Static, there is a major trend in news stories about Sony's VG division right now. Sony is trying to cut their costs and decrease their hardware losses because PS3 is selling poorly.
The videogame market has risen companies to heaven and then crashed them back down to earth repeatedly. We're watching the latter happen to Sony now. No, its not wishful thinking. Consider the following:
If they reach 3.5mil this month, and sell 500K a month WW, they will sell-through 6 million in September.
They decreased the functionality of European PS3s to reduce costs--taking out PS2 components.
They eliminated the cheaper (higher loss) PS3 outside of Japan.
They are considering laying off ~10% of their gaming division workforce in Europe.
These are facts. I've done my best to remove any spin. I've not mentioned competitors. Now, what conclusion do you draw from these? Is there something you would add?
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.
