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)

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 647: AdvertisingEpisode 647: Advertising

[This episode has been re-uploaded due to technical issues]

This week’s is pretty short, featuring a Sonic the Hedgehog and Halo discussion before delving into what’s okay and what’s not okay with in-game advertisements. The Gaming Flashback for this episode is the tripping Journey.

The news includes:

  • PlayStation wants ads in its games, too
  • Bugsnax leads late April Xbox Game Pass line-up
  • Amy Hennig is taking another shot at making a Star Wars game

Let us know what you think.

Episode 722: Off the RailsEpisode 722: Off the Rails

[This file was corrupted and re-uploaded.]

Podcast notes:

  • Sony backs down on demand that Helldivers 2 players log into a PSN account
  • Microsoft announces Xbox Games Showcase and mystery Direct for June 2024
  • EU rules iPadOS must comply with Digital Markets Act, opening door for Fortnite
  • Hades 2’s surprise early access release already has more stuff in it than the first game
  • Square Enix announces it’s tanked $140 million in losses due to “content abandonment”

Feel free to leave feedback.

2008: The Year of Sequels? Too Much Risk?2008: The Year of Sequels? Too Much Risk?

While compiling a list of games to respond to a user question on the TD Gaming Podcast, I’ve noticed something about this years gaming lineup: their mainly all sequels! Are there any new franchises taking a risk in the market or just more of the same? Some are not really “sequels” but spin-offs of the same franchise.

A few examples of some October time frame titles: Fable 2, Far Cry 2, Gears of War 2, Rock Band 2, C&C: Red Alert 3, Saints Row 2, Rayman Raving Rabbids 3, Tekken 6, Call of Duty 5, Guitar Hero World Tour, Tom Clancy End of War, Sing Star Vol 2 and others.

There are a few original titles: Afrika for the PlayStation 3, Little Big Planet (PS3) and Huxley (360 and PC). Most of the original franchise creations seem to be PlayStation 3 related, probably because the console needs some major hits to spur more sales.

Is the market so competitive and risky that new franchises are becoming a rare breed? Last year we saw Assassin’s Creed and before that Viva Pinata and Gears of War exclusive on the Xbox 360. Consider Viva Pinata a “slight” failure in terms of excitement and Gears of War a success, that’s 50/50 in terms of risk vs. reward.

(more…)