November 19, 2007 9:20 AM PST

Sony finally 'gets' gaming again

by Don Reisinger
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Sony Playstation 3

Sony is back

(Credit: Digital Home)

Has it finally happened? Has Sony finally found the solution to its year-long Playstation 3 problem? It certainly looks that way.

According to the company, Sony has cut its software development kit prices in half to $10,250 in North America, $8,600 in Japan and $11,250 in Europe. And while this may not mean much to some, to me it indicates a startling change of course by a company that had heretofore lost sight of what is important in this generation.

And although I've beaten on Sony quite a bit on Digital Home, this change in policy -- namely, price reduction -- could spell trouble for both Microsoft and Nintendo.

Reducing the price of a software development kit is immensely important to the survival of the Playstation 3. So far, Sony has been desperately trying to court developers to make games for the console and has been generally unsuccessful in doing so. And while this can be attributed to more factors than the cost of the software development kit, it certainly makes it much easier for developers to jump into the world of Playstation 3 game development.

But perhaps the most important development stemming from the price cut is the ability for independent game studios to more readily create games for the PS3.

In fact, Game Development Association of Australia CEO Greg Bondar indicated that Sony's move would allow smaller software developers to be more competitive in the game industry.

"A lot of the larger, established studios can get into it, even they find it cost prohibitive, but in general it now gives us and our members a broader base of access to such technology and opportunity to develop. I think it has been a prohibitive factor," Bondar said.

As I've mentioned many times before, hardware does not sell consoles. Instead, a steady stream of good games will make any person go to the store and plunk down $399 or $499 for a console. And now that smaller game studios may be able to enter this market, Sony has created an environment that is conducive to innovative game development.

But the story doesn't quite end there. Sony's dual-pronged attack on pricing should be extremely effective. Aside from a reduced cost to developers, the company's decision to drop the price of the Playstation 3 to a more competitive level was a welcome move.

In effect, Sony has finally realized that success in the gaming industry does not rely on a highly advanced machine that has very few games to play on it. First and foremost, people buy consoles to play games -- it's as simple as that.

And for the first time since its release, the PS3 is no longer just a multimedia device, it's a full-fledged gaming machine that will appeal to the two most important facets in the gaming industry -- developers and consumers.

And while I'm still suspect of its motives, Sony is well on its way to becoming a force to be reckoned with in the gaming industry. And if it continues to push the right buttons and create a compelling reason for consumers to buy the console, look for Sony to become the leader in this industry once again.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Sony gets a clue... :) One more clue required...EX
by aztec92154 November 19, 2007 3:11 PM PST
This month is THE month for Sony. Lowered console price + Great games being released = SALES! Now all they need is MORE FUN, UNIQUE, EXCLUSIVE games! Warhawk goes in the right direction but its not enough. Every major console has fun, unique, exclusive titles. Think about it, Wii has games that you know are Nintendo exclusive.... Mario Galaxy, RE:Umbrella Chronicles, Metroid Prime. XBOX does the same: Halo 3, Gears of War. I want some great two player games to play on my PS3!!!!
Reply to this comment
Still Expensive
by z00ms November 19, 2007 3:26 PM PST
That is when compared to the cost an Xbox 360 development kit. Which is currently around 6000 euros. Still a step in the right direction.
Reply to this comment
Whether $10k or $20k is immaterial in the long run
by make_or_break November 20, 2007 6:12 AM PST
The BIG hit for any developer is in how LONG it takes to develop titles for a console. $20k is a drop in the bucket when compared to those costs, regardless of how small an operation the gaming developer is. Is Sony willing to help subsidize that?
Reply to this comment
Amen to that brother!
by Squirrel1081 November 20, 2007 7:07 AM PST
Go Sony! :o)
Reply to this comment
This isn't going to make a big difference
by quick90 November 20, 2007 8:20 AM PST
considering the fact that most top games cost millions to make, what big difference is a few thousand? sure it may be a step in the right direction; but a small one at that
Reply to this comment
$10k for PS3 sdk still not "competitively priced"
by youdumbcat November 20, 2007 8:32 AM PST
Nintendo's sdk for for the Wii is $1,732, less than 20% the cost of Sony's sdk for PS3. When the PS3 sdk comes down to about $5000-$6000 (purported cost of the Xbox 360 sdk), then we can talk.

Until then, its more rough times ahead for Sony.
Reply to this comment
Sony doesn't get gaming, they're desperate
by JazGalaxy November 20, 2007 1:06 PM PST
I think what people miss, or do not know, when given information like this, is that Sony was running on the strategy that they were going to spend money to make money.

They intended to delay the profitibility of the PS3 by twice as long as it took the PS2 to become profititable in order to invest in the cell processor and blue ray technologies.

The high price of the PS3 and PS3 development kits were integral to reclaiming all that money that they spent coming up with the thing.

By dropping the price of the PS3 and PS3 development kits, sony is basically pushing their investment return further and further out.

The fact that they are moving a unit or two is indeed good news for them, because it means they are penetrating the market and getting the unit into homes, but the fact that they had to cut prices to do so is a HUGE problem for them and their financials.

I haven't seen their bank book, but I'm sure their current and very vocal pleasure at the beginnings of their "turn around" belies a quiet desperation.

They based their strategy on PS3 selling a lot MORE than the PS3. Not less.
Reply to this comment
They've still got a ways to go
by jwb1976 November 21, 2007 4:01 AM PST
Until they catch up with the Xbox 360 on either mandating or upscaling to 1080i for we HDTV owners whose TV's don't do 720p, they still won't have my business.
Reply to this comment
No matter what Sony does...
by RRosal November 23, 2007 5:56 AM PST
someone out there will always have something negative to say. This is a move in the right direction for Sony to get back into the videogame arena. And with developers pushing out games like Assassin's Creed and Call of Duty 4 that look just as good as the 360 version, it looks like the PS3 is getting there.
Reply to this comment
i dont think so
by killers creed November 23, 2007 6:24 AM PST
im not trying to come off as a hater but really sony is just getting what they deserve. they've constantly made lots of money off a name and good advertising. consumers in the gaming industry are getting more aware of this. they got the hardware its amazing hardware that i really look foward to using... just not yet though. ps3 needs alot more exclusives like l.a. noir! im talking about triple A titles not resistance!
Reply to this comment
I sit in waiting!
by joeycraxman November 23, 2007 5:46 PM PST
When the Wii and the PS3 first came out I always knew the ps3 was the superior machine (my opinion) but because of the terribly high price of the ps3 I went with the Wii and I am kind of sorry I did. The Wii, while a nice and affordable console, lacks any really kick a-s-s games except Twilight Princess. I mean Wii play and Cooking Mama cook off, you have to be kidding me. I think I am going to wait to get a ps3 until the next price drop. Sony just has to market their console better and then I think they will be ok.
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Gaming media has constantly underestimated Sony
by Itsamoto November 24, 2007 1:00 AM PST
The PS2 is still the juggernaut of the gaming industry with an install base of over 100 million units and regularly outsells the 360 in Japan and the PS3 in USA. There is so much life left the PS2 - you have to think that maintaining the cash-flow from a product 7 years old is a little sweeter than the bitter start of the PS3. Isn't it plausible that Sony knows that they're doing and instead of "launching" a PS3 instead chose to phase it into the market so as not to kill off the PS2?
Reply to this comment
Uh, no, not really
by clem22 November 25, 2007 2:05 PM PST
I'm not sure you really get the whole picture... If Sony was so smart and if their intention was to not cannibalize the PS2 market, then they did it in the worst way possible. Let's see - in order not to destroy our PS2 market, why don't we introduce a system that nobody buys and that will cause our gaming division hundreds of millions of dollars in losses a quarter. Yeah, Sony sounds really smart there...
Why not price the SDK at Wii's level?
by Genjinaro November 25, 2007 8:22 AM PST
IF you want to peel the market from M$ and Mario I'd like to do it with a bang that can't be easily matched.

Its going to take Sony making a sacrifice financially in order to make them gain the momentum they want in my honest opinion .

I think costs & prices need 1 more "big" push to be competitive enough to do some damage to its rivals.
Reply to this comment
duh they get gaming againn
by samwapi November 25, 2007 12:06 PM PST
of course they get gaming again, they made the ps2!! the ps2 sold the most during christmas last year. even though there was a 360, wii, and a ps3. i knew this day would come
Reply to this comment
duh they get gaming againn
by samwapi November 25, 2007 12:06 PM PST
of course they get gaming again, they made the ps2!! the ps2 sold the most during christmas last year. even though there was a 360, wii, and a ps3. i knew this day would come
Reply to this comment
What do you mean duh?
by Matthew George November 25, 2007 12:33 PM PST
Sony has been FAILING with the PS3, which is what motivated them to make
the price changes. And your response is "duh, i knew this was coming"? That
makes no sense at all. Sony is/was failing, which promoted their move here
with prices. Even with the move, that does not guarantee anything here. The
simple fact, is that as much as Sony WAS the King in the video game industry
for many, many years, Microsoft has came in, and not only put "Sony on the
ropes" with some massive uppercuts, but they have actually taken the lead in
many people's eyes as THE video game giant. Even being able to have such a
close race, if you will, is an extremely amazing achievement by Microsoft, for
remember, Sony had how many years of video game industry experience
BEFORE Microsoft came in?

Hmm. And to now (rather quickly in my view) have Sony on the ropes
clinging for life.

Amazing accomplishment, and one that must be respected by any fan of the
video game industry.
Sony needs to keep listening
by clem22 November 25, 2007 2:23 PM PST
Sony gets and has always gotten a lot of respect for what they did with the PS/PS2, but they clearly thought everybody would just eat up the PS3 regardless of cost or software. The sales of the PS3 skyrocketed once they introduced a slightly lower end model at a lower cost. They clearly made a mistake and have finally realized it and changed course. They should have listened to the market and done that earlier much like Microsoft should have listened to the market and introduced HDMI into the 360 earlier instead of trying to tell the market what they wanted.
Reply to this comment
Cell was also at fault.
by poopster November 25, 2007 2:25 PM PST
Sony's choice to use the cell processor was also a big reason for low developer adoption.
Reply to this comment
Coming of Age
by Starfires November 25, 2007 5:17 PM PST
The PS3 has always been an impressive device- it was just hampered by the unreasonably high price and being difficult to develop for. Now both of these factors have been overcome (the latter by new and cheaper development kits) we should see it take off. The fact that the PS2 is still going strong is interesting and there are still loads of new games coming out for it. If you travel to some Asian countries you see copies of the original NES doing well and PS1 as a luxury, things take time to be adopted!

As far as having other choices to make it cheaper last year, I'm not sure it was that simple for Sony if they really wanted to be forward looking. Blu-Ray was pretty essential to their conception of this, I think for gaming as well as movies and only recently have the drives become cheaper to produce. The benefits of the advanced hardware and Blu-ray can be seen in Ratchet and Clank, for instance, which has more on screen than anything I've seen before. We'll just have to see how many developers can make such good use of the machine's abilities, though I expect it will be too much time and trouble for all but a few to really use them extensively. The Cell is hard to program for and too unusual for most to bother studying, though better development kits might bridge the gap, we'll just have to see. Really, though, it doesn't matter, the main thing is having smooth, compelling games, whether or not they use all the machine's features.

Even if it generally only matches the X-Box 360's (still impressive) level of performance, having an included Blu-Ray player, HDMI 1.3 and a quiet fan make it a way better multimedia player right out of the box, which makes it much better value. You are getting so much more than just a dedicated console, you are getting the perfect partner to an HDTV. People can see that and now the price is down, they are buying it in droves.
Reply to this comment
I love Analist
by HI-Def88 November 25, 2007 7:18 PM PST
You guys think your so smart but Sony has ruled the world in video games since the PS1.You think when you put that much tech in a machine its going to be cheap,I don't think so just sit back and in 2 years you will be saying wow that's the PS3 look at Uncharted it looks better than gears of war and naughty dog said they have only used about 35% of the PS3 power and insomniac said the same thing with Ratchet and clank so watch what I am saying and when MGS4 hits and Little big Planet you all are going to eat your words for saying Sony has lost its gaming roots.
Reply to this comment
Much rather go for online games
by ubergeek111 November 25, 2007 9:45 PM PST
I think that online games are great, with the increased speeds. There's addictinggames.com, http://www.justexpressing.com etc etc
Reply to this comment
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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