Sony Computer Entertainment America to Cut Up to 100 Jobs

Authored by Mark Hefflinger on June 7, 2007 - 10:27am.

Tokyo - Facing mounting losses related to the PlayStation 3, Sony Computer Entertainment will lay off up to 100 employees at its U.S. unit in Foster City, Calif., Kotaku.com reported on Wednesday.

The company officially announcing the layoffs on Thursday, adding that restructuring may also occur at its Japanese headquarters.

Sony Computer Entertainment employs about 1,500 in the U.S. and 4,500 worldwide.

"We are taking another look at the company as a whole," Sony spokeswoman Nanako Kato told Reuters.

The division posted a loss of $1.91 billion for its fiscal year ended March 31, credited to launch costs for the PlayStation 3.

The console has so far fared poorly in sales when compared with Nintendo's Wii and Microsoft's Xbox 360, likely a result of the device's $599 price tag.

In Japan, the Wii outsold the PlayStation 3 five-to-one in May, according to Enterbrain, while both the Wii and Xbox 360 are outselling the console in the U.S.


Related Links:
http://kotaku.com/gaming/industry/lay+offs-hit-scea-hq-today-266292.php

http://news.yahoo.com/s/nm/20070607/tc_nm/sony_job_cuts_dc_5 (Reuters)



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