Sony's software brilliance still isn't enough ( gamesindustry.biz )

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Hardware pricing remains the elephant in the room, says Rob Fahey


Sony came to Gamescom with a lot to prove. In spite of a general consensus that the company had narrowly bested its platform holder competitors with its showing at E3 a few months ago, 2012 has not been a positive year for the company. Sales of the PlayStation 3 have slackened, while Vita has had the weakest launch of any PlayStation hardware platform ever. Sony's games division, traditionally a bright spot on the company's financials, turned a loss. If 2012 is going to be rescued, it's going to have to happen in the Christmas quarter.

The expectation was that Sony would begin its efforts to salvage a tough year by announcing a new model of PlayStation 3 hardware - slimmer and cheaper than the existing console. A PlayStation Vita price cut might also be on the cards, although that kind of embarrassing climbdown announcement is more traditionally carried out at a dour press conference in Tokyo involving a lot of bowed heads, rather than on a festive event stage like Gamescom.

"Pricing and hardware never troubled the stage. Instead, the company put software front and centre, with a strong, confident presentation which was rich with new IP"
In the end, though, Sony took an altogether different - and arguably more aggressive - approach to Gamescom. Pricing and hardware never troubled the stage. Instead, the company put software front and centre, with a strong, confident presentation which was rich with new IP. E3's over-long and rather botched Wonderbook presentation was redeemed with a set of announcements and video demos that suggest that the company could really be on to something in the kids market. Vita, embarrassingly neglected at E3, was given centre stage and an intriguing new Media Molecule title.

This was a conference presentation which had a strong sense of being carefully orchestrated by Sony Worldwide Studios, in so much as it was all about software. Certain strategic aspects of Sony's overall approach were visible in the mix - connecting Vita to PS3 is clearly seen as a major USP for both devices, while the extension of PlayStation Plus to Vita is a welcome move that serves to reinforce Sony's commitment to the (now thoroughly excellent) Plus service. In general, though, the casual observer would come away with the impression that Sony has only one strategy for success - "make great games".

Which is absolutely fair enough, and indeed a very laudable approach. As a gamer, it was glorious to see that Sony's ability to create and support titles rich in imagination, whimsy and creativity is still thriving - there's not a single title among Tearaway, Rain and Puppeteer that I don't expect to buy. "Show us the games" is a constant refrain when we watch conferences laden with corporate nonsense - and as a consequence, I end up feeling deeply churlish for being the voice in the corner saying "actually, that might not quite be enough".

"People buy consoles to play games, and Sony is quite right to identify the creation of those exclusive games as a vital part of any strategy to get people to buy its hardware"
Yet that's the truth. The work that Worldwide Studios and its partners is doing in creating exciting new games for PS3 and Vita is vital, and it's incredibly important to note the company's courage in defying industry conventional wisdom by creating well-funded new IP for a platform that's about to enter its seventh year on the market. People buy consoles to play games, and Sony is quite right to identify the creation of those exclusive games as a vital part of any strategy to get people to buy its hardware.

People also make buying decisions based on price, though, and the reality is that the PlayStation 3 has yet to crack the kind of mass-market price points which made its predecessor systems so dominant. Nearly six years since the launch of the console, its base model still retails for $249 in the USA, or £199 in the UK. By way of comparison, at an equivalent point in its lifespan, the PS2 was selling at $129 in the USA, while the PSone was already at a $99 price point.

Consumers may not be going out to research historical price-cutting activity in the console market, but they're smart. They know that console prices bottom out around the $100 to $130 range, and they know that the PlayStation 3 has been around for six years. The fact that the console launched at a (frankly ludicrous) $500 price point doesn't matter. It's six years old, and people don't want to pay $249 for a six year old piece of hardware - especially not people for whom gaming has become an increasingly cheap hobby in recent years, thanks to the rise of mobile gaming and other such trends.
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http://www.gamesindustry.biz/articles/2012-08-16-sonys-software-brilliance-still-isnt-enough
 
Truth is: 3 competent hardware and software companies are in a small field competing for small and short pickings. Sony isn't doing bad, it's just they're doing worse than the competition.

In a race, everyone's running, but not everyone runs in first place. If they don't die from these losses, they'll still cross that finish line, and be able to race again.
 
Nothing's wrong with Sony, It's just Microsoft played their cards right at 360's launch and now Xbox owners don't feel the need to switch.

It's the same situation with PS2 last gen, in the end who cares? Console wars are childish.
 
Sponge said:
Nothing's wrong with Sony, It's just Microsoft played their cards right at 360's launch and now Xbox owners don't feel the need to switch.
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Don't kid yourself, there's a lot wrong with Sony. No one goes from way ahead in first to fighting for second place without some serious mistakes.
 
SirIgbyCeaser said:
Truth is: 3 competent hardware and software companies are in a small field competing for small and short pickings. Sony isn't doing bad, it's just they're doing worse than the competition.
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I actually don´t think Sony is doing worse than Microsoft, if we focus on consoles, they´re about on par. Sony released a year later and is only slightly behind in hardware sales.

Their biggest problem at the moment is how to get rid of the money draining Vita disaster.


Regarding the article, i agree with the mentioned price point issue, it has to go down considerably below 200 €/$. No bigger HDD or other bullshit, just get the price down as far as you can.
 
A Human Becoming said:
Don't kid yourself, there's a lot wrong with Sony. No one goes from way ahead in first to fighting for second place without some serious mistakes.
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I just said Microsoft played their cards right at the start of this gen.

This implies Sony didn't, Sony is nowhere near perfect at all. I hated them at the start of this gen, but to say that their software isn't enough now is just a load. Tearaway has convinced me to purchase a Vita, when before I was criticizing it's lack of titles.

If anything, Microsoft needs to work on some software. What have they pushed out this year?
 
Sony had a lot of (major) missteps that came to bite it in the ass. Some did have a payoff (Bluray), but others still resonate to this day: "$599 US dollars", "next generation starts when we say it starts", difficult to program console that only recently began to hit its stride with many developers still having problems *cough* Bethesda *cough*, and the bad press that naturally resulted from the initial arrogance shown by the company.

Sony should have built the console as an online platform (the XBOX was the testing ground for Live) rather than a media hub. Most people didn't use the various SD card slots and Sony had to remove them. Many people didn't use backwards compatibility but when Sony removed it, it was a knock at its reputation since even though many people don't use BC, many would've liked to have the option (whereas most people didn't care about MMC or SD cards).

A Human Becoming said:
Based on the Vita so far who can say?
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Besides the memory card issue, what can Sony be blamed for? For not having enough software? Blame the publishers who are unwilling to take a risk (and rightfully so in this market).
 
Sony's problems this generation have come from poor pricing decisions and poor marketing. If they can correct those going forward then I think they will be fine, even in the face of stiffer competition.
 
Misterhbk said:
but to say that the games aren't good is fucking bologna, which is what was insinuated in the post I quoted
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No it wasn't.

You really are looking to be offended if you somehow read that as saying their games aren't good.

Their games are good, but most of them, in America, have failed miserably at attracting a mass audience like MS's big three of Fable, Halo and Gears and the various third party franchises on PS3.

It's not like Sony is exactly hurting in marketing these things, so the only answer is that Americans just don't find their games that appealing.

Truly a shocking concept I know.
 
Dropping the price on the Vita (a system who's 2012 launch price was hailed as incredible value) when they have Call of Duty and Assassin Creed bundles lined up on it's first xmas season just wouldn't make sense.

Drop the price in March or so yes but they should go for the income this Christmas will (hopefully) generate.
 
Misterhbk said:
but to say that the games aren't good is fucking bologna, which is what was insinuated in the post I quoted
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They're not good enough that people are buying them in huge numbers. That's a problem. The obvious goal when they create software isn't to be a media darling. It's to sell tons of copies. They're failing miserably at that this gen for whatever reason. It doesn't help that their marketing ranges from inept(Marcus and Kevin Butler) to non-existant.

SolidSnakex said:
Their software on a worldwide scale tends to do quite well. It's not really their fault that some people seem to think the gaming world revolves around America.
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They used to own North America. You don't think they view it as a huge failure that they're now in dead last place there?
 
2006-2007 Sony threw themselves off a cliff, but the PS3 has been great these last few years. My 360 bricked a year or so ago, and I haven't bothered getting a replacement, because PS3 is now getting all the cross platform titles at the same time, they're typically just as good as the 360 versions at least, and the exclusive scene - while not great for either - is certainly not any worse than Microsoft's(Microsoft has them beat on indie games though, which is a shame cause I would really like to play Trials Evo, Fez, Dust, etc.). Vita was just a wrong place at the wrong time kind of thing. They're still in the game.

The real test is going to be seeing if they remember the lessons they should have learned during the launch of the current gen when going into the upcoming gen.
 
yellowjacket25 said:
Sony's problems this generation have come from poor pricing decisions and poor marketing. If they can correct those going forward then I think they will be fine, even in the face of stiffer competition.
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I´d add the cell processor failure which is one of the reasons the PS3 was this expensive in the first place and of course the extremely poor launch/first year lineup.
 
Kusagari said:
No it wasn't.

You really are looking to be offended if you somehow read that as saying their games aren't good.

Their games are good, but most of them, in America, have failed miserably at attracting a mass audience like MS's big three of Fable, Halo and Gears and the various third party franchises on PS3.

It's not like Sony is exactly hurting in marketing these things, so the only answer is that Americans just don't find their games that appealing.

Truly a shocking concept I know.
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GT easily outsells Fable and Gears. Uncharted is right there with gears, God of War is right there with Fable, probably sales more actually. I still don't see your point.

Uncharted, GT, and GoW could be considered Sony's big 3 and they do damn good.
 
Daydream Sequence said:
They used to own North America. You don't think they view it as a huge failure that they're now in dead last place there?
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From a software sales standpoint? Not really. Most of Sony's own software has never really been that big in the US. They've had some hits like GT, SOCOM and Naughty Dog titles, but for the most part the majority of their games aren't big hits in the US. They've always relied on worldwide sales, which is where they tend to really excel.
 
I think there is a difference between quality and appeal.

Their software might be quality, but it's just not all that appealing, IMHO. I've never felt the urge to buy a PS3 despite owning a PS1 and PS2 (the 360 covers all the third party stuff basically and Forza scratches the Gran Turismo itch), and am waiting to get a Vita despite being a huge fan of the PSP.
 
SolidSnakex said:
From a software sales standpoint? Not really. Most of Sony's own software has never really been that big in the US. They've had some hits like GT, SOCOM and Naughty Dog titles, but for the most part the majority of their games aren't big hits in the US. They've always relied on worldwide sales, which is where they tend to really excel.
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That's incorrect. Take the Ratchet and Clank series. On PS2 the US sales of each game was more than the total of Europe and Japan combined(or close to it). On the PS3 versions US sales are below Europe for each Ratchet game. Sony cares very much about this. If they don't, they're fools.
 
Sponge said:
I just said Microsoft played their cards right at the start of this gen.

This implies Sony didn't, Sony is nowhere near perfect at all. I hated them at the start of this gen, but to say that their software isn't enough now is just a load. Tearaway has convinced me to purchase a Vita, when before I was criticizing it's lack of titles.

If anything, Microsoft needs to work on some software. What have they pushed out this year?
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It's just too late into the generation to reinvigorate the platform with new IPs or software in general. Microsoft managed to essentially relaunch the 360 with Kinect while Sony brought out the Move to very limited success. Sony can throw all the great software they want at the PS3 but it would better suit them to bring it to the PS4.

While you might be excited about Tearaway, the system itself is the real problem, not the lack of titles.
Terra Firma said:
Besides the memory card issue, what can Sony be blamed for? For not having enough software? Blame the publishers who are unwilling to take a risk (and rightfully so in this market).
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The Vita inherently to me has the same problem the PSP had: it's a handheld trying to emulate a console experience. I don't think most people want that and Nintendo has been smart enough not to try. The only clear benefit of making it nearly as powerful as the PS3 is for porting PS3 games. Besides that, development costs are just too much for the smaller US handheld market.
 
SolidSnakex said:
From a software sales standpoint? Not really. Most of Sony's own software has never really been that big in the US. They've had some hits like GT, SOCOM and Naughty Dog titles, but for the most part the majority of their games aren't big hits in the US. They've always relied on worldwide sales, which is where they tend to really excel.
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This.

Sony is still Sony for the most part, and with an even stronger first party output. It has nothing to do with their games, and more to do with them stumbling out of the gate this gen while Microsoft capitalized and took market share in NA.
 
Misterhbk said:
GT easily outsells Fable and Gears. Uncharted is right there with gears, God of War is right there with Fable, probably sales more actually. I still don't see your point.

Uncharted, GT, and GoW could be considered Sony's big 3 and they do damn good.
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GT5 did not outsell Gears in America and Uncharted in America is NOWHERE near Gears. Don't know what crack you're smoking to even suggest such a thing.

I don't care about discussing Europe, as I know Sony does do better there. But there's something with their games that are just not appealing to America.
 
Brilliance is a strong word :/
Does he mean above average, or maybe well polished?

Sony problem is Sony. They get in their own way of success constantly like clockwork.
They dont know how to price games, Hardware.
They dont know what their fans or consumers want.
They have some delusion user-base for their odd products and services that clearly does not exist.
They are their own problem. They cant see years ahead of time like their competitors. They don't understand how to get inside the consumers mind like everyone else does so effortlessly.
 
A Human Becoming said:
The Vita inherently to me as the same problem the PSP had: it's a handheld trying to emulate a console experience. I don't think most people want that and Nintendo has been smart enough not to try. The only benefit to me of making it nearly as powerful as the PS3 is for porting PS3 games. Besides that, development costs are just too much for the smaller US handheld market.
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Which is exactly why the 3DS will get a lot of newer games than Vita will, due to the reasons that you mentioned above.

What Vita is going to get will most likely be downgraded 360/PS3 ports of games. Not a good reason to shell out $250 w/tax for a handheld, plus a memory card.

Acrylic7 said:
Brilliance is a strong word :/
Does he mean above average, or maybe well polished?

Sony problem is Sony. They get in their own way of success constantly like clockwork.
They dont know how to price games, Hardware.
They dont know what their fans or consumers want.
They have some delusion user-base for their odd products and services that clearly does not exist.
They are their own problem. They cant see years ahead of time like their competitors. They don't understand how to get inside the consumers mind like everyone else does so effortlessly.
Click to expand...

Which is why they've been failing since PSP & PS3.
 
Daydream Sequence said:
That's incorrect. Take the Ratchet and Clank series. On PS2 the US sales of each game was more than the total of Europe and Japan combined(or close to it). On the PS3 versions US sales are below Europe for each Ratchet game. Sony cares very much about this. If they don't, they're fools.
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It's incorrect because of one series? And I never said that Sony doesn't care about the sales of America. I'm just pointing out that they're a global company. The sales in Europe and Japan matter just as much to them as those in America. Why do you think that they just put so much effort into their gamescom show, which was specifically for European audiences, while the other manufacturers couldn't be bothered to do shit? They'll put the same effort into their TGS show, which is another place where they'll probably be alone as far as other manufacturers go.
 
Kusagari said:
GT5 did not outsell Gears in America and Uncharted in America is NOWHERE near Gears. Don't know what crack you're smoking to even suggest such a thing.

I don't care about discussing Europe, as I know Sony does do better there. But there's something with their games that are just not appealing to America.
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ahh, America only discussion lol, got it. Wasn't sure where the article mentioned America only. lol rubbish
 
Loghorn150 said:
Which is why they've been failing since PSP & PS3.
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They sell well because of Sony's rep. After the ps2, who wouldn't want these sure hit devices? I have both, begged my parents to get me a ps3. and I purchase a pspGo($75) and I love it. ps1 RPG machine right there.
But as we clearly see with the Vita, Move, and a heap of other Sony PlayStation shit, their past success are fading from memory.
The Market has changed, Sony has not. Different Habitat, same Habits = failure.
They still have plenty of time to turns things around, but there is no sign of that.
I wish them success, but they have to use their heads. Its not just the things they do, its the things that they don't do as well.
 
Daydream Sequence said:
That's incorrect. Take the Ratchet and Clank series. On PS2 the US sales of each game was more than the total of Europe and Japan combined(or close to it). On the PS3 versions US sales are below Europe for each Ratchet game. Sony cares very much about this. If they don't, they're fools.
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But worldwide means worldwide. Not US vs the world.

Also, the PS2 absolutely dominated, yet a number of Sony's developers are doing about the same or better on PS3 than they did on PS2. So it's not exactly fair to just single out Ratchet.
 
Daydream Sequence said:
That's incorrect. Take the Ratchet and Clank series. On PS2 the US sales of each game was more than the total of Europe and Japan combined(or close to it). On the PS3 versions US sales are below Europe for each Ratchet game. Sony cares very much about this. If they don't, they're fools.
Click to expand...

Source?
 
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