Editorial: PS3: Howard Stringer – no drop in price this year

Nintendo is not hurting Sony says CEO Howard Stringer

by XboxOZ360

©2008 Grant Smythe:

Stringer: No price drop on PS3 in 2008

Well if MS ever needed an opportunity to strike, then now is the perfect time. A definite price drop by Christmas season could see many more 360’s just run right off the shelf than PS3’s this coming holiday season.

Howard Stringer, CEO of Sony said that there will be no price cuts on the PS3 at the moment as they are still well in the red with the PS3 and getting to a point of getting money back on the PS3, he jokingly commented “Not for as long as I live. It will certainly take some time.”

In fact, the PS3 has Sony in the red to the tune of $US3.3 billion as of its annual ‘08 fillings since its launch, a factor that was definitely pushed that way by the godfather of the Playstation Ken Kutaragi. It was he who single-handedly went headlong into expending every cent possible Sony Games had and more on the PS3’s development, even at the request (read demand) of the CEO Howard Stringer himself to pull in the reins.

With Kutaragi basically ignoring the CEO (who basically runs Sony including Sony Games), and blatantly doing as he pleased. Which also include dropping the Retail Price of the smaller PS3 prior to its launch. Something that really ticked Howard Stringer off to no end. As it was loosing money anyhow, let alone at an even lower retail price point.

With Sony so deep in the hole with regards to getting a return on the PS3, they do need to get as much back as humanly possible, yet at the same time, make the purchase an attractive one for not only movie goers, but gamers as well.

The PS3 has followed much the same pattern as the PS2 did initially in its life. Being sold primarily as a movie delivery box rather than a gaming device as its primary function. The PS2 was purchased especially in Japan as a DVD player for many months (almost the first 12 months actually) which saw sales of games be a just small % of sale in comparison to Movies sale alongside the PS2.

Developers were demanding something be done and putting through as many rubbish games as they could to get sales, as that is what they do, make games, not movies. It turned around, but it took time. They had little opposition and moved headlong into the gaming arena. Never looking back.

The PS3 had a very similar initial stage, and is only now (over the last several months) began to gain a greater share of game sales for its platform. It’s attachment rate is still relatively low in comparison to MS’s and Nintendo’s and that is what makes a huge difference in Publishers and developers in making games for any particular platform.

The big difference now is, well – they have some very solid and formidable competition this time round. Competition that are out to secure their own foothold in the lounge rooms of today’s families, NOT the bedrooms of way-ward teens and pre-teens. The new war zone is the Lounge and HD Entertainment family rooms of the world.

Hence the latest comments from Sony’s David Reeves about Exclusivity being a thing of the past. And he’s not the only one saying that either at Sony HQ.

With MS having a solid 7 or 8.8 :1 attachment rate (depending on sources = GameStop) on its games per console, both Publishers and developers can see the need to branch out and make their titles more multiplatform friendly.

The graphics on the both major console are basically the same now, with BioShocks developers saying that even with the Blu-Ray, they still see little change in the games visuals. Many games look either identical or marginally better from one console to the other now. Swaying from one side of the fence to the other, basically balancing each other out really.

Nintendo has the lions share of the gaming market, a complete opposite to it’s last iterations of consoles. Due mainly to its casual market and is in no short resulting from their huge female gamer demographic and families via such expansive titles as WiiFit and various family orientated games like Wii Sports.

When interviewed recently about the differences, Stringer had this to say

“The Wii is not succeeding at our expense — it is not hurting us.” further commenting about the Wii which he described as a well-made device that captured a new target group, a market that Sony once held but should and one they should have been more vigilant about such as the SingStar Franchise. “Perhaps we neglected to pursue that avenue. PlayStation games are rather designed for those who play a lot. Although it’s a different strategy, it pays off.

It’s an interesting time right now for home consoles, what with Sony working away quietly in the background on the PS4, MS right into the x720 and Nintendo hard at another version of the Wii, which is what Nintendo do a lot of. That is, come out with regular hardware changes, which are readily purchased by the Nintendo faithful every time.

There’s no bleating from supporters that they should stick to one lot of hardware and stay that way for the next 5-10 years (hello Sony and MS fanbois everywhere this is aimed at you). Nintendo fans just accept that Nintendo know what they are doing and are simply wanting to keep ahead of the technological and the ever changing demographic curve.

Sony and MS Fanbois on the other hand are outraged that the manufacturers even THINK of changing their systems and demand reimbursement if they dare introduced a new console before 5 – 10 years are up . . . which is ridiculous to the extreme. Grow up boys-n-girls, companies NEED to change and change rapidly in today’s rapid technological advances.

MS will no doubt drop the price of the 360 prior to Christmas now that it’s 60 gig unit is readily available at stores.They have a little more push now to drop their price, especially if Sony are not dropping theirs until at least early ‘09.

A Wii Twist on WiiFIt

Oh, and another reason to get a Wii, no pun intended, although, I must warn, this is for adult use boys-n-girls. And interesting ‘twist’ too WiiFit with Emma Frain doing Wii Fither way.

©2008 Grant Smythe: