Sony CEO needs coaching

[Sxotty]

It doesn't sound good, it sounds like he is resigning them to failure which is silly to do at the moment.

http://news.yahoo.com/s/ap/20071109/ap_on_hi_te/sony_ceo;_ylt=As8gyoARj4Yn9A7vRz0DZPojtBAF

NEW YORK - The head of Sony Corp., Howard Stringer, said Thursday that the Blu-ray disc format the company has developed as the successor to the DVD is in a "stalemate" with the competing HD DVD format, chiefly backed by Toshiba Corp. and Microsoft Corp.
...
At the same time, he played down the importance of the battle, saying it was mostly a matter of prestige whose format wins out in the end.

"It doesn't mean as much as all that," Stringer said. He added that he believed there was an opportunity of uniting the two camps under one format before he became CEO, and he wishes he could travel back in time to make that happen.

I wish I could travel back in time as well

 

[Bouncing Zabaglione Bros.]

Wasn't there a massive sale of $99 HD players in the US over the last weekend, due to a couple of big chains doing special deals? Supposedly put a dent in Blu-Ray. At the same time, Sony doesn't look like it can get a BR player out for less than $399 this christmas.

Of course it may all be moot, as the whole thing has been dragging on so long, single chip decoders are now arriving for dual format players.

 

[Rangers]

If you bought one of the $99 HDDVD, and a 399 PS3 or BDSP-3000, you have a dual format player for $500 anyway.

 

[Bouncing Zabaglione Bros.]

If you bought one of the $99 HDDVD, and a 399 PS3 or BDSP-3000, you have a dual format player for $500 anyway.

No you wouldn't. You'd have two single format players, one of which is a games machine you might not want. . You could buy a $99 player and buy a lot of movies for $399.

Besides, I think the point of a single chip decoder for both BR and HD is that it should work out quite a bit cheaper than the current dualplayer on the market.

 

[Rangers]

No you wouldn't. You'd have two single format players, one of which is a games machine you might not want. . You could buy a $99 player and buy a lot of movies for $399.

Besides, I think the point of a single chip decoder for both BR and HD is that it should work out quite a bit cheaper than the current dualplayer on the market.

Of course I know it's not really a dual format player. You should have known what I was getting at.

Yes there are huge advantages to a dual format player, but when they're 1,000 bucks it's much better to just buy both formats for 500, a price decreasing nearly daily. That is just to speak to right now. If the dual players can get prices cheap enough of course they will be a better option. That doesn't seem to be in the cards right now.

Also, the Sony least expensive stand alone BD player was 499, and though I haven't confirmed it, I read they were cutting the price "at least 20%" to compete with these HDDVD price slashes, so that means 399 or lower. So you dont have to buy the games player in my example, it's just another option.

 

[Ruined]

If the war is a stalemate, that means all studios will eventually go neutral. No studio will shut out 50% of the profit longterm.

So now whether or not you want to spend $300-$400 more for a BD player over a HD DVD player hinges upon your patience for the dominos to inevitably fall over the next year. $400 is a lot of money to pay for instant gratification when there are a ton of awesome HD DVD movies out already.

 

[nutball]

A stalemate makes zero sense. Even if the studios and the consumers don't care for such a situation (because they can respectively produce and play both formats) the retailers sure as hell will care. Why stock one version of a movie when you can stock two and use up twice the shelf space. Makes sense, no?

 

[Bouncing Zabaglione Bros.]

A stalemate makes zero sense. Even if the studios and the consumers don't care for such a situation (because they can respectively produce and play both formats) the retailers sure as hell will care. Why stock one version of a movie when you can stock two and use up twice the shelf space. Makes sense, no?

Sony's back is against the wall with the PS3. The are committed to BR in the PS3, and the PS3 being a centre-room entertainment console that can do it all. If they back down and go HD, they are left with a very expensive game console that can't play HD movies (assuming HDDVD is the standard) while trying to be the living room entertainment centre.

On the other hand, why should other companies give in to Sony and go Blu-ray (even though it would be easy to just make new standalone players) just because Sony has tied BR and PS together in a sink or swim manner?

The time for agreement and compromise was while the standard was being designed. Now the hardware is out there, the war for the market is on, and no one wants to lose out given they've come this far.

It all will come down to what the consumer jumps for, to what the studios see as being worth supplying once this Chistmas' sales figures have unwound. Those $99 players may tip the balance because (as demonstrated this past weekend), a lot of people will buy them at that price without worrying too much about the cost, and then they are committed to the HD DVD side.

 

[Sxotty]

I was just saying from a mind share pov he kind of bolloxed it up. CEOs are supposed to cheer and shout how great they are in general. Then when things go poorly take millions for retiring. (Where do I sign up?)

Seriously though I just hope this is over sometime soon, but given the PS3 factor as BZB said I don't think it can end even though it is possible the could have HDDVD drive for ps3 I don't think they ever will.

 

[AlphaWolf]

If Toshiba and partners can keep the shelves stocked with sub $200 hd players over the holiday, I think blu-ray will be up against it. Although personally i see no reason to not wait another year and see if one format goes into its death throes.

I'm not sure what stringer is trying to accomplish with his comments.

 

[Bouncing Zabaglione Bros.]

I was just saying from a mind share pov he kind of bolloxed it up. CEOs are supposed to cheer and shout how great they are in general. Then when things go poorly take millions for retiring. (Where do I sign up?)

I'm not sure what stringer is trying to accomplish with his comments.

It sounds like a CEO preparing shareholders for bad news, so when it finally arrives the stock is hit, rather than being completely demolished. He's basically talking down Blu-ray's chances of world domination.

I can't imagine what would happen to their stock prices if the CEO is talking up the success of Blu-Ray, and then a month later they are chucking it all in for HD. Just thinking what that would do to all those people with BR PS3s should make the board quake in their boots. I'm sure there would be class action suits, rebates, recalls for HD replacements, etc. It would be a nightmare for Sony, and one of the reasons they are instead committed to the path they are currently taking.

No one wants the war. Studios hate it, retailers hate it, and consumers hate it. However the licence to print money that the winner would gain from the licensing revenues means that the BR and HD sides of battle only have dollar signs in their eyes. I think Sony has a lot more to lose because of the way they've leveraged BR via the PS3 and their movie studio.

 

[Zaphod]

[...] We were trying to win [...] which we were doing for a while [...] It doesn't mean as much as all that [...] opportunity before he became CEO [...] wishes he could travel back in time...

<conjecture>He doesn't come across a guy who's looking to stay in it to the bitter end at all costs. It almost sounds as if he's readying the ground for a 'due to the follies of my predecessors'-defense in case of failure.</conjecture>

 

[Zaphod]

Just thinking what that would do to all those people with BR PS3s should make the board quake in their boots. I'm sure there would be class action suits, rebates, recalls for HD replacements, etc. It would be a nightmare for Sony, and one of the reasons they are instead committed to the path they are currently taking.

You know, were they to fold tomorrow (not that I think they will), I honestly don't think it would be that bad (worse the longer it goes on). There's probably not much more than a million PS3s out there that are being (to a varying degree) used as HDM players on a somewhat regular basis, and they'd have plenty of spin to go with games always being their primary focus, not in any way devaluing the PS3, throw around some concession freebies to existing owners, and so on and so forth. Sure, there'd be some ruckus, but I wouldn't expect cataclysmic proportions. Recall that UMD (while obviously nor directly comparable) went with a whimper and not with a bang.

 

[Color me Dan]

Kind of ironic that for all intents and purposes, it seems as though the US is all that matters. "Oh no! Wal-Mart and shit is selling cheap HDDVD players! THE WORLD IS DOOMED" I can see that these chains being big and all make a difference... in THAT region.

Ok, so i'm not in a great mood today anyway, but i'm really getting sick and tired of the idea that the market will sink or swim depending on the US. Does Asia and Europe even count in your world? Lets just TRY to think in a bigger perspective people, Beyond3d is international in it's audiance so i don't see how this would be so problematic. I've been sitting on this for some time now and perhaps my outburst is dissproportional to the subject at hand, it's very general in it's scope really.

Could someone post sales figures that are relevant so that we may see the difference in preference and sales according to region perhaps? Maybe Mr. Stringers coments could be better understood through those rather then speculating as to their meaning in a general sense.

 

[Sxotty]

Kind of ironic that for all intents and purposes, it seems as though the US is all that matters. "Oh no! Wal-Mart and shit is selling cheap HDDVD players! THE WORLD IS DOOMED" I can see that these chains being big and all make a difference... in THAT region.

Ok, so i'm not in a great mood today anyway, but i'm really getting sick and tired of the idea that the market will sink or swim depending on the US. Does Asia and Europe even count in your world? Lets just TRY to think in a bigger perspective people, Beyond3d is international in it's audiance so i don't see how this would be so problematic. I've been sitting on this for some time now and perhaps my outburst is dissproportional to the subject at hand, it's very general in it's scope really.

Could someone post sales figures that are relevant so that we may see the difference in preference and sales according to region perhaps? Maybe Mr. Stringers coments could be better understood through those rather then speculating as to their meaning in a general sense.

We were commenting on the CEO of a Japanese company. Not on the US retailers. That is another thread if you are upset about it go there to vent. If the companies have their way they would have a different format in the EU and US entirely so they can screw over both markets to the maximum, so don't worry what happens in the US won't ruin your corner of the EU. Sweden is every bit as important as Georgia to the companies don't worry.

 

[Bouncing Zabaglione Bros.]

<conjecture>He doesn't come across a guy who's looking to stay in it to the bitter end at all costs. It almost sounds as if he's readying the ground for a 'due to the follies of my predecessors'-defense in case of failure.</conjecture>

IIRC, when he came in, some did consider it a bit of a poisoned chalice given the problems Sony had been having and delays in Blu-ray and PS3.

There was some suggestion when he arrived that he was there to wield the axe, and if things went wrong he would take the fall. Much easier for the Sony heirachy to get some gai-jin to do the dishonourable dirty work and boot him out if it all goes pear shaped.

 

[AlphaWolf]

Kind of ironic that for all intents and purposes, it seems as though the US is all that matters. "Oh no! Wal-Mart and shit is selling cheap HDDVD players! THE WORLD IS DOOMED" I can see that these chains being big and all make a difference... in THAT region.

Ok, so i'm not in a great mood today anyway, but i'm really getting sick and tired of the idea that the market will sink or swim depending on the US. Does Asia and Europe even count in your world? Lets just TRY to think in a bigger perspective people, Beyond3d is international in it's audiance so i don't see how this would be so problematic. I've been sitting on this for some time now and perhaps my outburst is dissproportional to the subject at hand, it's very general in it's scope really.

Could someone post sales figures that are relevant so that we may see the difference in preference and sales according to region perhaps? Maybe Mr. Stringers coments could be better understood through those rather then speculating as to their meaning in a general sense.

For the most part its very hard to get reliable numbers out of anywhere but Japan and North America. So in terms of media mind share, they matter the most.

 

[Color me Dan]

I feel i need to appologize a bit for my post, but it seems to have been taken rather well. Now that i re-read the topic i was quite out of line and off topic.

Back on topic i do agree that Stringers choice of words is a bit odd for a company who's major economical future depends on the success of Blu Ray. I wonder how long we have to wait for a sub 300$ player with decent performance that isn't a PS3. They have the technology to bring it out and inhouse IPs they can levrage, like Cell. Then again, they sold off all their Cell initiatives and are stopping Cell development. Wasn't Cell going to be in everything at one time? THat's a different discussion though.

 

[Zaphod]

Another Stringer quote from the same talk:

Asked about the battle between Sony's Blu-Ray high-definition DVD format and the competing HD DVD, Stringer said if Sony lost out, it would have to change the harddrive [my bold] for its PlayStation, but it wouldn't hurt the conglomerate too much beyond that.

I'm assuming he's referring to the ODD (and/or just doesn't know what the hell he's talking about). Still a bit strange that he'd mention it - even as a hypothetical - in the first place.

 

[Skrying]

Stringer is... well... let's just say I think Sony has major management problems.