Sony announcement/party 21st July Japan

[scooby_dooby]

I think the disadvanteges faced by XBOX at it's initial launch (launching last, no brand recognition, very few games, lack of 3rd party support) heavily outweighed any 'advantage' given by the demise of dreamcast.

I would also argue that the advantages it enjoys right now(launching first, many games, established franchises and brand names, huge 3rd party support) heavily outweigh the 'disadvantage' that there is no failed dreamcast this time around.

So, I would say the pressure is really on Sony, not so much in Japan, but in NA and Europe for sure.

 

[Tap In]

the "Dreamcast" relevance to X360 = 0.

 

[mckmas8808]

So, I would say the pressure is really on Sony, not so much in Japan, but in NA and Europe for sure

That I can agree with. Thats why I hope Sony brings their "A" game.

 

[Bobbler]

Bobber,

I don't think it's a wierd or strange way to look at it at all. To be honest, the unrealistic situation you proposed (regarding both sides doing "nothing") is what I'd call a strange way to look at this, considering how it's not a realsitc way to look at the situation.

Well that isn't necessarily true -- that is one way of looking at it... a strange way. If Sony does nothing, chances are it will still be the most popular in Japan -- if microsoft does nothing it will still be the same as it was before. Sony could do nothing out of the ordinary (thus no pressure) while Microsoft does everything and Sony will still likely beat the pants off Xbox2 in Japan.

I don't think that's a valid way to look at it, as both these companies aren't releasing new consoles to do "nothing". They will both do something to secure each different console market. If sony doesn't try hard enough to secure japan, I don't think it will secure itself.


Even last generation sony made a numbe rof moves to block MS out of Japan. They were worried about it then, but even more worried about it now. Sure, perhaps sony doesn't have to work as hard to keep the japanese market compared to how hard MS does to break in, but at the same time this is similar to professional sports.

Analogy:

Team sony won the world series last year and Team Xbox came in last place. Who has more pressure to win the world series this year? Team sony since they are the defending champions? Or Team Xbox since they lost every game last year?

My bet is team Sony since "everyone" expects them to win again, and thus they carry the weight of pressure. Who in professional baseball today carries teh weight of pressure? The blue jays that didn't do squat last year? or the Yankees that have it all and everything to lose? If you've watched baseball lately, the pressure really is on the yankees

Valid points. Except there is more to pressure than just outside pressure. That is what Sony has. Microsoft has internal pressure -- they must work far harder to go from bottom to top than Sony has to to go from top to top. Sony has the means to stay at the top without doing much more work than they already do and the contracts they have, microsoft doesn't -- that is what pressure is.

The sports analogy isn't really correct, because it is the contracts Sony and MS makes that make them successful. Your analogy would make more sense if to win the world series all you needed was a ton of contracts. The winner of the series would keep those contracts (games from first/second/third parties), yet the loser would need to gain tons more contracts to win. No matter how much you spin it, Microsoft has far more work to do than Sony does in Japan market (work = pressure to most).

(PS: I didn't say neither company would do nothing. I used the nothing example to point something out. Then I said if Sony did nothing out of the ordinary (read: what they have been doing for the last 10 years in japan) then... etc etc)

 

[Qroach]

ok, but your point about contracts could be akin to signing high priced free agents to ensure your success. It's baseball man, I can find an analgy to explain anything.

 

[scooby_dooby]

I'd say Sony has HUGE amount of internal pressure as the console business is one of their most profitable business, and is kinda the lifeblood of the company.

MS on the other had, the entire x360 thing could flop like a fish, they'd be fine as a company overall. With that said they must have alot of internal pressure as well because of the huge investment.

I just don't think MS has nearly as much riding on the console race as Sony does. MS has 101 other ways of making money, Sony's not in the same position.
-imagine if they loose badly(they won't) but if they did, $3b in CELL wasted, millions in blu ray R&D wasted, massive losses from overpriced hardware, and no more console cash cow to prop up the non-profitable divisions of sony. They have alot riding on this, that's for sure.

 

[Shifty Geezer]

I'd say Sony pressure is high but not just consoling. They're ina real make-or-break point in the company with their future resting firmly on Cell it seems. They've been struggling with hardware for ages and without some sort of boost from Cell it doesn't look a healthy state to be in.

 

[mckmas8808]

I'd say Sony pressure is high but not just consoling. They're ina real make-or-break point in the company with their future resting firmly on Cell it seems. They've been struggling with hardware for ages and without some sort of boost from Cell it doesn't look a healthy state to be in.

Oh god do they need the CELL to work for them hardware wise. What has Sony been doing the last few years with hardware?

 

[Tap In]

I'd say Sony pressure is high but not just consoling. They're ina real make-or-break point in the company with their future resting firmly on Cell it seems. They've been struggling with hardware for ages and without some sort of boost from Cell it doesn't look a healthy state to be in.

Oh god do they need the CELL to work for them hardware wise. What has Sony been doing the last few years with hardware?

As I noted previously, the PS2 supposedly has been responsible for between 40-60% of SONY's total profitability over the past few years.


It is definitely a BIGGER product for Sony in the big scheme of things but I certainly do not see them faltering this gen.

My guess is that Sony will most definitely outsell X360 Worldwide this gen and possibly in NA too.

The market is getting big enough IMO, that 2.5 consoles can exist peacefully.

 

[mckmas8808]

As I noted previously, the PS2 supposedly has been responsible for between 40-60% of SONY's total profitability over the past few years.

It is definitely a BIGGER product for Sony in the big scheme of things but I certainly do not see them faltering this gen.

Come to think about it if the CELL can become a success because of what it can do in the PS3 then Sony could have a new money baby on its hands.

 

[Carl B]

I'd say Sony pressure is high but not just consoling. They're ina real make-or-break point in the company with their future resting firmly on Cell it seems. They've been struggling with hardware for ages and without some sort of boost from Cell it doesn't look a healthy state to be in.

How is it riding on Cell though? ~$600 million for R&D, and then the rest of the investment in fabs. It's not like these fabs are useless without Cell, and they can always be sold to recoup some losses if it comes down to it. I think that the volume of chips they'll be producing for PS3 and other consumer electronics will be enough though to have justified building these fabs vs outsourcing, and assuming future iterations and future applications for Cell within Sony's products...

I believe the bottom line is that the Cell investment will prove 'profitable' for Sony, whether or not Cell becomes widespread at large. And even if it doesn't, the loss could always be hedged with plant liquidation.