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Im fairly certain the Sony gets some royalties on Blu Ray players and maybe even movies (?) so if anything Blu Ray sells, $$$ --> Sony.


Every member of the Blu-ray Disc Association gets a share of the royalties, so unless people are only buying Sony branded players Sony are no better off per sale than any of the other manufacturers.
 
Every member of the Blu-ray Disc Association gets a share of the royalties, so unless people are only buying Sony branded players Sony are no better off per sale than any of the other manufacturers.

While this is correct, Sony is one of the leading members of the BDA (I'm guessing larger a larger share), and Sony's the one designing the actual technology and I imagine thus working with the manufacturers.

On top of that, Sony's films will sell better, and the fact that they get royalties regardless who you buy it from means that with the sheer amount of movies being sold they're in to make a LOT.
 
On top of that, Sony's films will sell better, and the fact that they get royalties regardless who you buy it from means that with the sheer amount of movies being sold they're in to make a LOT.


All 176 members will get a share of the royalties. In winning the 'format war' all Sony has secured are bragging rights, not the right to print money.
 
Not a direct comparison, but you can really see the difference between Sony Japan and SCEE by just looking at their designs. The PS3's XMB interface was designed solely by Sony Japan—computer-like, directory structure, niche features (printing capabilities, etc) and complicated. SingStar's interface was a designed solely by SCEE—slick, beautiful, simple and intuitive.

I actually really like the XMB. It is simple enough. Left right for categories, up down to browse through the category. I also like being able to sort things (demos, games from PSN...) into folders. The thing I hate in the PSN store which will apparently be getting a more "SingStore" like GUI update in April.
 
Cheers for the interesting response.

I still feel that SCE is going to struggle and I honestly believe that Phil Harrison's recent public statement and actions are the visible proof that something is very wrong.

I'm not sure what that would be. Sony said they were very pleased with PS3 sales, and that they have exceeded expectations.

As for PS3 sales, Sony (don't forget that the company is massively in the doldrums in pretty much all of it's marketplaces and has once again failed to meet its profit expectations) needed the PS3 to 'explode'. Or to use your analogy: it needed to be the "hare". Why? Sony relies very much on its Electronic Entertainment and TV divisions to drive its profit and both have failed miserably to do so recently.

That's true, but they needed blu ray to win as much as they needed the PS3 to win (otherwise, they could have launched early and completely owned Microsoft again). However, I'm pretty sure that Sony realized that they weren't going to leap out of the gate with the PS3. It was extremely expensive to begin with and had a cheaper competitor with more games. Sure, they would have liked to have sold in Wii-like numbers, but that was never going to happen.

As I'm sure you know, the fact is that the PS3 drained the company massively in it's pursuit to be the most high end piece of entertainment kit possible and when the initial response was a 'meh', the fate of Kutaragi was sealed and he was quickly 'retired'.

What do you mean, "meh?". That is a view created by the media. Consumers obviously didn't care that much because the PS3 has sold at a faster rate than the 360 since launch. Sales have been solid. The PS3 was probably the most lambasted console in history, with thousands of journalists lining up to have a go at it, but customers have spoken. The 360 is a North American phenom. Outside NA, it's Sony and Nintendo all the way.

As a result Sony now finds itself in a position that it isn't used to - developers are hesitant to work on their 'flagship' console due to the high risk of recuperating their development costs, especially so in Japan - see the recent TGS for proof. (How many games are now multi-platform or even Xbox or Wii exclusives?).

Not that many. Most new games at my store are on both platforms. The PS3 is a wholly new platform with a radically new kind of processor. Of course there is going to be a learning curve for developers. However, the opportunity is too good to pass up. The first developer to make a hot game that truly takes advantage of the Cell is going to make a ton of money.

As for Blu-ray: Sony has deliberately kept the PS3 as the best and cheapest Blu-Ray player on the market (which is very much to the detriment of it's movie production wing) to try and sell as many PS3's to movie lovers in search of the best high-def player as well as to gamers after the latest and greatest piece of tech-porn. Now that the likes of Samsung, LG, Panasonic et al, no longer have to hedge their bets on the 'format war' that situation will change drastically and quickly. It will have an impact on PS3 sales, and conversely will have a positive impact on Sony Columbia sales. Being both a hardware/tech company and a 'content' company is one of the many problems and challenges that Sony faces and has so far not been particularly successful in addressing.

How many gamers don't watch movies? My PS3 gets as much use as a DVD player and media centre as it does a game console.

However, I hope that I'm wrong, as I would like nothing more than a 'cheap' PS3 with a compelling range of games (the chances of which seem to be diminishing rapidly with the removal of Harrison's guiding hand) so that I can finally buy the "latest and greatest piece of tech-porn".

Wait another year and you will have it. The PS3 will probably be sold at $299 by early 2009. But it is a good deal right now, especially since blu ray won.
 
Yes, they did! Sony would hardly have desired a protracted and painful inception for the PS3. As you pointed out they invested a lot into the PS3 - effectively 'betting the house' on it's success. Success that would have been expected immediately.

I doubt this is true. Sony could have easily had instant success by designing the PS3 as a lower tech console like the 360. They could have used a DVD drive rather than Blu Ray, and released around the same time as the 360 to crush it, just as they crushed the original Xbox.

Sony's strategy was to create the uber gaming multimedia machine with no compromises. Of course they would have liked blu ray to have been cheaper to start with, since sales would have been better. But, given that the 360 had a year's head start, their strategy always had to be catch up. Sony would have hoped for two things: (1) to keep pace with the adoption rate of 360s until the price could be lowered; and (2) that blu ray won the format war as quickly as possible.

(2) came true just over a year into release, so that is a result for Sony. They actually beat (1), since the PS3 has been selling at a faster rate than the 360 since launch, despite having a higher price tag in the shops, and despite having less software available for it. The PS3 already has the larger installed base in many countries and will shortly have the larger installed base outside North America.

The story goes like this: everyone ragged on Sony before the PS3 release and during the first year of its existence. They said it was expensive and overbuilt and would never sell, that it sucked and had been released too late, that blu ray was a gimick, etc. The last couple of months have been the tipping point. People are now saying "Hey it's starting to look like a good bet, and what-do-you-know there's some good games coming out for it".
 
If the recent words and actions were of a 'nobody' at Sony I wouldn't read anything into it beyond maybe sour grapes, but when it's someone as public and important as Phil Harrison (the President of Worldwide Development and arguably the 'face of Playstation') then I think it's something far more serious.

I guess we'll just have to wait and see how this plays itself out over the coming year or so.

In related news, Harrison has been praising the Wii remote and the iPhone at the GDC for leading the "democratisation" of videogame controllers and technology interfaces, respectively. - Harrison: Non-gamers see controllers as live guns
 
Former Sony worldwide studios boss Phil Harrison has taken the position of president of Infogrames, working beside newly appointed CEO David Gardner.

***

"This is the perfect time to join Infogrames and help shape the future of Atari - one of the industry's legendary brands. As the game business moves rapidly online I believe we have an outstanding opportunity to create amazing network game and community experiences for players the world over.

"I am especially excited to be working on this challenge together with David [Garner], one of the most respected leaders and successful executives in our industry," said Harrison.

gamesindustry.biz link
 
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