Sony Says Competition is Good

It seems the console maker who’s trailing in sales typically says how great competition is and how it’s great for the consumer. Sony’s not leading the console race, as of now, and Sony Computer Entertainment Europe president David Reeves stated in a recent interview:

The winner, he said, is the consumer. “That’s why we are not going to slag off Microsoft or Nintendo at all,” he said, “because again it’s rather like the trainer market: one year it’s Reebok, next year it’s Nike, and then suddenly it’s Adidas; it’s cyclical, but in the end everyone wins in five to ten years.”

Sony continues to speak towards their “10 year plan” and how they’re increasing momentum in the market. They’re not winning in sales but with a ten years to go, this is just the beginning. Had this statement come from Microsoft it would be a chance to worry, but Sony has proof to backup their statements.

The PlayStation 2 is going strong as a nine year-old and doesn’t seem to be letting up in game releases. Sony’s press conferences always cover the PlayStation 2 in their talks with the PSP and PlayStation 3 for three big reasons: it’s worth bragging about, it distracts from lower PS3 sales and it separates them from the competition.

Where is the GameCube or classic Xbox in Nintendo and Microsoft’s press conferences and number crunch reports? The fact is, the companies have given up on both products retiring them as “last generation” (translation: poor sales). What better reason to buy a PlayStation 3 than knowing the company is in the game for the long haul?

It might be bit cheaper to buy an Xbox 360 but who’s to say Microsoft isn’t going to announce their next generation console tomorrow and kill off the Xbox 360? Obviously, Microsoft will deny those claims but there will always be doubt without a proven track record.

On the other hand, Microsoft hasn’t seen the success in the classic Xbox and Nintendo hasn’t seen nearly the fervor over the GameCube as compared to their current generation consoles. So, that begs the question, why would they halt all that for new console announcements?

Until they’ve had more time in the market, we cannot be 100% certain what Nintendo and Microsoft are going to do when it comes to next-generation announcements while Sony’s been very clear in each press conference. As Kaz Hirai said to Eurogamer earlier:

“We certainly don’t do the consumer the disservice of basically saying that the consoles have gone by the wayside because we have a new one. Right now, a prime example? PS2 is nine years into it. Where’s the Xbox? Where’s the GameCube?”

If one console maker is looking for a way to stand out and explain their slow sales figures, Sony’s got the PS2 and its long history in their back pocket.

Now, if we could only get those game designers to continue to take it seriously and not put all their eggs into the PS3 basket.

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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
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  • 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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