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DCharlie · Oct 19, 2006

http://www.nni.nikkei.co.jp/AC/TNKS/Nni20061019D19JF294.htm

the choice cuts :

"The Japanese electronics and entertainment giant cut its group net profit projection to Y80 billion for the fiscal year through March from Y130 billion, and lowered its group operating profit forecast to Y50 billion from Y130 billion. "

"Sony's game business has also been hit by setbacks. Sales are likely to be smaller and losses bigger than expected in that segment due to a price cut of its PS3 and a worse-than-expected performance by its PlayStation Portable handheld game console, the company said.

A four-month delay in the European launch of the PS3 due to problems in manufacturing a key component of the complex next-generation game machine also took a toll. Adjustments in production of devices, including semiconductors, for use in the PS3 will hurt operating income in its electronics division, Sony said. "

" It also said it expects its PS3 business to show a "significant improvement" in profitability in the fiscal year from next April after a loss this fiscal year. "

so - although we already knew : more losses due to the price cut, and more confirmation that not all gaming costs are logged to the Game sector.

Kangu · Oct 19, 2006

CONZOL LUNCH COST MONNIENIES IS SONY DIED?

Pureauthor · Oct 19, 2006

Bluray sucks, don't it now?

elostyle · Oct 19, 2006

First time they admit that PSP is performing worse than expected I believe.

SuperPac · Oct 19, 2006

I don't doubt that PS3 is gonna be great but wow does this console launch come at a baaad time for Sony, financially.

ThirdEye · Oct 19, 2006

welcome to the daily dose of non-gaming-related anti-sony news service

monchi-kun · Oct 19, 2006

is the laptop battery fiasco over or are the various OEMs looking for some restitution from Sony?

speculawyer · Oct 19, 2006

Sony is 'shooting the moon' with the PS3.

If it suceeds, they collect both PS3 and Blu-Ray royalties.

If it fails and xbox 360 wins (Wii is orthogonal market), Sony in a world of hurt.

cvxfreak · Oct 19, 2006

elostyle said:
First time they admit that PSP is performing worse than expected I believe.

I believe so. Usually they just say the PSP's the fastest selling PS system and that they're not competing with Nintendo.

monchi-kun · Oct 19, 2006

speculawyer said:
Sony is 'shooting the moon' with the PS3.

If it suceeds, they collect both PS3 and Blu-Ray royalties.

If it fails and xbox 360 wins (Wii is orthogonal market), Sony in a world of hurt.

PS3 won't fail, their consoe market dominance won't fall unless MS makes any headway in Japan

DCharlie · Oct 19, 2006

welcome to the daily dose of non-gaming-related anti-sony news service

1) it's at least mildly gaming related
2) this news is brought to you by sony ... (via Nikkei)

RaijinFY · Oct 19, 2006

monchi-kun said:
is the laptop battery fiasco over?

This, unfortunately, is the worst news that could ever happened to them right now. I doubt It will over like this...

muttyeah416 · Oct 19, 2006

wow thats a HUGE cut for their financial forcast

theres always ps4 amirite?

Ned Flanders · Oct 19, 2006

monchi-kun said:
PS3 won't fail, their consoe market dominance won't fall unless MS makes any headway in Japan

Sad, but true.

Grayman · Oct 19, 2006

at least they are still looking positive. hopefully for sony they can have a successful generation after some time passes from the ps3 launch.

BorkBork · Oct 19, 2006

Just kidding, most of this stuff (PS3 delay, poor PSP sales, price drops) were expected anyways.

Chris Remo · Oct 19, 2006

Kangu said:
CONZOL LUNCH COST MONNIENIES IS SONY DIED?

The point is that they're revising their existing estimates. It's not like they previously forgot they were launching a console and have just now remembered, it's that they aren't expecting to do as well as they thought they were going to in the current fiscal year.

Mook1e · Oct 19, 2006

cvxfreak said:
I believe so. Usually they just say the PSP's the fastest selling PS system and that they're not competing with Nintendo.

Now the question is what will/can they do about it?

psycho_snake · Oct 19, 2006

speculawyer said:
Sony is 'shooting the moon' with the PS3.

If it suceeds, they collect both PS3 and Blu-Ray royalties.

If it fails and xbox 360 wins (Wii is orthogonal market), Sony in a world of hurt.

PS3 wont fail. despite the very high selling price for PS3, sony will still maintain most of their marketshare. They will lose some because of the price of their system and because MS have had a years head start, but PS3 has huge brand recognition and the system will have some exclusive AAA title exclusives such as MGS, DMC, GT, FF and GTA. PS3 will be the dominant system this gen.

_Alkaline_ · Oct 19, 2006

psycho_snake said:
PS3 wont fail. despiute the very high selling price for PS3, sony will still maintain most of their marketshare. They will lose some because of the price of their system and because MS have had a years head start, but PS3 has huge brand recognition and the system will have some exclusive AAA title exclusives such as MGS, DMC, GT, FF and GTA. PS3 will be the dominant system this gen.

I agree with most of your points but I still would like that crystal ball of yours.

psycho_snake · Oct 19, 2006

Mook1e said:
Now the question is what will/can they do about it?

They are in a tough situation. Sony were probabloy relying on GTA to really lift PSP sales and help them close the gap on DS, but that hasnt worked. If GTA didnt succeed in closing the gap, then its unlikely that their other big title exclusives will do any better.

Chittagong · Oct 19, 2006

100 PAGE THREAD HERE WE COME

DCharlie · Oct 19, 2006

PS3 wont fail. PS3 will be the dominant system this gen.

agreed totally, but remember that "fail" and "dominant system" can still coexist.
I'm sure the PS3 cost more than the PS2 project, so i'd have thought they'd need to reduce costs quickly and pull in as much revenue as ever - with the market place ideas, looks like they are definitely on a better track for that.

Deleted member 10571 · Oct 19, 2006

DCharlie said:
agreed totally, but remember that "fail" and "dominant system" can still coexist.

explanation plz thx np

psycho_snake · Oct 19, 2006

Alkaliine said:
I agree with most of your points but I still would like that crystal ball of yours.

Im just going by whats happened over the last gen. Sony's major exclusive titles have been so helpful in increasing PS2's marketshare. Nintendo and MS both have some very good exclusives such as Halo and Zelda, but they didnt have enough to compete with sony. Not just that but Sony have a massive user base, alot of which are lyal customers, so its going to take something big for them to consider buying another system.

I could be very wrong about sony maintaining their dominance. If Wii turns out to be a huge success like DS then it could cause some big problems for sony. However the home console market and the handheld market are difference. PSP isnt succeeding because Nintendo had a monopoly on the market before sony released the PSP and because it seems games such as GTA, which were very successful on home consoles, dont appeal as much to handheld gamers. DS has been a massive success, which indiacates that a system with some innovative features will succeed, but the markets are different.

MS could cause big problems to sony. If MS actually managed to get GTA released on Xbox360 the same time it will get released on PS3, then it will be a massive blow for sony. If MS could also get exclusive rights to a popular game in japan then that will also cause problems for Sony, but it doesnt look like MS are getting any luck with trying to do that.

AniHawk · Oct 19, 2006

psycho_snake said:
Im just going by whats happened over the last gen. Sony's major exclusive titles have been so helpful in increasing PS2's marketshare. Nintendo and MS both have some very good exclusives such as Halo and Zelda, but they didnt have enough to compete with sony. Not just that but Sony have a massive user base, alot of which are lyal customers, so its going to take something big for them to consider buying another system.

I could be very wrong about sony maintaining their dominance. If Wii turns out to be a huge success like DS then it could cause some big problems for sony. However the home console market and the handheld market are difference. PSP isnt succeeding because Nintendo had a monopoly on the market before sony released the PSP and because it seems games such as GTA, which were very successful on home consoles, dont appeal as much to handheld gamers. DS has been a massive success, which indiacates that a system with some innovative features will succeed, but the markets are different.

MS could cause big problems to sony. If MS actually managed to get GTA released on Xbox360 the same time it will get released on PS3, then it will be a massive blow for sony. If MS could also get exclusive rights to a popular game in japan then that will also cause problems for Sony, but it doesnt look like MS are getting any luck with trying to do that.

Sony will maintain their dominance this gen unless MS or Nintendo can get some more exclusive titles that are as good as those that sony have. If MS can actually get GTA on the Xbox at th

:lol

Chris Remo · Oct 19, 2006

psycho_snake said:
If MS actually managed to get GTA released on Xbox360 the same time it will get released on PS3, then it will be a massive blow for sony.

That simultaneous release isn't exactly speculation.

_Alkaline_ · Oct 19, 2006

psycho_snake said:
Im just going by whats happened over the last gen. Sony's major exclusive titles have been so helpful in increasing PS2's marketshare. Nintendo and MS both have some very good exclusives such as Halo and Zelda, but they didnt have enough to compete with sony. Not just that but Sony have a massive user base, alot of which are lyal customers, so its going to take something big for them to consider buying another system.

I could be very wrong about sony maintaining their dominance. If Wii turns out to be a huge success like DS then it could cause some big problems for sony. However the home console market and the handheld market are difference. PSP isnt succeeding because Nintendo had a monopoly on the market before sony released the PSP and because it seems games such as GTA, which were very successful on home consoles, dont appeal as much to handheld gamers. DS has been a massive success, which indiacates that a system with some innovative features will succeed, but the markets are different.

MS could cause big problems to sony. If MS actually managed to get GTA released on Xbox360 the same time it will get released on PS3, then it will be a massive blow for sony. If MS could also get exclusive rights to a popular game in japan then that will also cause problems for Sony, but it doesnt look like MS are getting any luck with trying to do that.

Sony will maintain their dominance this gen unless MS or Nintendo can get some more exclusive titles that are as good as those that sony have. If MS can actually get GTA on the Xbox at th

Good points, I agree.

However, many of PS2's buyers were casuals. Are most of these people going to be willing to pay $500-600 for a game machine?

Pureauthor · Oct 19, 2006

PSP isnt succeeding because Nintendo had a monopoly on the market before sony released the PSP

WRRROOONNNGGG!

Hyoushi · Oct 19, 2006

Ani, I think he fell asleep while typing at the end

Mithos Yggdrasill · Oct 19, 2006

DCharlie said:
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20061019D19JF294.htm

the choice cuts :

"The Japanese electronics and entertainment giant cut its group net profit projection to Y80 billion for the fiscal year through March from Y130 billion, and lowered its group operating profit forecast to Y50 billion from Y130 billion. "

"Sony's game business has also been hit by setbacks. Sales are likely to be smaller and losses bigger than expected in that segment due to a price cut of its PS3 and a worse-than-expected performance by its PlayStation Portable handheld game console, the company said.

A four-month delay in the European launch of the PS3 due to problems in manufacturing a key component of the complex next-generation game machine also took a toll. Adjustments in production of devices, including semiconductors, for use in the PS3 will hurt operating income in its electronics division, Sony said. "

" It also said it expects its PS3 business to show a "significant improvement" in profitability in the fiscal year from next April after a loss this fiscal year. "

so - although we already knew : more losses due to the price cut, and more confirmation that not all gaming costs are logged to the Game sector.

Bad news overall. Very bad. What about PSP, Sony must support it a lot more. Where are the killer-apps ?
And for PS3: we know that it is very expensive and difficult to produce and that the research program is expensive too.
This is the way you choose, Sony. Now, collect what you have seeded.

psycho_snake · Oct 19, 2006

Alkaliine said:
Good points, I agree.

However, many of PS2's buyers were casuals. Are most of these people going to be willing to pay $500-600 for a game machine?

Thats what Im not sure abotu. Ive always said that sony's success is in their own hands. It looked like sony shot themselves in the foot when they announced the price because the price is so high, but because Playstation has such strong brand recognition and a loyal fanbase, then the high price might not be too much of a problem. We will have to wait and see if people will get turned off by the price.

Anihawk said:
:lol

Why do you laugh or disagree with everything I say Ani?

AniHawk · Oct 19, 2006

psycho_snake said:
Why do you laugh or disagree with everything I say Ani?

Because the post ended mid-word.

A Link to the Past · Oct 19, 2006

I think PS3'll lose Europe and Japan, probly. Especially if Wii gets a hold of some big RPGs in Japan like DQIX. Based on their four month delay in Europe and 360 not doing so hot, I'd say Wii would take Europe too. USA, that's probably gonna become Sony land (in that the PS3'll probably win, and it'll be the region with the least DS interest and most PSP interest).

Chris Remo · Oct 19, 2006

A Link to the Past said:
I think PS3'll lose Europe and Japan, probly. Especially if Wii gets a hold of some big RPGs in Japan like DQIX. Based on their four month delay in Europe and 360 not doing so hot, I'd say Wii would take Europe too. USA, that's probably gonna become Sony land (in that the PS3'll probably win, and it'll be the region with the least DS interest and most PSP interest).

Why on Earth would PS3 win in the US, where 360 is strongest, and not in Japan and Europe?

Chittagong · Oct 19, 2006

Mithos Yggdrasill said:
Bad news overall. Very bad. What about PSP, Sony must support it a lot more. Where are the killer-apps ?

Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the product concept. People do not want a device like PSP.

AniHawk · Oct 19, 2006

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the produft concept. People do not want a device like PSP.

Yeah. Didnt we go through this yesterday? Go dig up that thread, Mithos.

RaijinFY · Oct 19, 2006

A Link to the Past said:
I think PS3'll lose Europe and Japan, probly. Especially if Wii gets a hold of some big RPGs in Japan like DQIX. Based on their four month delay in Europe and 360 not doing so hot, I'd say Wii would take Europe too. USA, that's probably gonna become Sony land (in that the PS3'll probably win, and it'll be the region with the least DS interest and most PSP interest).

Why PS3 is going to lose Europe? I can understand Japan but Europe?

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the product concept. People do not want a device like PSP.

Yep pretty much it.

Chittagong · Oct 19, 2006

AniHawk said:
Yeah. Didnt we go through this yesterday? Go dig up that thread, Mithos.

Did we just conclude on the availability of good games, or did we also discuss what is flawed in the product concept?

AniHawk · Oct 19, 2006

Chittagong said:
Did we just conclude on the availability of good games, or did we also discuss what is flawed in the product concept?

I thought someone did towards the end.

_Alkaline_ · Oct 19, 2006

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the product concept. People do not want a device like PSP.

The problem is that the best games (except a select few like Locoroco) are just way too similar to their PS2 counterparts.

DS re-uses franchises but most are unique and feel different to past games (eg: StarFox Command, Metroid Prime Hunters, Phantom Hourglass). PSP games play like PS2 games, DS games don't really play like anything else.

Tellaerin · Oct 19, 2006

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the product price point. People do not want a handheld as expensive as the PSP.

Fixed that for you.

Mithos Yggdrasill · Oct 19, 2006

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore.

And I know it. I said that the machine lacks Killer-apps (after GTA in Occident), not good games. There is a big difference between these two categories, because the first one very often is not a system seller.

psycho_snake · Oct 19, 2006

Pureauthor said:
WRRROOONNNGGG!

Nintendo's monopoly is part of the reason why PSP isnt doing as well as Sony hoped it would. No matter what market you enter, its always going to be very difficult to compete with a company that has had a monopoly on that market for a long time because the userbase have been so familiar with their products.

Grayman · Oct 19, 2006

Sony just has to sell enough to stay strong until the price gets more reasonable either through drops or OMG this is a great system factor for the growth and maturity stage of it's product lifestyle when the people of higher degrees of casualty get a system.

Pureauthor · Oct 19, 2006

'Part' of the reason, I can accept. But a very small part.

Lest you forget, PSP was beating DS in all of the three major regions until Nintendogs came out.

Safe Bet · Oct 19, 2006

Mithos Yggdrasill said:
Now, collect what you have seeded.

"SONY BAD!"

ARRRGHHHHHHHHHH

"SONY BAD!"

Grayman · Oct 19, 2006

nintendogs was a genocidal app.

I own a psp but don't buy games for it really. I think they are priced 10 dollars to high for portables usually and just aren't killer apps. I mean GTA:LCS is basically a mission pack for GTA3, it doesn't add enough new to be killer. I kind of expect the same from VCS, i want it but I don't full price want it. I don't even want it at reasonable handheld prices.

from a random sampling most psp games cost more than ps2 games.
http://www.futureshop.ca/catalog/class.asp?logon=&langid=EN&catid=22433
http://www.futureshop.ca/catalog/class.asp?logon=&langid=EN&catid=1094

psycho_snake · Oct 19, 2006

Chittagong said:
Come on. There are lots of good games on PSP. Software can't be the problem anymore. There is something fundamentally wrong with the product concept. People do not want a device like PSP.

I agree that the concept is a problem, but the software is still a problem. As someone pointed out, most of the good games for PSP are too simlar to the PS2 counterparts and people dont want to play games like that.

Mithos Yggdrasill · Oct 19, 2006

psycho_snake said:
I agree that the concept is a problem, but the software is still a problem. As someone pointed out, most of the good games for PSP are too simlar to the PS2 counterparts and people dont want to play games like that.

Agree. But the problem is that Sony made the machine exactly as expansion of the Playstation's Brand. And Sony expcted overall not to expand the videogame audience, but try to port the Home System's audience to the Portable's one.
It succeeded only partly; more in Occident and less in Japan.

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