Newsmaker: Let the PS3 games begin

This holiday season, few consumer electronics categories are being watched more closely than that of video game consoles.

Both Sony and Nintendo plan on releasing their next- generation consoles, the PlayStation 3 and Wii, respectively. Yet, with prices as high as $600, the PS3 is clearly aiming for the high end, while the Wii is targeting more casual gamers with prices expected to be well below $300.

Meanwhile, both companies must contend with Microsoft and its Xbox 360, which has a yearlong head start and therefore a commanding lead in the next-generation race.

Still, Sony has always maintained its console cycles are 10 years, rather than the five considered the industry standard. That's why, even as the market readies for the PS3 launch, the PlayStation 2 is still selling like gangbusters. And it should continue to do so for some time, as Sony has committed to the PS2 for at least another four years.

In a few weeks, much of the video game industry will descend upon Tokyo for the annual Tokyo Game Show. But for the time being, the focus is on Germany, where the Leipzig Game Convention is being held. So, for companies like Sony, Microsoft and Nintendo, and publishers like Electronic Arts and Activision, there is no break in sight.

Sony Computer Entertainment of America President Kaz Hirai talked with CNET News.com about the forthcoming PS3 launch.

Q: Can you provide an update on the PlayStation 3?
Hirai: The PlayStation 3 will launch in the North American market on Nov. 17. Things are pretty much moving according to plan.

How does a scaled-down Electronic Entertainment Expo (E3) show affect a company like yours? Was it a good thing to institute some changes in the format, or were you happy with the way it had been?
Hirai: E3 has about a 10-year, 11-year history, if I'm not mistaken. I think it's grown to a point where it became just such a massive show that we needed to take a look at what we were trying to accomplish with the show. We needed to see how effectively we can accomplish those goals. I think it was pretty much across the board in agreement that we should revise or relook at how E3 is structured.

Beyond the pricing and availability of the PlayStation 3, one of the big pieces of news from this year's E3 was more information about Nintendo's new console, the Wii. There were rumors that the Wii would be priced for less than $250. How did that affect PlayStation 3?
Hirai: The pricing that we announced for the PlayStation 3 is a price that ultimately offers fantastic value to the consumers. I think that we are offering a very good value for the consumers. We look at our products having a 10-year life cycle, which we've proven with the PlayStation. Therefore, the PlayStation 3 is going to be a console that's going to be with you again for 10 years. We're not going to ask the consumers to suddenly buy another PlayStation console in five years time, and basically have their investment go by the wayside. So for all those reasons, I think at $599 we're offering a very good value to the consumers.

Even if there was a consumer who decided to buy the PlayStation 3 perhaps as a Blu-ray player, I think that they will quickly realize the potential and the entertainment value of the fantastic content in true (high definition).

Are you saying that there won't be a PlayStation 4 within five years?
Hirai: Well, I think that if you look at the history of the way we've managed our console business, we always try to hit a 10-year life cycle. I can't speculate on when we might come out with a new console after PlayStation 3. But my message is that once you become a family in the PlayStation family of products, you become a family member. We make sure that we take care of you.

Going back to the question of the Nintendo console, it seems like their pricing is significantly lower than what the PlayStation 3, or the Xbox 360, will cost. Any concern that Nintendo's Wii pricing will undercut the market as people decide which console they want to buy?
Hirai: Some consumers will compare features or software offerings and decide that they may want to go with a different console. You also have to realize that we have a very strong, market-leading console called the PlayStation 2, which is at a very affordable price right now. Consumers will also understand that if you buy a PlayStation 2 right now, and you make some software investments, when you feel it's right to move onto PlayStation 3, those software titles aren't going to go by the wayside. Consumers will take that into consideration. I don't think price is the only determining factor when consumers make a choice in looking at their console purchase decisions.

Is there a danger that some consumers will buy PlayStation 3 just for the Blu-ray player and not the games?
Hirai: Consumers are going to look at the totality of what we offer in the PlayStation 3. Even if there was a consumer who decided to buy the PlayStation 3 perhaps as a Blu-ray player, I think that they will quickly realize the potential and the entertainment value of the fantastic content in true (high definition). Any consumer would be hard-pressed really not to try that functionality out.

More Newsmakers

[markdoiron]

I Don't Get This

In answer to the question comparing Wii and PS3 price differential, Hirai says: "You also have to realize that we have a very strong, market-leading console called the PlayStation 2, which is at a very affordable price right now. Consumers will also understand that if you buy a PlayStation 2 right now, and you make some software investments, when you feel it's right to move onto PlayStation 3, those software titles aren't going to go by the wayside."

Okay, so the consumer who can't afford the PS3 is going to look at prices of the consoles and say to himself, "Sure, the Wii is cheaper, but if I buy this last generation Sony console I can upgrade to a PS3 when I have the money!"

Hmmm. That doesn't sound like a particularly sound business strategy.

--mark d.

[richard.watson]

Some reasoning

PS2's are currently selling like hotcakes, in a market that has the 360 and two upcoming consoles. The type of buyer getting the PS2 now will soon have to decide between the very cheap PS2 and the cool-joystick Wii. With the PS2 you simply don't have to worry about an upgrade path and you have a ton of games that are fun. The Wii, you have a fantastic new experience that many in the family will enjoy, but fewer games at present.

I think they're pretty close in terms of bang-for-buck. Me, I'd buy a Wii if forced to choose between the two, but then I'm not one of the millions buying the PS2 right now.

[Lindy01]

Why not...

From what I read the Wii is going to technically equal or less to the PS2/Xbox 1. So if you cant afford the PS3.....the PS2 is cheaper than the Wii....and just as good.

So you buy the PS2 and you buy some games and then at some point you upgrade to the PS3 and all your games still work. What is not to get?

Personally I cant stand Sony but I understand his point.....and my Xbox 360 is all the console gaming I need. No way would I pay $599 for a console.

[Philips]

Sony v. M$

But at least it's funny to look at the battle in console market: Xbox 360 v. PS3.

Sony does BD. M$ prefers HD-DVD.

Sony wants to establish long-term platform. M$ tries to provide better experience right now.

Sony prices its console close to its true cost. M$ subsidizes sales of its console.

I only hope that competition would benefit consumer. Low prices of Xbox360 and Wii probably can be counted as first results of the competition.

[techned]

There is some logic here

The statement does make some sense.

Consider that the PS3 is fully backward compatible to all or a large percentage of PS2 games, then say if you wait for the price of the PS3 to go down, before you buy it or trade it in (for your used PS2), you can still play your PS2 games on the PS3 - the time you invested on buying PS2 games that you haven't either finished playing, have not played yet, or a treasured possession (a game you or series you love) has not been wasted since you can still play it on a PS3.

When the PS2 came out at $250 - I had sticker shock and waited. I still had some PS1 games I haven't played but when I was able to afford a PS3 (thanks to gift cards) I was still able to play the games I bought for my PS1 on my PS2.

Come to think about it I can also play PS1 games on the PS3 still, since Sony said support for PS1 is carried over to PS3.

Eventually there is going to be a point where PS2 and PS1 games will no longer be able to be supported on a Playstation console but at least the money I spent on games for those platforms was good for more than 10 years.

My two cents,
Ned

[someguy389]

Nintendo can make the same argument

The Wii is going to be backward compatible with all Gamecube software, so why not buy a Gamecube and then upgrade when you're ready. Once you purchased a Gamecube and a Wii, you'll be $300-$400 ahead of where you'd be if you bought the PS2 and then a PS3. Now you can go spend that money on games.

This really seems to be poor marketing move. The PS3 is clearly not an economical decision, so Sony shouldn't try to potray it as such. They need to stress graphics and horsepower, because that's where their advantage lies. It really does seem like the war is going to be between Sony and MS. Nintendo has created a system that is in a class by itself, quite capable of coexisting with either of the other two systems due to its accessibility, originality, and low impact on wallets.

[scrapple--2008]

$600! - gimme a break!

Sure they will sell out of their 2 million at launch (3/4 will be people trying to get them on ebay and sell them for $1200 so they can then turn around and get their ps3 for free). But seriously, the 360 is already out for $399 (you can get it for like $320 at dell after coupons), it has about 50 games out for it already, + 50 or so games on the xbox live marketplace (games like Texas Holdem, Joust, UNO, etc, that are all like $5 each to download and all are in HD), and the 360 is a GAME MACHINE, NOT A MOVIE PLAYER. If I wanted a movie player, I will wait till Blu-Ray is $150 or HDDVD is $150 in a stand-alone box at the stores to match my DENON or ONKYO gear.

[Far Star]

You forget ...

When XBox 360 rolled out people paid the SAME amount to get one. Heck, in some cases it was more than $1200. Worse were the rollout party attendees that took their almost free 360s and sold them for $1000+ on EBay.

I'm not happy with the price that Sony has put on the PS3 but I see it for what it is: an attempt to get the console business to be profitable. While it's assured that Sony is subsidizing the manufacturing costs, they are also pricing the PS3 so that they are not taking as huge a hit. They refuse to lower themselves to MS's level and get into a price war. One that they know, since MS has HUGE pockets, would cost them far more to win than it's worth. (And no, I'm not saying Sony doesn't have some big coffers too but they know that if they have to spend it all to win in the end that act will cripple them.)

Not being a big console gamer (anymore) I don't plan on buying the PS3 when it rolls out but I will be buying it. (And no I dont own a 360.) Hopefully the price will be down a bit when I do but if not, ah well.

Peace.

[techned]

Add $150 - $200 HD-DVD option to $399 Premium 360

Sony has two PS3 units - one for $499 and the other for $599.

The $599 unit is a media center systems with memory card ports, HDMI, and a 60Gb hard drive.

The $499 unit is a basic system with only a 20Gb hard drive - no media ports or HDMI; basically it's the same as the Premium Xbox 360 but with Blu-Ray DVD capability.

Considering that the article states that the Blu-Ray DVD on PS3 will offer more game content due to its superior capacity than the regular DVD discs that 360 uses, then its possible that the extra $100 is worth it.

As to the 360 being a game machine only - somebody tell that to M$ regarding its new HD-DVD add-on. This thing is touted to only play movies only and is being touted as an option - a $150 to $200 option.
If M$ puts games HD-DVD media - you can't say that Sony lied about its intentions.

[PRT940]

Only 2 million systems "for the launch period" worldwide?

Only 2 million systems for the "launch period" worldwide! Even at $599 that translates into worldwide shortages. Sony must've been jealous last Christmas when Microsoft got all the press for the Xbox 360 shortages, and decided to use the same strategy.

I was hoping to get my hands on a system before Christmas, but now it looks like I will just be buying more games for my Xbox 360.

[Tomcat Adam]

It gets worse.

Kutagari (is that how you spell it) and Haz have repeatedly stated that they haven't even begun production of them, and not only plan for 2 million at release, but 2 million more before the years end.

If they can pull it off, I'll be impressed.

[rmiecznik]

So what, before you know it...

So what, now everyone can go into a store and get a Xbox 360, no Big deal, it will be like that with the PS3.

If the PS3 ends up being superior to the Xbox 360, then I'll get it too, easy comes, easy goes.

:-)

Not sure about Nintendo, havn't played that in years and years, most liktely wouldn't buy it, unless they have excercise games for my fat belly :- ) that I need to work on.

There :- )

[mrpeabody3119]

They wont ship that many....

There is an article on Cnet that is predicting only 3 million units by march instead of the orginal 6 million they promised. I'd say that they only get 1.5 million out by Nov 17 if they are lucky.

[teeter3000]

And Then Came Mario...

Hey Folks&needing to comment&

Like most techno-articles on modern gaming, I think this one missed a key point by failing to ask the larger questions&that is, content. I will try to brief!

Absolutely, the PlayStation3 is certainly the most powerful of the new breed of consoles. Nitpick on whatever spec you choose, this system has power to burn&and it will cost up front. Like all consoles, this power will most likely be wasted, prostituted, and then eventually realized near the end of the consoles lifespan, with some truly fantastic titles coming right on the heels of whatever successor chooses&

The XBOX 360 is, for all intents and purposes, a hastily slapped together PC that was rushed to market in order to gain market share from Sony...while this may sound bad on the outset, its where software can ease the divide and allow the Microsoft beast to bloom. The current crop of software does nothing to show this path, however, and only time will tell how the public treats this system.

. ..and what of Nintendo? It seems strange to me that two camps have formed around the stoic underdog of underdogs& Those who choose to comment incessantly on how this hardware is underpowered and how the lack of media features will kill its popularity. The other (in full disclosure-mode, I reside) is a horse of a completely different color&

Nintendo seems to genuinely be doing something truly next-gen&and this isnt just about a fancy controller. Their entire philosophy is on the line, and with this industry in a state of crisis, it may seem jarring that the company (or any company) is betting the farm on creating new content. Where Sony and Microsoft have decided to continue their models directly into the foreseeable future, Nintendo has taken the road less traveled& and once again, only time will tell how things pave out for them&

I think their portable DS system is a good indicator of how that may happen. For a system that is severely underpowered and lacking most of the hot multimedia features it seems to be doing quite well for itself&better than that, actually. The DS is the hottest selling item since the iPod, and thanks to this consumer acceptance, software for the system absolutely DOMINATES sales charts. Its nearest rival, Sonys tremendously most powerful PSP system is faltering&and has yet to grab any significant foothold. Nothing against the platform, but one could assume a stale roster of software and under-utilized features (cough, cough&UMD, anyone?) coupled with an extremely high price tag may have turned some people off.

Point being this: The DS has software that people seem to want to play. Not just the gaming community, which trends to be dominated by younger males, but a new generation thats comfortable playing with puppies, fishing, playing Sudoku, training their brains&all while sitting comfortably next to first-person shooters, masterful puzzlers, epic RPGs, and of course, Super Mario. The lower price tag most likely helps&

So dont overlook the Wii& since E3 it would seem the general public has taken notice, and seems a fitting way to end what was once a powerful trade show&We wont give the battle to Nintendo based on heart and gumption, but their passion is certainly worth our respect.

[thecandyman116]

Innovation

Hey, the Wii is not going to suck. In fact I think it will dominate the market. Why? Innovation.

What did people think when they first heard of the DS? " how are you going to play on a touch screen, how can you play with 2 screens, its gay". What happend when people tried it out? Everyone loved it.
As of now I believe it is spanking the PSP.

thats my opinion

[techned]

I disagree

The first Xbox was a hastily put together PC without a doubt but the Xbox 360 is a very good product, very well planned and definately an improvement of the first Xbox. But the Xbox 360 is definately "off-the-shelf", where it uses present technology - which is a very good safe and smart bet.
M$ is making all the right moves to be a major player in the VG industry except for the HD-DVD drive, which I have my doubts about since it won't have HDMI or be able to do 1081p for movies, also the possibility that there is more than meets the eye regarding the peripheral's purpose.
The thing that makes me hesitant about 360 is that its library is boring, since its best titles are also on the PC and there are no exclusive hits.

The PS3 is a mystery but I love the idea that Sony is going to try to push the tech for gaming. It's a gamble with Blu-Ray and Cell and what type of advantages that it will have.
The games look good and interesting, compared to 360's offering but the one thing that has my head spinning is the idea of the controller being motion controlled (ala Revolution) using the same PS controller design seems awkward and the fact that it doesn't have the rumble feature seems stupid, while Nintendo and M$ will.
The price is not a problem - the $499 version is good enough for a gaming machine with next-gen DVD - I think it's dumb to have the $599 model when Sony says that the hard drive is user upgradeable.

Revolution is what I'm looking forward to.
It doesn't matter if it doesn't do HD - the gaming is important. But I'm worried about the library - ever since the whole Mortal Kombat blood thing, Nintendo has had this kiddy/Disney label and I think this hinders making great varied games for the platform.
I'm excited about the controller but I'm worried about it not being properly utilized by Third Party publishers; the nunchuk design looks great for FPS games.

I'm going with Nintendo for my first Next-gen system. I like the design philosophy and it offers a new type of gaming experience. I think the exclusive Nintendo software will keep me preoccupied until either 360 or PS3 convince me that I would like that system too.

My POV.

[Mmmhmm]

Granted...

I know people who aren't even gamers who are considering the PS3.. not for a gaming console, but for the potential the cell processor in the PS3 has. It could make a pretty powerful linux system, and for those who don't care about windows compatibility or play games, having a computer system with the power of the PS3 for only $600 could be very enticing.

[darkwolf777]

I wouldn't count on it

We all know how insanely obsessive Sony is about DRM and protecting their IP. I wouldn't hold my breath, if I were you, on a fully functional Linux system coming with the PS3.

I would be very surprised if it truely is a full featured Linux distribution, completely open, and customizable as Linux should be.

But I'm certainly not going to hold my breath. You would be wise to do the same.

[Dr. B]

And yet...

I feel like the companies are pushing us to buy the next version
of the DVD. I'm content with my DVD library right now,
whichever system is going to try to win me over, if either, is
going to have to be compatable with my current library of DVDs.
And that still may not be enough to get me to change over until
they stop making DVDs all together.

One thing to consider, however - PS3 looses its biggest selling
point at $600 if HD beats out Ray. Because at that point, the
argument that you're buying a $600 Ray player as opposed to a
$600 game machine flies out the window. And $600 is freaking
lot of money to pay for a video game console.

[richto]

No Football Games on the PS3 until well into 2007...

There are no football games due on the PS3 for the forseeable future. The Xbox 360 will wrap up a massive section of the Christmas market by being the only next generation console for football fans with FIFA 2007 and also Pro Evolution 6. Those titles are exclusve and wont be out on the PS3!

FIFA 2006 is already nearly the top selling Xbox 360 game....

[puckhandler]

SEVEN CORES

... I'm just saying, the most you can get on the market right now is DUAL-CORE - and if the only argument you have against that is that the CELL is "unproven", well, I don't find that a great argument at all - I have no problem "testing" out this amazing new CPU!!! ... do you guys have any idea what you can do with seven cores?? oh, and by the way, check out some of the REAL-TIME demos at gamespot, and then come back and talk to me... its all about PHYSICS PHYSICS PHYSICS (handling, that is)

[nickgravelyn]

No

You're wrong. It's SUB-cores. The Cell is a single core processor with (last time I read an actual published article) nine sub-cores (with Sony expecting two to fail). If they have downed it to seven to start, have fun with the five that last you more than a month.

And you realize that in order for a game to USE all the sub-cores, someone has to painstakingly program the game to use the cores to process independently and then pull all the data back into a coherent end result? That costs massive money. As opposed to Microsoft using a three core (not sub-core) processor which is remarkably similar to programming a modern dual core processor. The results are in costs. Unless you want to spend $100 a game, don't force technology to evolve.

[spm82]

Soccer games are fun

While I will admit that a good soccer game is a lot of fun, that specific genre of sports titles is not a major player when talking in terms of overall game sales. As long as Sony has a library of games in the most widely popular game types, they'll be just fine. The most widely purchased types of games usually include FPS, RPG, Sports (my guess is tops are US Football, then basketball/hockey/golf) and Action/Adventure (whether platformer, puzzler or straight action/shooter). The only struggle I see for Sony in cracking the market in those console genres is FPS, as it's going to take a mammoth piece of software to try and topple Halo. All major sports games are cross-platform, and Sony has provided the best console for role-playing titles for the past 10+ years. Franchises like Metal Gear Solid (PS3 exclusive) and Grand Theft Auto ("cross-platform") are just delicious icing on the cake.

[thedreaming]

Do you trust Sony?

Let's see, there was the rootkit, the racist psp ad, the exploding laptop batteries and now the ps3. Do you really trust Sony to where you'll pop $600 bucks for a game system?

[techned]

Do you trust M$ ?

There is Win XP and it's numerous security features or holes.

There are the numerous lawsuits by software makers regarding MONOPOLISTIC behavior, which required a court order for M$ to share technical data for apps to use Windows as well as IE and Office.

There is the lawsuits concerning intimidation of OEM makers to only install MS products, not competing OS, browsers or office suites.

There is the Windows Verification Tool that happens to come up on XP, once in a while as a Critical dowload that adds non-critical beta applications or upgrades to your PC witout consent (it's in an archived Cnet article).

There is M$ entry into the Software Security Industry, with it's OneCare product, which will be the only antivirus/antispyware product to work with Vista - locking out Symantec, Macafee, and every other publisher of this software industry out.

Here is the real kicker!!!

There is Internet Explorer which was supposed to be an option (a choice) on Win95 and somehow became an integrated and inalieanable application in the M$ Antitrust case.

Do you really trust M$ when it says that the $150-$200 HD-DVD drive is only an added option for Xbox 360?