Sony’s Software Development Beta Projects

It seems we’ve seen a lot of great concepts from Sony for their PlayStation 3 product line but very little has managed to hit the software virtual shelves. We’ve heard of Sony’s Afrika for the PS3 back at E3 in 2006 and we’re looking at it for 2008’s holiday lineup.

We’ve heard about Sony Home for years as well, but that’s now in some type of beta. It was supposed to be an open beta but that didn’t seem to work out and now it’s closed beta only. Recently they pushed out a firmware update that bricked PlayStation 3 consoles or at least screwed up many of them in varying levels.

Are they just really bad at software development and road map predictions? As a hardware development company they’ve put out some hardcore products, stone cold stable in terms of design and efficiency from the Walk Man to the PS3. Their products are practical in design, for the most part, fairly pretty, stable and function as designed. Yet they come up short on software time and time again.

One of the contributors at 2old2play had some things to say about Sony’s development efforts:

“Having worked at Sony as a Creative Designer two years ago, it doesn’t surprise me that they have still yet to release Home. While there, I was working on their Station Launcher application which was supposed to be released in late 2006. However, the Launcher app is still only in Beta to this day.” (2old2play.com)

In many ways their the anti-Microsoft in their approach and commitments. While Microsoft ships hardware that has what must be a 60% failure rate Sony ships hardware which works fairly well. On the flip side, Microsoft publishes a large quantity of software for all their products and has done very well in the business. Nobody can say it’s 100% perfect but it tends to get better with age or, at least, grow on you.

The difference? As long as our Xbox 360’s stay running we’ve got plenty of great firmware features, Xbox Live community options, online gaming that rarely goes offline and an exciting lineup of games. Now, Microsoft pokes fun at them by providing a fall update feature list which splits the features of Sony’s Home and Nintendo’s Mii system.

Interestingly, one fo the things Microsoft proves strong at is prioritization of their feature “todo” list. While some feel the PlayStation 3 console has some nice features that are 80% finished, the Xbox 360 has less features that are 100% at completion. They’re now going to have the ability to install to the hard disk, a feature PS3 has had since its inception we believe, but what’s more important? Installing to a hard disk or inviting friends to play your game while in game and send them requests to play.

Microsoft puts community features first with a slight handful of optimizations and then back fills their feature list with further optimizations and “nice to have” features around a strong core set. And, for the most part, the features function as designed and rarely require ugly patches on the patches. They’re also set to allow Netflix movies to be downloaded on their product, another great to have secondary feature after their stable core has been established.

Perhaps Sony simply announces product lines too quickly when they still require a great deal of baking or perhaps they’re just a really good hardware company with flaws in software release and roadmaps. This could be a great difference when looking at the future of the potential console war victor.

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Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

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The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

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