ADN

Ken Kutaragi, the maverick Sony engineer behind all three generations of PlayStation games consoles, will on Friday become chairman and chief executive of Sony Computer Entertainment in a management reshuffle that underscores Sony's difficulties in the video games market.

The surprise move, though technically a promotion, removes Mr Kutaragi from the day-to-day running of Sony¢¢¬¢ž¢s games division at a critical moment.

Replacing Mr Kutaragi as Sony Computer Entertainment¢¢¬¢ž¢s global president and chief operating officer will be Kazuo Hirai, a veteran of SCE¢¢¬¢ž¢s US division, who prematurely claimed four years ago that the era of console wars was over.

Investors know Mr Hirai as a slicker, more confident presenter than Mr Kutaragi. He is also understood to have stronger working relationships with American, European and Japanese games makers.

Analysts said that Mr Hirai¢¢¬¢ž¢s promotion to a global role at SCE could mark a critical shift in management thinking, with Sony changing its emphasis so that the current generation of games console will be its last as a hardware manufacturer.

¢¢¬…œThe appointment of Hirai could be the start of a shift from hardware to software,¢¢¬‚ said Yuta Sakurai, an analyst at Nomura. ¢¢¬…œI cannot now imagine a PlayStation4.¢¢¬‚

Mr Sakurai said that Mr Hirai¢¢¬¢ž¢s new global portfolio puts a predominantly software-focused manager in charge of the company, adding that SCE¢¢¬¢ž¢s future would be shaped by Mr Hirai¢¢¬¢ž¢s relationship with Phil Harrison, the president of SCE¢¢¬¢ž¢s worldwide studios.

Analysts argue that while Mr Kutaragi, a brilliant engineer, was the right man to run SCE as a hardware powerhouse, Sony may now see better opportunities as a pure maker of games.

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I can't wait till Sony makes some great games for a console I own. *hint-hint.*

I recently read too, that Sony was loosing a SHITLOAD of money on making PS3's, much more than normal, like maybe some 2-3 hundred dollars per system...

Seems ill conceived from the get go...I'm not getting any next gen console until at least mid next year barring someone gives me one...Maybe by then it will be a bit more of a competitive market...

Well aside from Sony who is simply dead in the water FOR NOW in games, Nintendo and Microsoft are both pulling profits from their systems. And yeah, Sony is losing a subsidized approximate 210.78 per unit they produce.

Microsoft just announced that production costs for the 360 dropped 40%, and they are well on their ten million dollar goal. I just got my new upgrade to the 1080p, so they are capable and running that already.

Also Metalstorm, the racing game Brains was all about got pushed back. AGAIN. Prolly cause the motorcycles in the demo can't even do a wheelie? Why would you choose a Motorcycle over the Semi rig they show on the trailers if they had the same speed and mobility??? Anyways, now this title will just be filler, as it is coming out at the same time as Armored Core 4, in Japan. So, what does Japan like more

racing (ridge racer 7) and giant robots (Mobile Suit Gundam)

and then, after both of those title's did miserably...

racing (metal storm) and giant robots (Armored Core 4)

wonder what will come next.. Maybe racing Giant Robots? Doesn't really matter because Armored Core, a solid staple ALWAYS exclusive and awesome titles on the PlayStation is coming at the same time to the Xbox 360, because Raven said bluntly, PS3 will not support the development costs. They even held back the release for a dual launch. With the integration into Xbox live, that game will only be hotter!

anyways, none of this is what people were told to expect this season, and gamers have been badly betrayed for their loyalty. prolly why Microsoft Xbox 360 sales in Japan were up again.

Also at this years Game Developer's Convention, Third party designers are still left without Sony representatives to show them how to use the REAL POWERRRRRRR of the cell processor. Sony's resources on showing how to use their new system to make games has no trickled down past the "sure-sale" companies like EA, UBI, and KONAMI. Frankly, according to Jamil Moledina (the head of the Game Developers Convention) most people waiting are just going to start producing handheld games for the PSP and DS because it is easier, faster, and yields better sales. He says many he knows plan to sit out the entire first round of the console wars because it is so obviously conclusive.

and then is LOOKS HORRIBLE that Namco Bandai says they have to sell 500,000 copies of a game to even get back their losses of 1 billion dollars in production. There are less than 500,000 Playstation 3 consoles in the world right now! and Konami will need millions of units to support development costs for Metal Gear Solid 4, and may be pushed to release to for the 360. Still, Konami is developing 360 exclusive content, and i am far more interested in that.

Bill Gates has said, officially, as far as he is concerned the starting bell for Round One is Christmas 2007. This is all expedition, and sony's lack of volume should not be considered the sign of defeat. and then he grins and his eyes glow...

I agree, but when the whole world needs to figure out how to use this thing you made, and the Chief of Operations who made it (and the previous two generations; the CREATOR of playstation) gets locked in a boardroom.... and you ain't tallking or releasing anything. It doesn't look good. No frills on this system are doing it any good. People don't go to a game store to buy a computer. point blank. The only way Sony can win any share in this without revamping their entire approach to training developers is to only release Sony Pictures on Blu-Ray and standard DVD. If they do that, the investors will only have a Chief Software Engineer and Chief Operating Officer to comfort them. and if they have no third party games, they will be doomed in the gaming war.

That being said, MICRO CENTER IS GIVING A MAIL-IN REBATE on Xbox 360. If 399 is too much, you can get a premium joint for 299 already this holiday season. That makes a 360 cost fifty dollars more than a Nintendo wii!

your "analysts" is a little misleading aye raum?

there has been one and I agree that he is jumping to a conclusion waaaaaaayyyyy to fast.

about the POWERRRRRRR of cell: it is difficult to program for - that may be so indeed. not a lot different from an X360 that is, or do you genuinly believe that the latter is "easy"?!

developers will learn how to harness it.

I find it amazing how you say that the hardware isn't out in numbers yet and decide that ps3 will loose the game. this is a marathon, not a sprint. I agree with Billou that the real fight will start next year, when both consoles are available in sufficient numbers.

I STILL prefer the PS3 - although I AM a slight bit dissappointed with these gen 1 games, even though the best of them equal x360's gen 2 games. I prefer it because if bought, it just gives me so much more for a cheaper price.

$299 for x360, huh? +5 * $49.95 for MS's crucial XBL, sicne that IS better on x360, although I suspect Sony to come close eventually. that makes almost $550 for the console, which does not include WiFi, Bluetooth (hackable, but since it has a very short range, you could better hack it from the machine itself), Blu-Ray, memory card readers, hdmi1.3 etc. Compared to $599 for Sony. Which is cheaper chap?


oh and about Motorstorm: it is pushed back by a WEEK. A single one. Hardly newsworthy for me.

[quote]your "analysts" is a little misleading aye raum?

there has been one and I agree that he is jumping to a conclusion waaaaaaayyyyy to fast.[/quote]

Um, no. That was the SENIOR analyst for technology from Nomura speaking on this. He represents their analyst group's position. For them to change their entire positioning on Sony's future; there were BIG meetings. They have CONSTANTLY been rooting for Sony, and he has been their respresentative to the financial media. He reported this to the Financial Times. Their in-house analysts had to review and and verify his reasoning, and this had to be passed through marketing strategies and the trading commercial operations of his own company, Nomura Global Securities, which is a major holder of Sony options. Others who have echoed the sentiment that Sony is not progressing well enough is John Dvorak from Dow Jones, and the analysts at Piper Jaffray. Masashi Morita, Lead analyst at Okasan Securites says the "Sony needs playstation 3 to save the company." Masayuki Otani, DEPUTY CHIEF OF RESEARCH, says Maruwa Securities position is "Playstation needs a broader range of software to appeal to a braoder range of users." His reasons for this is that the PS3 is simply not going to carry weight as a gaming console. They need to go in a different direction, and make it a global media hub.

Incidentally, Merrill Lynch's position is Sony will lose 730 million dollars in year 2007, and 457 million in 2008.

and out side of finance, not even Square Enix sees Sony emerging the clear winner.

You really need to stop thinking just because I see one article I post it. From my position in the energy industry I look at this stuff and MUCH MORE. Sony is planning on shipments, and they may get 2 million units out. I spend time just chillin in my game store every friggin day after work. keeps me out of bars and out of traffic. I see the people bringing this system back for a refund because it's not selling on ebay anymore. I see those same people getting a 360, even a used one, or asking when the next shipment of wii is coming in. I know play testers in San Francisco, people in the game industry giants, and I know their xBox live handles... and on that demo unit i helped reset wednesday night, I played metal storm every friggin day this week, and it still makes me frown.

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[quote]developers will learn how to harness it.[/quote]

Yes, and then they will have games not developed around it,.. but around current ideas in the market. Expectations sony can't fulfill yet, and DEVELOPERS NEED TO GET PAID. So they are not going exclusive to a company that has not bothered to even show them why they need to work more, and they are getting content out for other consoles and hand helds. but NOTE: Game Developer's Convention said they are working on the consoles on the market, EXCEPT the PS2... that shows a interesting trend if you ask me.

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[/quote]I find it amazing how you say that the hardware isn't out in numbers yet and decide that ps3 will loose the game. this is a marathon, not a sprint. I agree with Billou that the real fight will start next year, when both consoles are available in sufficient numbers.[/quote]

I have said they are DEAD IN THE WATER, not sunk... don't mistake my position. i want a good console out of Sony, but not for some bullshit reason that involves crappy ideas like "we won't release Spider-Man 3 in any format but Blu-Ray."

[quote]I STILL prefer the PS3 - although I AM a slight bit dissappointed with these gen 1 games, even though the best of them equal x360's gen 2 games. I prefer it because if bought, it just gives me so much more for a cheaper price.[/quote]

preferring something you don't have over something you have never played is not hard. giving me a bunch of other stuff I either have, or don't want, is not an incentive to ME as a person who plays games more than I watch TV. and with the exclusive content on the 360 that I OWN. it's great for my gaming needs!

[quote]$299 for x360, huh? +5 * $49.95 for MS's crucial XBL, sicne that IS better on x360, although I suspect Sony to come close eventually.[/quote]

you don't have to have xbox live. and if you think sony will come close in their knock-off, you are not being reasonable. Sony will never come close to xBox live. They may create something different that is just as good, but it is not about the same focus.

[quote]that makes almost $550 for the console, which does not include WiFi, Bluetooth (hackable, but since it has a very short range, you could better hack it from the machine itself), Blu-Ray, memory card readers, hdmi1.3 etc. Compared to $599 for Sony. Which is cheaper chap?
[/quote]

Just so you know, my bluetooth set works with my 360, no hack at all and EVERYONE knows when you are playing a fast paced game online you want a cable into the machine and a hardwired controller. and a external harddrive is far better than media card reading.. But to be honest, I still think that BASED ON HOW MUCH EXPERIENCE YOU WANT and the peripheries you CAN buy, the 360 follows the make it what you want "PC" model, and the PS3 follows the "buy EVERYTHING for one big price because you get SO MUCH MORE" model easily compared to the Mac. and, I personally, am not a mac person.


now the other entity in the Game, NINTENDO. nintendo has som many mascots,.. it will be around ABSOLUTELY. and when you see how the xBox360 interactes with windows vista, you will see the kind of reason that Sony felt they needed to give you a computer... because chances are, if you are human, you have seen a microsoft product today... and are using at least two to read this reply.

thread is pwn3d,

raum

QUOTE"Following the launch of the PlayStation 3 just a few weeks ago, and witnessing the huge consumer demand for the product,

Typical corp speak from a PR executive. Are you suprised the guy they pay to protect their image says things to try and protect their image? Let's see how well they did in Japan. How can you see a show of "huge consumer demand" when they shipped less than half a million units at launch, and still couldn't see the 100,000 in Japan leave the stores the first two days, after having 11,600 units that didn't sell, and the clsest numbers speak to an obvious trend: if Sony can't fulfill the demand for the ps3, people WILL buy other stuff. Nomura has had money riding on Sony since before the ps2. They are booking out, for higher waters. Sony is playing Baghdad Bob, and saying "we are doing fine." as the statues of Ken are pulled down in the background.

In Japan:
during the first two days of launch: 88,400 units (as estimated by Enterbrain)
from November 13-18: 43,378 units
Total drop in sales [(43,378 / 88,400) x 100] = 49.0701%

and still less than one game per unit is being sold.

Now, here's another important number:
Sony games sales increase by 31% for other consoles.
Sony's operating budget DECREASED by 80% because of ps3.

so, Sony basically had to offset half their operating budget just to get the machine where it is. Sony previously said they wanted 4 million consoles out this holiday season, and hope to sell another 5 in 2007. They have yet to produce that many, and they lose on each one. If they sink another 400 million into production costs for another 2 million ps3 (they LOSE over 200 dollars a console, remember?), their profits sink more.

Sony has a book value of 9 billion dollars they can sink into hardware costs total. That means their company is only worth 45 million playstation 3, at the current production costs for their console. This falls well below their optimistic 100 million units.

Now, aside from that, the sales is a misleading numbers, because over 85% of the people who were asked planned on keeping their xBox 360 or wii. Over 90% planned to scalp their ps3, and a lot didn't even buy a game, EVEN in Japan.

and by July Microsoft projections of 15 million consoles, which analysts are nodding in agreement with, are more than stable enough to have them firmly esablished for solid growth.

People ask me why I don't mind paying for xbox live. Simple: I give money to a company to continue to deliver me great service and titles.
I liken it to health care. If it is free, great, until you need preferred care and can't get it. Do you know how many people I know who wish they could give sony some money to make some great choices to provide quality titles?

Sony is [proving they] not nearly as confident with their console for GAMING, and proof is they way they hemmed and hawed over exclusive titles. They simply couldn't support the costs for exclusive titles, exclusive software, high demand components, and rushed shipping costs. And to be honest, they are fools. They burned the european market, which after the 360 launch was a friggin blitzkreig of the gaming industry, in a place Sony lost a huge foothold.

and have you even seen Sony's new admission they are under fire? They hired a new PR guy. Their focus on their new PR guy was experience with "Crisis Communications." David Karraker just became the new PR boss at Sony.

Let's see his experience:

worked with Crystal Dynamics on GEX, for the 3DO.

Went to work with 3DO directly, um, that sounds like an omen to me... overpriced console tanks

the he worked for Virgin Interactive (now defunct due to bad PR)

oh, and he was there for the rise of the Sega Saturn and the Dreamcast... yet another console that wrecked a game company. Funny thing is the Dreamcast was the superior console, but their PR was horrible and developers became intimidated by the unrealistic expectations that THIS GUY'S PR people gave to the public. Developer just could live up to the expectations.

what else has he done, oh yeah,.. he worked with MARTHA STUART while she was in jail...

So, I guess "Crisis Communications" are his speciality, especially when they deal with overpriced consoles that self-destruct in the market despite technical superiority...

If I were Sony, I would find the HR recruiter who hired this living Hindenberg, and hand them a katana so they could do the honorable thing. Seriously, this is like hiring Angela Lansbery's character to throw someone a birthday party. SHE'S A HOMICIDE DETECTIVE; SOMEONE WILL DIE!!!! and prolly the person celebrating their birthday.

Oh well, too bad for Sony..