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Sony is riskier than Nintendo, says boss News

Xbox 360 PlayStation 3 Wii
News by Ellie Gibson

7 October, 2009

Jack Tretton has said he reckons Sony takes more risks than Nintendo, a company which is all about the dollar-dollar bills.

The Sony Computer Entertainment America boss was speaking during an interview with Forbes. "[Nintendo] know what they do well and they stick to it," Tretton said. "They deliver a casual, youth-oriented entertainment experience, it's very enjoyable after 20 years, and they make money. They print money. Their profitability is their key focus... I think that's enviable."

When asked what he likes about Microsoft Tretton replied, "I love their money. I mean, they've got more money than God."

In other words, "They can afford to be more patient. We're very profit-driven. We're interested in a return on investment in a fairly short period of time. I think Microsoft's will to go at it from a much more steep curve in terms of profitability."

So where does Sony stand? "We like to see ourselves somewhere in the middle. We don't have unlimited money, we cater to a more mass market audience, we're willing to take a little bit more risk than a competitor like Nintendo," Tretton said.

"We like to say the environment where PlayStation wins is best for this industry, because we have a brand that can play on a worldwide basis - young and old, male and female - where our competition tends to be relegated to either select regions or select consumer audiences."

Watch the full interview for more, and to hear the presenter describe the PS3 as a "popular game box".

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Comments: 1-50 of 72 in total | next 50 »

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Tzetrik
07/10/09 @ 07:47
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or, Sony makes more mistakes than Nintendo.
Hix15
07/10/09 @ 07:48
#2
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"We're interested in a return on investment in a fairly short period of time" - So much for the ten year plan then eh
Shinetop
07/10/09 @ 07:51
#3
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I like how Jack Tretton is acting like he's Alec Trevelyan now.
toa_boa
07/10/09 @ 07:53
#4
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Priceless - Jack, my good fellah, you're killing me :-D
swissorc
07/10/09 @ 07:57
#5
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This is the most pointless news ever. Sony state that microsoft are rich and nintendo are making good profits. Wow
robg
07/10/09 @ 07:59
#6
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We're interested in a return on investment in a fairly short period of time.

FSVO "short".
M_of_the_sys
07/10/09 @ 07:59
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"When asked what he likes about Microsoft Tretton replied, "I love their money. I mean, they've got more money than God."

It's easier for a camel to pass through the eye of a needle than it is for a rich man to enter the kingdom of Heaven.

Also - What swissorc said.
hiddenranbir
07/10/09 @ 08:01
#8
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Their profitability is their key focus...

It should be yours as well! For any business!

We're very profit-driven.

You've not shown it. :z
LilithsCurves
07/10/09 @ 08:03
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@M_of_the_sys: Reminds me of african children death squads killing their fellows on the one hand (not so much money) and that big company in rome with it's own state a huge wealth and spiritual guidance for a billion people (lot's of money). I know that was stingy.
des
07/10/09 @ 08:05
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Or Sony makes less money than Nintendo...oh wait what am i talking about?Sony is not making any money



davisorle
07/10/09 @ 08:06
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Risk awards according to Sony: MS 1st Sony 2nd Nintendo 3rd. I so dissagree with Sony. Wii was not a safest bet even if it turned into a top seller for years in the last gen console round.

Money maker awards according to Sony: Nintendo 1st, Sony 2nd MS 3rd. Well, might be true but Nintendo "was" a money making machine with Wii due to the risky move with a cheap console controlled by a Wiimote, so they earned it. Sony may not have as much money as God and MS but noone is making them make stupid moves like an expensive dumb PSPGo nor an expensive PS3 like it used to be.

But yeah, the article wasnt a delight like swissorc said...
the_inchworm
07/10/09 @ 08:16
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@ Shinetop

Awesome reference. Alec Trevelyan is the best.
darkmorgado
07/10/09 @ 08:19
#13
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But does he think that Playstation tastes like strawberries?
miiiguel
07/10/09 @ 08:22
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I'm not into the lovely tales of God, but I never knew the dude had money.
trebell
07/10/09 @ 08:27
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"We like to say the environment where PlayStation wins is best for this industry
"

really? the man in charge of the company that makes the Playstation thinks it should win?

i'm shocked.
Tonka
07/10/09 @ 08:34
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That is an outright lie.
twyford
07/10/09 @ 08:35
#17
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So Nintendo - "Their profitability is their key focus..." and Sony - "We're very profit-driven", so basically they are trying to achieve the same goal but going about it very badly. A huge initial outlay on the technology of the PS3 was never going to see a rapid or large profit in the short term.
HolyJebus
07/10/09 @ 08:41
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Look at each companies progression with joypads and tell me who takes the biggest risks.
GreyBeard
07/10/09 @ 08:43
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Very good interview. Well worth a watch.
I like Tretton though, he's seems somewhat more grounded than a lot of Sony execs.
notmyrealname
07/10/09 @ 08:49
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He's right though.

More money than god is pretty funny in a way. Shows he's big fat atheist lol
VMerken
07/10/09 @ 09:09
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So... is Jack trying to paint Sony as this all new Indie company which still hasn't got a clue about its business plan/strategy?

Hmm. Sony. est. 1946
Nintendo. est. 1889
Microsoft. est. 1975

Yeah. It's clear who the rookie is.
thesombrerokid
07/10/09 @ 09:10
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microsoft is to sony what sony was to sega, there's always a bigger fish.
miiiguel
07/10/09 @ 09:17
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What is with all the anti-Sony sentiment this generation? I bet everyone having a go had an original Playstation

What does that mean? I do have a PS2(s), as now I have a 360 but they are not my family, and I marry no company, no exclusivity long term deals here.
Pac
07/10/09 @ 09:19
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""We like to say the environment where PlayStation wins is best for this industry, because we have a brand that can play on a worldwide basis - young and old, male and female - where our competition tends to be relegated to either select regions or select consumer audiences." "

He appears to be saying that Sony has the console that appeals to the largest cross section of consumers. However they are still in third place.

Perhaps the select consumer audiences (whatever that means) are larger than Sony thought.
VMerken
07/10/09 @ 09:19
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@Shotaro:

I have all the PlayStations except the Go. Still, that won't stop me from forming an opinion about certain Sony exec statements. Heck, I'll even form opinions about Microsoft/Nintendo exec statements when journalists interview them. Generally speaking: I've rarely read anything other than superficial name calling from these guys. It's like a bunch of hissing cats, fighting in the dark. But I guess their contracts limit them to only that while being interviewed...
schnide
07/10/09 @ 09:20
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I actually think his assessment is pretty spot on.. except it feels to me like he's regurgitating how a lot of us gamers see it, rather than the position Sony have deliberately got themselves into.
freakzilla
07/10/09 @ 09:23
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WTF happened to SONY? I mean seriously, they basically owned console gaming since the dawn of 3D gaming, I just can't believe the same people who made the PS1 and PS2 can make so many mistakes,
jambii267
07/10/09 @ 09:29
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...yeah, Releasing a SD console with a strange name and a weird controller was not a big risk. Silly sony
farticusmaximus
07/10/09 @ 09:30
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"What is with all the anti-Sony sentiment this generation? I bet everyone having a go had an original Playstation"

Yup, had a couple PS1's and still have my original fat PS2. Absolutely loved them and I still whip out the PS2 for a bit of SSX Tricky every now and then.

Today's Sony is not even vaguely the same as the PS1/PS2 Sony though. They stuck the middle finger up to a very large cross-section of their customers, and that's why they are where they are, with the amount of anti-Sony sentiment surrounding them.
INSOMANiAC
07/10/09 @ 09:33
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Nintendo are the kings of taking risks, from the underpowered Gameboy to the Wii they are not afraid to concentrate on innovative gamings ideas.

I dont really class -

playstation 1 then......... playstation 2 then....... playstation portable then..... playstation 3 as a particularly risky strategy, especially considering all their consoles have practically the exact same controller.

The ONLY risk Sony ever make is risking losing a huge market share by overpricing their offerings due to arrogance and complacency. Something they have achieved whole heartedly.
laudy
07/10/09 @ 09:35
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"So... is Jack trying to paint Sony as this all new Indie company which still hasn't got a clue about its business plan/strategy?"

In a word, no.

"The ONLY risk Sony ever make is risking losing a huge market share by overpricing their offerings due to arrogance and complacency."

And there's the risk that trumps them all, so what's the issue? Could they have taken a bigger risk than saying "Hey, pay £425 for our new console! And by the way, for a very long time, our software won't be anywhere near as good as our competitors!!"
Edited 1 times, most recently on 07/10/09 @ 10:41
Hix15
07/10/09 @ 09:38
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Where on earth was natal mentioned in this fairly pointless news story?
bad09
07/10/09 @ 09:38
#37
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"What is with all the anti-Sony sentiment this generation? I bet everyone having a go had an original Playstation "

Well personally as a huge Sony fan. It's been brewing for a while but.....

1. The HUGE and unrealistic launch price of PS3
2. The removal of B/C before it came down to a realistic price
3. The complete wasted opportunity the PSP was/is as an official firmware machine
4. The fact that, in a complete reversal from previous gens, the PS brand has barely any original IPs I actually find interesting this gen (MGS is still there I guess and Uncharted is cool but the rest I can live without TBH).
5. Canning/delaying The Getaway 3. ARRRGHH!!!!!!
6. Reducing the mighty Psygnosis to a Wipeout factory
7. SCEE
8. Phil Harrsion

Also I do think I hold a little hatred for the death of DC. I've forgiven EA but for some reason I still hear THOSE FOOLS in my head "Nah I'm gonna wait for the Playstation 2...." AARGGGH!!!! DIE SONY!!! :)

Phew! Don't get me started on the other two....
laudy
07/10/09 @ 09:44
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@ Bad 09

Points 1-7 sound pretty risky to me ;-)

Can't say anything about Phil Harrison, don't know the man...
Slipstream
07/10/09 @ 09:51
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Brave statements, gotta commend the guy for speaking out without stabbing at the competition.
It's true though, sony have taken risks, and are still surviving, PSP, UMDs, feature reductions on PS3 consoles, PSPGO and its lack of physical software and eben the slim was risky business!
Glad to see they are holding out and still plan to as they have amazing exclusive IPs and so much more potential, but yeah, a definite improvement.

That said though, I'm sure Nintendo were aware of the risks they too were taking upon the initial Wii launch with the whole motion control concept at the time, paid off massivley though didn't it. I guess that's why they are sitting (for now) safely on th fence, not waiting to repeat the days of the ill-fated Gamecube...which for me, is one of my favorite consoles, but it's part of the Wii so all good.

Microsoft have a pretty large audience that sits firmly between hardcore and mainstream. The 360 is truly multimedia and really brings gamers together, THAT I believe is its biggest draw, which is evidently essential in this day and age, the further intergration of Twitter and Facebook boosts this statement.
Of course, the PS3 could access these ages ago, heck, you could already reach the iPlayer that was recently added to the dashboard but Sony's lack of marketing toward these haven't been great. Sure it's not the best browser going, but it's there.

Slipstream
07/10/09 @ 10:02
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I definitely agree with the forced statement Donnie. Time waits for no one.
SeesThroughAll
07/10/09 @ 10:04
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Also I do think I hold a little hatred for the death of DC. I've forgiven EA but for some reason I still hear THOSE FOOLS in my head "Nah I'm gonna wait for the Playstation 2...." AARGGGH!!!! DIE SONY!!! :)

Surely EA is more to blame than Sony?
bad09
07/10/09 @ 10:09
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Surely EA is more to blame than Sony?

Well in my own experience people were not saying "I want FIFA or Madden" (DC did have alternatives anyway) they all wanted the next PS. Of course I wanted it to, PS1 was/is bloody wicked, but they shunned my cheap little caster of dreams, even though PS2 was ages away. The bastards......
Edited 1 times, most recently on 07/10/09 @ 11:09
laudy
07/10/09 @ 10:10
#43
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Just quickly donnie,

were sony forced to price the launch ps3 at £425?

just curious is all...
GamerG
07/10/09 @ 10:16
#44
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OT I find the comments like or dislike buttons fasinating, it really shows up the sony fanboys as being completly irrational, almost every comment on any thread with a minus 5 score or more is some Sony fanboy acting like a tit
Slipstream
07/10/09 @ 10:18
#45
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were sony forced to price the launch ps3 at £425?
Considering it was the cheapest Blu-ray player going at its launch aswell as BC and additional ports, I'd say yes.
For them to market it any lower at the time would've caused alot more damage.
Of course that's not to say they didn't make some illogical decisions surrounding its launch, but I don't think the initial price tag was unfair.
Edited 2 times, most recently on 07/10/09 @ 11:21
Zomoniac
07/10/09 @ 10:18
#46
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I'd say investing a fortune in a ridiculously advanced CPU and a huge storage medium, sticking them in a box and selling them for over £400 with no games available as it's what's needed to pay for the insane level of tech that realistically nobody needs is fairly risky. Maybe in the long run it will pay off (Uncharted 2 and GT5 are the first games to make me think that maybe in the right hands it can actually produce stuff that is beyond 360, given it's always looked inferior until recently), but sinking all your money into two new bleeding edge technologies and praying that consumers will foot the bill doesn't exactly sound like 'playing it safe'.
Canyarion
07/10/09 @ 10:20
#47
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So how were the DS and Wii smaller risks than the PSP and PS3?

I do get his point though... with them selling their hardware below production cost. It's just that the people this generation have shown what they want. Last generation's technology is more than good enough for most of them. That's where the money is.
Petulant_Radish
07/10/09 @ 10:21
#48
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I can’t imagine God actually needs any money at all, it’s not like he pops down the shop for a pint of milk is it, unless it’s like Dogma and God is having a holiday in Alanis Morrisette’s body and might need some money to buy a knife because all she can find is 10,000 spoons. That’s not ironic, that’s just annoying. But even then it wouldn’t be more than about £1, so because of my Sherlock like deducing I also have more money than god, it’s science.
Edited 1 times, most recently on 07/10/09 @ 11:21
laudy
07/10/09 @ 10:22
#49
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except this thread GamerG

"Bitter sony indeed"

from the vast majority of your posts donnie, i wouldn't say that sony were bitter if i were you...
Edited 1 times, most recently on 07/10/09 @ 11:29
Zomoniac
07/10/09 @ 10:38
#50
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The DS wasn't as big a risk as it seems. The case is, and has been for years, that the vast majority of games played are on PCs, on MS Gaming Zone, Yahoo, random flash site or wherever. All using a simple pointer based interface. The DS is a logical extension on that, they just needed to market it at the right people, which they did. Then, once you've got all the ladies in the world playing Brain Training and talking about Nintendo, getting them to buy a Wii as well is the next step.

And whilst the Wii was a risk, it was a well calculated one. It's using very old and cheap tech, and the motion controller is very basic (it seems to be a pointer with an accelerometer and a gyrothingy in it, nothing new or expensive in the tech, just all put together in a new way), so given the price they charge for what is essentially a Cube with a few sensors in a remote, and market it in such a way to make everyone buy another 3 remotes at £35 each, they probably didn't need to sell very many to put the whole project into decent profit. If they'd done what Sony appear to have done, and gone about Wii in such a way that meant needing 20 million units sold before they made any money on it it would have been exceedingly risky, but I think they've done their risk-taking very well.

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