Sony Should Buy Ubisoft and Here is Why

Sony’s been putting a lot of effort (read: money) into the PlayStation 3 product line with very little impact in the market. They’ve got this “10 year plan” but haven’t really executed a strong plan for their first two years of said plan. Sony’s plan seems to be “outlive the competition’s technology” while all of its competition stomps on their sales and market share with older and a bit “outdated” products.

Thus far there have been five spins of the PlayStation 3 hardware with price cuts only coming as a result of a “fire sale” of old hardware revisions. Sony, like many, believes the Nintendo Wii isn’t a direct competitor in their space; the outstanding sales of the Wii probably haven’t impacted the PlayStation 3 sales too much. The Xbox 360, however, has definitely cut them deep in all regions of sales.

Microsoft has built some unexpected momentum in Japan with Square-Enix making them a few console seller titles and the price cuts in Europe boosted sales over 200% all while the US continues to buy into the 360 hardware despite its most obvious red-ringing flaws. Microsoft has great partnerships with some fabulous companies, Bungie and Epic for instance, to build them exclusives that move even more 360 units.

Motorstorm is one of the PlayStation 3’s best games, selling over 3-million copies. While, as of January 2008, Halo 3 sold 8.1 million units for the Xbox 360. Now, Metal Gear Solid 4 has sold roughly 3.94 million copies since August of 2008 yet unsubstantiated rumors exist stating MGS4 could make its way to the 360. Combined awesome titles for the PlayStation 3 may not even exceed one of the competitors best selling products; where is the PS3 excitement?

Little Big Planet, Rachet and Clank, Resistance 2 and, someday, Massive Action Game (MAG) could produce some buzz around the PS3. By far, Little Big Planet has been the gold nugget Sony has been looking for and was published by Sony so they’re able to take full glory of this might-be console mover. What else do they have up their sleeve?

One or two blockbuster titles would compete well in a smaller market like last generation, but with Microsoft dragging in huge sales in all regions, Sony is going to need a real momentum killer. They’re already stating we’ll have no price cuts in 2008 leaving us asking, “why am I going to invest in a PlayStation 3?” Sony needs to figure out a long term battle plan and that involves blockbuster game titles which cannot be played on another console.

If Sony is willing to throw money out the window to keep the PlayStation 3 alive in this competitive market, why not spend it on their future? With a 10-year plan in place, that plan should involve picking up a company like Ubisoft. Ubisoft is a well respected public developer and publisher founded in 1986 and now consists of many well established smaller studios whom they’ve picked up along the way.

Ubisoft has some huge titles, Assassins Creed, Brothers in Arms, Ghost Recon, Splinter Cell, Rayman, Rainbow Six, Driver and has published many great titles for smaller studios. Imagine a Heroes of Might and Magic exclusive on the PlayStation 3 or a graphically intense exclusive Prince of Persia. Sony could steal titles away from the Wii such as Rayman and all his raving rabbids. Even 30% of these popular titles, being produced as exclusives for the PlayStation 3, could turn around this console.

Sure, Sony could pay for console exclusives on a handful of these great titles but, at this point, they’re going to pay out the nose to try to hold even a timed exclusive considering how many of these titles would arrive on the 360 in order for Ubisoft to recoup development costs for such a small PS3 audience.

Could Sony drive Ubisoft into the ground by limiting their exposure in the game industry to a single console? Indeed. There is always room for fatal errors when acquiring talent and executing them against your own 10-year plan. It would have to be a very aggressive attack with a very strong plan of execution in order to turn titles around on the PlayStation 3 in fast succession and with large PR hype.

Sony has shown they are willing to spend endless amounts of money all while turning their cheek to the obvious 360 domination. Why not take some of that money and re-invest it in the future of your 10-year plan by buying a company like Ubisoft before someone like EA does it first. With the huge market decline and the US bringing down the global economy, times may be ripe to grab a company and grow them to your own.

The real question would be, could Sony hold the talent at Ubisoft if they were to be purchased by such a large company with a sub-par sale standard console? Throw more money at the problem and bribe the talent to stick around for a few years and perhaps you’ve got a plan.

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Sony’s E3 Conference: Fairly ImpressiveSony’s E3 Conference: Fairly Impressive

We’re all used to Sony falling on their face at E3 in the last few years, but, this year, things were different. They’re information was delivered well, they had a great presentation medium using Little Big Planet‘s game engine as a presentation platform over the standard PowerPoint slides and everything went smoothly.

The format for displaying their facts, figures and sales numbers was well played. Nobody wants to sit in front of a chart and listen to an executive blab on about what they did and where they’re going. But, when you add some Little Big Planet flair, such as having the graphs built within their game engine and Sack Boy hopping around on the statistics things smooth over well.

I was confused on why they chose to display the Little Big Planet graphic engine followed by Resistance 2 and then taper into talk about the PlayStation 2 with game previews. It seems more appropriate to bring in the PlayStation 2 product line first, then blow the crowd away with the current generation graphics. Instead, we were awed by the epic Resistance 2 graphics and then presented with old generation stale game engines… silly.

They went on to show off the wide array of PSP games arriving and a little trailer for Resistance Retribution for the PSP. The game system is definitely more mature than their DS competitor but seems to have a bit less sales momentum.

Overall, Sony did one right by talking about their three tiered solution to gaming instead of focusing too much on a single system. PlayStation 3 numbers are good but not mind boggling (like Wii) and their PSP product is doing much better than it used to and the PlayStation 2 numbers are high but falling compared to last year (as would be expected).

By focusing on the full suite of products they’ve put their eggs into many baskets rather than rely on their bleeding edge flagship product which still needs time to grow.

Well done Sony.

Sony’s PS3 Real 10 Year Plan: Home Entertainment TakeoverSony’s PS3 Real 10 Year Plan: Home Entertainment Takeover

The PlayStation 3 is the slow seller in the United States but Sony still holds belief in their “10 year plan.” Many of us consider this to be the same style of plan Sony used with the PS2, sell your console through multiple generations and own the market share. The PS2‘s launch was much more graceful when compared to its 7th generation counterpart. Perhaps the PS3 has a different destiny… perhaps they want to remove all other media boxes from your living room.

Imagine a life without a cable box or Tivo and you’re probably envisioning Sony’s road map for a media distribution empire. First, remove Tivo from the situation with a DVR style box using their PlayTV technologies, wired up to the PlayStation 3 using a USB connection. The United States hasn’t seen a launch of PlayTV, more than likely because the PS3 isn’t a huge console here yet and Tivo is partnered with many cable and satellite providers already.

Senior director of the PlayStation Network, Susan Panico said Sony “looks aspirationally at HBO, the way they have Sex and the City and other shows” (gamespot) after admitting Sony wants to replace cable boxes in the home. Tivo has already done a great job removing the need for a cable box, allowing you to rent a “cable card” to insert into a Tivo and gain access to all their content for your DVR needs. DirectTV offers (or has in the past) a Tivo or Tivo-like DVR solution. Cable and DirectTV offer the ability to rent their DVR or offer a solution to purchase your own at a retail outlet What if Sony decides to partner with one or more of these providers to offer an all-in-one solution. PS3 owners wouldn’t have to purchase additional equipment and could be up and running immediately with hard disks big enough to handle HD content.

Sony could offer you a graphically appealing gaming experience, a high definition BluRay solution, media distribution for renting movies, an iTunes style online store for purchasing and playing music all wrapped up in a DVR solution. All this content for a $400 price tag is a value when all the offers are combined into one tiny black box.

Looking at today’s Tivo Series3 HD DVR you’ll notice the ability to play music directly from iTunes, browse and play Youtube shows, watch Disney offerings and even high definition NetFlix playback. The Tivo DVR’s can also talk with other DVR’s in the household making it easy to share TV records across systems. The only thing missing in the Tivo solution is a high definition gaming platform and the BluRay hardware.

We’re all sitting here poking fun at the small PS3 game library and telling people that BluRay is going to lose out to HD downloads yet we may be missing the bigger picture: an all-in-one media empire solution. The PS3 may not carry the largest game library compared to the Xbox 360 or the sales records of the Wii but if Sony finds a way to become a reliable and required media set top box they may realize their true “10 year plan.”

PlayStation 3’s Wireless Keyboard AttachmentPlayStation 3’s Wireless Keyboard Attachment

This is a prototype of the keypadSony’s done it, they’ve announced a wireless keyboard adapter to plug onto the stock PlayStation 3 controller. This isn’t the first time we’ve heard of this, Microsoft pushed out a keyboard for their Xbox 360 controller last year to provide faster chat abilities and, overall, smooth the interface when needing to type.

Now, Sony’s following up with a few more advancements, “the wireless keyboard also features a touchpad mode to allow for mouse input. David Reeves, president of SCEE, said that this touchpad control mode may be used in future game development.” (kotaku)

Is there any chance our next-generation consoles will be more “PC like” out of the box? With these complex user interfaces featuring web browsers, online marketplaces and areas to enter your credit card information (and addresses) you’re really heading towards needing this type of interface. Now, they’re all starting to include chat and messenger services making it more important… if it catches on.

Perhaps the next console hitting the market will come with a keyboard as an in-the-box solution. Please note, the above image is Sony’s prototype image.