
Console won’t recoup losses ‘in my lifetime’, admits Sony boss
Sony CEO Howard Stringer has admitted that PS3 hardware sales aren’t ever likely to recoup the $3.3 billion losses the machine has already occurred.
In a wider interview, Stringer also admitted that he had played on a Wii – and said that Sony had “neglected to pursue” Nintendo’s audience effectively in the past.
He added that Wii "may [have] a superior [business] model" – despite calling it an "expensive, niche game device" in the past.
“The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model,” he said.
“But the Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The Playstation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes.”
When asked if PS3 could make back the money it had lost, Stringer added:
“Not for as long as I live. It will certainly take some time. The traditional business model for the PlayStation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even.
"In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware.”
Discussing Wii, he commented:
“It's a different experience. The Wii is a well-made device that has found a new target group. For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue.
"PlayStation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3.”
Comments
Its Jerry Springer
“Console won’t recoup losses ‘in my lifetime’, admits Sony boss”
Well looking at his photo being the picture of health it represents, he sure isn’t half wrong!!!
Also for second I thought I read ‘Springer’ as the photo had an uncanny resemblelance to Jerry Springer!
Meh..
Meh The PS3 is crap. ive had 2 had the 60GB and 40GB got sick of waiting for Home and decent games. Owning a 360 also the games are coming out on that inc FF13. The online play is MILES better on 360. As For My Wii I love it. Sony shot themself in the foot by saying all players want better graphiocs etc. When the Wii has pissed all over the PS3. I Will not be buying ny other consoles by Sony that is a fact.
Re: Meh..
Several Sony bosses should be fired asap, for their declarations. I have never seen such a bad management team.
Re: Re: Meh..
I've seen a management team as bad, and they made me redundant a few months ago lol.
The price needs to come down at least £50 before the majority of gamers will fork out for one, plus there's bugger all games to play on it. The only reason it's sold in Europe is because it's a cheap Blu-Ray player...but the majority of people don't have an HDTV to appreciate it. The PS3 is too far ahead of its time imo.
Re: Re: Re: Meh..
"Meh The PS3 is crap."
Spoken like a true fanboy. Give yourself a pat on the back.
Re: Re: Re: Re: Meh..
it is very imature and inacurate to call any consoles on the market today crap, they clearly are not after all the work and development, each has positives and minus, ive played on all consoles, i find wii very child like but great for families, xbox live terribly laggy and ive had mine 3 red lights but i like gears of war, ps3 online was solid i found, loved Metal gear,but not enough new titles and alot fo shooters not enough RPGs which made the ps2 the best console in the market, you cant just hold on to Halo or mario and use this as the basis for "ours is the best console" not everyone likes these titles.
this sony boss should be fired, making such remarks just underminds all the company trys to achieve
Re: Re: Re: Re: Re: Meh..
The PS3 hardware may never turn a profit - at least Stringer is being honest with us here - but right now that's only a problem for Sony and it's shareholders. Retailers are still making a profit on PS3 hardware and consumers are getting a getting a good value, well built piece of kit, despite the fact it's still undeniably expensive.
As for the games, I personally think it was only with the release of Metal Gear Solid 4 that the PS3 finally reached that tipping point where it had enough software to be worth getting. Looking forwards though, I think the PS3 has far and away the most exciting software lineup of the three main consoles. It's holding its own against the 360 in the multi-platform arena and with LittleBIGPlanet, Heavy Rain, WipEout HD and God of War III on the way, the system exclusives are looking very solid indeed.
Re: Re: Re: Re: Re: Re: Meh..
Even though I had a dig at the Sony boss I strongly disagree with some of the comments here that seem straight out of Eurogamers dustbin of forums!
I own a PS3 and have been very happy with it as a games platform and media hub, I love all games and wish I could afford all consoles and all the games to go with them.
I find the Wii entreating and see it as a very clever product; it’s just not for me! But yes I know loads of people who have one usually as the second console which at the end of it all its money that makes thing go around, especially the games industry.
I can’t see why Microsoft and Sony don’t just emulate the Wii business model by using old technology of the PS2 and Xbox 1 and make a similar cheap short life console along side what’s already here with the PS3, Xbox360 expensive long life consoles!
ANT- Your comments were just silly, and for starters why the hell did you buy two PS3’s when most people can’t afford the one! I’m really confused! (And use a spell checker for god sake!)
Re: Re: Re: Re: Re: Re: Re: Meh..
I guess that’s what I get for telling someone off for not using a spell check!
And this ladies and gentlemen is what happens when you do and don’t pay attention!
“I find the Wii entreating”
‘entertaining’ that was meant to say!
PS3..
JD, don't you mean "Eurogamers dustbin of biase"! LOL
I've owned a 40gb PS3 since last October & I think its a great machine and love games like Uncharted & Ratchet & Clank 4 - and with LittleBigPlanet & Heavy Rain to look forward to.
As for online, the 360's may be slightly better organised, but its the most polluted with online abuse.Who knows, maybe PS Network's reportedly "better behaved" community give it the edge?
Re: PS3..
The only reason PSN users "behave better" is because its a pain in the arse to get voice coms running correctly in games. No one talks. PS3 has it uses, mainly as a BluRay player and secondarily for Sony published games. But even then its only if you have the extra cash to pay £100 beyond the price of the 360. Beyond that, I prefer the 360 for almost everything else.
Re: Re: PS3..
to be fair though, I have owned a 60gb ps3 (sold to a mate for a profit) and I own a ps3 40gb, the only games I own on it are Heavenly Sword, Metal Gear Solid, Ridge Racer, Untold Legends.
Whilst on the 360 for variety I have over 40 games I own for it, there is a big difference due to games but like stated the PS3 right now is a good blu-ray player until some more decent games come out.
Plus I have the wii but most games there are real classics like Mario games etc. games that nintendo made from back in the days ^_^
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