RSSSony Admits Mistakes, Looks Forward
By Ed Oswald | Published June 26, 2006, 3:30 PM
Sony admitted Monday that it had made missteps with its Walkman line of products, while also acknowledging that it was gambling by setting the price of the PlayStation 3 so high.
However, the company remains confident that it will be able to turn its Walkman business around despite losing considerable ground to the iPod and other competitors. Similarly, it expects the "value" of the PS3 to help sell the console.
Excluding its video games unit, Sony has struggled to stay relevant. However, since the appointment of CEO Howard Stringer last year, the company has begun to regain its footing, but not in the Walkman portable music player business.
Analysts have long said the Japanese electronics maker's players never took hold in the market due to its insistence on proprietary formats. Early on, Sony's players only played back ATRAC3 digital files, and used the company's MiniDisc format.
Neither format gained widespread acceptance, and by the time Sony had made the necessary changes, such as adding MP3 support and phasing out the MiniDisc line, it had already fallen far behind Apple by as much as a 7-to-1 margin.
Sony said in a press conference Monday that it had "miscalculated" the Walkman, but declined to elaborate. In an attempt to remedy this, Sony president Ryoji Chubachi said the company plans to release product that are similar, yet different to the iconic iPod, but wants them to remain "Sony-like."
The first inclination of Sony's future plans could be the Shuffle-like players the company has released in Japan. While similar in size, the unit has more capacity and is available in several colors, like the popular iPod Mini. Sony says the players have sold well, but has not released details on any possible release outside Japan.
What remains to be seen is whether the company's decision to price the PlayStation 3 well above its rivals may end up being a miscalculation as well. Pricing for the basic PS3 would be $499 in the US, some $100 higher than the premium version of the Xbox 360.
But Stringer feels the price is right, and says that gamers would pay for the console's potential. The PS3 is expected to be released in November, and Stringer said that if the console lives up to expectations, the cheaper price of the Xbox 360 nor the Nintendo Wii would play a factor in consumer's purchasing decisions.
The Xbox 360 will have about a year head start on Sony's new console. According to data from the NPD Group, Microsoft had sold over 1.7 million consoles in the United States as of the end of May, and was expecting to ship some 6 million consoles total worldwide by the end of this month.
Once the MOD chips/mechanisms come out, this entire thread/discussion will be of no real consiquence, because only the price of the actual console will be a concern. I believe ways to defeat copy-protection for X-Box 360 are already in testing.
Ok, so sometimes bootleg games are unstable, but very RARELY! About 8 out of 10 games I've ever downloaded run 100% perfect with no flaws/ cp-bugs whatsoever. Plus, choosing bootleg "anything" levels the playing ground between the "little people" (you and I) and the massive money-hungry monopolous corporations that charge rediculous prices for components that they can have manufactured in China for fractions of a US penny.
What I mean is that as companies begin to realize in the next 5 years that their sh*t will be cracked, they'll be less and less likely to try and unscrupulously BREAK the consumer with these wacked out prices because they know if the prices are too high the consumer will just play bootleg games.
Score: 0
|I have owned plenty of Sony products in my life. I don't have a problem with their products as much as how they operate in a vacuum. Every turn of technology they take a different turn without regard to where consumers are going. Beta was a classic example. The Walkman was another. They had the ball at the 1 yard line and fumbled it. Hopefully they can come to terms with that and improve their planning and execution.
Score: 0
|Sony makes good hardware, i have sony monitors, walkmans, ps2, never had a problem with any of them, but yes thier software isn't the best in the world.
Score: 0
|I have a Sony Walkman (NW-A3000), and the hardware is awesome, fantastic sound quality, good UI, looks great, great build quality.
The software is came with however is dire ("Sony Connect"), bordering on un-useable.
It was so bad, that Sony US refused to launch the player in the US, despite the fact that the software was of US origin.
They have now scrapped the "Sony Connect" player, and updated SonicStage to version 4, and it's now looking much more healty. The players support also ATRAC, MP3, WMA, AAC.
They finally have something to compete with he ipod, but it's 3 years too late. A real shame, as the players really are so much better than an ipod.
Score: 0
|The PS3 is SOOOO much more advanced than any game box out there...more so than any personal computer in existence even....that a mere $100 more will mean NOTHING-- in fact, they're terribly under-pricing it-- in large part because of past mistakes.
The only potential speed bump would be if the OS for it turned out to be sub-par.
Score: 0
|sooo much more advanced??? you have been under a rock and arent aware of the news about the bottlenecks/poor hardware choices?
Score: 0
|FUD from xbox fanboys.
Score: 0
|Technological debate of 360 vs. PS3 is incredibly immature and stupid because:
1. AT THIS MOMENT, the hardware that they use is unique. Therefore, we cannot compare them using a baseline, e.g. 3DMark or any other benchmarking utility.
2. N64 had only half a dozen games that used 64-bit graphics--the rest just used 32-bit gfx. Point is: the games aren't here yet so we can't go there.
3. Much of the technology is basically paper for fanboys to dream about, as very few people will even take advantage of it. Me, my family, my friends, my family's friends, and then their family--I don't know a soul who has or plans to buy a 1080p capable TV. So--who cares about that? Heck, I don't even own a TV that uses 720p yet!
4. Comparing apples and oranges here--hardware can mean little if the graphics rendering software API sux, or if the "drivers" (or whatever they are) stink.
Nintendo Wii is looking better and better all the time...
Score: 0
|Don't forget that Sony is changing it's game trade/resale policy. You will not be able to buy or trade in used PS3 games. You will not be able to sell them over e-bay. In essence, you're "renting" the game content from Sony now and they retain all rights to it. You will not own the contents of the shiny disc on which you spent your hard earned money. Every game you buy for the PS3 will *have* to be brand new at full price. Not only is the PS3 going to cost an arm and a leg, Sony wants a nose and an ear for the games too.
Score: 0
|I don't believe thats been confirmed. I've heard rumours but no actual proof. Also if they did that, it would really hurt them the backlash at just the speculation has been pretty bad.
Score: 0
|BS.
Don't believe everything you read on XBox fanboy forums..
This comes from the same camp as the "Blu-Ray won't play DVD" rumours, and "Xbox360 HD-DVD bolt-on will do HDMI"...
Score: 0
|Disproved last year.
Score: 0
|I don't think they can do that legally on a physical object. On a online game item, they can do that.
Score: 0
|Is this posted somewhere? I guess I can search the internet. How are they going to prevent folks from selling the games on E-Bay? Is e-bay blocking this?
Stephen Legler
Score: 0
|Who will pay that much for the PS3, are Sony daft or are they hoping that just because they had hit with the last 2, they should get another one. The Xbox 360 is well priced great spec and great games. So why why why would people be so daft as to get a PS3.
Score: 0
|If the Xbox 360 had included a built-in HD-DVD drive the price probably would have been much higher. Probably on a par with the PS3.
Score: 0
|Who will pay that much for the PS3, are Sony daft or are they hoping that just because they had hit with the last 2, they should get another one. The Xbox 360 is well priced great spec and great games. So why why why would people be so daft as to get a PS3.
hey there are prople even people who admitted on this form who spent almost 12 hours in line ouside a store just to get an Xbox 360. these are the kind of people that will buy it at the launch price
Score: 0
|"Who will pay that much for the PS3"
i will,
and i'm sure i'm not the only one
Score: 0
|Me too, I have my £420 60GB model on pre-order.
Score: 0
|I just don't get it. Who would buy a PS3? I mean, the XBox 360 is out with tons of games now, and even more by X-Mas. Its next gen, looks great, and the games are a lot of fun. I guess there are always diehards and fanboys :)
Score: 0
|Besides the fanboys, I think there are people who would buy PS3 for the correct reason: the games. If PS2 vs XBOX is of any indication, PS3 will have more RPG games whereas XBOX360 will have more action games.
Score: 0
|RPG are so last generation. It's boring. I used to play them, and I found them sux a** now.
Score: 0
|It'a not next gen, despite what Microsoft want you to believe. They will screw you over by releasing a true next gen console in a couple of years time...
Score: 0
|Uhh, RPGs have been kicking it big longer than you've probably been alive.
Score: 0
|RPGs have sold more PS2's than anything else. Unfortunately, Sony's megalomania has cost them even that cherished cornerstone. When Square-Enix refuses to do exclusives even a Sony fanatic has to admit it ain't looking good. There's still time for them to come to their senses, but barely.
Score: 0
|how do you figure? as next generation means the one after, and it is after the xbox, thus it is the next generation of xbox, besides arent they the ones who decide what it is, not you?
Score: 0
|Something has to be significantly better to qaulify it to be next generation.
XBox -> Xbox360 is not sufficent a leap in progress.
Score: 0
|"as next generation means the one after"
lol,
i think he meant, next gen, as in the generation of hardware better than current hardware in general. not generation after first xbox. in that logic, the gamecube is next gen too, cuz the successor hasn't come out yet, so the current GC is next gen to the older 64.
Score: 0
|Have you really looked at the games that have been released for the XBox 360? I suppose you haven't because the selection overall really is small and a lot of the games suck.
I own one and speak from experience. I guarantee you Sony will have just as much selection if not more (and better game quality) when they release the PS3.
I am not a gamer and I don't think one is better than the other but Sony has always been one up on Microsoft when it comes to good games for their system, even at release time.
Score: 0
|I would not give a Sony product to my most hated enemy. :) I would most certainly be sued for cruel and unusual punishment. :D
Score: 0
|Ahhhh... the horror.... the horrorrrrr......
Score: 0
|"Value" only sells over-priced junk when there's too many yuppies with too much money willing to buy it.
Given the state of the economy and fuel prices (in America at least) I think they will find quite a few more children getting Wii for christmas than managing to sell the parents on how the PS3 will play blue-ray discs (yet another proprietary format).
Score: 0
|Sony is close to stealing the "Most Clueless Corporation Ever" title away from Xerox.
Do they even make anything worth owning?
Score: 0
|The Gran Turismo series?
Score: 0
|Oh sure they do. They've made plent of things like the......no that kind of sucked......... well there was they......oh never mind that was a failure too. Oh wait they made the PSP....nevermind that was an overpriced headache with yet another proprietary format. Sorry can't really think of anything at this point.
Score: 0
|PSOne, PS2, nice TVs.
Score: 0
|"Do they even make anything worth owning?"
you know another company that has such a variety of product, with good to great quality.
Score: 0
|Wow...this is a pleasent surprise. The first step to recovery is admitting you have the problem :)
Seriously, +10 respectability to sony. Still not enough for me to run out and buy their stuff, but this can be their first step in winning back their old ex-customers...
Score: 0
|I agree... it will be interesting to see what they do with Blu-ray.
Score: 0
|Hmmm....
Our walkman's sucked. We'll do something similar, yet different. (Market-speak for 'We're stumped')
Our PS3 may be priced too high...but we're gonna leave it there.
Yeah. sounds like their really working to fix they're mistakes.
Sorry, I may just be biased against them, but it reads like a fluff piece. No real guts to it.
Score: 0
|My grandpa used to say, "Ya screwed me once, shame on you. Ya screwed me twice shame on me." Sony has screwed the consumers to many times. I will never knowingly buy anything associated with Sony.... not even if [insert the name of the creator you believe in here] blessed Sony and proclaimed they were a respectable company.
Once burned..... twice shy....
No thank you...
Score: 0
|Hmmmm Blu-ray.... Beta-Max... Sony never learns... I forsee the first PS3s with the "sure to fail" Blu-ray drives... and the PS3s will have a second generation with a differnt drive.
Score: 0
|LOL, Betamax was 30 years ago dude....
Is that the best you can come up with?
Score: 0
|Blu-Ray is not a Sony format.
Score: 0
|UMD.......
Score: 0
|UMD is not Betamax fool.
UMD failed for movies on PSP, for obvious reasons...
No recoders, no benefits for anything other than portable devices, only PSP supports it.
Score: 0
|Minidisc? Betamax? Mpeg Walkman(Works ONLY with preinstalled Windows, don't think of using it with a "Built for you" computer) UMD, and very soon, Blu-ray.
Score: 0
|I assume your not going to mention the Sony formats and innovations that did succeed?
CDROM (with Philips)
Floppy Disks..
Trinitron CRT's
and so on..
Score: 0
|"Similarly, it expects the "value" of the PS3 to help sell the console"
Pfft value....
Score: 0
|I had a Sony NW-A3000 Walkman. The volume level conformed to EU regulations and was so low it made the thing not worth listening to, so it ended up being thrown away
Score: 0
|potential value at that.
3 jacks has potential value, but I would not bet 500 on it.
(the number of elitists posting here is not suprising at all)
Score: 0
|You can switch off the volume level restriction, learn to use Google before using the bin...
The amount of newbies posting here is staggering.
Score: 0
|Perhaps block anything coming from AOL IP addresses
--->The amount of newbies posting here is staggering.
Score: 0
|