Sony to Close PlayStation Chip Factory

Sony_Semiconductor_Oita_Technology_Center

It’s no secret that, despite the success of PlayStation, most divisions in Sony are hurting. While their TV business has seen an uptick in recent years, it’s still following a decade of losses which isn’t an easy trend to erase. Mobile has also been disappointing to say the least for Sony where they accounted for less than 1% of smartphone activations in the US during Q4 2014. To focus their business, Sony has been selling parts of their business they no longer see relevant like VAIO and shutting other divisions like Music Unlimited. Just yesterday Sony also announced the sale of Sony Online Entertainment, the studio behind EverQuest and PlanetSide to name a few. On the heel of those announcements, Sony has revealed yet another closure and this time, it hits at the heart of the PlayStation nation.

Let’s talk details after the jump.

In a press release, Sony announced the closure of the Japanese Sony Semiconductor Oita Technology Center (A.K.A. Oita TEC), based in Kunisaki, Oita Prefecture. While the name is a mouthful, what it does is help to power the PS3. Specifically, the plant which previously was a production site for memory chips is responsible for the Cell and RSX chips which are at the heart of the PlayStation 3. According to Sony, they made the decision due to a

 changing business landscape 

The plant is expected to cease all operations by the end March 2016, a decade after the launch of the PS3. While I hate writing about closures, due to the real world ramifications (i.e. job losses), this story luckily has a better ending. All 220 employees will be transfered to other Sony plants, resulting in no job losses. For those fearing the end of PS3, despite a slow down in demand, thanks to the excellent performance of the PS4, we’ll still likely see the PS3 on store shelves for years to come. Even if the factory were to be closed next week, Sony likely sits on a stock pile of PS3s and even more chips which will ensure a steady supply. It remains unclear if any other factories are currently producing the Cell processor or if Sony’s Oita Technology Center is the only one of its kind.

Discuss:

If the PS3 disappeared from store shelves this year, would you miss it?

[Via Sony]