StompingFreak
01-09-2008, 05:35 AM
Sony Chief Executive Officer Sir Howard Stringer has been talking to the German press about Wii, getting the THREE BILLION back Sony spent on PS3 and Blu-ray versus digital downloads. Pull up a chair...
"Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them," says a bullish Stringer in the face of stiff competition from Nintendo. "It's a different experience. The Wii is a well-made device that has found a new target group.
"For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue. PlayStation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3.
"The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense - it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes."
When asked if Sony could ever make its money back on the three billion dollars spent making PS3, Stringer could only laugh, saying, "Not for as long as I live. It will certainly take some time. The traditional business model for the PlayStation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even.
"In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware."
He added that there won't be a PS3 price cut this side of Christmas. Just in case you had your hopes up.
Source (http://www.goldenjoystick.com/)
"Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them," says a bullish Stringer in the face of stiff competition from Nintendo. "It's a different experience. The Wii is a well-made device that has found a new target group.
"For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue. PlayStation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3.
"The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense - it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users' homes."
When asked if Sony could ever make its money back on the three billion dollars spent making PS3, Stringer could only laugh, saying, "Not for as long as I live. It will certainly take some time. The traditional business model for the PlayStation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even.
"In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware."
He added that there won't be a PS3 price cut this side of Christmas. Just in case you had your hopes up.
Source (http://www.goldenjoystick.com/)