Stringer: PlayStation 3 is a key driver of Sony's future growth

Discussion in 'Console Industry' started by B3D News, Jun 21, 2007.

  1. B3D News

    B3D News Beyond3D News
    Regular

    Joined:
    May 18, 2007
    Messages:
    440
    Likes Received:
    1
    Associated Press reports what Howard Stringer, chairman and Chief Executive Officer of Sony, said to his shareholders at the annual meeting. During his speech, Stringer made clear that his ambition for the company has now shifted from “recovery to profitable growth.


    Read the full news item
     
  2. Nesh

    Nesh Double Agent
    Legend

    Joined:
    Oct 2, 2005
    Messages:
    11,300
    Likes Received:
    1,769
    Well things will be starting to change perhaps and they will be more willingfull for price drops
     
  3. patsu

    Legend

    Joined:
    Jun 25, 2005
    Messages:
    27,614
    Likes Received:
    60
  4. Cheezdoodles

    Veteran

    Joined:
    May 24, 2006
    Messages:
    3,930
    Likes Received:
    24
    playstation

    playstation3 is pretty much the only driver of sony's future growth. Not really news.
     
  5. ninzel

    Veteran

    Joined:
    Aug 26, 2005
    Messages:
    1,606
    Likes Received:
    6
    "Stringer: PlayStation 3 is a key driver of Sony's future growth"

    Well then they had better get it out of first gear. :smile:
     
  6. one

    one Unruly Member
    Veteran

    Joined:
    Jul 26, 2004
    Messages:
    4,823
    Likes Received:
    153
    Location:
    Minato-ku, Tokyo
    Why do you think so when all the other divisions are successfully making money now?
     
  7. Nesh

    Nesh Double Agent
    Legend

    Joined:
    Oct 2, 2005
    Messages:
    11,300
    Likes Received:
    1,769
    Ahm.....again no
     
  8. Skrying

    Skrying S K R Y I N G
    Veteran

    Joined:
    Jul 8, 2005
    Messages:
    4,815
    Likes Received:
    61
    I don't exactly match "growth" with making money, growth eventually leads to making money but its first goal is opening up to others markets... at least that's what I thought personally. In that sense I feel the PS3 is Sony's only driver. I don't pay much attention to what all Sony does but besides Blu-Ray (which PS3 makes a big push for) and the PS3 I don't see them really heavily trying to lean into other markets. I see the PS3 as a attempt at reaching into the total media picture in more of a combining sense, being the sole provider in games, TV, music, etc. This is why I feel the PS3 having good sales is far more important than simply for Sony's gaming division. A company this large must spread out or it must face the wrath of its competitors as they do so.
     
  9. patsu

    Legend

    Joined:
    Jun 25, 2005
    Messages:
    27,614
    Likes Received:
    60
    If you read the first article, Howard implied that they intend to ride the young digital video wave (although they missed the digital music wave). PS3 is clearly a key pillar, but there are other Sony devices and businesses that may matter as much in this area (e.g. Bravia, PSP, professional video authoring, movies, etc.).

    Sony is a large corporation. There are many interesting projects within. I know of one (because they are talking to some external parties)... regarding a new form of TV programs (combining Internet).

    In addition, it is not reasonable to expect Sony to divulge their plans in the public. It would be like asking Steve Jobs what he wants to roll out next.

    On a related note, others (including Sony) are also looking into augmented reality, which some believe would drive the next Internet revolution. They (SCE, Sony Pictures, ...) seem to have dabbled in software and Internet services too. So we may see more happenings there over the next few years.

    Looking from yet another perspective, Asia is booming (e.g., China, Thailand, Vietnam). There is no reason why Sony can't position themselves (like many major brands) to drive their business to new heights. The world is full of opportunities and surprises.
     
    #9 patsu, Jun 23, 2007
    Last edited by a moderator: Jun 23, 2007
  10. Cheezdoodles

    Veteran

    Joined:
    May 24, 2006
    Messages:
    3,930
    Likes Received:
    24
    Growth and making money is far from the same thing. While other divisions may become slightly profitable, unless they suddenly start selling a lot more tv's for the same price, they aren't gonna experience much growth. Sony needs something new to experience significant growth. A new walkman, get it?

    Realistically speaking, PS3 and bluray is pretty much the only thing that can give them a lot of growth right now, because they are "make it or brake it" items, if you win. you win big, and because the competition is small. That or new stuff they have been cooking up in the labs.

    Your not suddenly going to sell a billion tv's when there is 1000 companies that makes roughly as good tv's as you do, for the same (and often lower) price.


    Wow, amazing argument. Wanna try actually making one? And don't give me any crap PR statements.
     
    #10 Cheezdoodles, Jun 23, 2007
    Last edited by a moderator: Jun 23, 2007
  11. Shifty Geezer

    Shifty Geezer uber-Troll!
    Moderator Legend

    Joined:
    Dec 7, 2004
    Messages:
    40,601
    Likes Received:
    11,014
    Location:
    Under my bridge
    Considering the success of PS1 and PS2, how much growth is it realistic to expect in the gaming sector? They'd need to reach far wider than the widest-reaching consoles of all time. The likely way to achieve that is to offer alternative services beyond gaming, and in that, PS3 doesn't need to be the only platform Sony can rely on. eg. With content delivery, a software platform that reaches PC and out-competes iTunes will get Sony more growth than anything. As for BluRay, how much growth can that get Sony beyond DVD? It's a replacement format, which means the market can surely only be as big. People stop buying DVD as they've all got it, so instead sell them an alternative. But you can only sell as many as there are households to buy, which is all of them regards DVD. Now if Sony had the monopoly on BRD, then it'd be a growth area. Rather than having a share of the DVD market, they'd own the entirety of the BRD market. However they don't have the monopoly. I don't even think they get the largest share of the licensing fees.

    Growth comes on the whole from existing markets and just competing well in them. Samsung got to be huge without a Walkman or PlayStation. They got there on the strength of their products competing. If Sony produce the same CE goods as everyone else, but outcompete their rivals, they'll experience corporate growth.
     
  12. Cheezdoodles

    Veteran

    Joined:
    May 24, 2006
    Messages:
    3,930
    Likes Received:
    24
    I'm sorry shifty, are you under the impression that Sony owned DVD? Sony has no royalities on DVD. They are the company that are getting the most royalities with Bluray, in the top tier atleast. Bluray doing well = growth for sony.

    ROFL.


    Im sorry, i didn't ask for a cute definition of what growth is. Im perfectly aware of what it is. I also said that realistically, your not gonna experience significant growth on a lot of the electronics, like TV's, because the competition is so huge, and the difference in quality is minimal.

    Sony has been getting killed in the electronics business for a decade. While they are profitable now, they still have tiny markedshares compared to what they had, its completely unrealistic to believe that they will suddenly start making hoops of money from it and gain marketshare. Samsung is not going to stop making good tv's.
     
    #12 Cheezdoodles, Jun 23, 2007
    Last edited by a moderator: Jun 23, 2007
  13. Arwin

    Arwin Now Officially a Top 10 Poster
    Moderator Legend

    Joined:
    May 17, 2006
    Messages:
    17,681
    Likes Received:
    1,200
    Location:
    Maastricht, The Netherlands
    How about mpeg2, smartass? ;)
     
  14. Cheezdoodles

    Veteran

    Joined:
    May 24, 2006
    Messages:
    3,930
    Likes Received:
    24
    They share MPEG2 royalities with 20 other companies. These 20 other companies are also the largest makers of DVDs. I'm pretty sure whatever they get from MPEG2 licenses, the profits they can make with bluray can be much more.
     
  15. Nesh

    Nesh Double Agent
    Legend

    Joined:
    Oct 2, 2005
    Messages:
    11,300
    Likes Received:
    1,769
    Its still not as "amazing" as your arguments. Which are the typical biased based on vague assumption ones. In other words, I am still waiting for a clear factual argument from you to be able to discuss anything.
     
  16. one

    one Unruly Member
    Veteran

    Joined:
    Jul 26, 2004
    Messages:
    4,823
    Likes Received:
    153
    Location:
    Minato-ku, Tokyo
    There are 2 major patent pools for DVD, they are 6C (Hitachi, JVC, Matsushita/Panasonic, Mitsubishi Electric, Toshiba, Time Warner) and 3C (Philips Electronics, Pioneer, Sony).
     
  17. Shifty Geezer

    Shifty Geezer uber-Troll!
    Moderator Legend

    Joined:
    Dec 7, 2004
    Messages:
    40,601
    Likes Received:
    11,014
    Location:
    Under my bridge
    Tell that to Samsung.

    Right. So the only reason Sony managed to gain significant TV share from Samsung over the past few years because Samsung did stop making good TVs? Now Samsung have started again, Sony won't be able to compete. It's not like advertising, or marketting, or refined products could do Sony any good. They're stuck with the current percentage of TVs full-stop for the next 5 to 10 years. Absolutely nothing they can do about it. They can't introduce a rich media download service to PCs either. And their share of portable media players is capped exactly at it's current rate because no matter what new models and devices they might introduce, the market is unshakably dvided into it's current market share. If Sony are on 15% of MP3 players sold now, they'll never be able to improve that, because...well, just because. Open competition and all that. Everyone else with have better and/or cheaper products and Sony will never be able to address that. Same with digital cameras where Sony have been seeing a boom. Suddenly all that growth is going to stop. Their only hope is from PS3, to significantly outdo PS1 and PS2 in terms of revenue, presumably by selling more consoles, more games, and notably media downloads - these same downloads that Sony won't be able to sell to PC owners of course because of the competition.

    It all makes sense now. :yep2:
     
  18. Crossbar

    Veteran

    Joined:
    Feb 8, 2006
    Messages:
    1,821
    Likes Received:
    12
    I think there is a chance that the PS3 will be the Trojan horse that will help building the blu-ray market and the blu-ray films and the PS3 games through HDMI 1.3 will help building the market for hi-end and hi-margin TV-sets llike these:
    http://news.sel.sony.com/en/press_r...on/flat_panel_displays/lcd/release/30448.html

    I think Stringer knows his shit.
     
  19. Shifty Geezer

    Shifty Geezer uber-Troll!
    Moderator Legend

    Joined:
    Dec 7, 2004
    Messages:
    40,601
    Likes Received:
    11,014
    Location:
    Under my bridge
    Definitely. That's why Stringer said PS3 was a key driver of future growth. It's (according to Sony's plan) going to help establish the larger BRD market, and probably be a spring-board for an extensive content delivery service. That doesn't make PS3 the only means in the whole of Sony that can increase their profits though!
     
  20. Moonblade

    Newcomer

    Joined:
    Feb 12, 2006
    Messages:
    219
    Likes Received:
    0
    Location:
    Belgium
    True. The PS3 is but one of the 3 HD pillars (PS3, HD TV's, Blu-ray). They drive each other ... like this:

    [​IMG]
     
Loading...

Share This Page

  • About Us

    Beyond3D has been around for over a decade and prides itself on being the best place on the web for in-depth, technically-driven discussion and analysis of 3D graphics hardware. If you love pixels and transistors, you've come to the right place!

    Beyond3D is proudly published by GPU Tools Ltd.
Loading...