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Sony cutting suppliers by half to save $5.3 billion

In a move undoubtedly aimed at preventing any further losses, Sony corp. plans to cut its manufacturing suppliers by more than half. MCVUK reports the company will be whittling down its 2,500-strong suppliers list to just 1,200 by or before 2011. The restructuring will cut costs by around ¥500 billion ($5.3 billion).

While this is a big change for the company as a whole, it's uncertain how Sony's Computer Entertainment division will be affected. In what ways could this whole business of slimming down impact SCEA, or the PS3 for that matter?