Sony Garage Sale?

[bentllama]

is this to make up for lossses on the PS3?

on a side note, I enjoyed Surf's Up and I do hope a 'sale' will not instigate mass layoffs.

[talos72]

Little surprise considering that Imageworks has been probably operating in the black for some time. I had a feeling that when Sony execs would look at the books, they would not be too enthusiastic about the numbers in the animation and FX division.

[Venkman]

I thought despite the losses from the PS3 division, Sony was back in black? Why sell these off? Aren't they tied to profitable projects (Surf's up, Spider-man, etc)

[frogspasm]

Little surprise considering that Imageworks has been probably operating in the black for some time. I had a feeling that when Sony execs would look at the books, they would not be too enthusiastic about the numbers in the animation and FX division.

I think you mean "in the red". "In the black" = profitable.

[Bonedaddy]

Imageworks had been doing well, I thought. Plenty of big shows.

SP Animation, maybe not so much.

But if you're going to cut off an arm because it's not making enough cash -- dude, PS3!

[Venkman]

Imageworks had been doing well, I thought. Plenty of big shows.

SP Animation, maybe not so much.

But if you're going to cut off an arm because it's not making enough cash -- dude, PS3!

I'm sorry to hear they will sell that off.

But the PS3 division? Never. That is their frontline weapon in the next gen DVD war.

[gunslingerblack]

damn i tried to post this first thing when i came into work but i got a server error, by the time i came back this thread had been posted.

interesting developments... im sure alot of people are interested in how this will turn out.

[Imhotep397]

It'll be interesting to see who buys this. I suspect it will be a medium sized animation/post house that wants to raise their profile and or maybe move into an area where the haven't been yet. Maybe Blur, Rhythm and Hues, or Bluesky or CafeFX.

[SheepFactory]

But if you're going to cut off an arm because it's not making enough cash -- dude, PS3!

I am going to make a wild guess here and say you skipped some business classes in college.

[Bonedaddy]

I am going to make a wild guess here and say you skipped some business classes in college.

I thought the basic etiquette course would be a bit more useful, but I suppose that's where we disagree.

;)

[-dc-]

Well it's extremely disappointing news, that's for sure. A sell always means merger, layoffs, changes.

At $500 mil, you're looking at a limited audience. It's going to take a company with huge bucks to put in a bid for Imageworks and/or Animation. It won't be a smaller shop looking to grow, it will likely be a larger distributor looking for control and long term savings.

[richcz3]

I have no idea whats going on with the top brass at SONY but it appears the left hand doesn't know what the right hand is doing while the head is wanting to divorce both of them.

A bigger startler is that SONY is selling off their development/manufacturing of the Cell to Toshiba of all companies. I did a triple take when reading that. Toshiba is one of the biggest forces behind HD-DVD - worse Toshiba is partnering with MS to incorporate the 360 into future HD-DVD units late 2008 - early 2009.

[davius]

A bigger startler is that SONY is selling off their development/manufacturing of the Cell to Toshiba of all companies.

That is simply AMAZING... mind post a URL from where you've read that? If true, than PS3 is doing worse than I've ever imagined. This seems like a running from a sinking boat! Maybe now Konami will reconsider launch MGS4 in the X360 :D ?

[Grgeon]

This is unfortunate. Weren't they starting to expand by opening a studio in New Mexico? I guess that's not happening anymore or is it?


-GC

[SheepFactory]

I have no idea whats going on with the top brass at SONY but it appears the left hand doesn't know what the right hand is doing while the head is wanting to divorce both of them.

A bigger startler is that SONY is selling off their development/manufacturing of the Cell to Toshiba of all companies. I did a triple take when reading that. Toshiba is one of the biggest forces behind HD-DVD - worse Toshiba is partnering with MS to incorporate the 360 into future HD-DVD units late 2008 - early 2009.


They are sharing the development. Which will bring down the cost of manufacture. Its a %60 %40 split if I remember correctly. The toshiba partnering with MS to create hd-dvd 360's is a rumor and nothing else at this point. Not to mention it has nothing whatsoever to do with cell. PS3 is not the only application for that chip you know?

Though gotta love posts like davius's. Toshiba sharing cell manufacture = metal gear solid 4 on the 360. It kinda makes sense after a couple drinks I am sure. This thread is very entertaining so far, I might bookmark it soon. :)

[talos72]

Ah...they'll probably out-source all operations to India anyways.:shrug:

[-dc-]

The expansion into New Mexico is definitely happening.

Read more about it here (http://www.mesadelsolnm.com/content.asp?pg=Mesa_del_Sol_Site_of_Groundbreaking_Held_for_Sony_Pictures_Imageworks)

[Venkman]

A bigger startler is that SONY is selling off their development/manufacturing of the Cell to Toshiba of all companies. I did a triple take when reading that. Toshiba is one of the biggest forces behind HD-DVD

Toshiba co-developed the cell with Sony and IBM. It's not that big of a shock!

[Grgeon]

Thanks for the info DC. I guess whoever buys it also gets NM studio.

-GC

[richcz3]

That is simply AMAZING... mind post a URL from where you've read that? If true, than PS3 is doing worse than I've ever imagined. This seems like a running from a sinking boat! Maybe now Konami will reconsider launch MGS4 in the X360 :D ?
It does sound a bit unbelievable doesn't it. Sooooo here are a few links
LINK1 (http://www.gamedaily.com/articles/features/sony-reaches-agreement-with-toshiba-to-sell-ps3-chip-production/71062/) - LINK2 (http://www.engadget.com/2007/10/18/sony-sells-cell-to-toshiba/) - LINK3 (http://www.joystiq.com/2007/10/18/sony-sells-playstation-3s-cell-to-toshiba/) - LINK4 (http://www.news.com.au/business/story/0,23636,22611523-31037,00.html)


But Sony isn't throwing the baby out with the bathwater.....just yet
LINK (http://www.smh.com.au/news/Technology/Sony-set-to-sell-advanced-computer-chip-operations-to-Toshiba-official-says/2007/10/18/1192300922941.html)
A new company will be set up in April, with 60 percent Toshiba ownership, a 20 percent Sony stake and 20 percent Sony Computer Entertainment
Still - this is one of their chief competitors.
I guess they can do a development share with Microsoft and hedge their PS3 bets:eek:

[davius]

(...)PS3 is not the only application for that chip you know? (...)

True, but as today it has only been used in mercury systems (very specialized niche) and some IBM servers. To get inside this market, dominated by INTEL and, in a lower level, AMD, the cell processor has a long way to go. In the greater market size (common consumer) cell just doesn't exist. And let's not forget Intel's Penryn/Yorkfield...

Though gotta love posts like davius's. Toshiba sharing cell manufacture = metal gear solid 4 on the 360. It kinda makes sense after a couple drinks I am sure. This thread is very entertaining so far, I might bookmark it soon. :)

Hehehhehe, I know, I know. I've gone too far in this one - almost flaming. Glad the thread is interesting and funny to read - someone must put that extra spice!! :bounce:

[beaker]

Imageworks had been doing well, I thought. Plenty of big shows.!Beowulf and Spiderman are their only big shows in the last year. Their work has pretty much dried up in the last year compared to previous years.

Sony pays their artists fairly high, but they underbid R&H on Narnia to get half the show even though R&H had already bid the show really low. There has to be some serious subsidizing going on over there.

[Bonedaddy]

I thought they also had I Am Legend and some others. Shows what I know.

[gunslingerblack]

i am legend is wb isn't it??

[beaker]

I thought they also had I Am Legend and some others. Shows what I know.yea, they did hat that too, but it and the other shows were really small. At Sony's size they really need 2-3 big shows going at one time to maintain themselves.

[beaker]

i am legend is wb isn't it??Yes but the film business doesn't work that way. Just because it is owned by Sony doesn't mean it is only done by Sony Imageworks. WB animation(which has a vfx unit) does work for other studios all the time, so does CBS digital and a bunch of others. It is all about money and they don't care where it comes from.

Not vfx related but business is the same on television. Shows made by ABC are shown on NBC and shows made by WB are on NBC, etc...

[richcz3]

There was rumor a few months back that Sony Imageworks was moving to New Mexico because of some nice biz incentives. I hadn't heard anything since, but I did a search and came up with this link.
>LINK1 (http://www.bizjournals.com/albuquerque/stories/2007/05/14/daily23.html)<

Sony Imageworks made its commitment official today that it will open an operation in Albuquerque. Its plans call for a 100,000-square-foot facility on the grounds of Albuquerque Studios at Mesa del Sol.

"New Mexico offers a combination of quality of life plus economic advantages that will help us as a company to manage both our cost and expand our capacity," Sarnoff says in a prepared statement.

All this news was well ahead of Sony's PS3 market position and asset sales that appears to be happening now.

[Bullit]

Sony is a too big company and their divisions shot the others often. In Official Sony Vegas forum there are recurrent posts of users that see other Sony Divisions promoting Adobe Premiere for their products and ignoring Sony Vegas.

[NME-Se7eN]

What is good and what is profitable are often two very different things. If these studios are not turning a profit then it's only natural for Sony to look at them and see what's possible. I'd hate to see them lose another MGM but I'm not seeing the numbers or prospects. Another thing to take into consideration is that Sony is a HUGE company. Each branch is concerning themselves ONLY with that branch. One of my favorite examples of this is, as Sony was entering the MP3 arena, two different branches of Sony were creating products to compete against each other. One branch working on flash based solutions, the other converting MiniDisc.

As for PS3, afraid they are stuck with it, not that I mind. I love my PS3. But if PS3 backs out now (especially when they look like they'll have THE best year next year), that leaves PS2 and PSP to defend the homefront while Sony develops PS4 and abandons their userbase. Such tactics leave bad tastes in consumers mouths and reak of Saturn. If Sony can tough out this generation (considering the upswing of media coverage, entirely possible), they could place themselves in a position of success next time.

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