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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This plus Listener Feedback and the Question of the Week, “What is your favorite party game?”

Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.