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Forums - Sony Discussion - [Opinion] Why Sony Should Exit The Console Hardware Business

Considering gaming is one of there few profitable sectors I don't think they are about to abandon making hardware.



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Ji99saw said:
deskpro2k3 said:
Ji99saw said:
VGKing said:
No, Sony leaving the hardware business WOULD NOT benefit gamers. There is a reason I stuck with PS3 this generation.

1a. I don't like Microsofts business practices.
b. They are new at making hardware, hence the RROD epidemic.

2a. I'm not too fond of Nintendo. In fact they are simply too Japanese for my taste.(Keep in mind that I am a big fan of anime)
b. Nintendo makes "good enough" hardware marketed through gimmicky controls.
c. Their focus is clearly on kids and families which leads them to make stupid decision like Friend Codes.

So why do I support Sony?
1. They make amazing state-of-the=art hardware.
2. They have the amazing 1st party studios to show it off.
3. They care about the gamer. Free PSN being a prime example.(Free online gaming is a RIGHT, not a privilege)

Anyway if you look at the sales charts, the highest selling games on PS3 are actually 3rd party. If Sony didn't make the hardware they publish their games on, they would make a lot less money. I'm not even mentioning the fact that Microsoft and Nintendo are not going to play nice with Sony if they ever became multiplatform. Sony would get crushed. A game like Uncharted would never sell on a Nintendo console, and a game like Killzone would be overshadowed by Halo.

If Sony could make as much as Microsoft and charge for online they would do it, don't dare think they wouldn't, if it were as you say PS+ would not even exist

You are wrong.
PS+ is an option, it is not mandatory.


I'm not wrong, I'm aware PS+ is an option but it would not exist Sony did not want to monetize their online to make money from gamers. If they were not influenced by XBL and truly cared about the gamers it would not exist and the perks would just be given away. The fact that PS+ exist is because of XBL printing money off subscriptions


The fact that PS+ is an option, and not mandatory speaks for itself. If you're willing to sub to PS+ then that is on you. Sony is not forcing you to sub to PS+ to buy games at a discounted price, they're not forcing you to get into beta test early, and to try out games without buying them. If they wanted to go like MS then everyone will have to pay to play online.



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Actually first thing that has always come to mind is 3rd party support above everything else he mentioned.



This article is quite funny in light of recent sales numbers...

Totally. I can see the point but they should get real : PS3 is the top hardware this week and it is... OMG 5 year-old already! I f it keeps this momentum it could even be flat or almost YoY. Sony should just scale back where the comptetion is too intense (TVs, phones) and resist entering every single market despite high entry barriers (tablets).



fauzman said:
RolStoppable said:
CChaos said:
I've read the article twice now and...I think the biggest problem is I don't think I'm able to figure out what he's getting at. Sure, the games would sell if they were all made multi-platform, but I can't really see them making as much money as would offset the loss of hardware income. I mean, even thinking about that doesn't make a tonne of sense, especially with the Super Slim and what I imagine is a better margin for the PS3.

Is he trying to say that if Sony cut hardware out of the mix, it'd somehow make the company profitable again directly through games? Cause, if so, that's one of the most bizarre things I've heard in a while.

Sony has traditionally been using the razor and blades model (selling hardware at a loss, making the money back on software), so there isn't much hardware income to speak of. The PS3 lost billions on hardware over its lifetime, so that's what the suggestion to go software-only is based on.

You are wrong. Sony dont make consoles so that they can make back money on the software. They sell a defective console at launch at a loss and make that money back by selling the later SKUs at a profit (since the price of parts falls considerably over the years). They did this very successfully for both the psx and ps2. However, with the ps3 they lost so much money in the initial launch years that they probably wont make back the money they lost by the end of the ps3's lifetime. But this is slightly different from them selling hardware and just expecting software to cover for it. 

Also, considering the position sony are in, the ps4 will probably be sold at a profit or very close to manufacture cost to reduce/eliminate any losses from the get-go (or at least that is what indications are). So I dont think they will do as badly as this gen.  

Fixed for you.

http://techspyblog.blogspot.com.es/2010/03/conclusive-proof-of-sony-timer-aka-sony.html

Look at the reliability of the consoles sold at loss and those that aren't. And don't mention the words "more powerful" or the Gamecube will destroy you.



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Player2 said:
fauzman said:
RolStoppable said:
CChaos said:
I've read the article twice now and...I think the biggest problem is I don't think I'm able to figure out what he's getting at. Sure, the games would sell if they were all made multi-platform, but I can't really see them making as much money as would offset the loss of hardware income. I mean, even thinking about that doesn't make a tonne of sense, especially with the Super Slim and what I imagine is a better margin for the PS3.

Is he trying to say that if Sony cut hardware out of the mix, it'd somehow make the company profitable again directly through games? Cause, if so, that's one of the most bizarre things I've heard in a while.

Sony has traditionally been using the razor and blades model (selling hardware at a loss, making the money back on software), so there isn't much hardware income to speak of. The PS3 lost billions on hardware over its lifetime, so that's what the suggestion to go software-only is based on.

You are wrong. Sony dont make consoles so that they can make back money on the software. They sell a defective console at launch at a loss and make that money back by selling the later SKUs at a profit (since the price of parts falls considerably over the years). They did this very successfully for both the psx and ps2. However, with the ps3 they lost so much money in the initial launch years that they probably wont make back the money they lost by the end of the ps3's lifetime. But this is slightly different from them selling hardware and just expecting software to cover for it. 

Also, considering the position sony are in, the ps4 will probably be sold at a profit or very close to manufacture cost to reduce/eliminate any losses from the get-go (or at least that is what indications are). So I dont think they will do as badly as this gen.  

Fixed for you.

http://techspyblog.blogspot.com.es/2010/03/conclusive-proof-of-sony-timer-aka-sony.html

Look at the reliability of the consoles sold at loss and those that aren't. And don't mention the words "more powerful" or the Gamecube will destroy you.

Not sure I follow you. Neither the article or the clip mentioned a difference in the reliability of  the initial fat or the later "slim" consoles. And even if there is a greater reliability in the slim consoles, this could just be from sony learning from their mistakes (though I understand from your article that the point was that the same problem occurred with both the psx and ps2). Personally I find it hard to believe that sony would be deliberately making defective consoles since they have a reputation for solid products though I guess its a possibility. Either way, Im sure that most of their sales were probably NOT due to replacement psx or ps2s like you are suggesting... unless you have some proof?

And im not sure where your "more powerful" or Gamecube comments come from since they are irrelevant and fairly silly to boot. 



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Actually the first thing i think about when i hear Sony is TV's and Walkmans



VGKING actually made me laugh. What a way to start a day.



Imagine not having GamePass on your console...

Really? I think Microsoft should exit the console hardware business.



   

Oh No. I don't want to get forced to buy crappy hardware.