Sony to Testify In Person Re: PSN Outage

Sony will finally be sending a high-level executive to testify before the US House of Representatives’ Committee on Energy and Commerce’s Subcommittee on Commerce, Manufacturing, and Trade on the three week outage of PlayStation Network and Sony’s slowness in informing its customers on the compromising of personal and credit card data.

Ken Johnson, an aide to subcommittee chairwoman Mary Bono Mack (R-CA), told The Atlantic Magazine that Tim Schaff, president of Sony Network Entertainment, would testify before the subcommittee next week:

“While Chairman Bono Mack remains critical of Sony’s initial handling of the data breaches, she also is appreciative that the company has now agreed to testify. The Chairman firmly believes that the lessons learned from…the Sony…experiences can be instructive and guide us as we develop comprehensive data protection legislation. We expect to introduce that legislation, which will provide new safeguards for American consumers, in the next few weeks.”

Previously, Sony’s Kaz Hirai had only sent his testimony in a letter to the Committee.

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Sony, What Doesn’t Kill Them Makes Them StrongerSony, What Doesn’t Kill Them Makes Them Stronger

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:

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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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