Sony gaming exec: Broadband prices need to drop

j^aws

Veteran
Sony gaming exec: Broadband prices need to drop
By Grant Gross, IDG News Service
June 22, 2004 3:30 pm ET
Gaming console vendors need broadband providers and television manufacturers to lower prices on their products to help gaming grow on the Internet, said Kazuo Hirai, president and chief executive officer of Sony Computer Entertainment America Inc.

Hirai, speaking at a Congressional Internet Caucus event in Washington, D.C., Tuesday, called on broadband providers to reduce prices as a way to drive more U.S. residents to broadband and drive more interest in console gaming through the Internet. Television manufacturers can help spur interest in console gaming, he added, by pricing high-definition television (HDTV) sets in a range that's affordable for average U.S. residents.

With the average monthly cost of broadband, about US$40, a customer could buy a new PlayStation 2 game every month, said Hirai, whose company sells the PlayStation consoles. "(Broadband) has got to be available for an affordable price," he said. "Forty dollars for broadband gets you just the pipe. You're not getting any content."

Hirai then corrected himself, saying free Web sites do provide content, but not "compelling" interactive content like games. "We're going to hold up our end of the bargain in providing compelling content," he said.


The gaming console industry also needs help from television manufacturers, he said. Future versions of gaming consoles will be able to provide HDTV-ready games, but the popularity of those kinds of games will depend on HDTV set prices, Hirai said.

Although Hirai was speaking to an audience made up largely of congressional staffers, he avoided talking about legislative approaches to gaming. Protecting copyrights will become increasingly important to gaming companies as more people subscribe to broadband service and can share software quickly, he said, but he stopped short of advocating legislation solutions to copyright protections.

Hirai also addressed a long-time criticism from Washington that video games are too violent by saying 85 percent of video games sold are rated "E" for everyone or "T" for teen.

Instead of focusing on legislation affecting video games, Hirai stressed the growth of the video gaming market. Sales of video games and related hardware was about $10 billion in the U.S. in 2000, rivaling the box-office receipts of the movie industry. About half of all U.S. residents ages 6 and older play video games, he said, and the average age of a U.S. gamer is 29, not a teenager, as is the misconception, he said.

Sony has sold 100 million PlayStations since the console was released in Japan in 1994, and 70 million PlayStation 2 units since it was introduced in 1999. About 30 million PlayStation 2 units have been sold in the U.S., and about 10 percent of U.S. users have purchased network adapters that allow them to play games online.

The U.S. leads the world in adoption of network-enabled PlayStation 2 units, with 78 percent of network-enabled PlayStations in the U.S. But about a third of players continue to use network adapters with dial-up speed connections.

Hirai predicted the video game industry and broadband providers would be able to feed off each other, as the availability of more online games drives more gamers to broadband, and the availability of inexpensive broadband creates more gaming customers. Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games -- instead of the per-month subscription charged by many PC-based online games, Hirai said. Console gamers, who play most online-enabled games for free right now, need to see a tangible benefit for paying online fees, he said.

"The jury is still out on how much revenue can be generated (online), especially with this generation of hardware," Hirai said. "For the next generation console, online is going to be like air conditioning in a car. You're going to need it."

No matter what business model console makers work out, online gaming is the future of consoles, Hirai added. "Interactive entertainment ... is already huge, and has the potential to get bigger," he said.

The Congressional Internet Caucus is a group of more than 170 lawmakers interested in educating their colleagues about the promise of the Internet.

Source

HDTV support seems guaranteed but what spec? The rest has a feeling of deja vu from PS2...CyberSpace anyone? ;)
 
Jaws said:
HDTV support seems guaranteed but what spec?

DeanoC said:
The general feeling among devs seems to be 720p will be 'the' resolution for next generation. Lots of devs are looking at putting HDTV on every developers desk.
(from here: http://www.beyond3d.com/forum/viewtopic.php?t=13169&postdays=0&postorder=asc&start=20 )




Jaws said:
Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games

Source
that news is quite big , IMO ..
 
Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games

He's talked about this before. It would appear to be a rational decision if the online music industry is indicative of consumer mentality in general. For example, seemlessly buying a single song for $0.99 is reasonable, hell it's great. Paying $20.00 a month for a static number of downloads isn't.
 
Vince said:
Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games

He's talked about this before. It would appear to be a rational decision if the online music industry is indicative of consumer mentality in general. For example, seemlessly buying a single song for $0.99 is reasonable, hell it's great. Paying $20.00 a month for a static number of downloads isn't.
o
 
Vince said:
Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games

He's talked about this before. It would appear to be a rational decision if the online music industry is indicative of consumer mentality in general. For example, seemlessly buying a single song for $0.99 is reasonable, hell it's great. Paying $20.00 a month for a static number of downloads isn't.

Pay for what you can eat/want. Makes great sense! Not paying for [everything] thats on for offer (annual/monthly fee).
 
micro transactions are the dumbest thing I've ever heard. The majority of people can understand a single transaction a month or year, but they don't want to see things broken down further. It's too hard to track how much you're actually spending, and you're actually getting less money for your dollar. It's just a clever way of saying your're going to pay for every game individually.

IMO, micro transaction are the wrong way to go, and they are trying to fix something that isn't broken at all.
 
Qroach said:
micro transactions are the dumbest thing I've ever heard. The majority of people can understand a single transaction a month or year, but they don't want to see things broken down further. It's too hard to track how much you're actually spending, and you're actually getting less money for your dollar. It's just a clever way of saying your're going to pay for every game individually.

IMO, micro transaction are the wrong way to go, and they are trying to fix something that isn't broken at all.

There are micro transactions on Xbox Live...
 
Qroach said:
micro transactions are the dumbest thing I've ever heard.

Seriously Q, what was Apple thinking with that whole iTunes thing... Paying for what you want is such a repulsive idea after all. Or those dumbasses who buy individual ringtones -- so inexcusable.
 
What is this? The dynamic PS2 duo?

There are micro transactions on Xbox Live...

No it doesn't. Paying a few dollars like 3 or 4 for a new level addon isn't a real micro transaction. Do you really know what a micro transaction is? It's getting down to a level where you pay by the minute, or for extra lives, hence the 99cents nonesense.

Xbox live is a service, and for a service monthly fees makes sense. going beyond that won't appeal to the average person that I already afraid to use thier credit card on the internet.

Seriously Q, what was Apple thinking with that whole iTunes thing... Paying for what you want is such a repulsive idea after all. Or those dumbasses who buy individual ringtones -- so inexcusable.

So what, are you going to do break it down by multiplayer level in a game? That model won't work for games. I really don't know how you can compare ringtones and downloading mp3's to video games. You're talking abotu things with can be interacted with. 10 buck on I tunes get's you 10 songs. Doesn't I tunes also offer you a monthly membership with more freedom to download as well? 10 bucks on xbox live gets you a month membership and you can play 99% of the online enabled games.

You guys are falling for them breaking it down so it doesn't look like you're paying for every game individually. You're still doing that ya know. You guys can go play and pay for every game if you want, but I'm still going to get more for my money. I've probably had 12 games with xbox live support and I've played them all online. There's no way in hell I'd have that many xbox live games if I had to pay individually for each one, each time. That's idiotic.
 
What is this? The dynamic PS2 duo?

Me and Vince disagree on many other levels trust me, we both share a common hatred for ignorance though.

Paying a few dollars like 3 or 4 for a new level addon isn't a real micro transaction.

Suuuuure it isn't. It is, end of story, and this is exactly what Sony means when they mean "micro transaction"

From the article:

"Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games"

I mean.. come on now. Your just trying to make up your own definition to fit said rhetoric...

Xbox live is a service, and for a service monthly fees makes sense. going beyond that won't appeal to the average person that I already afraid to use thier credit card on the internet.

And it ALREADY DOES GO BEYOND THAT using micro transactions.


You guys are falling for them breaking it down so it doesn't look like you're paying for every game individually. You're still doing that ya know.

You have a choice if you want to pay for an extra level, track, car or not.





But at any rate dude, I love ya, I own Xbox live and I don't wanna argue for days over this.

I'll state my visions and ideals and you'll state yours, we'll have to just come to a agreement.
 
Unless someone's changed the definition of microtransaction in the last little while... I was under the impression that a microtransaction is formally defined as a payment transaction too small to be economically viable when processed by a credit card.

With xbox live, that $5 goes over your credit card, therefore by definition it is not a microtransaction.

In any case, drawing an analogy between iTunes and videogames isn't a particularly good one IMHO.

iTunes is different because music is a singles driven business. You don't generally need the rest of the songs on an album to enjoy a single track off of it, and the marketing and promotion is almost entirely single based. So breaking apart the albums into single tracks makes sense for the consumer.

On the other hand, when you go rent a video, you don't rent the movie in 5 minute chunks and pay for it with a series of 24 micropayments. I certainly don't want to see just one particular scene of a movie... it would make no sense without the rest of it.

Likewise, I certainly don't want to play MGS 5 or Splinter Cell 5 by paying for 15 minute pieces of gameplay at a time.

Games, like movies, tend to be marketed and sold as an artistic unit.

That said, I can see this working for certain specific genres of games (DDR comes to mind, and something like xbox Live Arcade comes to mind, maybe driving games or games with no plot or story).

But for the vast majority of games, I just don't see this idea being applicable, except for bonus content and addons.
 
Me and Vince disagree on many other levels trust me, we both share a common hatred for ignorance though.

Fair enough. So I guess by that logic you hate yourself for saying xbox live has micro transactions? hmm strange...

Suuuuure it isn't. It is, end of story, and this is exactly what Sony means when they mean "micro transaction"

No it's not a Micro transaction. A micro transaction is when you get billed for playing only that game, per hour, per minute, per second, even per life used etc... Telephone companies track micro transactions. Ever see your phone bill? I did reaserch on seeing how you could bill for something like that if you were to create an online gaming service with billing system from scratch. There's only one payment system capable of micro trasnactions and it was called Portal. You may have heard of it, Microsft and IBM both use it, along with certain telecom companies.

"Sony's vision for an online business model is based on microtransaction -- gamers paying small fees for added content or levels in games"

I mean.. come on now. Your just trying to make up your own definition to fit said rhetoric...

Um, perhaps these sony reps need to get their terminology straight. regardless of what I took from what vince originally said, REAL micro transactions are a bad idea.

And it ALREADY DOES GO BEYOND THAT using micro transactions.

No... iXBox live doesn't use micro-transactions. Thier billing system in place for xbox live isn't setup to do that.


I'll state my visions and ideals and you'll state yours, we'll have to just come to a agreement.

We don't really have to agree on anything... that's the way it works.
 
aaaaa00 said:
...
In any case, drawing an analogy between iTunes and videogames isn't a particularly good one IMHO.

iTunes is different because music is a singles driven business. You don't generally need the rest of the songs on an album to enjoy a single track off of it, and the marketing and promotion is almost entirely single based. So breaking apart the albums into single tracks makes sense for the consumer.

On the other hand, when you go rent a video, you don't rent the movie in 5 minute chunks and pay for it with a series of 24 micropayments. I certainly don't want to see just one particular scene of a movie... it would make no sense without the rest of it.

Likewise, I certainly don't want to play MGS 5 or Splinter Cell 5 by paying for 15 minute pieces of gameplay at a time.

Games, like movies, tend to be marketed and sold as an artistic unit.

....
But for the vast majority of games, I just don't see this idea being applicable, except for bonus content and addons.

VERY well-put.

I could go for the idea of paying $5 for maybe 3 more mechassualt missions (for example), but I sure as heck don't want to have to pay to DL the Ragnorock, etc.

I'm for love and broadband for all. 8)
 
Qroach said:
Um, perhaps these sony reps need to get their terminology straight. regardless of what I took from what vince originally said, REAL micro transactions are a bad idea.
Probably, though I doubt there's a huge concensus as to what exactly that means price-wise. Gamers paying a buck for an extra level or two is certainly "small" and "inconsequential" in the minds of many gamers, whether they technically consider it "micro" or not. Regardless, Hirai explained exactly what he meant by it in the same statement.

I agree that going to the point of real "microtransactions" would be crappy, because to my experience companies try to hide the devil in the details through a lot of confusion.
No... iXBox live doesn't use micro-transactions. Thier billing system in place for xbox live isn't setup to do that.
It does, however, already do exactly what Hirai is talking about.
 
I'm thinking on a possible model for "microstransactions" as a "Virtual" coin-up arcade, where the "insert coins" to play are replaced by "microtransactions". If cheap enough, could take off...10 cents per play anyone? 8) Real arcades are just too expensive these days... :devilish:

CyberWorld--->CyberArcade... :?:
 
I could "see" that too, Jaws, and frankly the prospect is frightening. :oops:

I can't see it gaining much ground, though. The reason arcades started to die was because home machines could get close to their quality, while offering a ton more convenience and saving a lot of money. Especially potent since the consoles were already purchased for all the games that just don't fit an arcade's style--anything else could just get rolled in.

If companies start trying to pull bullshit like that, I mainly see people sliding on over to their direct competitors who don't. Even if the price is "not much" (and heck, could be even cheaper for some folk depending on their gaming habits), people just don't want to HAVE to be connected and KNOW they're shelling out money every time they start up a game.

Developers seeking some extra cash to cover board-building and other game additions is one thing, but for game PLAYING would be a crock. Most things that started out charging usage fees have invariably gone to universal charges... The tendency is toward simplicity for the consumers, not the other way around; it's much easier to lead consumers down a slope than get them to climb a ladder.

For new tech and services it's one thing, but videogaming went down that road long ago. There ARE things people are willing to pay for, but to cover a complete paradigm shift like that would require all the major players to decide on it at once and stick by it. I don't see them cooperating all that well--they're all quite happy to steal people from the others. ;)
 
Of course without the PC a little collusion takes away any chance of competition stepping in ... good thing we have the PC to keep consoles honest.
 
Vince said:
Qroach said:
micro transactions are the dumbest thing I've ever heard.

Seriously Q, what was Apple thinking with that whole iTunes thing... Paying for what you want is such a repulsive idea after all. Or those dumbasses who buy individual ringtones -- so inexcusable.

I shouldn't be posting when I am not adding value, but... :LOL:
 
Seriously though, paying for content either at a retailer or online, you're still paying for the content. Now all this microtransaction for content (be it level or similar), is like giving you the option for a single song or a few songs on an album.

aaaaa00 said:
That said, I can see this working for certain specific genres of games (DDR comes to mind, and something like xbox Live Arcade comes to mind, maybe driving games or games with no plot or story).

But for the vast majority of games, I just don't see this idea being applicable, except for bonus content and addons.

Agreed. Paying for content could be viewed as purchasing Addons like a number of PC games.

Also this could be the basis for MMRPG where you pay for an real Dungeon Master like service where someone is driving your adventure. Now don't start flaming stating why pay when a friend can be the DM. Just view the DM idea as a service, like Xbox Live.

Also Q, Live is a service as you stated, but the topic here is more content centric (thus the iTune example with songs), thus some of your argument seems weak.
 
this doesn't differ much from what was said in UK by moore about xbox live, except sony doesn't want the gamer to pay a monthly fee.

with xbox you pay monthly fees and you'll pay for the content.
with sony you only pay for the content.

anyway i'm totally rejecting this idea of paying for more content.

it will be nothing but easy for the publishers to add some minor content and/or put a restricted version on the shelves, gamers having to pay again to enjoy it 100%.

it is definitively not made for gamers interest, it's just a way to make them spend more. i (and my wallet) don't need this kind of innovation.
 
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