Sony starting price cuts with employee wages

Recession, recession, recession. Whisper it and it sounds like the creepy background music when Jason Voorhees is about to kill someone. In this case its killing raises and bonuses as Sony tries to improve profitability. Sony is reporting a record loss for the company this year, expected to be around $2.65 billion. Still think we’re going to see those PS3 or PSP price cuts?

The cuts begin in April as a freezing of all raises, which would have been awarded based on performance. “This time we decided to keep the workers’ salaries unchanged,” said Sony spokeswoman Mami Imada. Bonuses for everyone are being cut back as well with annual compensation for managers cut back 10 to 20 percent and bonus cuts as far as 35 to 40 percent.

This is certainly sad news, but at least it isn’t a pay cut or a pink slip. Sony Computer Entertainment Europe stated that their division will not be affected by this pay freeze. A spokesperson explained that “there is no plan at this time to change this payment system. However, in order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world.”

Maybe some of those changes should be a price cut, enabling the rest of us to run out and buy those beautiful black boxes and rocket their sales. Then, once the prices are right, they can take Media Molecule’s advice and focus on those casual gamers. You know, the ones currently playing the cheapest (let’s exclude the Arcade here) and fastest selling system.