Sat, Dec 13, 2008 | 10:28 GMT

Washington Times: Sony doing all in its power to “hinder” PS3

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Let the good times roll. The Washington Times has accused Sony of being “determined to do everything in its power to hinder the market penetration of [PS3] in particular and Blu-ray in general.”

In an editorial titled, “Sabotaging the Sony Playstation 3 market?” the paper says Sony has done nothing to move against disaster in the macro-economy by keeping the machine’s price high, and that its Blu-ray marketing is a “losing strategy”.

The piece goes as far to say that unless Sony’s attitude to Blu-ray changes we could be looking at the demise of the format in its entirety.

“Sony and the rest of the Blu-ray manufacturers need to implement a radical shift in their marketing strategy: Hammer home the fact that not only will their new Blu-ray player play high-definition movies, it also will vastly improve the picture quality of their previously purchased libraries,” says author Sonny Bunch.

“Without such a shift, the format might perish. Market penetration remains low, and every month people don’t buy a Blu-ray player is a month they get closer to downloadable HD movies and the death of the format as a whole.”

Hit the link. Be warned, though: it’s grim reading. If that isn’t enough anti-PS3 sentiment for you, check out CNN calling the machine “a sinking ship.” It’s just as cheery.

55 comments

#1

rainer
13/12/08, 10:23 am

While I could see digital movie downloads take root and replace DVD rentals I dont think it will ever replace the practice of buying a movie for keeps.

That could change if they stripped the DRM from the movie and allowed customers to do whatever they want with it but the odds of that happening are slim to none.

So Blu-ray still has a chance against DVD and digital movie downloads wont be the knock out blow (DVD will if Blu-ray fails).

#2

G1GAHURTZ
13/12/08, 11:16 am

Oh no, not the “Blu-Ray will never die, because I want something told hold in my hands” arguement again.

Just tell that to the record companies whose CD sales are decreasing, and digital distribution is growing more and more profit.

Anyway, what people seem to be forgetting is that it’s not about the death of Blu-Ray, but the fact that Sony pinned their entire PS3 strategy on the premise that Blu-Ray would be the ‘next DVD’, and that people would bin their DVD’s en masse and that the PS3 would benefit as a result.

That’s why the console is so expensive. That’s why they marketed it as a home theater system.

The broken equation went like this:

Blu-Ray + PS3 + HD = Increased BRAVIA/related electronics sales = Market gains in gaming, home electronics and entertainment = Long term market dominance = Increased profits.

The big problem with this is that without a SUCCESSFUL Blu-Ray, PS3 struggles, and without a SUCCESSFUL PS3, Blu-Ray struggles, which is what the article was getting at as far as I can see.

It’s not about a “death” of one or the other, but unless Blu-Ray can stop people buying DVDs or downloading, it’s just going to be another ‘also ran’ format stuggling for market share, and all of the investments that Sony made are wasted.

Like the $2 billion they lost a year ago.

Sony NEEDS Blu-Ray to be the NUMBER 1 format, or they are going to seriously stuggle. Not just the chosen format of a few hardcore gamers and technology enthusiasts.

NUMBER 1 was their plan from the beginning, and they made the investment of a product that they expected to be NUMBER 1.

That’s why they spent so many millions and millions trying to kill off HD-DVD.

So it’s not just about whether everyone in the world will stop buying physical media or not. There are still people who buy formats like vinyl and Laser Discs, so I’m sure that people will continue to buy Blu-Ray for a good while yet.

But as for Blu-Ray being the top selling, market dominating format that DVD has been for so long, then that’s what Sony needs it to be, and that’s a different matter entirely.

#3

Shatner
13/12/08, 11:30 am

#4

G1GAHURTZ
13/12/08, 11:54 am

Actually, I held down SHIFT, which makes me super cool.

Like, cooler than ice…

lol.

#5

Quiiick
13/12/08, 12:09 pm

As long as I need to pay €29.99 for a disc, Blu-Ray is not going to be my format of choice.I only have 3 Blu-Ray Discs in my library (for which I paid less then €19.99, which is still too expensive).
For the majority (95%) of my DVD library I did not pay more than €9.99 at Amazon per disc.
So, without bringing the price of Blu-Ray disc down dramatically, this format will be an epic failure. Same goes for the PS3!

#6

sickpuppysoftware
13/12/08, 12:19 pm

Make blu-rays the same cost as DVDs or a fraction higher and watch them take off.

If I’m buying a movie now I have to weigh up if the increase in definition is worth the extra. Unless it’s some all singing all dancing extravaganza of light and sound it often isn’t worth paying double.

#7

scuz
13/12/08, 12:30 pm

if this was a poker game, nintendo is the big stack with good cards, pushing all in every 5 or so hands to make sure sony and microsoft know they can’t topple them.

microsoft is a hugely aggressive pot raiser who is constantly out of position and in turn looks dangerous as fuck.

sony is a big stack but is renound world wide for being a 2 time world champion so everyone who sits at the table is attacking him with every cards possible, he tries his best to make the best calls but with everyone idolising him but also trying to say “i beat the moneymaker” its making life very very difficult.

#8

Quiiick
13/12/08, 1:02 pm

@ scuz
… nice comparison! :)

I believe the reason why Microsoft is so successful now is that they have learned a lot from past mistakes with the original Xbox: The price of manufacturing a games-console is paramount!
But Sony should have known this too: Their PS2 started to really pick up in sales when the price went below the magic $199.99 mark.

#9

morriss
13/12/08, 1:10 pm

Sony needs to cut the price but can’t afford to because of the on-board BD player. That’s it. If Sony hadn’t banked on Blu Ray and thus could compete price-wise, these types of articles wouldn’t even be published, imo.

#10

Quiiick
13/12/08, 1:37 pm

I’m not so sure that it’s really the BD-player keeping the price high.

My guess is that the cell itself is quite expensive to manufacture. Or why else has Sony decided to turn off one of the 7(8?) SPEs inside the PS3 cell-architecture? To ensure higher manufacturing yields and this in turn keeps the price lower.

#11

absolutezero
13/12/08, 2:11 pm

HD D-loads are not going to take off until they are cheaper than going to fucking Blockbusters and renting a Blu-Ray.

Which at this point they are’nt.

Oh wait I can just fucking pirate them.

#12

Psychotext
13/12/08, 2:57 pm

az – It’s not all about price, it’s about convenience too. I buy DVDs (rarely these days), I have a lovefilm subscription, and I also use on demand services. Sometimes I just want to watch a film right now without messing around driving to my nearest shop.

#13

morriss
13/12/08, 3:23 pm

az is angry today.

#14

absolutezero
13/12/08, 3:37 pm

/strops

#15

Gamoc
13/12/08, 4:38 pm

I almost agree with this article. They’re obviously not doing it on purpose (which the title implies).

Their focus on social games is a stupid thing to do, who do they think they are, Nintendo? (ha!)
They cancelled Eight Days and the Getaway (I think they did, anyway) to work on a Playstation Eye pet thing. Eight Days had some tech demos that look rather good, they should be throwing money into hardcore games more than that kind of thing.

#16

anasui
13/12/08, 5:20 pm

terrible article. The reason for Sony’s debacle is to be found in a rather long list of bad timing, arrogance, bad decisions, waste of time and money trying to figure out a way to appeal to casuals and quite incompetent marketing

#17

Heavenfall
13/12/08, 6:26 pm

In a store in Norway i found Blue-ray movies (newest movies) for around $21 and the same ones on dvd for around $24. Other places i´ve found blue-ray for as little as $14. So there is no reason that Blue-ray cant be cheaper then it is in most places

#18

reask
13/12/08, 9:11 pm

I would not be surprised if they dump the ps3 mid 09 and bring out a less expensive console without br that can match the 360 and gain them marketshare with the brand name.

Stranger things have happened.

#19

theevilaires
13/12/08, 11:29 pm

looks like someone who’s losing their jobs at sony has some friends in the all but tell the truth american media and you dumb euros eat it up. man how much of a loser are you to post something you think in your little unimportant heads on a website. give it up sony will do what it wants as so microsoft and nintendo. if these people were so smart then they should apply at sony corp.if its one thing history has taught me it is that during a recession people who can’t afford expensive things won’t buy expensive things.come on look at moron we all know he wish he had a ps3 but the fact of the matter is he can’t afford it. psychobitch and him spends their money on butt lube instead :) Happy Holidays everyone

#20

David
13/12/08, 11:34 pm

If history has taught me anything American’s believe anything they are told

http://uk.youtube.com/watch?v=p7R-s-71csY

lol :P

#21

Psychotext
13/12/08, 11:41 pm

Good lord. Is someone incapable of handling basic sentences really calling others dumb?

#22

theevilaires
13/12/08, 11:43 pm

well if history has taught you that then english should have taught you to proof check what you type. Are you irish because if you are then its excusable, i know you must have started drinking at 5am in the morning…irish euros are funny lol :P

#23

theevilaires
13/12/08, 11:49 pm

ah damn psy i wish i could stay and chat but its sat night and its party time. listen when i don’t have a life like you don’t , then i’ll spend my whole entire weekend at a computer screen hitting refresh. tty-monday buddy :P Happy Holidays everyone

#24

David
13/12/08, 11:55 pm

I always lol at the grammar remarks since intelligence has got nothing to do with sentence structure. But sure believe what you want ;) .

http://mybroadband.co.za/photos/data/500/grammar-nazi2.jpg

#25

Psychotext
14/12/08, 12:04 am

Oh noes… don’t go. We bask in your reflected glory!

:(

#26

Syrok
14/12/08, 12:06 am

:( I missed him.

#27

lelik
14/12/08, 4:24 am

it seems to me that everyone forgets the ps3 isn’t sony’s only source of income, and last time i checked they weren’t still losing money on it. so for fucks sake stfu.

#28

JPickford
14/12/08, 9:06 am

How did you check?

#29

G1GAHURTZ
14/12/08, 9:25 am

He must be friends with Sony’s Head of accounting…

#30

morriss
14/12/08, 11:11 am

Sony is losing money on every PS3 sold as of October iirc.

#31

Cort
14/12/08, 12:34 pm

Yes, but making money on the PS3 brand as a whole (since the beginning of this year I think). Software sales from a large roster of first party developers ensures that their latest offering is making money for Sir Howard (which is why he left them unmolested after the recent cost-cutting exercise).

Once they hit 45nm things will be quite different, I believe.

#32

Psychotext
14/12/08, 1:02 pm

The only way they’re making money on the PS3 is if they’re not making money on the PS2 and the PSP. Their gaming division posted a loss in the last quarter, which had to caused by something.

#33

Cort
14/12/08, 1:06 pm

Could have been a writedown.

#34

Psychotext
14/12/08, 1:16 pm

Nothing mentioned in the release. All they said was that losses decreased because of hardware cost reductions and improved software sales.

#35

dirigiblebill
14/12/08, 1:23 pm

Good grief that evilaires chap is a bit of a juvenile twat, innee?

#36

theevilaires
15/12/08, 1:20 am

if i’m juvenile then you euros are just plain dumb fucking ignorant. To sit here and down talk a company who i believe 90% of you want to fail so bad is funny as shit, listen when any of you stupid wankers get your own business and you’re in the same position let me know how you feel when a bunch of 12-25 year old losers say about you on some game site that’s one out of millions, and correct me if i’m wrong but isn’t ps3 beating xbox360 in europe.Yea you guys must be of the lesser percentage no wonder there’s so many idiots here. I was under the impression morris was giving you guys blow jobs to post those stupid things guess not…

#37

wickedman
15/12/08, 2:06 am

WOW!!

#38

Shatner
15/12/08, 6:55 am

OK morriss, the game is up. We know theevilaires is your alt.

#39

morriss
15/12/08, 7:11 am

fuk u losr HAPPY HOLIDEYZ

#40

Robo_1
15/12/08, 7:16 am

Sony 4 Life Yo :D

#41

dirigiblebill
15/12/08, 11:12 am

Not just juvenile, but pathetically, pathetically easy to get a rise out of too.

/probably should know better

#42

theevilaires
15/12/08, 10:58 pm

dirigiblebill i can’t even respond to you seriously because your name is juvenile. I mean come on is it just me or does your name say you like to cross dress and masturbate to foot fetish videos . man you give me the creeps stop replying to me please you sick homo bastard thank you. happy holidays

#43

Syrok
15/12/08, 11:03 pm

Dirigible is juvenile? Have you looked into a dictionary lately?

#44

theevilaires
15/12/08, 11:19 pm

so syrok is fucking dirigiblebill and morris is blowing pyschobitch ok now i get it.

#45

Syrok
15/12/08, 11:23 pm

Au contraire, you seem to be unable to formulate coherent sentences without resorting to insults.

Oh, and you forgot Happy Holidays in your last comment.

#46

theevilaires
15/12/08, 11:27 pm

happy holidays

#47

dirigiblebill
15/12/08, 11:36 pm

No my name does not say I like to cross-dress (NOTICE THE HYPHEN) or masturbate to foot fetish videos, sir – I would carry out those activities regardless of nomenclature, hmnmnnnwhatwhat. ON THE CONTRARY (or “au contraire” as my good fuckbuddy Syrok put it): my name means that I am RIGHT NOW THIS VERY MOMENT cockslapping your PlayStation 3 whilst my (limited edition) Xbox 360 looks on and LAUGHS.

#48

dirigiblebill
15/12/08, 11:36 pm

LAUGHS I tell you. Oh yes and I hope you enjoy your vacation.

#49

theevilaires
15/12/08, 11:42 pm

so you spent 600 bucks to cockslap a ps3 and i thought you bought it for the blu ray player oh well your money…btw i hear if you pay psychobitch 600 bucks he’ll let you cockslap morris.happy gay holidays to you guys i guess?

#50

Syrok
15/12/08, 11:44 pm

Please read again.

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