As the U.S. economic crisis continues its downward spiral, it's no surprise that the financial crisis should also be affected worldwide.
Japan's economy is no exception.
By 2010, Sony will cut 8,000 jobs, or 4 percent of its global work force. Its focus is to reduce its overhead by $1.1 billion annually.
To further cut costs, several plants will be closed; investments in electronics will be cut by 30 percent; and some of Sony's work will get outsourced to lower-cost countries for electronics production.
What makes Sony so susceptible to this global financial crisis is that 80 percent of its sales are generated from overseas, and the yen is very strong, whereas the U.S. dollar, for example, has plummeted.
This could affect the production of the PlayStation 3. Sony's electronic division currently has 160,000 employees, but has plans to slash 8,000 temporary jobs by 2010, as well. It has even modified production and decreased its inventories.
With Sony outsourcing some of its production soon, do you think the quality of its goods may be in jeopardy? With such drastic cuts in electronics, how is this going to affect the PS3?