles/games come out of this. I really don't care if it's Ted Kaczynski making them, as long as they're good quality and reasonably priced.thats the problem the PS3 is kinda not reasonably priced.
  
  And as for games sorry but sega is quite dead in the creativity depo why do you think 90+ % of their new games suck badly.
  --------------
  spydah
  The trouble with Sony is they bet to much on BR and are having to cope with doing what they can to keep the pressure up with it and letting everythign else slide.
  Sony is looking at profits on the BR side of things and is blind sided by it, the Cell is a good first step in new CPU types but its under preforming enough to make sony drop some of the dead weight and try and bloister BR more.
  
  I hope dosent lose it and drop the PS3 altogether but at the rate they are going it will be the next DC.

  8.11.2007 09:42 #10

• d0nd

  old news man...
  
  but good news
  
  now they can concentrate on the first and third partie (more support) dev
  
  hope to see a more focused sony now!
  
  craze

  8.11.2007 10:02 #11

• spydah

  Quote:Originally posted by sciascia: Who cares? As long as quality and reasonably priced consoles/games come out of this. I really don't care if it's Ted Kaczynski making them, as long as they're good quality and reasonably priced.thats the problem the PS3 is kinda not reasonably priced.
  
  And as for games sorry but sega is quite dead in the creativity depo why do you think 90+ % of their new games suck badly.
  --------------
  spydah
  The trouble with Sony is they bet to much on BR and are having to cope with doing what they can to keep the pressure up with it and letting everythign else slide.
  Sony is looking at profits on the BR side of things and is blind sided by it, the Cell is a good first step in new CPU types but its under preforming enough to make sony drop some of the dead weight and try and bloister BR more.
  
  I hope dosent lose it and drop the PS3 altogether but at the rate they are going it will be the next DC.
  All of this comes down to marketing. If they would have simply focused on the gaming side they would have more blu-ray players in homes because more people would buy the system for the games and blu-ray second. Where this issue with the CPU performance kicks in well only time will tell with how good it is over time even though people want to give up on it besides Sony. It just best they see that its not working out early rather then waiting 3 years down the line to address it. Think they can restore a lot of good faith in PS community if they focus on what made people love Sony in the beginning. What they need to do is fire all those people in their marketing area and start over with their approach to the gamer market. Case point games games and more good games.

  8.11.2007 10:52 #12

• SProdigy

  Quote:All of this comes down to marketing. If they would have simply focused on the gaming side they would have more blu-ray players in homes because more people would buy the system for the games and blu-ray second...Think they can restore a lot of good faith in PS community if they focus on what made people love Sony in the beginning.Sony has the AOL Time Warner syndrome. They screw around and let each department try to dictate another. I'm sure when Blu-Ray and PS3 were both on the drawing boards, some suit started salivating at the installed base of the PS2 and thought that adding Blu-Ray to it would give them millions of homes with Blu-Ray. Someone made a chart, pointed to expected profits and let it be without thinking it though.
  
  When the PS2 launched, it was $300. It became the 2nd DVD player in my home and many others, at a time when DVD players were in the $100-$200 price range. DVD also did not have a competing format, and was superior to VHS, an old format.
  
  Also, Sony's PlayStation 2 was competing with Sega's Dreamcast, which had limited support (ie. no EA games.) Nintendo was fumbling around with the Gamecube and the N64 and it's pricey cartridges already hit it's death bed. Microsoft was rumored to be working on a console that would turn out to be the Xbox. Nintendo and Microsoft were late to the game.
  
  PSX owners could play all of their old games on the PS2, plus use their old controllers and accessories. Bundled with the promise of online gameplay and functionality of a personal computer, it threatened entry level PC's that were twice the cost. (Remember photos of the PS2 with a keyboard, mouse, and monitor?)
  
  Jump forward to present day, and the 360 launches a year early, and sells over 10 million consoles between $300-$400 each. The PS3 launches at $600 promising Blu-Ray playback at nearly half the price of a Blu-Ray player. The lack of HDTV penetration in the consumer market does not give Blu-Ray the same ability to supplant DVD in much the same way DVD supplanted VHS.
  
  There are also question marks as to whether the Blu-Ray format will survive against the competing HD-DVD format. Consumers probably aren't as willing to repurchase all of their favorite films after jumping on the DVD bandwagon around 5 years ago.
  
  The Wii also launches 2 days after the PS3, grabbing the consumer dollar at their much lower entry cost of $250.
  
  In some cases the PS3 costs more than an entry level computer, which can play DVD's, burn CD's, get on the internet and even run many PC games (think SIMS, not Crysis!)
  
  Many PSX and PS2 accessories and games will not run on some PS3 hardware, if at all!
  
  These are just some of the factors I considered when choosing my latest game console. I truly believe that Sony could have cornered the market by leaving some of the pricey components out of the PS3 and offering more of the same BWC benefit that was in the PS2, for a price in between the Wii and 360. Instead, consumers view it as a Blu-Ray trojan horse with an inferior lineup of games at a luxury price tag.

  8.11.2007 11:40 #13

• sciascia

  I agree. Had Sony supported BWC on the PS3 a little better, people would have something to do while they wait for actual PS3 games to come out. PS2 had the same thing happen in the beginning, remember the horrible launch line up of games(Fantavision)? But the fact that it doubled as a PS1 and a DVD player made it a good buy.

  8.11.2007 11:49 #14

• DXR88

  There processor was too advanced for there own good. it was the processor that cost them the game. Nobody could develope games in a certain time frame on the hardware because of the processors design.
  this cost them third party devs help. and left them with there main programming force.
  
  the Cell processor was a bad choice for them i said it would be there downfall when they said that there were gona release it for the
  PS3... it just so happens i was right.

  8.11.2007 12:16 #15

• spydah

  Originally posted by DXR88: There processor was too advanced for there own good. it was the processor that cost them the game. Nobody could develope games in a certain time frame on the hardware because of the processors design.
  this cost them third party devs help. and left them with there main programming force.
  
  the Cell processor was a bad choice for them i said it would be there downfall when they said that there were gona release it for the
  PS3... it just so happens i was right.
  I agree that they should have weighed their opinions better but i dont think this cost them the game yet. Its great they have seen this as an issue early within the first year since launch rather then waiting 3 years to revision their systems with newly unfamiliar promised specs. I want to see whats the next step. I am pleased with my PS3 overall but they really need to get their heads in the game.

  8.11.2007 13:23 #16

• DXR88

  Yes. i highly agree with you spydah, But it could be to late to get back in the game for them this time. thats all im trying to say.
  however the probaly will resort to an market shceme.
  
  With them making the new PS2 they will save some cash if they sell a PS3 great thats more cash they will then put a hold on that cash for the new PS4 if every thing work accordinly.
  
  how ever i see 2 thing wrong with this approuch there no longer focusing on the PS3 But instead on the PS2. the other thing i see wrong is there focusing on a console many people including myself have.
  
  to some it up there balencing on a if one thing fails we have another thing to take care of us. (us=Cash)
  
  this is very anti-consumer because it could leave a lot of people in the dark.

  8.11.2007 16:09 #17

• ZippyDSM

  Originally posted by DXR88: Yes. i highly agree with you spydah, But it could be to late to get back in the game for them this time. thats all im trying to say.
  however the probaly will resort to an market shceme.
  
  With them making the new PS2 they will save some cash if they sell a PS3 great thats more cash they will then put a hold on that cash for the new PS4 if every thing work accordinly.
  
  how ever i see 2 thing wrong with this approuch there no longer focusing on the PS3 But instead on the PS2. the other thing i see wrong is there focusing on a console many people including myself have.
  
  to some it up there balencing on a if one thing fails we have another thing to take care of us. (us=Cash)
  
  this is very anti-consumer because it could leave a lot of people in the dark.This dose remind me of N64 more than the DC Sony as a while has the moeny to handle the PS3 not being a great grand success they can over come this but will their CEOs let them their suits are some of the craziest in the world, its almost like its being run by a zippy off his meds LOL

  8.11.2007 16:20 #18

• vinny13

  How is Sony focusing on the PS2? They made a revised one. And? I would do the same thing if I had a successful product like that. Thy don't care. They need money. The PS3 is in the ground right now and I believe that all the money made by the PS2 is being used as a shovel to dig it out. It's not like they're still making PS2 exclusives :P
  
  And how come no one ever mentions the M$ BS? Sony this, Sony that, but because the 360 has had a successful launch of diseased consoled no one says anything. Sounds fanboyish, but it's true.
  
  I'm still gonna get a PS3 by the way :)

  8.11.2007 16:25 #19

• ZippyDSM

  Originally posted by vinny13: How is Sony focusing on the PS2? They made a revised one. And? I would do the same thing if I had a successful product like that. Thy don't care. They need money. The PS3 is in the ground right now and I believe that all the money made by the PS2 is being used as a shovel to dig it out. It's not like they're still making PS2 exclusives :P
  
  And how come no one ever mentions the M$ BS? Sony this, Sony that, but because the 360 has had a successful launch of diseased consoled no one says anything. Sounds fanboyish, but it's true.
  
  I'm still gonna get a PS3 by the way :)Because everyone already knows the 360 is held together with duct tape, and sony selling off assets propping up the PS2 and ignoring any worthwhile change on the PS3 front are all signs sony is hurting.

  8.11.2007 16:35 #20

• goodswipe

  lmao @ held together with duct tape...good one zippy.

  8.11.2007 16:45 #21

• ZippyDSM

  Originally posted by goodswipe: lmao @ held together with duct tape...good one zippy.its that or a easy break oven sadly with MS taking 2-3 years to fix the damn thing it deserves the nicknames LOL
  
  I mean WTF why are they waiting on revision"S" to fix it?
  this is assine!

  8.11.2007 16:56 #22

• spydah

  Hopefully during the new year Sony will re-focus on the system its self and push games out for it thats the biggest hurdle. If they can over come that then its all up to marketing better to get good faith back in action with a lot of users. The price as come down so i think its more reasonable then before.

  8.11.2007 17:02 #23

• ZippyDSM

  Originally posted by spydah: Hopefully during the new year Sony will re-focus on the system its self and push games out for it thats the biggest hurdle. If they can over come that then its all up to marketing better to get good faith back in action with a lot of users. The price as come down so i think its more reasonable then before.Games will come but they really need to focus on getting the deving easier so more games will come for it and lower the price of the system, they really need to just go ahead and lower the price to 390 and drop the rediclous 40GB unit alrogather.

  8.11.2007 17:14 #24

• motautis

  Sony isn't doing that badly, atleast they still have decent numbers in japan. Xbox 360 is selling worse than the OG xbox there. I agree they need to promote their exclusive games better, they'll be getting quite a few, by march the 360 wont even have much of an edge in games. It just takes time, i dont think they realize how trendy america is. If your not doing good at the moment people move on to the next big thing.

  8.11.2007 17:53 #25

• furchtlos

  Man, looks likes Sony is really doing crap lately. Low Ps3 sales, Introducing a new PS2 to try and gain some money, and loosing out with this. Great for Microsoft.

  8.11.2007 18:51 #26

• scorpNZ

  Actually it may not be a bad thing looking back @ the PS2 on paper it's more grunty than the xbox 1 yet because MS has been working close with hardware manufacturers for years they're ahead in getting the console hardware to work more efficiently & it shows, it's the same when i look at the specs for the PS3 vs 360 so Sony going with IBM is a good move i'd be interested to see what changes if any they do to new releses of the PS3 i dare say MS will also try & squeeze out a bit more performance either way it's all good for us the consumer

  8.11.2007 19:58 #27

• DXR88

  Why cant sony work more closly with 3rd party dev is it becuase its some kinda name brand honor not too. it like the stubborn if they cant find out why. speaking of honor i was at school today and i had the honor of trying too programme for an IBM cell proccesor.
  ON my american disgruntled honor there is a world differnce between the motorola chip the ps2 used and the cell based on on the ps3.
  
  Legend Motorola chip + Emotion chip = Ps2

  8.11.2007 20:08 #28

• spydah

  I think they are doing half ok. The 40gig version is fine for now. After xmas would be best to drop it then for the after xmas shoppers. That should help the sales because all the people that couldnt get systems at xmas will have their chance to make up for it which tends to happen a lot. The 80 gig should be dropped to around that point.

  8.11.2007 20:55 #29

• vinny13

  Damn. Everybody always complains about the price, even after a good $100 drop after 8 months or so(a $200 drop here). Where the hell are they supposed to make the money to support the thing(besides the PS2 of course)?

  8.11.2007 22:23 #30

• sciascia

  Well the idea would be to open out at a competitive price, even if you have to eat a little cash for now, eventually, after the console has been selling well the price to produce the components i.e. BD diode, cell, etc. and you'll start to lose less money.

  8.11.2007 23:15 #31

• Narutodbz

  i don't want Sony to get out of the gaming buisness for sure and this is not very convincing that they will because it says that they are considering and plus this year isn't a great year for the ps3 but wait till next year all the good games for ps3 will come e.g. mgs4, litle big planet and killzone 2 etc. I'm confident by the ned of next year SOny will at least tie or close to tie 360

  10.11.2007 12:03 #32

• plazma247

  I think the announcement that new chips for ibm and intel are going to destroy the cell chip, they spent lots of money making it :(
  
  I would just like to point out pre cell cpu intel and amd were dragging their feet a little.... Post cell cpu we now have some monster chips on the way.
  
  So thankyou sony, although it may look like the only place your going to find a cell cpu will still mostly be the ps3 it has forced the rest into a whirlwind of improvements :)

  10.11.2007 12:30 #33

• ruye

  YouTubeRobot.com today announces YouTube Robot 2.0, a tool that enables you to download video from YouTube.com onto your PC, convert flv files to various video formats to watch it when you are on the road on mobile devices like mobile phone, iPod, iPhone, Pocket PC, PSP, or Zune.Product page:youtuberobot.com
  Direct download link: youtuberobot.com/download/utuberobot.exe
  Company web-site: youtuberobot.com
  E-mail: support@youtuberobot.com

  11.11.2007 19:49 #34

• scorpNZ

  Originally posted by ruye: YouTubeRobot.com today announces YouTube Robot 2.0, a tool that enables you to download video from YouTube.com onto your PC, convert flv files to various video formats to watch it when you are on the road on mobile devices like mobile phone, iPod, iPhone, Pocket PC, PSP, or Zune.Product page:youtuberobot.com
  Direct download link: youtuberobot.com/download/utuberobot.exe
  Company web-site: youtuberobot.com
  E-mail: support@youtuberobot.comlooks good except there's no contact phone number & no business address without those it's a fly by nighter unless cnet,pcworld or some other well known crowd can vouch for them,besides why pay for that type of software when there's free software that does the same

  11.11.2007 20:08 #35

• ZippyDSM

  Quote:Originally posted by ruye: YouTubeRobot.com today announces YouTube Robot 2.0, a tool that enables you to download video from YouTube.com onto your PC, convert flv files to various video formats to watch it when you are on the road on mobile devices like mobile phone, iPod, iPhone, Pocket PC, PSP, or Zune.Product page:youtuberobot.com
  Direct download link: youtuberobot.com/download/utuberobot.exe
  Company web-site: youtuberobot.com
  E-mail: support@youtuberobot.comlooks good except there's no contact phone number & no business address without those it's a fly by nighter unless cnet,pcworld or some other well known crowd can vouch for them,besides why pay for that type of software when there's free software that does the samedun feed the spam bot :P

  11.11.2007 20:09 #36

• plazma247

  Have a look at whois it gets better.
  
  Owner
  youtuberobot inc
  MORETON
  CARNEYS POINT, NJ 08069
  SHANGHAI, SHANGHAI 5683
  China
  
  Admin and Technical
  Smith, Martin sales@share-vid.com
  youtuberobot inc
  MORETON
  CARNEYS POINT, NJ 08069
  Syndy, New South Wales 5683
  Australia
  2162059554Fax --
  
  Isnt there some sort of icann thing about incorrect whois, look at share-vid.com no website....
  
  Registrant:
  share-vid inc
  
  MORETON
  CARNEYS POINT, NJ 08069
  Syndy, New South Wales 5683
  Australia
  
  Registered through: GoDaddy.com, Inc. (http://www.godaddy.com)
  Domain Name: SHARE-VID.COM
  Created on: 11-Apr-07
  Expires on: 12-Apr-08
  Last Updated on:
  
  Administrative Contact:
  Smith, Martin sales@share-vid.com
  share-vid inc
  MORETON
  CARNEYS POINT, NJ 08069
  Syndy, New South Wales 5683
  Australia
  2059554
  
  Technical Contact:
  Smith, Martin sales@share-vid.com
  share-vid inc
  MORETON
  CARNEYS POINT, NJ 08069
  Syndy, New South Wales 5683
  Australia
  2059554

  11.11.2007 20:24 #37

• borhan9

  You neva know this may improve the sony playstation product ten fold people should see this as a move in the right direction.

  27.11.2007 15:26 #38