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Sony slashing PSP development costs by 80%

Hirai aiming to 'quickly' break-even on PlayStation hardware, looking to double PSN sales
President and CEO of SCEI, Kaz Hirai, knows all too well the financial troubles plaguing Sony's Computer Entertainment division. SCEI posted an operating loss of ¥58.5 billion ($612 million) for fiscal 2008 and Sony admits it doesn't expect to turn a profit any time soon. But that's not going to stop Hirai from trying to change things. No, according to what he told Japan Today, it sounds like he already has a plan: "We need to quickly bring our PlayStation business on a break-even level and later to profitability."
So, he's laid out a set of milestones to accomplish, but how's SCEI going to get there? Hirai said Sony needs "a strategy where buying a [sic] hardware is not the endpoint but instead a starting point that can offer new experiences." This includes, according to him, bringing the PlayStation Network to traditionally non-gaming electronics like televisions and digital cameras -- shades of what Howard Stringer said weeks before. And speaking of PSN, part of the strategy is aimed at boosting digital sales from ¥20 billion ($209 million) last year, to ¥50 billion ($523 million). We guess this means expect a lot more content spread across a lot more devices.
[Via Kotaku]
So, he's laid out a set of milestones to accomplish, but how's SCEI going to get there? Hirai said Sony needs "a strategy where buying a [sic] hardware is not the endpoint but instead a starting point that can offer new experiences." This includes, according to him, bringing the PlayStation Network to traditionally non-gaming electronics like televisions and digital cameras -- shades of what Howard Stringer said weeks before. And speaking of PSN, part of the strategy is aimed at boosting digital sales from ¥20 billion ($209 million) last year, to ¥50 billion ($523 million). We guess this means expect a lot more content spread across a lot more devices.
[Via Kotaku]
Sony reorganizes divisions, has big plans for future

The company is forming two new divisions, one of which will oversee PlayStation and Vaio PCs, while the other takes charge of Bravia TVs, Cybershot digital cameras, and Handycam camcorders. The man in charge of the new PlayStation and Vaio division is none other than Kaz Hirai, head of Sony's gaming business. Heading up the other division will be Hiroshi Yoshioka, who currently oversees Sony's TV business.
On the video game side of things, one of the opportunities presented by this restructuring will be the expansion of PSN beyond the realm of games. Sony wants to offer real network-based content that works across all Sony devices, including its game consoles, Walkman brand, and even the e-Reader. With Sony reorganizing all of its divisions, the prospect of SCE having greater access to other divisions in the company becomes higher. This leaves the possibility of new synergistic ideas within Sony, such as PSN on your cell phone or an MP3 store for PSP. This corporate shuffle will allow Sony to be the "united company" it has been telling us it will be ... for years.
Source - Stringer adds president post in shake-up [Via Edge]
Source - Strategy Analytics: Sony Brings Down Silos To Address Connected Consumer Opportunities
Greenberg blasts back at Hirai for 'longevity' jab
It's charming to see that no matter how high up you are on the gamer ladder, you can still be goaded into a flame war. Sony Computer Entertainment boss Kaz Hirai discounted the Xbox 360's longevity and chance at market dominance yesterday, and now Xbox boss Aaron Greenberg has rushed right into the fray, saying, "That complacent attitude is out of touch with where the industry and consumer is today." You say out of touch, Aaron, we say "big thinking."But, still unmollified, he told The Bitbag, "I can't imagine any scenario where the PS3 can catch up with us. In fact, even if you doubled the current PS3 sales and Xbox 360 remained flat, they couldn't close the gap until 2014."
Meanwhile, Nintendo's Reggie Fils-Amie reportedly made an ear trumpet out of $100 bills and shouted, "What? Can you two speak up?" Though the involved parties emitted nary a chuckle, we thought it was a hoot.
Sony's Kaz Hirai delusional, sees Sony as industry leader, Nintendo no competition
Sony's Kaz Hirai must be off his meds, because he's talking like the PS3 is the one out there selling like hotcakes. Okay, we'll concede that Russia may be more receptive to your products, but on a global scale, the sales figures aren't even comparable. So, what gives?"This is not meant in terms of numbers, or who's got the biggest install base, or who's selling most in any particular week or month, but I'd like to think that we continue official leadership in this industry," he said. Uh, okay, well how would you measure leadership other than success? In terms of Nintendo and their competition with Sony, Kaz had more bizarre things to say. "It's difficult to talk about Nintendo, because we don't look at their console as being a competitor," he said. "They're a different world, and we operate in our world - that's the kind of way I look at things."
Kaz is, uh, quite delusional, if we may say so. Relax, Kaz. At least you have your PS2 sales to lean on. No need to create fantasy worlds for your mind to live in.
[Via Go Nintendo]
Hirai says 360 lacks longevity, won't top PS3
Sony and the PS3 have taken their lumps in the media recently, but leave it to Kaz Hirai to stand by the big black box even in the toughest times: Hirai recently told Official PlayStation Magazine that in order to describe the 360, he needed a single word that meant "lacks longevity."But even that semi-burn wasn't enough to appease the Hiraicane's appetite for destruction. He added, "Unless things go really bad, there's no way that at the end of a life cycle our competition is going to have a higher install base."
OK, so maybe he's not providing any actual justification for his claims, but it's still nice to see that Sony still has fight in them.
Hirai claims Home's release date doesn't really matter

Kaz Hirai isn't rushing Home
Kaz Hirai, Sony Computer Entertainment's "Big Boss," tells MCV that the company is taking its sweet time to make Home. Hirai explains that if Home is good, it won't matter when it launches, "so long as it's in a reasonable time frame." By our estimates, "reasonable time frame" left a while ago on a trip around the world and, if we think in a circular fashion, should bang back around sometime soon.
Hirai goes on to say that if the competitors decide to follow what the company is doing with Home, it would be their prerogative -- we're sure Linden Labs is thinking the same thing about Home. Anyway, Hirai is "confident" that the Home open beat is something that'll "resonate" with consumers.
Hirai goes on to say that if the competitors decide to follow what the company is doing with Home, it would be their prerogative -- we're sure Linden Labs is thinking the same thing about Home. Anyway, Hirai is "confident" that the Home open beat is something that'll "resonate" with consumers.
Kaz Hirai: replicating the PS2 numbers is 'not fun'
Kaz Hirai, the President and CEO of SCEI, told the Financial Times in an interview that some of his ardent goals for the PS3. "It's not fun for me replicating the PS2 numbers. I've seen that movie already, I want to try to see if we can exceed the PS2 numbers after nine years, otherwise why are we in this business?"This echoes earlier comments made by David Reeves, President of SCEE. The PS1's lifetime sales were 102 million units, while PS2's lifetime sales are currently at about 140 million units. The PS3's lifetime sales 20 months into its life is about 13 million, and Sony expects to sell another 10 million units by the end of the current fiscal year.
So ... lofty goals or realistic expectations? Keep this in mind for comparison purposes: by March 2002, about 26 months after the Japanese launch and 19 months after the American launch, Sony shipped 30 million units of the PS2. Read the entire article here.
Kaz Hirai: PS3 operations to turn profit by March '09

Keep in mind "overall" PS3 operations means more than simply selling the console. This means peripherals, software, and downloadable titles will contribute as well. It might not seem like something important to the gamer population, but unless the PS3 can do this, shareholders and other decision-makers may start to question the longevity of the console. We're not worried, though.
Sony: First-party games 'more important' this generation
Sony Computer Entertainment's president of worldwide studios, Shuhei Yoshida, isn't blind to the fact that exclusive games are becoming a rarity these days. In an interview with UK blog ThreeSpeech, the man who replaced Phil Harrison says that, given the trend towards multi-platform releases of major titles, first-party studios and games become "more important" – and that Sony is focusing its assets internally.Yoshida echos much of what we've been hearing from Sony over the past few months with regards to exclusives, stating that "in this generation, it costs much more to develop one product." This results in what he says is "pure economic pressure" that has caused "most of the third parties to move from some exclusive titles to more multi-platform titles."
"Because we know that is the trend, we, as a company, can invest in our first-party studios," says Yoshida, who is relocating to Japan as his division is set to play an ever more integral role in PlayStation's future success. Collaborating more closely with SCEI prez Kaz Hirai, Yoshida says he'll be working "not only to create games, but to participate in the overall direction-setting of our company and our future platforms." Future platforms? Let's just focus on exclusive, first-party titles for those present platforms of yours for now, 'kay?
[Via CVG]
White Knight Story to be told in Sony's fiscal 2008

The other titles listed were already confirmed for FY08: MotorStorm: Pacific Rift (this Fall), Killzone 2 (February 2009), Resistance 2 (this Fall), LittleBigPlanet (October 2008), AFRIKA (August 28 for Japan) and Secret Agent Clank (already out in North America, due next month in Europe).
[Via PS3 Fanboy]
Source (Warning: PDF link)
PS3 movie downloads coming to US this summer
Sony PlayStation executive Kaz Hirai has announced a movie download service is coming to the PS3 this summer for the US, with similar service for Europe and Japan at a later date. Hirai told reporters (via TMC) that more details will be announced month, presumably at E3. The first images of the program were found via Hirai's presentation on the Sony's corporate site (PDF file via PS Beyond).
Sony has already launched a video on demand service with the Korean PS3. The service would compete with, among others, Microsoft's Xbox Live Video Marketplace, which launched November 2006. We can't help but wonder, given rumors and advertisements, if "movie downloads" translates to general video downloads (TV, movie, etc.). We'll find out more next month.
[Via Engadget]
Kaz Hirai: Sony can 're-evaluate' paying for PS3 exclusives
A long time ago, Jack Tretton mentioned that Sony will not pay for PS3 exclusivity in this generation of games. "We have a very different approach to exclusives than some of our competitors. We don't buy exclusivity. We don't fund development. We don't, for the lack of a better term, bribe somebody to only do a game on our platform," he noted. Instead, Sony tries to seduce developers to make better games on the system, and use the appeal of the PS3 hardware to secure exclusives.This strategy has meant a bevy of formerly PS2-exclusive series to become multiplatform successes on Xbox 360 and PC. However, Kaz Hirai told ThreeSpeech "that's something that we can re-evaluate." High-profile exclusives act as differentiating reasons for system purchases. PS3 has a strong first-party line-up, but it will need to pursue third-party exclusives with an even stronger bite. However, with games being so expensive in this generation, such a proposal may be difficult. "It's also something that the publishers need to make a business decision on. Ultimately, it becomes a dialogue – if it makes sense for them to go exclusive, that's a business decision that they need to make. But generally speaking, because of the investments that publishers need to make in this round of hardware, it's going to be more difficult for publishers to make that decision."
Hirai claims when all is said and done, PS3 will reign supreme















