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I spoke to a lecturer over in the media section of a neighbouring university recently and he told me something rather startling. He said to me that he believes the next gen console war could be the end for the Playstation brand. He said it could also mean problems for HD-DVD and then he went on to explain why…
But how on earth can Sony topple from its perch? I mean really? The mighty Playstation Company produce less software than the Nintendo and Microsoft but the high sales of their format is just unbelievable.
But is that about to change?
Sony's new era is supposed to be great, and it looks it. Sony's E3 show defeated Nintendo's hastily put together production and Microsoft's grand celebrity unveiling. The games looked better, Sony themselves were more sophisticated and they didn't need a hobbit to tell everyone they are the best. The PSP highlights their new venture into handheld gaming and it is moving at a swift pace.
It is impossible to say Sony are losing, the PSP may not have had the impact it should have had but it is still selling amazingly and the PS2 is the run away leader world-wide.
But the warning signs are here.
Nintendo's DS has upset Sony... upset Sony a lot. Sony, when first unveiling the PSP, did not expect to go head to head with a new Nintendo handheld right from the word go.
Sony hoped that the PSP would outshine the GBA SP so much it was bound to win due to its fantastic graphics, brand name and look, regardless of the price. And this was rather likely. But the DS has confused matters, it is a new competitor, cutting projected sales and its low price of £99 has meant Sony have had to cut the planned price for the PSP. This means the PSP will make a far greater loss at the beginning than Sony originally intended.
In Europe and America the PSP could well beat the DS. It has had a good start in America and pre-orders are high in Europe. But in Japan it is a different story.
In Japan Nintendo's DS has firmly beaten the PSP. PSP is doing okay; it is selling solidly and is unlikely to go anywhere. But the DS is beating it by 2 million consoles overall and outsells the PSP by about 20,000 consoles every week. Why? Well the Japanese market is in a slump and the DS not only tries to rejuvenate things with its new ideas but there are also a load of non-games, appealing to those Japanese folk that buy consoles for random reasons like "gentle brain exercises". The DS is even outselling the Playstation 2.
The Nintendo Revolution, although unknown for the moment, could well do something similar. It'll be cheaper than the PS3, much cheaper, and it'll have random Japanese games (like the gentle brain exercises) that will mean the Revolution could do "A DS"... as in dominate Japan. The Japanese market is volatile and easily changes, Nintendo could well take dominance back in the home ground.
But not in Europe and America. Nintendo could well rule the Japanese roost again but they are far from dominating the west. No, the new threat is Microsoft.
The X-box, in the sense of weekly sales, is beating the PS2 in America and Europe. It makes sense as the PS2 has been out 2 years longer. But the X-box franchise has made a MUCH larger name for itself over the last few years, taking supporters from the Sony encampment. Sony has to take this threat seriously. The PS3 is a VERY expensive console to produce, it needs to sell around £500 to make a profit and Sony are gonna go for around £400 and make a loss. Simply so they don’t upset the punters.
But Microsoft are set to have their system priced even lower AND they have a vital head start. Sony will have to re-consider pricing if they want to keep up. If they do cut the price then the PS3's first year losses will be massive. But if they don't they'll let Microsoft in.
Sony are facing a problem. They are at risk of losing their vital monopoly, vital because Sony make losses (at the start anyway) on each system they produce. Sony does not produce the software of Microsoft and Nintendo. Nintendo do not need to sell at the rate of the Playstation because Nintendo’s mass of software sells so well on its system (people buy Nintendo consoles for Nintendo games). The same, although to a lesser extent, applies to Microsoft (people buy the X-box for Live and Halo).
The Playstation brand is strong. Yet at the moment Nintendo are the number one games company in Japan and Microsoft are making a larger name for itself year in year out. As my lecturer friend put it “Nintendo are hot right now in the east and Microsoft are hot right now in the west… Sony are falling out of favour”.
Is this the beginning of the end? Or is the PS3 simply gonna destroy all?
Here’s to the future
Dringo.
The conspiracy theorist inside me can not help but mention that Microsoft are making it possible to send messages to DS through the 360 and have allowed their company, RARE WARE, to develop DS games. To say the two are working together to defeat Sony is a ridiculous story to spin, but it is interesting to see these rivals getting along so well.
But how on earth can Sony topple from its perch? I mean really? The mighty Playstation Company produce less software than the Nintendo and Microsoft but the high sales of their format is just unbelievable.
But is that about to change?
Sony's new era is supposed to be great, and it looks it. Sony's E3 show defeated Nintendo's hastily put together production and Microsoft's grand celebrity unveiling. The games looked better, Sony themselves were more sophisticated and they didn't need a hobbit to tell everyone they are the best. The PSP highlights their new venture into handheld gaming and it is moving at a swift pace.
It is impossible to say Sony are losing, the PSP may not have had the impact it should have had but it is still selling amazingly and the PS2 is the run away leader world-wide.
But the warning signs are here.
Nintendo's DS has upset Sony... upset Sony a lot. Sony, when first unveiling the PSP, did not expect to go head to head with a new Nintendo handheld right from the word go.
Sony hoped that the PSP would outshine the GBA SP so much it was bound to win due to its fantastic graphics, brand name and look, regardless of the price. And this was rather likely. But the DS has confused matters, it is a new competitor, cutting projected sales and its low price of £99 has meant Sony have had to cut the planned price for the PSP. This means the PSP will make a far greater loss at the beginning than Sony originally intended.
In Europe and America the PSP could well beat the DS. It has had a good start in America and pre-orders are high in Europe. But in Japan it is a different story.
In Japan Nintendo's DS has firmly beaten the PSP. PSP is doing okay; it is selling solidly and is unlikely to go anywhere. But the DS is beating it by 2 million consoles overall and outsells the PSP by about 20,000 consoles every week. Why? Well the Japanese market is in a slump and the DS not only tries to rejuvenate things with its new ideas but there are also a load of non-games, appealing to those Japanese folk that buy consoles for random reasons like "gentle brain exercises". The DS is even outselling the Playstation 2.
The Nintendo Revolution, although unknown for the moment, could well do something similar. It'll be cheaper than the PS3, much cheaper, and it'll have random Japanese games (like the gentle brain exercises) that will mean the Revolution could do "A DS"... as in dominate Japan. The Japanese market is volatile and easily changes, Nintendo could well take dominance back in the home ground.
But not in Europe and America. Nintendo could well rule the Japanese roost again but they are far from dominating the west. No, the new threat is Microsoft.
The X-box, in the sense of weekly sales, is beating the PS2 in America and Europe. It makes sense as the PS2 has been out 2 years longer. But the X-box franchise has made a MUCH larger name for itself over the last few years, taking supporters from the Sony encampment. Sony has to take this threat seriously. The PS3 is a VERY expensive console to produce, it needs to sell around £500 to make a profit and Sony are gonna go for around £400 and make a loss. Simply so they don’t upset the punters.
But Microsoft are set to have their system priced even lower AND they have a vital head start. Sony will have to re-consider pricing if they want to keep up. If they do cut the price then the PS3's first year losses will be massive. But if they don't they'll let Microsoft in.
Sony are facing a problem. They are at risk of losing their vital monopoly, vital because Sony make losses (at the start anyway) on each system they produce. Sony does not produce the software of Microsoft and Nintendo. Nintendo do not need to sell at the rate of the Playstation because Nintendo’s mass of software sells so well on its system (people buy Nintendo consoles for Nintendo games). The same, although to a lesser extent, applies to Microsoft (people buy the X-box for Live and Halo).
The Playstation brand is strong. Yet at the moment Nintendo are the number one games company in Japan and Microsoft are making a larger name for itself year in year out. As my lecturer friend put it “Nintendo are hot right now in the east and Microsoft are hot right now in the west… Sony are falling out of favour”.
Is this the beginning of the end? Or is the PS3 simply gonna destroy all?
Here’s to the future
Dringo.
The conspiracy theorist inside me can not help but mention that Microsoft are making it possible to send messages to DS through the 360 and have allowed their company, RARE WARE, to develop DS games. To say the two are working together to defeat Sony is a ridiculous story to spin, but it is interesting to see these rivals getting along so well.
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Nintendo has already announced that it's internet service will be free. You just whack it into a broadband connection and away you go.
I was also watching the E3 Nintendo conference on the web, and just so you know, those without a wireless internet connection or a free Wi-Fi hotspot for the DS will be able to buy a USB connector and access DS online via a broadband internet connection.
Me, I have 2.2mbps...I'm all set...
I was also watching the E3 Nintendo conference on the web, and just so you know, those without a wireless internet connection or a free Wi-Fi hotspot for the DS will be able to buy a USB connector and access DS online via a broadband internet connection.
Me, I have 2.2mbps...I'm all set...
Bonus wrote:
> Dringo wrote:
> it is now Sony that are lagging behind online wise
>
> Read FMs post, that explains Sony's stance to online gaming, i.e. let
> the publishers and developers DIY it :).
>
> We still don't know if that's how Nintendo will do it too and have
> their own system for only their own games, which isn't still much
> more restrictive than the one system for everygame Xbox Live :).
Not true, Nintendo are launching a full service in the vain of X-box live. Sony letting the developers do it? where have I seen this before? Oh yes with the Gamecube!
And I read an article recently talking about how wi-fi is massive in America and Nintendo and Sony are right for using it. Microsoft are as well just aren't hyping it as much.
> Dringo wrote:
> it is now Sony that are lagging behind online wise
>
> Read FMs post, that explains Sony's stance to online gaming, i.e. let
> the publishers and developers DIY it :).
>
> We still don't know if that's how Nintendo will do it too and have
> their own system for only their own games, which isn't still much
> more restrictive than the one system for everygame Xbox Live :).
Not true, Nintendo are launching a full service in the vain of X-box live. Sony letting the developers do it? where have I seen this before? Oh yes with the Gamecube!
And I read an article recently talking about how wi-fi is massive in America and Nintendo and Sony are right for using it. Microsoft are as well just aren't hyping it as much.
What is this guy a lecturer in?
And if you say anything related to the games industry, I'm going to laugh my big hairy 'arris off!
And if you say anything related to the games industry, I'm going to laugh my big hairy 'arris off!
Dringo wrote:
> it is now Sony that are lagging behind online wise
Read FMs post, that explains Sony's stance to online gaming, i.e. let the publishers and developers DIY it :).
We still don't know if that's how Nintendo will do it too and have their own system for only their own games, which isn't still much more restrictive than the one system for everygame Xbox Live :).
> it is now Sony that are lagging behind online wise
Read FMs post, that explains Sony's stance to online gaming, i.e. let the publishers and developers DIY it :).
We still don't know if that's how Nintendo will do it too and have their own system for only their own games, which isn't still much more restrictive than the one system for everygame Xbox Live :).
Dringo wrote:
> Well Sony are jumping on the Wi-Fi bandwagon but you're right, it is
> cobboled.
You said that like Wi-fi for the PS3 will be any different than broadband you already have which needs a wire, but it's not, all it means is you need to get an extra piece of equipment to get it online, a router or access point at an additional cost to the user.
It's not and Kutaragi has already said the Wi-fi router capability has been axed from the PS3 to cut costs.
It also uses Bluetooth for the pads, yuk :D.
> Well Sony are jumping on the Wi-Fi bandwagon but you're right, it is
> cobboled.
You said that like Wi-fi for the PS3 will be any different than broadband you already have which needs a wire, but it's not, all it means is you need to get an extra piece of equipment to get it online, a router or access point at an additional cost to the user.
It's not and Kutaragi has already said the Wi-fi router capability has been axed from the PS3 to cut costs.
It also uses Bluetooth for the pads, yuk :D.
Sony don't have as much money as Microsoft it's becoming a war of attrition: the one that can keep throwing money whilst making a loss wins.
I doubt Sony will lose, they might lose market share but that's all.
What is shocking is that for every percentage they gained in game sales in Q2 (65%) they lost $1 million on PS3 R&D costs ($65 million)*.
*Source: Gamespot.
I doubt Sony will lose, they might lose market share but that's all.
What is shocking is that for every percentage they gained in game sales in Q2 (65%) they lost $1 million on PS3 R&D costs ($65 million)*.
*Source: Gamespot.
Well Sony are jumping on the Wi-Fi bandwagon but you're right, it is cobboled.
The recent GAMES TM point out how Nintendo have done a full 360 and it is now Sony that are lagging behind online wise. They have some ideas but no real desire to follow it through.
The recent GAMES TM point out how Nintendo have done a full 360 and it is now Sony that are lagging behind online wise. They have some ideas but no real desire to follow it through.
Sony don't have as much money as Microsoft it's becoming a war of attrition: the one that can keep throwing money whilst making a loss wins.
I doubt Sony will lose, they might lose market share but that's all.
I doubt Sony will lose, they might lose market share but that's all.
I see Sony not learning from their mistakes in 2 vital areas:
1) Online - Sony's model allows freedom for developers and free online gaming, but there's no consistency; everything's cobbled together, some games require Gamespy accounts, others require EA logins, Ubisoft logins, Central Station logins, the whole thing is a pain in the proverbial. There's nothing to suggest that the PS3 will be any different despite gamers telling Sony to change it ever since the network adaptor was released. The current Sony model is simply blown out of the water compared to Live, and with Microsoft strengthening the Live features for the XBox360 Sony have a lot of catching up to do, and yet we've heard nothing of what they've actually done for the PS3.
2) Diversity - gamers really just want to play games, surely? To meet this demand, manufacturers just need to make a games machine that facilitates this. XBox360 seems to do just that at a reasonable price, the PS3 does a host of other things, as did the PSX, and is likely to sell about as well as the PSX because of it.
The most damning evidence I can think of to indicate that Sony are about to become the 3rd place (rather apt considering their advertising in the past) is that if I can switch to XBox after being a solid PlayStation fanatic for a decade, so can many others.
1) Online - Sony's model allows freedom for developers and free online gaming, but there's no consistency; everything's cobbled together, some games require Gamespy accounts, others require EA logins, Ubisoft logins, Central Station logins, the whole thing is a pain in the proverbial. There's nothing to suggest that the PS3 will be any different despite gamers telling Sony to change it ever since the network adaptor was released. The current Sony model is simply blown out of the water compared to Live, and with Microsoft strengthening the Live features for the XBox360 Sony have a lot of catching up to do, and yet we've heard nothing of what they've actually done for the PS3.
2) Diversity - gamers really just want to play games, surely? To meet this demand, manufacturers just need to make a games machine that facilitates this. XBox360 seems to do just that at a reasonable price, the PS3 does a host of other things, as did the PSX, and is likely to sell about as well as the PSX because of it.
The most damning evidence I can think of to indicate that Sony are about to become the 3rd place (rather apt considering their advertising in the past) is that if I can switch to XBox after being a solid PlayStation fanatic for a decade, so can many others.
Bonus wrote:
> And I see Nintendo's console being everyone's favourite 2nd choice
> system once they have the dough for the retro value and hopeful low
> price ;).
Going on the recent PSP/DS war I can see Nintendo re-claiming their Japanese throne which will upset Sony.
But I am also aware that the PS3 could still gather as many sales as the PS2 did. The Revolution, like the DS, is likely to appeal to "non gamers", therefore not necessarily infringing on Sony's fan base.
Microsoft are hot right now... but is that because Sony's hardware is 5 years old?
> And I see Nintendo's console being everyone's favourite 2nd choice
> system once they have the dough for the retro value and hopeful low
> price ;).
Going on the recent PSP/DS war I can see Nintendo re-claiming their Japanese throne which will upset Sony.
But I am also aware that the PS3 could still gather as many sales as the PS2 did. The Revolution, like the DS, is likely to appeal to "non gamers", therefore not necessarily infringing on Sony's fan base.
Microsoft are hot right now... but is that because Sony's hardware is 5 years old?
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