Category: playstation 3

The PSN FiascoThe PSN Fiasco

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

  • How many PSN users had a credit card on file
  • Why Sony cannot determine if credit card was stolen.
  • What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.

(more…)

Gaming Podcast 148: Games I Don’t Like PlayingGaming Podcast 148: Games I Don’t Like Playing

This weeks gaming podcast covers a few top news stories that inspire tons of discussion, we tackle some user feedback and comments, answers of the week and flashback to Archon: The Light and the Dark. We’re also going to review Netflix for the PlayStation 3 for those thinking of ordering the disc from Netflix. This weeks news includes:

This week’s question of the week: what was the best game you played that after playing it, you thought to yourself, “That was good. I’m never playing it again”?

Sony Responds To Crashing Sales with Management ShiftSony 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?

Does Sony Need M.A.G and God of War 3 This Year?Does Sony Need M.A.G and God of War 3 This Year?

There is a bit of confusion regarding the release dates of both M.A.G and God of War 3 for the PlayStation 3. Initially people believed 2009 was the target drop for both titles after a Sony press release mentioned great games being “ushered in” this year following Killzone 2.

godofwar3The “year” Sony may be talking about is fiscal year 2009… which rolls into March 2010. Although Sony hasn’t tagged either title with an ETA, it’s being assumed that we’re talking 2009 until spring 2010. Given most games launch in the September and October time for the holiday season that leads us to believe it will either arrive for the holiday or slide to 2010. If the title isn’t ready for prime time by the holiday season, can you wait a full year for these games?

More importantly, can Sony?

The best way to build up momentum for the console is to release some hot long awaited titles, M.A.G and God of War 3 seem to be just that product. We now have LittleBigPlanet, KillZone 2 and Metal Gear Solid 4 which were three big hopefuls for the console it would be a huge smash in the face of Microsoft to follow that up with two more one-two punches.

A year seems a bit too far to deliver the blow to their competition. What game are you waiting for on the PS3 and believe will kick unit sales into high gear?

(Thanks, 1up)

Small Games Make Big WavesSmall Games Make Big Waves

The game industry is doing “okay” in this bad economic time compared to other industries.  Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

wiiwareWe’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.

Nintendo Takes Yet Another Month in United StatesNintendo Takes Yet Another Month in United States

The holiday season is over, the NPD sales data for January 2008 is in and we see a common theme: Nintendo rules the show. While Sony continues to try and persuade gamers that the PlayStation 3 is in a completely different gaming category, statistic gathering companies like NPD put ’em all in one big basket.

wiifitIt makes sense for Sony to try to push themselves away from being classified with the Wii console because it makes them look bad. We’re all equal gamers here, there is no need to break into more sub-categories when only three consoles vying for top spot. Many folks (including us) criticize the slow adoption rate of Wii games, yet they steal top software sales spots as well.

  • Wii — 679,200
  • Nintendo DS — 510,800
  • Xbox 360 — 309,000
  • PlayStation 3 — 203,200
  • PlayStation Portable — 172,300
  • PlayStation 2 — 101,200

Thankfully Sony’s PlayStation 3 product took top spot on their hardware list, so that’s not so bad. Sadly, combining all Sony’s hardware still doesn’t meet the units of the Wii.

On the software sales front, Nintendo took six of the top ten positions including position’s one, two and three. Wii Fit takes number one position with an insane 777,000 units sold. The only closest product to Wii Fit was Wii Play (still!) with 415,000 units sold. Place four was held by a 360 title, Left 4 Dead sold 243,000 units.

Although many gamers haven’t turned on their Wii in ages, there is no doubt the market is red hot for Wii. At this point, we’re all wondering how long it will last — any predictions? It’s already been a long time.

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:

  • PlayStation Network increases revenues by 200% in 2008
  • 55% of all PlayStation owners are on PSN
  • 17.5 million PSN subscribers
  • 53% rise in software sales on PS3
  • Won HD format war

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)

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?

Kaz Hirai Dooms 360 To Short LifeKaz Hirai Dooms 360 To Short Life

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.

Wii Will Beat PS2 in Sales, PS3 Like GameCube?Wii Will Beat PS2 in Sales, PS3 Like GameCube?

If the sales continue as they have been for Nintendo and their little white Wii, you’ll be looking at the top-dog for overall console says–best selling console ever. This would push Sony’s PlayStation 2 to the second spot of awesome console victories over the last seven generations of gaming hardware.

gamecubeBefore Sony fans unite to comment storm, remember, the PS2 had a lot of great games and continues to have games coming through for its console. People are still debating the life-span of the Wii product line, regardless to overall sales figures while the PS2 no doubt had a long live and still continues to have a long life, heck 30%+ of gamers still play the darn thing. Sony has been able to utilize the PS2 and its profitability to glide through the initial PS3 sales slump and get the momentum growing for their current generation console.

Yet, some folks are comparing the PlayStation 3 to the GameCube in terms of sales performance.

“During the first 26 month period, the PS3 sold 6.79 million units in the U.S., compared to 6.75 million GameCubes during its first 26 months. While the GameCube finished a distant third last generation, the console was profitable for Nintendo.” (Kotaku)

Before you get out your flame pens, this analogy wasn’t constructed by me, I’m merely the messenger. Again, to defend Sony (read: put on  my flame retardant outfit) Sony’s console is slowly building momentum, depending on who’s statistics you read anyway, and their product will eventually become a profitable sale. The GameCube was profitable as well but boasted “dozens” of great games to play while the PS3 obviously is pushing to become the hardcore gamers console of choice with top tier graphics, blu-ray playback and a free online service. GameCube was really just a cube that played some games, a one-trick-poney as it where.

It still feels odd to say Nintendo is winning and Sony isn’t winning (I avoid the term losing to yet again to kill the flames) and… Microsoft?

Microsoft, in my opinion, is in the best possible situation. They’re not being targetted as the number one console and being critizised for holding such a position and they’re not dragging near the bottom to be poked fun at by the industry and bloggers around the world (mainly, the United States.) They’re stealthing by with good sales compared to the last generation console by “improving its fortunes.” The Xbox 360 “sells 18 percent faster than its predecessor, according to NPD figures, and even turned a profit, something the original Xbox never did” according to VentureBeat.

The PlayStation 3 has many years ahead of it and we’re sure plenty of gamers will eventually buy into the console because the technology within that black box is designed to last many years. Considering only 30% of the United States is rolling with an HD-TV it’s not surprising they’re not jumping at the opportunity to own a PlayStation 3. Why is the news all over the PlayStation 3 and talking trash about it? Sony was the console to beat when the PlayStation 2  reigned the industry, to see the console go from #1 to #3 in a single generation is shocking but not new; we saw Nintendo suffer the same fate when the PlayStation originally launched.

But, is the PS3 like the GameCube? There are too many factors to make that comparison, especially considering the growth in the game industry, the growth of storage and video technology and the general acceptance of video games. Hell, you can buy video games at convenience stores in the United States now, the industry isn’t the same as it was in 2001.

Please discuss…but don’t shoot the messenger. 🙂