Sony cuts mfg cost of PS3, profitability soon?
mod
http://www.pcworld.com/article/156138/sony_cuts_playstation_3_component_costs_by_35_percent.html
Sounds like they are closing the gap.
Sounds like they are closing the gap.
Replies
I really believe that Sony needs to rethink the hardware on the PS3. They went balls-out on making their system the hottest piece of tech on the market. But their devotion to engineering is costing them. In the long run, the investment might pay off. But in the short term, they are losing marketshare, and perhaps more importantly, mindshare.
The PS3 needs to be a little closer to where the PS2 used to be. And unfortunately, there's only one way to get there, and that's lowering the price of the system. But they can't really lower the price of the system without taking a financial bath. There's only one real solution that I can think of.
PS3 Slim.
Redesign a model of the PS3 that is scaled back in every way possible. Shave off the pounds as much as they can. Do whatever it takes to lower the price of the tech they are producing. The real challenge is that they can't compromise the core technological strengths of the PS3. Doing that would piss off developers royally, a consequence Sony can't even consider at the moment. The most obvious casualty would be the hard drive. Throw a 20, or even a 10 gig drive in there. That's enough to cover most game installs and patches. 80 gigs is just excessive for today's budget-conscious consumers.
(Sigh) I don't know. The more I think about it, the more I realize that everything I like about the PS3 is tied in with its copious technology. Aside from the hard drive, it's hard to think of any areas where they could really trim the fat.
fixed.
Kain: Sounds like you want them to make a 360 version of the PS3. Cheaply made easily broken parts, with some essential parts missing. If Microsoft can profit from broken hardware, so can they. Honestly, I think both consoles have enough versions already.
Worthwhile exclusives would be the key.
Needlesly nasty, no? Shouldn't you be saying that about Microsoft, whose every third console will red-ring sometime in it's life time?
I bought a PS3 in September (a year after I bought myself an awesome 360 elite), and considering it was half the price of a blu-ray standalone player, has great games on it (not so many exclusives, admittedly) I think it was a good purchase to make. One thing I HATE about the PS3 is that installing crap. Even on multi-platform titles! If 360 can run it off the disc, the PS3 should be able to as well. Pull the finger out Sony! (At least Fallout doesn't require an install and still loads way faster that Tomb Raider; which also doesn't require an install)
The 360 gets more exclusives because it was first out the gate and has a humungous user base; and it gets exclusive DLC because it is made by Microsoft who have a limitless supply of the green stuff.
Good exclusives on the PS3 so far and on the horizon (Don't bother making a 360 one, we know them; and nobody here is saying 360 isn't great)
Little Big Planet
The Resistance Games
Killzone 2 in February
I know I'm missing a few...feel free to add.
I'm not trying to rip on the PS3 itself. I have a PS3, I use it regularly, and I've been quite happy with it. For a tech-head like me, who loves exploring advanced hardware and figuring out how to use all of its features, the PS3 is great. But I'm a market minority. Gaming has spread to the mainstream, and that's where the moneys going to be made. If you are producing a console like the PS3, that loses copious amounts of dosh on the hardware, you need market penetration to make up the difference in software sales and software liscencing.
So the issue still remains, how does Sony manage to get the PS3 in more consumers hands? The system has exclusives. And one of the best ways to attract more third-party developers would be to give them a larger market to sell to. More people would be willing to buy the PS3 if it was cheaper. A stripped-down version of the PS3 would be the best solution for that.
But like I said, that would be a difficult solution to manage. The things that appeal to me the most about the PS3 rely on its excessive power and over-engineerd nature. A stripped-down version of the PS3 would be lacking those things, and at some point compromises would have to be made with the hardware that would effect software development. And that would be just disastrous for developer relations, which Sony can't afford to damage at this point.
Microsoft is doing a lot better right now because they designed a system that lends itself well to re-packaging and re-configuring for different pricing tiers. They have the cheapest system on the market, and this is going to benefit their hardware sales considerably for the next couple of years. Because of the PS3's nature, it is going to take them a lot longer to reach that point.
they need quite a few good exclusive titles in all areas of gaming, some with a more universal appeal, too in my opinion to make this platform work. not many outside the hardcore user base will pay all that money to run one or two games they can't get on the xbox.
for now it feels like xbox has taken the new-gen position that PS2 had last round - the console that almost always gets a port and more often than not is the main SKU. heck, even the japanese are developing for it...!
Yes and no. In terms of mindshare, you are very close. But in terms of the overall market, Nintendo has mixed things up too much for a parallel to be drawn. For high-end development, the 360 has usurped the PS2's position as lead SKU. But ports down to the Wii have to be re-engineerd, both in terms of graphics and controls. And the Wii is clearly taking over the PS2's position as the market sales leader.
On the other hand, Microsoft has been doing a stellar job with 3rd party support, and it looks like this will only improve going into 2009. At this point, there really isn't any chance that the PS3 will follow in its predecessors footsteps. Sony will just have to resign themselves to this and formulate a strategy for the system that will work out in the long-term. The PS3 really does have enough of a technical advantage that it will be a viable platform for many years to come. The longer they ride it, the better their profit margin on the system will become, and the better the advantage for developers.
I guess the real answer is for them to just not jump the gun on the PS4. They need to be less reactionary to their competitor's announcements. When Micrsofto announces the next XBox, Sony needs to hold their tounges and just focus on developing and releasing kick-ass PS3 games.
I...did.
And the emphasis on worthwhile exclusives is WORTHWHILE. For me, the non-PS3 owner, there are only two reasons to consider owning a PS3.
Little Big Planet
Metal Gear Solid
And maybe one of the MotorStorms...maybe.
It would be nice to get the perspective of an actual corporate accountant on these kinds of stats.
The Valkyria Chronicles demo was pretty fun, I may pick that up in a few weeks and it's gotten decent reviews (and dismal sales)
but mostly my PS3 is the disappointment box
Yes, Ninjas. This is entirely understandable. I picked up my PS3 because I specifically wanted the Metal Gear Solid bundle. (and I was able to get a $100 gift card at Walmart) But let's just approach this hypothetically.
If there was a version of the PS3 on shelves right now, that could play Little Big Planet and Metal Gear Solid 4, and it cost $200 - $300 dollars, would you be more likely to buy it in order to play those games? I'm betting that you would consider the purchase more seriously if the price of the hardware was more affordable.
Great games help, no one's questioning that. But with the prices of consoles being as high as they currently are, the mainstream audience that gaming has managed to expand to isn't going to be as swayed by standout titles. You have only to look at game sales on the Wii to confirm this. The audience that is buying into the Wii is proving to have consistently low standards in terms of game quality. Crappy games on the Wii are selling millions of copies, just because they are cheap and accessible. With this kind of audience, must-have titles aren't nearly as significant.
100% agree with you Richard. I actually think 1up FM or 1up Yours podcast talk a bit about this (I think its 1up FM). Its a very interesting subject... but is it to soon to release a newer model? I thought the PS2 slim came out much later.
The fact is they still need good games, and exclusives are a good thing... but are we not getting to the point where production costs are just to high to focus on one console... hopefully making profit, I mean only the big AAA games have a chance, and even those people are taking risks. I think at this point if a developer doesn't have a solid franchise established already, would it not be best to step away from exclusivity and just farm it out to all consoles?
Should Sony now be looking to the future, and start developing PS4 sooner then later (take the 360 route this time)... maybe they can get a head start, and learn from their many mistakes from this current gen?
While everyone says to just get a ps2, I am also interested in the ps3 cause I can see some solid games for the system I would like to play. I don't see why I should have 3 systems hooked up to the tv when I could easily just have two. I would prefer to just have a ps3 and a 360 hooked up.
I really don't like the fact that Sony has decided to cut features out of the system. With the 360 I've not been confused about what the system was capable of. While the 360 has had quite a few sku's and they added hdmi part way into the life of the system they're not taken away features. The wikipedia article showing all the configurations for the ps3 can be fairly confusing to someone who didn't know the old 80gb with ps2 support is now the old 40gb system with a larger hd. the 160gb is the same.
http://en.wikipedia.org/wiki/Ps3#Retail_configurations
The smaller hd size, mentioned by Richard Kain, I don't agree with since quite a few ps3 games either require installs or have optional installs. While not huge installs having a decent collection can mean having a fair number of installs. I would rather just be able to throw in a game and play instead of waiting a bit for a game to install again.
As for the 360 deaths, it's honestly not nearly as bad as everyone is still making it out to be.
No. Because, and for the third time, it needs MORE worthwhile exclusives. Even if it's in the same price range of the Wii and Xbox Arcade 20 GB, it needs more games that tell me the console is worth buying. And yes, the removal of PS2 backwards compatibility is a major factor as well. I still enjoy Gamecube games on the Wii. It's likely I'll be buying many old Xbox titles on sale to play on the 360. I still play many PS2 games, even as my PS2 is falling apart, because they're such a great deal these days.
Here's an idea. Put back the backwards compatibiliy. Take out the Blu-ray player. Add 5 more great games to the exclusive list...then it's a consideration.
I doubt that. There are quite a few games for the original XBox that simply don't work on the 360. And on top of that, I've always found the 360's emulation to be spotty. (slowdowns, glitchy annoyances that make games harder or less enjoyable to play) I keep my original XBox hooked up for such titles, despite owning a 360.
But I can sympathize with your desire for backwards compatability. I snagged the last PS3 model to feature BC, and I'm glad I did. The BC on the PS3 is actually quite good, even the software-based version. Games on it run smoothly, and the upscaling it uses is surprisingly good. I'm still not clear on why Sony nixed that feature. It does add to the value of the system.
Unfortunately, I don't think that is an option at this point. They've saddled the system with the Blu-Ray format, and current games are all required to use Blu-Ray. Changing over at this point would invalidate their entire catalogue of titles. Again, this would piss off developers royally, something Sony needs to avoid right now. I won't argue that requiring the format was a mistake from the beginning. Most people are seeing digital distribution of media as the future, and discs as a dying format for movies and games.
No...you said you are glad that SONY is losing money. Which was spitefull, considering all they've done is not developed enough exclusives, whereas Microsoft has cost consumers countless money, time, etc because of shoddy manufacturing.
And MGS4 sucks BTW. The story is appaling. Sorry to have to break it to ya.
And get rid of the blu-ray player? The games already released are on blu-ray format LOL. What age are you mate, honestly? Not trying to be nasty, but you do come across as a teenager who is trying to be smart but isn't in possesion of a lot of facts and has been caught out (by people who ARE in possesion of some facts)
As for the price I didnt think it was that expensive yes it cost more relative to consoles of years past, and Im happy that they hopefully will start making a profit on them, its a damn nice piece of kit.
I didnt think of it much as a console when I bought it,getting web and blueray were big plusses for me.
Been playing Fallout 3 on mine and wow awesome game and look pretty too.
So if someone is young ur saying he is less important? MGS4 doesnt suck, ofcourse everyone can have their opinion about it (yours is valid) and i know some that dont like it and many people who do like it. Maybe Elysium is wrong about the blueray (he said he is not a owner of a PS3), but u dont need to be a prejudice dick detective. Elysium never states he knows all the answers thats why this is a forum and he doesnt work for Sony. We are here to discuss stuff, it is not a forum made to pick on people but to share our thoughts. Blenderhead Richard Kain told the facts, Elysium doesnt need to be told twice. Plus there is no age limit here...
But with the PS3, they really went back to the drawing board and got the design right. The thing runs great, it plays games great, it has more features and abilities than any other system on the market, and it is far more flexible than either of its predecessors. This is what the Playstation was always meant to be.
But now that they've made this super-system, they can't sell it because the darn thing is so bloody expensive to produce, and there is a minimum that they have to charge for it. So they arguably have the best engineered video game system in history, but they are still falling into last place.
It's worth noting that the PS3 slim idea is actually quite sound. The primary reason for system redesigns is to streamline the system, and as a result reduce production costs. Since that is exactly what Sony needs right now, I can only imagine it is what their R&D department is pushing for.
Blu-ray.. meh.. I'll care about that in 3 years when I can afford a good HD TV and the next gen systems start looming on the horizon.
I borrowed the PS2 from my brother the other day and some games I thought me and my roommates and friends might want to play. OMG... I did not realise just how many PS2 games my brother and I have bought over the years, not to mention the PS1 games... so yeah, BC is important to me.
I'm not really concerned about missing out on Bluray at the moment either. I don't have a big HD tv. I play my games on a 22" Samsung monitor, which is great for gaming but I'm not going to watch movies like that.
The same as many others have said - I'd like to have one, but I'll be damned if I'm going to spend THAT much!
You missed the point by a mile. The age part was irrelevant, proclemation with a lack of tangible information was what was relevant. In my experience, this can sometimes be attributed to the poster being, well...a kid. I was the same
Well, let me end your parenting parade.
I've said I'm not a PS3 owner...meaning, my opinion of whether or not a PS3 is worth buying has more weight than someone who has already given their money to Sony, as I'm the statistic they're trying miserably to satisfy. And my knowledge of what it can do may be lacking.
I never said I'm glad Sony is losing money. I said I'm glad they're losing LESS money. And it was sarcasm, because I think it's silly to discuss Sony's profits, or lack of. I was hoping the topic was referring to console price cuts. You have so far entirely misinterpreted at least two statements I've made in this single thread.
The Metal Gear Solid series is more of an acquired taste. Long back story, lots of inside jokes. It's not for everyone. I do enjoy playing MGS3. Too bad the PS3 can't.
You're right. I didn't factor in that PS3 games are on Blu-ray discs. I'm still of the belief that a game that would take 25-50 GB of storage is ridiculous. And it may play some role in the lack of variety in the titles released for it. There should be the option to play games on standard discs. I have an HDTV, but don't really care for Blu-ray. It doesn't make movies like Transformers less shitty. I'm alright with steaming and downloading movies. I enjoy Netflix. If Sony wants to save money, they can start by not heavily forcing their formats down everyone's throat. Or stop altering the Blu-ray standard so people aren't throwing away overpriced players that are now obsolete. Unless they have already, I could be misinformed.
I'm old enough to not make personal insults to others I haven't met on an online forum. I make a strong effort not to. Proof reading my posts before I reply. Making quick edits if I need to. But, you're an exception. You're a recently registered noob, who obviously uses Blender. That makes you the up-and-coming. Where as I've been around the community for many years (versions of the forum prior to 2004), and I have used various software that includes a user interface...so there is no advice you have to give me. See, childish. But I'm sure you'll work it out. Until then, learn to read.
I'm 26.
in terms of worthwhile exclusives, it really looks like 2009 will be sick for ps3 with Uncharted 2, Killzone 2, God of War 3, FFXIII / Versus, and a bunch more
Ok ok but what I mean is that this is (or should be) a forum where people can post their opinions and its fine to state why you think someones idea is not the best one but common, in this case Richard Kain just did that before you. I see your reason now and I notice I might have over reacted.
Cody next Final Fantasy will be on xbox360 also, although its quite something to look forward for in any case. :P
Gametrailers voted PS3 the console of the year, do other sites give out such award as well? never heard about it before.
Anways I wish a happy new year to you all!
Yes you did! LOL
And I wasn't trying to insult anyone by calling them young, just trying to help along a poster who I thought was young not alianate himself on a board by posting silly comments that's all.
My input on the thread topic is about done here. Happy New Years everyone!
But how less entertaining would it be if we didn't have thread drama?
And the first post was never edited. And that is all.
I've done Sony's job by marketing the PS3 to friends as the best BluRay Player on the market, one that will software and firmware update on its own.
They need to stop selling the PS3 as a gaming console, because it isn't better than the 360 (you could argue it's equal, but NOT better). I've convinced 4 people in the last 3 weeks to buy BluRay simply for Planet Earth.
Worthwhile PS3 exclusives on the other hand included. MGS4, GT5 Prolog, LBP, Uncharted, Ratchet and Clank, Resistance 1/2, Motorstorm, Warhawk, Valkyrie Chronicles.
Now obviously no one will ever really agree on what is a worthwhile game for them compared to everyone else but its pretty clear that Xbox lacks baddly in the ways of exclusive games. Pretty much everything on Xbox that isnt complete shovelware can be gotten on the PC or PS3
With the fact that the PS3 is a more powerful system, a Blu Ray player, free online, cant Red Ring on you and has a larger list of exclusive games its an amazement that anyone would pick up a 360 if they wernt a die hard Halo junkie.
Bu Sony completely fails at the marketing game. Such terrible ad, then again those open headed Xbox people ads this holiday were pertty terrible too.