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Sony Responds To Crashing Sales with Management ShiftSony Responds To Crashing Sales with Management Shift

April 19, 2009| schommer| 0 Comment| 11:04 am

ps3 Sony 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?

February 25, 2009| schommer| 0 Comment| 1:29 pm

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.

godofwar3 The “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)

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

February 13, 2009| schommer| 0 Comment| 1:42 pm

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.

wiifit It 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

February 10, 2009| schommer| 0 Comment| 11:09 am

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 Tyson What 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?

January 22, 2009| schommer| 0 Comment| 2:00 pm

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.

floppy This 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

January 20, 2009| schommer| 0 Comment| 6:58 pm

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?

January 20, 2009| schommer| 0 Comment| 10:11 am

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.

gamecube Before 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. 🙂

Do HD Graphics Matter To Gamers?Do HD Graphics Matter To Gamers?

January 19, 2009| schommer| 0 Comment| 7:31 pm

hdtv The question of the day, “Do HD graphics matter to gamers?” If you’re currently rolling with a PS3 or Xbox 360 and you’ve got HDMI and or sweet component cables you’re probably saying, “duh, of course they do.” What about everyone else, those Wii consoles for instance, there are so many of those. What about gamers that do not know what HDMI means?

Let’s face it, an estimated 21-million people are still using over the air TV broadcast signal and a large portion of those think that their TV is high definition because it doesn’t have an analog dial anymore. Recent Nielson ratings are showing most gamers are still pushing PS2 hardware, which isn’t high definition.

In the US, HDTV sales only reach 25-30% of the population. Couple this with the fact that one in five HDTV owners can’t tell the difference between standard definition and high definition content and you’ve got roughly 20% of the population utilizing HD. Looking at the number of gaming consoles out there and the rate of uptake, it’s clear that a large majority of gamers are not using HD resolutions for their gaming needs. (loot-ninja)

We’d like to think 1080p looks much different than 480p but some people don’t seem to notice because, honestly, they just don’t care. We’d also like to think a PlayStation 3 buyer would be aware of the HD content and already have equipment at home to take advantage of the system. Although there are no solid facts to state otherwise, there must be a group of individuals that have purchased a PlayStation 3 and are rolling with SDTV (ghetto).

High definition graphics matter to people who want a true HD experience. Wii gamers don’t care about high definition because they’re focused on the game play environment or are just following the wave of hype and desire to own the infamous white box. The Xbox 360 gamers may go either way, a gamer wants to own the system because they can get a lot of cool new games for it secondary to the HD experience. The hot games just don’t get designed on the Xbox classic or PS2 anymore. We’d presume a PS3 gamer really wants to play a high definition game because the cost of the console is more and you’re getting a Blu-ray player all bundled into one.

HD graphics matter to us, we see the difference, respect the detail and use the HD portion of the console as an excuse for paying so much for the technology. The United States, as a whole, isn’t fully ready or equipped (mentally) for a full HD experience. When will they be prepared to experience high definition at its fullest?

My guess, five years after Nintendo makes the transition to 1080p. Nintendo is capitalizing on the “average Joe” and the average consumer is still catching up on the high definition. Hell, many gamers are still playing the dial-up game!

Maybe we need to start a new government funded orgnization: The No HD Left Behind Act. Everyone should be in HD.

Microsoft Says Blu-ray Holds No 360 ValueMicrosoft Says Blu-ray Holds No 360 Value

January 12, 2009| schommer| 0 Comment| 4:05 pm

Rumors float around the Internet questioning when Microsoft will ship a Blu-ray enabled Xbox 360 or add-on device like they did with the, now failed, HD-DVD. At CES 09 Robbie Bach, president of Microsoft’s Entertainment & Devices division, says this request is “way down the list.”

Mr. Bach had some great selling points as to why a Blu-ray player has little value in the world of Xbox 360. The primary reason, of course, being the Xbox 360 developers cannot take advantage of Blu-ray as a development platform for games. This was the price Sony, or the consumer, paid to own a PlayStation 3 since all games are printed on the media and are, in effect, Blu-ray “capable.”

We say capable because not all (any?) PlayStation 3 games currently make full use of the Blu-ray media. Many games will reprint the game on the media for optimization purposes, fill the game with international voice overs for all countries or, otherwise, stuff the media with something that will serve a useful purpose. Sony has near-future-proofed their device by giving game developers years of growth in terms of utilizing the Blu-ray capacity.

Microsoft chose to take the smaller old-style DVD format for games and media. Adding the HD-DVD didn’t add a large deal of risk because, as we saw, they can discontinue the model and not change their core gaming demographic. We still laughed a bit at them, but that was where it ended. Bach also said that it’s not really a great economic time to push a new 360 SKU on potential customers with additional cost just for Blu-ray movies playback.

They could add Blu-ray game development support as well but that would just alienate the “28 million Xboxes” they have already shipped.

“OK, let me get this straight: I’m going to add something to the product that’s going to raise the cost, which means the price goes up, consumers aren’t asking for it, and by the way, my game developers can’t use it.” (gamespot)

Of course, the first thing that came to our mind was “well, you did it for HD-DVD, how is Blu-ray different?” The key areas we can think of really come down to Blu-ray is a Sony technology and they are a direct competitor and, to top it off, HD-DVD allowed them to fight against the PS3 at the media level of the industry. They minimized the risk by making the product a secondary add-on device and, if HD-DVD had won, they’d have the winning format already under production (still not for games).

It seems Microsoft has changed their battle plans a little. They started out talking up the media aspects of the 360, using Media Center, renting movies and TV shows and had the HD-DVD as a subproduct. Today, they’re investing in Netflix for media and everything else favors the games.

Which is fine, we like games.

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

January 5, 2009| schommer| 0 Comment| 4:40 pm

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.

(Thanks, 1up)