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Why Sony is Ready to Self Destruct

Zonk posted more than 8 years ago | from the doomcasting-a-console dept.

722

jammmma writes "Before even launching the PS3, Sony is ready to self destruct." From the article: "PS3 is doomed, thanks to Sony's ignorant attitude. None of us had the chance to seriously evaluate PS3 and the experience it has to offer. It's impossible without a series of titles and an official product at hand, but from where we stand, Sony's damaging attitude is all it takes to diminish the value of PS3. Kutaragi may be right in defending PS3; after all, he can't criticize his own product, but instead of exciting users with valuable features and winning them over so they can start saving, Kutaragi makes bearish statements in response to Nintendo's announcement and Microsoft's take on Sony. Last I heard companies were at E3 to impress media personnel, which yielded positive publicity, not make childish remarks when chances were against them."

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722 comments

it's been ongoing for a while (5, Insightful)

yagu (721525) | more than 8 years ago | (#15336395)

SONY isn't ready to self-destruct, but it may be nearing the final disposition of its actions the past ten years including more and more proprietary technology, higher prices, and disdain for the customers.

Consider:

  • Ten years ago, SONY began making integrated stereo components, designed to interact with each other. I found this an exciting and enticing trend until I discovered if I wanted to take advantage of it, I'd have to completely replace all components in my system -- no accommodations for any "foreign" components. I know their ultimate motivation is to sell SONY, but with even a modicum of extended compatibility I would have considered their new systems. In its "introduced" form, I not only refused to buy, I steered any prospective customers away (and I had lots of people asking for recommendations).
  • Also about ten years ago SONY introduced the mini-disk. It was cool before mp3, but it was theirs. I took a chance at the high school dance and got a recordable mini-disk unit... knowing (thought so) the prices would plummet in a year or so and I could round out my collection with much more reasonably priced players. It never happened. When pressed for an explanation, my local favorite salesman explained SONY refused to license the technology for anything less than exorbitant fees so no one was offering the technology other than SONY, or if they did, it was for continued outrageous prices. (This was about the time I really started developing the "fuck you SONY" attitude.)
  • SONY jumped into the small-gadget fray by gambling they could introduce their idea of what was the perfect storage device, the memory stick. Memory ick ! It was expensive, held less data, and once again jealously guarded by SONY. If the rest of the world didn't like SONY's game, SONY would just take their ball and go home.
  • SONY and RootKit-gate. 'nuff said.

I don't know who's truly at the helm at SONY, but it's almost as if they've intentionally dug this hole, about six feet deep. I long ago eBay'ed and divested myself of all SONY equipment (still have SONY music CDs, sorry... ) and swore that, until SONY plays a little more nice, I'll never buy, recommend, anything SONY again.

I've never been a video game fan, so I don't know about SONY's escapades around those, but from what I see and hear it seems SONY is consistent across their offerings and markets.

So, it isn't SONY "ready to self-destruct", it's SONY reaping the rewards of what it's sown. It's too bad, they've shown they're capable of creating sophisticated and innovative new technologies.

Re:it's been ongoing for a while (4, Informative)

Lead Butthead (321013) | more than 8 years ago | (#15336446)

If the rest of the world didn't like SONY's game, SONY would just take their ball and go home.
This really shouldn't be a surprise to anyone; Sony exhabited the exact same behavior all the way back to Beta days. When it finally conceded defeat and released VHS decks, it still outpriced them comparing to other competitors.

Re:it's been ongoing for a while (4, Insightful)

harrkev (623093) | more than 8 years ago | (#15336562)

But also forgot about Sony's line of wonderful MP3 players. Those are fine pieces of technology that really enables the consumer.

Hmmm -- ATRAC, "Connect" software -- never mind.

Remember Betamax? (4, Interesting)

NetDanzr (619387) | more than 8 years ago | (#15336700)

Just to add to your list, with which I fully agree, the wonderful case of Betamax. Sony does have the tendency to deliver truly innovative pieces of technology, but due to their licensing strategy, which you already described, this technology usually goes down the drain. Sony Betamax is a perfect example of that.

Sony's philosophy of overpricing takes a toll with other items as well. For example, I find their computers vastly overpriced, thanks to their short lifespan. Unless you are producing a truly superior product, you shouldn't charge premium prices.

On the other hand, I'd like to mention one Sony product I fell in love with. A long time ago, I got one of their early Sony Clie PDAs. This was at a time before Sony realized they had a gem on their hands. The retail price of the Clie was $99; I guess they were selling it only as a platform for their memory sticks. I'm still using it on a daily basis, and I got a replacement unit, just in case.

Re:it's been ongoing for a while (0, Flamebait)

The_Real_Quaid (892126) | more than 8 years ago | (#15336773)

Let's not forget that the Walkman, the very product that "put Sony on the map", was in fact stolen. It took over 20 years to settle the case. meanwhile Sony profited enormously.

Sony has always been crooked. THey also stole the rumble feature for their game controllers and got slapped to the tune of $90M.

The rootkit is just another symptom of the widespread sickness at Sony Corp.

Re:it's been ongoing for a while (5, Informative)

PaulMorel (962396) | more than 8 years ago | (#15336894)

Regarding your question about Sony videogames, their record isn't good.

They pioneered the MMOG, in a significant way, with Everquest, but since then, they seem to be dedicated to destroying valuable intellectual properties.

Star Wars Galaxies (SWG) was one of the most hyped games of all time. As the first Sony follow-up to EverQuest, with one of the best SciFi properties out there, EVERYONE expected this game to be great. The pre-launch registered users who contributed to the SWG forums daily was ridiculously high. Every gamer was desparate for info about SWG because it just looked so hot. Sony bragged on and on about all the features the game would have: you could occupy any planet, play any race, take up a multitude of professions, buy a starship, go into politics ... etc.

Well, as the launch date approached, strange things started to happen. First, the features that were cut were small. I think the first thing that was cut was owning property. Everyone said, ok, you won't be able to buy a house at launch, but with all the other features, who cares? Then came the deluge.

Amid a sea of rabidly eager fans, Sony cut the feature list in half about a month before launch. Needless to say, the release was a fiasco. Even the features that were left in were buggy, and the development team was slow to react.

The impression from the Dev team was: the higher-ups forced us to release a product that wasn't ready yet, just to get the revenue flowing. So the game was stagnant; eventually they fixed a lot of the bugs, and the addons added some of the features that were left out, but by then it was too late. Now the game is all but dead.

Outside of the MMOG arena, Sony has been similarly unsuccessful; they have some great licensed games (God of War, GTA), but the games developed in-house tend to be god-awful crapfests (imho).

I also boycott Sony products btw, but more as a response to SWG, EQ2, and rootkitgate than anything else.

Re:it's been ongoing for a while (2, Interesting)

penguinstorm (575341) | more than 8 years ago | (#15336989)

MiniDisc licencees included:
JVC, Kenwood, Aiwa, Sharp, Denon, Alpine, Yamaha, Panasonic, Onkyo and Marantz.

Even granting that Aiwa is owned by Sony, I'd hardly call that "no one was offering the technology other than SONY."

Minidisc was cool, and I last recommended one to a woman who was doing anthropological field research in Africa. Why? The advantages of cassette (vs. an iPod, for example) with the ability to jack it directly to a computer through USB.

Next wave of MP3 player/recorders may make this redundant, but it was a decent solution at the time and that wasn't that long ago.

Playstation 3 Will Be Awesome (2, Funny)

repruhsent (672799) | more than 8 years ago | (#15336417)

Remember the Sony Music rootkit fiasco last year? They were really installing a rootkit so they could hide their killer app - Playstation@Home, a distributed computer for running video games.

Article Summary (3, Insightful)

American AC in Paris (230456) | more than 8 years ago | (#15336424)

For those of you who can't be bothered to read TFA, here's a quick summary:

Sony isn't going to win this round 'cuz they're too high off their own success to see the writing on the wall. How stupid are they? I mean, are they total morons? Could they possibly be any dumber? I mean, really--Sony is sooooo stupid!

For some reason, it took the author two pages to get this point across.

Re:Article Summary (0)

Anonymous Coward | more than 8 years ago | (#15336610)

Umm. Doesn't the title get that point across for you? With the two page article existing to give examples of why..

Re:Article Summary (4, Funny)

moochfish (822730) | more than 8 years ago | (#15337041)

For those of you who can't be bothered to read TFA...

Unless their server can pick up its own pieces and reboot, that would be all of us.

Yeah, sure. (0, Insightful)

Anonymous Coward | more than 8 years ago | (#15336439)

A corporation is doomed because their arrogant atitude upsets some geeks. You know, because that's going to cause millions and millions of kids and their moms around the world to decide not to buy a PS3.

Poor Sony, we hardly knew ye.

Re:Yeah, sure. (5, Insightful)

Gothic_Walrus (692125) | more than 8 years ago | (#15336495)

The $600 price tag and the $60 games, on the other hand, might just cause those "millions and millions of kids and their moms around the world to decide not to buy a PS3."

Honestly, if you had the choice between the PS3, Xbox 360, and Wii for your kids...well, I sure as hell wouldn't choose the one that costs more than the other two combined.

Re:Yeah, sure. (0)

Anonymous Coward | more than 8 years ago | (#15336525)

Which one is that? The Wii could be $200, $250, $300, $25, $15,000... nobody knows yet.

Re:Yeah, sure. (1)

Moqui (940533) | more than 8 years ago | (#15336554)

Assuming a $15k price tag on the Wii, I would purchase it if the VR/sensory Manga expansion was included in the base package. Granted, no one who came to visit would be allowed to see it though!

Re:Yeah, sure. (1)

enitime (964946) | more than 8 years ago | (#15336697)

"Honestly, if you had the choice between the PS3, Xbox 360, and Wii for your kids...well, I sure as hell wouldn't choose the one that costs more than the other two combined." Parents will choose whatever completes this sentence in their household: "But mooo-ooom! I WANT a !"

Re:Yeah, sure. (1)

'nother poster (700681) | more than 8 years ago | (#15336987)

For a limited subset of parents. I'm not getting my kids any console if it's over $250 U.S. None. I don't care if they are the only kids on the block without one, or all, of the new consoles. Yes, I'm not like most parents. Being a whiny bitch isn't going to get them a damn thing simply to shut them up. If they want a PS3, they are going to earn the cash themselves. At 11 and 13 that could take a while.

Re:Yeah, sure. (1)

tukkayoot (528280) | more than 8 years ago | (#15336815)

Not to mention the fact there don't appear to be any games in development for the PS3 that will be able to claim an "E" rating from the ESRB (except maybe that EyeToy card battle game).

The PS3 seems exclusively targeted at adult gamers (and overwhelming targeted at a subset of adult gamers: young males). To hell with kids, parents, women, families and non/casual gamers.

Re:Yeah, sure. (0)

Anonymous Coward | more than 8 years ago | (#15336497)

I would imagine the $600 price tag for a non-crippled PS3 and the apparent lack of any particular reason to buy it (graphics comparable to the 360 at E3) would have more of an effect.

Re:Yeah, sure. (2, Insightful)

monopole (44023) | more than 8 years ago | (#15336862)

But at $600 hardcore fanboys are the primary market.
On the other hand the "Family friendly" and "Female friendly" market is with Nintendo. And the $200 pricetag is a lot more "Family friendly" as well.

Sony equipment is great... (4, Insightful)

192939495969798999 (58312) | more than 8 years ago | (#15336452)

provided it's at least 10 years old. The newer stuff just doesn't stand out from the fray very well, especially stereo-wise, since high-end companies are offering entry level equipment at prices competitive with practically any component system, even Sony.

Re:Sony equipment is great... (1)

pembo13 (770295) | more than 8 years ago | (#15336776)

How true that is. Ny father had a Sony televsion which was older (or as old) as me. About 8 years ago we got a newer, larger tv, so we went with Sony. Less than 2 years down the road, it started to misbehave. Sad.

Well...yeah. (4, Insightful)

Gothic_Walrus (692125) | more than 8 years ago | (#15336459)

Honestly, they're asking for a lot with the PS3. $600 for a console is too much, and most of the people I know could honestly care about the additional features. It can play blu-ray? Great...except I can't afford a TV that the movies will look good on, and I'm not too keen on replacing my (perfectly fine) DVD collection this soon.

Unfortunately, they seem to be banking on the fact that people will think the PS3 is better and they'll dish out the extra money for it. Guess what? It's not. Sony isn't what it once was - Microsoft and Nintendo give it valid competition, and it's looking more and more like the Walkman-created giant is toppling.

It's nice to see that history hasn't taught them that the "We're the best, so people will like us no matter what!" attitude doesn't work too well.

Re:Well...yeah. (1)

Total_Wimp (564548) | more than 8 years ago | (#15336729)

It can play blu-ray? Great...except I can't afford a TV that the movies will look good on, and I'm not too keen on replacing my (perfectly fine) DVD collection this

This is a perfectly valid argument for 2006, but what about 2008? When HDTV hits critical mass, the choices of pre-recorded medial are either HD-DVD or Blu-Ray. Period. If Blu-Ray becomes VHS and HD-DVD becomes Beta (we'll see) then the PS3 is going to have a very nice selling point over the competition, especially if the price of stand-alone Blu-Ray players hovers around $200 or more.

If you look at things past today, as console makers are always forced to do with brand new boxes, then the PS3 will have more value through the lifespan of the product. That's not always engough to guarantee success, but it certainly helps.

TW

Re:Well...yeah. (2, Insightful)

AuMatar (183847) | more than 8 years ago | (#15336792)

2008 is still to early. TVs last a decade, sometimes more. The early adapter market is over, HD is now only being bought by people replacing their primary TVs (remember, many game machines are used on 2ndary TVs- kids bedrooms and the like). Some of those people still opt for non-HD, as its cheaper. Given the low penetration today, I wouldn't expect significant penetration until at least 2010.

And even if 2008 was the watershed, its still too late. If PS3 is in 3rd after 2 years, you'll see most 3rd party devs dropping it for xbox and wii. Much like how Japanese devs dropped xbox and american ones dropped gamecube. If PS3 doesn't get significant penetration in the first year or so, its lost this round of the console wars, and gets to try again in 2011 or so.

Re:Well...yeah. (2, Insightful)

ericspinder (146776) | more than 8 years ago | (#15336864)

If Blu-Ray becomes VHS and HD-DVD becomes Beta (we'll see) then the PS3 is going to have a very nice selling point over the competition, especially if the price of stand-alone Blu-Ray players hovers around $200 or more.
Blu-Ray is Sony and it's more likely to be the Beta than the VHS [wikipedia.org] as Sony has a long history crippling innovative ideas by holding to tightly to intellecual property.

Now they are trying use the success of PlayStation to push this format into consumer homes. Unfortunately it cripples the unit on price and is currently unneeded. Need drives adaption, not neat.

Re:Well...yeah. (5, Insightful)

The-Bus (138060) | more than 8 years ago | (#15336980)

If anyone can get away for charging a premium on their hardware, it's Sony. When we look at their other consumer lines, it's not so out of place.

Their consumer TVs? Circuit City right now has several 32" conventional TVs to choose from. At the low-end you have a Sylvania for $340. Other brands, like Sharp, Magnavox, Phillips and RCA, command up to $499. The Sony TV? $649.

What about MP3 players? Sony has their bean-shaped Walkman players (1GB) available for $120-$160 depending on features. Compare that to an iPod shuffle for $100 or an iPod Nano for $140.

Sony has, through a combination of marketing and engineering, managed to convince a lot of people that their products are of a certain quality and demand a premium. It doesn't mean their worth the extra price, it just means people are convinced (In the same way that Mercedes-Benz, Starbucks, Bose, and Banana Republic customers are convinced).

Outside of consoles, paying 50% to 200% more for something with Sony in the title is commonplace. So I can see how they can continue to expect that. Whether consumers will follow suit is another story completely. I'm thoroughly convinced that if the PS3 launched at $899 with LuminesBlu and Ridge Racer 7, they would sell out of their initial 3 million in shipments. Whether they reach 100 million in shipments again is an entirely different matter.

Re:Well...yeah. (1)

Derekloffin (741455) | more than 8 years ago | (#15336994)

Honestly, they're asking for a lot with the PS3. $600 for a console is too much, and most of the people I know could honestly care about the additional features. It can play blu-ray? Great...except I can't afford a TV that the movies will look good on, and I'm not too keen on replacing my (perfectly fine) DVD collection this soon. I'm a bit confused by people who say things like this. If you don't have a TV that can utilize it than why are you burning $100 to get the extra function that you can't use anyway? Beyond that, I don't see any contract anywhere that says you have to replace your DVDs. Did I miss the memo?

Re:Well...yeah. (-1, Offtopic)

Anonymous Coward | more than 8 years ago | (#15337045)

$600 for a console is too much,

And $400 for a video card isn't? The average console lasts what, 5 years and 100's of games? How long does your video card last? Til the next WoW or Evercrack upgrade?

While Nintendo may have won E3, Sony ... (5, Insightful)

WillAffleckUW (858324) | more than 8 years ago | (#15336515)

Hmmm. While I do think that it is true that Nintendo won E3, based on all the blogs at Washington Post, Seattle Times, Seattle PI, and New York Times, as well as more typical ones on gamer sites, I don't know that, as an investor, I'd say that Sony killed themselves.

I would instead say that they missed an opportunity and need to rethink their marketing price points and possibly their game releases.

Sure, Microsoft (nope, don't own it, sold it to lock in a technical loss, and as of today don't own any of these companies) did manage to get the media to cover their GTA release on the xBox360 and most press never clued in that it is releasing on both the P3 and the 360.

Sure, Nintendo got all the buzz and those of us who really aren't into FPS very much are buying the Wii (hate the name). Heck, they even demo'd a really cool FPS or two, and Red Steel swordplay sold me on the controller more than even the fishing and driving demos.

But, in the end, if they pick themselves up, dust themselves off, reset the retail price for the non-crippled P3 to something reasonable - as in, less than $500 US and less than 500 EUs - then they can still regain the market.

Battles frequently can be won even with major setbacks - sure, Sony was routed at E3, but they've got six months to get their act in gear and learn from their mistakes.

Re:While Nintendo may have won E3, Sony ... (1)

falcon5768 (629591) | more than 8 years ago | (#15336682)

sony hasn't learned from their mistakes in 10+ years at this point. I highly doubt 6 months will help them any.

The fact is, the Sony of the 80's is NOT the Sony of the 90's-00's. They lost touch with reality.

Re:While Nintendo may have won E3, Sony ... (1)

WillAffleckUW (858324) | more than 8 years ago | (#15336713)

The fact is, the Sony of the 80's is NOT the Sony of the 90's-00's. They lost touch with reality.

Well, I still think it's early to say that, although I did notice my son sold his old Nintendo box for $50 recently, so maybe you're right. Maybe they did have cooler games back then.

Re:While Nintendo may have won E3, Sony ... (1)

SatanicPuppy (611928) | more than 8 years ago | (#15337030)

That's probably why the PS2 is still the most popular console...Oh wait...

They're going to keep being evil, no doubt. But don't think it's going to eat their bottom line. It hasn't yet, and it's unlikely to in the future.

Re:While Nintendo may have won E3, Sony ... (1, Interesting)

MindStalker (22827) | more than 8 years ago | (#15336737)

But, in the end, if they pick themselves up, dust themselves off, reset the retail price for the non-crippled P3 to something reasonable - as in, less than $500 US and less than 500 EUs - then they can still regain the market.

But they can't. Sony PS3 is so hightech (with their 3 cell processors and blue-ray) they are losing a lot of money selling at $599. I think the $499 version is so crimpled is because they know the buyers of this version arn't as likly to buy as many games, so they can't afford to sell a system that mearly cost them $100 less as they can't expect much game license recoup. In the end, Sony has two chances with the PS3.
1.) Market it as a computer alternative and include a full linux distrubtion.
2.) Drop a processor or two as the games being made right now don't even come close to using the full functionality.

If in fact they lose money on PS3, what of xBox360 (1)

WillAffleckUW (858324) | more than 8 years ago | (#15336968)

Good point, but we also know that Microsoft is not gaining that much on console sales, and in fact has minimal worldwide marketshare. Perhaps Sony would rather sell more PS3s, lose a teeny bit of cash on them (break even), just so that the xBox360 doesn't get their footing again - when we look at worldwide revenue, we see that the xBox lost out to PS2, and the xBox360 to date is a very small fraction of xBox (think it's something like one-tenth the number of boxen). In fact, worldwide, Nintendo has sold as many Gamecubes as Microsoft has sold both xBox and xBox360. In the US, sure, xBox has sold more, and is more of an even player with Sony PS2, but even here they are second-place in marketshare, even though US Gamecube sales are really low compared to xBox.

So, to dominate with PS3, and get all that juicy Blu-Ray revenue (from players, movies, music, games, etc) and license fees, if they can keep dominance they can lock out the HD format and keep us using Sony Blu-Ray by selling PS3 at a price point that spurs widespread adoption.

I don't seriously expect them to compete with the price point of the Nintendo Wii, that would be silly. Nintendo always makes a profit on selling their consoles - and a profit on selling their games. Sony doesn't always make a profit on consoles, and Microsoft generally doesn't. That's why a lot of people wanted to put Linux on the xBox360 - it sells below the normal retail price for its components.

Ok, plus it sticks it to the man ... grin.

Re:While Nintendo may have won E3, Sony ... (5, Insightful)

thebdj (768618) | more than 8 years ago | (#15336749)

Battles frequently can be won even with major setbacks - sure, Sony was routed at E3, but they've got six months to get their act in gear and learn from their mistakes.

You seriously think they will adjust the price point? Sony is going to ride this $600 to their demise. To think they will drop it is absurd. Sony is notorious for over-pricing products in the hopes of selling on some sort of reputations, which they still have with many normal consumers.

Now, granted they have undershot the price of their launch Blu-Ray player (and everyone elses really), but if they go much lower the other companies will start screaming foul, which they already should be, because Sony is technically selling a BD player for almost 1/2 the market price. Though I still believe Blu-ray players will drop below the PS3 price sooner rather than later.

Also, using estimated number the penetration of HDTVs has been projected, at best, near 30%...by 2010. This means that nearly 70% of televisions (probably close to 80-90% now) will have no gain from the new format, making Blu-Ray (and HD-DVD) largely pointless for most Americans. I think Sony might be signing their deathwish by making the console with a blu-ray player.

I do not want to come out sounding too much like a conspiracy nut, but Sony is trying to use the PS3 to launch BD and not the console itself. There is much more money to be made in movies then in the game market, since movies are a much more "universal" form of entertainment. If Sony made the console with only DVD support, like 360 and Wii, I would almost bet that they would have pricing that is much more competitive to the other consoles; however, I think their true competitor is HD-DVD and other Blu-Ray drive makers.

Is it truly the Blu-Ray or the Games? (2)

WillAffleckUW (858324) | more than 8 years ago | (#15336908)

I do not want to come out sounding too much like a conspiracy nut, but Sony is trying to use the PS3 to launch BD and not the console itself. There is much more money to be made in movies then in the game market, since movies are a much more "universal" form of entertainment. If Sony made the console with only DVD support, like 360 and Wii, I would almost bet that they would have pricing that is much more competitive to the other consoles; however, I think their true competitor is HD-DVD and other Blu-Ray drive makers.

Well, from a marketing and format-domination perspective, wouldn't a larger user base for Sony PS3s mean that more people would use Blu-Ray and its DRM, thus giving them a lock on the next format?

So, yes, I think at some point they will realize that they want to win the war, not be stuck on past glories. And to succeed at selling movie titles, which is probably more revenue than games, it helps to sell more PS3s.

Retail of $500 is not going to make them bleed to death - $600 is a sweet price for them, but if they sell way more volume at $500 and then people end up buying Blu-Ray movies, they end up making more in the long run.

50% FUD, 50% fanboy. (0)

Anonymous Coward | more than 8 years ago | (#15336520)

Looking at these negative campaign these days. I think Microsoft FUD is real. Someone who competes with Microsoft gets this kind of negative rants all the time.

Good job. :(

Re:50% FUD, 50% fanboy. (1)

monopole (44023) | more than 8 years ago | (#15336825)

Yeah, but the big buzz is about Nintendo which may well undercut both Micro$oft and Sony.

Why Sony is ready to self destruct: (5, Funny)

Anonymous Coward | more than 8 years ago | (#15336535)

Because people on the internet hate them. I mean, just read any Slashdot article and you'll see. And just look at these cooltechzone.com people. They're clearly really cheesed off.

With the combined might of the Slashdot userbase and "cooltechzone.com" aligned against them, how can Sony possibly survive?

Keep dreaming. (4, Interesting)

SatanicPuppy (611928) | more than 8 years ago | (#15336550)

Sure Sony is run by a bunch of jackasses. Sure their PS3 product doesn't seem to match up to the current competition. Sure they're schizoid with regards to their music distribution, etc.

But they are not today, nor in the next 10 years, at all likely to "Self-destruct". This is a corporation, not a political party. They're not losing money at present, and if they pull off the PS3 thing well enough to set blu-ray as the new hd standard (who cares about the games?), their entire board of directors is going to spend the next decade snorting coke and gold dust off the asses of high priced prostitutes.

They're taking the long view in this situation, and I'll be surprised if we'll know how it worked out for a decade or more. The value of owning the dominant video standard cannot be overestimated.

Re:Keep dreaming. (2, Informative)

kyle (in stereo) (949060) | more than 8 years ago | (#15336646)

Sony IS losing money. Just do a Google for "Sony Profit" and look at the troubled times they have had these past few years.

Re:Keep dreaming. (3, Informative)

rcamera (517595) | more than 8 years ago | (#15336718)

Sony IS losing money

really? [yahoo.com]

and when i do a google search, the 3rd result states that " Sony's profit jumps 68 percent [zdnet.com] ".

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15336951)

Well, what's a billion dollars here or there? They're doomed! Doomed!

http://games.slashdot.org/comments.pl?sid=185813&c id=15336535 [slashdot.org] has it right.

Re:Keep dreaming. (1)

SatanicPuppy (611928) | more than 8 years ago | (#15336965)

The first two google results are both 2+ years old, and the very first one talks about profits dropping dramatically to _only_ the 1 billion dollar range.

Big corporations don't die. You have no conception of the actual amount of value that is attached to a company the size of sony. If they never made another product, and switched purely to research and liscensing, they'd still be making a nice profit. They employ more people than a small country.

Yea, they'll look stupid if the PS3 flops, and stupid if blu-ray doesn't catch on. They've looked stupid before. Sony dominates the console market. Last numbers I saw ranked them at SEVENTY PERCENT.

Re:Keep dreaming. (1)

The-Bus (138060) | more than 8 years ago | (#15337027)

Sony's profits are extremely weak (if at all existent) in the consumer electronics, non-game division. The games division has done extremely well for them recently. But their most profitable operation, if you measure profits over revenue?

Sony Financial Services: i.e. Sony Insurance, etc. Who would've thought.

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15336671)

>>They're not losing money at present...

http://www.gamespot.com/news/6148465.html [gamespot.com]

"On the gaming side of the business, Sony's game division showed strong revenue performance but lackluster profitability, with 958.6 billion yen ($8.2 billion) in revenue yielding only 8.7 billion yen ($75 million) in income. Despite revenue growth of 31 percent, profits for the division fell 80 percent year-on-year, a sharp decline that Sony attributed to continued high R&D costs for the PlayStation 3 and "charges associated with preparation for the launch of the PS3." As a result, the game business was a drag on the company's overall profitability this year; despite bringing in about 13 percent of overall revenue, games yielded only 7 percent of the company's profits."

Their profitability has been shrinking quite a bit - and they are gunna have to spend a lot of $$$ to push the PS3 - if that doesn't sell as many units as they think (and they think 10 million which is insane) their profitability will be hurting even more.

It's not the fact of whether or not they are profitable - it's the fact that if it's not as profitable as they claim it should be - it will be considered a flop. And I believe this time Sony is overselling itself - setting themselves up for a hard time ahead...

Re:Keep dreaming. (1)

harrkev (623093) | more than 8 years ago | (#15336683)

The value of owning the dominant ______ standard cannot be overestimated.
Beta.
Mini-Disc.
Memory Stick.

Sony has proven that it can't win ANY standard. Beta and Mini-Disc are dead, and the Memory Stick is kept on life support by Sony laptops and cameras.

Re:Keep dreaming. (2, Interesting)

SatanicPuppy (611928) | more than 8 years ago | (#15336885)

You forgot about that stupid psp video format.

Just because they haven't won one yet, doesn't mean they never will. they're banking on the PS3 to get blu-ray into every home. If it happens, they'll be geniuses. If it doesn't they'll be idiots.

This time, they're trying to do it the right way, which I think is interesting. They're putting the player out before they're putting the media out, and they're attaching cool stuff(games) to the player, which will almost certainly get people buying them. Sure it'll be pricey, but so is a regular computer, and people dump crazy money on them (cue computer vs console arguments).

It only remains to be seen if they can sell enough units to force blu-ray to the standard.

Re:Keep dreaming. (1)

monopole (44023) | more than 8 years ago | (#15336719)

Yeah, 'cos Betamax, MiniDisc, UMD and MemoryStick worked out so well.
Most of Sony's problems in the past 10 years have come from attempts to establish proprietary media standards. DRM has just pushed this stuff into hellish rootkit overdrive.
This is compounded by open civil war between the hardware and content divisions where the company is suing itself repeatedly.
And while they aren't taking losses yet they have had preciptious profit drops, including the notorious 98% drop back in 2003.

Re:Keep dreaming. (1, Informative)

Anonymous Coward | more than 8 years ago | (#15336741)

Are you sure Blu-Ray will be the dominant video standard? It's more expensive, and very few people (10%) have the ability to play HD video at full resolution (although I am one of them). Sure, it has more storage space than HD-DVD, but how many MOVIES need 25GB or storage? None that I've heard of. 25GB is great for GAMES, but let me go out on a limb and say that MOVIES will decide the dominant format that people will buy MOVIES in. It's a novel concept, I know.

Plus, look at Sony's track record with introducing new formats:

Betamax - lost to VHS

MiniDisc - lost to mp3s, but probably could have lost even without mp3s

Memory Stick - minimal market penetration, Sony fanboys seem to love it, but that's about it

UMD - lost to NOTHING!

Blu-Ray - Do you REALLY think that with a track record like this, being MORE EXPENSIVE than HD-DVD, launching LATER than HD-DVD, having NO APPRECIABLE ADVANTAGE for MOVIES over HD-DVD, and forcing companies that want to use the format to pay a LICENSING FEE is a recipe for success?

It will probably be great having 25GB on one disc, but once Samsung comes out with a dual-format player (and you know they will), Sony will have no way of strong-arming companies into paying their exorbitant licensing fees, since HD-DVD will be just as viable an option.

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15336935)

pr0n is using HD-DVD...

'nuff said...

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15336986)

Would you want to watch Pr0n at HD resolution? I sure wouldn't. Many of the "actors" are nasty-enough looking at standard-def resolutions.

The europeans are hot though...

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15336988)

This is Slashdot! When a technology is adopted by 10% of the public [firefox.org] or even 5% of the public [google.com] , it's a resounding success!!

Re:Keep dreaming. (1)

The_Real_Quaid (892126) | more than 8 years ago | (#15336846)

'They're not losing money at present"

Huh? Methinks you ought to familiarize yourself with The Facts [pcvsconsole.com] .

Sony is absolutely bleeding money. The game division was just about their only profitable division, and it is tanking bigtime at the moment. Another year or two of this and Sony really will be bankrupt or sold off.

This is why Sony is so adamant about getting BluRay into PS3 - the rest of the company needs the game division to carry them on their backs.

M$ smells blood, and they will be going in for the kill. As they said in Star Wars, "The emperor has made a critical error and the time for action is now."

Re:Keep dreaming. (1)

LunaticTippy (872397) | more than 8 years ago | (#15336978)

Sony made 1.5 Billion US$ last year.

Here's a link [yahoo.com]

I hate Sony my own darn self, but let's not make shit up, ok?

Re:Keep dreaming. (1)

LearnToSpell (694184) | more than 8 years ago | (#15337003)

lmao. Methinks you ought to familiarize yourself with The Facts. Sony's grossing FOUR BILLION DOLLARS A QUARTER. I put that all in caps, so you won't miss it.

Sony is absolutely bleeding money - wrong.

The game division was just about their only profitable division - wrong again.

Where do people come up with this shit? Doesn't anyone do basic fact-checking anymore, or is that too much work?

Re:Keep dreaming. (0)

Anonymous Coward | more than 8 years ago | (#15337026)

You'd be surprised how corporate management, with all those high-paid analysts and a responsibility to boost profits as much as possible, can completely bungle up a profitable product line.

Think the PS3 is one year too early (3, Insightful)

amuro98 (461673) | more than 8 years ago | (#15336605)

I think I can sort of understand Sony's strategy with the PS3, but I also think they're too early.

At this time the PS3 is intended to be an inexpensive blu-ray player - just as the PS2 was more popular as a DVD player than as a game machine when it first came out in Japan.

Problem is, blu-ray isn't DVD. Blu-ray isn't the only standard out there, nor is blu-ray that established.

I've yet to meet anyone who's actually interested either of the next-gen DVD formats at this time - mainly because of the uncertainty of having competing formats on the market at the same time. Does anyone actually want to take a shot at having 50% of his next-gen media being declared "Obsolete"? Not to mention that if Sony wants the PS3 to sell as a blu-ray player, they're going to have to convince the high-end A/V market that the PS3 can stand toe-to-toe with the pricier models.

In a year, there will be more Blu-Ray titles on the market, players will begin to drop into the range of mainstream consumers, and the technology in the PS3 will be cheaper, allowing Sony to still position the PS3 as both a game machine and affordable blu-ray player.

If blu-ray fails to win the market, it would not surprise me to see Sony starting to talk about an earlier launch for the PS4, just so they can get away from the failed, and expensive, blu-ray.

Re:Think the PS3 is one year too early (1)

wift (164108) | more than 8 years ago | (#15336724)

I agree with you but I want to add to your analogy of the ps2+DVD player tie-in. The trouble is people won't consider $500/$600 a low-cost blu-ray player like they may have with the ps2. I think you realize that but didn't put it in your post.

Since Sony is at the top of the price hill they will be the first to drop cost. However, it will be a killer on their stock.

I already made this comment ! (4, Interesting)

denisbergeron (197036) | more than 8 years ago | (#15336622)

http://games.slashdot.org/comments.pl?sid=179036&c id=14837957 [slashdot.org]

The problem with Sony is That the media division control the development division!

They can do thing that can eventualy and may be remove some little part of the profit of the media division !

So Sony will be in 5 (or lest) year a Media company only !(...)

Well if they don't change !

Re:I already made this comment ! (1)

Jearil (154455) | more than 8 years ago | (#15336685)

I like exclamation marks too!

They put a lot of emphasis on a sentance, making them stronger!

Sentances should be strong, don't back down from what you're saying!

Wiiii!

I like exclamation marks too! (2, Funny)

denisbergeron (197036) | more than 8 years ago | (#15336721)

I can make more emphasis in HTML !

Re:I like exclamation marks too! (0)

Anonymous Coward | more than 8 years ago | (#15336929)

You're also probably able to spell "sentence" right, unlike the other fellow.

Re:I already made this comment ! (1)

Southpaw018 (793465) | more than 8 years ago | (#15336881)

Actually, that's a very cultural thing. It's not really out of place here, and it's read differently in the author's native French than English, where emphasis can be more effectively communicated through inflection.

NeoGeo (5, Insightful)

Anonymous Coward | more than 8 years ago | (#15336649)

Let's not forget video game history. The most recent example I can think of that's similar to what the PS3 is making itself out to be is the NeoGeo home system. The system was more expensive than its competitors (Genesis/SNES/TGX-16) and the games were up to $200. The system WAS higher quality. It DID bring the arcade experience home. But guess what? It was way more expensive than the competition and sold poorly (except as a coin-op machine).

I'm looking forward to seeing the PS3 in action on its release. And I'm wondering if the $600 price tag will stick for very long. It will be interesting to see what will happen. Will Sony get poor sales (at least initially)? I think so, but could be wrong. Will reducing the price of the system cost Sony a TON of money because of the major cut they will face at "giving" it away for less than it costs to manufacture, or will the adoption of the system and licensing fees balance it out and make the endeavor still profitable? It's tough to say, but if I was betting on this, I'd bet that Sony may have their first living room console flop.

It seems a lot of bad PR is coming up lately.

I'm not sure that spells the end of Sony in the video game arena, however. Anything can happen and Sony, as a whole, is not doing too shabby (yet).

Only time will tell...

One of the things I find interesting about this... (2, Informative)

kyle (in stereo) (949060) | more than 8 years ago | (#15336674)

... situation is that Sony is in nearly the EXACT same position Nintendo was in when they "fell from grace".

Nintendo simply didn't have enough games to push the N64, where as the competition (mainly Sony) did. Now Sony is on the losing stick of console exclusives and with the loss of GTA4 exclusivity, I can only see more titles making the leap as developers realize the 360 cant be taken for granted.

Nintendo used a format that was not in the best interest of the market (cartridges). Blu Ray simply isnt going to be what its made out to be, and with the cheaper PS3 not able to utilize high definition content like the more expensive model, then whats the point in having Blu Ray? Its simply forcing us to pay for something that many wont get to use, or use properly.

Nintendo felt that their name alone would sell games. Sony fits this perfectly.

I wont go as far as to say "SONY IS TEH DOOMED", but it doesnt look good for them in the slightest.

Re:One of the things I find interesting about this (2, Interesting)

flooey (695860) | more than 8 years ago | (#15336931)

I wont go as far as to say "SONY IS TEH DOOMED", but it doesnt look good for them in the slightest.

Actually, they'd be lucky if they could get up to Nintendo's position. Nintendo hasn't posted a yearly loss in the last 20 years, despite their "fall from grace", whereas Sony has been oscillating between profit and loss for the last several years, with quite a bit of time in the loss department. Nintendo might not be as popular, but they're far more successful in terms of profit.

No, Sony will be OK... (-1, Flamebait)

lbmouse (473316) | more than 8 years ago | (#15336680)

This website on the other hand no longer is.

My prediction... (1)

Conspiracy_Of_Doves (236787) | more than 8 years ago | (#15336714)

Something tells me that Sony is going to be shoveling gobs of money at certain game development companies for exclusive rights to a couple of truly awesome games so that the only way to play them is to buy a PS3.

Re:My prediction... (1)

sehlat (180760) | more than 8 years ago | (#15337019)

Riiight! $600 for the console and maybe $50-60 each for the two games (possibly) worth getting.

*THEN* what?

Re:My prediction... (1)

the dark hero (971268) | more than 8 years ago | (#15337044)

Read: Final Fantasy XIII, Metal Gear Solid 4

Blu Ray is the PS3's Biggest Mistake (3, Insightful)

wickedj (652189) | more than 8 years ago | (#15336717)

Blu Ray is probably the biggest reason why the PS3 costs so much. It was a mistake for Sony to push that tech into the PS3. I would say over 95% of the consumers interested in the PS3, are not interested in Blu Ray or HD DVD for that matter. Their home systems can't even handle it. The 5% that can, can go out and buy a stand alone Blu Ray player.

Re:Blu Ray is the PS3's Biggest Mistake (1)

leland242 (736905) | more than 8 years ago | (#15336788)

I own an HDTV. Sorry everyone.

But you're so right - what do I want? Some half assed BR-DVD player, or a full featured *dedicated* player?

My answer is neither. I have no interest in getting HD-DVD's until the market sorts out the technology.

The PS2 and it's DVD abilities were certainly a boon to the DVD market - of course! You got a game machine and a DVD player for $350 (I forget the exact launch price). Now, this same model is being applied to a technology where only something like 1 in 20 people can really use.

Although, you know people will get it so they can watch "teh high def" on thier '92 Zenith.

Re:Blu Ray is the PS3's Biggest Mistake (1)

enitime (964946) | more than 8 years ago | (#15336895)

"You got a game machine and a DVD player for $350 (I forget the exact launch price). Now, this same model is being applied to a technology where only something like 1 in 20 people can really use."

You're kind of missing the point. If you have a PS3, and therefore a Blu-Ray player... will the next movie you buy be a DVD or a Blu-Ray? If they cost about the same, why not get the HD movie? After all, you might get a HD TV one day.

And when prices come down on HD-DVD and Blu-Ray and you decide to splurge on a dedicated player, why not pick the Blu-Ray? After all you already have some movies for it.

Sony gets paid every step of the way.

Re:Blu Ray is the PS3's Biggest Mistake (1)

Carrot007 (37198) | more than 8 years ago | (#15336820)

i bet they (the ps division) did realise this and did not want it in the ps3 but the parent company made them do it becasue they needed to push the format.

ha ha sony loses!

Re:Blu Ray is the PS3's Biggest Mistake (1)

Jeremy Erwin (2054) | more than 8 years ago | (#15337024)

95% this. 5% that.

Come on! You're just pulling numbers out of your ass in an effort to paste over the following argument;

I'm kind of sort of interested in the PS3. I don't have a HDTV. Therefore, the HDTV capability is a waste of circuitry.

I know... (1)

The-Bus (138060) | more than 8 years ago | (#15336743)

From the looks of their site, I'm guessing they're running on a Sony server, eh?

Umm... (1)

fernandoh26 (963204) | more than 8 years ago | (#15336769)

It looks like the source already self-destructed.... anyone have an alternate link? I'm getting some database error.

Who cares... (1, Funny)

gandy909 (222251) | more than 8 years ago | (#15336789)

This is a non-issue because -

"Most people, I think, don't even know what a SONY is, so why should they care about it?"

Does anyone have the article? (0, Redundant)

EmperorKagato (689705) | more than 8 years ago | (#15336790)

I think it has been slashdotted?!

BLUE-RAY is the next UMD (1)

Higaran (835598) | more than 8 years ago | (#15336802)

Given sony's history on media, you'd think they would quit while they weren't ahead, lets see every format they came out with bombed miserably. Betamax Minidisk OpenMD memory sticks UMD I have to give them credit on the UMD, they really tried with that one, then even sent out the specs to the ISO to make it a standard, there were also quite a few studio's on board that the beginging too. Sony makes great stuff, but everyting they have made since the old walkman has really been nitch market stuff, and thats what they are good at, not mainstream products. The PS1, was a good system, and got them into the market, but it wasn't one of those things that eyeryone in the world had to have, the PS2 was a nitch item because it came out as a cheap DVD player when DVD players were really expensive but starting to get more and more popular. The PSP, well that was hot for like two months after it came out, now you can barely give the things away, Sony tried to claim it as this multifunction device against the DS, but it couldn't really do any one thing right, playing a game the controls suck, and if you want to watch a movie an ipod is better. When everyone wanted to use the thing as a web browser, sony tried as much as they could to cripple that function, were as the DS was and always only claimed to be a good gameing system. Sony should just quit trying to develop new tech and just refine current stuff and try to mass market it, like it did with the walkman and the portable cd players, which is what really made them all their money.

bollocks (5, Insightful)

theantix (466036) | more than 8 years ago | (#15336808)

Sony is not going to self-destruct because their console is priced high on release day, it was simply a tactical decision to attempt to capitalize on the willingness of their most eager fans to spend whatever it takes to get one on or near release day. Recall how with many console releases they can sell out the initial batches to the point where it is difficult to find one in a store for the first while? Sony is avoiding that by pricing their console higher on day one, they will make more money from the initial adopters and run less risk of selling out. THEN, when they have ramped up production and can produce more units at lower lost, then they will drop the price to a more reasonable level and all of a sudden the console looks a lot more affordable in comparison with the less-powered consoles from Nintendo and Microsoft.

At least that is the theory. It could easily backfire, as it seems to be doing judging by comments on this and other sites, by having a backlash against the initial price so strong that it actually turns people away from the console and onto the other platforms instead of them waiting for the price of the PS3 to drop as it inevitably will. But still, people are looking at this scene like it's all based on what happens in November and December of this year instead of looking at it like it's a multi-year game. In 1 year, in 2 years, in 3 -- the initial price of the PS3 will not be a big deal anymore.

Re:bollocks (1)

The_Real_Quaid (892126) | more than 8 years ago | (#15336972)

In 1 year, in 2 years, in 3 -- the initial price of the PS3 will not be a big deal anymore.

It will always be a big deal, because the competing consoles will always be significantly cheaper, and with much larger game libraries and user bases.

It's not like M$ and Nintendo are going to sit on their asses while Sony suddenly starts doing everything right. They smell blood and they will go in for the kill.

Sony's time at the top is over. The chickens have come home to roost. Sony's corruption and incompetence have reached critical mass.

Re:bollocks (1)

CashCarSTAR (548853) | more than 8 years ago | (#15337047)

Sorry to "me too", but I'm going to repeat something you said, because it bears repeating. In big, bold, capital, letters.

MUCH LARGER GAME LIBRARIES AND USER BASES.

Sony assumes that because the PS2 had the largest game library, the PS3 will have the largest game library. This is not true. The game library will go to the machine that has the largest user base, for obvious economic reasons.

If the PS3 jumps out of the gate to a lackluster reaction, barring uber-killer aps (Meaning beyond Halo level), they should expect similar 3rd-party support to what the GameCube received, if that much.

I hear a lot of talk about price cuts in 2008 and things like that...each of the three companies don't have this long. This is a drag race, not a marathon.

And Sony is looking to have spun their wheels.

Tunnel Vision strikes again (3, Insightful)

Frobozz0 (247160) | more than 8 years ago | (#15336816)

Anti-SONY Alarmists: Remove your horse blinders and take a look around. Let's take a step back and look at this again.

Price:

While I will wholeheartedly agree that the price is about $100 too much on the PS3, is it really THAT big of a deal? Nope. Everyone planning on getting one before the announcement will continue to do so. They're early adopters who pay for the masses to buy at cheaper cost. How is this different from any other product launch?

Convergence:

My comment about horse blinders is appropriate here, because nobody is seeing the pink elephant in the room. Or, should I say blu-Elephant. Blu-ray is the next generation format for watch-at-home movies. So is HD-DVD, as some would argue. There's only one catch-- MILLIONS of blu-ray readers will already be in the clutches of PS3 owners. They'll get a next generation HD format with the bonus of a next-generation game machine. Stand alone players will cost $600 to $800 at the time the PS3 launches but you won't get a game machine with those. And because this all comes standard on BOTH the low and high end PS3, it's a winner. If this was optional equipment I wouldn't be singing the same tune. HD-DVD will not win the format war because SONY will have blu-ray standard on the PS3. End of story.

Proprietary what?

Some complaints have arisn about SONY's stance on proprietary technologies. Well taken. And while I am the last person to say ATRAC was a good idea, please point out the problems in the PS3 for me. I don't see them. Memory sticks come from many vendors. Bluetooth is a communication standard. Blu-ray is a movie standard backed by almost the entire movie industry. USB? Check. HDMI? Yep. Also a standard.

Market Timing

Microsoft has had a pretty good launch with the 360. They haven't done much wrong here. I'm amazed by that as much as anyone else. They have a cool UI, online distribution, etc. But so will SONY. The difference is that people with gaming PC's won't see much original (or better looking) content on a 360. They'll get unique titles on a PS3. SONY has sat back and looked at what was good and bad with the 360 (and Wii) and made their priorities known. While there may be a people who can't affor gaming rigs buying 360's, I would challenge that PS3 owners will own more games per console.

My point is that SONY isn't making a lot of mistakes with this launch aside from the costs of a blu-ray movie trojan horse. They'll have a great system, some great titles, and probably the same run-up time to first-class titles like any other new platform launch. Sure they could have better PR ... but I don't think that matters as much as some people are claiming.

Re:Tunnel Vision strikes again (1)

lbbros (900904) | more than 8 years ago | (#15337029)

Also I add... the CELL processor, that aside being one of the most interesting CPUs up to date, has its specs open.

Re:Tunnel Vision strikes again (1)

ZombieRoboNinja (905329) | more than 8 years ago | (#15337043)

"Blu-ray is the next generation format for watch-at-home movies. So is HD-DVD, as some would argue. There's only one catch-- MILLIONS of blu-ray readers will already be in the clutches of PS3 owners."

To summarize:
Many people will buy the PS3 because they will want Blu-Ray.
People will want Blu-Ray because it will beat out HD-DVD.
It will beat out HD-DVD because many people will buy the PS3.

I'm not sure if this technically counts as a logical fallacy or just a vicious cycle. But in either case, I don't buy the timing. People won't buy PS3s en masse UNTIL Blu-Ray catches on, so you can't count on PS3 sales to give Blu-Ray the edge over HD-DVD.

Too much credit for the common man (5, Insightful)

nosredna (672587) | more than 8 years ago | (#15336843)

I don't think Sony is going to have nearly as big a problem with this generation of the console wars as people think. The entire American consumer system is based on a flawed precept anyway, and Sony is well-poised to take advantage of that.

It is expected that people will push their spending to match their income. This results in people with a lot more house than they need, a lot more car than they need, and so on. It's not uncommon for people working low-end jobs to have a new car that they can't actually afford, and sure as hell don't need (as an example, my brother works as a restaurant manager... he has a 2001 Honda something or other, with a $119/month car payment. One of his employees, a waitress, has just traded in her previous car, a 2004 something or other, because she couldn't afford the $379/month payment. Her solution: Get a 2006 something or other with a $325/month payment). This is, unfortunately, not the exception to the rule.

People will buy expensive stuff as a status symbol. How often have you been at some gathering of people (high school reunions are notorious) and heard people talking not about their kids, but about how much they spent on their boat? Doesn't matter that they're going to estate sales every weekend to stock their pantry (Sweet, 10 cents for a box of cereal, just because the guy who died opened it and had a bowl or two? I'm there!), they still have the status symbol of the boat, and their 3,000 square foot house, and their brand new H3.

It's soulless and evil to take advantage of that attitude, but Sony never claimed to be a church. And there are enough people out there who will buy the more expensive console for either the status symbol, or just to shut their kids up about the damn thing (you might be amazed how far that one will push parents... ever done a price-check on a Disney World vacation? Compare that with a run to DC to hit up the Smithsonian museums for a week). And hell, they don't even need the high market share they've enjoyed in the past... with that price point, they'll have outstanding revenues even if the number of units sold is only 30% of what the PS2 did.

As much as I hate to admit it (the side of me that co-owns a business is fighting with my pseudo-hippie minimalist personal life on this), my hat is off to Sony for this. I think they've found a capitalist's utopia for this cycle.

Re:Too much credit for the common man (0)

Anonymous Coward | more than 8 years ago | (#15336936)

Since when is a 3000 sq foot house a status symbol?

I'm going to start a company (1)

From A Far Away Land (930780) | more than 8 years ago | (#15336893)

..I'm going to call my company Bony.
I'll install Rootkits on people's computers, and charge $600 for a game system in 2006, while my competitors chrage less.

Will my company self destruct? 9 out of 10 dentists agree that regular screwing up will result in company decay.

David Blaine Fails, GNAA claims responsibility (1)

lennyhell (869433) | more than 8 years ago | (#15336939)

David Blaine Fails, GNAA claims responsibility

Dessimat0r - Trollcore, NYC

It was revealed today that three minutes before his 'Drowned Alive' was due to end, David Blaine was forced out of his water-filled glass bubble early with an unknown cause.

The Gay Nigger Assocation of America is proud to announce that this was due to the heroic actions of GNAA member 'trogg', a recent recruit to the proud legion of Internet niggers. During the last few minutes of his stunt, the GNAA can reveal that images of famous internet celebrities 'goatse' and 'tubgirl' were taped to the outside of his bubble, where Blaine could see them in all their glory.

As Blaine turned to look at this explicit imagery, he began to have convulsions of the anus as his poop began to flow out of his rectum. This caused the water to turn a muddy-brown colour. Blaine then attempted to take off his oxygen mask, possibly hoping to ingest the diseased water in order to get a real taste of rectal prolapse.

The organisers of the stunt then feared for his safety as Blaine reached for his erect penis, as the palms of his hands were suffering from myosis. With this, two divers jumped into the water to save Blaine before he had a chance to touch his throbbing rod, and succeeded in pulling him out in time. He was out of breath as he was rushed to hospital, suffering from the effects of the stunt upon his body.

When Blaine was interviewed in hospital by the Gay Nigger Association of the America, he had this to say: "JEWS DID WTC".


About David Blaine:

Kike magician.


About GNAA:
GNAA (GAY NIGGER ASSOCIATION OF AMERICA) is the first organization which gathers GAY NIGGERS from all over America and abroad for one common goal - being GAY NIGGERS.

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Why not? It's quick and easy - only 3 simple steps!
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  • Second, you need to succeed in posting a GNAA First Post [wikipedia.org] on slashdot.org [slashdot.org] , a popular "news for trolls" website.
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Talk to one of the ops or any of the other members in the channel to sign up today! Upon submitting your application, you will be required to submit links to your successful First Post, and you will be tested on your knowledge of GAYNIGGERS FROM OUTER SPACE.

If you are having trouble locating #GNAA, the official GAY NIGGER ASSOCIATION OF AMERICA irc channel, you might be on a wrong irc network. The correct network is NiggerNET, and you can connect to irc.gnaa.us as our official server. Follow this link [irc] if you are using an irc client such as mIRC.

If you have mod points and would like to support GNAA, please moderate this post up.

.________________________________________________.
| ______________________________________._a,____ | Press contact:
| _______a_._______a_______aj#0s_____aWY!400.___ | Gary Niger
| __ad#7!!*P____a.d#0a____#!-_#0i___.#!__W#0#___ | gary_niger@gnaa.us [mailto]
| _j#'_.00#,___4#dP_"#,__j#,__0#Wi___*00P!_"#L,_ | GNAA Corporate Headquarters
| _"#ga#9!01___"#01__40,_"4Lj#!_4#g_________"01_ | 143 Rolloffle Avenue
| ________"#,___*@`__-N#____`___-!^_____________ | Tarzana, California 91356
| _________#1__________?________________________ |
| _________j1___________________________________ | All other inquiries:
| ____a,___jk_GAY_NIGGER_ASSOCIATION_OF_AMERICA_ | Enid Al-Punjabi
| ____!4yaa#l___________________________________ | enid_indian@gnaa.us [mailto]
| ______-"!^____________________________________ | GNAA World Headquarters
` _______________________________________________' 160-0023 Japan Tokyo-to Shinjuku-ku Nishi-Shinjuku 3-20-2

Copyright (c) 2003-2006 Gay Nigger Association of America [www.gnaa.us]

only on slashdot? (1)

wardk (3037) | more than 8 years ago | (#15336943)

could a massive corporation like Sony be considered "doomed" because their video game division upset some "gamers"?

diminishing returns (1)

danpsmith (922127) | more than 8 years ago | (#15336947)

The problem that Sony doesn't get about this coming console is that it isn't that much better than the PS2 to the average consumer. The fact is that some people that are even slightly technically inclined (e.g. my brother) already think that the PS2's graphics are HD, or that DVDs are HD, and probably wouldn't notice the difference even if you pointed it out. The problem is one of diminishing returns. I'm sure some people will buy anything because they have become Sony fans, (how, I have no clue, because while PS systems have good games, there's nothing particularly inspiring about the system or the majority of its games) but most people will not. The differences are becoming more and more subtle between generations of consoles. I played XBox 360 in the store upon release and couldn't see why anyone would prefer it that much over the original XBox, the differences seemed quite subtle, even graphically. When you jump entire levels in graphical difference, you can expect an equivalent boost in price tag. But when you are talking about emulating the look of cloth better than the last console, that simply is not enough to entice most people to plunk down 600 dollars. The price point is the saving feature of the Wii. It's something different, and it's cheap. While it might not be better graphically it at least has something to draw you in. I can't see buying a PS3 when I'm already bored with PS2 and the graphics aren't that much better... Most people have finally amassed DVD collections and you think they are going to change formats again? Please. I predict about the same amount of success with blu-ray as there was with PSP's disk video format. Nobody wants to have to buy the same movie over and over again. This is decidedly _not_ a selling feature for your console.

Worst. Summary. Ever. (0)

Anonymous Coward | more than 8 years ago | (#15336948)

Dear lord try and do something other than just rant!

Re:Worst. Summary. Ever. (0)

Anonymous Coward | more than 8 years ago | (#15337013)

Dude, all the cool people make fun of Sony now. Did'nt you get the memo? Microsot is now your friend. Yay for Clippy!

Making the Mountain From the Mole Hill... (1)

EXTomar (78739) | more than 8 years ago | (#15337035)

No matter what your opinion of E3 or Sony, Sony isn't going just "destruct". The worst that seems to happen at this point in time is that Sony doesn't dominate as hard as they used to which IMHO *is the best place to be*. When Sony, Microsoft, and Nintendo compete against each other we reap the benifits. Some of the most exciting and inventive games to come out in quite awhile will be appearing in 2007 and 2008. All because all three of these companies think the market is up for grabs.

So why the doom and gloom? I say bring it on! Sony, Microsoft and Nintendo all need to be humbled at regular intervals anyway to service us.

Just like the webserver... (1)

birdowner (635361) | more than 8 years ago | (#15337042)

.. hosting the article.

The Yen Is Mightier Than... (3, Insightful)

SparafucileMan (544171) | more than 8 years ago | (#15337050)

Ya'll realize, right, that whether the PS3 fails or not on its own right is going to have a minimal impact on Sony compared to the value of the Yen in the coming months/years.

Sony is a Big Corporation in the Big Game, and they're far more concerned with the BoJapan than a bunch of Fanboys. In the past 2 months the Yen has appreciated about 7%... which dwarfs just about everything.

Early Adopters (1)

MunkeyFunk (970929) | more than 8 years ago | (#15337052)

Everyone here seems to forget that early adopters and fanboys are crazy. They will pay anything to say they own a PS3 and Sony knows this. The PS3 can come out at $1000 and it will still be a sellout in every store. And you will be seeing them on E-bay for well over $1500 I'm sure and they will sell as well. As was mentioned above Sony isn't really trying to win the console war this time around. That is secondary to them. They just want to win the media war over HD-DVD which will land them a lot more money then a gaming console will because it will pretty much be just free roalty money from every blu-ray disk sold.
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