TGS: Sony's snoozer, judge for yourself
by Christopher Grant 
{ Sep 23rd 2006 at 4:25AM }
Apparently our transcription, with requisite PictoChat commentary, didn't convince everyone that Ken Kutaragi's keynote, titled "PS3 Creating Next Generation of Computer Entertainment," was a total snoozefest. So we followed up with an editorial explaining why, yet some remained unconvinced. So, in an attempt to remove ourselves from this equation, we present the translated audio from the event (.mp3) for your listening pleasure.* If you manage to make it through the whole thing, what do you think? What else, besides Killzone 2, was missing? Where was the PSP?
*We'd love to upload a cleaner sound file if any audio-inclined reader wants to clean it up.
See also:
Sony's trainwreck of a keynote
Blogging Ken Kutaragi's PS3 keynote
Reader Comments (Page 1 of 1)
Seth @ Sep 23rd 2006 4:55AM
ZzZzZzZz.
kayzai @ Sep 23rd 2006 6:11AM
Sooner or later, PSP owner will realise that the PSP is not Sony;s priority.
Sony is more interested in selling multimedia (movies, audio) and the UMD that was meant to be the trojan-horse for these has practically BOMBED.
The PS3 is what Sony will be focussing on (Bluray is the next UMD). And Bluray is more important to Sony as High def. video medium than anything else.
Sony needs to start talking about GAMES, GAMES, GAMES!!!
ico @ Sep 23rd 2006 6:30AM
so what do we make from all of this?
the price change does not indicate much self confidence on sonys part, and the unorganized impression they are giving off at tgs is also something that does not suggest a company ready for its biggest adventure.
their behavior seems like nervousness on a corporate level...is this acceptable? do they not believe in their own product? whats going on?
subnet6 @ Sep 23rd 2006 7:47AM
"the price change does not indicate much self confidence on sonys part, "
Apparently you have missed some illuminating posts earlier in the month concerning this very topic. The reality is that Sony lowering the price at the last second shows an INCREASE in confidence in their product. Don't you see? Subsidizing your console shows you KNOW it will sell. What are you thinking? Now, if they were truly LOSING confidence, they would be RAISING the price. Get it? Yeah, me neither.
GamerG @ Sep 23rd 2006 8:02AM
How is it posasible to make to make talking about your new upcoming console, and especially the PS3, sound so boring?!!
striderhayasa @ Sep 23rd 2006 7:57AM
but if they have that much confidence then the price drop should be worldwide. Is it? of course not. I think they're nervous as all get out because of the loses that are going to be tallied up after the first year of sales.
It's ingenious,
Build a device that costs $800 to make, sell it for $600, how much money do you make? See it's awesome.
VerdigriS @ Sep 23rd 2006 7:59AM
to subnet6
that was the most brilliant comment I've read on these here posts in a loooong time...
you deserve a star for that one... from Vlad himself...
I for one am agreeing with you. They lowered the price to make everyone think, "Hey! They are going to be losing even MORE money on this thing, so they must really be making a kick-ass machine! So what if the Wii is hella cheaper, they are making money off of it, therefore showing that the thing sucks and they don't want to lose any money, even though they are ONLY in the gaming business and don't have any other assets to fall back on to make up for the lost profits on the machine."
ShockWave @ Sep 23rd 2006 8:08AM
PS3!! *falls from chair* zzzzzZZZZZZZzzzzZZZ.......
ShockWave @ Sep 23rd 2006 8:14AM
#4
Lowering the price of a product only means one thing , the product isnt selling or wont sell very good when it launches , so what do you do , you lower the price so it can at least have a chance , but i think it doesnt have a chance, PS3 is too expensive with uneeded media format. the only thing is good is for CGI! more space for CGI!
ico @ Sep 23rd 2006 8:39AM
subnet6 that would be their rationale im sure, yet their surface behavior points to panic in the house...
anyway, i still dont think the ps3 will fail, and sony will go bankrupt and die or something. i for one think that $600 is not that much for enough people so that sony makes a profit. 16 year old kids spend $200 on a
ico @ Sep 23rd 2006 8:40AM
subnet6 that would be their rationale im sure, yet their surface behavior points to panic in the house...
anyway, i hope they dont lose it in their nervousness. i for one think that $600 is not that much for enough people so that sony makes a profit. and i was quite impressed by the Afrika demo, i know the gameplay eludes us at the moment, but as a demonstration of what ps3 can do graphically, i havent seen anything close to that. i would almost say they have a better product on their hands that what they currently seem to be thinking.
mark @ Sep 23rd 2006 9:01AM
subnet...
Your logic makes no sense. Corporations lower prices due to market changes and stresses, not because they "Beleive in the product". If they beleived the product was going to sell, the price would have stayed the same, or maybe go UP. Why would they lower the price because "They beleive in the product", and then loose even more money per sale? That is dumb logic. The reason they lowered it is because the market isn't ready for a $600 game console, and they only realised it now. It shows desperation to sell consoles so they can bring in royalties from 3rd party software.
Every business journalist is saying that investors in Sony are surprised and disappointed and woried for the company. Business journalists are saying that many investors are woried about how Sony is doing their market research.
Lowering the price at the last minute shows that they aren't up to par with their market research.
Yasuda Asset Management said:
"Sentiment might change if the product sold well as a result of this. But it is still received negatively because the company changed its mind after comparing its price with others."
So, they will probably sell more units as a result of this, but to investors, it looks like a stupid move, because they will be loosing even more money on a console that hasn't been proven yet.
They obviously lowered the price in response to the competition having much lower prices...And it could also be because of a survey done in Japan which showed that nearly everyone thought the price of the PS3 was out of reach.
This may be negative towards Sony's image, but that is only in front of its investors who depend on Sony making a good buck...But this will probably convince more customers(in Japan) to buy the product at least.
Ch3 @ Sep 23rd 2006 9:04AM
Instead of joining in the discussion, I'm just going to take a nap.
subnet6 @ Sep 23rd 2006 9:08AM
Hey Mark,
Loved your post. In fact, I liked it so much I read it ALL.
Please do me the same courtesy, paying special attention to the very last line.
mark @ Sep 23rd 2006 9:20AM
subnet6,
My apologies. I missed that last sentence.
Regards,
Mark
subnet6 @ Sep 23rd 2006 9:26AM
Mark,
No apologies necessary. Besides, your post shows you and I are in complete agreement. I'm just funnier. ;)
Tehpyro @ Sep 23rd 2006 2:28PM
wow... that was short... no not the keynote... the amout of time I cared... I drifted off somewhere after don't take photos
Knoxximus @ Sep 23rd 2006 9:39AM
Natch
MaulerX @ Sep 24th 2006 1:46AM
The price drop is only for the 20GB model and only in Japan. This is nothing more than a gimmick. They already announced that (at least here in the states) the initial shipment will be 20% 20GB and 80% 60GB.
For all we know they might not ship a single 20GB model at the japanese launch.
munchie @ Sep 23rd 2006 12:13PM
I do believe that many Blog fansites have a slight Bias against Sony...but who the hell doesn't at this point. If you are a gamer ...it's hard not to be frustrated with a company that does so many stupid things to the detrement of gamers.
Forcing formats down our throats and making us pay for it, Pricing their product out of reach of most people that faithfully purchased 2-3 PS2 over the years after they kept breaking down, no solid online play after all these years, and flat out lies and spin so aggregious that no-one believes a damn word out of their mouths anymore.
Sony has made itself the laughing stock of the industry. It's hard for anyone to not feel a little biased against them anymore. If it weren't for the MS and the Xbox...we wouldn't have even seen a PS3 till 2009 or 2010 and it probably wouldn't have had half the features they are compelled to cram in now because of the heated competition with the excellent Xbox and Xbox 360.
They have cause every major blogsite to turn against them. Even PS3fanboy has a majority of negative comments and many negative articles about Sony. They are dropping the ball...over...and over...and over again. Sony is even having trouble meeting it's lowered expectations.
Bias agains Sony bullcrap has only done everyone good. They would never have lowered the price if everyone on the net didn't go ape crap about it. Sony won't get any better if folks just give them a pass and a pat on the back. They worked hard to ruin their reputation...and now they will have to work hard to earn the respect of many an exhausted Sony fanboy.
They can start by:
Giving gamers a controller that they want (with rumble and the Dpad & Stick placement swapped)
A solid unified online network (ex. Xbox Live)
An affordable version of PS3 without Blu-Ray
Competent Media Center functionality
Plays for Sure compatibility
Show us real in-game footage as often as possible and don't ever try and pass CGI for in-game footage ever again.
Talk less and show more gameplay.
Stop hypothethising about the future and show us what you have now...as in Today.
Listen to gamers.
E.J. @ Sep 23rd 2006 12:14PM
Just because they're losing more money on their console doesn't mean that it's a dumb move. If anything, it's a smart move in Japan since Japanese players will sure buy the PS3. Simple demand theory: lower the price, customers are more attracted to it. (And yes, another reason is that they don't like outside products like the 360 because it's unproven. And no, the XBOX was not a proven product in Japan)
Sony DOES have confidence by lowering their price in their home country. More consoles sold = more games sold. Heck, they dropped it low enough so the Japanese consumer can spend what they planned on spending pre-price drop except they can get the console AND a game. In this line of thinking, the more games that are sold, the more money Sony gets back.
O'Neill @ Sep 23rd 2006 12:20PM
Betamax->dead, Minidisk->dead, UMD->dead, so what is next to die? All Sony's own formats (being stupid and not bow their heads to join the standards) were and will be doomed.
Ian @ Sep 23rd 2006 1:04PM
@kayzai
You know I've been a PSP owner since launch and I'd hate to agree with you but I half to. At E3 and TGS the only times they mentioned the PSP were when they were talking about it syncing up with the PS3. I'd love to think Sony still cares about it but its hard to say that. The only thing keeping me from selling my PSP now is that I would get nothing from EB by trading it in (but theres always eBay) and a few games that I'm really looking forward to (Gitaroo Man port, E3, Loco Roco, MGS Portabl Ops, and a few more) and a few games I already have or want(MGA 1 and 2, Lumines, Field Commander, etc.).
The biggest PSP news they've announced this year has nothing to do with PSP games. There was the PS1 emu, the GPS stuff, and the camera. Then theres the countless firmware updates putting down homebrew and enchancing non-gaming features. If Sony was smart enough to realize that portable games shouldn't be 50 bucks and should be more in the 30-35 dollar range I would but a lot more games to. I mean the DS uses expensive cartridges and makes money on them at 30 bucks while the UMD is cheaper to make by a long shot and sells for 50.
Khidr @ Sep 23rd 2006 1:01PM
O'Neill, I know where you're coming from, but in the case of both beta and minidisk, they were fantastic formats... I still use my minidisk player for recording concerts, and beta was a technologically superior product. Granted, they got mired down in some serious litigation with the movie industry over it, but I think the company should be commended for it's innovation in both of those products. Whether they jumped the shark on UMD, and have lost their touch is another story, but it's silly to say they were "stupid" for sticking to their guns on these products.
hemmy @ Sep 23rd 2006 2:04PM
Boring is one thing. Calling the keynote a trainwreck is being disingenuous.
lefty @ Sep 23rd 2006 4:14PM
if u think the price drop was not a sign of weakness and loss confidence u donlt know economics at all. To any one who took half a class that was the stupiudest move. They could have not announced a price at e3 and leave it for tgs.
Price fluctuations are always guided by supply and demand. Next there is competition. If the competition will have a higher supply with similar demand and priced lower ur in problems. Both the 360 and wii are 250 or less now in Japan.
Sony had no confidence they could compete at that price point. If they did they wpould have not changed it as demand would have been fine but in japan ps3 demand is on the slide. Us and europe may be going crazy but many know the wii is actually the hot product in japan. Sony is fighting to keep its product alive in japan.
Yes it was a huge sign of weakness. Belive what u wnat but a last second small drop in one territory. Lol they could have not done anything and looked fine but now they look lost. Why not say componentsa are cheaper and the ps3 will be cheaper world wide.
see my point. there were many way they coud have done something and looked better but instead they want to rape the us, donlt even show up in europe and try to steal some in japan. Basically sony is in trouble
thats even befor u see what they have done to GT-HD
Anonymous @ Sep 23rd 2006 4:31PM
Hey guys, I'm hating Sony because hating Sony is totally cool.
lol@cha @ Sep 23rd 2006 6:14PM
Sony: "If we made our products out of dirt our consumers would buy it simply because they can have our assurance of a quality experience"
SnapperDragon @ Sep 23rd 2006 10:58PM
@20
You don't make sense:
"Just because they're losing more money on their console doesn't mean that it's a dumb move. If anything, it's a smart move in Japan since Japanese players will sure buy the PS3. Simple demand theory: lower the price, customers are more attracted to it. (And yes, another reason is that they don't like outside products like the 360 because it's unproven. And no, the XBOX was not a proven product in Japan)"
Since the Japanese will buy the ps3, and since there is a severe shortage, the price drop makes absolutely no sense. I think it was just a head-fake by Sony to try and get some positive PR. In the end, the price drop is a red-herring; it's not worldwide, and it only affects a very small portion of it's consoles total. THE MOVE IS PR ONLY. And analysts and us bloggers have already seen through it.