Is Sony as desperate as it looks?

This generation's Sega Saturn?

(Credit: CNET)

With a rumored $399 40GB Playstation 3 on the way, a cheaper device hitting shelves in Japan and UK, and announcements of an all-out price blitz this holiday season, is Sony really as desperate as it looks?

By just looking at news from the last week, it's quite easy to see that Sony is grasping at anything that will make the PS3 stick. Whether it's a new color, a cheaper price, or a rumbling controller, the company is hoping we will like something that make us spend our hard-earned money. I can't blame Sony for trying--the PS3 is hands-down, the most important device Sony is selling right now. Not only is it the harbinger of Blu-ray, it represents one of the most economically stable divisions of the company over the past decade.

But once again, Sony has it all wrong. The company is a victim of its own self-image and there is no stopping it with the current management in place. Simply put, Sony sees itself as a hardware company and in this business, that's the last thing you want to do.

Is Sony just a hardware company? Well, yes and no. Almost every product it releases is hardware and it seems to know this business best. There is no denying the fact that Sony threw all of the cutting edge components into the PS3 and it's simply the most powerful game machine we have ever seen. But for some odd reason, Sony genuflects at the sight of high-powered hardware while thumbing its nose at software--the true sellers of gaming consoles. Isn't this ironic considering the company develops software for its platform on a regular basis?

I can appreciate Sony's position--it needs to drop the price on the Playstation 3 to appeal to consumers first, but at what point does the company plan on selling consoles? A dropped price is fine and $399 is a good place to start, but if it gets rid of backward compatibility as it did with the UK device, how will it stop people from buying the Playstation 2 and opt for a PS3?

In fact, look no further than the PS2 to see how the video game industry really works. The Playstation 2 is underpowered when compared to this generation of consoles and yet, it's selling better than the PS3. Some may say it's price, but I disagree. Sure, it's easy to afford, but think of how many games you can play with a Playstation 2. And once you do that, compare it to the Playstation 3 library of games and then tell me which console you would prefer to play.

For the first time, Sony is off the mark entirely. To make matters worse, this couldn't come at a worse time. With a floundering PS3 that Sony hopes will catch on, what will happen to Blu-ray? What will happen to its game development division if the PS3 continues to fail? Worse, what will happen to Sony as a whole?

Sony is under the impression that a lower price on its console will stimulate sales and help it attain the lead it used to enjoy. But with no exclusive blockbuster titles in sight, what's the impetus for us to run to the store and buy the Playstation 3?

The Xbox 360 currently has the best software library and that console has been selling for $399 since its release. The Nintendo Wii is riding a wave like nothing we have seen in this industry and that console costs just $250. Simply put, if I want to play video games, why would I choose the Playstation 3?

Now, I'm sure Sony zealots will stand up and tell the world why there is a need to buy a Playstation 3 immediately, but I think any and all of those arguments are pure rubbish. I've owned the console since December and I can say that I've tried to play it as much as I can, but there is nothing out there that has made it imperative that I do so.

The Playstation 3 is on life support and unless Sony starts grasping at something it can hold on to, it should stop worrying about how the public perceives its hardware and start doing what it can to bring exclusive blockbuster titles to the console. So far, the Playstation 3 is the biggest gaming blunder we have seen in years.

Can you say "another Sega Saturn?"

[nhlkoho]

well said.

I agree. I can't see spending that much on a console with no games even after the price drop. I own 2 360's because one got the "red ring of death" and I didn't want to miss out on Bioshock and Halo 3 so I bought another with HDMI while my first one is getting fixed. It cost me $700 for the 360 but it was well worth it. I also own a Wii and while it is fun to play and has some great games, it isn't on par with the 360 games yet.

[ian_torres]

Desperate? Not yet.

It's still too early to say, but the price point is half the battle. Let's see how HOME and future exclusives hold up a year from now.

I own the PS3 and I'm happy with it. Blu-Ray is definitely a factor for the PS3 and I may be one of the few that think this, but the success of Blu-Ray will come from developers using its storage space to harness the power of the PS3.

HD-DVD and Blu-Ray movies will co-exist for enthusiasts while downloadable HD media takes the helm. With that said, it will come down to exclusive titles (a game of the likes of Halo or GTA is a must).

[JacobsDream]

I disagree somewhat

Most price cuts happen around the holiday season anyway, so to me the iphone price cut, X360 with 2 free games and $400 stripped-down PS3 all sound like holiday season specials to me.

I agree that the PS3 is struggling , but not to the the degree you state and comparing it to the Saturn is a bit of a stretch.

-It is the cheapest blue ray player on the market (blue ray seems to be doing better than HD-DVD for now).
-It has been on cNets most wanted list since it came out (even at its steep $600 price point), that tells me that people tells me that demand is still there.
-Despite its well documented struggles without content selection, it is still sticking around like mentioned above and exclusive and non-exclusive content in the horizon will only help (no need to run off a list of comming games here).

There's room for concern regarding the PS3, but I do think that we are being too quick with the ax here. I think some of your opinions are stretches. In the end, people will end up with both systems (you gotta have Halo, Gears along with Metal Gear, FF and possibly Killzone in your living room eventually).

My $0.02.

[TaiNkosi]

Step One: Buy Horse, Step Two: Buy Cart

One of the most overlooked aspects of the success or failure of the current generation of consoles is the role played by the shift to HDTV. The Wii and PS2 do not benefit from HD and thus do not require that very expensive upgrade to fully enjoy what they offer. The PS3 and 360, by contrast, do require HD to differentiate their output from their predecessors. THAT is the oft overlooked premium that truly separates the Wii/PS2 buyers from the PS3/360 crowd (by crowd I am obviously speaking metaphorically). The PS3 in particular has impressive capabilities that would require an equally impressive bank account to fully exploit. What gamers truly needed before these high-performance consoles were dirt cheap HDTVs. That's really the opportunity that Sony missed.

[Coolone3000]

A product of their own making!

This may come as no surprise since I?m not a huge Sony fan, but i agree with this article and given the facts its hard not to. I think what happening to Sony right now is a result of their arrogance and their own self image. Before the console even came out they said it would sell because they are who they are, Sony! I do however believe that the PS3 is an admirable piece of hardware that is powerful and fairly well designed. I?d have to argue that Microsoft is more in touch with gamers and built a truly great machine with the software to match. XBOX Live is unmatched and simple innovations like the headset plugging into the bottom of the wireless controller and the built in media center extender shows they are hear to make a gaming machine. Its just sad to see that Sony seems to do things with only themselves in mind. Blu-Ray is in the Playstation not really to benefit us, its because Sony has such a big investment in the technology, that putting it in the PS3 was just a way to try to ensure their own victory. Anyways, I?m obviously getting away from the point. But even with all my complaints I was tempted to buy a PS3 but 2 things stopped me, the price, and what does the PS3 give me that the 360 doesn?t. Sure I get Blu-Ray right out of the box, but I?m also paying extra for it, what if I don?t want it? With the 360 its my choice if I want to spend extra money to watch high-def movies. And were are the exclusives? At least the Wii offers me a totally different experience and of course their going to be plenty of exclusives on that system. Sony was once on top for a reason that i never fully understood. The PS2 was an okay machine but the only thing really going for it was the massive amount of software. They just lost sight of the consumer and expected us to follow them wherever they go.

[bakinmola]

You're knowledge of gaming is lacking

There are indeed some blockbuster titles in sight for Sony. And as a recent 1up article stated, the PS3 actually has the greatest number of AAA titles coming out this holiday season of any of the three consoles.

With the exception of 1-2 major titles, ALL blockbuster titles on the 360 will be available on the PS3. But there are more standout exclusives on the PS3 this holiday that will not be available elsewhere: Ratchet & Clank, Heavenly Sword, Warhawk, Uncharted, Folklore, Socom: Confrontation, Haze & possibly still UT3. And that's in addition to the dozens of games that will also be on the 360.

And then early 2008 you have MGS4, Little Big Planet, and Killzone 2.

So you are sadly mistaken if you believe that Sony is not creating a first class gaming environment for their console! And now the fact that you can enjoy those great games AND have a blu ray player for around the same price of a 360... it'd be stupid not to get a PS3 unless you do not yet have an hdtv.

[Bug-Eyed Earl]

Can you say "The sky is falling"?

I disagree, and I think this kind of loose rhetoric serves only to perpetuate the pseudo-problem you describe. The PS3 is hardly floundering or on "life support", and comparisons to the Sega Saturn are highly premature. Making preparations for a strong holiday season is somehow seen as desperate? Please. It's undeniable the PS3 had a slow first year, but if you remember, so did the PS1 and PS2, and look how they turned out. But finally, winter '07 is going to be a great season for the PS3 as far as software goes, and 2008 is looking to be even better (the PS3 will be releasing the exclusive blockbuster titles you claim it needs yet lacks). Lest you confuse me with a "Sony zealot," I'm not trying to convince anyone to like the PS3 or to sell the system here. I have one and I'm quite happy with it. If you're not as pleased with your purchase, that's fine too -- but that's no excuse for such sensationalistic and, dare I say, irresponsible journalism.

[the.teejster]

I agree.. Sony is Desparate !

The ONE thing everyone agrees on is that the Playstation 3 is the cheapest BLUE RAY Player on the market.

I firmly believe that people wanting a cheap HD movie player is the only thing that's truly pushing this console right now.

That is the reason, I believe, why the PS3 is doing so poorly. This is supposed to be a GAMING CONSOLE yet the majority of people buying it are doing so simply because it can play blue ray movies.

What is the attach rate for the PS3 for games as opposed to Blue Ray movies ??

Sure, there are a few AAA titles coming to the PS3 in the next 6 months, but with all the AAA titles available for the 360 and given what's coming (not to mention the 360's untouchable Xbox Live service) the PS3 has a major uphill battle in front of it.

[tesuma]

And the anti-ps3 negativity just wont stop.....

First when halo3 came out you said

"Up to this point, the Playstation 3 has performed about as poorly as we can expect from a console. With no games to tout as deal breakers, the PlayStation 3 is dead in the water. And while some still hope for the days of Killzone saving the PS3's day, it's time to give up hope--nothing can save it now."

And now that they've got a price drop and the complaint " ps3 too expensive" can no longer be used, sony is now considered as "desperate"?! *sigh* its ******** actually. Just asking What if things start to turn around? its only the consoles first year. its not like any other console besides wii did leaps and bounds better. Especially the 360

To call the ps3, this gens "sega saturnzz!!" in its first 10 months or to call sony "DESPERATEZ" for simply making a cheaper and affordable console is just ridiculous exaggerating it by a friggin longshot completely. Your negativity just outlandish and nearly funny to look at.

You call sony desperate and the ps3 this gen's sega but fail to mention that the ps3 has been on Cnets "most wanted" list for the longest now. And this is the website YOU work for.

It's lose-lose with Sony and you...
No price cut and Sony gets bashed, price cut and Sony gets bashed and called being desperate...this is ridiculous.

[russ99a]

Microsoft-biased writer?

Why should we expect straight analysis from a writer who's bio clearly states he worked for PC World. Sounds an awful lot like a Microsoft fan to me.

Despite current appearances and better software as of now, PS3 is a better machine than the 360. That will only get more obvious in the future, especially when Microsoft requires users to purchase more hardware to play the same games at the same quality as on PS3. Give it a year, it will happen

I only hope Sony can start to leverage it's movie and music properties so that PS3 users have similar online purchase/download access to content as the iTunes Music Store. That will also have a vast effect swaying consumers over to the PS3.

[monolith2001]

Eureka! Who knew?

Reisinger has totally cracked the case and solved all of Sony's problems with strokes of a keyboard. Who knew all Sony had to do was give us blockbuster games. I say they should put the brakes on the BC-less 40GB, go back to $499 (they won't look desperate anymore either) and just put some blockbuster games out for the holiday instead! It's so simple, I don't know why we didn't see this before. c|net, this guy is a rising star and you better throw some money at him before Sony hires him.

In all seriousness, they seem to be doing what people have been complaining most about...the price. Whether the 40GB is the everyman solution or cheap enough is up for the market to decide.

There are some quality exclusives and a few multi-platform titles out already on PS3 that shine even for those like myself who multi-console game but there clearly is more out on 360 right now. Looking over the PS3 library for the next 6 months, I don't think one can sneeze at what's on offer. I think we sort of have to let this hardware move play out over a few months in conjunction with high profile releases before we start the one-eye-open viewpoints. Price cuts and a very solid list of games over the next 6 months is exactly what Sony needs to be doing.

The loss of PS2 BC in the 40GB isn't ideal but if it's really important to people, you have options as long as you're not expecting a free lunch. If you want a nav system in your car, usually you gotta buy the top of the line model or buy a separate unit. At least they didn't gimp the core PS3 experience to drop the price.

[Thayvictusisback]

Desperate article

I do not consider myself a "Sony zealot", but in these times its impossible to like just one system.... if you don't like them all your a fanboy. Its kinda retarded, but I figured I get that off my chest before I state why sony is doing just fine.

Fact of the matter is I like Sony and they have done great in the last 10 years... they give me no reason to worry. I don't want every system, one is good for me. Unlike Microsoft, Sony isn't making you run out and buy the new hardware. They kept the PS2 alive. Developers know the ins and outs of the PS2 and it's making great games. Little by little developers will be able to harness the power of the PS3 and it will take over.

So sony has made a system that has a life of about a decade... sounds like a good hardware investment to me. The life of the xbox was what... 5 years? how long will the 360 last... another 5 or 6? Of course I want the hardware that has a plan to last in the long run. And with Killzone 2 and Metal Gear coming in Feb, getting a PS3 for Christmas makes perfect sense. When I was young I was a nintendo fan all the way. And it took Final Fantasy and Resident Evil to make me go Sony. I'm sorry but Halo and Gears of War are not gonna cut it.

I wonder if this article was even thought out. First off I'd like to thank sony for giving me a High Def format. With the price drops on TVs these days in 5 years most people will probably have a tv that is at least 720p. Blue ray plays 720 and 1080... I'm loving it. Again thinking about the future! PS3 has some killer games dropping in Nov. And with exclusive titles in 2008 like Final fantasy XIII, Grand Turismo 5 , Killzone 2, and Metal Gear, sony is going to clean up. Each one of those games can move consoles. Remember I haven't even metioned games that aren't exclusive life Grand theft Auto. And then it's all over when one of the best games I've ever played ends its trilogy.... GOD OF WAR.

So let me get this straight... PS2 is selling just about as much as any other next gen system right now. Then with all these games coming the smart bet would be that it then takes over to lead in 2009. Life support? Sega saturn? Desperate? Whats the name of the guy who wrote this... I'll be sure to avoid any topic he rights about.

[tubejay]

What's rubbish is this article

Go back and look at the titles that made the PS1 and PS2 hits for a few moments. They weren't reiterations of titles that already existed, they were games like Crash Bandicoot, Twisted Metal, Tomb Raider, Warhawk, Virtua Fighter, Tekken, Jak, Ratchet, and on and on. Most of the franchises that made the PS1 and PS2 tick were new franchises. I don't know how you can look at a game like Uncharted and Killzone II and not see how special and cool those games just might be.

Whatever blockbusters Sony will have, we don't know what they are yet outside of Resistance and Motorstorm. We do know that games like Ratchet and Clank, UT3, Gran Turismo, Metal Gear Solid and Final Fantasy will be huge games. By the end of this year there will be at least 4 must have EXCLUSIVE titles for the PS3, and next year is going to be even better.

It seems that you and most of the 360 fans like to give credit for multiconsole games to the 360 and none to the PS3. This has always seemed rubbish to me. The 360 has Biohazard, which I can buy for my PC, Gears of War, which I can buy for my PC, and Halo 3, and you act as if their line-up is somehow amazing with an extra year under their belt. Well Sony is going to have Ratchet, Uncharted, and Resistance out within two months, and to me that ties the number of AAA exclusive games, and unlike the 360, exclusive PS3 games don't go to the PC, so they are true exclusive titles. I need a PS3 to play those games, I only need a 360 if I want to play Halo.

Another reason that PS3 is a safer bet to win the war is because Japan isn't going to adopt the 360 over the PS3 for Next-Gen machines. They just won't, and haven't. So that ensures that PS3 will be in the loop, getting games, for a long time to come.

[koolcat71]

PS3 is alive and well, don't believe hyperbole

I never owned an Xbox nor a PS2 but when I went to the store and decided to get a nextgen system, the PS3 sold me because it had Blu-ray for free.

You mention Sony knows HW, but not SW. I would argue that Microsoft sure as heck doesn't know HW. The 360 has many blunders including no built in wi-fi, no way to expand the HDD not to mention the red ring of death. You have to put the cart before the horse and deliver a reliable, working system first.

Sony doesn't need to know SW, it just needs to be aggressive in making deals with those companies that do know how to make SW. Ultimately, the sales of the system will perpetuate the software, which perpetuates the console sales in a never ending cycle. You just have to provide that spark to a new system. Once the numbers are there, publishers can't ignore it.

Blu-ray is leading the HiDef charge right now and selling a system that doubles as a movie player as well as a game player seems like a no brainer to me. How many 360 owners add a Hi-Def DVD player?

You also mention no exclusive blockbuster titles in sight. I don't know if you said this to back up your article or you haven't done the research, but this holiday season and into '08 will surely see big name titles on the PS3. Whether they do well is yet to be seen, but you can't say they don't have anything in the pipeline.

Sony has always said the PS3 is in for the long haul with a 10 year expected lifespan. I don't see them giving up after year one on that especially now that software titles are starting to flow and Blu-ray is gaining more momentum.

check back in the '08 holiday season and I'll bet the headlines read like this:

PS3 claiming more market share with more titles coming this holiday season.

360 is doing well, Microsoft hints at a release date for the 720.

Wii sales are strong, but tapering off while the competitors make up some ground.

[AdamBombastic]

WTF !?!?!?

Wow, you'd think by the way this guy is talking, MS has actually been successful in making video game consoles. After two years MS has managed to sell a little over 10 million units...The PS1 and PS2 sold over 100 million each. So far I haven't been impressed, AT ALL, with what MS has been able to achieve. Does he think shareholders will continue to blindly stand by why MS piddles away billions of dollars for what? Preventing Sony's dominance in being the center of home entertainment? They pulled the plug on the xbox 1 after 4 years because it was a massive failure($4 billion) and wanted to start with a clean slate with the 360. Now what? They now have to deal with burden of defective hardware that will cost them billions more to warranty. I would be very concerned if I were a MS fan as I wouldn't be surprised if this was Microsoft's last attempt at making hardware. They had the market to themselves for a year and have sold what after two, 11 million units? The hundreds of millions of PS fans aren't turning to MS. Did they disappear? They didn't flock to the Wii as that hardware is almost supplemental and not causing PS fans to jump ship. No, they are waiting for the heavy hitters such as GT5, MGS4,GOW3 and FF. For all the times I hear xbots running their mouths about the PS3's current lack of AAA software, I wonder if they even realize what will happen when the heavy hitters do arrive. Also if you visit Metacritic, you'll see the PS3 has 28 games with an average score of 80 or higher, so their are some excellent games such as Motorstorm and Warhawk(the funnest online game I have ever played). Sony has more people working in their internal development studios than Nintendo and MS combined. The AAA, system selling games are right around the corner, and MS has played its trump card(halo 3). What I see in MS and the 360 right now is more in line with the Dreamcast. Some good software but massive losses and failure to achieve widespread acceptance. Although I see the tide turning very shortly, the PS3 could be a massive failure and Sony still has the two greatest selling consoles of all time in their track record. All MS has right now is failure and losses.

[varoon5]

He's right, you're wrong.

It's sad to se how many people will attack the writer as soon as it says
anything pro xbox, pro-microsoft. You do have to realize that there are more
Microsoft haters, than there are microsoft fans. Microsoft never pulled the
plug on Xbox, thats the stupidest thing i've heard. Xbo was a suces, and for a
brand new company in video games, they gained huge amount of market
share. now Xbox 360 has surpassed PS3 in sales. PS 3 has been a flop, take it
like it is, PS2's biggest blockbuster game was Grand Theft Auto. And that is
now available on Xbox. So why buy a ps3? for blu ray? You can't pect to sell
an entire console basing it on the value of being able to play blu ray. Xbox
didnt bank on HD DVD's selling thir console, which is why theyre winning.
Xbox has a reputed online gaming experience, connectivity with windows. It
lacks bluetooth, but nobody in the NOrth American market would really
complain, because bluetooth is not as essentilal in everyday life as it probably
is in Asia. When Xbox was producing, it had a proper evaluation of what
gamers, want and need. unfortunately, you will never find Blu Ray on top of a
gmers list. YOu will find good games, exclusiv blockbuster titles, and an
excellent online gaming experience. And Xbox 360 delivers, and that is why
Xbox 360 succeeds.

And stop bashing the writer, it's pathetic. Supposedly every writers a
microsoft fanboy.

[pabadamus]

A bit too biased fo my tastes

This opinion piece is a bit too biased for my tastes, but then again it is the opinion of the writer. The writer looks to penalize Sony for addressing what we all know was the most egregious error in the PS3?s introduction to market?pricing. PS3, the game console, was set at a price point far above mass market adoption. PS3, the BD media center, was positioned perfectly @ $600.

I think Sony?s introduction of the more consumer/price friendly 40gb sku is a necessary and natural step in the marketing process. Sony needs to increase their share beyond early adopters and the slow PS2 transitional crowd. There is tremendous pent-up demand for the console and Sony would be remiss not to capitalize?especially in the holiday buying season.

To sensationalize this issue and to write in such a skewed tone really takes away from the writer?s impartiality. I cannot trust any article/writer that is so dismissive of any console?s positive efforts. It is way too early in the game to make the failure comparisons. Maybe this writer should remove the master chief visors and pay attention to all the socalled non-AAA Sony titles to hit within the next 4 to 6 months.

[nova17]

Wow, are you for real?

I'm seeing a very strong trend in your blogs as of late, and they all point to a severe dislike towards Sony. Which really isn't a problem-you're entitled to your own opinion-but it seems to have gotten you into trouble now.

And you're one hell of a hypocrite as well, I might add. In your blog "Reason for Sony's dominance: Mind share", you specifically referred to the PS3's price drop as a necessity for Sony in assuring its future SUCCESS.

Straight from you, my friend:

"Some companies believe we are all lemmings who will flock to stores to buy the top company's products just because it comes from that company, but I think discounting the general public is a dangerous business strategy. Although Sony currently commands respect and dominance in this business, the tides will change. And then the $600 game console and inconceivably expensive HDTV better give way to a $400 gaming system and a reasonably priced HDTV, or Sony's success may become a significant flop."

http://www.news.com/8301-10784_3-9740250-7.html?tag=more

Well, the $400 gaming system is here, and yet you continue to act like its the end of the world as Sony knows it.

You can throw me up that shovel, I think the hole you've dug for yourself is plenty big enough.

[nova17]

Feel free to prove me wrong, Don

Judging from your blogs, I would assume that timidity is not one of your distinct characteristics, so feel free to take part in this discussion, in your own defense.

I dont like writing off critics as "disgustingly biased beyond all belief" without proper justification for doing so.

[kazhunter]

hmmm..as of right now

sega saturn > playstation 3

[kydrice]

Typical Cnet

Typical C|net article...does Gate's butt smell fresh today?