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Forums - Gaming - EA exec crosses fingers for Sony's future

Gilgamesh on 03 March 2009

Having the most expensive console on the market by a distance during a global recession is unlikely to have featured in Sony's original PlayStation 3 masterplan. But that is where the company finds itself today, and declining hardware sales, contrasting with rivals' fortunes, have increased pressure on the Japanese firm.

But rumours of an imminent price cut are circling, which, if correct, would be music to the ears of retailers and publishing partners. Not least Electronic Arts, one of many firms to have invested heavily in the future success of the platform.

Speaking to GamesIndustry.biz, Redwood Shores general manager Glen Schofield revealed his fears over the positioning of the console in the market, agreeing that the pricepoint placed PS3 as a luxury item in difficult economic times.

"I'm really not sure what's going on with Sony," he said. "They've been such a great, great partner and PlayStation 2 being such a great machine that, God, I hope they get out of this and they figure it out and they're around for a long time."

He refused outright to call for a price cut, stating: "You know, I can't tell them what to do. I don't know their finances." But Schofield added that it was good for health of the whole industry to have three successful home consoles in the market. "I love having the three major machines like that."

Redwood Shores' most recently released Dead Space to critical acclaim. The next title from the studio will be Dante's Inferno.

http://www.gamesindustry.biz/articles/ea-exec-crosses-fingers-for-sonys-future

For such a high price during the recession the PS3 is doing quite well, as long as it continues to manage close to 150K consoles a week it should be fine until a price cut comes.



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BHR-3 on 03 March 2009

i also have mine crossed as well



                                                             

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Vetteman94 on 03 March 2009

I feel there is no need to cross my fingers, the PS3 has some amzing games coming out this year, and gamers will rexognize this and buy one to play these games. Having a price cut with speed up that process but is not needed at this time.



DMeisterJ on 03 March 2009

There are only 2 chances of a price cut this year.

1. The week preceding, and proceeding the end of the fiscal year (March 24, 2008 - April 7, 2008) or

2. Later in the year.

Or maybe both. But for a total of 100 dollars, so fifty-fifty, or 100 at one of those points.



Squilliam on 03 March 2009

I don't see much of a problem unless your #1 goal in life is for the PS3 to outsell xxx console and your #2 goal is to tell everyone about it when it does.



Tease.

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TheSource on 03 March 2009

EA had like 50 million selling PS2 games so it isn't too surprising to see the company suffering with ~450m out of ~700m games bought by retail on non-Sony platforms in the year ending March 2009



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When there are more laws, there are more criminals.

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smallflyingtaco on 03 March 2009

I fail to see what he is all that concerned about. The yen has weakened a bit so that should help their margins. They also managed to either pay down or refinance there recent debt that matured. Those where the big short term concerns. If they are aggressive in refining their business model, which seems to be the route they are going, they should be fine. They may not make a lot of money right about now but they are going to survive for another round in the gaming business.



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Zkuq on 03 March 2009

Sony itself will survive the recession, no matter what. The PS3 is the only greater source of loss, and they can kill it anytime if necessary. However, I doubt they're going to have to do it and I doubt EA meant the whole of Sony either.

I believe Sony's gaming division will survive, too. They made a slight profit last we heard of it (although they're probably going to lose money next time) so the situation can't be that bad after all. Besides, their sales aren't that bad in the end and they're also getting reduced production costs this year. No, while Sony's situation might be bad, it's definitely not desperate or anything like that. They should focus on reducing production costs even further to stay profitable or at least not making too much loss before PS2 completely dies. I wonder why they still haven't cut its price though, as it would definitely increase its sales which could increase profit... Nah, nevermind that; I suppose they have made their calculations well enough.



saicho on 03 March 2009
Zkuq said:
Sony itself will survive the recession, no matter what. The PS3 is the only greater source of loss, and they can kill it anytime if necessary. However, I doubt they're going to have to do it and I doubt EA meant the whole of Sony either.

I believe Sony's gaming division will survive, too. They made a slight profit last we heard of it (although they're probably going to lose money next time) so the situation can't be that bad after all. Besides, their sales aren't that bad in the end and they're also getting reduced production costs this year. No, while Sony's situation might be bad, it's definitely not desperate or anything like that. They should focus on reducing production costs even further to stay profitable or at least not making too much loss before PS2 completely dies. I wonder why they still haven't cut its price though, as it would definitely increase its sales which could increase profit... Nah, nevermind that; I suppose they have made their calculations well enough.

I think Sony is deifnitely desparate as a whole at least.

 



MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.

Mr Khan on 03 March 2009
saicho said:
Zkuq said:
Sony itself will survive the recession, no matter what. The PS3 is the only greater source of loss, and they can kill it anytime if necessary. However, I doubt they're going to have to do it and I doubt EA meant the whole of Sony either.

I believe Sony's gaming division will survive, too. They made a slight profit last we heard of it (although they're probably going to lose money next time) so the situation can't be that bad after all. Besides, their sales aren't that bad in the end and they're also getting reduced production costs this year. No, while Sony's situation might be bad, it's definitely not desperate or anything like that. They should focus on reducing production costs even further to stay profitable or at least not making too much loss before PS2 completely dies. I wonder why they still haven't cut its price though, as it would definitely increase its sales which could increase profit... Nah, nevermind that; I suppose they have made their calculations well enough.

I think Sony is deifnitely desparate as a whole at least.

 

As a whole? Somewhat. That's what the restructuring is for. I mean, everyone's doing bad, but their consoles are doing well enough. The whole division just needs a shot in the arm, though it might be that Walkman and Vaio drag PlayStation down, instead of helping to lift it up

 



Monster Hunter: pissing me off since 2010.