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Forums - Sales - Fortune Profiles Howard Stringer and the "Four Musketeers" at Sony

nitekrawler1285 on 26 June 2009
Avinash_Tyagi said:
Well actually even then they have to hope that their hardware becomes profitable, since if they keep losing tons of money on PS3's and the like it won't matter if they even make some profit on the sales of movies, they will lose more from the hardware.

I think they would be better off creating more streamlined, focused machines designed around their media, kind of like what Nintendo has done.


What do you think the PSP GO! is?  It's shaped more like a dual shock controller to help play games. Has a gorgeous screen which helps with games and movie playback which can all be purchased from the device itself. It's already been profitable before and with the go the margins only rise.



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SaviorX on 26 June 2009

Long article, but I got the idea that Sony is trying to revitalize itself after taking a huge Ivan Drago beating.

If this doesn't work........................lets just hope it does. Sony needs a comeback.



Leatherhat on July 6th, 2012 3pm. Vita sales:"3 mil for COD 2 mil for AC. Maybe more. "  thehusbo on July 6th, 2012 5pm. Vita sales:"5 mil for COD 2.2 mil for AC."

Avinash_Tyagi on 26 June 2009
nitekrawler1285 said:
Avinash_Tyagi said:
Well actually even then they have to hope that their hardware becomes profitable, since if they keep losing tons of money on PS3's and the like it won't matter if they even make some profit on the sales of movies, they will lose more from the hardware.

I think they would be better off creating more streamlined, focused machines designed around their media, kind of like what Nintendo has done.


What do you think the PSP GO! is?  It's shaped more like a dual shock controller to help play games. Has a gorgeous screen which helps with games and movie playback which can all be purchased from the device itself. It's already been profitable before and with the go the margins only rise.


Problem is that the machine has a very weak games library, as illustrated by poor games sales, look at the DS by comparison, a much less powerful machine with less features, yet it sells far more both hardware and software, and is a profit generating machine for Nintendo



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

nitekrawler1285 on 26 June 2009
Avinash_Tyagi said:
nitekrawler1285 said:
Avinash_Tyagi said:
Well actually even then they have to hope that their hardware becomes profitable, since if they keep losing tons of money on PS3's and the like it won't matter if they even make some profit on the sales of movies, they will lose more from the hardware.

I think they would be better off creating more streamlined, focused machines designed around their media, kind of like what Nintendo has done.


What do you think the PSP GO! is?  It's shaped more like a dual shock controller to help play games. Has a gorgeous screen which helps with games and movie playback which can all be purchased from the device itself. It's already been profitable before and with the go the margins only rise.


Problem is that the machine has a very weak games library, as illustrated by poor games sales, look at the DS by comparison, a much less powerful machine with less features, yet it sells far more both hardware and software, and is a profit generating machine for Nintendo

Nintnedo has always had  multi million sellers Sony has always really only had GT.  They rely on liscensing cost for 3rd party devs to make up slack. The software renaissance seems to make this plan a little more feasible in the future now that some 3rd party developers are finding success on the platform.  The PSP is a profit generating machine for Sony despite the fact that up until now most think that the software is underwhelming.  Now that the software will pick up It only gets sweeter for them. 

No one can compare to what Nintendo is doing right now except for maybe Apple.  Their success is unprecendented in this industry in case you hadn't noticed. So saying that anyone who doesn't compare fails is pretty false. There are different levels of achievement and creating the most successful 2nd place entrant into the handheld market to the tune of 50 million no less as well as generating a profit (even though it's swiftly destroyed by it's older non portable cousin PS3) is great. 



Galaki on 26 June 2009

Ah, yes, RIAA is a credible source for numbers and statistics.



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Avinash_Tyagi on 26 June 2009

I'm not saying its not good, but like you admit its being swiftly destroyed by the PS3, even the PSP wasn't profitable at first and only became that way over time, and according to the Source, its starting to drop off at this point in software and hardware, if they had been able to push better software and at a lower price earlier, they might be in a much better positin with the PSP than they are, if they had tried to emulate nintendo's approach to handhelds. So Sony is still in a position where they are losing money and Nintendo is in one where they are gaining, you say that Nintendo's success is unprecedented, but even in the N64 and GCN eras, they were making profits, because their systems were focused without being overly flashy, they could be priced at a profit and were able to push a lot of nintendo software, because they were designed around the system, it wasn't about huge success, they were in thir place last gen, and they weren't doing anything off the wall with the GCN and GBA, but they still made a ton of cash, becase they had a smart business plan. Even when Nintendo were in third place they were making rpofict, Sony could learn a lot and be in a much better psotion if thye adopted Nitendo's business sense, not just their innovations.

@Galaki, not saying that they are a credible source, but I haven't found disputing figures anywhere.



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Staude on 26 June 2009
makingmusic476 said:
The real test of Stringer's game plan is a product that doesn't even exist yet, isn't a machine, and has no code name. It is a kind of omnibus web-based software platform that will use the power of the Internet to connect the company's rich library of content and devices, creating a multimedia experience for customers that actually rewards them for buying multiple Sony products and services.

[...]

While Sony executives are short on the specifics, Hirai says the new service will overlay the backbone of the PlayStation Network but will be broader and more open. The service would make easier such things as putting images from a camera on TV, displaying and editing video, sharing with friends, and storage. Brand loyalists would be rewarded with incentives like discounts and premium services.

Stringer has intimated that the company is in a position to make acquisitions that will accelerate the effort, and Hirai says the first glimpse of the new service should be seen by next spring. "It's now a matter of what all the services need to look like for each device, and coming up with a rollout plan," says Hirai. "It's like city planning here, and we can start small. We don't need to build New York City overnight."


I'm really liking the sound of this.

Now if only he could get other divisions of the company to start talking, like SCE and Sony Pictures. SCE has a plethora of great IPs that Sony Pictures could turn into Summer blockbusters. Yet somehow, Universal ends up with the God of War IP and gives it to some half-assed director with a tiny budget.

hehe..

 

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Galaki on 26 June 2009
Avinash_Tyagi said:
@Galaki, not saying that they are a credible source, but I haven't found disputing figures anywhere.

Perhaps, it's impossible to?

It has been pointed out again and again that the figures RIAA/MPAA throw out are false and blown out of porportion.



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Avinash_Tyagi on 26 June 2009

perhaps they are, although if you say you don't have disputing figures and its impossible to knwow, you can't say that RIAA's figures are false, since no one would know whether they are or not, all you can sya is that they are at best estimates and at worst just pulled out of the air to suppor their rhetoric. However even if the RIAA numbers are off, its pretty likely that the vast majority of music on most people's Ipods and other MP3 devices, are not ontained legally



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

nitekrawler1285 on 26 June 2009
Avinash_Tyagi said:
I'm not saying its not good, but like you admit its being swiftly destroyed by the PS3, even the PSP wasn't profitable at first and only became that way over time, and according to the Source, its starting to drop off at this point in software and hardware, if they had been able to push better software and at a lower price earlier, they might be in a much better positin with the PSP than they are, if they had tried to emulate nintendo's approach to handhelds. So Sony is still in a position where they are losing money and Nintendo is in one where they are gaining, you say that Nintendo's success is unprecedented, but even in the N64 and GCN eras, they were making profits, because their systems were focused without being overly flashy, they could be priced at a profit and were able to push a lot of nintendo software, because they were designed around the system, it wasn't about huge success, they were in thir place last gen, and they weren't doing anything off the wall with the GCN and GBA, but they still made a ton of cash, becase they had a smart business plan. Even when Nintendo were in third place they were making rpofict, Sony could learn a lot and be in a much better psotion if thye adopted Nitendo's business sense, not just their innovations.

@Galaki, not saying that they are a credible source, but I haven't found disputing figures anywhere.

Sony themselves has already admitted that Nintendos strategy of selling HW for a profit is better.  They can't just go back and change what they have done but it seems like they are learning their lessons. Making the best out of the situation (doing as much as they can to improve HW and SW sales and margins on the most profitable sector of thier business).

PS.  I was wondering if Sony really lose that much money on PSP since even if users pirate software they must buy expensive proprietary media from Sony to hold all their roms.