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Now, I won't say that Sony's got only one problem with strategy and PR: obviously there are plenty to choose from. But this quote regarding the new 40gb PS3 from the Wall Street Journal today really seems to get to the heart of the problem:

 

Mr. Tretton conceded that removing that capability [backwards compatibility], along with a few other features, isn't dramatically reducing Sony's cost of manufacturing the console but will instead encourage buyers of the entry-level PlayStation 3 to purchase more games designed specifically for the new system.

No surprises here -- we knew the real motivation had to be something like this. But to hear it out of his own mouth is really something.

This attitude, I think, is a prime example of what's wrong with Sony's strategy: instead of convincing consumers to support the PS3, they try to trick them into supporting it. Instead of giving consumers something they want, they give them something they don't want and tell them they do.

This pattern goes back to the beginning. "The PS3 is too cheap," they said before release. "BluRay is necessary for HD games," "Rumble is incompatible with motion controls." "Rumble is a last-gen feature." When the first price drop came, they claimed the new 80 gig model would be the only version available soon, and that it would have no price drop. When the 40gb came to Europe, they claimed the other, BC-enabled, models would be phased out so people would run out and buy them. And so it goes on.

 All of these things were lies (well, the Europe one hasn't been proven yet, but it will be) fabricated for some short-term gain, to trick the consumer into buying something he doesn't want. The problem with this strategy is that it relies on customers having no long-term memory. Is the puny boost in sales from these moves really worth the PR hit and the lingering bad feelings against them? Do they really think people are going to be fooled into buying a bunch of PS3 games they don't want just because they can't play PS2 games on the machine? And even if they are (and even if the lack of BC justifies the inflated price of the other models for customers), wouldn't it have made a lot more sense over the long term to just keep backwards compatibility, make a whole pile of customers happy instead of bitter, and sell a hell of a lot more units?

 But that's not the way that Sony works. And it's killing them.