Saturday, December 30, 2006

Sony is royally screwed

And I am SO pleased.

The Playstation 3 is a dud. Look anywhere within the gaming scene and you will find articles about it, but in a nutshell, most retailers are facing a wave of returns of PS3 consoles - and that's when Sony had highly limited production. As soon as they millions of consoles that are currently in production are shipped to the US early 2007, Sony will face HUGE losses; in fact, those losses will be so big so as to threaten the company itself - according to Sony themselves. Howard Stringer suggested that in a number of interviews, as did Kaz Hirai, president of Sony America.

Why am I so pleased? because they do not respect us consumers, repeatedly treating us with extreme arrogance. Consider the following, just from the past couple of years:

  • Sony releases CD's with rootkits, affecting millions of consumers of their music CD's
  • Sony tries to shove their stinking closed standard Bluray technology down everybody's throats, just like they did with Betamax; not surprisingly, this was destined to fail, and is starting to fail big time. Considering that Bluray was such a huge bet for Sony, it will be their downfall
  • Sony sticks Bluray into the PS3, making the device uber-expensive for no reason other than trying to shove Bluray down our throats. Not only that, but because production of the Bluray drives is so expensive, Sony ends up losing about $500 for each PS3 made, hoping that they would be able to nail the consumer market and make the money on the backend. The implication? we consumers are so stupid we would not realize this tactic
These are just examples. Sony is a company that needs to be severely humbled before it is completely overhauled, and Stringer is not the guy for the job. But that's a different story.

The real story is the utter and complete failure of the PS3. Not only is Sony scheduled to lose many billions on Bluray, the PS3 was specifically the device that would have allowed them to make it back down the line. PS3 is essentially dead. It's been selling under retail on eBay since before Christmas, and if you really want one (why would you?), you can pick one up pretty much anywhere due to so many returns.

Counter this with the Nintendo Wii that has stormed gamers away from Sony, and oddly enough positioned Microsoft well to bypass Sony as well, with the simple time-to-market advantage of the XBOX 360. You can't find a Wii anywhere, there are zero returns, and the device is getting all the attention with its innovative controller. Even with increased production, they get literally stolen off the shelves whenever a shipment appears. Wii's are still holding prices around $450 on eBay even post-christmas, or double their retail price. Oh, and did I mention that Nintendo has managed to bring over five times as many Wii's to the US as Sony has PS3's?

I had a chance to play the Wii, and I'm in love with it; I hadn't planned on buying any of the newgen consoles since we are perfectly happy with the PS2, Gamecube and XBOX we have, but it took 20 minutes of playing Wii Sports with the Wiimote to get me totally hooked; of course, I can't find one anywhere yet. But rest assured that eventually I will. PS3? forget about it. Not interesting in the least. All it has is somewhat improved graphics. Big frigging hairy deal.

Ah, the beauty of a large corporation facing the results of their own extreme arrogance. Excuse me while I go short some Sony stock. Should be fun.

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