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PlayStation division under review as part of corporate changes

Sony Computer Entertainment responds following plans to cut 8000 jobs

Sony Computer Entertainment has confirmed that the PlayStation division is currently involved in the review affecting the wider Sony business

Sony announced this morning that it will axe 8000 jobs and reduce investment in manufacturing, although SCE would not detail whether those cuts will have a direct affect on the PlayStation group.

"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," said Sony Computer Entertainment in a statement.

Sony said today that its electronics division has been affected by the current economic downturn, and it plans to downsize or withdraw from "unprofitable or non-core businesses."

However, some believe the announced measures won't be enough to help the company, with one analyst stating that Sony needs to prove which parts of the company are going to achieve profits in the future, rather than reduce headcount.

"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, fund manager at Daiwa SB Investments, to the BBC.

"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company."

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