Father of PlayStation Admits Sony Mistakes

News for nerds writes "Following the news of Sony slashing its profit forecast due to the underperforming AV & PC divisions, Ken Kutaragi, president of Sony Computer Entertainment Inc. (SCEI) known by the PlayStation brand, admitted he and other Sony employees have been frustrated for years with management's reluctance to introduce products like Apple Computer Inc.'s iPod, mainly because Sony had music and movie units that were worried about content rights. The PSP by SCEI is one of the first Sony products that support non-proprietary standards such as MP3 or H.264, and now SCEI considers opening up the UMD disc format employed in the PSP."

Comments

Big corporations

[cyriustek]

This is an example of what happens when companies turn into huge conglomerates. Eventually, you have competing interest and a piece of the business loses a major opporuntiy to grow further due to anoth business unit. Although I am not a proponent of government breaking up companies, I must say there are times it is actually good for the companies.

Re:I don't see how it's a mistake.

[WolfWithoutAClause]

It's a massive mistake, because the evidence that increased piracy actually doesn't seem to affect sales at all, if at all, and may even improve sales.

It's not clear why this would be, but there are suggestions that essentially there has been piracy ever since home taping in general and cassettes in particular hit the market- people have been copying off of friends ever since.

Now, you could argue that this is wrong, and that the artists and music companies are worse off because of this. But music companies are making good money, and stopping the home copying would be a double-edged sword, since the home copying acts as free advertising. In addition, it's very unclear that the lack of home copying would increase sales- many people, particularly young people are on a budget, and simply wouldn't buy more music, they would just listen to less music and spend no more money.

Also, except for the most hardened copier listening to music usually creates a taste for music- so they end up buying more music in the long run.

So, home copying doesn't seem to reduce the market size for selling music. On the other hand, real pirates- people making copies of music and selling them for money, or even as legitimate forgeries, they really can reduce the market size.