RSS Updates
Email Updates
Sony’s (SNE) game console arm is cutting jobs in the US after letting a bunch of folks go in Europe.
As a rule, large companies do not let go of people when business is good. The PS3 has not been selling as well as the Xbox 360 or Ninendo Wii. but Wall St. has hoped that as more game became available for the new Sony platform, sales would rise. Investors have also expected a price cut for the PS3 which is more expensive than its two rivals.
Firings are often a lagging indicator of how well a business has done. But, they can be a leading indicator of how a firm sees its upcoming performance. If Sony sees the future of the PS3 as dicey, cutting costs may simply be a way to staunch the bleeding.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
Buzz up!
Digg
Fark
Facebook
Tip'd
Tweet This
