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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Sony’s PS3 Real 10 Year Plan: Home Entertainment TakeoverSony’s PS3 Real 10 Year Plan: Home Entertainment Takeover

The PlayStation 3 is the slow seller in the United States but Sony still holds belief in their “10 year plan.” Many of us consider this to be the same style of plan Sony used with the PS2, sell your console through multiple generations and own the market share. The PS2‘s launch was much more graceful when compared to its 7th generation counterpart. Perhaps the PS3 has a different destiny… perhaps they want to remove all other media boxes from your living room.

Imagine a life without a cable box or Tivo and you’re probably envisioning Sony’s road map for a media distribution empire. First, remove Tivo from the situation with a DVR style box using their PlayTV technologies, wired up to the PlayStation 3 using a USB connection. The United States hasn’t seen a launch of PlayTV, more than likely because the PS3 isn’t a huge console here yet and Tivo is partnered with many cable and satellite providers already.

Senior director of the PlayStation Network, Susan Panico said Sony “looks aspirationally at HBO, the way they have Sex and the City and other shows” (gamespot) after admitting Sony wants to replace cable boxes in the home. Tivo has already done a great job removing the need for a cable box, allowing you to rent a “cable card” to insert into a Tivo and gain access to all their content for your DVR needs. DirectTV offers (or has in the past) a Tivo or Tivo-like DVR solution. Cable and DirectTV offer the ability to rent their DVR or offer a solution to purchase your own at a retail outlet What if Sony decides to partner with one or more of these providers to offer an all-in-one solution. PS3 owners wouldn’t have to purchase additional equipment and could be up and running immediately with hard disks big enough to handle HD content.

Sony could offer you a graphically appealing gaming experience, a high definition BluRay solution, media distribution for renting movies, an iTunes style online store for purchasing and playing music all wrapped up in a DVR solution. All this content for a $400 price tag is a value when all the offers are combined into one tiny black box.

Looking at today’s Tivo Series3 HD DVR you’ll notice the ability to play music directly from iTunes, browse and play Youtube shows, watch Disney offerings and even high definition NetFlix playback. The Tivo DVR’s can also talk with other DVR’s in the household making it easy to share TV records across systems. The only thing missing in the Tivo solution is a high definition gaming platform and the BluRay hardware.

We’re all sitting here poking fun at the small PS3 game library and telling people that BluRay is going to lose out to HD downloads yet we may be missing the bigger picture: an all-in-one media empire solution. The PS3 may not carry the largest game library compared to the Xbox 360 or the sales records of the Wii but if Sony finds a way to become a reliable and required media set top box they may realize their true “10 year plan.”

Eidos and Square Enix Birth Great ThingsEidos and Square Enix Birth Great Things

tombraiderEidos was founded in 1990 and has been the king of its own destiny since its inception. As part of Square-Enix, Eidos and its destiny were called into question, would they continue to run the show or would they become one with Square-Enix. Square-Enix has come out to say they’ll be leaving Eidos to themselves and allow creativity to flow between the companies.

“This is an exciting beginning to what I believe will be an incredible journey. I am very happy that Phil Rogers has agreed to lead Eidos in what I see as an international marriage between our two companies, a marriage that will give birth to great things. Eidos is a content rich company and a culturally significant business to the Square Enix group.” (kotaku)

Square-Enix is playing it safe with this acquisition because this isn’t a great enviroment for shaking things up internally within a development studio. Eidos is well known for Tomb Raider, Hitman, Deus Ex, Thief and many other great projects and have built a solid foundation for the future.

A mind-share between these two groups is a powerful enemy to the competitors if they’re able to open a good dialog between the two companies and share resources, tools and engines. In a world of cost savings and salary cuts, leaning on each others resources to build a better product is a win.

At least we won’t have to call them Square-Enix-Edios because that’s just a mouthful!

Episode 396: Getting TargetedEpisode 396: Getting Targeted

This week’s episode is very long to make up for the crappiness of last week’s episode, and the crew have fun with the trolling of Target critics this past week.

The news this week includes:

  • Guillermo del Toro quits videogame development
  • There is no suspend feature for Steam Machines
  • Gamescom sets attendance record
  • Chinese console crowdfunding project manages to rip off PS4 and Xbox One

This and Listener Feedback.