Version: 2008
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Comments on: Why Microsoft should acquire Sony's gaming division

Don Reisinger thinks Microsoft should acquire Sony's gaming division and Sony should want to accept the deal. What do you think?

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by gotrsx6 August 5, 2008 9:54 AM PDT
Before the fan boys appear, from an economics and business stand point, the points are well taken. However, i would argue here, that Sony's PS2 adventure, which despite Nintendos long running ability to deliver, was by far more revolutionary, that Sony is in it for the long haul. After all, the PS2 still sells. I mean lets be honest, the PS3 is a decade more high tech, and yet i still see people walking into a best buy and shelling out 100$ for a PS2 to play madden. What we've been confronted with, as you point out, is an odd occurance where Sony got stuck with very high hardware costs, while Nintendo and increasingly microsoft, have been able to save money and still succeed.

I'm not a huge fan of the PS3, personally, i only use it for blu-rays at the moment, but i can see a year from now the price point being much more friendly and affordable. Blu-Ray is really the thorn in its side, because thats keeping the costs on the gaming side higher. Until there is a mainstream bluray player for 200, the PS3 stays outta reach for many Americans in these tough economic times. But people KNOW the sony name, and i don't think this is an argument which you can realistically support at the 2 years point of the life cycle. Its not out of the question, even the mighty Sega fell with a step too far (Dreamcast), its not impossible, but Sony is much too diverse to let this go easily.
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by planblove August 5, 2008 9:55 AM PDT
Although I think your story is a bit far fetched (Sony would go bankrupt before they let MS acquire them) you are correct that Sonys gaming division is suffering. They've made a lot of mistakes this generation. The only good idea they've had (which is their saving grace) was including Blu-Ray in the system. They need more great selling gaming exclusives which they don't have many of anymore. Even though the PS3 is selling, people are mostly using it as a Blu Ray player than a game machine, which actually does not help Sony because all the console makers make most of their money on the backend through game sales and accessories, not systems. But as far as them joining forces with MS? Not gonna happen.
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by optionshiftk August 5, 2008 10:11 AM PDT
A Microsoft -Sony acquisition would undoubtedly stifle innovation. There is way too much consolidation happening in today's world!!
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by jeffool August 5, 2008 11:05 AM PDT
Hrm. Y'know, if I were Sony, I'd (try to) find a way to open the PS1 publishing standard, and allow small devs and homebrewers to revel in the fun of being able to run their own games on every PS3 console with little/no hassle. Maybe it's because I'm an idealist, but I think that'd grab some headlines.

Of course it's also a matter of making sure it doesn't open holes in the PS3 pub. standards. That'd be pure doom.
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by Kwasiowusu August 5, 2008 11:52 AM PDT
There is so much wrong with this article, where do I even start?
I?ll just take this bit here:

Right now, Microsoft is a major force in the US and Europe, but it's practically nonexistent in Asia. On the other hand, Japan has always been a Playstation 3 stronghold and even now, it far outpaces the Xbox 360 on almost every measure of performance

These are the figures for Japan right now:
Media Create numbers LTD

PS3
2.241.756 million

XBOX 360
597.582

Last week?s figures were:

PS3 10,692
Xbox 360 4,941

I wouldn?t exactly call that ?far outpaces the Xbox 360 on almost every measure of performance?
In fact, with the launch of Tales of Vesperia in Japan on Thursday, the 360 will outsell the PS3 this week, and probably next week as well.
With a slew of very good Japanese RPG?s coming out in August and September, and the PS3 likely to fall below 10,000 units sold a week again, the gap between PS3 and 360 weekly sales in the coming months is not going to amount to a whole lot, let alone far outpace the Xbox 360 .
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by Kwasiowusu August 5, 2008 12:03 PM PDT
In addition to the above, the 360 has actually sold a heck of a lot more units in Asia outside Japan( South Korea, Taiwan, Hong Kong, Singapore etc), then the PS3 or even the Wii. In fact , the Wii hasn't even launched in South Korea or Taiwan yet, and the PS3 launched in those countries only in the recent past.
by EllieX8 August 5, 2008 12:00 PM PDT
I think Reisinger, much of your story is far fetched and unlikely. I also had all 3 machines although I gave away my Xbox360. Sony just needs better management of the gaming division. The PS3 is a fantastic machine but lacks titles and the user interface ie. controllers are archaic other than the Bluetooth. The reason why Wii does so well is the amazing user interface although the quality of graphics limits the long term broad market although it will do well in the niche low cost kids arena. (notice how I don't mention price, this is because if you add in the BlueRay player and the potential capability of the PS3 it is a better deal) The Xbox360 is only surviving due to the entrenched user market and titles. A top notch Google type management and development team would avoid bungled deals, slow uninspired development and really put the PS3 and Sony on the gaming map.
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by staticks August 5, 2008 12:09 PM PDT
Kwasiowusu, of all the bones you had to pick in this atrocious, economically-ignorant article, you point out the one negative thing about Microsoft? Obviously you're biased, but that doesn't change the fact that the XB360 is in dire straits in Japan; PS3 is leading by a huge amount in units sold, and its biggest franchise in Japan (Final Fantasy) hasn't even been released yet. When that game, as well as other JRPGs, hits for the PS3, expect their install-base lead over the XB360 to grow even more substantial, to the point of utter embarrassment. Whether you're biased or in denial, there's no getting around this eventuality: Sony has, and WILL own Japan this generation.
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by juuken2 August 5, 2008 12:15 PM PDT
Have you heard of anti-trust laws?

Have you heard of Sony and their determination not to lose face in the gaming industry?

Have you heard of competition?

Have you heard of anything called monopolies?

This is impossible because 1. Sony would not dare team up with Microsoft, 2. Sony would not accept Microsoft's offers, and 3. If Microsoft couldn't buy out yahoo, then what makes you think they can buy out Sony?

Please, do some research before you spew this fanboy drivel on the internet.
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by juuken2 August 5, 2008 12:15 PM PDT
Have you heard of anti-trust laws?

Have you heard of Sony and their determination not to lose face in the gaming industry?

Have you heard of competition?

Have you heard of anything called monopolies?

This is impossible because 1. Sony would not dare team up with Microsoft, 2. Sony would not accept Microsoft's offers, and 3. If Microsoft couldn't buy out yahoo, then what makes you think they can buy out Sony?

Please, do some research before you spew this fanboy drivel on the internet.
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by gcadays99 August 5, 2008 2:32 PM PDT
How bout you take your own advice and do your own research. Its not that Microsoft couldn't buy out yahoo. They could of easily payed alot more but they didn't want to. There are alot of big time Yahoo shareholders that were upset after Yahoo refused to take the deal. There is even one guy I forget his name that has been openly vocal about Yahoos decision.
by sticks1839 August 5, 2008 12:22 PM PDT
The article makes valid points on all accounts regarding the deficiencies of either console and gaming division and proposes an interesting idea. Unfortunately it can only really be an idea because much more difficult than competing against the Wii-machine would be for either company to absorb the gaming division of the other. The logistics alone would be not worth the effort, not until the next generation of consoles at least.

Even without the impossible complications of merging the two biggest gaming divisions is that the article misses the real reasons for the struggles of both Sony and Microsoft. I don't think it properly realizes though that the big difference between this "console war" and generations past is mostly about price, especially in these tough economic times. The PS3 and XBOX360 are both still too expensive when compared to the Wii and is only magnified by the buzz about the fun Nintendo console. As prices come down (possibly this holiday season), both the PS3 and 360 will do much better. Then the games will come, and everyone will be happy.
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by silverwolf38401 August 5, 2008 12:22 PM PDT
Xbox360
0.64M Japan
12.09M America
7.33M Others

PS3
2.30M Japan
5.46M America
6.80M Others

Don't really know what chart you're looking at! But from the one I just pulled at VGChartz MS is pretty much losing in every territory except the US. Seems that year head start isn't helping much......
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by Kwasiowusu August 5, 2008 12:44 PM PDT
Vgchartz is useless. They make figures up.
My Japan figures are direct from Media Create. PS3 Japan sales in Japan are pathetic. This very week, PS3 weekly sales in Japan will probably fall below 10,000, and next week, the 360 will outsell the PS3 in Japan.
In the rst of Asia, the 360 is ahaed of the PS3 in South Korea, Taiwan etc.
Europe? When sony tried to cliam that the PS3 had outsold the 360 in Europe, Microsoft shot that cliam down without any problem whatsoever. Even Sony was forced to admit that 360 sales had shot up sinnce the 360 price cuts in Europe in March, and GTA IV in April.
by Kwasiowusu August 5, 2008 12:32 PM PDT
@ staticks
# 1. The 360 currently has a heck of a lot more, and better JRPG's then either the PS3 or the Wii, with plenty more to come.
# 2. PS3 sales in Japan right now are running at just twice that of the 360 per week, with the 360 on track to actually outsell the PS3 when this week's sales figures come out next week. By comparison, the original XBOX never even came close to outselling the PS2 in any week ever.
# 3. PS3 sales are on track to dip below the not so magical 10,000 units per week sales figures just this week, even as the 360 sales get a major boost from tales of Vesperia..
# 4. PS3 sales in Japan are pathetic when compared to Wii sales, with the Wii having already sold over 6.4 million units compared to only 2.2 million units PS3?s sold.
# 5. While the PS2 outsold the original XBOX by a massive over 40:1 ratio, the PS3 has not even outsold the 360 by 4:1 life to date.
# 6. The 360 has already sold more than the total life to date sales of the original XBOX, and is on track to end up selling over 3 times as many unit?s a the original XBOX did. By contrast, the PS3 is not even within a thousand miles of life to date PS2 sales, and has every indication of finding it very hard to hit that target in the foreseeable future..
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by juuken2 August 5, 2008 12:34 PM PDT
Kwasiowusu, that smells like fanboy drivel and not facts.
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by evilmonkey501 August 5, 2008 12:42 PM PDT
yeah right....If that ever happens then we will all lose...Microsoft is not a pioneer...they just rehash the same crap over and over and over....halo, gears and viva pinata...thats it. (btw Bungie ,bioware and pandemic are now multiplat since the Microsoft split) They have 1 first party studio now. why? Because they treat everyone like crap. Sony on the other hand has 13 first party studios and 3 3rd party studios that develop exclusively for the ps3. Give it 2 years and sony will pwn xbox. We haven't even seen games from 8 studios that are still developing new ip's for the ps3.This isn't even including :Little Big Planet, Socom, God of war 3, Killzone 2, Massive Action Game(MAG) ,L.A. Noire ,Afrika, Dark mist, Final Fantasy Versus XIII, Gran Turismo 5, Heavy Rain, InFamous, MotorStorm: Pacific Rift, White Knight Chronicles, Red Dead Revolver 2, Resistance 2 and Yakuza 3, plus over 150!!!!!!! exclusive titles already known
to be ps3 exclusives...see link: http://boardsus.playstation.com/playstation/board/message?board.id=pslounge&thread.id=267865.why dont we hear of this anywhere? did microsoft buy the internet too? Also, the xbox has yet to be in the clear as well. (.7 billion in the hole...has never turned a net profit from any games whatsoever....ever...) You be the judge.
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by evilmonkey501 August 5, 2008 12:47 PM PDT
http://www.ps3forums.com/showthread.php?t=86124
by staticks August 5, 2008 12:47 PM PDT
Kwasiowusu : You're just a biased XB360 fan that refuses the acknowledge the truth of the situation in Japan. Even if Tales of Vesperia gives the XB360 a slight boost in sales in the East (and it will ONLY be slight), it won't make one lick of difference over the long-term, sales and install base-wise. Even Blue Dragon and Lost Odyssey didn't much difference at all in Japan, what makes you think that a relatively small, underhyped release in Tales of Vesperia will catapult the XB360 into being even half-competitive with the PS3?

The Playstation brand, and its Japanese-exclusive IPs, have always been far too strong for anyone to overcome. Microsoft will lose again by a huge margin in Japan; it doesn't matter what they do, or how many JRPGs they have. The XB360 simply isn't popular in Japan, and this will almost certainly not change in the foreseeable future. Japanese people simply are not interested in Microsoft and Xbox hardware. This is an irrefutable fact, a foregone conclusion.
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by Kwasiowusu August 5, 2008 12:48 PM PDT
juuken2 smells like a mindless bottom feeding Sony zombie, who has about as much brains as your average gardern vareity worm
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by BrianC6234 August 5, 2008 12:49 PM PDT
I'd give up gaming if my only choice was Microslop. Better for them to just get out of gaming and leave it to the masters at Sony.
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by Kwasiowusu August 5, 2008 12:59 PM PDT
staticks Playstation brand in Japan?
Is that why the Wii is outselling the PS3 by 4:1 every single week? and is that why PS3 sales are about to fall below the 10,000 a week mark(about the same as the PS2)?
Lets face facts: Playstaion brand has done nothing for PS3 sales so far.
At this stage in the previous generation, the PS2 was outselling the original XBOX by a massive 40:1 every week. Today, the PS3 is finding it hard even outselling the 360 by a measely 2:1 in Japan, and the 360 is actually managing to outsell the S3 in certain weeks, like this very week we are in right now.
For the rest of August and September, I don't really see any PS3 games, that is going to give the PS3 any major boost in Japan, even as the 360 enjoys solid boots from 3 big JRPG's in the next 2 months alone.
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by juuken2 August 5, 2008 1:43 PM PDT
And Kwasiowusu smells like a mindless Microsoft bag of turdshit.

LOOK WHAT I DID THAR.
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by juuken2 August 5, 2008 1:44 PM PDT
And Kwasiowusu spews even MORE CRAP!
Wow...you're the worst 360 fanboy I have ever seen so far...not to mention pathetic.
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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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