PS3 has "no chance of making money"
Lost more than PS2 made, says Perry.
Acclaim boss David Perry has said that Sony will not be able to make a decent profit on PS3 sales due to selling the console at a loss, GamesIndustry.biz reports.
The outspoken game developer claimed the platform holder had lost more money on PS3 than it made during the five year sales peak of PS2.
"Because of the cost of making the PlayStation 3 and because they sold it at a loss, Sony basically has pretty much no chance of making money on the PS3, because it's lost more money than they made during the entire peak of the PlayStation 2 - it's not going to happen again for Sony," said Perry during his GCDC keynote speech yesterday.
"If they release the PlayStation 4 and have an even more expensive console and raise the cost of games by ten dollars, that would not be good."
Perry suggested Sony's much-talked-about ten-year plan for PlayStation 3 was a way to claw back development costs in the long-term.
"So this is going to force them to make the PS3 last longer and they're kind of positioning to do that," he added.
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Comments (118) Latest comment 4 years ago
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So what was the reason for the 10 year lifespan of both PS1 and PS2?
I belive PS1 og PS2 made Sony loads of money and still had a 10 year life span.
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I'm sure Sony are quite happy with PS3 and Blue Ray and the 'PS2 Peak' does not mean 'Lifetime'... what a nob.
How much does this guy get paid for speaking?
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Well as long as the PS4 isn't an expensive piece of shit I don't care.
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Theres his bloated opinion over Sony's financial prediction using his crystal ball, and last month there was his bloated opinion about E3 with the threat that he might stop attending. Its a shame that Perry didn't use this crystal ball at the start of designing the Matrix games. Maybe that way his last commercial releases would have actually been good.
Either this is a call for attention to remind everyone that he exists, we don't care, or he actually does beleive that his has an elevated stature in this industry and people should listen to him. Concentrate more on getting your multiple, and wonderful MMO games and make Acclaim a commercial success, let Sony, Microsoft, Nintendo or whoever worry about themselves.
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I get so confused.
I suppose Sony are probably losing more per unit than they did on PS2 sales, but like DB2k said, the profit on the games is where it is at, not on the consoles.
I suppose Perry may have a point though - if the components are significantly more expensive, and you aren't selling as many games, then it will take longer to claw back in the loss you lead with on the hardware via software sales, but I think it is a little early in the lifecycle of the PS3 to be making sweeping predictions about it, isn't it?
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:-D
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I love this bit, as tho he thinks console manufacturer's are activeley considering this as there next move.
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/fixed
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Year Dollars
1998 1,253,000,000
1999 1,431,000,000
2000 900,000,000
2001 -488,000,000
2002 731,000,000
2003 1,076,000,000
2004 731,000,000
2005 440,000,000
2006 79,000,000
2007 -1,969,000,000
2008 -1,254,000,000
He's probably right on not being able to make the PS3 profitable. Unless it somehow becomes considerably more popular than the PS2 was. Who knows if they're making enough from blu-ray to make it worthwhile... it's hard to say as they only get a cut of the pie - they don't own all of it.
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If they had of skipped Blue Ray and charged the average wage (not sure what that is),
then they may have sold more, but then again they may not, who knows.
I think it is pretty cool that there are two good consoles out there,
and the longer they last the better the software.
I do not think the Wii has much to do with the high end, it is a bit like an expensive DS, though I have both.
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Therefore there wont be any quick returns for Sony from either Blu-ray sales or the PS3
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@Nick and LAzyDan
Your main arguments seem to be the age old "no-games", please tell me what games Im missing out on if I dont have a 360? Yes Halo 3 is good, GOW excellent, but Uncharted is good, MGS4 is excellent.
orget about this failed console.
[link url=http://en.wikipedia.org/wiki/List_of_best-selling _game_consoles
]http://en .wikipedia.org/wiki/List_of_bes...[/link]
Hardly a failure, not a raging success but certainly not a failure. Highly doubful it will reach ps2 heights though.
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But then Microsoft went and spoiled the party by making a pretty decent machine (RROD notwithstanding), and then Nintendo completely pissed on their fireworks with the Wii. For a lot of people, a 360 and Wii does everything they need. The PS3 isn't necessarily a first or even second purchase. It was the third one I bought, and its still not used as much as the 360 - so in terms of game revenue, I'm not being much help to Sony. (Only bought one game and that was second hand.)
I wonder how much Sony banked on revenue from Blu-Ray movies instead of games? The format's not exactly setting the world on fire is it?
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True...
But isn't this the dev that thought The Matrix game was good?
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therefore it is a fact that a equals b
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*shakes head, are the school holidays still not over?
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Aye, this one is an annoying nob-end, the bandana one is an amusing nob-end.
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"He is right, compared to the PS2 the PS3 is a complete disaster.."
OR... maybe PS2 was such a HUGE success and PS3 will just not be able to match that marketshare. That doesn't mean PS3 is (or will be) a disaster.
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Any loss on the PS3 can be justifed by the fact it sealed the HD format war for sony.
As many have said the PS3 does seem to come behind the 360 and Wii to most people, I will admit I am the same and the PS3 will be the third console purchase... just not at £300.
For me its:
Games: 360/PC/Wii
Games for other half: Wii/Occasional 360
Blu-ray/HD-DVD: PC plays both
Recording TV: PVR or PC
Basically the PS3 has no use apart from exclusive games (to me personally), there is a few I wouldn't mind but none of them make me want to spend £300 to play them.
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"stepneg : Yes because PS3 has no good games... keep telling yourself that."
I didn't say that, if you already own a 360 and possibly a Wii then it comes down to exclusives and the only one that takes my interest is Uncharted. This makes it more difficult to lay down 300 quid for the PS3, the PS2 was a must buy, you like games, you had to have one and thats just not the case with the PS3, at all.
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Last year it was 360 for me because of MS's strong 2007 lineup, but this year PS3 have the best line up by far... In my opinion
Anyway my point was that PS3 have far more going for it than just Uncharted... also exclusives. I'm just tired of people using the "no good games" excuse when they haven't event tried the games.
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The Xbox devision has yet to break even once. So on this monatary discussion and your amazing science facts
Xbox & 360 = FLOP
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I think Perry has a point, that the PS3 is likely never going to make much money back for Sony as a piece of hardware. But of course, if that was never the intention then it's a moot point. If it's just more positioning by Sony to squat in the HD market waiting for the mass-exodus from SD, then they've done it. An excellent HD machine, the leading HD media format (by fair means and foul)...
Worked for Microsoft from last generation, positioning and then waiting to get in there early. Sony are probably doing the same, just in a slightly different way.
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SEGA HAS BEEN AVENGED!!
ALL HAIL OUR RIGHTEOUS SAVIOUR, MICROSOFT!!!!
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For those few who couldn't figure that one out.
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yeah, but it has to be games that they are interested in themselves, which usually gives way to the oh so useful "there are no good games on the ps3 (in my personal opinion which is actual fact, nay, LAW)"
http://img s.xkcd.com/comics/duty_calls.png
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That is fairly unique, and this versatility tells me that the PS3 might indeed have a very long lifespan and reach a very wide audience... ultimately, some time down the road. It is a bit of a problem that the games division has suffered under this strategy, but perhaps that was unavoidable. I feel that the games part is pretty well sorted now, with many good exclusives and all the important mutli-platform games (except Dead Rising - come on, get it converted Capcom!)
I think that the PS3 is still just warming up, and I can actually see it surpassing the Ps2 in sales some time down the line, when the TV recording bit has bin integrated (along with a radio tuner?), and the box shrunk a bit and made cheaper.
The thing is: I can't see the Xbox 360 reach such a wide audience - and the 'box is also heavily subsidized. They sure aint making money off it either, and their potential market is much narrower. I would not use the 360 to play music or how holday snaps, for instance.
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just the old school wii toilet is making money. how ironic.
so let's wait for the next gen and see how they try to copy Nintendo, just to fuck it up again and nintendo will just release a true next gen hardcore console... lol... aeh
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@Widge
I didn't know the PS3 did many things very well.
Their games aren't always made very well...ie bad framerate, no AA and multiple delays...some are though
Their online system isn't so great.
Their price is still an obstacle.
Blu-Ray hasn't taken over the world yet either.
Last generation, they wiped the floor with MS & Ninty...now they are just holding on.
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To be fair, it looks like SCE are trying to place themselves in a similar position to Nintendo in previous generation: secure enough first-party IPs and developers to guarantee a manageable sustainable business. They have been doing this even during the PS2 sales peak already.
I'm sure that PR-speak and investors arse licking aside, they're already quite aware that this generation is all but lost. Their priority is most likely survival at this point. And as much as many hate them, they represent much needed competition in the industry.
I've said it countless times already, I sure would hate to see Microsoft get the same kind of grip on gaming that they already have on PC software...
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"I didn't know the PS3 did many things very well."
Do you have one? Curious.
"Their games aren't always made very well...ie bad framerate, no AA and multiple delays...some are though"
Third-party titles ported to their exotic hardware as an afterthought. What an excellent example!
"Their online system isn't so great."
It's better value for money than charging people a fee for the priviledge of playing online though.
"Their price is still an obstacle."
Gradually less so.
"Blu-Ray hasn't taken over the world yet either."
Does have better chances at doing that than HD DVD.
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^^^
+1
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I've not got any bad framerate games either too, and after the farce of getting Oblivion to run when it came out on PC, things are just great!
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However, Wii is the big thing here that's holding back the PS3, I think. The PS3 hasn't reached the proper price-level yet, which it will soon enough. It may never be as big as the PS2, sure, but I think it will turn out pretty good eventually. They just shouldn't be afraid to release something like MotionPlus themselves ... it's the only thing that the competition has that I would like to have myself.
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MotionPlus is the same tech as the sixaxis, mate. What are you talking about?
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so even the RRoD didn't dent their figures? I mean, they must have sold 50 million units by now?
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A = B!
Black = White!
Jessica Alba = my lusty plaything!
Me = Overlord God-king of reality!
I'm sure the LHC team will use this new paradigm in their forthcoming research...
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EEEEEEEEEEHHHHHH???
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Do you have one? Curious.
--- Does it matter? No....I don't have a vagina either but I know the ins and outs of that too
"Their games aren't always made very well...ie bad framerate, no AA and multiple delays...some are though"
Third-party titles ported to their exotic hardware as an afterthought. What an excellent example!
--- Well since 90% of the PS3 or 360 games are third party, it's an excellent example
"Their online system isn't so great."
It's better value for money than charging people a fee for the priviledge of playing online though.
--- It's no value since pS3' online doesn't cost anything. You and I both know xbox live is more than just playing online.
"Their price is still an obstacle."
Gradually less so.
--- But still an obstacle nonetheless and to go back to the original point.....their pricing was not executed "very well".
"Blu-Ray hasn't taken over the world yet either."
Does have better chances at doing that than HD DVD.
--- Shouldn't you be comparing it to the platform leader DVD not HD DVD? But if you did that you wouldn't have an answer
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You need to own one to know what it's capable of, especially as far as media capabilities are concerned. Marketing about the entirety of features has been pretty bad, I'm afraid.
First party titles have been generally shit too, and suffer from the same problems as multiplats. Oh, and 'exotic hardware'? Lol, try overcomplicated and underpowered.
Likewise. You sound to me like be one of those people who refuse to touch a PS3 (since you don't need to use it to know it's bad), and yet you know so much about the best titles available for the filthy thing. Amazing!
Maybe I should consult your crystal ball next gen.
Matter of opinion, and millions of gold subscribers disagree with you.
So is yours
It's their money, not mine
Avoiding the point, well done. Also, the 360 wasnt designed as an HDDVD trojan, and MS arent the owners of the format so the death of HDDVD has no impact on MS.
You too. Excellent way to avoid the point, I should say.
Here's another way to look at it: MS invested in HD DVD as a means to delay adoption of Blu-Ray, nothing more. And since MS aren't owners of the format, they didn't care whether HD DVD would survive or not.
Where does the consumer fit in all this?
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Look at Psychotext's figures on the first page of comments. It makes very grim reading for Sony.
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as long as they don't ditch the console all together I don't care if they make a loss or profit. I don't own any shares anyway. I just own the ps3
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Aaaah... but a vagina... you have "experienced" in some way already, I'm sure
Ok, about PSN/XBox Live: Can you enlighten me about the main differences between Silver and Gold accounts? Yes, it is more than the online play, but that single feature is the most important net feature in a console, one would think.
A good number of Live features have been copied to PSN by now, and it still has no additional costs attached to it.
Each console cost them about 800 dollars to build initially, so I don't see how many options they had. For sure, I'd rather have given 300 euros instead of 600 on launch, but still... It is a business, not a charity.
More of a costs problem, than pricing one?
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Here's some news for you:
MotionPlus. Motion. Motion sensing.
It's the same accelerometers, that combined with the pointing, allow position tracking via software.
Same tech, different implementation.
Just because Sony rushed motion sensing in to compensate for lack of rumble (everybody with a brain knows that was the real reason, NOT copying Nintendo), and as such never made full proper use of it, doesn't make it useless.
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I used it for steering in Motorstorm and it worked well with Big Rigs at least. I've played High Velocity Bowling and had fun with it. fl0w works well with it too, but that's a... "non-game", anyway.
Burn me as a heretic, if you will, for finding at least a couple of games that use it well.
When I said "they didn't use it well enough", I meant developers, of course. Mostly Sony's fault of course. But it's not completely useless tech. Just very underused. Same reason the Sidewinder died back in the day, I guess.
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@Arwin
up 200,000 this year with 4,800,000 consoles to go. Just thought I'd mention it
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Even after they sorta mocked me when I tried them to replace my PSP with dead pixels, I hold no grudge. I am entitled though, to have an opinion that with PS3 they didn't do a good job for the video-game community, they cared more with the Blu-Ray stuff. So, for me, roll on PS4.
The controller is a fine example... what the heck? the same controller with no rumble? Are they kidding me?
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360: the best games, the hardware is noisy, unreliable, and has batteries in the controller, XBLA is mostly a collection of Flash games. Pay for online. Still not profitable.
PS3: decent games, the hardware is lovely, the multimedia stuff is great, and PSN Store has some weird and interesting titles. Free online. Still not profitable.
Wii: a couple of stand-out games and the rest are one-note filler, but at least your parents aren't afraid of it after a few glasses of wine. Profitable.
They could all do a lot better. I use my 360 for games but was very disappointed with Gold Live so let that slip after two months. I use my PS3 for games, films, and downloaded TV. I use the Wii for an easy and social workout. They've all got their undeniable good points and bad points, so can we please stop the bickering!
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Couldn't care less if Sony are losing money on it or not.
Couldn't care less if they're 'winning' or not.
Couldn't care less what Dave Perry thinks either, although he's perfectly entitled to his opinion.
I just like it.
Why can't we all get along?
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Even after they sorta mocked me when I tried them to replace my PSP with dead pixels, I hold no grudge. I am entitled though, to have an opinion that with PS3 they didn't do a good job for the video-game community, they cared more with the Blu-Ray stuff. So, for me, roll on PS4.
Fair enough, mate.
I do respect that you'd be displeased with their service regarding the dead pixels issue on the PSP (just because I was lucky with that doesn't mean everybody would) and would understand that you dislike them as a company as a result.
My dislike for MS ages back from real problems I've had using NT when I was studying in Lisbon and that did hurt my workflow. I wished I had a working effective choice back then. But in those days, I wouldn't even know where to find a good Ubuntu edition. Good thing it's a hell of a lot easier to find nowadays.
I still think that the PS3 biggest problems came from Krazy Ken's megalomania in the beginning, and that Phil Harrison, despite being an arrogant twat, did have a good eye for quality Indie developers and should have stayed in SCE. Firing him was the Jap exec's latest big mistake. But I'm still confident great games will come out for it and am pleased with the product in general. Just like I was with the PSP.
BTW, since you're a tech freak like me, have you heard of the Pandora?
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Not just technically, commercially it's as big a flop. MS are blind and think that with snatching away exclusives from PS they can reach PS2-like success. They're very wrong and stupid for still not seeing it. xbox has been perfectly targeted at the hardcore and americans. Too bad for MS they're too small a market to actually make any money...
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Les: I know you say that a lot, that MS is dumb and can't make money and are losing this and that, but it is so hard to realy believe. You dig X-Files I presume ?
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True. The last 5-10 games I bought are from the PS2 back catalogue. Game quality is deteriorating fast and the only thing the gaming press and hardcore gamers do is congratulate themselves with one lacklustre graphics upgrade/gameplay downgrade title after the other... Pathetic.
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PS3 already makes a profit this quarter. The real profit for PS3 may not be the hardware but is the softwares and services. Software royalty from games and download movies and games. This is a huge!! PS3 is going to become EB games. Why buy games at the shops, just download them. Use PC? no way! PS3 only and Sony can charge every games on their network 30 percent of its revenue on top of royalty and ads. Money$$$$$
Thx to PS3, Blu-ray won. This mean every Blu-ray consumers buy, blank or not blank, Sony will make a 10% percent profit. If it take off and became DVD today, this thing print money$$$$$$ 2 billions dollars per year kinda money$$$$$
David Perry knows shit. He properly just said that and read our comments for answers. Sucker! Pls DP, keep your mouth shut and make some goood games.
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Not really. The gaming division is still in the red. But next fiscal year they'll begin recovering for sure.
Which is good news for whoever bought the PS3, because it means it will be supported for a while as originally planned.
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Ok, we're getting too off-topic here, so I'll just PM you.
And no, It ain't vapour-ware.
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In the grand scheme of sales or even shipped....worldwide 360 has shifted more....hence in a real world 'ive sold more than youve sold' sense, this generation (as i said in my initial post) between the High Def gaming consoles (PS3, 360) is being led by Micro$oft.
Whether it'll stay like that is any jeb's guess though
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That's just them betting on two horses... What else did you expect?
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Confounder, you win the prize for the dumbest post of the day.
As a result of the 360, millions of xbox owners are now using Vista. Lol
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see the og xbox was late to the game on top of that not to long after they came out the ps2 had a price drop, so xbox had to cut price. then the ps2 had another price drop, so again the xbox had to cut its price again....to top it all off they couldn't get subsided components. now your selling a box that cost 350 to make and and your selling at 199.99.
sony fans keep it real with yourselves, ps3 didn't need to 2 different sku's. also is backwards compatibility really necessary? how's the motion controller working? oh yeah let's not forget that rumble was so last gen, thats why we didn't include it, oh wait now we need a rumble six axis controller. wait we are pushing blu-ray, but xbox is doing video downloads damn we need that too. you guys do have free online, but hey it just means that you have no money going into the online division.
oh and since it's microsoft windows and microsoft xbox 360 they are supporting 2 gaming divisions so if you don't have a 360 but a windows pc then you can play a microsoft published game.....does it make since now? is it sinking in? microsoft xbox 360, microsoft windows = 2 microsoft products. so whether its on 360 or pc it's still exclusive to microsoft.
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This. The games industry, may surprise fanboys but technically true, needs competition and machines of diffferent specification. From cheap and cheerful to powerful and expensive, from first-party to third-party, from control pads to joysticks to the wii remote. It all diversifies, keeps companies pushing, keeps them advertising, buying new talent, investing in new games etc.
It's when a company dominates a market almost by default that you see issues. And Nintendo are just as much guilty of this as Microsoft is, as they had a 95% domination of the handheld market for so long and the GBA, despite selling tons of machines, had a despairingly barren and sporadic release pattern. This is not healthy for a market. With no rush, no urgency, no competitors - companies get complacent and start to treat their customers with contempt. There's no reason to push for quality, or push to a release date.
All companies in the games market are guilty of anti-competative practices. Microsoft have done it with PC Software. Nintendo did it with the handheld market. Sony hve done it numerous times but more recently of note, buying up things to make Bluray the HD media format standard. If given a chance, of course they'd all stranglehold a market. That is why competition is desperately needed, and why we need this kind of three-way fight. As long as they're all battling, each generation one will come out on top but the fight is still strong, the market will remain strong.
Sony may seem in trouble but let's not ring out a death-knell yet. Sony are clearly positioning themselves to be the leaders in an inevitably-coming HD conversion. The price they're paying now may be recouped in future. Spend money to make money. There may be method to the madness, and yes they may be out of pocket for a few years but it never hurt Microsoft and the X-Box,and despite being the little guy Nintendo have had enough big names to sustain themselves, so will Sony.
In short, PS3 is not "teh doomed". In a few years we may all convert to HD in a space of a few months and Sony, as media format leader and their hands firmly in the HD market, will reap what they've sewn. It's a plausible scenario and Nintendo and Microsoft will play catch-up. The industry swings around so much, it's never a good idea to write anything off...
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And if I don't own\want a PC capable of playing games I.....
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The 'return' key is your friend, walls of text are hard to read.
@hitman42
What has amount of sku's got to do with anything? Has Xbox only got one?
sony fans keep it real with yourselves
What does that mean?
how's the motion controller working?
Quite well thanks, Flying a Warhawk with it is awesome.
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microsoft put out a product to compete with sony and nintendo. hence the arcade model, and the 20 gb model to compete with the ps3....but all playstation had to do was come out with say the 60 gb and since you can switch harddrives there was no need to come out with multiple sku's.
now the reason they dropped the price is because the ps2 hardware isn't in there right?
so like i say keep it real with yourselves, the only thing the ps3 has going for it is the blu-ray.
but even if that's the case, we are about to switch from analog to digital broadcasting in feb 09, so that's more hd stations, with more hd content, why buy a $30 blu-ray disc when i should be able to stream....bottom line sony fed you this bullshit it's not tru hd unless it's 1080p and blu-ray will be the only way to experience it....blah blah blah blah. i'm no videophile but a upconverted dvd looks just as good as a blu-ray and it's cheaper.....they talk about 7.1 surround sound but bose manages to get full surround sound from 3 speakers go figure.
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You're quite right, you're not.
so like i say keep it real with yourselves
like I say, what does 'keep it real with yourself' mean?
now the reason they dropped the price is because the ps2 hardware isn't in there right?
Wrong. 60gb pal ps3 had software emulation.
Your main argument seems to be that the PS3 is rubbish becasue blu-ray is un-necessary. It can also deal with media in all the ways the 360 can so I dont really see your argument?
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also if a upconverting dvd doesn't look as good as a blu-ray why do people still buy them? since, well blu-ray is so much better. "well with blu ray you'll be able to put more deleted scenes and directors comments, you know more interactivity." why do you think bootlegs movies sell so damn good? because people don't care about all that extra bull. dvd was and still is a bigger impact then blu ray
wrong???the 60 had software emulation because they dropped the ps2 hardware which allowed the price to come down a lil.(u just made yourself look stupid)
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wrong???the 60 had software emulation because they dropped the ps2 hardware which allowed the price to come down a lil.(u just made yourself look stupid)
The pal 60gb never had hardware emulation, it was always software. So yes, wrong.
dude just face it blu-ray is not needed
Please point to the post where I said it was.
It most likely isnt, but is a great feature pretty much for free.
(Price up a 360 with a hdd, wireless, online (for 2 years) a controller charger and rechargeable batteries, hdmi output and it will be pretty close. The ps3 however comes with blu-ray, so in that sense it is free)
also if a upconverting dvd doesn't look as good as a blu-ray why do people still buy them?
This is so obvious I cant believe I have to answer. Becasue it is cheaper and not everyone has a 1080p (or even 720p /1080i) tv.
why do you think bootlegs movies sell so damn good?
You buy bootleg movies? Strange, I get them for free.
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lets see the 360 doesn't need hd dvd or wireless..(to enjoy it as gaming device)..the newer models come with hdmi..(does the ps3 even come with component cables?)..the batteries and charger have plenty options the plug and charge kit, or like me since i have lots of remotes i bought a energizer 15 minute charger....online, yes where would we be without online, well seeing as my 50 goes into research and development to further the growth of the service whereas you get free online, and HOME will be out sometime.
so by the time every one converts to hd sets resolutions with be beyond 1080p....
yeah you download movies from torrents good for you....
confinder you must not know cuz you are also a dumb fuck.....microsoft windows, microsoft xbox 360 essentially they have 2 major platforms and if it's published by microsoft game studios more the likely it'll be on both platforms with a short period of exlusiveness to to one system....so whether it's the pc or the 360 it's on a microsoft system....won't be no halo, or gears of war etc on a mac or linux based computer.....
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Time to release the PS4 and forget about this failed console. It will be talked about in the same way as the Jaguar and 3DO in a few years time.
A total flop."
It's the you of home consoles.
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its a total flop as far as im concerned
wish i never bothered.
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LMAO how about talking about its crap games oh wait they are crap.
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With a Wii 2 and Xbox 720 on the shelves well before Sony's halfway stage, not to mention generic £50 'do everything' media centers, what gamer in his right mind will buy a PS3? By 2017 I have great expectations for gaming, something Sony havn't had since 1993.
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