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Sony And The No-Confidence Vote
Posted by
Zonk
on Mon May 22, 2006 12:12 PM
from the spending-your-goodwill-currency dept.
from the spending-your-goodwill-currency dept.
Sony continues to spend the goodwill it has achieved over the last generation of consoles. As widely reported over the weekend, last Friday CEO for SCE Europe David Reeves spoke to the press. "We have built up a certain brand equity over time since the launch of PlayStation in 1995 and PS2 in 2000 that the first five million are going to buy it, whatever it is, even it didn't have games." This 'you'll buy it anyway' attitude has further annoyed gamers already rankling from the announced pricetag. Next Gen and IGN talk about the two sides of the coin, with IGN laying into the company for the lack of HDMI output in the cheaper model, and Next Generation saying that Sony is far from defeated.
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News: Sony Pushes Back Release For Blu-Ray Players 262 comments
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Pride Goeth Before A Fall (Score:5, Insightful)
Tying to sell a console without games is like trying to sell a gun without ammunition. Reeves' blithe assertion that their 'brand equity' will induce gamers to shell out 600 clams for their console, despite the dearth of available games, is pure fantasy. There are other consoles out there, that are far cheaper, and have games now. I personally can't imagine how Sony's going to move any of these consoles before the games become available.
That said, perhaps Sony would have a better chance of moving said consoles if it didn't take its customer base for granted in such a shockingly flippant way. The $600 price tag is bad enough, but Reeves' interview with Computer and Video Games probably cost Sony a lot of business from spite alone.
Also, from the IGN article: Sony, if you've got so much frelling 'brand equity' that you can try to sell us a console for $600 without any games, why do you feel compelled to market a separate, 'tard-box'?
Re:Pride Goeth Before A Fall (Score:2, Informative)
Basically, Sony is making many of the exact same mistakes Sega made with the Saturn. Given that Sony was Sega's "$299" antagonist at the time, you'd think they'd know better.
Re:Pride Goeth Before A Fall (Score:4, Insightful)
Yeah, you'd think that being famous for "winning" E3 merely by uttering a price that undercut the competition by $100 would make them realize that price does matter.
Parent
Re:Pride Goeth Before A Fall (Score:2, Insightful)
Re:Pride Goeth Before A Fall (Score:3, Funny)
narcissism (Score:5, Insightful)
After Narcissus, the fictional Greek hero who became obsessed with his own reflection.
Pronunciation
- 'när-s&-"si-z&m
Nounnarcissism
1. Egoism; egocentrism.
2. Love of oneself.
3. Sexual desire for one's own body.
--
I grew up on a farm. If there's one thing that pisses me off, it's people who walk around with their noses in the air. Yuppies, politicians, etc. are prone to this behavior.
Sony's elitism sure is getting underneath my skin. I enjoyed their console but anymore of this "only-the-rich-are-worthy-of-experiencing-this" attitude and I'm going to take my ball (money) and play elsewhere.
They do realize that many of their customers also buy their competitor's products, right? By stomping all over Nintendo and Microsoft, they may be alienating a large selection of their consumer base.
Re:narcissism (Score:2, Insightful)
Re:narcissism (Score:3, Funny)
Yeah, everyone will buy one. Suuuuure. (Score:4, Interesting)
Granted I don't have my finger on the pulse of the entire world, but the people I hang around have nothing but bad stuff to say about the PS3. Sorry the market's so fickle, Sony, but 2001's "xbox is heavy" and "Gamecube is for kiddies" is this year's "PS3 is expensive"
Re:Yeah, everyone will buy one. Suuuuure. (Score:2, Interesting)
Re:Yeah, everyone will buy one. Suuuuure. (Score:3, Insightful)
Really? Hindsight is from the present perspective where we are all very familiar with the big benefits of DVDs over VHS.
But in 2000, most people had not seen DVD in action, players were ridiculously expensive, and more importantly, so were DVD movies. It had barely entered into the equation in PCs.
The "common sense" of choosing DVD over VHS was not a definitive indicator of DVD's success - mainly because of price.
One could even
Re:Yeah, everyone will buy one. Suuuuure. (Score:4, Informative)
Not true. I built a computer with a DVD drive and MPEG decoder card in 1998, and quite affordably. By 2000, consumer DVD players were in the sub-$200 range and DVDs were already taking significant amounts of shelf space away from VHS in retail stores and video rental outlets. And at no time did the typical DVD movie EVER sell for about $30 or so.
By 2000, Circuit City's DIVX experiment had already failed.
Parent
Re:Yeah, everyone will buy one. Suuuuure. (Score:5, Insightful)
Nintendo were full of themselves, sublimely arrogant and they snubbed everyone around them, released very expensive games, and were convinced they could do as they like. Sega was the same, pushing out cookie cutter games and walking around like nothing could hurt them.
Sounds familiar?
Within one generation their empires collapsed. Sega went bust (effectively) and Nintendo fell to 3rd place in the home console market.
There is no reason this cant happen to Sony, and as you say it based purely on popular opinion. Sony became cool and shot to number one, and now - they seem anything but.
The real question is, not whether they will fall, but if they will survive it. I doubt they will go bust (but financially they are no where near the shape the public thinks they are) but I do expect them to lose a large amount of market share.
This is the best thing that could happen to them, whilst sega dropping out of the hardware market has crippled them, Nintendo's 3rd place is the best thing that could happen to us the cosumers. The amount of innovation and free thinking thats come out of them, now they know they have to try, is outstanding.
I think Sony could do with its own wake up call.
Parent
True up to a point (Score:5, Interesting)
But what is even more amazing is how unbalanced fanboys can be.
For totally nuts check this out. A lot of 360 owners slam Sony for not having the cool controls of the Wii. Hello? Doesn't the 360 have zero innovation in its controller? So you slam Sony for adding only 1 small feature vs Nintendo redesign while being the proud owner of a console that has that same old controller that been used for the last decade?
Pot calling kettle black?
I seen a lot of complaining about 360 not being fully backwards compatible. Both the PS3 and Wii promise to be different so how come MS ain't slammed for that?
It seems that a lot of people got something against Sony. Perhaps it is just a David vs Goliath syndrome, we love to see the big guy taken down a notch and perhaps it has to do with the root kit (then again if you run windows surely you gotten used to be rooted by now)
However fanboys vendetta's do not make accurate sale predictions.
So far as I can see the consoles all got their weaknesses.
Will it matter? We will know in 2010 when the next-next generations consoles will start to be talked about.
In short the real weakness of the PS3 is that it might just not be able to actually produce any games that are richer then the 360 or even worse, the Wii. Rich for me means AI, Physics, unit count, size of area etc etc. NOT resolution.
Not that any of the console companies are likely to care but I predict that PC gamers will once again look at consoles and go, "nice game kid". Pat the player on the head and go play a real game.
Or put another way. Console fanboys eat my keyboard!
Parent
Re:True up to a point (Score:3, Insightful)
Thankyouverymuch.
(To spell it out: please, all of you, stop identifying w
Re:Difference this time (Score:3, Funny)
Woah, that's weird (Score:5, Funny)
Re:Woah, that's weird (Score:3, Funny)
Crown isn't hereditary, really (Score:3, Insightful)
Don't think for a moment, that it's something completely different with Sony. The attitude they present toward their customers is just ripe for detronisation. And it's a good thing...
Nothing to see, move along.
Robert
Goodwill equity does not exist in a market (Score:4, Insightful)
I see it every year -- some kid takes over pop's huge business because the old man had a heart attack. The kid (usually in his 30s or 40s) drives the business into the ground and below within 2 years. He believed that the business didn't need to constantly re-win back old customers solely because they'd been around for years. Sony is no different than the businesses I see failing every year, even ones who have been around for 100 years and are now gone.
Every time a customer makes a purchase, it is with an expectation. No law is needed to protect the customer, because the customer can destroy a business in no time -- if each and every customer who is "hurt" by a previous transaction refuses to make a future one. Does "goodwill equity" give a customer a reason to buy again? Certainly. Does it mean the customer will be willing to accept one grievance or one mistake? Absolutely NOT.
To think that previously happy customers will forgive a mistake is to think that life is all happy-happy puppy-love bubble-gum and kisses. It isn't. This is business. You give the customer what they're paying for, or you go away.
Sony, go away. Please go away. You made too many mistakes, and the only goodwill you should be seeing is the clothing charity.
Re:Goodwill equity does not exist in a market (Score:2)
I see it every year -- some kid takes over pop's huge business because the old man had a heart attack. The kid (usually in his 30s or 40s) drives the business into the ground and below within 2 years
Which is ironically exactly what happened to my dad's business - altohugh to be fair I wasn't involved so it wasn't me making any mistakes. Customers can be a wii (get it?) bit fickle about what they buy although I do think that an amount of brand loyalty exists. Sony has quite
Re:Goodwill equity does not exist in a market (Score:2)
Re:Goodwill equity does not exist in a market (Score:3, Interesting)
Of course, this assumes the customer realizes he's been hurt. Or perhaps knowingly hurting a small percentage of your customers is acceptable because it's more cost effective. Or perhaps you've just taken over a business with a good reputation and are perfectly happy to destroy the business in a year or so, har
Re:Goodwill equity does not exist in a market (Score:3, Interesting)
"Agreed, but you forgot the music industry. They've been seriously hurting artists and customers for decades, and the market still hasn't corrected."
I don't think he did. The market is self-creating in their case, but it is taking longer because they've had a complete monopoly for so long and they still have a lot of popular artists on their side. There simply wasn't an alternative in their case, but now there are alternatives and more alternatives keep arising. But it is happening. I think that proves hi
Re:Goodwill equity does not exist in a market (Score:3, Insightful)
There is a value in a brand, and there is a monetary value associated with it. How much is it though? No one knows for sure. The simplest way really is to check the stock market: tally all assets and revenue, subtract from capitalization, and you get some left over stuff that can be qualified as the value that people associate with
They Had My Money (Score:5, Insightful)
Then they announced it would cost $600. And did I mention that there aren't really any games I really want to play? Just MGS4 and maybe Assassin's Creed.
Nice try Sony. You lost your brand equity. It was alredy eroeded with the PSP (how about some good games for once?). I was full-on Nintendo before all of this. I still like Nintendo best and will buy their console.
But I won't be buying a PS3 for over $400. I may even wait for $300. I won't be buying a 360 for over $300.
Three consoles, two shot themselves in the foot (as far as I'm concerned). Who will win? The expensive one, the MORE expensive one, or the reasonably priced one with about a dozen games that I want to play?
Hmmmmmm......
Re:They Had My Money (Score:2)
Re:They Had My Money (Score:4, Interesting)
But Nintendo is still only charging $250 or so
And $600 just strikes me as WAY TOO MUCH. Even if it is not that bad historically. I could buy a decent laptop for that. I could buy a new HDTV. I could pay 2 months of car payments on a VERY nice car.
If MS wanted $400, Sony wanted $600, and Nintendo wanted $400 then I might be willing to pay more. But if Nintendo can sell their console (that I REALLY want) for $250, then Sony won't get me to buy their "ultra powerful do all" console (that I'm somewhat interested in) for 2-3x that.
And that assumes Nintendo doesn't go with $200 (1/3 the price of a PS3) or $150 (1/4 the price).
Parent
Re:They Had My Money (Score:2)
the PSP won't have a whole lot of good games for another year, it will mainly be platformers and titles that lauch for everything. If you'd looked into it before buying you could have saved yoruself the trouble of buying it a whole year too early. In a lot of ways the psp is a lot like the original PSX that way. If you can manage to hold onto your psp for another year there will be a lot of decent games worth playing for it. in the
HDCP not needed for HD? (Score:3, Interesting)
http://arstechnica.com/news.ars/post/20060521-688
http://www.engadget.com/2006/05/22/studios-wont-d
Re:HDCP not needed for HD? (Score:2)
The problem is that by that time, HDCP will be thoroughly defeated as well.
Re:HDCP not needed for HD? (Score:2)
And for those whining "what about two years from now when I max out my credit card to get a big-ass plasma TV set?", I say buy one of the $100 BR players which will probably have better features by then anyhow. I have never used a PS2 or an Xbox as a DVD player, and I never will use a PS3 or X360 to play HD video discs.
Could Sony ditch the Blue-Ray? (Score:2)
Re:Could Sony ditch the Blue-Ray? (Score:3, Insightful)
They should be ditching it on at least the $499 'tard box' version, since it will not be able to play the movies in 1080p High-Def when ICP starts being implemented on Blu-Ray disks.
But of course, this isn't about marketing a useful product...this is about pushing a standard.
Re:Could Sony ditch the Blue-Ray? (Score:2)
This doesn't make any sense at all.
The BD drive in the PS3 is being used for games, not just movies. Developers will now have 50GB of texture storage, as opposed to 4.7GB (realistically, due to streaming limitations on DVD's second layer). Sure, it's true that most games don't use up even a full DVD, but a lot of the biggest g
Blu-ray: its raison d'etre. Standards and Sony. (Score:3, Insightful)
Sony's M.O. with the PS3 is awfully simple: they desperately want to "leverage" their existing PS/PS2 market dominance to win the next-generation DVD standard war. Sure, they needed to come out with another console, because the market expected one -- but if there's anything on Sony's corporate mind other than a win for Blu-Ray, I don't see it. Everything else about the PS3 is more of the same.
They clearly won't ditch the Bl
What does Grandpa Sony cry about every night? (Score:4, Insightful)
The way to understand Sony's otherwise inexplicable behaviour is this: games on PS3 are just a means to an end. For Sony (and for MS/Xbox), the prize is not to control gaming; the prize is to own every home's entertainment computer, and the format it uses to show movies.
As they say in the interview, Sony have clearly decided that they will still sell five million PS3s, even at this price. And let's face it, when you count the Japanese market, they're probably right.
Sell 5m PS3s and they establish a user base for Blu-Ray - and kill HD-DVD. Thus they hope to win this decade's version of the Betamax vs. VHS war. Thus Grandpa Sony can stop crying at last and young Mr. Sony feels heroic.
That may be the strategy - but of course that doesn't mean it'll work. Sony's repeated desire to corner the market with a new content formats (UMD etc) has led them to disaster before, and may do so again. Perhaps in years to come young Mr. Sony will be crying every night about destroying the PlayStation franchise...
Big ships keep going by momentum (Score:3, Interesting)
Sony's engine is blown. Yes, they'll sell this generation of consoles. No matter what. People loved their PS, they loved their PS2, they'll buy the PS3. No matter what. But, and here is the problem Sony has to solve, the PS4 sales will rely on the PS3 results as much as the PS3 sales will benefit from the PS2 experience.
Because a ship that's dead in the water takes an incredible amount 'til it gets going again.
"No Confidence Vote"?! (Score:4, Insightful)
Lest our gentle readers forget, a few weeks ago an analyst pointed out that Microsoft could've sold XBox360's for nearly $700 last year and the market would've purchased them all.
The XBox360 doesn't have HDMI at all! (Of course that's coming this year)
The XBox360 was supposed to have HD-DVD and it doesn't. (Of course that's coming this year though who knows what port it'll hook up to. If I'm using the wireless adaptor and have two wired joysticks I have no spare USB ports for an HD-DVD player... oops, guess I'll have to get an XBox360 branded hub.)
Given what tech they were showing at E3 (very little), the truth of the matter looks like Sony can't build enough units to meet demand at an XBox360 competitive price point. So up the price which will cut down on the demand and also maximizes revenue generation. Then, in January, if sales are sluggish (and you've weeded out the production run kinks) drop the price to match the XBox360. If sales are still strong (and they could be) keep it at that price because the market will pay that much for it.
Am I ticked about that? Yeah. I have enough spare cash floating around that I could be an early adopter, but I won't. $500 for a video game system (plus $40 for one more controller, plus $60 for ONE game so you're really looking at $600) is just ludicrous.
But then some people pay $100/month for cable TV with all the frills (not including broadband support).
But I'll pre-order a Nintendo wee-wee at $200 (maybe $250)...
But "No confidence" vote? Sony could be making the *perfect* video game system here and I still wouldn't buy it at that price point. On the other hand, if they make some really cool games for it and don't drop the price, maybe I will...
But that's what capitalism is all about Charlie Brown...
Crippled PS3 will display 1080p (Score:2)
Reminds me of President Bush in 2004... (Score:2, Insightful)
"I have political capital, and I intend to spend it."
And his approval rating just keeps going down. This post is not meant to be political or anything, just it sounds rather similar. From my personal experience in the world, it seems that whenever someone is bragging about things they did *before* it's usually because they don't have anything to brag about now. maybe i'm wrong.
after reading both FAs... (Score:2)
IGN has some very solid points about this.... Sony might respond to some of this and salvage the "gimp-end" of it's box offering.
And Mr Colin Campbell is a Snooty McFancyPants who doesn't realize that being "next-gen" will help you for naught if your product is also "not-purchased". There are some terrific consoles out in the mothball fleet to attest to this fact and he probably owns every single one of them.
Sadly, Sony may be right... (Score:4, Insightful)
Ironically, he said that gamestop as of this time has no plans to allow preorders for PS3 due to the limited numbers they expect to receive (he said they estimate 1-2 per store on release day).
If he wasn't lying, there's apparently a strong calling for it, at least in my neighborhood.
I thought Sony's price point was ridiculous, and I have no plans to buy the PS3 when it's anywhere near $600, but perhaps Sony is right in believing their fans will buy anything with the "Playstation" name, no matter what the cost.
Xbox 360 price cut (Score:5, Insightful)
With that happening to the XBox 360, Sony is going to have real trouble at a higher price point.
On the developer front, the general reaction to the Cell processor is "groan". (Except for audio guys, who finally get their very own CPU.) The Xbox 360 is a 3-CPU shared memory multiprocessor driving a conventional graphics chip, something well-understood by developers. Porting from an x86 PC (or an original XBox, which is an x86 PC) to an XBox 360 is straightforward. The Cell is a new, wierd architecture, little limited-memory CPUs with bulk DMA access to main memory. (Architecture people will remember unsuccessful supercomputers of the past organized like this.) In fact, Sony already has had a huge architectural disaster. Originally, the Cell was supposed to do the rendering. That was a dud, and Sony had to put a conventional graphics chip on the back end, running up the cost.
It's certainly possible to develop good games for the thing, but the extra work required means the games willl be out later. It took about two years before the PS2 hardware was really being used effectively. The PS3 is completely different from the PS2 and will require new techniques. So Sony is launching late on a machine you can't just port to. Not good.
What's really going to happen is that the early PS3 games will be doing most of the game work in the main CPU and the graphics engine, mostly ignoring the Cell processors. If the game talks to the network, one of the Cell processors will be handling that. Audio work will be in a Cell processor. PS3 games will probably have really good sound, because there's plenty of extra Cell CPU capacity to devote to audio. As Lucasfilm people like to point out, good audio will compensate for lousy graphics, but the reverse isn't true.
Sony will never get a dollar from me again (Score:2)
Sony and SOE both are collapsing from incompetent management and their complete disregard for their customers.
Corporate Arrogance (Score:3, Insightful)
They must have training seminars for executives of all Sony divisions in how to show the proper level of contempt for customers. From DRM'd CDs installing rootkits to its failure to acknowledge it's a non-factor in portable music players to how it handles its online games (my personal pet peeve) to this?
What's good for Sony is good for the rest of the world. Just give them your money and don't ask any questions.
Goes to show (Score:3, Funny)
Particularly outsourcing your marketing department.
Particularly outsourcing your marketing department to Hell.
The price point is the true killer... (Score:4, Insightful)
Bloody hell, I'm consdering just stretching my PS2 until it dies, and then giving up the console gaming entirely. Unless the Wii can blow it all away, then I might keep one of those around, but the Xbox 360, and the PS3 are just too damn expensive.
I really don't care about Bluray, or HD-DVD or this that or whatever. Just want to play some games.
Re:Let's be fair, it's true.. (Score:2)
As someone who's never been willing to shell out stupid money for the latest-greatest electronics, and always waits until it is at least 'older/mainstream' and had come *way* down in price... No.
Re:ps3 will be on top again (Score:5, Insightful)
Parent