Posts Tagged ‘PS3’
For those of you that have any interest in this kind of thing, Sony Europe boss David Reeves stepped down recently and was succeeded by a fellow called Andrew House.
This year’s E3 was House’s first as president of Sony Europe, so it’s unsurprising that he wasted no time in chiming in with a typically brash Sony-style sound-bite when Edge Online interviewed him at the event.
EDGE: What are the key battlegrounds, as we go through the ten-year cycle, on which Sony will engage Microsoft? Is it encouraging people that have bought Wii into HD gaming?
Andrew House: I think you’re absolutely right. If you look back at previous lifecycles, like PS2 versus N64 [sic], we have lots of data that suggests that lots of people bought into N64 as their entry level gaming device, and were happy to upgrade to a more powerful machine later in the life cycle when the price point was right for them.
I think we’re going to see this later on PS3, and the fact that it’s a Blu-ray player as well and that there’s a [greater] wealth of network based experiences than are perhaps available on the device they already have will add to the proposition. I think that will definitely be a factor in the marketplace.
So there you have it. Better start saving those pennies because according to Sony, you WILL be buying a PS3 soon – even if you don’t know it yet.
Yes, House gets paid to say this kind of crap.
I hope he has spare batteries for his crystal ball. It may be a spell before his hope becomes reality.
Somewhere in Japan, Shigeru Miyamoto and Satoru Iwata are clinking together crystal glasses of premium liquor, adjusting their monocles and belly-laughing until their top hats fall off.
They have reason to be merry in this economically depressed holiday season: NPD reported last week that Nintendo made off like bandits in November, selling 3.61 million pieces of hardware in North America. The impossibly popular Wii sold 2.04 million units alone, twice the amount it did last November, when the economy was robust.
Meanwhile, that other Japanese gaming giant, Sony, suffered through a miserably disappointing month: Its flagship console, the Playstation 3, sold only 378,000 units, fewer than half the number of the second place console, the Xbox 360. This was supposed to be the flagging console’s breakout year; instead, after last month’s debacle, Sony executives have to be wondering how things turned so bad.
Sony’s poor performance is certainly not due its game library…The PS3 has boasted unmatched technical sophistication since its release, but it was only recently that those claims bore fruit attractive enough to demand the attention of hardcore gamers.
Instead, much of Sony’s poor performance has been to attributed to price. Former Sony Executive Ken Kutaragi infamously urged people to “work more hours” to afford the PS3’s bloated price tag; instead, consumers have decided to ignore the console altogether.
While Sony never really had a chance to grab the insanely lucrative casual market away from Nintendo, the company bungled away its chance to win the hearts and minds of the American hardcore by refusing to lower the console’s price beyond $399. That’s far above the price threshold of the two groups crucial to a console’s success: cash-strapped college students and Christmas shopping parents.
I’m not a gamer; but, I would have to be more thick than a Bush Republican to ignore the reality of what gaming hardware [and sometimes software] contributes to the health and development of computing. I hope Sony hasn’t shot themselves anywhere higher up than the foot – and wait and watch for marketing sense to return to the venerable giant.
According to industry veteran Dave Perry, Sony has lost more money selling PlayStation 3s than it made selling PlayStation 2s during the entire five years of its peak. So basically, all of the money Sony made on hardware last generation — it’s already spent more to sell the PS3 at a loss so far. Some estimates put that loss at $3 billion.
Of course, videogame manufacturers typically follow the Gillette razor blade model and sell their hardware at a loss (at least for the first few years) only to recoup the costs on software. (Nintendo’s Wii is an exception — it’s estimated that even out of the gate Nintendo has already been making $40 per console). But Sony’s PS2, the best selling videogame console of all time, was making a healthy profit on each unit sold as of a few years ago. Seemingly all of that went to fund the PS3 hardware that Sony has been selling — and for the foreseeable future will continue to sell — at a loss.
Perry didn’t use this point to take any particular stance on this console race — though he did state that DFC Intelligence puts the Wii as the victor this generation, with the PS3 coming in first in terms of overall software sales — but he did want to point out the extreme investment Sony is making in its hardware this generation. He (and DFC) predict Sony will extend this generation even longer than the PS2′s because of this. Of course, the Xbox 360, especially considering its $1 billion in replacement costs for faulty hardware, has likely cost Microsoft just as much, if not more.
Phew! None of this sounds like a healthy business model to me.
Like a biblical litany, Sony has repeatedly recited a list of games that it believes will make 2008 the year of the PlayStation 3. However, the company will need more than a good year to climb out of the hole it’s in with the console.
The PS3 has cost the Japanese electronics giant $3.3 billion since its launch in late 2006 because of “strategic pricing” under which it sells the console at a loss, according to the annual report filed by Sony with the U.S. Securities and Exchange Commission. “Even if the platform is ultimately successful, it may take longer than expected to recoup the investment, resulting in a negative impact on Sony’s profitability,” the report said…
The year may not even be at the halfway mark, but Sony’s luck will have to change if 2008 will end up the year of the PS3. It will now have to rely on its cast of anticipated holiday hits, such as Resistance 2 and LittleBigPlanet, and the launch of Home, its oft-delayed virtual online community, to drive sales.
There’s always 2009. So they say.