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Is Sony's 10 Year Plan Still Viable?

PSP World Writes:

"The ten-year plan is to Jack Tretton what tear gas is to the Iranian Government, or what heterosexual marriage is to Sarah Palin. In other words, it's an ideology, an organizing principle. The president of Sony Computer Entertainment has faced many challenges to his bold strategy, with some of the harshest criticisms coming just this past week. First, Activision CEO Bobby Kotick came out publicly and stated that his company would stop making games for the Playstation 3 if Sony did not cut prices and sell more hardware. Then, in slightly more polite (and characteristically Japanese) terms, Koei president Kenji Matsubara asked if Sony would "please lower the price" of the PS3. It's almost like Tretton came home from a night of debauchery to find himself in the middle of an intervention."

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clinker3025d ago

On one hand, the poor economy means that current-gen hardware MIGHT just last on the market for 10 years. On the other hand, if Sony contintues to sacrifice immediate sales by keeping their price too high, the effect after 10 years will be that they are in a weaker position vis a vis marketshare.

Fast and flexible seems like a better strategy than long and arduous.

Lfmesquite3025d ago (Edited 3024d ago )

The article is asking about the 10 year plan being viable or not, and then all they are talking about is a price cut.

They need a price drop right now, no doubt about that. 10 Year plan or not.

PS3 won't be around 10 years if it doesn't start selling better.

Natsu X FairyTail3025d ago

yeah it's still Viable . PS2 is on its 9th Year.

green3025d ago (Edited 3025d ago )

The life span of any device is dependant on how fast and steady it's capable of raking in the $$$$.So no profit=short life span (xbox,dreamcast etc), Long lifespan=(PS1,PS2). So if PS3 rakes in the $$$ for Sony,then their 10 year plan is viable but if not, then it sure as hell won't happen.

PotNoodle3025d ago

No, because continue selling the PS3 like they did with the PS2 for 10 years means that it become very profitable at one point and will help them support a new console.

Which is exactly what they did with the PS2, they used its final years to balance out the profit loss on R&D and production costs.

Salvadore3025d ago

While Sony aims to support the PS3 with a 10 year life cycle, that doesn't mean that another system won't launch. Sony are going to release a new console, but it will likely co-exist with the PS3 as we are currently seeing with the PS2.

MysticStrummer3025d ago (Edited 3025d ago )

I think it's funny that the people who write articles like this don't know that. I think they do know it actually, but they pretend not to. Whether this is because of potential hits to their site, brought in by an anti-Sony headline, or because they just don't like Sony and want to undermine them is the question. Since this one is from a PSP site, I will assume it's not blatant anti-Sonyism. I just can't believe that they don't know how ridiculous their article's premise is. Of course there will be a PS4 before the ten years is up, but the PS3 won't go away.

clinker3025d ago

I think the point of this article is that "10 Year Plan" for Jack Tretton means he won't drop the price no matter hom much pressure, because he is looking at a longer time frame for success.

darthv723025d ago

I understand it. If you look at the longevity of the PS2, it took quite a while for it to get a price cut. Mainly due to the popularity of the PS brand and advanced nature (for the time) making it viable points for Sony to continue asking consumers to purchase their product regardless of the price point.

This gen it isnt working out the same. At least not in the context of last gen. There is a viable competition now where as last gen there wasnt a direct competitor in the sense of graphical power for the buck.

Plus, the idea that there wont be anything new until the 10 years is up is just some people misunderstanding how the previous 10 year cycles played out. Sony is smart enough to see how things are going. If they dont like the current status of sales they will take steps to adjust (they already had...twice within 1 year).

Who could push them to lower their prices (and hopefully not standards) would be Msft. Not the game companies but direct competition itself. Nintendo is in a class by themselves for the casual market. MS could cut production costs and revise their hardware (as rumored to be doing) which would be a blow to sony forcing their hand to cut costs.

All I know is this gen is very much playing out like the early 90's of Nintendo and Sega. Very similar parallels but with a twist. The internet is providing us with up to the minute stats on everything which wasnt as available then.

clinker3025d ago

The PS2 had virtual total market dominance. Microsoft's Xbox was a late comer, and not a particularly strong competitor. In this generation, I don't think that a "10 year plan" is a particularly smart outlook. Since they face so much competition, they should be more focused on the "here and now" in order to fight off incremental gains by Microsoft and even Nintendo.

We are looking at a PS3 with a fraction of the total market penetration of the PS2 if this carries on.

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