PlayStation 3 Manufacturing Not Started Yet?
aapold writes "Despite reports to the contrary, Sony Computer Entertainment American president Kaz Hirai states in an interview on Gamespot last week that 'We haven't started manufacturing yet. Some of our ops guys were actually just in China, and also in Japan just reviewing the [production] lines and everything else. But they are, again, preparing as we speak to get the manufacturing going. We've not announced and we haven't set really a specific date to say, 'As of this day we're going to start manufacturing.'"
They are really pushing out the boat, don't get a PS3 have a girly PS2 instead!
liqbase
1) Decide to produce a game console.
2) Look at every decision Sony has made for the Playstation 3, and do the opposite
3) Profit
Despite reports to the contrary...
Would those reports to the contrary have anything to do with 1up and SLASHDOT deciding to title a previous story about developer kits being sent out as "PS3 Production 'In Full Swing'"?
I think the internet has made it impossible for some people to like anything.
Maybe the reason the video game industry is seeing a slow down is that no matter what any company does we bitch about it. The small publishers are too small, the big publisers are to big, the inovative games are too inovative and everything else is not inovative enough... We need to grow up and quit this fanboyism and infighting, we all may have diffrent taste but we all want one thing, qualtiy entertanment.
I don't give a damn for a man that can only spell a word one way.
Mark Twain
If there are no products that compete with it. If people can't get a console, they'll possibly look to another console such as the cheaper 360 or (potentially) bargain Wii. Sony have received enough bad press over the PS3 in regards to price (especially in the UK where we get especially ripped off), copycat features and lowered tech specs.
The PSP shortages hurt Sony as lots of people bought the cheaper DS instead and as a result the PSP didn't get that vital early userbase.
Nothing to see here - as usual.
Sony has been manufacturing the PS3 components for some time now, but they haven't begun assembling those components into final retail units yet. These daily anti-Sony Zonk tirades are like the people who still try to make BSOD jokes here on Slashdot - they end up doing more harm than good for the person making them.
Zonk, give it a rest. You're accomplishing nothing other than making yourself look ridiculous.
DNF announced as launch title for PS3!
GS: Speaking of dates, its three months to the day from now that you guys are going to launch. - translated to : you guys are so screwed, you're never going to get ps3 released!
KH: Correct. Yes. - translated to : shut up, so we screwed up a few times, leave me alone!
GS: How are things looking there? - translated to : so is there any chance Sony can still profit from ps3?
KH: Everything's pretty much on track. - translated to : if I owned Sony i'd just scrap the whole project right now and begin working on PS4.
I've been following the "Jack Thompson Rule" when it comes to covering/reporting on/commenting on Sony in the past several months. Essentially Sony, like Jack Thompson, must be ignored unless the most recent news about them tops the previous news. For example:
Jack says something stupid: write a comment
Jack says something else stupid: ignore him
Jack kills a baby: write a comment
Congratulations Sony! You've gotten me to once again comment on your amazing incompetance.
GeekNights!
Late Night Radio for Geeks!
And it's aendeuryu.
Congrats nimrod! You're Slashdot's Idiot of the Day!
With Microsoft's 360 dead in Japan. Dying in Europe. And selling worse than the first 360 in the US. And selling a miserable 3 million units worldwide after 8 months on the market - worse than their first 5 billion dollar marketplace fiasco with the first Xbox.
And with Nintendo giving up trying to compete technologically by coming out with an overclocked GameCube with a pointer bolted on.
And with Sony selling 100+ million Playstation consoles on their first foray into the console market.
And with Sony selling 106+ million Playstation 2 consoles in their second entry in the console market.
And now with the PS3 Sony is about to put out:
The $499 PS3:
1080p BluRay movies over component
BluRay Live support - additional dynamic content updates and information for movies
DLNA compliance - http://www.dlna.org/home/
1080p Games over component
Free online play for all non-MMORPG titles - confirmed over and over again by Sony
Full backwards compatibility for all PS1 titles
Full backwards compatiblity for all PS2 titles - PS2 chips included in the PS3
Linux
Online movie and music store
Webbrowsing and other desktop apps
Tilt controller
Every single developer that supported the PS2 onboard with their games for the PS3
All parts of the system except the HDMI port are upgradeable
Harddrive upgradeable with stadard store bought drives
For 100 dollars more you get:
60 gig harddrive
WiFi
HDMI
Yep, aendeuryu, poor liddle Sony...
... that there are too many negative Sony stories being posted in 3 - 2 - 1... Oops, I guess I'm too late.
Hey, I like my weekly updates on Sony problems. I need to know whether there'll still be any idiots during launch who will be willing to pay 3 times retail price on Ebay.
Those who can, do. Those who can't, sue.
Seems like a good plan. They hold off on production, and at release come up with less supply than demand, and hopefully the lack of supply causes news stories to artificially inflate the demand.
Now what I think will hurt them the most is when people see the $800 price tag on ebay, and say "I'm waiting a couple months so I can buy it at a normal retail price." like they did on their last two consoles.
Surprise! The console price isn't dropping!
Did anyone actually read the story this latest bit-o-fud from Zonk is referencing?
It is an article talking about Sony shipping devkits to developers and has nothing about final PS3 consumer hardware being manufactured - along with some creepy Zonk anti-Sony commentary in the summary.
GS: The 360 was plagued by significant shortages at launch. What steps are you taking to make sure the PS3 doesn't meet the same fate?
KH: Well, I think that you know this is all relative, but you need to put it in context. I think that we've always talked about shipping 2 million units worldwide within the calendar year. Since we're going with three territories, we haven't really come up with an allocation just yet. But even if you do the simple math you're talking about less than 700,000 units per territory, per major territory, between launch and the end of the year. So even if there was some fluctuation--you give Japan more, you give the US more, what have you--you're going to end up with some shortages. So I think that if we've done our jobs right and if we've been able to really have the consumers become interested in this product, then, unfortunately, I think it's going to be very much of a challenge to be able to meet every single unit demand that's out there in the market. That's just a logistical impossibility. Unless we suddenly say, "Well we want to wait until June of next year to launch because we want to stockpile product," I don't think that's the approach we want to take.
Great thing they are concerned about the consumer. Really, are they nuts? Charging hundreds more than their competitors (one of which has a released product and one of which has a product which will be released near it that also has better press) for the console, and running a freaking shortage? They do realize that they aren't the only major player here, that they have next to no good press, and that doing this is likely to send people running to their competitors? They really don't seem to realize that they can't just jerk around with consumers like this without being jerked back at in return...I predict great profits from this one.
AHAHAHAHAHAHAHAHAHAHAHA Yeah, we found him all right. Good old AC, for the win. Its too expensive. Only fanboys like you will buy one. It costs more than most people in a month in europe - its not necessarily "too expensive", its more like "Id rather make my car and house payments". -Red
Guns don't kill people, "with glowing hearts" kills people.
A manufacturing method called Just-In-Time is popular among Japanese and worldwide companies. Look here for reference.
Basically, the strategy allows a company to avoid inventory costs and be more agile when it comes to shifting stock around territories (from ones that aren't selling to ones that are). Toyota use the method and I've seen it first hand. Basically you establish a small buffer (maybe a month before launch) and ship those launch territories, while keeping some in stock. You then watch your stock in those territories and produce units, just-in-time, to meet demand(in theory).
Everyone who has the money and the desire to spend it on this system need not worry. It doesn't take long to manufacture a dozen consoles.
Apply the Zonked tag, as once again the story with the worst possible spin has been used.
Sony may not be manufacturing quite yet, but does that matter if they can meet launch targets?
Some other headlines that would have works just as well for this same interview:
"Sony to launch online service day of console launch"
"Sony to provide downloadable PSP games this year"
or even just
"Kaz Hirai of Sony responds to Yankee Group forecast"
"There is more worth loving than we have strength to love." - Brian Jay Stanley
> You cannot rely on the hardcore to really drive sales anymore. the casual are more significant - and 600 is not casual.
Been guilty of that thinking myself. But lately I have been pondering thus: Nobody has been able to manufacture enough units to satisfy initial demand on a new console. That being the case for the PS3 I suspect it won't matter what price they sell it for, there will probably be enough fanbois, California (where the cost of living is such that $500-$600 isn't much) IT geeks, spoiled yuppie kids who will get one for Xmas regardless of whether mom has to scrounge one from Ebay for $1000, etc. to sell out the initial inventory for Xmas '06.
It is '07 where things get interesting. Once they reap all of the 'gotta have it at any price' sales and get production ramped up to churn out machines by the freighter load they have to sell em to regular folk. To sell the sort of mass quantities that can keep the factories humming and sustain developer interest that price does have to drop, and fairly fast. Can they do it?
Democrat delenda est
Off the back of a napkin, you need to know:
Forecasted sales, by region
Distribution network capabilities
lead time of product manufacture, and an analysis of any potential long-lead parts. Long lead parts are any electronics product that potentially take 5-6 months or longer to acquire. I don't know what the allocation picture is on electronics right now (if there even is one) as I've been out of high tech for a little while.
JIT isn't a really great model, IMO. Its end result is the upstream suppliers (with less negotiating power than a Toyota or Sony) holds the excess inventory (and consequently, risk) but nothing really changes froma production standpoint.
A bit simplified, but that's what I've seen in the Real World.
Finally, the first production run is going to be painful, it always is. It's a little surprising that they're not starting manufacturing yet, and I'd expect it to begin immediately following Labor Day weekend if they expect to hit a Christmas release. But that's off the cuff - we don't know how many production facilities they've got, what they're average units/hr are, nor what they're distro network looks like. It could be a case where they have an exceedingly efficient distro network which is all cross-docking and freight breaking, so units can come into the states in small amounts and filter efficiently to the retailers. (I'd doubt it, however; it strikes me that you'd want to resell to WalMart, Meijer's, Best Buy, etc and force their distribution networks to do the dirty work)
You better watch out, there may be dogs about . .
Are you hinting that the PS3 is some sort of Vaporware?
It's real dammit. I believe in the blue ray!
Fact 1 - the PS3 will sell pretty much every unit Sony can produce this Xmas (if they can get it manufactured. It may be late, don't be suprised.) /. forums about how "I played a PS3 at a kiosk at Game Spot, I wouldn't own one if they came free in McDonald's Happy Meals!!"
Fact 2 - Everyone that has a PS2 and loves it (and also uses it as their primary game machine) wants a PS3. (Just as PS1 owners wanted a PS2.)
Fact 3 - No one outside of Slashdot (and maybe Digg) gives a flying crap about "root-kits".
Fact 4 - The exclusive (TRUE exclusive) PS3 games (FF XIII, MGS4) will sell PS3 units to everyone that didn't buy a PS3 at launch.
Fact 5 - Average consumers don't want to pay 500 or 600 dollars for a game machine. However, they will. Simply because it is PlayStation 3.
Fact 6 - PS3 games, on the whole, will never actually look better than xBox 360 games, the video GPU's are just too similar.
Fact 7 - Fact 6 is meaningless, because people "Don't Care". All they will know is that PS3 games "Look frikin REAL, man!!"
Fact 8 - Tech savvy people (such as slashdotters) will own all three new consoles anyway, and then lie in the
Fact 9 - These facts WILL prove to be suprisingly accurate come February 2007.
You know, someone hanging from a noose could be said to be "in full swing" too. Just sayin'...
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
Fact 1 - the PS3 will sell pretty much every unit Sony can produce this Xmas (if they can get it manufactured. It may be late, don't be suprised.)
... but this is still (basically) true.
/. forums about how "I played a PS3 at a kiosk at Game Spot, I wouldn't own one if they came free in McDonald's Happy Meals!!"
No doubt, the PS3 will probably be very difficult to produce and will be in very short supply.
Fact 2 - Everyone that has a PS2 and loves it (and also uses it as their primary game machine) wants a PS3. (Just as PS1 owners wanted a PS2.)
That's not a fact, being that I own and love my PS2 and have no desire to purchase a PS3 I am a example which negates your everyone claim. Ultimately, everyone I know that owns a PS2 and heard the price of a PS3 refuses to buy one, even the really rich (always early adopt) crowd; this might change 18 months down the road, but if early adopters do not buy the PS3 it will have disapointing game sales and it's "exclusive" games will become not so exclusive. The difference between a Sony system and a Nintendo system is people buy a Nintendo system for games that can only be bought for a Nintendo System (first party games), a Sony system is bought for games that can be bought (in theory) for other systems (third party games).
Fact 3 - No one outside of Slashdot (and maybe Digg) gives a flying crap about "root-kits".
This one is also false; most of the people who had their computer damaged were those with poor computer skills. When these people when to their geeky friends to fix their computer they found out about the rootkit. The average responce was "Why would Sony, a respected company, want to install a virus on my computer? I don't think I'll buy another Sony product"
Fact 4 - The exclusive (TRUE exclusive) PS3 games (FF XIII, MGS4) will sell PS3 units to everyone that didn't buy a PS3 at launch.
Metal Gear Solid and Final Fantasy have been finding their way to other consoles lately; these titles are not tied to Sony, they are launched on the market leading platform. If Sony is not leading in market share come November 2007 (which they probably won't be) expect to see these games delayed to be released on other platforms.
Fact 5 - Average consumers don't want to pay 500 or 600 dollars for a game machine. However, they will. Simply because it is PlayStation 3.
At one point in time you could say that Nintendo's consoles would sell because they have "Nintendo" written on them; brand loyalty is a very difficult thing to maintain in highly competative markets. Don't expect too many people to say "It has no games I want, and is really expensive, but that Sony logo is cool so I'll buy it"
Fact 6 - PS3 games, on the whole, will never actually look better than xBox 360 games, the video GPU's are just too similar.
I'd actually argue it is because we are dealing with diminishing returns on system power
Fact 7 - Fact 6 is meaningless, because people "Don't Care". All they will know is that PS3 games "Look frikin REAL, man!!"
Maybe, but at the same time animation is really becomming a problem in these "ultra-realistic" games. I don't remember the name of the game, but the screen shots for it are amazing but the video looks like crap because of how out of sync the animation is to the voice; rather than looking like normal (bad) game animation it looks really creepy. I'm probably alone, but was so offended (bad word for it) by how it moved that I couldn't play that game.
Fact 8 - Tech savvy people (such as slashdotters) will own all three new consoles anyway, and then lie in the
Maybe, I think you'll see a large portion of people owning an XBox 360 + Wii or a PS3 + Wii but I think the number of people who own an XBox 360 and PS3 will be pretty small. The reason for this is that the combined cost is insane ($1000), if you include basic accessories (like extra controllers) it simply is too expensive; also the number of games that are going to be exclusive is pretty small because the cost to develop games for XBox 360, PS3 and High End PC are so high that the risk is too great to release it on one platform.
I am too lazy for Google for a link, but apparently the time between the start of manufacture of the 360 and the launch was a scant 69 days. I think we all know how well that went. With under 90 days until the PS3 launch in Japan and North America I am not at all confident that Sony can produce the 2 million units they expect to be ready for launch.
I think Nintendo might steal significant thunder from Sony if PS3 shortages are a drastic as I expect by offering the Wii in quantity with the quality and quantity of launch titles that are anticipated. If a parent walks into a store around Christmas asks for a PS3 only to hear that it's out of stock looks at the Wii, the breadth of launch titles, the comparitive price, the innovative control style, the name Nintendo and the fact that it's in stock, well then maybe Nintendo can clean the floor with Sony. I hope NIntendo realizes this. Anyone who doubts that it might happen need only look at the success of the DS versus the PSP.
I would not count on brand recognition being a driver for sales. Sony has an awfully lousy brand reputation over here in Europe, and has earned that rightfully due to lousy customer service, expensive out of warranty repairs, lots of repairs etc... If you ask an everage person over here, they probably go for other brands first unless there is a real reason to buy Sony. Sony used to be good, but their quality has gone down the drain the last years once they centralized their repair network and once they started to treat their customers like John Romero wanted to have his customers in a famous ad...
Sony knows that their price is high, that is probably one of the reasons they have not yet started manufacturing the PS3, it costs them too much. Every day that passes means that the already expensive components of the PS3 drop just a little bit in price. When they feel that they will be able to produce enough units to meet their outrageous price, they will start production. It will minimize their losses on the devices. Regardless of price or number of units able to be sold, they need to just RELEASE their system before holiday 2006. Otherwise little Timmy (or 30yr old lives in his mothers basement Timmy) will give up and get the 360. If they come out, even in limited numbers, the demand will still be there and for many people out there the 360 is not considered a substitute. Those people will just end up waiting until a PS3 becomes available and won't spend their money on a 360 or Wii. Right now, the PS3 is just a concept, when it is released it becomes real in consumers minds.
I haven't decided where I'm going yet with the next gen systems. I am certainly not going to spend $600 on a console. My options are a refurbished 360 or a Wii. Maybe a refurb PS3 after the first price drop. It all depends on the content.
http://www.tomandemily.com
... who want to suck on Zonk's cock.
Hay look he actually posted a nice article... Of course it might have to do with the fact he hasn't tacked on a editorial comment and that the story still isn't good news.
So then... If a KKK guy who constantly posts stories about how our problems are caused by blacks, and accepts a "neutral" submission equivalent to this one, it makes him an OK guy? Come on, we have all seen the "well I am not biased, look I just posed a non-biased story!" defense(s) before.
And don't' get me started on how the exact same crap was going on here with the XboxOne, and how things really turned out....
If Sony Doesn't sell out in every territory by Christmas they will have to do massive damage control.
I think that things might be slightly blown out of proportion here. First of all, I think that Cell chips, RAM, GPU's, and Blu-Ray drives have already been produced for the PlayStation 3, however they have not been assembled yet. Perhaps there aren't enough of any particular component yet to start ramping up production without running out of said component. Additionally, Microsoft didn't start manufacturing consoles until September either, and they still managed to get the Xbox 360 to market, albeit fewer than was initial demand for.
I don't think it's fair to consider Sony to be doomed, but they might run into some of the same problems that Microsoft did last year if they don't have enough consoles out the door in time for the holiday season.
PSP Shortages? What territory was that? In the US you could find them on the shelves a few weeks after launch. Sony announced they would hit NA with 1 million PSP's at launch. Within 7 days they sold about 600,000 which meant you could be casual about picking it up, as there were plenty on the shelves. Actually, I have yet to see a local shop be sold out of PSP's.
The Guide is definitive. Reality is frequently inaccurate.
Dude, That's their business model!
You worked harder on that post than I did through most of High School.
"Just in Time" requires precision calculation as to how much inventory is required to BUILD a product, not deliver a product. For example, if Sony Stockpiled too many Cell processors, that is bad, and wastes warehouse space (although cell chips wouldn't take up appreciable space). If there are too few, demand goes unmet.
"JIT" does not refer to completed product. That calculation is different, and is based on market demand, not manufacturing capacity (which is only indirectly based on market demand).
In short Sony does not have enough completed product, and no JIT strategy will get them there.
The UK, ie. Sony's whipping boy.
You call it "a little too late". Dell calls it "made to order".
I'm not sure how this keeps getting trotted out. Sony made a TON of money on the Ps2 (and the Ps1) and continues to do so. They didn't profit on the HARDWARE ITSELF for about 18 months or so, but the software and the current model of the Ps2 is still VERY profitable for sony. The only company to lose money last round was microsoft, and they've learned from their mistakes- the 360 is expected to make a profit within the next year or so.
Also, the NDS is not a console- it's a handheld. The hardware and the markets they target are COMPLETELY different, and implying that the NDS is in any way shape or form in competition with the 360, the Ps2, Ps3, Wii, or Gamecube is idiocy.
Computer chips, especially the Cell and the PS3 graphics chip that have little to none use outside the PS3 (I know there are a few Cell servers, but the numbers are really low compared to the PS3 needs).
AFAIK the manufacturing process of advanced chips takes several weeks if not months. And for the chips that are specific to the PS3, you cannot just buy them elsewhere. So if production of these is not running yet, there may be a problem with getting the PS3 launced this year.
C - the footgun of programming languages
The Famicom has been on a single chip for a long time, to the point where PolyStation and other NES clones are more popular than PlayStation some parts of the world. I'm pretty sure that the Super Famicom (also called Super NES) can similarly be reduced to a single chip by now. Would it be so hard for Nintendo to make an adapter similar to Super Game Boy or Game Boy Player allowing use of classic systems' Game Paks?
A lot of PlayStation 2 consoles were purchased by customers who have had a PS1 break on them. In addition, the front-loading NES Game Pak connector wears down rawther easily.
A problem happens when the copy protection interferes with the ability of hobbyists to compile and run software on the console. Look at Sony's fight to keep the PSP closed.
Blu-ray Disc video uses AACS, which allows movie studios to revoke your player's ability to play Hollywood movies. It also has Image Constraint Token, which allows movie studios to force the "budget" (500 USD) version of the PS3, along with other players that lack DVI+HDCP or HDMI+HDCP output, to downsample the video to near-DVD resolution. In addition, Sony still owns that patent on allowing game discs to be node-locked, which interferes with video game rentals and migration of "licenses" from a broken console to a replacement console.
Cartridge-based systems such as the Game Boy Advance? For several months, the GameCube was bundled with an accessory to use games for Game Boy, GBC, and GBA. (This accessory is still available for separate purchase.) There has been no indication that the Wii will be able to use this accessory or that there will be a counterpart for the Wii.
Unless free software can play Blu-ray Disc video in major developed markets, Blu-ray Disc video is a proprietary format. It's just as proprietary as DVD Video, which is subject to software patents and anti-circumvention restrictions.
Each price point may represent a zero-crossing in marginal profit, which corresponds to a local maximum in the profit curve. The sentence with "price point" means that Sony identified these points, considered several, and chose one that places the console out of reach of many potential buyers. It adds a little meaning to the sentence with "price" but, I admit, not much.
The sentence with "price point" does not imply Sony consciously identified a price point, while the one without "point" does not imply Sony did not consciously identify a price point. Even if they did so imply, that would not be relevant to the author's point in any discussion I can conceive of. And even if someone were emphasizing something relevant to the demand curve's shape, I've always seen the term "price point" used to simply refer to the retail price they have set for it.
But I think your little fantasy that you knew some calculus and economics that I didn't was kinda cute, so I'll give you that.
Apology to Ubuntu forum.
I wonder why Sony (or Microsoft, or Nintendo) doesn't direct market like Dell. Instead they market their console (which they say is a PC ;)) like a toaster oven or toy.
Yeah, I don't know crap about marketing, so the answer is probably obvious. But with all the money spent on advertising by Sony themselves, I don't see why they need a ToysRUs, Amazon, or Wal*Mart. At least not for the first generation of systems.
Sell direct to the user and reduce the preorder headaches by making sure that each unit gets to an end user and not stuck in a warehouse or on the shelf of a store in BFE.
Spell cheek you've failed me four the last thyme!
True, some NOACs are buggy, most notably the one used in Messiah Generation NEX. But some are near perfect.
Nintendo designed the NES and Super NES together with Ricoh. Nintendo obviously has its own NES schematics, with which it can accurately replicate the NES logic gate-for-gate in the same way that Sony shrunk the PlayStation logic into one chip (PSone, PS2) and then into part of a chip (PStwo).
Will all licensed games be available for purchase, or will select publishers offer select titles?