GI - As Vita posts another awful quarter and PlayStation slips into loss, how does the games business hang on?
If Sony leaves Console business, i leave with it. I'll move to PC Gaming.
I just hope Sony's developers follow suit if that happens though. It'd be amazing if Sony's first party devs went to work for Valve or something, and just made PC exclusives (if Sony left the console business). But to be completely honest, it won't happen. Sony is currently in the middle of a company wide restructuring under that whole "unity" theme Kaz is going for. So just give them some time and they'll be more than back on their feet.
Sony has too much riding on the Playstation brand for them to give it up. They've got the tools and the resources to become an "Apple" like company but with a far better range of entertainment choices and consumer electronics.
IF that were to ever happen, Sony would sell all the companies so they'd probably end up with publishers like EA etc....that or they would sell their licenses to games like Uncharted etc.... and shut down the companies. which is why I don't think it will happen. IF Sony were to struggle that badly, they'd simply sell off a few assets and restructure a little bit and try again. It wouldn't be "sony is done for" just like that. Sony is learning to lean on PlayStation more and more. They use it as a launching ground for other products, and its working well.
"It's just Sony isn't the top dog anymore. And that's good for gaming." How the hell is that good for gaming fanboy?! is it good because we will get nothing but gears and halo from MS and mario and zelda from nintendo for the rest of our lives?! yeah bro, definitely perfect for gamers that dont want any new IP's or gaming innovation... I don't support sony because I'm a blind fanboy like some people, I support sony because they give gamers what they want... Games! If you can't see that after the PS1 and PS2 era, then clearly, you have no idea what Sony has/ and is capable of...
No successful console manufacturer has ever dropped out after one bad generation. And, the generation can't be considered all bad either. Sony won a format war, launched an online platform that serves multiple Sony devices, and picked up one of the biggest cloud gaming companies out there to prep for the future. This in addition to launching more killer new IP's than anyone else this generation. that's a whole lot of AAA sequels they'll be enjoying next gen, games that already have well established brand names thanks to PS3.
Businesses fluctuate. The world keeps spinning. http://i50.tinypic.com/55fi... Sony isn't going anywhere! Anyway, back to gaming :)
IF so, i would accept the truth wholeheartedly. Not crying a river. Good luck for them.
You guys realize that you will be directly supporting Microsoft if you go the PC route, right? I suppose that is the lesser of 2 evils between MS and Nintendo for Sony fans.
Even though it's very highly unlikely that Sony would be kicked out of the biz, if it randomly ever happens, I'm with you. But it's not. Sony has the best and most exclusive game titles under their belt. I'm not a fanboy or loyal consumer to any of the big three, but it's a fact that Sony has better games compared to other gaming consoles. When you talk about PC gaming, it's totally different than console gaming, so the comparison shouldn't be made.
That is no where near a fact. Biggest opinion I've seen actually. They have SOME of the best games under their belt. Sony fans are hilarious. If you only support one product then that makes you loyal. Great contradictory post.
Would you say the same if Microsoft dropped out, Mezzo? From my perspective, either Microsoft or Sony leaving the console gaming business and not being replaced by someone of equal nature is removing all need for competition from the mix. There will be one standard, no options for alternatives. Proprietary devices will likely increase and prices will not be competitive. Third-parties will be about the only thing fighting for your money, and there will be less focus on selling the best technology and more focus on selling the best 'value' of a game. Would new gameplay concepts arise with a more crowded environment as all development teams work for the one console? Would Forza and Halo evolve as fast as they have without primary competitors on a different machine? Will there be a first-party at all or will it all become third-party games? And, then, what will this mean for smaller development teams who don't have the money and therefore typically the talent or resources (let alone marketing) to compete openly? It's a sad day when any of the current Big Three would have to leave the field.
Yes i would say exactly the same, if any 1 of MS or Sony leaves the Business, i'd move to PC Gaming. With 1 of them gone, we'll have no choice but to deal with whatever Crap the surviving 1 throws at us. Can't deal with that.
I would never wish for anyone of the three console manufacturers to exit. When Sega did, it was a sad day! If anything, I wish we had an additional competitor. Maybe Sega or Atari cold re-enter, but that is extremely unlikely. I think Valve would have been an excellent company to stir the pot a little!
@nukeitall, not sure why you got so many disagrees. I think it'd be awesome if Atari could make a huge comeback.
@BitbyDeath: I have no clue either, but sometimes you upset people that are fan of one platform, because those people are heavily concentrated in a news article about that one console so you get a lot of disagres. I mean, just look at the above comment by Hicken #1.3.2 essentially complaining about the bubble system, yet his personal attack got 6 agrees to 2 disagrees. Ironic isn't it! I think it would be awesome for more manufacturers to join the competition and stir the pot. Put some pressure all around.
They are in the pc business also.. http://www.youtube.com/watc... http://www.gaikai.com/ I think sony should be the netflix of gaming.
Agreed Mezzo i refuse to support microsoft in any way and nintendo has nothing that interests me sony is the only company that cares about hardcore gamers, creating new ips, quality hardware, and not ripping the consumer off if playstation goes down then i stop gaming
i don't know about all that, but i too would be done with consoles. not because of an irrational love for Sony or hate for MS or Nintendo. i just refuse to pay to play online, and Nin just hasn't done anything for me in a long while. of course all three companys could change their financial and creative strategies, and completely change my current point of view.
If it does happen... dont let the door hit u on the fu*king way out. There is plenty of sh*t to play that isnt sony exclusive.
We know economy is though but I think Sony will recover. Like s y said a lot of their gaming losses are because of exchange rate. And let's saya they decide to leave console business they can just become a software publisher and they would be the biggest publisher with most IP's. Here is one thought and I know this may never happen but what if after ps4 Sony wants only software business they can help either Nintendo or Microsoft make a console and be co partners and than support that console with their studios. A Xbox where ms and Sony are working together or a Nintendo console just think how amazing that could be lol. But I hope and pray to god Sony survives because if they Eave most likely my gaming needs are over and done with
I agree with -Mezzo-. IF Sony leaves the console business (which I doubt will happen anytime soon), then I don't have many other alternatives. Nintendo is mostly a casual games company with its foundation built on casual games and audiences; not to mention the hardware is usually a step or two behind other platforms each generation. Microsoft basically focuses all their hardcore efforts on Gears and Halo. Not to mention they've been becoming more and more aggressive in chasing the casual audience lately (i.e., Kinect). And without Playstation as a competing console on the market, you can bet everything you own that Microsoft WILL increase Xbox Live subscription prices. You can count on that. Microsoft won't miss an opportunity to fleece its "loyal" fanbase for every extra dollar they can. If you think $59 per year is bad, wait until they increase it to $69... $79... or even more. Then, we would see how all these fanboys rooting against Playstation will suddenly start regretting the lack of competition.
Strongly disagree. Nintendo has many franchises that r for the hardcore gamer. Mario, donkey kong, zelda,, star fox, f zero, metroid to name a few
"Nintendo is mostly a casual games company with its foundation built on casual games and audiences; not to mention the hardware is usually a step or two behind other platforms each generation." Come on, I understand that you may not be interested in the console but both those statements are BS. Wii is the only Nintendo console to be less poweerful than Sony's console in the same gen. And in terms of first party Nintendo historically has higher quality and more appealing games (if you go by sales, scores, and general opinion outside of N4G). What Sony does great is combining their exclusive catalog with third party support, something that would actually be easier for Nintendo if Sony were gone. So if Sony drops out we may actually get the ultimate Nintendo console.
Then what is stopping you now? It's not like Sonys exclusives will end up on PC.
That picture for this story is priceless... LoL .____........___...____ .____||......||.......____|| ||.........___||.......____||
So what you are saying is that you will support Microsoft on the PC?
Sony leaving the market would be a devastating move, but it would also give room for companies like Apple and Sega to step in.
I doubt it. Sorry, but most PC gamers don't just play PC and I bet you wouldn't just quit cold-turkey like that. You have to have options like if you want to play with friends, etc. For example, I mostly play PC, but at the same time I love Nintendo and play it a lot with my friends.
The PS3 is doing just fine making good profits. As you can see the PS3 was the top selling console for the qtr. And PS3+PS2 sold better than 360+Wii. But the industry is in a down-slope at the moment and what made Sony lose money in the game division was the Vita. They are in a sticky situation because I think the Vita needs to be the same price as the 3DS XL but I know they will lose more money making that price cut so hopefully software can help a little bit until the inevitable price cut. I know the Vita is a great machine but casuals care more about the price than whats built in the Vita
What's inside the Vita isn't some ground breaking technology as most modern phones can out spec the Vita. Now before people kill me I'm not comparing the two I'm just saying that the Vita isn't some unbeaten beast and by Q1 2013 it won't be a contest. I think ultimately Sony will have to lower the price of the Vita as you say because consumers don't care what is inside of their machine more along the lines of what can do something comparable but for a cheaper price. Wouldn't you buy a TV that was roughly the same as another one but was around $500 cheaper? Vita is a good machine but it can't even outplay Economics.
I don't understand all the disagrees you got, Madfinger's games on Android (I'm thinking tegra 3) look up to par with most Vita games they're just a bit smaller and more basic in terms of gameplay, ai and content. But then again they cost a lot less too and probably have much smaller budgets to play with. I just want my bloody Ps1 support I was supposed to get at the start of summer.
With the amount of profit the smartphones get per year, it's not surprising to say the least that they can outspec the current handheld. But you forget 3 things: 1) Vita is primary gaming device with "core" based games running of it. For it's price, it's a steal considering the phone costs 3x more for comparable specs. 2) Even compared with the S3, it still sports a better GPU and the CPU itself is comparable. Add to the fact the OS doesn't hog that much memory along with the optimizations that go along each year games are developed for it. 3) No matter big the jump in tech for smartphones, there must be a LIMIT. Even the high end graphics card on PCs require a power supply to run it. There's only so much you can put on a mobile device, unless they have the resources on R&D to place mobile versions of 560's with almost no games to take advantage of.
guitar_nerd_23 he got the disagrees because he made a good point, here.
I'm not sure that most modern phones can out spec the Vita now. But they will next year and every year after. And during that time there won't be a Vita upgrade. That is why the mobile gaming market is a bad move if your goal is being the most powerful mobile device. Nintendo is smarter by appealing to a younger audience that is less likely to have a $500 phone.
@ ryo-hazuki It is all in the very report Sony put out. I don't know why it is you or anyone likes to make things up or chalk it up as denial claiming it is only the Vita giving issue. Sales decreased 14.5% year-on-year (a 10% decrease on a constant currency basis) to 118.0 billion yen (1,493 million U.S. dollars). This decrease was primarily due to lower sales of hardware and software of the PSP® and PlayStation®3, partially offset by the contribution of the PlayStation®Vita introduced from December 2011.
They'll have to lower Vita's price. It's that simple. $200+ handhelds are a no-no. Lower the price when a couple good titles release and get the hype ball rolling.
I've got to agree. It's not that I don't think the Vita is worth $250, but I won't buy it for anything over $200. I don't know that I'd buy one at $150. A dedicated, mobile gaming device just isn't that important to me when my smartphone more than fills the void when I'm waiting around in a dr's office. I'm sure I'm not the only one in that boat. As for Sony current situation, it sucks. It suck's hard and it has for some time for a variety of reaons. I've never, ever denied that. What I have done is offered perspective. PS3 and PS2 sales are down over 10% for the quarter? That's right, they are. 360 sales are down 43% for the first 6 months of 2012. Wii sales last quarter were down 55%. Hardware sales are down across the board and that's not good for anyone. With any luck, a $150 PS3 super slim could kick things up again, as would a price cut on the 360 and the launch of the Wii-U but make no mistake, for a healthy industry the current state of things must not stay the same. Something has to happen to kick things into gear again, and with the next gen still potentially a couple of years away (and with no guarantee that new, expensive hardware is even the answer) all players need to act soon. It's funny that this article starts with a guy bashing me for posting incorrect data but without an actual example to back his claim up. Go through my posting history. You won't find one either. But then look at that guy's posting history and tell me he has any interest in actually adding to actual, gamer conversation on this site. That account flares up like a hemmorrhoid every few months or so, trolls up a storm then goes dormant again. Edit: And look at miDnIghtEr20C_SfF aka Prince_Dim-Lu aka Endoran. How many duplicate accounts does a guy need to troll on about the "SDF"? Come on, mods. How many times does that guy need to be reported? If you need, I've got a few PM's each from his different accounts harassing me with each account after I block them. Let's clean this up.
The Vita needs to hit below the $199 mark. Especially with the Nexus 7 released. Its not a dedicated game machine, however the average consumer that buys most of these mobile devices could care less. They look at the Vita at $250...then they look at the Nexus 7 for $199...That average consumer will most likely pick the Nexus 7 over the Vita unfortunately. Times have changed and Nintendo and Sony need to move with those times for mobile gaming.
hell yea, that sh*t's too damn expensive.
This is a duplicate. Let's not pretend that the reported losses are gonna stop Sony from releasing the PS4.
Here here. The reason there's a slowdown in the sale of hardware such as the PS3 is because it has been on the market so long, i.e. by now everyone who is interested in buying a PS3 more than likely has one by now and if you already have one you're not going to buy another one, simple. The release of yet another slim model may kickstart sales for a while but it can't last forever, the PS4 must be released soon. I've seen a lot of posts in other forums saying that releasing the PS4 would be financial suicide because gamers won't be able to afford it. Rubbish. If people who regularly pay 50-70 quid on individual games just held on to that money for a small while it would soon add up and voila, there's enough cash for a new system and they could then return to regularly spending 50-70 quid on games. The reason sales of the Vita aren't as amazing as some people thought they were gonna be isn't because of the price, it's because it is so similiar to the PSP and only seems to be releasing watered down PS3 games. If it offered something completely different it would sell. The gaming hardware market has stagnated in a big way, there's nothing new and people are getting bored. A kickass new Playstation or Xbox would reignite it but the investors are scared to take the risk.
I believe they really screwed themselves with the PSN hack lots of people aren't going to trust them enough with their information anymore. The parents of kids who own PS3 might consider another console after what happened. Although it still has solid new IPs that might not be enough, they weren't prepared for that hack.
I'd pin it on a lack of advertising too. Sony has made some pretty good adverts (such as KB and Michael), but there aren't many for games themselves. Which is a shame because all they really have to do is show some in-game footage of something like GodOfWar, Killzone or Uncharted to get people interested. MS had their issues such as the hardware failure rate, but they also had ads that would counter negativity. Sony hasn't really done that, and as a result, you mostly only hear about them when there's something negative.
I don't think it is necessarily ads that outweighs negativity, but rather how you handle the issue when shit happens! Nintendo was did good about the free Wii mote jacket and the ATI gpu issue which they fixed out of warranty. MS was good about RROD, by extending to a 3-year warranty and refunded people that paid for the repair previously. MS even provided free shipping boxes and shipping cost both ways. This is not common, as you usually have to bear the shipping from you to the repair house. Sony didn't do jack squat about the PS2 disc read issue, until they got sued then years later when the PS2 lifespan essentially ended in 2005, they settled. You would get a lousy $25 if you still had the receipt, and no refund if you paid for repairs. When the PSN hack happened, they did good by giving me a 1-year ID protection service, but marred the experience by screwing me over on the free games. They posted the wrong end time, and then subsequently told consumers you had plenty of time! Compare and contrast, it is clear who is more consumer oriented!
Exactly they were going up on Microsoft as well until the hacks happened. That just sealed the deal on Sony this gen, PS3 now is basically only going to play Blu-ray, offline games. They have a really good chance next gen though, if they bump up their online experience and avoid major problems they could be back on top. Microsoft and Nintendo seem to be getting lazy since the PS3 fell so Sony can give them a good wake up call, there's still hope for Sony.
People are quick to take this article as a, "Sony's doomed article.", when in fact, it's just pointing out the losses and the reasons behind it. I do think that Sony can turn it around so long as the do make some changes on Vita's price point. He's absolutely correct, there is still a dedicated market for handhelds; Nintendo has approximately 20 million handhelds in little over a year. The Vita is priced reasonably for the power it has, but most people have chosen to wait or purchase a 3DS because it's cheaper. Whats interesting is that the 3DS XL recently released in Europe and Japan with huge success, despite it not including a charger and having a $200.00 price tag, while the regular 3DS sales managed to maintained their regular weekly strength. In just two days, the 3DS XL sold almost a quarter of a million units in Japan; The UK did really well too at $200.00. This should let Sony know that people are ready and willing to purchase a dedicated handheld at this price. Obviously there is a market out there for a dedicated handheld, priced at $169.99 and $200.00. The thing is that most people find it hard to purchase a handheld for more than $200.00. The problem is that if Sony doesn't do anything to take advantage of this knowledge, the competition will continue and will gain such a tremendous lead, that it will become a repeat of the DS/PSP handheld war or worse if you factor in Smartphones and Tablets.
There is a market for handhelds among kids because they don't own phones. The handheld market is dead ages 14 and up because of phones and tablets
Not true, statistics have shown the demographics for most people that purchase handhelds are adults 18 and older; while children only make up 30-35% of current handheld gamers! Sorry to burst your bubble, but if that were the case, Sony wouldn't bother to market the Vita towards adults, they would push for nothing but kiddie games and cheap hardware. Really, think about it man... It's that misconception that blows me away on how so many people believe that children only by handhelds. We all have great smartphones by now but know the difference between a quality game over a casual arcade game, and will gladly up $39.99 for games like RE: Revelations, KH:DDD, and KI: Uprising. There's a huge market out there, and both Nintendo and Sony know it; problem is that Sony can't seem to penetrate it yet, while Nintendo is.
Actually you have those demographics in correct to some degree. Most dedicated hand-held gaming devices are bought buy Parents for children. The Vita however is a different animal altogether in that you are correct here. Most adults over 18 buy this device mostly due to the price. HOWEVER, that same age demographics are buying more Smart Phones and Tablets for their mobile needs before they buy a Vita based on recent data. Numbers have shown this time and again...and it won't get any easier for the Vita come this holiday season with the iPhone 5, Windows 8 mobile phones and the new crop of Android quad core Smart Phones coming out. The SAME demographic age group that is prone to purchase the Vita are also the same ones who purchase Tablets and Smart Phones. This is just ONE of the reasons the Vita is suffering right now. The average consumer that makes up the bulk of these sales for mobile devices and hand held gaming devices are choosing Tablets and Smart Phones over the Vita and 3DS. Especially the Vita at the $250 price tag.
Maybe Sony have learned that cost is more important than power. Sony should tell themselves, we are going to make the best console possible under 300 dollars, and have a killer launch lineup. Sony should also consider charging for online, just not at the steep prices MS charges.
All the consoles aren doing bad not just Sony. As of right now The PS3 is outselling the Wii and the 360.
no its not
In North America, 360 has outsold the PS3 for about two years now. For the rest of the Universe, the PS3 dominates. That creepy Don Mattrick did say 360 now is top seller. BSChartaz says PS3 leads globally. But who's to say? For all time, they are practically tied. Let's leave it at that. Kumbayah. Kumbayah.
the ps3 has been outselling the 360 on a weekly basis since 2010, and has just starting outselling the wii since 2012
Sony's troubles started from the rise of Samsung electronics. I highly doubt the gaming division is going anywhere.
Cause Sony is the only company losing money now a days right, or the only gaming company losing money, oh wait they all are.
The way i see it,a lot of arm chair analysts on the 360 and nintendo band wagon want to see Sony fail.The reality is that the ps3 will surpass the 360,nintendo will still cater to the casuals.In the end Sony will still do what it's done since it has entered the gaming world,"Every Thing"
Same old shit since 5 years now. Every month there's an article trying to prove how Sony will fail... It won't prevent me from buying a PS4...
after the latest earnings release the stock dropped 11% and recovered 5% the next day. Anyway, Sonys stock is down to $11.6 coming from $12.44 at the start of this week. Since Kaz became CEO, the stock priced crashed 40% (!!!). I don't get the optimistic people here that Kaz will turn it around. And don't be a fool to think this won't affect the PS4. Yes, there will be a PS4, but it would have been a different console if Sony had yearly profits and much more money to spend. The PS3 lost 3 billion USD in its first 2 years. That is 30% of Sonys market cap today. They just can't afford a console that takes losses at first and gets its money in the following years with software and license revenue. It did not work with the PS3 at all (The PS3 will never recoup the losses from 2005 (R&D) - 2010) so it is a risky strategy. SOny will probably play it save and go for a console with lower specs that is profitable day one.
I already chucked my PS3 into the closet. Their exclusive games got old fast and Twisted Metal was actually crappy. I don't care at all about anything by David cage or the All Stars game. I am tired of God of War. I am only mildly interested in The Last of Us. I'm kind of sorry that I bothered to buy and play Resistance 3 and inFamous 2 and I bought them like eight months late. I actually played the stand alone inFamous vampire expansion thing before I bought Infamous 2. So I'm done with PS3 this gen. And I'm not really that interested in 360 either though I do what to see what Halo 4 is like. Mostly I'll be playing 3rd party stuff on the 360 because my friends have 360's. I look forward to Darksiders 2, Borderlands 2, Dishonored, Transformers Fall of Cybertron (sort of, I'M honestly starting to have some doubts about his one) this year. Other than that and Torchlight 2 I hardly even care about games right now. I guess next year I'd like to try the dead Space 3 and Bioshock infinite. I think I've had enough of Gears of War so I doubt I'll bother to get Judgment. This gen is almost over. It's time to quit with the stupid triumphalist BS about Sony Quality or MS winning. It's all but over now. Get over it already. These are old creaky machines now. They don't impress anyone but clueless idiots who can't take off their goggles.
Lmao at the disagrees, guy have his opinion. Glad to see the Sony fanboys in full force here. Before you call me a fanboy I own all 3 consoles, so STFU. I play games not console wars. I could care less who sells more. It's about the games for me and will always be. Now disagree away, I'll cry later about it.
Vita is flop for a number of reasons. Its too expensive. Its a bit too big to carry in your pocket. The games are basic PS3 ports. There's no innovation, no gimmick like the 3DS has to shift units and create interesting games. I don't think the masses want to play console games on the go. They favour shorter, pick-up-and-play experiences. Vita is an anchor dragging the 'Playstation Family' down.
Just like they said the PSP was at first, and it has been a success. The Vita hasn't even had a holiday season for Pete's sake.
The Playstation brand isn't enough to carry the whole company guys. In this day and age you have to be more than a one trick pony. They are in bad shape right now. If they get burned on the ps4 they may not survive. The vita is dead on arrival so they can't take over the handheld market and how much domination can they get in the console business with competition from Nintendo and MS. Its too much competition just to say that things will be alright with a few cuts here and there. You got to have products that people want. Sony makes damn good products for the most part but I don't think people appreciate quality anymore. Then you have the fact that the competition has stepped their game us as well. The ps3 is technically superior to the 360 no one can deny that but that things that the 360/microsoft can do they do better than sony. As far as their games go they make average to good games. In my opinion they have failed to make that killer ap this gen. That game that you flat out have to buy. They don't seem to have that game on the horizon either. None of their upcoming exclusive games have that it factor. We hardcore gamers are in the minority so appeasing us won't pay the bills. N4g isn't the world. while i do prefer my 360 over my ps3 I don't want Sony to disappear but its going to be hard for them as a company moving forward. As much as I love my 360 I don't ever want Micro$oft to be the only game in town. They would probably charge you 5 microsoft points just to turn your Xbox 720 on!!! LOL!!
Man...looks like consoles are on their way out guys. I don't know...I love consoles. But it looks like we are all headed to either steam or streaming services, which are great... just unexpected. I'm PANICKING OUT HERE dang it!!! Someone give me some words of ENCOURAGEMENT!!!
not really a big deal as we approach the point where any device is good enough for gaming, PlayStation will turn into a service as well I think.