Sony’s efforts to stay competitive in the 
handheld gaming space have hit a snag following the devastating earthquake and tsunami in Japan.
Sony officials say the disasters may delay the release of their NGP handheld, with the system releasing in just one region of the world this year instead of all three. That could give Nintendo and Apple a chance to cement a solid lead in an increasingly competitive space.
Gamasutra editor at large Chris Morris talks to Sony Online 
Entertainment’s John Smedley about the next generation of EverQuest, NGP development and why “You can bet our future is more console-based than it is PC-based.”
Before Thursday, there was a lot to talk about when it came to Sony Online Entertainment. Then the layoffs hit – and there was only one subject on people’s minds.
Unfortunately, my talk with SOE president John Smedley was held on Tuesday – long before even the rumors of layoffs had begun to swirl. And, not surprisingly, SOE wasn’t making him available after shutting down three of its studios and laying off 205 employees. So while there’s no look as to what led up to the Thursday axings, Smedley was still willing to look into the company’s future in the days leading up to it.
With costs rising and competition increasing, Sony has
laid off one-third of its Sony Online Entertainment division.
205 of the roughly 700 SOE employees received pink slips Thursday as the company shut down three development studios in Denver, Seattle and Tucson. One long-in-development title was also cancelled.
Sony Online Entertainment and THQ are
both handing out pink slips this week.
SOE was hit hard by a devastating round of downsizing that resulted in one-third of the workforce being laid off and three studios closed. THQ cut more than 30 jobs at two of its studios, but both remain open.
Sony Online Entertainment, the one-time leader
in the online gaming space, has been scaled back significantly.
The company has closed three development studios and laid off 205 of its roughly 700 employees amid growing competition in the space and the increasing number of alternate gaming platforms, such as the iPhone and Facebook.
Ten years ago, the thought of a battle
in the portable gaming market was ludicrous. Nintendo had held such a dominant position in the space for so long that it seemed impervious to any sort of challenge.
The field was littered with failed opponents, but things started to get a little more interesting in late 2004, when Sony jumped into the market with the PSP. By the time Apple launched the App Store in 2008, a full-fledged war was underway.
Odds are you’ve got certain days circled on your 
kitchen calendar. A birthday, an anniversary, perhaps the annual family trip to Disneyland — whatever it is, it’s something that happens the same time every year and it’s a day worth remembering.
Turns out the gaming world works in a very similar fashion. While the precise dates are a little more flexible, the industry has an uncanny knack for releasing new versions of hit games right around the exact same time each year.
As recovery efforts continue in Japan after a 
devastating 8.9 magnitude earthquake and accompanying tsunami, the video game industry is rallying to aid in the relief.
Some publishers are reaching into their own pockets to donate, while others — along with select members of the development community — are leveraging their customer base to raise money.
The PSP Go, which shunned physical media 
for a download only model, might not be a roaring success, but Sony’s doubling down on digital distribution as it prepares its next generation handheld gaming system.
The head of Sony Computer Entertainment Europe says that every game on the so-called NGP (Next Generation Portable) will be available to buy as a download the same day the physical game appears on store shelves.
With a weak slate of titles, February is shaping 
up to be another negative month for the video game industry.
Analysts expect game sales, which will be announced by the NPD Group after the market closes Thursday, to be significantly lower than the 2010 figures, as publishers once again had a lack of new blockbusters in the pipeline.
Chris Morris: Journalist 