Rock and a Hard Place: Sony’s Japanese Dilemma

September 25, 2008| schommer| 0 Comment| 12:33 pm

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What a dilemma it is, Sony’s PlayStation 3 isn’t as hot as the Nintendo Wii in Japan. Even the Xbox 360 has had some minor success stories in Japan while Sony sits back saying “wtf?”

President, SCE Worldwide Studios, Shuhei Yoshida is pointing the finger at the publishers saying, “What’s happening is that lack of support from the Japanese publishers – not necessarily from intentions but from development capabilities.” (kotaku) Why, though, would publishers push to produce games on the console that’s currently losing market share?

Sony’s position is very tough to deal with because they’re not market leader so publishers are looking for the biggest bang for their proverbial “buck” and that’s not the PS3 right now. You can produce an expensive game for an expensive console or a cheaper game for a cheaper console and make more money.

How, then, can Sony get out of this situation? They must find a way to promote an incentive for publishers to create Sony exclusives or, at least, a Sony “port” of a game to build up their library of must-have titles. Perhaps Sony’s punishment at the hands of Nintendo and Microsoft in the States has a bit to do with their global marketplace issues — they need to put a concerted effort into one of their regions and champion themselves in one realm before trying for all of them. Right now, they’re a watered down expensive console with very few exclusive titles.

Metal Gear Sold 4, Home and Little Big Planet are great reasons to own a PlayStation 3 if the price was a bit more reasonable. Looking at the future, we’ve got Resistance 2 and a few other titles that may make some waves in the industry, at least in the United States, but it’s going to be an uphill battle in which they are the second best this time.

It’s always easy when you’re on the top. PlayStation 3 is not on the top so it’s time to start struggling, cutting prices or enticing publishers to build good exclusive titles.

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The Beatle’s Change Wii Price Point, Rock Band StyleThe Beatle’s Change Wii Price Point, Rock Band Style

By now everyone is used to paying more for Rock Band than meets the eye. The game disc is usually packed in several bundles for guitars, drums and, of course, stand alone. With The Beatles: Rock Band, MTV Games plans to release one product SKU, a game only disc. That game only disc, on the Wii is going to cost the same as other consoles: $59.99.

beatles You remember when Wii games were $49.99 and everyone made titles that hit this price point or lower? MTV isn’t going to stick to this standard, regardless of “last gen graphics” because you’ll buy it anyway, right? Rock Band is one of those games that has hit huge strides in the market over the last few years as people buy big plastic instruments to rock their house.

Now we’re going to see if those same people willing to pay $10.00 more than normal in order to play The Beatles songs. The Wii has a large audience of gamers but they’re the style of gamer that wants a good value for their product, after all, the Wii is cheaper than every other console and the games probably should match its differences compared to games for the other consoles.

This is an interesting decision, as the market plunges into despair MTV gouges games for $10.00 more because “The Beatles” happens to be in the title. Are you going to pay more for the Beatles? Not us.

(Thanks, 1up)

Sony Says Competition is GoodSony 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.

Nielsen Ratings, PS3 Played Less Than Classic Xbox?Nielsen Ratings, PS3 Played Less Than Classic Xbox?

In a WTF moment, Neilsen Ratings shows more gamers are playing the classic Microsoft Xbox console than the PlayStation 3. While 9.7% of gamers are playing the Xbox 7.3% are playing the PlayStation 3 but Sony isn’t out of the picture by a long shot, having 31.7% of gamers playing the PlayStation 2!

Only 13.4% of gamers are playing the Wii even though it’s the hottest selling console on the market, showing the fury of the casual gamer it seems. It’s trendy to own a Wii but it’s not trendy to play it; it would be interesting to see how much of the 13.4% is Wii Sports.

We’re guessing there are more classic Xbox gamers playing their console compared to the PlayStation 3 because of the console cost. You can find a used Xbox for under $25.00 on eBay but the question remains, who wants a used Xbox? The audience for the PS3 is more hardcore, more elite and more rare compared to the cost conscious gamers in the larger game industry pie.

More than likely, in ten years, we’ll see most gamers playing the PlayStation 3 while Microsoft works to claim demographics on whatever their next console will be. However, we’re not so sure how many Wii gamers will be playing their current generation console in ten years. Probably very few given the two year old console still has a small amount of gaming public.