Executive Says Sony Layoffs not Related to PS3

Wednesday's reported layoffs at Sony Computer Entertainment America may have served as another wakeup call to the company's current struggles in today's gaming market, but SCEA communications chief Dave Karraker denies that the PS3's third place position in this cutthroat console war was the major impetus behind the company's decision to downsize. In a recent statement posted on Next-Gen.biz, Karraker confirms the company's previous statements, blaming the layoffs on a changing industry.

"This move is not wholly related to any one product in our portfolio," Karraker wrote. "More accurately, it is reflective of shifts in the marketplace and in consumers' wants and needs, such as the rise of digital content delivery and networked services. In order to maintain our market leadership, the management of SCEA has found it necessary to analyze the business and restructure the company as necessary."

This statement echoes similar remarks made by SCEA's parent company, Sony Computer Entertainment Inc. According to a previous GamePro report, SCEI spokesman Satoshi Fukuoka also attributed Sony's mass redundancies across Europe to the company's attempts to streamline its operations and adapt to new changes in the market.

Although Fukuoka correctly predicted at the time that SCEA could potentially experience layoffs, he also said the same for Sony's offices in Japan. Not so, says company spokeswoman Sayoka Henmi, who addressed the media today in Tokyo. According to a recent AP report, the SCEI rep stated that no job cuts are currently in the works for the company's headquarters in Japan.

"The goal is to reform the organization," Henmi stated.