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Forums - Sony Discussion - Sony have thrown in the PS3 towel... (for now anyway)

LordTheNightKnight on 20 May 2008
Bodhesatva said:

I absolutely agree with Imperial. "Throwing in the towel" implies, or even explicitly states, that Sony is "giving up." They aren't. They're just shifting from a marketshare driven philosophy to a profit driven one -- likely at the cost of marketshare.

Obviously, Sony could achieve 99% marketshare if they made the PS3 1 dollar and funneled all their funds into it. They may go bankrupt, but they'd win the marketshare race. Or, on the other hand, they could never make another price cut, see their sales dwindle, but never have to worry about fiscal losses again.

In reality, their strategy will be somewhere in between. Before, they were clearly willing to lose billions of dollars to gain marketshare. Now they are willing to sacrifice significant marketshare to make money. That's what this change represents. They aren't quitting -- or, as Sham put it, "throwing in the towel" -- at all.


They are giving up something. It may be a small and temporary thing (the marketshare push), but they are giving it up. It's not even a bad thing, as they need to do it, but the reluctance to call it quiting in any form just shows people see things as surrendering when they aren't. 



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

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Bodhesatva on 20 May 2008
LordTheNightKnight said:
Bodhesatva said:

I absolutely agree with Imperial. "Throwing in the towel" implies, or even explicitly states, that Sony is "giving up." They aren't. They're just shifting from a marketshare driven philosophy to a profit driven one -- likely at the cost of marketshare.

Obviously, Sony could achieve 99% marketshare if they made the PS3 1 dollar and funneled all their funds into it. They may go bankrupt, but they'd win the marketshare race. Or, on the other hand, they could never make another price cut, see their sales dwindle, but never have to worry about fiscal losses again.

In reality, their strategy will be somewhere in between. Before, they were clearly willing to lose billions of dollars to gain marketshare. Now they are willing to sacrifice significant marketshare to make money. That's what this change represents. They aren't quitting -- or, as Sham put it, "throwing in the towel" -- at all.


They are giving up something. It may be a small and temporary thing (the marketshare push), but they are giving it up. It's not even a bad thing, as they need to do it, but the reluctance to call it quiting in any form just shows people see things as surrendering when they aren't. 


In that case, is every single price cut "giving up?" Because obviously, that's giving up profits for marketshare. It's what you just described, in reverse.

What about every time you discount a game? Every time you bundle a game? Every time you ever sacrifice one thing for another?

Is everyone and every company constantly giving up every day, as one of the above choices is made? Should we make a post every time saying "[Insert company here] has given up!"



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

EaglesEye379 on 20 May 2008

@Bodhesatva

Please explain how this will be welcomed? Although its obvious Sony are not throwing in the towel on a global brand such as PlayStation, this change in corporate strategy will not be good for consumers. This is because they are re-focusing on balance sheets, profit margins and investors but the consumers will lose out because there will be less price cuts, and less value bundle offers. This is basic corporate finance theory - management decisions based on shareholder interest or consumer interest, there is always a balance to be decided. I guess if you are a Sony shareholder...?



Jhriad on 20 May 2008

Can I hold you to that prediction?

 "There will be NO more price cuts on the PS3 - for a good 12 months at least." (05/18/08, 00:21) by shams

I'd like something to go back to during the holiday season when the next price drop hits the 360 & PS3.



LordTheNightKnight on 20 May 2008
Bodhesatva said:
LordTheNightKnight said:
Bodhesatva said:

I absolutely agree with Imperial. "Throwing in the towel" implies, or even explicitly states, that Sony is "giving up." They aren't. They're just shifting from a marketshare driven philosophy to a profit driven one -- likely at the cost of marketshare.

Obviously, Sony could achieve 99% marketshare if they made the PS3 1 dollar and funneled all their funds into it. They may go bankrupt, but they'd win the marketshare race. Or, on the other hand, they could never make another price cut, see their sales dwindle, but never have to worry about fiscal losses again.

In reality, their strategy will be somewhere in between. Before, they were clearly willing to lose billions of dollars to gain marketshare. Now they are willing to sacrifice significant marketshare to make money. That's what this change represents. They aren't quitting -- or, as Sham put it, "throwing in the towel" -- at all.


They are giving up something. It may be a small and temporary thing (the marketshare push), but they are giving it up. It's not even a bad thing, as they need to do it, but the reluctance to call it quiting in any form just shows people see things as surrendering when they aren't.


In that case, is every single price cut "giving up?" Because obviously, that's giving up profits for marketshare. It's what you just described, in reverse.

What about every time you discount a game? Every time you bundle a game? Every time you ever sacrifice one thing for another?

Is everyone and every company constantly giving up every day, as one of the above choices is made? Should we make a post every time saying "[Insert company here] has given up!"


But this isn't one move. This is giving up an entire marketing strategy for another. 



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Around the Network
Madyson5 on 20 May 2008

MS has had 3 profitable quarters in a row. If this quarter is profitable, which most likely will be with GTA IV, and then it will be a full year for them. American Technology Research just this week reiterated its Buy rating and said the division is"by far MSFT's fastest-growing division".



Imperial on 20 May 2008
LordTheNightKnight said:
Bodhesatva said:
LordTheNightKnight said:
Bodhesatva said:

I absolutely agree with Imperial. "Throwing in the towel" implies, or even explicitly states, that Sony is "giving up." They aren't. They're just shifting from a marketshare driven philosophy to a profit driven one -- likely at the cost of marketshare.

Obviously, Sony could achieve 99% marketshare if they made the PS3 1 dollar and funneled all their funds into it. They may go bankrupt, but they'd win the marketshare race. Or, on the other hand, they could never make another price cut, see their sales dwindle, but never have to worry about fiscal losses again.

In reality, their strategy will be somewhere in between. Before, they were clearly willing to lose billions of dollars to gain marketshare. Now they are willing to sacrifice significant marketshare to make money. That's what this change represents. They aren't quitting -- or, as Sham put it, "throwing in the towel" -- at all.


They are giving up something. It may be a small and temporary thing (the marketshare push), but they are giving it up. It's not even a bad thing, as they need to do it, but the reluctance to call it quiting in any form just shows people see things as surrendering when they aren't.


In that case, is every single price cut "giving up?" Because obviously, that's giving up profits for marketshare. It's what you just described, in reverse.

What about every time you discount a game? Every time you bundle a game? Every time you ever sacrifice one thing for another?

Is everyone and every company constantly giving up every day, as one of the above choices is made? Should we make a post every time saying "[Insert company here] has given up!"


But this isn't one move. This is giving up an entire marketing strategy for another.

 What's it with you and the word "give up" , your forcing it into context.  

LordTheNightKnight on 20 May 2008
Imperial said:
LordTheNightKnight said:
Bodhesatva said:
LordTheNightKnight said:
Bodhesatva said:

I absolutely agree with Imperial. "Throwing in the towel" implies, or even explicitly states, that Sony is "giving up." They aren't. They're just shifting from a marketshare driven philosophy to a profit driven one -- likely at the cost of marketshare.

Obviously, Sony could achieve 99% marketshare if they made the PS3 1 dollar and funneled all their funds into it. They may go bankrupt, but they'd win the marketshare race. Or, on the other hand, they could never make another price cut, see their sales dwindle, but never have to worry about fiscal losses again.

In reality, their strategy will be somewhere in between. Before, they were clearly willing to lose billions of dollars to gain marketshare. Now they are willing to sacrifice significant marketshare to make money. That's what this change represents. They aren't quitting -- or, as Sham put it, "throwing in the towel" -- at all.


They are giving up something. It may be a small and temporary thing (the marketshare push), but they are giving it up. It's not even a bad thing, as they need to do it, but the reluctance to call it quiting in any form just shows people see things as surrendering when they aren't.


In that case, is every single price cut "giving up?" Because obviously, that's giving up profits for marketshare. It's what you just described, in reverse.

What about every time you discount a game? Every time you bundle a game? Every time you ever sacrifice one thing for another?

Is everyone and every company constantly giving up every day, as one of the above choices is made? Should we make a post every time saying "[Insert company here] has given up!"


But this isn't one move. This is giving up an entire marketing strategy for another.

What's it with you and the word "give up" , your forcing it into context.

Phrase, not word. And you only don't want it to fit because you think the context is something else. See the definition below.

You seem to think it's definition 1*, while the OP and I mean definition 2. They are abandoning a strategy that is costing them more than they feel is worth it. So they are giving up something. It's in the dictionary. The association with giving up being a negative, as in admitting defeat, is only part of it, but it seems to be considered the only definition.

* I might be wrong, but in that case what do you think it means?

 

give up

One entry found.

give up
Main Entry: give up Function:verb Date:13th century transitive verb
1: to yield control or possession of : surrender give up his job>
2: to desist from : abandon give up her efforts>
3: to declare incurable or insoluble
4 a: to abandon (oneself) to a particular feeling, influence, or activity <gave himself up to despair> b: to devote to a particular purpose or use
5: to despair of seeing given you up>
6: to allow (a hit or run in baseball) while pitching
intransitive verb
: to cease doing or attempting something especially as an admission of defeat : quit —often used with ongive up on the project>
— give up the ghost
: to cease to live or function : die

 



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

shams on 20 May 2008
Jhriad said:

Can I hold you to that prediction?

"There will be NO more price cuts on the PS3 - for a good 12 months at least." (05/18/08, 00:21) by shams

I'd like something to go back to during the holiday season when the next price drop hits the 360 & PS3.

Definitely, I stand by the analysis on page#1.

With MS & Niinty making good money, and Sony (ent division) losing a LOT of money - and their profitable products "weakening" (PS2 & PSP) - they simple cannot afford or even think about another price cut on the PS3.

The last one was bootstrapped by dropping components/hardware features - and they simple can't do this again.

Another price cut NOW (i.e. in the coming year) would send their losses skyrocketing - it could cost them as much as $500m (for another $100 cut).

 



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Bodhesatva on 20 May 2008
EaglesEye379 said:
@Bodhesatva

Please explain how this will be welcomed? Although its obvious Sony are not throwing in the towel on a global brand such as PlayStation, this change in corporate strategy will not be good for consumers. This is because they are re-focusing on balance sheets, profit margins and investors but the consumers will lose out because there will be less price cuts, and less value bundle offers. This is basic corporate finance theory - management decisions based on shareholder interest or consumer interest, there is always a balance to be decided. I guess if you are a Sony shareholder...?

This is a good question, as at least in the immediate sense, you are correct. However, valuing profitability over marketshare is certainly good for consumers if you like sustainable business models.

For example, what would happen if Ferrari started selling their cars for 1 dollar? That's great for the consumer, right? Sure, for a moment. But within literally days of such a change, Ferrari would be bankrupt. Which would mean the change is absolutely fantastic for a few days: then, for the rest of eternity, there will be no more Ferraris, because Ferrari is out of business. That is bad.

So I agree that short term, you are correct, this is bad for us, Eagle. Long term, I don't think that's true. Unsustainable business models inevitably bite back: it's effectively what's happening in the US housing market, right now.



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">