NPD September 2007

It's not that the PS3 doesn't have some good games. It does. It's just that there isn't any brand power behind them. Sony fans wanted a new GT, MGS, FF and GTA game to get them interested again, but more and more of them were drawn to Halo 3 and Gears of War while they were waiting. It's going to be harder now for Sony to get any of those gamers back. Expecially at ridiculous prices.
 
I guess they are under control because there are more producers of the special laser used by both hd-dvd and br. Competition and availability brought down the cost of parts. (my guess)

But I don't think sony should have launched BR this xmas. Just the ps3. I think they should have launch BR when they did and fought hard with standalone players.
Today Blu-ray player sales are still lagging behind HD DVD player sales while Blu-ray sell more softwares thanks to PS3. If they hadn't launched PS3 with Blu-ray it would have been disastrous for Blu-ray. If it were not for PS3, mass production of Blu-ray hardware parts and mass replication of Blu-ray disc wouldn't have occurred either, let alone the $399 40GB model at the end of 2007. It's a great value proposition considering Xbox 360 20GB w/ HDMI is $349 and Live subscription is $60 for a year.

Also older PS3 exclusive games are still relevant unlike in other platforms because they were not accessible for most people due to the high entry cost before the $399 model.
 
Today Blu-ray player sales are still lagging behind HD DVD player sales while Blu-ray sell more softwares thanks to PS3. If they hadn't launched PS3 with Blu-ray it would have been disastrous for Blu-ray.
Perhaps, but not necessarily disastrous for Sony. Blu-ray could still fail, and Sony would be stuck manufacturing units long after its demise. Having the blu-ray in PS3 may be more costly in the end.

If it were not for PS3, mass production of Blu-ray hardware parts and mass replication of Blu-ray disc wouldn't have occurred either, let alone the $399 40GB model at the end of 2007. It's a great value proposition considering Xbox 360 20GB w/ HDMI is $349 and Live subscription is $60 for a year.

Actually you can pick up 13 months of live for $40. An argument could be made that Live is worth paying for while PSN is not quite there yet.

Also older PS3 exclusive games are still relevant unlike in other platforms because they were not accessible for most people due to the high entry cost before the $399 model.

$399 will still be unaccessible for a lot of people.
 
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It's not that the PS3 doesn't have some good games. It does. It's just that there isn't any brand power behind them.

The developers have their own following. Most are using the launch opportunity to introduce new franchises. 2nd gen games like R&C are familiar to gamers too.

Sony fans wanted a new GT, MGS, FF and GTA game to get them interested again, but more and more of them were drawn to Halo 3 and Gears of War while they were waiting.

Yes, but some will be drawn to PS3 games also.

It's going to be harder now for Sony to get any of those gamers back. Expecially at ridiculous prices.

The 40Gb PS3 is $50 more expensive than the 20Gb one, but you'll need to add extra $50 for Xbox Live every year. On top of that, add free Blu-ray viewing capability and 5 free discs to PS3 at no extra cost. Don't forget better build quality. Content lacks some star power, but a few are finally showing up. The new titles can be pretty good also (I have already highlighted them).

The point is Sony has a good product on-hand. What they need to do next is to pile even more goodies on top, and then propagate the good news and grow the community. Even though PS Home is delayed to next year, the marketing should be able to move first by starting to prime the user community (using the beta).

Like I said, I don't expect PS3 to overtake Xbox 360 and Wii this season, but I can still see Sony coming out in some areas (if Sony executes well).
 
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OTOH, what make you think Xbox 360 gets more exclusives and continues to get relatively better quality multiplat games? Making games multiplatform is more necessary than the last-gen due to the ever-increasing development cost for major game productions.

Microsoft can easily provide conditions where an exclusive would make more money then a multiplatform title.

Something else to consider is that US/EU developed games just don't sell in Japan. The most an EA or other publisher has made is 200K; only platformers published by Sony or Nintendo, developed by Rare or Naughty Dog, have been able to do well.
So, western developers and publishers will more then likely ignore the Japanese market alltogether. And look how the EU/US market looks like right now:
~11-11.5 X360
~8.5-9 million Wii
~3.5-4 million PS3
That is the user base that EA, Ubi, Take2, Activision and others are selling to. Microsoft has sold almost three times as many units, which means that they can probably compensate the developer for not releasing on the PS3.
 
I disagree.

Divergent and unique games are great, but they aren't the meat and potatos of the typical gamer. They need to have GREAT racers, shooters, sports games, action games etc, THEN add the quirky experimental games into the mix, but not before.

You mean the majority of great 360 games that are also multiplatform?

By diversification I do not mean unconventional/experimental games only. I am also referring to new, improved and exclusive franchises. A game for example that improves and surpasses what was already done by other titles of the same genre and is exclusive. New innovative features that add to the experience. This could be a racing game, a shoot em up or an RPG.

The 360's attach rate is consisted a lot from multiplatform released games.

This is exactly why I was thinking twice about getting a 360. I check forum's and friends of mine that bought a 360 and the majority of their games if not all are multiplatform. I try to find exclusive games that would interest me and surprisingly they were fewer than I initially thought. Future 360 releases though are telling a different story, but so does the PS3's.
 
Microsoft can easily provide conditions where an exclusive would make more money then a multiplatform title.

Something else to consider is that US/EU developed games just don't sell in Japan. The most an EA or other publisher has made is 200K; only platformers published by Sony or Nintendo, developed by Rare or Naughty Dog, have been able to do well.
So, western developers and publishers will more then likely ignore the Japanese market alltogether. And look how the EU/US market looks like right now:
~11-11.5 X360
~8.5-9 million Wii
~3.5-4 million PS3
That is the user base that EA, Ubi, Take2, Activision and others are selling to. Microsoft has sold almost three times as many units, which means that they can probably compensate the developer for not releasing on the PS3.

Flip side of that argument is that there are enough PS3s, even at 1/3 the user base of the X360, for developers to leverage the game across another platform.

The big publishers probably will stay multiplatform. Many of them published for the Xbox almost to the end.

Of course there will be deals, exclusives, timed or not. Rumors of Bioshock for the PS3 have floated. As well as that's sold, the publisher there would see good sales if they released for PS3 now. But MS may have paid them enough that they wait.
 
That's exactly what I've been talking about - the difference in the user base gives MS enough leverage at the moment to secure exclusives if they really want to. It doesn't stop anyone from going multiplatform if they prefer to, and as evidenced by UT3, even Sony can offer some advantages. But MS does have the better position.
 
Ports from PC will favor PS3 soon with ever-increasing data size. UT3, Rage, they don't fit on 1 DVD without cutting maps on consoles as told by the developers themselves. Then there can be more deals with PC MMO developers such as NCsoft.
 
Don't look at the installed base of the PS3 in the US, look at how many games they buy. Skate from EA, an original IP, lauded as a new fresh look at skateboarding, bearing a decent GameRankings score of 87% (the sixth best game on the PS3), has sold the pathetic 30k in its debut month of September. The Xbox 360 version netted 175k for the same period.

I don't expect it would be very hard for Microsoft to talk publishers out of ports to a difficult platform bringing back such amazing returns.
 
US is experiencing economic difficulties too. That is actually my most worrying factor.

You are right to worry, but not about the entertainment industry. People tend to spend a lot on entertainment in hard times; Hollywood had its best years during the Great Depression. The Atari 2600 bloomed during the disastrous Carter administration.
 
You are right to worry, but not about the entertainment industry. People tend to spend a lot on entertainment in hard times; Hollywood had its best years during the Great Depression. The Atari 2600 bloomed during the disastrous Carter administration.

:LOL: That's true (and I agree), but people can go to cheaper entertainment or Internet.

Don't look at the installed base of the PS3 in the US, look at how many games they buy. Skate from EA, an original IP, lauded as a new fresh look at skateboarding, bearing a decent GameRankings score of 87% (the sixth best game on the PS3), has sold the pathetic 30k in its debut month of September. The Xbox 360 version netted 175k for the same period.

You have to look at both (as % of installed base and % of uptake for subsequent weeks. PS3 game selection is still smaller than 360's, so the game may still be visible). I didn't even know the game exists on PS3 to be honest :) The other problem that may have dampened the peak is PS3 games are crammed into the last quarter of this year.

Games like Naruto and Ace Combat 6 are going to sell a lot of units. A popular license with boys and a well known flight game

Yes, Naruto would also match well with PS3, Wii in Japan and manga fans oversea, especially if they recreate the Ninja villages in Playstation Home and have Naruto costumes as unlockables (Akatsuki's uniform should be nice).

*sigh* Since I started ranting... I might as well finish it. This is related to how Sony market or rather unmarket PS3. :LOL: In general, the numbers are interesting, but they are usually not so interesting compared to the ideas/perception/driving factors behind those numbers. That's where marketing breathes and lives.



The issue with Sony's approach is they are building their business bottom up (whereas westerners tend to do it top-down, from market towards engineering). So a lot of Sony's investments went into the infrastructure and long term survivability, but these are generally behind the scene, defensive/passive, wasteful, seemingly unfocused, and won't be relevant/visible until later in the cycle (e.g., It took about a full year for Xbox 360's overheating problems to surface big time).

There are a lot of relevant technology already in place for PS3, their marketing is lagging seriously behind in defining and packaging the experiences. For something as ground breaking as EyeToy/PS Eye, all it got was a peripheral status (like a printer, heh). Sony will probably wait until Microsoft or Apple has done something wonderful and integrated before they cried "We did it first" or "We don't want to define our experiences around EyeToy" (Kind of like Creative Nomad vs iPod in the MP3 Player scene)

PS Eye has its own pockets of fanbase... find some partner(s) to grow it if Sony can't afford to. The experience should be more fundamental than just a few standalone/unrelated games and mini-games.



Granted, there has been some marked improvement since Stringer took over although the efforts are started by Kutaragi. At least they bet on the "Matrix" vision (Playstation Home) and it seems to have grown within Sony as a fundamental platform for all its devices. However, even if the technology is not totally ready yet (or only ready for 1 device like PS3; marketing can usually move first in a smaller scale -- if coordinated well).

In my experiences, the other negative side effect of doing things bottom-up is people tend to forget or grow tired of the vision after a long development time. Then by the time it's ready for the market, organization structure/goals may have changed, marketing finds that the finer details are lacking (because the last 20% polish usually takes up 80% of the time and they have used those time up for the long term infrastructure), and worst of all, everyone -- including the consumers -- lost sight of the original vision. People don't feel like saying the same "old" thing again. Doing things top-down typically require short, tight, organic interaction (and frequent frustration) between marketing and technical teams. In real life, you'd need both approaches anyway, but I can't see the top down part in Sony yet. This is because when the marketing vs technical team conflicts are not discovered and resolved early/internally, these rough edges will show up in the market.



For what it's worth, Sony seems to have settled on a key theme for its first year projects ("Augmented Reality" -- blurring the boundary between fiction and reality). Demonstrate/prove it (don't just talk about it) ! It's as simple as giving more details/resolution and realistic sound to movie playback (Blu-ray's exceptionally high specs), Resistance's ultra-realistic glass modelling and smooth/fast gameplay that makes the control feels like an extension of my arm (Things react/interact immediately the moment I twist my fingers even in a busy 40-player scene, controlwise and visually. This was credited to dedicated servers, and Insomniac leaving enough computing resources for worst case scenarios so that they can be called on anytime), MotorStorm's mud and assorted car physics, Warhawk's volumetric cloud and SIXAXIS flight control, GT's surreal photorealism and car simulation, Uncharted's expression, muscle emulation and layered movements, HS's in-game acting and emulated SSS, Folklore's SIXAXIS tug-of-war (It really feels like it :) ), LBP's behavioural physics, Eye of Judgment's "magic" in realizing imagination in front of your eyes, all integrated into Playstation Home's virtual world. Most importantly, they are still fun.

All these can be articulated or even experienced by the gamers themselves today. The notion can further be reinforced by real Cell researches (e.g., Does the autonomous car work at all ? :LOL: Seriously, I want to see for myself; and do a Cell-powered "Aliens" sentry gun using PS Eye pretty please ? :p )

For next year, I guess someone in Sony also has the vision to extend these augmented reality to social gaming/networking via PS Home. Blu-ray's interactivity and network specs (BD+) should be finalized around end October 2007. So they can be ready for major rollout and feature integration in 2008 too. So on and so forth...


So Sony, if what I say is off (which is likely since I only have partial information from external sources), then I will gladly apologize. But if there is some elements of relevance to what I mentioned, then change it. I have made the same mistakes myself in large/huge organizations. The worst thing a management can do is to stay status quo, or to pass the instructions down into a black hole. I can see from outside that there has been some actions taken, but I don't they trickle down to the consumers yet. Please follow through personally and relentlessly for the familiar nth freaking time (I know, I know) for a bright^H^H^H^H^H^H^H^H our selfish fun.

We should come first. ^o^
 
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Nope... there is also R&C (What is the equivalent on 360 ?). How about Uncharted ? (which is causing waves too over at GAF and the press) Eye of Judgment ? Wipeout HD ? UT3 looks like it's going to slip. Also, don't forget great titles like Warhawk, Resistance, MotorStorm, Heavenly Sword (short but sweet by most accounts) too. They all add up to the package. That is why Sony need to consolidate the experiences since it is so convenient for people to ignore the goodies :)

Rare kiddy games would match R&C(all would get overawed by Mario Galaxy anyway). Uncharted, easy GOW, with online. I think those 2 (insomniac and nd) games will sell to the existing userbases but not the type to increase userbases.

As for the rest, i seriously doubt they will move a $399 consoles, some of which are already out and not doing a thing to save PS3.

As a sidenote, interestingly, GOW at this point of time pre-release, was already hyped by most game press as the Halo in waiting and received glowing reviews at every pressplay events. Uncharted, i am not seeing that kind of hype, it has been getting better previews but not GOW great. So again, either Sony is not marketing their games right, or really not developing them right...


What about Asia + Europe ? US is experiencing economic difficulties too. That is actually my most worrying factor.

What happens in North America will have an effect on Asia and Europe. 360 may have bombed in Japan, but the offshore success of 360 and home domination of Nintendo, Japanese developers are not going to ignore 360 for a next gen budget game. While the opposite may not be true for PS3 failure to gain a foot in North American soil.
 
The issue with Sony's approach is they are building their business bottom up (whereas westerners tend to do it top-down, from market towards engineering). So a lot of Sony's investments went into the infrastructure and long term survivability, but these are generally behind the scene, defensive/passive, wasteful, seemingly unfocused, and won't be relevant/visible until later in the cycle (e.g., It took about a full year for Xbox 360's overheating problems to surface big time).

I think the issue with Sony is the same ol' ones. Lots of internal bickering, politics and just too slow/ancient in catching up to the new wave of tech entertainment.

Case in point, the infamous "Matrix" vision, Xbox and then Xbox 360, they came silently and have presented the vision that Sony once loudly promised. Sure you dont jack into Xbox Live VR style but we can agree that is the best you can get with today's tech.

IMO dispensing with Kutaragi (and all his WIP like Sony Cell integration cum semiconductor roadmap) is only pushing Sony behind in the tech race.
 
Ports from PC will favor PS3 soon with ever-increasing data size. UT3, Rage, they don't fit on 1 DVD without cutting maps on consoles as told by the developers themselves.

PC gaming is falling back at an incredible rate. According to the leaked NPD statistics, only a single game has sold more than 100K copies, and that was a Sims game. I wouldn't count on too many PC ports in the future.

Then there can be more deals with PC MMO developers such as NCsoft.

NCsoft is a great win for Sony. I wonder what offers Blizzard's getting, though.
 
What happens in North America will have an effect on Asia and Europe. 360 may have bombed in Japan, but the offshore success of 360 and home domination of Nintendo, Japanese developers are not going to ignore 360 for a next gen budget game. While the opposite may not be true for PS3 failure to gain a foot in North American soil.

It's already evident in Capcom's strategy. Titles that are only interesting to the japanese market won't get a nextgen version because of the small PS3/X360 user base, for example Monster Hunter's only coming for the Wii. Titles with worldwide appeal like DMC, RE and the rest, are released on both platforms, because PS3 on its own wouldn't be enough either. I expect other publishers to follow, and yes, it's more and more likely that MGS4 will only be a timed exclusive.
 
I can't agree with the notion that "Sony is sound on technical design, but falling back on marketing" - is there any *technical* reason for the love Europeans have for Sony? Is it that they anticipate their typically European needs for greater optical disc capacity? Or is it their rich cultural history needs more CPU power?

Bollocks. Sony marketing works in Europe: Sony has its fingers around the throat, balls and wallet of each and every "lifestyle" magazine; Sony advertises heavily on the continent-wide soccer championship; Sony is "cool".

At the same time, Microsoft on the continent is concentrating its effort into bamboozling governments to buy zillions of copies of Windows, and fighting losing battles against ridiculous trials. (You evidently don't have the right to ship a media player with your OS if your name starts with Micro and ends with soft according to European regulations; I wonder when the European Commission will force Microsoft to sell "Xbox 360 N", a version without media playing capabilities in the dashboard.)
 
I think the issue with Sony is the same ol' ones. Lots of internal bickering, politics and just too slow/ancient in catching up to the new wave of tech entertainment.

Very true. I am sure there are still daily conflicts internally but Blu-ray and gaming integration is working out well internally so far. Externally, that's where their marketing fell through.

Case in point, the infamous "Matrix" vision, Xbox and then Xbox 360, they came silently and have presented the vision that Sony once loudly promised. Sure you dont jack into Xbox Live VR style but we can agree that is the best you can get with today's tech.

:p I wouldn't call Xbox Live the Matrix vision. It's PC-based online gaming + content download. PS Home (The Matrix vision) offers a lot more dimension and business opportunities rolled into one. Truth to be told, it's a difficult one to implement since even PC "Matrix" didn't do so well (SecondLife has scalability and performance issues).

The danger is of course always getting caught up with the next big thing, and never release anything.

IMO dispensing with Kutaragi (and all his WIP like Sony Cell integration cum semiconductor roadmap) is only pushing Sony behind in the tech race.

I don't necessarily think so. I believe what Sony needs most now is to tackle the software + hardware + content + marketing integration. It is a perpectual and expensive problem that only they themselves can solve.

Sony can always strike partnerships and ventures to achieve their semicon goals in the future. It's an economy of scale game. As I understand, no one except Intel are quite "there" yet. So the players should always be receptive of partnerships and cash infusion. I don't think Sony is throwing everything semicon anyway. Carl Bender is more into that area, so I'm sure he'll chime in to clarify if necessary.

I can't agree with the notion that "Sony is sound on technical design, but falling back on marketing" - is there any *technical* reason for the love Europeans have for Sony? Is it that they anticipate their typically European needs for greater optical disc capacity? Or is it their rich cultural history needs more CPU power?

But we don't hear any technical reason for European's love for PS2 does not mean that the technology is not working (e.g., "No one" rave about AAC or ARM when iPod is selling, but they clearly serve their purposes in the grand scheme of things). Typically, technical requirements like CPU and GPU performance need to fit into marketing's vision/needs. In PS3's case, that original vision was a technology driven one instead of a market drive one. As a result, marketing need to fill in the meat after the fact. The developers have managed to complete the first wave of titles with some impressive results, and even prototyped a preliminary "Matrix" with business potentials. So now, marketing needs to "take over", refine, consolidate, propagate and grow the result. Unfortunately, the process is very leaky... resulting in a fragmented picture.

Bollocks. Sony marketing works in Europe: Sony has its fingers around the throat, balls and wallet of each and every "lifestyle" magazine; Sony advertises heavily on the continent-wide soccer championship; Sony is "cool".

How is that working for PS3 (not PS2) so far ? Could it be even more impactful ? Could it be more effective in the sense that they don't have to spend so much on marketing but the product still sell ? In US, the picture is somewhat different.

At the same time, Microsoft on the continent is concentrating its effort into bamboozling governments to buy zillions of copies of Windows, and fighting losing battles against ridiculous trials. (You evidently don't have the right to ship a media player with your OS if your name starts with Micro and ends with soft according to European regulations; I wonder when the European Commission will force Microsoft to sell "Xbox 360 N", a version without media playing capabilities in the dashboard.)

Well... that's MS's history. They can't blame anyone can they ? Just like Sony can't blame anyone else for their marketing.
 
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PC gaming is falling back at an incredible rate. According to the leaked NPD statistics, only a single game has sold more than 100K copies, and that was a Sims game. I wouldn't count on too many PC ports in the future.
NPD is retail, it does not track downloads. I'll wager that Steam has taken a significant chunk of the sales of The Orange Box. I was personally astonished to see how much is available on Steam after having ventured into it recently for the first time in about a year.
 
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