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General: SOE Reports to SCEI

StraddenStradden Managing EditorMember CommonPosts: 6,696

Word out of SOE is that the MMORPG wing of Sony, Sony Online Entertainment, will now report to the President of Sony Computer Entertainment Inc. The move, it is reported, has been made in order to give the PlayStation a boost through SOE's experience.


As announced in a press release [yesterday], effective April 1, 2008 Sony Online Entertainment (SOE) will report to Kazuo Hirai, President and Group CEO of Sony Computer Entertainment Inc. (SCEI). The new structure is designed to mutually benefit both companies by further accelerating the PlayStation business through SOE's strong online gaming expertise.

SOE is currently part of Sony Pictures Entertainment. Under the new structure, SOE will continue to develop its games for the PC and the PLAYSTATION®3 (PS3®) computer entertainment system.

The day to day workings of SOE will not change and no employees will be let go. We are thrilled and excited by this change in structure! As Smed was quoted in the press release, "This move is going to broaden our capabilities and expand the development of our products into new and exciting directions."

Read more here.

Cheers,
Jon Wood
Managing Editor
MMORPG.com

Comments

  • WolfdorWolfdor Member Posts: 123

    They really love using the words "New and Exciting" don't they?

  • GuintuGuintu Member UncommonPosts: 320
    Originally posted by Stradden


    Word out of SOE is that the MMORPG wing of Sony, Sony Online Entertainment, will now report to the President of Sony Computer Entertainment Inc. The move, it is reported, has been made in order to give the PlayStation a boost through SOE's experience.


    As announced in a press release [yesterday], effective April 1, 2008 Sony Online Entertainment (SOE) will report to Kazuo Hirai, President and Group CEO of Sony Computer Entertainment Inc. (SCEI). The new structure is designed to mutually benefit both companies by further accelerating the PlayStation business through SOE's strong online gaming expertise.
    SOE is currently part of Sony Pictures Entertainment. Under the new structure, SOE will continue to develop its games for the PC and the PLAYSTATION®3 (PS3®) computer entertainment system.
    The day to day workings of SOE will not change and no employees will be let go. We are thrilled and excited by this change in structure! As Smed was quoted in the press release, "This move is going to broaden our capabilities and expand the development of our products into new and exciting directions."

    Read more here.

    This is a train wreck waiting to happen.  Don't tell me now every SOE game will be made into a movie.

  • Nightbringe1Nightbringe1 Member UncommonPosts: 1,335

    My concern at this point is that SoE will be forced to make it's MMO's more like console games.

    If I wanted to play console games I would buy a console.

    Any fool can criticize, condemn and complain and most fools do.
    Benjamin Franklin

  • shavashava Member UncommonPosts: 324

    Imagine the obligatory SWG veteran snark here.  Why bother to repeat it?  You know what we think this will do to the console group...:)

     

    Yrs,

    Shava

  • ThorkahnThorkahn Member Posts: 16

     

    Mergers and acquistions operate on the bases of "Rules of Gengis Kahn".

    IE, Say that nothing is changing and all is good, then 6 months later all key persons get their throat slit in the middle of the night.

    What does this mean for SOE? 

    Likely that Smed and other key managers / producers / developers will be fired or marginalized.

    What does this mean for SWG? 

    I think that the game will follow one of two paths.  Least likely is that this game will be ported to the PS3.  Most likely that the game after that 6 month period will be placed into the "keep it running with no promise of any fixes or added content.".

    Why 6 months? 

    Most corps operate on fiscal years and 6 months from now will be the end of the current fiscal year and the start of the next.  Perfect timing for head rolling and shutdowns.

    Mind you I am speaking from my own real world experince with these types of business dealings.

    As always, time will tell.

     Do not fool yourself by believing any of the double speak that you hear from Sony with regard to this merger.

    Every employee at SOE should be prepping their resume and looking for other potential opportunities, and I mean everyone.

    I would not be suprised at all if Sony totally shut down SOE this coming October.

    If Sony, and Microsoft for that matter, are really smart, they should be looking for a way for their consoles to co-exist with in the PC market.

    IE, a PC that can play their games by being equipped with an adapter card / integrated hardware.  If they do not do this, then they are not really intending to enter the MMO market with consoles.  Reality is that PC users are the dominant players in the MMO market as the majority of console users are not intersted in that level of time investment in a game.

    I would look for the PS4 and Next Xbox to be ported to a PC box compatible format.  Especailly now that BlueRay has won the HD DVD war.

    First one to make their console do this wins and will be the next big player in MMOs.  IMO.

  • AnofalyeAnofalye Member, Newbie CommonPosts: 7,433

    It was my understanding that Sony, as a big company, support each of it link inconditionnally.

     

    I mean, if 1 year ago Smed or anyone at SoE would have wanted anything from SCEI, just asking would most certainly give them all they want.

     

    I understand that proximity is a no brainer.  But the way Smed talks and all, it feels like the control room has zoom in on SoE.

     

    In other words.  SCEI is making a "NGE-like upgrade" specifically to helps SoE.  It may actually work very nice with SoE...or not. Time will tells.  I wish SoE to prosper...I kinda like them; they improve EQ and LDoN was made by SoE afterall.

     

    Such a move may focus on the qualities of SoE and SCEI and make it better and improve the final items...or it may focus on the flaws of both and lead to a disaster.  Believe it or not, they both have qualities and flaws.  Even SoE has many qualities!   :)

    - "If I understand you well, you are telling me until next time. " - Ren

  • GishgeronGishgeron Member Posts: 1,287

    Originally posted by Thorkahn


     
    I would not be suprised at all if Sony totally shut down SOE this coming October.
    If Sony, and Microsoft for that matter, are really smart, they should be looking for a way for their consoles to co-exist with in the PC market.
    IE, a PC that can play their games by being equipped with an adapter card / integrated hardware.  If they do not do this, then they are not really intending to enter the MMO market with consoles.  Reality is that PC users are the dominant players in the MMO market as the majority of console users are not intersted in that level of time investment in a game.
    I would look for the PS4 and Next Xbox to be ported to a PC box compatible format.  Especailly now that BlueRay has won the HD DVD war.
    First one to make their console do this wins and will be the next big player in MMOs.  IMO.

     

      I agree on many points.  In fact, do does Sony.  The entire point of this move IS to allow for better connection to the PS3 market (remember...no matter what we hate about sony they were the first leading console TO offer online support with solid 3rd parties.  XBox came later with built in functionality)  This merger will essentially make SOE nothing more than a localization name....a way to break that end of the company into departments so to speak.  Sony Computer Entertainment will very likely BE the sole controlling force from here on out...indeed it would be illogical to do it otherwise as it would simply add more paperwork and passes to the system anytime they wanted to combine the console market and the PC market (which they have stated they WANT to do).

     

      I'm not a fool though...I highly suspect this move also plays deeply on the fact that consumer response to the SOE name is poor.  The worked lessened when porting to console or developing between them is merely icing on the cake...I honestly think that the online division is not up to par when compared to Sony's many other financial outlets.  In a company that large...all extensions of the corporate head must be seeing constant growth in order to stay ahead of their competitors.  Anything less results in eventual shut down of the division.  I suspect Kaz, and his team which have been working with games for well over a decade, is more competent when it comes to that end of the Sony spectrum

    image

  • DestroyeronDestroyeron Member Posts: 79

    Originally posted by Thorkahn


     
    I would not be suprised at all if Sony totally shut down SOE this coming October.



     We can only hope.

  • forthelulzforthelulz Member Posts: 215

    wait untill they look into the purchase of vanguard...

    the millions lost on swg.....

    the shady dealings in eq2...

    the japanese have a way of dealing with unproductive executives..the "corner office". a nice office where you can do paperwork and look out the window...never to be in on decisions again....

  • PeccaviPeccavi Member Posts: 53

    so smed doesnt run SoE anymore, i can't go to the link says it no longer exsists, but if what it seems like here at first glance that smed is no longer the head dipshit of SoE, that may be a good thing, MAY.

  • AntariousAntarious Member UncommonPosts: 2,846

    I read some of the replies but not all of them.

    Stringer has been re-orginizing Sony Corp. for a while now.  Their stock holders aren't happy and many (well most) divisions do not perform as they should.

    At one point only Sony Pictures (not due to SOE) and the console division were making a profit.  They were floating the entire rest of the Corporation.

    Smedley had a direct supervisor previously.  He reported to Yair Landau who was VP at Sony Pictures Entertainment.  Who oddly enough is leaving Sony after 17 years in April (when this merger happens).

    That seriously sounds like a "we will allow you to leave the company on good terms" line.. that they give someone who has really screwed up.  Yet was a loyal employee...

    I see the merger as many do .. putting SOE into a position to be accountable for its losses/gains.  Its time to perform as expected as face change (All of Sony Corp is under this pressure atm to be honest).

    The main thing SOE offered to the PS3 was the "online" services.  Now that those are being merged into SCEI... If SOE is not performing as it should.  They can get rid of whatever is not up to standards.. and keep what they really wanted (online support for the PS3).

    They make a big deal that no one is losing their job during this time.  However, I can definitely see where people may be losing their jobs by the end of the year.

    If nothing else.. there are a few people from SOE.. that I really would love to see the Corp. examine for actions they have taken and things they have said to customers.  There are definitely people still working at SOE that cost Sony Corp profit... and they should be held accountable for that if nothing else.

    Anyway short version...

    This totally makes sense for SCEI and the PS3.  However, I definitely feel some people are going to be losing their jobs and rightfully so.  (no .. I have no predictions as to who that may be).

  • forthelulzforthelulz Member Posts: 215
    Originally posted by shava


    Imagine the obligatory SWG veteran snark here.  Why bother to repeat it?  You know what we think this will do to the console group...:)
     
    Yrs,
    Shava

  • TerranahTerranah Member UncommonPosts: 3,575
    Originally posted by forthelulz

    Originally posted by shava


    Imagine the obligatory SWG veteran snark here.  Why bother to repeat it?  You know what we think this will do to the console group...:)
     
    Yrs,
    Shava



    LOL!  Priceless....

  • JYCowboyJYCowboy Member UncommonPosts: 652

    I am not screaming for the death of SWG like most of you.  But, I see this as a potential solution to the mutually binding contract that SOE and Lucas Arts have.  If SOE is no more or not the same company that LA signed with then the contract could be null and void.  At any rate, names will be changing.  Jim Ward is now gone from LA.  Lets see what happens at SOE.

    In any case, this may be a wake-up call for each SOE product active.  We shall see what happens to the IP's.  EQ2 is thier best runner so it may get more attention while the ax falls on others.

  • SuvrocSuvroc Member Posts: 2,383
    Originally posted by JYCowboy


    I am not screaming for the death of SWG like most of you.  But, I see this as a potential solution to the mutually binding contract that SOE and Lucas Arts have.  If SOE is no more or not the same company that LA signed with then the contract could be null and void.  At any rate, names will be changing.  Jim Ward is now gone from LA.  Lets see what happens at SOE.



    Interesting point. Particularily with the current removal of SWG from DD.

  • This is the beginning of the end for Smed.  The gaming division runs on a lot thinner margins than Sony Pictures, which gave Smed the security of having his rapid decrease in revenue hidden amongst losses that dud pictures produced, offset by the usual Spiderman sequel blockbuster.

    Now I am very much a prejudiced observer, but I think that any objective analysis of SOE will conclude that mismanagement has led to it's falling into a dive in terms of subscribers and revenue, even as the inudustry has grown.  The captain is responsible for the ship, and that man is Smed.

    At the most, I think Smed will be given until the Agency and the DCMMO are released later this year.  When those flop (and I have every reason to think that they will, because I don't see ANYONE trusting SOE with a RMT game) Smed will have no excuses left and no plan to revive the company.  I don't even know if they even have any other MMOs other than those two, in their development pipeline.

    Ultimately, given their reputation, I see SOE eventually exiting the PC MMO business entirely and focusing ONLY on console MMO's, where they have a more captive audience (Sony can lock any competitors out of the PS3 space if they choose to).  The only thing they have of value really is the Everquest IP, and even that is greatly diminished from what it was a couple years ago.

     

  • Prime8Prime8 Member CommonPosts: 108

    I hope smed's new boss likes reading fiction  

  • doodler222doodler222 Member UncommonPosts: 112

     


    Originally posted by Nightbringe1

    My concern at this point is that SoE will be forced to make it's MMO's more like console games.

    If I wanted to play console games I would buy a console.

     

    I agree.

  • AtomicDogAtomicDog Member Posts: 31

    The more I learn about sony the more it frightens me. I wonder how many japanese businessmen have done the 'honorable thing' after sony's stock dropped a point or so?

  • LaterisLateris Member UncommonPosts: 1,847

    I have been waiting for 5 years to see when Sony Japan would take this reckless behavior away from SOE. And I am honored that my hopes have almost been granted.  I cannot wait for the sword to swing. As far as SWG goes I hope that Sony Japan will address how disrespectful the customers were treated when the NGE was released. I am sure they have been watching the data for some time now. And at a 200.00 loss per PS3 they must swallow anything profitable.

     

    Has anyone noticed all the banner ads at SOE's websites for other games? Trouble is in the house!

     

  • Daffid011Daffid011 Member UncommonPosts: 7,945

    I love the fact that it takes place on April 1st.  That makes it so fitting.

  • InAngusInAngus Member Posts: 19

    the only is hope

    breathing...

  • nakumanakuma Member UncommonPosts: 1,310
    Originally posted by Nightbringe1


    My concern at this point is that SoE will be forced to make it's MMO's more like console games.
    If I wanted to play console games I would buy a console.



    my sentiments exactly.

    3.4ghz Phenom II X4 965, 8GB PC12800 DDR3 GSKILL, EVGA 560GTX 2GB OC, 640GB HD SATA II, BFG 1000WATT PSU. MSI NF980-G65 TRI-SLI MOBO.

  • nakumanakuma Member UncommonPosts: 1,310
    Originally posted by doodler222


     
    Originally posted by Nightbringe1


    My concern at this point is that SoE will be forced to make it's MMO's more like console games.
    If I wanted to play console games I would buy a console.

     

    I agree, I think that games are moving away from console and to online.  My girls have not begged me to be a console game for sometime... yet every pay day they are asking for $10-20 for in-game cash shops (yes, they earn it  by doing my chores).

    On their birthdays (I give them cash) and they no longer want me to rush to the game store for console games, they want my credit crard so they can use it for (yes again) in-game cash shops.  They also asked for this for Christmas (no kidding).  I was going to get them a game console but nope.... they wanted 'stuff' for their online characters and 'gifts' for their friends characters.

    I would recommend that these game companies look at this market.  You have to wonder, because they get one price for the console and one price for each game, and they have games that do well and do not do well.

    The online games I play are emulation type deals that already run in other countries (overseas) and a company buys the rights to brand them - and open up shop with that game.  Sure, its behind the other ones, but they get the game up and running, closed beta, open beta (opening the cash shops up) and adding things as the game matures.

    Some games allows cash game items to be sold in the auction house or sold through your personal shop. 

    Anywho.... I do not agree that consoles will be here in 10 years... games are evolving to online.  Here you find rich communities, interactions, and ways to group (i.e parties, guilds, mentor systems) with other players.

    Sure - you now have bots / hackers, gold resellers, keyloggers and leveling services to deal with, and okay a few creepy people but I think that the pros outweigh the cons.  I do pay for online games (monthly fee) I find worthy and not a hugh-hugh grindfest, and I have paid for the version where it is one price and that is it.  (In-Game shops keep site going). 

    One game I play has advertisements (in-game) to defer costs, they have gamers volunteer to be GM's, and well... I just think in 10 years, less consols will be sold an more will be playing online.

    After all - look at this website - its MMORPG..... I read it atleast twice a week to check out the newest MMORPG news.

    Peace out

    deb

     

     

     

     

     

    is it me or was this a post about in game shops and not about consoles ruining complexity of the MMO?? or perhaps a promotion to in game-cash shops for mmo's? lol im not trying to be a smart-arse but you went across the spectrum on your response to his post. as far as in game-shops. only in-game shops I have seen are games that are absolute grindfest never once have I seen a game that has any remote depth, fun, engaging story elements or backstory tot he world im "living and fighting" in. ill stick to my $15 a month fee thank you kindly lol. figure it not broke dont fix it. and another question $10-20 for in game cash items? how many times a month does your girls ask for money? i figure like this, if the amount you pay for in game cash items over shadows the amountr IM payingf for an average MMO, your getting ripped. and I can assuredly assume your paying far more than $15 a month in your game shop oriented game. but i degress, if it makes your girls happy, hey its your money i just think in game cash shops are a major rip off to get you to spend more money than you normally would. and like 99% of them are horrific korean grindfests. kill kill, lather rinse repeat for 10 hours, go to town, buy more items, kill kill kill lather rinse repeat (YAWNSSZZZZ!!!)

    3.4ghz Phenom II X4 965, 8GB PC12800 DDR3 GSKILL, EVGA 560GTX 2GB OC, 640GB HD SATA II, BFG 1000WATT PSU. MSI NF980-G65 TRI-SLI MOBO.

  • LaurannLaurann Member UncommonPosts: 47

    This is the best news ever. Candy coated to say the very least, but great news regardless. SOE has been a train wreck ever since they have tried to make EVERY single game that they maintain the lowest common denominater in terms of playablity in order to "try" and reach a wider audience.

    Really what they have done is squeezed themselves further out of the marketplace, garnering ever LESS subs for their games.

    I really had to wonder when they were going to make the captain walk the plank, or lock him up in the gally to peel potatoes...

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