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Sony To Sell Playstation Software And Movies Direct

Sony plans to market PS2 and PS3 games and Blu Ray movies directly from it's own website reducing cost to consumers and generating additional profits for itself. Content can be purchased on physical media or by direct download to your console.

The site which was confirmed today by the Vice President of Technology for Sony Computer Entertainment Europe, Paul Holman will take business away from retailers by allowing consumers to order directly from the site pre packaged content or alternatively download the content directly to a PS3 or PS2.

The move will see Sony save at least 30% of the retail value, of the software being sold, by eliminating both distributor and retail margins. It will also net Sony millions in additional revenue. Currently global console sales are worth an estimated $1.7 billion dollars of which Sony has 48%. If 20% of this market move to online purchases this could represent savings to Sony of more than $150 Million and up to $70 million in movie sales.

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MicroGamer3702d ago (Edited 3701d ago )

can Sony really afford to be cutting the throats of the retailers that they desperately need to get the PS3 (and Blu Ray movie players) into the hands of consumers by undercutting their prices on games and movies??

Dick Jones3701d ago (Edited 3701d ago )

Retailers do not have ground to stand on as far as challenging Sony on this. Gamestops can not afford losing all business from Sony by boycotting or raising a stink; and Best Buys and Walmarts could care less, they make more money off of Sony electronics.

DEIx15x83701d ago

It just means that things will go back to the way they have been for the past year where EB had all the PS games in a corner and the 360 games right out front.

combatant3699d ago

Sony is the pioneer of everything. Every move they make, microsoft is right there, at their backs. Oh wait, i think its reversed. stick your foot in your mouth sony. no one likes an arrogant company.

MicroGamer3698d ago

the last time I checked, Walmart was the world's largest retailer of DVD movies. Sony undercutting them by selling direct, would put a huge crimp in Walmarts profits. Why would Walmart continue to support Sony by selling their products after Sony d1cks them up the wazoo??

+ Show (1) more replyLast reply 3698d ago
calderra3701d ago

Direct downloads are the future of the medium. WTH is the point of the DVD format wars, anyway? Both Microsoft AND Sony already have plans to put movies and games into downloads instead of optical discs.

Save your money- skip the next-gen DVDs and just download your media.

MicroGamer3701d ago

profit margins on hardware for retailers isn't all that much. They also make a higher profit margin selling media for the hardware, the same as the manufacturers do. If you cut out the retailers by selling all the media directly, why are they going to want to sell your hardware??

DC RID3R3701d ago

good point. but thing is tho, the MAJORITY of ms fans are CLUED-up as regards to being online, sony's however aren't!!!

if sony do this i can see them alienating %90 of their fanbase(casual don't kno ish about games gamers!)

U KNO WOT IT IS

blackmagic3701d ago (Edited 3701d ago )

It's true that there's a drive for content download but this is in the interest of the companies not the consumer. It gives them supreme control over the product, the greatest profit margin and a renewable product that they can sell over and over to the same consumer.

What happens when your hard drive craps out? Or you upgrade/trade in your 360/ps3 in a few years? Bye-bye downloaded media. Of course, I'm sure Sony/MS will be more than happy to re-sell you the download for your ps4/720 or whatever other device you buy and they will be more than happy to sell it to you again when that device is replaced etc until the end of time. It's the perfect cage - how to sell a retard the same product (which they have already purchased) multiple times before they die.

I'm really not worried about physical media disappearing anytime soon.

also, I couldn't agree more with #1 - microgamer.

D3acon3699d ago

This will not take off for another 10 or 15 years and dvds, hddvds, bluray, cds will be replaced by digital media download.

I don't imagine the gamestores being too happy about this, it might even put more mark up on games. But then again what do you care when you can buy direct from the manufacturer at 30% and 40% off.

Everybody knows that console makers make their money from software and Sony is losing around $250 per console this is a great move on their part.

+ Show (1) more replyLast reply 3699d ago
BlackCountryBob3701d ago

Just a couple of things,
1:Will the purchases be insured in case of HDD failure.
2:Please tell me that a firmware patch for the PS3 will be released so downloads can happen in the background!
3:Doesn't this make Blu-Ray outdated before its even started selling in any numbers?
4:Why would a 30% discount by buying a digital file be better than the 30% discount I get off RRP by buying the disk copy through Play or amazon which I can also trade in when I am bored with it?
5:Do Sony plan to allow other retailers to sell the digital files so they will not be considered in breech of Antitrust and competition rules?

Just a couple of things that I think need to be ironed out to convince me about the benefit of digital distribution.

Xtrm L1481L1TY3701d ago (Edited 3701d ago )

I actually thought this would be a horrible experience having to download a movie to my 360's HDD but last night I decided to test it out. So I decided to download a movie called 'V for Vendetta' in hi-definition. I thought it would take at least overnight to download then I could watch it the next day. That was not the case. In fact I was watching that movie faster then it would have took me to drive to Blockbuster and rent one, plus it was in glorious hi-definition. What happens is the movie downloads to about 5% then it let's you start watching while it's downloading rest. Who needs blu-ray or HD-DVD? I don't with this feature. However we could use a little more HDD space MS!!!

DJ3701d ago

So this is just a nice new feature. With Blu-ray discs hitting 50 Gigs, there's no 'danger' of people ditching the format unless they start giving us Terabyte hard drives. Either way, that's a crapload of data to download, so 99% of users wouldn't even bother. Downloadable content just refers to the arcade titles and small game content.

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