By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony Discussion - Sony Strategy Thread: Third Party Sony (PS NOW)

theprof00 on 24 November 2009

nord,
like I said, the ps1 and ps2 were just steps.
Do you remember when Ken Kutaragi said he had like 7 generations of PS planned out already?
They've been on this from day one.
Sure they ended up disrupting other things as well, but I didn't want to create a Malstrom-length article either.
And console games never synced up with pc games until the ps1/n64 generation. Both were capable of giving very similar graphics and ability whereas previously, console games were very limited.

To summarise: you make some good points, but I could eventually show how my OP is just a simplified version of what you said. I just didn't want any tl;drs



Around the Network
LordChris915 on 24 November 2009
theprof00 said:

Hello everyone,

This is just going to be a brief intro to the Sony strategy, so that people can understand the approach and use the ideas herein to better predict things like next gen capabilities, direction, and reasoning behind decisions.

 

The Intro:

A lot of members on this site talk about Nintendo's disruption strategy, as highlighted by Malstrom in several really great articles (for the most part he doesn't know much about video game business, but he knows a lot about business in general).

What a lot of people don't realize is that disruption is real, and has been going on for years, back to the NES days. When we look at the wii, as far as disruption goes, we can see a striking similarity. The wii sells similarly to the ps1 and ps2. This is because Sony, like Nintendo, uses disruption. So, "Why", you may ask, "is the ps3 not selling very well". It is because of the 360 and MS, and to a lesser extent, vastly cheaper computers/laptops.

The Sony strategy, of course, is to disrupt the PC market. Granted, the PC market is still thriving and growing, but the ps1 and ps2, were the first systems that allowed PC gamers to realize that console graphics and price difference could really rival PC systems. Back then, computers frequently ran over 1000$ and had a lot of restrictions. You needed specific requirements for each game, and parts pricing was nothing to laugh at, like they are today. Consoles, on the other hand, didn't need upgrades, except from one gen to another, and usually the cost of a system was the price of a new videocard. Quite a value, right?

You will begin to notice that Sony is in the practice of disruption from here onwards as you read about their decisions.

The evidence:

PS1 was one of the first consoles to allow for cd-music playing. This first move targeted stereo systems and gave users a way to start working with media.

PS2 began DVD playback. This targeted home DVD players.

While these seem more like Sony is targeting livingroom disruption, don't be confused. It may seem like these options actually bolstered the computer through cd and dvd burning. But these were only the first steps. Let's continue.

PSX came out shortly after the ps2, with CD and DVD burning capability! While the PSX didn't sell gangbusters, it is considered the basis for the future of Playstation. It introduced the XMB media crossbar, that would later appear on the PSP, PS3, and bravia tvs.

PS3 then released with several unique characteristics. It supported online and web browsing, required special programming, and played BluRay. You may ask, "where is the media-burning hardware, though". Well, while media burning is still important in the world, the general public doesn't use it like they used to. No longer are people burning cds for music, and while people do still burn dvds for movies and pictures, thumb drives and memory cards will replace it soon enough.

Going Forward:

After reading this, I hope you will see Sony in a new light, and I hope it will spark interest in critically analyzing everyone's favorite company .

In the future, Sony will be targeting the PC more and more, just as 360 will be reinforcing the PC.

Looking at the future, we can see some trends.

  • motion/touch control
  • Digital Distribution
  • streaming video
  • P2P
  • Social networking
  • internet use
  • Reusable/portable media
  • Huge harddrives

Expect the ps4/psp2 to use some, if not all of these.

 

If you enjoyed this thread, let me know. If you did not enjoy this thread, please do not post "fail" or any pictures, they will be reported. If you would like to debate or discuss, please do so appropriately.

Could I add my own theory?

I think the reason that the PS3 launched at such a high price (and the PSP:go) is so that part way through the console's life cycle, they could drop the price and completely re-launch the console and still have a second price drop available when the price of the parts go down.

I also think that Sony will launch a cheaper console next gen that will use very similar parts to the PS3 (perhaps made at the same factories) but more powerful, the PS3 may well be just a launch platform for the PS4.



Battlefield on 24 November 2009

everything except the p2p......... why they ditch ded. servers for p2p?



Burning Typhoon on 24 November 2009

So, PS4 with some sort of DVR, cable-in, 3TB hard drive, Cell, 3GB ram? It can't come soon enough. Watching cable TV from the PS4 would be so awesome. It also could use some custom OS designed specifically for the PS4. With a stable OS next time around, with stable internet, and DVR, along with everything the PS2/PS3 did, it would be awesome. I wonder how expensive it would be, though.



LordChris915 on 24 November 2009
nitekrawler1285 said:
I know what they are trying to do. I just don't think they did it well this generation. Portable or Console. They could have done better. They are improving but far too slow to face more competition than ever.

If I were Sony, I would be buying up as many small but promising Dev teams as possible and bribing skilled designers, artists and programmers away from their companies, what they need is overwhelming content of very high quality.



Around the Network
theprof00 on 24 November 2009

^rather than being a completely separate theory, it actually ties up very well with my own. I was going to mention counterpoints in the OP but felt it would be too much, and I would rather respond to someone if it was brought up.
Like a lot of people have been saying this gen, price was a big factor. At 600$, the ps3 was the price of a home PC. That's not good. A good console should beat PC pricing by quite a bit. But yes, you have a good point saying that they could "reinvent" the console, almost like releasing a second system within a generation.
I agree that Sony's next console will be a lot cheaper, and be very similar to the ps3.



theprof00 on 24 November 2009
Burning Typhoon said:
So, PS4 with some sort of DVR, cable-in, 3TB hard drive, Cell, 3GB ram? It can't come soon enough. Watching cable TV from the PS4 would be so awesome. It also could use some custom OS designed specifically for the PS4. With a stable OS next time around, with stable internet, and DVR, along with everything the PS2/PS3 did, it would be awesome. I wonder how expensive it would be, though.

notice, that the psx dvr also had a cable and tv tuner built in. This is definitely in the future for sony.

But, I would alter that slightly. I would say maybe 500GB, with a solid state drive with a huge number of cycles, maybe 2GB RAM. I don't think it will have a DVR, but it will definitely have USB for data transfer, which will replace DVD writing in the future.



Battlefield on 24 November 2009
LordChris915 said:
theprof00 said:

Hello everyone,

This is just going to be a brief intro to the Sony strategy, so that people can understand the approach and use the ideas herein to better predict things like next gen capabilities, direction, and reasoning behind decisions.

 

The Intro:

A lot of members on this site talk about Nintendo's disruption strategy, as highlighted by Malstrom in several really great articles (for the most part he doesn't know much about video game business, but he knows a lot about business in general).

What a lot of people don't realize is that disruption is real, and has been going on for years, back to the NES days. When we look at the wii, as far as disruption goes, we can see a striking similarity. The wii sells similarly to the ps1 and ps2. This is because Sony, like Nintendo, uses disruption. So, "Why", you may ask, "is the ps3 not selling very well". It is because of the 360 and MS, and to a lesser extent, vastly cheaper computers/laptops.

The Sony strategy, of course, is to disrupt the PC market. Granted, the PC market is still thriving and growing, but the ps1 and ps2, were the first systems that allowed PC gamers to realize that console graphics and price difference could really rival PC systems. Back then, computers frequently ran over 1000$ and had a lot of restrictions. You needed specific requirements for each game, and parts pricing was nothing to laugh at, like they are today. Consoles, on the other hand, didn't need upgrades, except from one gen to another, and usually the cost of a system was the price of a new videocard. Quite a value, right?

You will begin to notice that Sony is in the practice of disruption from here onwards as you read about their decisions.

The evidence:

PS1 was one of the first consoles to allow for cd-music playing. This first move targeted stereo systems and gave users a way to start working with media.

PS2 began DVD playback. This targeted home DVD players.

While these seem more like Sony is targeting livingroom disruption, don't be confused. It may seem like these options actually bolstered the computer through cd and dvd burning. But these were only the first steps. Let's continue.

PSX came out shortly after the ps2, with CD and DVD burning capability! While the PSX didn't sell gangbusters, it is considered the basis for the future of Playstation. It introduced the XMB media crossbar, that would later appear on the PSP, PS3, and bravia tvs.

PS3 then released with several unique characteristics. It supported online and web browsing, required special programming, and played BluRay. You may ask, "where is the media-burning hardware, though". Well, while media burning is still important in the world, the general public doesn't use it like they used to. No longer are people burning cds for music, and while people do still burn dvds for movies and pictures, thumb drives and memory cards will replace it soon enough.

Going Forward:

After reading this, I hope you will see Sony in a new light, and I hope it will spark interest in critically analyzing everyone's favorite company .

In the future, Sony will be targeting the PC more and more, just as 360 will be reinforcing the PC.

Looking at the future, we can see some trends.

  • motion/touch control
  • Digital Distribution
  • streaming video
  • P2P
  • Social networking
  • internet use
  • Reusable/portable media
  • Huge harddrives

Expect the ps4/psp2 to use some, if not all of these.

 

If you enjoyed this thread, let me know. If you did not enjoy this thread, please do not post "fail" or any pictures, they will be reported. If you would like to debate or discuss, please do so appropriately.

Could I add my own theory?

I think the reason that the PS3 launched at such a high price (and the PSP:go) is so that part way through the console's life cycle, they could drop the price and completely re-launch the console and still have a second price drop available when the price of the parts go down.

I also think that Sony will launch a cheaper console next gen that will use very similar parts to the PS3 (perhaps made at the same factories) but more powerful, the PS3 may well be just a launch platform for the PS4.

interesting theory, but I'm sure it was the the cost behind making the console so advanced (blue-ray, and the cell), making the console cost 800 to make, hence selling it for 600........ in the future things become cheaper like they have, so the price gets reduced. Every playstation has lowered in price...... which is more than enough testiment that the ps3 would have eventually become cheaper, seeing that the pervious consoles (ps1,ps2) dominated far greater than the wii and with compitition doing way worst than the 360 and ps3. What ever the price is for the ps4 do know for a fact it will lower in price in the future. Oh and i totally agree that the ps3 i a launch console for the ps4. The ps3 to me was the intro to get blu-ray established, and the cell established so when the next wave of console come sony would be on the safe side.

 

 



theprof00 on 24 November 2009

^Yeah, Sony definitely took a hit this gen in order to plan and set themselves up for the successive gens.
BR was very very important to Sony's future.



LordChris915 on 24 November 2009

I would like to know what Sony has in the Bank and how much of a hit they can afford to take this Gen, they must have loads of PS2 cash sitting around and some cash from the PS1 too I assume.

What money does the PS division get from Sony?

based on that we gould take a guess at how much PS3 development was, how much they can afford to lose, we could do with the definitive manufactuing costs, it may cost $800 to make a PS3, but if they buy in bulk they could have a much better deal than that.

I would also like to know what they are saving on the PS3 slim and what their profit margins are on software sales, without knowing this we cannot know what Sony real financial position is.

 

P.S. I wonder what MS lose on RRoD