Little Big Planet To Sell Consoles

Much like Metal Gear Solid 4, Sony is looking for LittleBigPlanet to move consoles from the shelves because all types of gamers are going to want this title. Personally, the desire to want and the stronger feeling of need are two separate problems; everyone will want the game but many will need to buy a PlayStation 3 for MSRP.

Although the prices are slowly dropping for a PS3 unit, hardcore gamers are the ones that will rush out and spend a bundle of money for a console just to play one game. If not hardcore gamers, fans of the franchise (MGS4 for example) and LittleBigPlanet is still working on building a fan base for their new franchise.

The platformer LittleBigPlanet, for many, isn’t worth $399 plus the price of the game. That’s asking a lot, but Sony still thinks it can happen:

It’s going to be a hardware seller. Not only do you have the platforming experience that a lot of other games will have, you have this creativity that really is exclusive to LittleBigPlanet. (kotaku)

Would you run out and get a PS3 for LittleBigPlanet? I’m tempted, but that $399 barrier is truly a large obstacle to clear.

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Australian PSN Restoration DelayedAustralian PSN Restoration Delayed

The Japanese government has not allowed PlayStation Network to be activated for Japanese gamers yet due to security concerns, and now an expert is advising Australia to follow suit.

Professor Bill Caelli told newspaper The Australian, “Why is it that in the IT industry enterprises certify themselves?” said Caelli, noting that PSN didn’t have the same restrictions, and added that the public has “no way of assessing the assurances given by the owners of the (PSN) system themselves”.

Reportedly, Australian privacy commissioner Timothy Pilgrim has been in contact with Sony, and has not judged yet whether Sony has given them enough information to restore PSN. His investigation will be an ongoing one as well, even after PSN is restored.

When it was discovered user information had been stolen during the PSN breach, the Australian federal government announced plans for a law forcing companies to disclose privacy breaches, although it was unclear when it might come into effect. Privacy minister Brendan O’Connor had stated:

“Sony isn’t alone. We’ve seen serious privacy-related incidents in recent months involving other large companies. All companies that collect customers’ personal information must ensure that the information is safe and secure from misuse.”

We’ll stay on this story as it develops.

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?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

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.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?