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SCEE: Job Cuts Won't Hit PlayStation

SCEE: Job Cuts Won't Hit PlayStation

December 17, 2008 | By Leigh Alexander

December 17, 2008 | By Leigh Alexander
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More: Console/PC

Recently-announced layoffs across Sony won't affect the company's PlayStation division, says Sony Computer Entertainment Europe president David Reeves.

Plagued by what analysts say are problems with its operating structure and high costs, Sony recently said it would cut 8,000 employees -- about 4 percent of its workforce -- with the aim of saving $1.1 billion dollars. The company suggested at the time that it might "carefully review and make structural changes" surrounding the PlayStation business.

But speaking to Dutch TV station RTL, SCEE's Reeves now says that the division has "half of our personnel" in game development, calling it an "investment."

"We're not scaling back at all," Reeves asserts.

Although Reeves acknowledged that the recession is affecting the video game business, he also said innovation is the core of the company

"Sony live and die on the innovative projects they bring out," Reeves says. "In our division, we're still continuing to develop the products which we put in our mid-range plan six months ago, one year ago."

"As long as we plan prudently, I think we will be fine," he adds. "We have a good business model. People will continue to buy the hardware, continue to buy the software. I'm convinced of it."

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