Sony is riskier than Nintendo, says boss

By Ellie Gibson Published 7 October, 2009

Plus: "Microsoft has more money than God."

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".

Picture of Ellie.

About Ellie Gibson

Since joining Eurogamer in the mid 2000s, Ellie has written about subjects as diverse as the fall of Gizmondo, the rise of Hollyoaks actresses in Red Alert games and the noise a bear makes under NSFW circumstances.

Read more articles from Ellie by visiting the Ellie Gibson archive page.

You may also like...

Comments (65) Latest comment 2 years ago

Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!

  • Tzetrik #1 2 years ago

    or, Sony makes more mistakes than Nintendo.

  • Hix15 #2 2 years ago

    "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 #3 2 years ago

    I like how Jack Tretton is acting like he's Alec Trevelyan now.

  • toa_boa #4 2 years ago

    Priceless - Jack, my good fellah, you're killing me :-D

  • swissorc #5 2 years ago

    This is the most pointless news ever. Sony state that microsoft are rich and nintendo are making good profits. Wow

  • robg #6 2 years ago

    We're interested in a return on investment in a fairly short period of time.

    FSVO "short".

  • M_of_the_sys #7 2 years ago

    "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 #8 2 years ago

    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 #9 2 years ago

    @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 #10 2 years ago

    Or Sony makes less money than Nintendo...oh wait what am i talking about?Sony is not making any money



  • davisorle #11 2 years ago

    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 #12 2 years ago

    @ Shinetop

    Awesome reference. Alec Trevelyan is the best.

  • darkmorgado #13 2 years ago

    But does he think that Playstation tastes like strawberries?

  • miiiguel #14 2 years ago

    I'm not into the lovely tales of God, but I never knew the dude had money.

  • Tonka #15 2 years ago

    That is an outright lie.

  • twyford #16 2 years ago

    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 #17 2 years ago

    Look at each companies progression with joypads and tell me who takes the biggest risks.

  • GreyBeard #18 2 years ago

    Very good interview. Well worth a watch.
    I like Tretton though, he's seems somewhat more grounded than a lot of Sony execs.

  • M_of_the_sys #19 2 years ago

    @LilithsCurves

    Ha ha! Nice observation! I'd love to join in on the bashing but it would be kind of off topic. Seems like the current trend is Sony bashing.
    Edited by 1 at 07/10/09 @ 09:45

  • VMerken #20 2 years ago

    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 #21 2 years ago

    microsoft is to sony what sony was to sega, there's always a bigger fish.

  • Shotaro #22 2 years ago

    What is with all the anti-Sony sentiment this generation? I bet everyone having a go had an original Playstation

  • miiiguel #23 2 years ago

    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 #24 2 years ago

    ""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 #25 2 years ago

    @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 #26 2 years ago

    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 #27 2 years ago

    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 #28 2 years ago

    ...yeah, Releasing a SD console with a strange name and a weird controller was not a big risk. Silly sony

  • INSOMANiAC #29 2 years ago

    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 #30 2 years ago

    "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 by 1 at 07/10/09 @ 10:41

  • Hix15 #31 2 years ago

    Where on earth was natal mentioned in this fairly pointless news story?

  • bad09 #32 2 years ago

    "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 #33 2 years ago

    @ Bad 09

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

    Can't say anything about Phil Harrison, don't know the man...

  • Slipstream #34 2 years ago

    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 #35 2 years ago

    I definitely agree with the forced statement Donnie. Time waits for no one.

  • SeesThroughAll #36 2 years ago

    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 #37 2 years ago

    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 by 1 at 07/10/09 @ 11:09

  • laudy #38 2 years ago

    Just quickly donnie,

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

    just curious is all...

  • GamerG #39 2 years ago

    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 #40 2 years ago

    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 by 2 at 07/10/09 @ 11:21

  • Zomoniac #41 2 years ago

    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 #42 2 years ago

    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 #43 2 years ago

    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 by 1 at 07/10/09 @ 11:21

  • laudy #44 2 years ago

    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 by 1 at 07/10/09 @ 11:29

  • Zomoniac #45 2 years ago

    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.

  • LilithsCurves #46 2 years ago

    @M_of_the_sys. (off topic!) Yes, seems like now is Sony bashing time at least here, hehe. Great example for that dynamic is also Vista and Windows 7, after several patches Vista is almost the same as Windows 7 (apart from a few features and improvements). But nevertheless a majority proclaims Windows 7 is the new great OS while ripping Vista to pieces. And now Sony is bad because they charge 250 dollars for their new handheld. How dare they! - outrageous, what's next? putting some poison in the water supply of entire cities? HAHA.

    Edit: there is a lot of sarcasm in the post by the way.
    Edited by 2 at 07/10/09 @ 16:36

  • wowami #47 2 years ago

    it all went downhill for Sony after the introduction of the dual analogue. They removed the longer grip arms to launch the original Dual shock was a big mistake.

    Seriously - i just wish they wouldn't hype their consoles so much. The original playstation was amazing because it changed everything but then we had . "emotion engine... blah blah" "cell saves world"

    Please concentrate on what you did so well originally and not the endless quotes which can never come true ( 1080p - dual display - 120hz )..

  • funkateer #48 2 years ago

    So how were the DS and Wii smaller risks than the PSP and PS3?

    Because they make insane amounts of money to Nintendo.

    Sony was pushed to 2nd place in the market with their PSP and PS3 that don't make as much money as foreseen, and they're in a rough economic climate, so they're more risky business now.
    MS is now confortably in 3rd place with one very focused product that makes them money, has a loyal and strong userbase, and MS have an insane amount of money in the back pocket to gradually develop their market share more.

    I think Tretton was talking about the present and not about the past, and I think he was surprisingly spot on with his remarks.

  • Eldritch #49 2 years ago

    Sony used to be bigger than Jesus: Walkman, Discman, Trinitron. Now Samsung's the new Sony.

  • AphoticCosmos #50 2 years ago

    Thing is, Sony is actually a much larger corporation than Microsoft and makes a shit-ton more money.

    Funny that.

  • skillian #51 2 years ago

    Thing is, Sony is actually a much larger corporation than Microsoft and makes a shit-ton more money.

    I really don't think that's true. Got a source?

  • AphoticCosmos #52 2 years ago

    "I really don't think that's true. Got a source?"

    [link url=http://en.wikipedia.org/wiki/List_of_companies_by_reven ue
    ]http://en .wikipedia.org/wiki/List_of_com...[/link]

    Sony - 92

    Microsoft - 119
    Edited by 1 at 07/10/09 @ 16:37

  • Drakron #53 2 years ago

    "So how were the DS and Wii smaller risks than the PSP and PS3?"

    Well the DS was a risk but it was not meant as a GameBoy replacement but it success made it the GameBoy replacement.

    The Wii was a smaller risk since it only existed because of the DS, they seen what happened with the DS/PSP and Wii as it seems Sony learned NOTHING from the PSP.

    The PSP and the PS3 were smaller risks since they were nothing but safe extensions of conventional design.

  • skillian #54 2 years ago

    @AphoticCosmos

    Well OK, but that's revenue, which doesn't tell you how much money a company makes.

    Last year MS were the 7th most profitable company on the planet, while Sony made less money than that guy with the dreadlocks who makes Reggae Reggae sauce.

    http://money.cnn.com/magazine s/fortune/global500/2009/performers/companies/profits/
    Edited by 2 at 07/10/09 @ 17:01

  • Syrette #55 2 years ago

    What is he on about?

    Nintendo take risks all the time?

    I mean, how many different genres of game can they fit Mario into?

    Nintendo don't rely on the same old boring franchises, mediocre DS titles and fun for a week or two Wii sports games, no sir. Not at all.

    /tin hat

  • Zomoniac #56 2 years ago

    @AphoticCosmos

    That's just turnover, a meaningless figure. Don't Sony lose money on PS3s? So the higher the revenue, the bigger the loss. If Sony sell a £400 TV it might cost them £200 to make it, whereas a £400 copy of Office costs Microsoft about 30 pence to make.

  • Skire #57 2 years ago

    I also have more money than god. Everyone has more money than something that doesn't even exist and is made up by people. I also have more money than Santa, for that matter.

  • man.the.king #58 2 years ago

    "We like to say the environment where PlayStation wins is best for this industry"

    Maybe. But an environment where NOBODY wins is DEFINITELY best for the Consumer :)

  • Spekingur #59 2 years ago

    Does "more money than God" mean that Microsoft could buy the Vatican?

  • Loghorn #60 2 years ago

    or, Sony makes more mistakes than Nintendo.

    Indeed. Sony is repeating the same mistakes with the PS3 that Nintendo did a decade ago with the Virtual Boy, N64, & Gamecube after the NES & SNES eras. Being too arrogant & think that everyone would do all these lovely things for you because of your name brand & recognition. It will come back to bite you.

    If Sony haven't focused on Blu-ray first, & gaming second, & not had made their console more expensive, then they would still be on top. Thanks to them spending billions on Blu-Ray, Microsoft can just pick it right up for their next X-Box system & they wouldn't have to spend that much, as it'll go more cheaper as the years goes by. Sony doesn't exactly own Blu-Ray, they're just supporting it.

  • Deathspleen Verified Gameplay Programmer, Capcom Games Studio Vancouver #61 2 years ago

    God doesn't have any money does he? Why would he need it?

  • abot #62 2 years ago

    @Loghorn Said

    "Sony doesn't exactly own Blu-Ray, they're just supporting it."

    Actually they do...

    [link url=http://en.w ikipedia.org/wiki/Blu-ray_Disc
    ]http://en.w ikipedia.org/wiki/Blu-ray_Disc
    [/link]

    Shuji Nakamura invented the practical blue laser diode.

    Sony started two projects applying the new diodes: UDO (Ultra Density Optical), and DVR Blue (together with Pioneer), a format of rewritable discs that would eventually become Blu-ray Disc (more specifically, BD-RE).[8] The core technologies of the formats are essentially similar.

    The name Blu-Ray is a trademark of Sony. Even the Blu-Ray symbol is a trade mark of Sony. So Sony gets a licensing fee from any manufacturer who uses Blu-Ray technology in their product. Sony is getting their revenge for loosing the VCR betamax war.

  • Loghorn #63 2 years ago

    @abot:

    Actually, Sony isn't the only company that's invested in Blu-Ray, plus they're not the only ones who makes Blu-Ray players. "Sony doesn't even have 30 percent of the IP." (At least according to estimates). Though they are part of the big 4 companies; the four being: Sony, Panasonic, Pioneer and Warner.

    According to..
    [link url=http://news.cnet.com/8301-17938_105-9874317-1.ht ml?tag=cnetfd.mt
    ]http://ne ws.cnet.com/8301-17938_105-9874...[/link]

    Though, with that said, Sony does gain royalities; but it's a very small amount compared to the other IP owners. Plus there's talk about the 500 GB DVD:

    [link url=http://www.neowin.net/news/main/09/04/28/500gb-dvd-un veiled
    ]http://ww w.neowin.net/news/main/09/04/28...[/link]

    Not only would Sony lose money stopping MS from using BD, but Sony would lose in that battle and would lose much face and good will.

    Edited by 4 at 09/10/09 @ 07:42

  • matsumoto #64 2 years ago

    They HAVE to take more risks coz they are in the 3rd place. Selling just the same stuff won't change anything. And about Nintendo sticking to what they can best: Nintendo has provided a lot of innovative stuff in the past, a lot more than Sony imho. But what should he say? The losing party always attacks its competition.

  • funkateer #65 2 years ago

    "They HAVE to take more risks coz they are in the 3rd place."

    Actually they're in 2nd place. Remember they're in the market with PS3 *and* PSP and even PS2 (of which they still shift the handsome amount of almost 60.000 units a week). As such, Sony's market share in the games industry is more than twice that of Microsoft's.