Is today’s resignation of Playstation creator Ken Kutaragi a sign that Sony’s (SNE) gaming woes are deepening? That’s certainly how the WSJ spins it, calling it “the latest development in Chief Executive Howard Stringer’s stepped-up efforts to turn around the company after years of disappointing results.” The list of bad news is long: PS3 sales have been disappointing –behind the Microsoft (MSFT) XBOX and surging Nintendo (NTDOY) Wii – and losses total $2 billion so far because the PS3 sells for less than it costs. But what does this tell us about PS3’s future? Not much at all. After all, Kutaragi was arguably responsible for the financial woes, as the Journal reports: “Mr. Kutaragi went over budget on development costs.” He did, however, ship a monster of a product. Today we also learned that PS3’s brain, a chip called the Cell, will be put to use in IBM mainframes because it’s so powerful. And what you hear from a lot of hardcore gamers is that they’re waiting a bit before investing in a PS3 — because they know that eventually, it will outstrip all the others once gamemakers really learn how to use it. There’s definitely something to that perception: Eidos (maker of Tomb Raider and other top-sellers) recently said it was waiting for the PS3 to hit critical mass before attempting to harness its capabilities. (And those are pretty amazing… check this out.) As Slate reported a couple months ago, the Playstation 2 was the best-selling console in 2006, years after its debut and the onslaught of next-gen competitors. Might the PS3 follow that trajectory? Oh, and the unit’s price may soon come down. It’s a shame that Sony is stuck in the quarterly-earnings game. No, PS3 hasn’t saved the company yet. But when gaming’s history is written, The Browser suspects we all might think otherwise. Filed under Sony, playstation
Posted by Telis Demos 4:02 pm 10 Comments
Another thing that Sony failed to realise is that “Hardcore” gamers that are willing to spend that kind of money on a machine would rather just buy a high end computer and play on a much better machine with much more functionality. PS3 was just a bad idea from the get go. Then on the comment on the developers, the costs of developing on this system is extremely high with its non standard coding language. Only guaranteed successes will be developed on the PS3. Even then they won’t be exclusive to Sony any more, like the recent announcement by Square Enix, theat they will no longer be developing the Final Fantasy series just for Sony. Lets just face it Playstation is dead until at least the next round. Posted By Jeff, Waltham MA : April 27, 2007 3:23 pm
like someboady else said, i have in the past purchased consoles as they were released or fairly soon after, but the PS3 has for me been the exception, due to lack of real ps3 games and also it is i beleive expensive by comparison to the other consoles available, i prob will get one at some point but will wait until it has been out a fair while and is cheaper. NTS Posted By Not thinking straight : April 27, 2007 1:57 pm
the problem with the PS3 is the game industry which is not ready yet to create PS3 demanding games, the hardware cost $1000 in my country and there are very few games available for it, so for most of us. it doesnt make sense to buy it. Posted By Byron, San Salvador. El Salvador. : April 27, 2007 1:57 pm
This really is not anything new in the gaming industry. When a new console is released, it usually takes a while for people to pick it up ( especially if cost is an issue, as it was for myself )and for developers to pick up on the learning curve when it comes to what the machine’s capabilities are. But that a side,I think it was a mistake for Kutaragi to resign. He was the father of all things Playstation, and the fact that IBM is going to be using the ” Cell ” in their mainframes, speaks volumns of Kutaragi’s geneius, and also the mistake that is being made by Sony in acepting his resignation. Posted By Lew Newmark, Middletown,NY : April 27, 2007 6:14 am
Few people I have talked to that have purchased the PS3 really care for it. That is enough for me not to ever want to buy it. We have historically purchased all the game systems in our household, from Wii and XBox-360 to the old orininal nintendo’s…we have them all; the PS3 will be the first we have passed on…makes me wonder if others will too. Posted By Victor, Kansas City, MO : April 27, 2007 1:20 am
Looking back at the history of console gaming, we know that what ultimately made a console successful was NOT the hardware itself but rather the number of quality games available for it. PSP was and still is, the “monster” of portable consoles, but it’s no match for the lower-end DS in terms of great game titles and popularity. Unless the gamemakers are willing to pump them out like they did for the PS2, the PS3 will just be another Blue-Ray player sitting on the shelf. However, with game production cost sky-rocketing for such a powerful system, it’s going to take years before we see those top quality games that we’re waiting for. Posted By Jason, San Jose, CA : April 26, 2007 8:07 pm
Some items never hit critical mass the PS3 is certainly one of them. The PS3 is not following the PS2’s trajectory. The PS3 is lagging even the gamecube’s trajectory. Last week in Japan the Wii moved 7 times as many units as the PS3. PS3 sales are comparable to that of of the Sega Dreamcast. The Dreamcast died a painful death and destroyed Sega’s hardware division. I expect the same for Sony. Posted By Lex, Tulsa, OK : April 26, 2007 6:38 pm
I think whoever wrote this article as a completly misunderstanding of the Wii’s success and the PS3’s failure. The whole point of the Wii is not to just cater to the hardcores, but to everyone, at an affordable price and hence the success. The PS3’s failure, due to a lack of exclusive games, a ridiculous price and in the end, mediocre games, is also compounded by the fact that only the most hard-core would consider it. Even if you compare the success of the PS2, dominated by an affordable price and exclusive games, this isn’t even being copied by Sony this time around. For further proof, look at the DS’ success, which does not cater to hard-core gamers and has run circles around the hard-core centered PSP. The PS3’s success is now dependent on a cut in price by at least 50%, somehow coming up with games other consoles don’t have (which will be nearly impossible as the must have games of the PS2 were mostly put out by non-Sony corporations), and an attention to a sizeable, massive non-hard core audience which Sony seems to shun and ridicule. Overall, I think the analysis presented above is truly poor and as the year goes by, the write will come to realize that a $600 console, with no seriously interesting exclusive games, was doomed from the get-go. Posted By Ugo Lacheny : April 26, 2007 4:37 pm
As a hardcore gamer, I disagree. Sony has made several mistakes. First, the inclusion of DRM-laden BlueRay serves only to drive up the price of the console. It should be noted that many hardcore gamers are 180 degrees ideologically from Hollywood, so the last thing they want is to subsidize that industry’s next generation hardware rollout. Second, the PS3 needs good games. Final Fantasy XIII will sell consoles regardless of the hardware spec. Nintendo DS has proven this. The hardware is vastly weaker than the PSP, however, with games like Advance War DS, Fire Emblem, Lunar, Final Fantasy, etc, it CLEARLY wins out in content. Posted By Sean Maloney, Houston TX : April 26, 2007 4:22 pm
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I still love my playstation 2, and have still not completed even half of the great games in it´s vast catalog. Gaming shouldn´t be about how great the graphics are, or how accomplished the effects and the lighting is, but should concentrate on the gameplay and the story. Hell, I have only just purchased a gameboy advance for crying out loud, because it was cheap, and after having just finished zelda the minish cap, have a great feeling inside, cos it´s a great game. Gran turismo 4, god of war 1 and 2, shadow of the collossus, metal gear solid 3 and a long etc, etc… Ps2 is still at the tip of the iceberg and sony should have made the same move they did with the original playstation, when nintendo had there N64 and sega there Dreamcast. The PSONE was an inferior console by hardware standards, but man, were the games great! Sorry Sony, you´ve dropped a major brick on yourselves, and until you drop the price of the ps3, I´ll still be enjoying my ps2, advance and soon the Wii, cos it looks good.