PS3 Blues: Razor and Blade Theory Fails Sony

Sony Corp.'s disastrous launch of its next generation video player, the Playstation 3 (PS3), is a factor in the layoff this week of 80 to 100 U.S. employees of Sony Computer Entertainment, mostly at their headquarters in Foster City, California. This follows in the wake of the botched business plan for the PS3 that cost Sony about $2 billon last fiscal year and has raised questions about the long term viability of the Blu-ray hi def format.

Although SCE execs predict the unit will turn a profit this year, and Sony still strongly supports the Blu-ray format, questions have been raised about the long term viability of the Blu-ray business plan.

Sony Corp. was criticized at the end of last year for being late to market with the PS3 due to reported manufacturing problems. Even when they had a machine to sell, it was widely reported that Sony was losing as much as $200 on every sale of a $500 player. Sony called it an investment because the machine owners will then buy lots and lots of discs. It's the classic theory of give 'em the razor and then sell blades forever.

Unfortunately, so far it has not worked. It turns out most people who buy a PS3 actually want to play video games. Few bought it for movies alone simply because it was a cheaper way to get a Blu-ray player, which came built into each P3. Many who wanted cheaper players simply bought the competing HD DVD players at half the cost of the Sony units.

Some gamers were actually angry at Sony for sticking a Blu-ray player in the PS3 at all because it boosted the price at launch by an estimated $200. Microsoft sold the Xbox 360 for about half the price of a PS3, and then offered its high definition HD DVD player as an add on device for about $200 to those who also wanted to show hi def movies.

[drtysouf21]

and i post both positive and negative news articles for all 3. Everyone is entitled to their opinion and has the choice to read them or not.

[sadiq]

wat is it like being rich? it took me 5 months before i got my first game (rfom) for my ps3, :'(

[drtysouf21]

Not rich just have a really good job! Wish i was rich though!

[Arkham]

That's an op-ed piece, not a news article. Hardly good journalism.

He could easily have stated pretty much the same things without the fannish hyperbole.

---
Captain Tuttle: (below)

Agreed. I wasn't questioning the validity of it's approval, just commenting on the quality of the "journalism". I'm used to seeing much less worthwhile pieces being approved.

[Captain Tuttle]

It's good to see content from non-gaming sources on here. Hard-Core gamers can only do so much...it's the general populace and casual gamer that moves consoles in huge numbers and articles like this affect those people. Sony fans might dismiss stuff like this but the guy has some valid points, like it or not.

I approved it.

[nice_cuppa]

will upset a few though.

you see \/\/\/

[Amplifier]

I disagree with most of the points that Sony has failed, just because something doesn't take off immediately doesn't mean all hope is lost.

When I start seeing 3rd-party companies dropping off support completely will be the days that killed Sony's Playstation brand.

@mp

[dauden]

Why people bother to spend time to write "articles" about stuff that is already known to about every living real gamer is beyond me.

Give us something new already!

[hikikimori]

This seems to have been written by an amature, with definate fanboy sidings.

[harpua]

funny that the PS3 is selling on a similar pace that the 360 did in its life cycle. were there articles like this about the 360 this time last year? 360 had nothing spectaclular till GOW.

[sadiq]

i agree cuz it is almost exactly the same pace and when u look at it its almost the same as ps2 and look at how successful it was and look at the ps1, ps1 was a lot lower than this but it still was successful

[kewlkat007]

The Ps3 has been in abundance since launch and is currently sitting on shelves. The Xbox360 had many constraints the couple of months. You can't hardly compare.

Of course Ask Sony to bring you something new already...

All this news is nothing new..of course

[Lord Anubis]

I can't believe I wasted my time reading it. Who ever wrote it failed to do their homework. I give it a D as a final grade. Also, the writer needs to fix some typos.

[Bordel_1900]

That was a pretty long and desinformative article.

Someone needs to do their homework.

[Captain Tuttle]

nm

[Kaneda]

"Unfortunately, so far it has not worked. It turns out most people who buy a PS3 actually want to play video games. "

I owned like almost 10 blu-ray movies...and 5 games...love HI-DEF movies...

BBC Planet Earth is so goooddddddddd....

[Bloodmask]

kinds of things that happen when you try to hide your true agenda. You shouldn't release a Bluray player under the guise of a video game machine. Imagine that people that buy a video games machine actually want to play games.....Who ever would have thought? Bluray will be the downfall of the PS brand recognition. It brings them nothing but bad press and an even worse public image.....and in this day and age public image is everything.

[Bonsai1214]

this is going to be a sh!tty article when the first line of the preview is " Sony Corp.’s disastrous launch of its next generation video player." not only should it have been reported to hell right away, it shouldn't have been approved...

second off, everything here is just stuff we already know, same crap, different mouth. and i completely agree with amplifier. just because its slumped doesn't mean it's dead. remember that it takes years to get the most out any game console. case point: compare star wars starfighter to ace combat 5. worlds appart. just wait a year like you all did for 360 and things will be better all around for gamers

[Xi]

because I think everyone would agree that the launch was absolutely perfect. There was shootings, low supply, ebayers, then the stores got them and they started to pile up, everything you could ever want from a console launch.

But I'll agree it takes time for a console to get going, but it's harder for a console that tries to sell based on name recognition(quote the 5million sold even if it doesn't play games) alone, and harder yet when the once exclusive 3rd party titles make an exodus, and then even harder when the price point is out of reach of the average consumer. The ps3 is in a slump and I have no doubt it will get out of it, but in a situation where you're losing ground, the longer it takes the harder it gets.

[sonarus]

Wat a BS article. This guy totally sounds like the fool who tried to make me buy a 360 over a PS3 at ebgames even uses the same words. Funny how the media kicks PS3's ass for not selling but no 1 is touching Msoft for faulty hardware or wii 4 its short play time. I would honestly like to see a study on wii owners and how many games they buy and how they enjoy their console a month after its purchased

[kevin1122]

this is to bloodmask and everyone else who thinks like him. Playstation 2 and 3 have always been a computer entertainment system. They were never marketed as only a gaming system.

[bootsielon]

You're just as biased as theMart. It's not all truth what you say, just bull. "Games would have been nice", yeah, same thing for 360 at the same point after launch. SUre, the PS3 should have had more games to compete after it launched since it launched later, but no, HOW COULD THEY not have games the first few months. I mean, the Wii has so many killer games right now... oh wait. Hell, Xbox 360 has in the best of the cases 4 "really good" games (Lost Planet, Dead Rising, Gears of War and crackdown), but only one of those is truly a "killer app". But again, it doesn't appeal to everyone. So no, Xbox 360 doesn't really have many games anyway.

This holiday season, PS3 will compete with a lot of games, like singstar, warhawk, socom, uncharted, lair, heavenly, and killzone, to give a few examples. Perhaps Xbox 360 will have a few more, but not that many considering its head start. Some are even just timed exclusive (bioshock, eternal sonata, culdcept saga, trusty bell; I'd even doubt lost planet and dead rising are completely safe, although they're probably safer than eternal sonata and culcept saga). Things get more interesting in 2008 when the games landscape will even out more with final fantasy, metal gear, eight days, L.A. Noire, monster hunter 3, White knight story, afrika and the final version of little big planet. That's not to mention Home, other non-gaming services, or that in japan, multiplatform titles will sell on PS3.

EVerything the PS3 needs is in the pipeline and almost in time for when it's needed, if not just a little later. The only thing we don't know exactly is when the price drop, and that's it; if they do drop it to $400 by holiday season (IF the cost of making a PS3 allows it by then), the PS3 should make a killing (or at least remain competitive with Wii and 360).

[progx]

Hes got more bubbles than your ass. HAHA