The good news just keeps rolling in for Sony....

[Dr Mordrid]

They're under investigation by the U.S. Justice Dept. regarding their SRAM sales.

http://apnews.myway.com/article/20061031/D8L3KCAG0.html

[ZokesPro]

Could this be the downfall of Sony? (well NOT just this but the beginning of the end)

[Dr Mordrid]

The beginning started at least as far back as the CD malware scandal as far as the general public goes, but they've had a reputation problem going way back in Japan. Beyond that there has been the CCD fiasco, their "Zippo" batteries, poor image quality in their DVD and HD cams, a cavalier attitude about the IEEE-1394/OHCI standards going back to day one etc. etc. etc. All their s*** is now catching up with them.

As son Chris sez: one or two more like those and they'll be circling the drain

[ZokesPro]

The beginning started at least as far back as the CD malware scandal as far as the general public goes, but they've had a reputation problem going way back in Japan. Beyond that there has been the CCD fiasco, their "Zippo" batteries, poor image quality in their DVD and HD cams, a cavalier attitude about the IEEE-1394/OHCI standards going back to day one etc. etc. etc.

All their s*** is now catching up with them.

How long do you think it'll take until Sony is completely out of the game/market?

[Dr Mordrid]

Depends on how long the investors are willing to put up with this kind of stuff.

They can survive longer than most companies under similar circumstances because of the value of their media catalog, but once the stockolders turn on management things will get nasty fast.

IMO the situation could turn real ugly if PS3 sales don't meet market analysts expectations.

[ZokesPro]

There's one thing I don't understand. The PS3 will be sold at a loss. How can one survive this way?

[Dr Mordrid]

By charging ridiculous licensing/SDK fees to developers and $60+ for games. The box is just a loss leader to get you hooked on the games, just like M$ and the X-BOX's and $1.89 milk at the grocers.

Marketing 101.

[Jessterw]

Is anyone actually planning on buying a PS3?

I just don't see the value in it compared to a XBOX 360 or a Wii, even with all the 'features' it's supposed to have

[Gurm]

Well look, if I had a spare $1000 laying around for the system, some controllers, and a few games SURE I'd get one. White Knight Story looks AMAZING, and I'm sure Final Fantasy 13 will be astonishing...

But simple fiscal reality dictates that nobody will buy the system. You can make the most amazing machine in the universe but if you price it out of reach of most people, you will never sell it.

[Jessterw]

Which is basically my point. Sure some of the games are going to be quite nice, but I'd be willing to bet I can find adequate substitutes for those games that will provide just as much entertainment value for far less the cost.

Then again, I won't be buying a 360 either, but I will be a Wii.

[Dr Mordrid]

There's the problem for Sony. They've been building expectations for PS3 and Blu-Ray for years, but those expectations are unlikely to be realized after huge investments. Therein is the seed of a stockholder revolt.

[dbdg]

How long do you think it'll take until Sony is completely out of the game/market?

I'd say one more generation, PS3 will end up with a fairly large market share this time because joe public isn't aware of anything other than playstation but people are soon going to realise they aren't getting what they got with the PS2.

The current new crop of gamers are used to paying very little for the consoles and having a huge library of cheap games, that isn't what they are going to get with the PS3, it will take years for the PS3 to retail at an acceptable price in Europe, we don't even get the console to Q1 2007.

It seems to get forgotten quite a lot (not necessarily here) but Europe is a huge gaming market.

[dbdg]

IMO the situation could turn real ugly if PS3 sales don't meet market analysts expectations.

That's the clever part, they aren't going to produce enough consoles so they can't be called on it, the console will always be sold out.

Sony could put sh*t in a box and sell several million boxes

[Dr Mordrid]

They can't get away with that.

The market gremlins (technical analysts) will look back at past introduction sales for PS1/2 as well as every word said about PS3 before pronouncing on it, and if it doesn't pass muster they'll say so....loudly.

They could also be called for the lowballing (selling out on reduced production). In fact that could be considered securities fraud (misrepresentation) under new post-ENRON/WorldCom laws in the US.

Investors are a far more critical breed than the fanboys.

[Evildead666]

Anyone Remember the Neo-Geo, and the price of its cartridges ?
The console was like 300-400 quid, and each game was like 160 quid !!!!!!!!!

Didn't last very long at all (except for the three really rich kids who bought them).

Jez