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Stringer: "We can't make enough PS3s."

thuway

Member
Feb 25, 2008
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"Sony CEO, the 66 year-old Sir Howard Stringer, has told German news outlet Welt Online that he does not expect the R&D cash spent on PS3 to be recouped soon. Asked by the Welt if he could ever see the $3 billion ($1.6b or Euro 2.03b) spent on development of the console, he responded, "Not for as long as I live (laughs). It will certainly take some time."

He was, however, bullish in terms of consumer uptake of the PS3, saying that, "Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them."

"We currently have a production bottleneck with the PlayStation 3", he continued.

He also confirmed that even with hardware bottlenecking due to demand, "You also know, however, that our business model is not perfect, and that we make a loss on every console we sell."

He was then drawn on one of his company's competitors, Nintendo. Strangely, or with good PR vetting of questions, Microsoft and the Xbox 360 did not merit a mention. "The Wii is a well-made device that has found a new target group. For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue."

"The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes."

So, how is Sony making any money from PS3? Quite simple according to the Welshman, "In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware."



What about a price cut then? Will there be one this year? "I think not"
, says Sir H enigmatically."
Source: http://news.*****.com/article/16105/Sonys_Stringer_We_Cant_Make_Enough_PS3s?cb=476

I took the whole- "We can't make enough PS3s" rhetoric as spin, however, I definitely appreciated the honesty. Guys in suits rarely take the humble route.
 

Jtyettis

Member
Jan 18, 2007
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Production bottleneck eh, you don't say Howard S. Which banned site is this from.

We are currently at the stage in which we need to get a grip on the production costs.
Always interesting.

Asked by the Welt if he could ever see the $3 billion ($1.6b or Euro 2.03b) spent on development of the console, he responded, "Not for as long as I live (laughs). It will certainly take some time."
Touche
 

stuminus3

Banned
Nov 29, 2006
13,597
1
1,035
Ontario
Asked by the Welt if he could ever see the $3 billion ($1.6b or Euro 2.03b) spent on development of the console, he responded, "Not for as long as I live (laughs)."
Iwata: (laughs)

EDIT:
But the Wii is not succeeding at our expense – it is not hurting us.
He doesn't really believe that... does he?
 

thuway

Member
Feb 25, 2008
10,994
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Jtyettis said:
Production bottleneck eh, you don't say Howard S. Which banned site is this from.



Always interesting.
Its a translation from an article on Welt Online in German.
 

theBishop

Banned
Nov 26, 2006
17,210
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Stringer said:
We are already making more money with the games than we are losing with the hardware."
How could that be? PS3 has no games!

PS: Yo String! Where's Wallace at? Where's Wallace!?!
 

polyh3dron

Banned
Jan 14, 2007
41,968
2
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Los Angeles, CA
Howard Stringer said:
"The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes."
This has to be the most ridiculous part of the article. CENTRAL SERVER? How so?
 
Nov 11, 2006
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polyh3dron said:
This has to be the most ridiculous part of the article. CENTRAL SERVER? How so?
Its the center of their universe mon.

Actually, he might. People at Sony and Microsoft (and others elsewhere...) seem to have convinced themselves that they're not competing with Nintendo.

They're wrong.
Its the only way they can sleep at night. The only way.
 

womfalcs3

Member
May 11, 2007
5,594
689
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The main important item I see in this article is the fact they're making more money on PS3 games than they're losing on the console itself. So at least the PS3 in general (HW.. including accessories, SW) is profitable.

PS2 and PSP are all profit.

cartoon_soldier said:
Its the only way they can sleep at night. The only way.
True.
 

stuminus3

Banned
Nov 29, 2006
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Dave Long said:
Actually, he might. People at Sony and Microsoft (and others elsewhere...) seem to have convinced themselves that they're not competing with Nintendo.

They're wrong.
No kidding. They seem to think all 100 million PS2 owners are NeoGAF users.

It's old man Yamauchi syndrome all over again!
 
Sep 5, 2007
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does he mean Sony factories are unable to produce more than the poor numbers they're pulling out? This gif has been summoned from the past, I assume

 

polyh3dron

Banned
Jan 14, 2007
41,968
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Los Angeles, CA
Porkepik said:
Well my PS3 is not my central server but is is my main access to all my media files stored on my computers
Yeah I've got the same kind of setup.. this makes your COMPUTER your central server, and makes Howard Stringer a fuckwit.
 

dyls

Member
Nov 16, 2005
3,120
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The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes."
My PS3 is on a couple hours a day at most. Know how often my DVR-Cable box is on?
 

Metalmurphy

Member
Jan 17, 2007
32,672
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Portugal
steamcommunity.com
Dave Long said:
Actually, he might. People at Sony and Microsoft (and others elsewhere...) seem to have convinced themselves that they're not competing with Nintendo.

They're wrong.
No they're not. Wii is mostly getting a new userbase, not stealing the existing one. All 3 consoles will do fine this generation.
 

TheGreatDave

Banned
Mar 10, 2005
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Metalmurphy said:
No they're not. Wii is mostly getting a new userbase, not stealing the existing one. All 3 consoles will do fine this generation.
Who do you think the vast majority of 120-odd million PS2 owners are? They're the exact same people that bought Wii Sports.
 
Sep 5, 2007
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Metalmurphy said:
No they're not. Wii is mostly getting a new userbase, not stealing the existing one. All 3 consoles will do fine this generation.
if that's true, where are those millions of PS2 owners?
 

NemesisPrime

Banned
Sep 30, 2007
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In most stores you can play a full game of Mah Jong with the amount of PS3 boxes... where does he get that supply problem from?
 

stuminus3

Banned
Nov 29, 2006
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Metalmurphy said:
Wii is mostly getting a new userbase, not stealing the existing one.
stuminus3 said:
They seem to think all 100 million PS2 owners are NeoGAF users.
...

I will agree with two things. One, that all three consoles this generation will do fine. They already have.

Two, that the Wii is getting a new userbase.

However, you'd need to be batshit insane to think it's "mostly" getting a new userbase.

Even the original Xbox didn't have a userbase exclusively made up of your average "stereotypical NeoGAF user" type.
 

kaching

"GAF's biggest wanker"
Jun 8, 2004
21,854
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polyh3dron said:
Yeah I've got the same kind of setup.. this makes your COMPUTER your central server, and makes Howard Stringer a fuckwit.
Jesus dude, relax.
 

ZealousD

Makes world leading predictions like "The sun will rise tomorrow"
Apr 17, 2007
29,347
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Howard, you're only having production problems because you keep changing the damn SKU's.
 

thuway

Member
Feb 25, 2008
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ZealousD said:
Howard, you're only having production problems because you keep changing the damn SKU's.
Do you blame them? They are taking hits on hardware as it is.
 

djtiesto

is beloved, despite what anyone might say
Jul 26, 2004
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Long Island, NY
Anasui Kishibe said:
does he mean Sony factories are unable to produce more than the poor numbers they're pulling out? This gif has been summoned from the past, I assume

:lol :lol :lol
First time seeing that gif.
 

Lord Error

Insane For Sony
Jun 8, 2004
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polyh3dron said:
This has to be the most ridiculous part of the article. CENTRAL SERVER? How so?
He may have gotten the terminology wrong. Central client would be technically more correct I think. Central server would be your NAS drive or wherever you keep all the video files and stuff. But then again PS3 by itself is a server for all disc based media, and you can keep your video files on it as well if you upgrade the HDD.
 

levious

That throwing stick stunt of yours has boomeranged on us.
Jun 7, 2004
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Metalmurphy said:
No they're not. Wii is mostly getting a new userbase, not stealing the existing one. All 3 consoles will do fine this generation.

so Sony and MS are not competing with Nintendo for these users?
 

Igo

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May 10, 2008
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For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue.
How is Phil now working at Infogrames while the people at SCEi seemingly still have their jobs. Who's got that quote Phil made right before he left Sony?
 

stuminus3

Banned
Nov 29, 2006
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bluheim said:
Do you really think that grandma and 5 years old boys and girls would have bought a Ps3 if Wii didn't exist ?
Did you quote this before reading the whole thread?

I can't argue with it, either way. Not because what you're implying is correct. More because you don't get it, and nothing I do or say can change that.
 

Zoe

Member
Jan 3, 2007
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Marconelly said:
He may have gotten the terminology wrong. Central client would be technically more correct I think. Central server would be your NAS drive or wherever you keep all the video files and stuff. But then again PS3 by itself is a server for all disc based media, and you can keep your video files on it as well if you upgrade the HDD.
+ the different stores being launched and the DVR add-on.
 

Monroeski

Unconfirmed Member
Feb 14, 2008
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Anasui Kishibe said:
does he mean Sony factories are unable to produce more than the poor numbers they're pulling out? This gif has been summoned from the past, I assume

:lol

Missed that the first time around.

:lol
 

drakesfortune

Directions: Pull String For Uninformed Rant
Nov 30, 2007
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Wisconsin
Porkepik said:
Well my PS3 is not my central server but is is my main access to all my media files stored on my computers
I'm almost certain this is what he meant. And yes, this is how I use my PS3's as well. It's also a great photo backup device, as well as the best possible photo viewing device on the planet coupled with a decent HDTV.