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Buy a PlayStation 3 and Sink Sony

sonnyweathers writes "There has never been a more perilous time for Sony than 2006. But if you think you can save the company by buying PlayStation 3 consoles, you're wrong. Analyst Evermore believes that selling 6 million PS3 consoles will make Sony a ripe target for takeover — perhaps even by Microsoft."

11 of 441 comments (clear)

  1. Even better... by BigDork1001 · · Score: 5, Insightful

    ... don't buy it and just let it sit there on the store shelves collecting dust. Taking this approach also saves you $600.

    --
    "Armed forces abroad are of little value unless there is prudent counsel at home" - Cicero
  2. Strange by Dan+East · · Score: 5, Insightful

    Boy, that makes a lot of sense. If Sony makes "6 million PS3 units before April", and sells them all, then they recoup part of their expense. If they don't sell any, then they are somehow better off not recouping anything at all? More sensationalism.

    Dan East

    --
    Better known as 318230.
    1. Re:Strange by DerGeist · · Score: 4, Insightful
      I don't think you fully understand how this is supposed to work. You see, Sony is selling the PS3 consoles with the expectation that someone is going to buy them (at a loss to Sony) and then buy games (i.e., big profits for Sony).


      Think of a generic fast-food restaurant. Imagine they have a "value menu" with the Stinkburger Deluxe for only $0.99, but it costs $2.99 to produce. Drinks, however are $2.50 and cost about $0.15 to produce. Similarly fries are $0.99 but cost only $0.10 to produce. The restaurant will go out of business if every customer enters, purchases one Stinkburger Deluxe, and leaves. But most people aren't satisfied just downing a Stinkburger, they want fries and a drink too. That's the idea here; it's called the "razor and blades business model."

      So if no one buys a PS3, Sony obviously won't produce six million. If people buy them and buy NO games, NO blu-ray discs, and NO accessories (extra controllers, etc.) then Sony will be in quite a bit of trouble.

    2. Re:Strange by Scrameustache · · Score: 4, Insightful

      If people buy them and buy NO games, NO blu-ray discs, and NO accessories (extra controllers, etc.) then Sony will be in quite a bit of trouble.

      If Gamera the giant firebreathing space turtle lands on their offices, they'll bit in quite a bit of trouble too, and that's about as likely to happen.

      Who the hell is going to buy a 600$ piece of electronic equipment out of spite with no intention of using it?

      --

      You can't take the sky from me...

  3. Re:"Save Sony?" by Dan+East · · Score: 4, Insightful

    Actually, that's a strategy that could possibly save Sony -- abandon DRM loudly and publicly, and tout themselves as the Kings of Unrestricted Media. A big campaign of "We trust you to not steal our stuff, but Microsoft and Apple think you're thieves."

    Sony is too big, and has an vested interest in too many areas. Thus they cannot serve only the consumer in any of their divisions. As long as we see movies with the word "Sony" in the opening credits, we can be certain that Sony hardware will embrace DRM to the fullest extent possible.

    If Sony could have their way, the only media and hardware channel between the movies they produce and the consumer would be Betamax®, oops, I mean Memory Stick®, oops, I mean UMD®, oops I mean Blue-ray®. And if someone is reading this 5 years from now, insert whatever DRM infected crap they're currently pushing at the end of that sentence.

    Dan East

    --
    Better known as 318230.
  4. Re:The Console Makers Hate Me by Spad · · Score: 4, Insightful

    Luckily for Nintendo, they sold the Gamecube at a profit. It's a little known business trick in the console industry, but not selling your products at a loss is a great way to make money.

  5. Kutaragi just doesn't get it by Y-Crate · · Score: 5, Insightful
    "Our ideal," Kutaragi said, "is for consumers to think to themselves, 'OK, I'll work more hours and buy it.' We want people to feel that they want it, no matter what."
    I'm not one to assume that I deserve to get a PS3, 360 or Wii, but Kutaragi's comments border on insulting.

    Yes, I know that if I want to purchase consumer goods that I need to work to earn money to be able to afford them. I have no problem with this, the problem I have is that Kutaragi's attitude is one of "The price is not our problem, the price is your problem, do something about it."

    If you own a business, and your product is rejected by the market fot being too expensive, then you either deal with the lost sales or change your pricing structure. If you cannot do the former because it would hurt your bottom line, and you cannot do the latter because your have designed a product with a very high materials cost, then it's your problem, not that of your potential customers.
  6. Re:they are sony minions I tell you! by Anonymous Coward · · Score: 5, Insightful

    The saddest thing is that Microsoft is probably going to drop the price of the Xbox to $300 or $200 the moment the PS3 hits the stores. Consumers will have to make the choice between many $50 games on a $300 system or a couple $100 games on a $600 system. I think the choice is obvious. The Playstation line had a great run but complete corporate incompetence will probably kill it during this iteration. Pity, but that's life.

  7. Re:"Save Sony?" by NDPTAL85 · · Score: 5, Insightful

    You're one of those funny Slashdot people who thinks the masses would care about DRM even if they knew what it was in the first place, aren't you?

    Think about what you just said. "abandon DRM loudly and publicly." Go outside your home or office right now and run up to 10 people and ask them if they know what DRM means. Help them out even, let them know DRM stands for Digital RIghts Management but tell them nothing more. You'll be lucky to find one person who can tell you what DRM means. So how exactl would your suggestion help Sony again? And why is Apple so successful despite its use of DRM with iTunes?

    --
    Mac OS X and Windows XP working side by side to fight back the night.
  8. Re:What would Microsoft do with all that content? by GaratNW · · Score: 4, Insightful

    Being a martyr is all fine and dandy. But, honestly. If every white collar worker in America stopped working for corprorations that did one or more things that the individual dissaproves of, we'd have a nation of corporations with only exectuive management left working for them, and an unemployment rate of 99.9%. I left Microsoft a number of years ago. Not for any moral or ethical reasons. They do stuff I think is great (still), and do stuff I think is horrible (still). How is this any different from IBM, Oracle, Intel, AMD, Sony, the rest of corporate america? Experience has taught most people that, the way to make something better, is not to quit on ethical grounds and send yourself and your family to the poor house. Work on making things better, and if at the end of it, you no longer can handle it any more, then make that decision to leave. But, that's a pretty santimonious attitude you have there, no matter how you look at it, Moofie.

  9. Re:they are sony minions I tell you! by mikeisme77 · · Score: 5, Insightful
    There's a difference in that though: DVD was already an established standard and had clear benefits over VHS (plus it didn't require additional equipment to get those additional benefits). Blu-Ray (and HD-DVD) still have yet to become proven standards/successors to DVDs, currently lack any additional benefits (beyond picture/audio quality), AND require most consumers to purchase additional equipment to see any benefit from them.

    Of course, on the other hand, MiniDisc was actually successful in Japan... so something has to be said about Sony's mindshare there.