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

BTW, one thing I know Sony has given up is hyping their system like the second coming of gaming. Dropping that has probably gone a long way to helping recover the PS3's image, as the focus for a while has been on just making a good system with a lot of good games.



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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.

Personally, I believe this shift in corporate strategy is long overdue and much welcomed.


Amen, Bod. On top of that, it's an admittance that they fucked up with the PS3. They overreached and were entirely arrogant with their perception of what the market would accept.

Now we're seeing a humble Sony and we're all the better for it. They got a little too big for their britches during the past ten years and thought that people would buy any piece of shit thrown at them with the Playstation name emblazened on it. They were wrong.

Let's concentrate on a Sony that will go back to its roots, figure out why it became successful in the first place, and then adapt accordingly and enjoy it. 




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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...?

In the short term, consumers will suffer because Sony doesn't cut-rate their product to move units. In the long run, consumers benefit from a strong Sony presence in the marketplace, driving competition throughout the market.

This isn't rocket science. 




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Just want to post this: http://www.bartleby.com/59/4/throwintheto.html

throw in the towel

To quit in defeat. The phrase comes from boxing, in which a fighter indicates surrender by throwing a towel into the ring: “After losing the election, he threw in the towel on his political career.”

.

So it is awkward at best to apply the phrase to a situation where Sony is temporarily pulling in its horns to consolidate and come back out swinging, rather than quitting the console war altogether.

I agree (more or less) with shams' analysis but not his choice of phrase.



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Magnific0 said:
If they get more great exclusives, and continue to offer the same great value in hardware (and probably more great bundles like the ones so far this year) then I don't see a problem with keeping the same "price" (and emphasis on that word 'cause it depends on the bundle and other possible hardware features). The key word is value. More , better exclusives, more and better services, same high quality hardware, that would mean greater value. It's an elite product, and as such it's marketed and priced.

 More and better services?  What services are the "more"?  What is "better" too?  Live takes a huge dump on Sony's online strategy, and Home appears to never be coming out.  The only "more" I can think of is Blu-Ray, and there is nothing I can think of that is "better" when comparing similar services.  Pretty sure 360 has "more" exclusives too.  Just wondering what you might be referring to, because it appears you are comparing two products that are not the PS3 and 360 when using your "more" and "better" terms.



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The PS3 is on the defensive until they are able to get some profit in. Profit will only come from good games and it costs way too much to develop a game for the PS3 at this point. Development costs have to go down before we could even hope for a price cut.





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Whatever Sony do, next gen they better make hardware thats actually easy to make games for. This focus on profitability is a good thing and long overdue.



warmachine.....why'd you revive this? It obviously ended because the topic of discussion was thoroughly discussed and a consensus was made.



I wonder if MS will reconsider its upcoming price cut considering Sony won't drop theirs? Either way, Sony is in real trouble and killzone 2 (which we haven't heard about in a long time) won't save it.



Sony will drop it's price when MS does.



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