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Gabe Newell bombshell quotes

JohnnySasaki86 said:
That cant be a disaster.
In retrospect - the only major difference between PS2 and PS3 launch trainwrecks was that one of them happened unchallenged.
And making train-wrecks commercially viable long term is kind of par-for-the course in this industry (even more so in software side).

Sony is rumoured to have ditched the Cell processor for the PS4.
Not sure what relation Gabe's quote has to that? General standard of console industry for past 20 years has been to ditch legacy architecture(and usually hw-providers) with every generation.
 
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What comic is this?
 
In retrospect - the only major difference between PS2 and PS3 launch trainwrecks was that one of them happened unchallenged.
And making train-wrecks commercially viable long term is kind of par-for-the course in this industry (even more so in software side).

the other major difference was that the ps2 made a profit later on and the ps3 is billions in the red.
 
Why? They probably would have lost more money if they started designing a new console, going through all the development cycles again.

Which is exactly what they're doing now with PS4. Only if they had stopped in January 2007, they could have spared themselves from years of losses. And it wouldn't have all been for naught - some aspects like Blu-ray would have proven to be worthwhile investments.
 
Here's the thing: people are going to use whatever software and hardware they want to use.

As they have been For years. This goes without saying.

What do you hope to accomplish here?

Uh, isn't this a question that should be directed at the guy who actually wrote the article? Even the conclusions are not mine, the guy who wrote this piece said the same things.

"Considering an argument" means trying to see if it has objectively any merit. As the article points out, some of Newell's older quotes were dismissed at the time, only to be proven right later.

Firmly? If you going by sales numbers and market share worldwide, Sony is right on the heels of MS.

Maybe I could have phrased that better, I basically meant "for many years".
 
Gamers can't handle the truth about gaming. All we can deal with without getting confused is cheerleading about how the future of all the brands and IP we like is going to be so awesome.
 
Gabe only "turned around" in the sense that he likes that ps3 is more open than xbox and that is appealing, we havent heard him turn around from him hating the cell architecture and the difficulty of developing on the thing.
 
Which is exactly what they're doing now with PS4. Only if they had stopped in January 2007, they could have spared themselves from years of losses. And it wouldn't have all been for naught - some aspects like Blu-ray would have proven to be worthwhile investments.

If they had stopped in 2007, it would have been the end of the Playstation brand. Canceling the PS3 would have been tantamount to pulling out of the video games business.
 
Gabe is the Anti-Pachter?

I wouldn't go that far, snatched from Pachter's wiki:

Pachter considers himself a Democrat, claiming that "Republicans care about themselves; Democrats care about other people." Pachter supports same-sex marriage, jokingly explaining that "gay people should be allowed to be as miserable as the rest of us married people."

But Gabe is wise enough not to mingle in such arguments, I am however convinced his marriage isn't miserable.
 
"Investing in the Cell, investing in the SPE gives you no long-term benefits. There's nothing there that you're going to apply to anything else. You're not going to gain anything except a hatred of the architecture they've created"

I like Gabe, and I agree with him on Windows 8, but that one is pretty much wrong. Working with Cell SPEs is fundamentally extremely similar to working with GPGPU, sou you gained a headstart on that. And GPGPU isn't going anywhere.
 
“It’s addictive. I mean, we are all addicted to the game,” admits Newell. “Ordinarily, when developing a game, you tend to get pretty tired of it because you have to go through all it and play it about a thousand times. By the end you’re like, ‘OK, I don’t ever want to see this game again.......At the end of the day, we all go home, turn on our computers, and play DOTA 2 until about 3am,” he continued. “That’s a pretty good sign; when jaded developers want to keep playing the game they’re making in their spare time as well.”

Valve time.
 
Then they would have been even better off financially.

Loss for the gamers.

They have done a remarkable job for the ps3 even though it may not recoup the losses suffered at the start of the gen.

However PS4 can be change their fortunes, so you never know.
 
Cancelling the ps3 would had been a much bigger disaster.

So i disagree with Mr Gabe Newell.

Cancel PS3 and continue some PS2 support. Wait for people to get sick of Wii. Release a reworked PS3 with easy to develop for hardware with Move that blows the 360 away in terms of performance due to newer hardware.

Disaster.
 
Cancel PS3 and continue some PS2 support. Wait for people to get sick of Wii. Release a reworked PS3 with easy to develop for hardware with Move that blows the 360 away in terms of performance due to newer hardware.

Disaster.
- Cancel PS3 and continue PS2 support: which means cancelling all production contracts they had, that means reforming the production lines again and it means restarting the PS2 game-development and marketing -> Billions in loss.
- Wait for people to get sick of the Wii: Let's say that was about the middle of 2011, meaning putting the PS2 on life support for 4 years. But then you forget the Wii software-market would be a lot healthier as it would be more interesting to develop Wii games (due to PS2/Wii multiplatform cross-over instead of PS3/360 cross-over)
- Reworked PS3 that blows the 360 away: But that would have no support of publishers because they invested millions in developping for the previous console you ditched almost immediately. It would mean no cross-over with the 360.
- It would mean their development studios would have nothing to do during 4 years, or have limited stuff to do because your PS2 games won't sell as well. It means attracting no talent because they're bleeding to the competition.
 
- Cancel PS3 and continue PS2 support: which means cancelling all production contracts they had, that means reforming the production lines again and it means restarting the PS2 game-development and marketing -> Billions in loss.
- Wait for people to get sick of the Wii: Let's say that was about the middle of 2011, meaning putting the PS2 on life support for 4 years. But then you forget the Wii software-market would be a lot healthier as it would be more interesting to develop Wii games (due to PS2/Wii multiplatform cross-over instead of PS3/360 cross-over)
- Reworked PS3 that blows the 360 away: But that would have no support of publishers because they invested millions in developping for the previous console you ditched almost immediately. It would mean no cross-over with the 360.
- It would mean their development studios would have nothing to do during 4 years, or have limited stuff to do because your PS2 games won't sell as well. It means attracting no talent because they're bleeding to the competition.

I don't know. It seemed like PS2 was still very strong for a long while there. It depends on how early they would have been able to identify that their cell strategy was poor. Wasn't that the point when they decided they had to put standard graphics card tech in it? And for first parties, good launch games for a system more powerful than 360 would take a long time develop. Maybe we would even have had Last Guardian for it by now.
 
Sony dumping the PS3 and trying to come back would have been akin to Sega trying to launch a new console in 2005. The brand would have been fucked as both consumers and publishers that invested in the PS3 would have no trust in them at all. Gabe was being overzealous in 2007 but anyone seriously entertaining the idea now that Sony should have backed out of this generation is an idiot.
 
Cancel PS3 and continue some PS2 support. Wait for people to get sick of Wii. Release a reworked PS3 with easy to develop for hardware with Move that blows the 360 away in terms of performance due to newer hardware.

Disaster.

Well, if you say it like that! If only it was that simple.
 
I don't know. It seemed like PS2 was still very strong for a long while there. It depends on how early they would have been able to identify that their cell strategy was poor. Wasn't that the point when they decided they had to put standard graphics card tech in it? And for first parties, good launch games for a system more powerful than 360 would take a long time develop. Maybe we would even have had Last Guardian for it by now.

So you think supporting development cycles for 3-4 year would be possible for Sony right after they had to pay off so many companies to cancel the PS3 production contracts? Your strategy would ruin SCE completely.
 
He wasn't spot-on with that comment at all.

Went from clear first with massive marketshare, to last place and wiped out any profit from the best selling console of all time. As a gamer the PS3 is great, but if I'm boss of Sony I'd be calling it a disaster.
 
So you think supporting development cycles for 3-4 year would be possible for Sony right after they had to pay off so many companies to cancel the PS3 production contracts?

So it was impossible for Sony to ever make money from the PS3 because of contracts?

Well, if you say it like that! If only it was that simple.

Apparently Sony can't do simple strategies that make them money any more.
 
Went from clear first with massive marketshare, to last place and wiped out any profit from the best selling console of all time. As a gamer the PS3 is great, but if I'm boss of Sony I'd be calling it a disaster.

But the comment wasn't about coming in third, it was about cancelling the PS3 and giving up on making games/persuading companies to make games for it. With hindsight that's ludicrous.
 
“It’s addictive. I mean, we are all addicted to the game,” admits Newell. “Ordinarily, when developing a game, you tend to get pretty tired of it because you have to go through all it and play it about a thousand times. By the end you’re like, ‘OK, I don’t ever want to see this game again.......At the end of the day, we all go home, turn on our computers, and play DOTA 2 until about 3am,” he continued. “That’s a pretty good sign; when jaded developers want to keep playing the game they’re making in their spare time as well.”

Valve time.
I know that feeling, Gabe should put that quote on the store page for DOTA 2.
 
So it was impossible for Sony to ever make money from the PS3 because of contracts?



Apparently Sony can't do simple strategies that make them money any more.

These kind of huge corporations once engaged in a product with external partnerships, contracts and third parties, it becomes prohibitively costly to scratch that completely and start over. Bit the bullet and keep rowing further. Do adjustments post release. Learn for future products.
 
Whatever the case with PS3 and Cell, it didn't really help Sony in the long run, did it? I mean, they're staring at a situation now where they may not be able to really compete in the console arena after this current generation, due to the huge and on-going financial clusterfuck that they created for themselves with bad decisions they made in 2004 onward. Gabe showing up on stage four years after he shat on Cell doesn't really change his original overall statement, that Sony fucked up from the very beginning and it has cost them dearly and still, to this day, does since it affects their next console for, at least, legacy support and that matters a whole lot when you expect that PSN accounts should carry purchases forward and it costs Sony to include PS3 hardware in the next one to maintain that full capability.
 
From a profitability standpoint, Sony would have been better off taking his advice.

You're joking right? sony gaming division would have been finished if they listened to his ridiculous 'advice'

From a business point of view it would have been a disaster and sony would join sega in terms of consumer brand distrust


Whatever the case with PS3 and Cell, it didn't really help Sony in the long run, did it? I mean, they're staring at a situation now where they may not be able to really compete in the console arena after this current generation, due to the huge and on-going financial clusterfuck that they created for themselves with bad decisions they made in 2004 onward. Gabe showing up on stage four years after he shat on Cell doesn't really change his original overall statement, that Sony fucked up from the very beginning and it has cost them dearly and still, to this day, does since it affects their next console for, at least, legacy support and that matters a whole lot when you expect that PSN accounts should carry purchases forward and it costs Sony to include PS3 hardware in the next one to maintain that full capability.


sony's problems have nothing to with the cell. If sony launched with he cheapest game console on earth it woud have never stopped the wii revolution and coupled with the loss of third party exclusives the tone was set
 
But the comment wasn't about coming in third, it was about cancelling the PS3 and giving up on making games/persuading companies to make games for it. With hindsight that's ludicrous.

that depends on your perspective, the ps3 still hasn't made any profit for sony. I'm pretty sure there would have been alternatives to that.
 
But the comment wasn't about coming in third, it was about cancelling the PS3 and giving up on making games/persuading companies to make games for it. With hindsight that's ludicrous.
From what I see in the quote I didn't read it as saying the main point is to cancel the PS3, he just added that in to illustrate how badly he thinks they've messed up

"The PS3 is a total disaster on so many levels," he explained.

"I think it's really clear that Sony lost track of what customers and what developers wanted. I'd say, even at this late date, they should just cancel it and do a do over. Just say, 'This was a horrible disaster and we're sorry and we're going to stop selling this and stop trying to convince people to develop for it'."
There's the quote again and I still read it that way and I think, with the points I made in the post you responded to, he was justified in saying that.
 
So it was impossible for Sony to ever make money from the PS3 because of contracts?

Let's just say company A makes a deal with company B. Company B will work for company A for 5 years and make company A's product. This will equal a revenue of X, which gives a nice profit to B but is not expensive to A. A will make a profit on their finished product and B will make a profit on their work. Now company A decides to cancel the product. They still have to pay company B because of the contract, however, they aren't selling a product so they get stuck paying for something that they won't sell. Of course, company B won't produce anything, but still a huge fine needs to be paid. Company B won't just allow A to cancel the contract. Even if A doesn't sell their product with a profit, but with a loss. The loss is still smaller than not selling at all.
 
You're joking right? sony gaming division would have been finished if they listened to his ridiculous 'advice'

And I'm suggesting that, considering past losses and an unfavorable future, they would have been better served to get out of the games business in 2007. I'm speaking in hindsight, since this thread is about Gabe Newell making crazy predictions, after all.
 
And I'm suggesting that, considering past losses and an unfavorable future, they would have been better served to get out of the games business in 2007. I'm speaking in hindsight, since this thread is about Gabe Newell making crazy predictions, after all.

The gaming business is one of sony's core strengths. It's the only consumer electronics manufacturer that has a dedicated gaming division. They will not abandon it.

Just because management make stupid decisions does not mean you concede market position and withdraw in a 20 billion industry
 
He was wrong about PS3. ~65 Mil and it wasn't what customers wanted? Ok. Lol.
Gabe/Valve worship is bad here. Good thing Valve led by example and didn't put any games on it.
 
sony's problems have nothing to with the cell. If sony launched with he cheapest game console on earth it woud have never stopped the wii revolution and coupled with the loss of third party exclusives the tone was set
I'll stick to my guess. And I never suggested how they should've gone about it, only that, with the benefit of hindsight, they really picked wrong. I would never have had them go cheap, but rather, with more familiar, developer-friendly software and hardware than they did. It would have saved them a lot of money they still haven't managed to get back and may never.
 
Let's just say company A makes a deal with company B. Company B will work for company A for 5 years and make company A's product. This will equal a revenue of X, which gives a nice profit to B but is not expensive to A. A will make a profit on their finished product and B will make a profit on their work. Now company A decides to cancel the product. They still have to pay company B because of the contract, however, they aren't selling a product so they get stuck paying for something that they won't sell. Of course, company B won't produce anything, but still a huge fine needs to be paid. Company B won't just allow A to cancel the contract. Even if A doesn't sell their product with a profit, but with a loss. The loss is still smaller than not selling at all.

What is stopping company A saying that the contract is no longer working any more but it can still work if it was re-negotiated. And what if overall loss X of division with current strategy is greater than cost of cancelling project Y.
 
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