Sony, What Doesn’t Kill Them Makes Them Stronger

David Reeves, Sony Europe’s President said, “we simply have to suffer a little” when talking about the PS3, Europe and the competition. He was talking specifically about Sony’s loss of market share, mind-share and overall performance in the latest competitive console arena. While Sony’s president dismisses Nintendo as in a separate market, David Reeves said, “we’ve learned from Nintendo how to grow the market and move from hand-held device to device – they’ve done it brilliantly.”

Buster Douglas Takes Down Mike TysonWhat Sony may be dealing with is the fact that they’re not top dog in the latest battle for consoles. Europe has taken to the PlayStation 3 better than the United States and they’ve got plenty of fans in the region. There has been a recent upside to it all, some light at the end of the tunnel:

“PS3 games sales are up 53% and there’s a healthy 1.1m pre-order book for Killzone 2, the first of a new batch of IPs that Sony will be counting on.” (guardian.co.uk)

Although it’s reported the PSP says are down 15% and PS2 software sales are down 51%, at least the PlayStation 3 is filling in the gap for some of those losses. At some point you’d expect the PlayStation 2 to decline, gamers are probably migrating over to the new hardware.

They’ve got some things to be proud of:

  • PlayStation Network increases revenues by 200% in 2008
  • 55% of all PlayStation owners are on PSN
  • 17.5 million PSN subscribers
  • 53% rise in software sales on PS3
  • Won HD format war

Unfortunately PS3 sales were down last quarter by about 9%, perhaps a response to the harsh economic times. And, of course, the fact that Sony’s VP’s are constantly defending their position in the market is a bit disconcerting. As David Reeves said:

“It’s like Ali v Foreman – go eight or nine rounds and let him punch himself out. We’re still standing, we’re still profitable and there’s a lot of fight in us. I don’t say we will land a knockout blow, but we’re there and we’re fighting.” (guardian.co.uk)

Sony is playing the defensive, guarding themselves against the punches of the competition. Nintendo making headlines for sales, Microsoft coming out of nowhere to try to build market share, while Sony holds out for the tenth round to win it in the end? We’re not yet sure if it’s Ali vs. Foreman or if Microsoft is the next Buster Douglas.

(Thanks, Guardian)

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Wii Takes US Lead In Console WarWii Takes US Lead In Console War

Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?

This months sales figures for consoles broke down something like this:

  • Nintendo DS: 783,000
  • Wii: 666,700
  • PlayStation 3: 405,500
  • PSP: 337,400
  • Xbox 360: 219,800
  • PlayStation 2: 188,800

Barring the crazy hand held sales of the Nintendo DS, you can clearly see Nintendo holds top-spot yet again, but this month Sony’s PlayStation 3 followed right behind. Although there was a good 200,000 difference, Sony didn’t do so bad; imagine if Nintendo had an MGS4 killer app?

Metal Gear Solid 4 sold 871,300 copies, individually, and roughly 1-million if you include those bundled with the PlayStation 3. The question is clearly answered, MGS4 helped sell Sony’s consoles. The new question will be: Can Sony keep the 2nd place rank against Xbox 360?

Until Gears of War 2, there isn’t a killer game for the Xbox 360 and GoW2 probably won’t move any consoles, those that love the series bought their console when Gears of War arrived. The next big console mover may, in fact, be Final Fantasy XIII for the Xbox 360 as it’s no longer exclusive to Sony and the 360 is a more cost effective way to get into the game.

How does Nintendo continue to keep the pace? Perhaps because their games are still in top positions with Wii Fit in 4th place, Wii Play in 5th place and Wii Kart in 7th on the June 2008 software charts.

(Thanks, 1up)

Eidos and Square Enix Birth Great ThingsEidos and Square Enix Birth Great Things

tombraiderEidos was founded in 1990 and has been the king of its own destiny since its inception. As part of Square-Enix, Eidos and its destiny were called into question, would they continue to run the show or would they become one with Square-Enix. Square-Enix has come out to say they’ll be leaving Eidos to themselves and allow creativity to flow between the companies.

“This is an exciting beginning to what I believe will be an incredible journey. I am very happy that Phil Rogers has agreed to lead Eidos in what I see as an international marriage between our two companies, a marriage that will give birth to great things. Eidos is a content rich company and a culturally significant business to the Square Enix group.” (kotaku)

Square-Enix is playing it safe with this acquisition because this isn’t a great enviroment for shaking things up internally within a development studio. Eidos is well known for Tomb Raider, Hitman, Deus Ex, Thief and many other great projects and have built a solid foundation for the future.

A mind-share between these two groups is a powerful enemy to the competitors if they’re able to open a good dialog between the two companies and share resources, tools and engines. In a world of cost savings and salary cuts, leaning on each others resources to build a better product is a win.

At least we won’t have to call them Square-Enix-Edios because that’s just a mouthful!

Tecmo Declines Square Enix PropositionTecmo Declines Square Enix Proposition

Square Enix, like many developers today, look to combine their efforts with like-minded individuals making video games for our industry. Recently they put out a bid to pickup Tecmo and expand their development archive to new heights by jumping into a few more genre’s without starting at the ground floor.

Tecmo, has decided to opt-out of the friendly bid for the company and has decided to persue a merger with KOEI instead. Square Enix could opt for a hostile take-over bid, much like we’ve seen occur to others in the industry but their smarter than that, Square Enix President Yoichi Wada went on record saying:

“If they truly dislike Square Enix, there is no point. All creators would leave the firm the moment the deal was done. It would be the equivalent of buying a building.” (reuters)

Although Tecmo hasn’t spit upon Square Enix and said they “hate” them, declining the take-over bid explains a lot about the direction Tecmo plans to go, and those plans don’t include Square Enix.

It would have been interesting to see what direction Square Enix would take with Tecmo. Perhaps Square Enix will look to another development company to bid on.