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Wired Dissects Sony as PS3 Effort Falters

PetManimal writes "Wired has an excellent analysis of Sony as it struggles to overcome the failures of the 1990s and make the PS3 live up to its promise. Sony is counting on the PS3 turning around the company's fortunes, but it may have been too ambitious. Besides being hamstrung with an unusual company culture that emphasizes small hardware teams and proprietary formats, Sony's efforts to make the PS3 kill several birds with one stone and appeal to a wider customer base is turning off the PS3's core support network: gamers. From the article: 'Then there was the decision to build Blu-ray into the PlayStation 3. Sony's logic seemed ironclad: Not only would the hi-def drive's huge storage capacity allow for far-more-realistic and complex games, the PS3 would carry Blu-ray into millions of households and drive sales of HDTVs as well. As it turned out, however, Blu-ray has done nothing good for the PS3. Blu-ray was the main reason gamers weren't able to get the new machine last spring: The launch had to be postponed because the new format's digital rights management system did not yet satisfy every Hollywood studio.'"

25 of 379 comments (clear)

  1. sweet by dolson · · Score: 3, Funny

    I was waiting for The Daily Dose. And here it is!

  2. Re:Just for the record. by Snarfangel · · Score: 4, Funny

    Sony didn't invent the transistor radio. An American company did with the help of Texas Instruments.
    http://en.wikipedia.org/wiki/Transistor_radio


    This sounds like a truthiness challenge. I'd say Sony is TI's Portugal.

    --
    This tagline is copyrighted material. Please send $10 for an affordable replacement.
  3. My daily naive question by UbuntuDupe · · Score: 5, Interesting

    Blu-ray was the main reason gamers weren't able to get the new machine last spring: The launch had to be postponed because the new format's digital rights management system did not yet satisfy every Hollywood studio.'"

    Blu-ray was the *main* reason? So, otherwise, they were basically ready to launch before May? So, a bunch of launch titles had *already* been completed by developers and should have had full functionality at E3, and it's possible to send reviewers ready-for-gaming (but crippled) PS3s with these games? And the "tilt controller" was ready to go then?

    Is it just me, or were several other equally important issues preventing the Spring launch?

    1. Re:My daily naive question by slofstra · · Score: 5, Informative
      Your post sounds suspicious so I ran a search on the WSJ. An article posted on 28 July 2006, states:
      "The games division, Sony Computer Entertainment, reported a 26.8 billion yen operating loss in the April-June quarter due to research-and-development costs for the PlayStation 3. Division sales fell 29% as fewer consumers bought PlayStation 2 consoles in anticipation of the next model."
    2. Re:My daily naive question by Moofie · · Score: 3, Insightful

      "predating anything Nintendo produced."

      Where can I buy one of these PC controllers that detect absolute position, not relative motion?

      --
      Why yes, I AM a rocket scientist!
  4. Myth by generic-man · · Score: 5, Insightful

    Right beneath this article on my front page is one called Ten Gaming Myths Debunked. Myth #1: "The PlayStation 3 Will Fail"

    The real winners in the Sony-Nintendo-Microsoft battle for console supremacy: on-line advertisers and opinion columnists.

    --
    For more information, click here.
  5. Re:Great, Sony vs. Microsoft by AKAImBatman · · Score: 5, Insightful

    Nintendo.

  6. Re:Just for the record. by MoFoQ · · Score: 3, Informative
    From http://en.wikipedia.org/wiki/Transistor_radio

      It was Sony, then a small, aggressive concern, who produced Japan's first transistor radio, the TR-55 (in 1955). Sony's greatest success was the pocket sized TR-63 released in 1957. It was the first transistor radio to utilize all miniature components and was the first Japanese radio to be imported into the U.S.A.


    They may have not "invented" it persay but they did make the first transistor radio to use all miniature components. It's just like Edison...he didn't invent the light bulb...just perfected it ( http://en.wikipedia.org/wiki/Incandescent_light_bu lb#History_of_the_light_bulb ).
  7. Yeah, it's all BluRay's fault by Pluvius · · Score: 3, Insightful

    Blu-ray was the main reason gamers weren't able to get the new machine last spring: The launch had to be postponed because the new format's digital rights management system did not yet satisfy every Hollywood studio.

    Wouldn't that mean that Hollywood is the main reason the PS3 isn't out now?

    Rob

  8. Re:Great, Sony vs. Microsoft by Frag-A-Muffin · · Score: 5, Interesting
    ...and I have no clue who to cheer for.



    Nintendo.



    This is more insightful then you know. It's the only gaming company left that doesn't have some ulterior motive. Sony wants the PS3 to push its bluray format into every living room. Then you have Microsoft battling that by siding with the HDDVD camp, cuz THEY also have interest in the "living room".

    Meanwhile, Nintendo wants to make games, and fun ones at that. You can argue it's motive is to try to tie in the DS and sell more of those (or vice versa). But at least it's still game related.

    I for one am siding with Nintendo on this one, and not only because I'm a Nintendo fanboy, but because I want my gaming to not be affected by some stupid political battle of the formats. I don't want to be caught in the middle of a format war that no good can come of.

    --

    AirSpeak - http://itunes.com/apps/AirSpeak
  9. Re:Great, Sony vs. Microsoft by voice_of_all_reason · · Score: 5, Funny

    My checkbook made just made a funny noise and said: "YOU REQUIRE MORE VESPENE GAS"

  10. Re:State of Sony's PS3 by Anonymous Coward · · Score: 5, Insightful
    Falter? There are only two places Sony and the PS3 is faltering...the daily Zonk tirade here on Slashdot and teamxbox.com.
    You conveniently left out "Any place which discusses video games".

    Gamespot, GameFAQ, Penny Arcade, PVP, all of them think the PS3 is a white elephant. A bunch of people in the traditional early adopter group say they'll buy it, "eventually, when the price comes down".

    All together, it looks like It's going to be Microsoft and/or Nintendo in the lead, with Sony left in the dust.
  11. Re:Great, Sony vs. Microsoft by Pluvius · · Score: 4, Insightful

    [Nintendo is] the only gaming company left that doesn't have some ulterior motive.

    Are you kidding? The only reason Nintendo can't be said to have an ulterior motive is because they have no leverage with which to accomplish any ulterior goal. Am I the only one who remembers the draconian censorship policies and ludicrous licensing fees that existed back when Nintendo was the only store on the block?

    Nintendo is a heartless corporation, same as the other two. You don't notice only because it has been mostly irrelevant for the past decade. I might not be rooting for Sony or Microsoft, but I'm sure as hell not rooting for Nintendo.

    Rob

  12. Re:State of Sony's PS3 by MrJynxx · · Score: 5, Insightful

    your points are a little off and it appears your using your magic 8 ball again. Also I swear I've seen an identical post on another sony bashing article a few months back..

    "sets are dropping in price like mad right now. Every electronic store is pimping 1080p sets with older sets getting pushed into the back. You will almost certainly be able to get a 1080p set for less than a grand by the start of next year. And here comes Sony with the cheapest 1080p HD BluRay player"

    uhh yea ok buddy, dropping like mad. After checking bestbuy.ca and futureshop.ca I found 1 1080P HDTV and it was not 1000 bucks, it wasn't even close.. I've only seen a 1080p TV in a super high end audio/video store. And they didn't even have anything that could drive 1080p at the time. So I doubt this point has any merit what so ever for driving sales of the PS3.

    another bad point

    "HD-DVD sales are in the toilet, while Sony has been stockpiling hundreds of thousands of BluRay drives to launch in a couple million PS3s in November"

    so they're stockpiling hundreds of thousands of bluray drives to launch a couple million PS3's. Anybody else see what's wrong with this statement? what about the other 1.5million PS3's that will supposedly be ready?

    "Pre-orders are stronger than the 105+ million selling PS2 - and the demand is greatest for the 60gig/HDMI PS3"

    Ah this must be the mystical 8-ball I was referring to. Where the hell did you get this information? Also NO MAJOR RETAILER HAS YET TO HAVE ANY PRE-ORDERS. Maybe it's different in Japan, but since I don't live there I can't comment on it.

    Look, I want PS3 to be kickass, make me grill cheese and do my homework. But if they don't get they're shit together and stop being arrogant assholes they're going to fall like sega (Next gen doesn't start until we say so, ok buddy, piss off).

  13. Nintendo was the bully when it was king by jchenx · · Score: 4, Insightful

    I totally agree. Nintendo definately did a lot of bullying themselves, when they were the King of Console Gaming. I remember when Sony started this little thing called the PlayStation, nobody believed in it. But developers flocked to it, one reason was due to the licensing and censorship issues they faced in Nintendo at the time. (Anyone else remember the Mortal Kombat fiasco?) That was also the time of $60-80 video games, and this is NOT at today's prices.

    That said, I think (maybe more along the lines of "hope") that the Nintendo of today is far different than the bully of years past. But to all the fanboys who think that Nintendo can do no wrong, they need to remember that these are still corporations we're talking about. Not people. They all will do what it takes to make money. Part of it, though, does mean treating customers with respect, and doing the right things for gamers, so that they'll come back to you time and time again. I think that's what Sony has lost (and arguably, that's what toppled Nintendo back then too).

    --
    -- jchenx
  14. Re: Nintendo is different under Iwata. by trdrstv · · Score: 3, Insightful
    Nintendo is a very different company since Yamauchi left. Iwata is a very different person with a different style of management, and different views.

    I'm not saying 'they can do no wrong', but Yamauchi retiring was a good thing for their company.

  15. Re:State of Sony's PS3 by InsaneGeek · · Score: 3, Insightful

    Too bad it won't take a 1080p signal. You've fallen for one of the great wonders of the video world, advertising scalled inputs resolutions while actual native input resolution being something different hidden amongst the fine print.

  16. Re: Nintendo is different under Iwata. by Abcd1234 · · Score: 4, Insightful

    And they've also been forced to do other questionable things simply because of the position they're in, such as making a gimmicky controller in an attempt to tap the non-gamer market.

    Yeah, no kidding! It's like that other gimmicky thing they came up with that was supposed to appeal to non-gamers... the, whatsitcalled, the... DS! Yeah, that's it! Man, where's that ridiculous thing, now, I wonder...

  17. Re:Can we declare Nintendo winners yet? by masklinn · · Score: 3, Insightful
    Yes, they were 3rd in the USA, but world-wide they were 2nd, just a bit ahead of the Xbox.

    They weren't. During the respective lifespans of the consoles, 21 million GameCubes were sold versus 24 million Xbox.

    Now benefit-wise, Microsoft lost $2b while Nintendo once again racked in profits.

    --
    "The way we can tell it's C# instead of Haskell is because it's nine lines instead of two." -- wadler
  18. Stringer is the wrong man for the job by gamer4Life · · Score: 3, Insightful
    He is a media guy in charge of an electronics company. The media division is why Sony is in this mess in the first place. DRM and anti-copying technology for the sake of protecting it's media business is what's killing Sony.

    "I bought shares in mighty Sony," cried a woman whose holdings had lost nearly two-thirds of their value. "What are you going to do about this?" It was hardly an unexpected question, and Stringer answered as best he could. Citing runaway ticket sales for Sony Pictures' The Da Vinci Code and the remarkable success of the Bravia digital TV line, he argued that Sony has entered a period of reemergence.

    His answer shows his thinking. All he knows is media. He has no idea that the media division is crippling the hardware. If it weren't for Sony's disdain for mp3s, they could have easily came out with an MP3 player and beaten the iPod. That's worth more than a whole year's worth of blockbuster movies.

    Blame Howard Stringer and his media cronies for infecting Sony. They've helped their positions by helping the media division at the expense of Sony's core strength - electronics.

  19. Re:Great, Sony vs. Microsoft by AKAImBatman · · Score: 4, Insightful
    Am I the only one who remembers the draconian censorship policies and ludicrous licensing fees that existed back when Nintendo was the only store on the block?
    No, but apparently I'm the only one who remembers why they were so Draconian.

    Hello? Video Game Crash of '83/'84 mean anything to anyone? What caused the crash? Too many poor quality cartridges hitting the market. What did Nintendo's contracts require? A limited number of cartridges per publisher.

    You also seem to forget that Nintedo was the first company to embrace third parties rather than tolerate them. Atari never liked Activision and IMagic. Mattel and Coleco wanted all the profits to themselves. Nintendo said, "sure, sign on the dotted line."
  20. Re:Great, Sony vs. Microsoft by AKAImBatman · · Score: 3, Interesting
    The crash had nothing to do with games being prurient; it had to do with them being bad.
    That's actually an urban legend. The Video Game Crash was a result of too many games for the market to support, combined with a general feeling by the public that they were just a fad. While the likes of E.T. and Pacman didn't help anything, they certainly weren't the cause. The cause was attempts by retailers to clear their excess stock by marking down large numbers of titles. This started a chain reaction that lead the public to stop buying console games and focus on computers.
  21. Sonys biggest problem by Tharald · · Score: 4, Insightful

    Interesting article, but I think it missed a bit on the cause. It starts out good with the line "PR fiascoes tend to be a sign that nobody's thinking about the customer". That is the main problem with Sony.

    Sony seems to have an extremely entrenched philosophy that says that the only way they can do well is to lock in the customer. Like the article touched on, the beta wars, the memory card wars, the mp3 wars... This attitude is amplified by their music division, and they do their utmost to lock the customers into proprietary formats. Putting this in front of giving their customers what they want is what is really killing Sony.

    It is a long time since I stopped buying Sony products, even though they do have really great stuff. I also actively discourage other people from buying Sony. They promote mp3 players that dont play mp3? What the f#%k!

    It is sad, but I think the unhealthy business attitude runs so deep in the company that there is no turning back. Personally I agree with the conclusion. For me its going to be the Wii.

    -TN

  22. Not inconsistant or wrong by SuperKendall · · Score: 3, Interesting

    Division sales fell 29% as fewer consumers bought PlayStation 2 consoles in anticipation of the next model.

    Yes, and yet the PS2 STILL managed to outsell the 360 every month except I think for last Christmas, which is what the original poster was saying. Even despite that drop the PS2 is selling in very large numbers.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Not inconsistant or wrong by JFMulder · · Score: 3, Informative

      Actually, I just thought about looking at Wikipedia, and I've found the information my other reply to my post was lacking. Seriously, Wikipedia is way better at finding information than Google now. Anyway... straight from Sony's website
      Playstation 1 shipping figures
      Playstation 2 shipping figures

      Now, before anybody get's excited, I know that consoles shipped != consoles sold, but they are a pretty good indicator of sales anyway. And if you go to a store right now, you'll see both PS2s and 360s sitting on store shelves.

      Sony started shipping PS2 on March 6, 2000. 10 months into the PS2 life span, they had shipped 6.4 million units. Microsft has shipped just north of 5 million consoles 10 months into their console life.

      At the same time, Sony kept on shipping Playstation 1s. The number of console shipped from march 31 2000 to december 31rst 2000 went from 71.2 to 79.61. This means they actually shipped (thus more or less sold, face it, no stores like to keep too much unsold consoles in stock), 8.41 million consoles, while the shipped only 6.4 million PS2s.

      After a year, Sony has shipped 10 million PS2 (interresting, since this is the figure Microsoft is shooting at for their first year with the 360). And shipped 9.31 million more PS1. So it nearly took a year for the PS2 to outsell the PS1.

      Now, fast forward a couple of years to the 360's launch. On June 30th, Sony had shipped roughly 6.22 million consoles since the 360 came out. 21 days later, Microsoft accounced they had shipped 5 millions.

      So where does that leave us. Yes, the 360 is selling less. Keep in mind that it's (360's retail at 400CAN$ and 500CAN$) between 3.1 and 3.8 times more costly than a PS2(129CAN$) and 4 to 5 times the price of a GameCube(100CAN$). On the other end, PS2(299US$) was 3 times PS1's price when it launched(99US$).

      So all of this considered, I think Microsoft is doing a pretty good job.