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PlayStation punctured: Sony's games business deflates again

GI - As Vita posts another awful quarter and PlayStation slips into loss, how does the games business hang on?

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tokugawa1960d ago ShowReplies(3)
-Mezzo-1960d ago

If Sony leaves Console business, i leave with it.

I'll move to PC Gaming.

TronEOL1960d ago (Edited 1960d ago )

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.

BattleAxe1959d ago

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.

Soldierone1959d ago

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.

Army_of_Darkness1959d ago (Edited 1959d ago )

"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...

fr0sty1959d ago

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.

ShinMaster1959d ago (Edited 1959d ago )

Businesses fluctuate. The world keeps spinning.
http://i50.tinypic.com/55fi...
Sony isn't going anywhere!

Anyway, back to gaming :)

bintarok1959d ago

IF so, i would accept the truth wholeheartedly. Not crying a river. Good luck for them.

linkratos1959d ago

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.

+ Show (4) more repliesLast reply 1959d ago
Unexpecta1960d ago

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.

theWB271960d ago

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.

Christopher1960d ago

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.

-Mezzo-1960d ago

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.

nukeitall1960d ago

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!

BitbyDeath1959d ago

@nukeitall, not sure why you got so many disagrees.

I think it'd be awesome if Atari could make a huge comeback.

nukeitall1959d ago

@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.

+ Show (1) more replyLast reply 1959d ago
shutUpAndTakeMyMoney1960d ago

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.

OldSnakePS31959d ago (Edited 1959d ago )

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

nnotdead1959d ago

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.

Theyellowflash301959d ago

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.

showtimefolks1959d ago (Edited 1959d ago )

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

Statix1959d ago

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.

Theyellowflash301959d ago

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

linkratos1959d ago

"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.

ChickeyCantor1959d ago

Then what is stopping you now?
It's not like Sonys exclusives will end up on PC.

Crazyglues1959d ago (Edited 1959d ago )

That picture for this story is priceless... LoL

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mboojigga1959d ago

So what you are saying is that you will support Microsoft on the PC?

Hanuman1959d ago

Sony leaving the market would be a devastating move, but it would also give room for companies like Apple and Sega to step in.

shackdaddy1952d ago

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.

+ Show (9) more repliesLast reply 1952d ago
Ryo-Hazuki1960d ago (Edited 1960d ago )

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

JBSleek1960d ago

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.

guitar_nerd_231960d ago

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.

DigitalAnalog1959d ago

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.

ALLWRONG1959d ago (Edited 1959d ago )

guitar_nerd_23 he got the disagrees because he made a good point, here.

dcbronco1959d ago

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.

+ Show (1) more replyLast reply 1959d ago
mboojigga1959d ago

@ 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.

SilentNegotiator1960d ago

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.

Anon19741960d ago (Edited 1960d ago )

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.

givemeshelter1959d ago

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.

st-BiOZ1959d ago (Edited 1959d ago )

hell yea,
that sh*t's too damn expensive.

ame221960d ago

This is a duplicate.

Let's not pretend that the reported losses are gonna stop Sony from releasing the PS4.

Old McGroin1959d ago

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.