Sony Responds To Crashing Sales with Management Shift

ps3Sony Computer Entertainment Europe has made some leadership changes in response to their in-ability to get things going in the sales department of the PlayStation 3. Gamer’s continue to refuse to believe the PlayStation 3 is in a bad situation by explaining how badly Microsoft’s Xbox 360 is doing in Japan and Europe compared to the Sony console. And, of course, the Wii isn’t competition to Sony.

“Andrew House, Chief Marketing Officer and Group Executive of Sony Corporation, has been named President, Chief Executive Officer (CEO) and Co-Chief Operating Officer (Co-COO) of Sony Computer Entertainment Europe (SCEE) as of May 1, 2009.” (smarthouse.au)

We’ve been told this is the year of the PS3, this is when they bring it all together. Nintendo’s losing some of their grip on the industry with slower sales, even in Japan. The economy isn’t playing nice with any of the consoles and sales continue to drop, reportedly 17% in March compared to last years numbers.

Australia isn’t proving to be any help to Sony, “for example in Australia a consumer can now buy the Xbox 360 for $299 and a separate Blu ray player and DVD upscale player for $199. Combined this is $200 under the recommended retail price for a Sony PS3.”

Here in the United States, we’ve bought more Wii balance boards than PlayStation 3 consoles. One can argue that the Wii is a novelty system but that really casts a dark shadow on the PlayStation 3. The PS3 is being beat out by a novelty item? Can the new SCEE management change the direction of Sony?

0 thoughts on “Sony Responds To Crashing Sales with Management Shift”

  1. Sony’s in big trouble. There’ve been a few articles talking about the PlayStation 3’s death spiral, and you have to wonder if changing from Reeves to House is going to do anything.

    I mean, what can they do – aside from the obvious move of cutting the price, and doing that is financially destructive for Sony.

    As a PS – if you see the graph they include – the PS3 is about $130-140 more expensive in Australia than it is in the US if you convert the currency. It’s brutal.

  2. Sony’s in big trouble. There’ve been a few articles talking about the PlayStation 3’s death spiral, and you have to wonder if changing from Reeves to House is going to do anything.

    I mean, what can they do – aside from the obvious move of cutting the price, and doing that is financially destructive for Sony.

    As a PS – if you see the graph they include – the PS3 is about $130-140 more expensive in Australia than it is in the US if you convert the currency. It’s brutal.

  3. Maybe its high time that Sony, Nintendo and Microsoft bring their prices lower… they jacked their prices so high as if their game consoles are necessity. the world economy is going down and they can help a bit if they bring their prices lower.

  4. Maybe its high time that Sony, Nintendo and Microsoft bring their prices lower… they jacked their prices so high as if their game consoles are necessity. the world economy is going down and they can help a bit if they bring their prices lower.

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Ensemble Studios Had A MissionEnsemble Studios Had A Mission

In 1995 Ensemble Studios formed as an independent studio and kicked out a little game franchise known as Age of Empires. The title has received many accolades from the first in the franchise extended out to all the Age of Empires releases and spin-offs, all-in-all selling millions of copies.

Ensemble Studios had a mission “to create great games and a great place to work,” says Bruce Shelley from Ensemble Studios. Bruce Shelley also helped design Sid Meier’s Civilization and Railroad Tycoon with MicroProse prior to his work at Ensemble Studios. Now, however, he’s a bit upset at the closing of Ensemble Studios because they were profitable, created top-quality titles and had a great working environment.

Ensemble Studios, from his perspective at least, was a place you’d go to work and be happy with what you’re doing. When you’re working along nicely and become blind-sided by the news, it’s not surprising he didn’t take it lightly.

“Everyone at our studio was shocked, and I think remains very disappointed that this is going to happen. I believe we thought we were immune to shut-down talk because our published games have done so well and have been so profitable. Plus we felt we had built a really stable (low-turnover), talented, hard-working, and creative team, which is not easy to do. We thought we were among the best studios in the world, and that may be true, but we don’t fit in the future plans of MGS as an internal studio so we’re out.” (ensemblestudios.com)

What’s the future plans for Ensemble Studios? As we’ve stated before, they plan to live on in spirit, within the bounds of a new name and a new game plan. “I believe the spirit and mission of ES will be carried forward in this new company if enough of the key leaders agree to take part, which I expect to happen. There has been no announcement about what the new studio will be working on when it gets going,” says Shelley.

This is a horrible way to have to launch a hot new intellectual property. Usually creating a new title with a building fanbase would lead to excitement, parties and high hopes for the future of the franchise. Instead, people will be dusting off their resume in hopes to continue a life of game development.

Hopefully the leaders will indeed form a brand new company and build brand new hot products with their entire staff intact. Then, take their titles to a different publisher (besides Microsoft) and make some money and fans.

Rock and a Hard Place: Sony’s Japanese DilemmaRock and a Hard Place: Sony’s Japanese Dilemma

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.

Wii Takes US Lead In Console WarWii Takes US Lead In Console War

Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?

This months sales figures for consoles broke down something like this:

  • Nintendo DS: 783,000
  • Wii: 666,700
  • PlayStation 3: 405,500
  • PSP: 337,400
  • Xbox 360: 219,800
  • PlayStation 2: 188,800

Barring the crazy hand held sales of the Nintendo DS, you can clearly see Nintendo holds top-spot yet again, but this month Sony’s PlayStation 3 followed right behind. Although there was a good 200,000 difference, Sony didn’t do so bad; imagine if Nintendo had an MGS4 killer app?

Metal Gear Solid 4 sold 871,300 copies, individually, and roughly 1-million if you include those bundled with the PlayStation 3. The question is clearly answered, MGS4 helped sell Sony’s consoles. The new question will be: Can Sony keep the 2nd place rank against Xbox 360?

Until Gears of War 2, there isn’t a killer game for the Xbox 360 and GoW2 probably won’t move any consoles, those that love the series bought their console when Gears of War arrived. The next big console mover may, in fact, be Final Fantasy XIII for the Xbox 360 as it’s no longer exclusive to Sony and the 360 is a more cost effective way to get into the game.

How does Nintendo continue to keep the pace? Perhaps because their games are still in top positions with Wii Fit in 4th place, Wii Play in 5th place and Wii Kart in 7th on the June 2008 software charts.

(Thanks, 1up)