The current global economic downturn has taken its toll on one of the big three console manufacturers, Sony Corp., who said Tuesday that it will be slashing 16,000 jobs.

No information was released by Sony on what divisions would be impacted by the job layoffs. However, Sony Computer Entertainment, (SCE) confirmed to GamesIndustry.biz that the Playstation division would be under review by Sony for potential staff and budget cuts.

"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," an SCE spokesperson said.

The job cuts, made in tandem with cost-cutting measures, will save Sony an estimated $1.1 billion a year.

While the cuts might seem substantial, many financial analysts believe that more job cuts will be coming from the Japanese manufacturer.

“The number sounds big, but this staff reduction won’t be enough. Sony doesn’t have any core businesses that generate stable profits," Katsuhiko Mori, a fund manager at Daiwa SB Investments, told Reuters.

In tough economic times, the items that have generally been hurt the most are durable goods. (Televisions, appliances, automobiles, etc.) Unfortunately for Sony, their core business model revolves around durable goods such as TVs, computers, cameras, and of course, the Playstation 3 and PSP.

The effects of the job cutback will not be fully felt for months, if not years. In the meantime, Playstation 3 owners will have to hope that Sony executives don’t believe that SCE is worth downsizing.