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Shane Kim on the state of the 360 in Business Week
OmegaEnder
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http://www.businessweek.com/innovate/content/mar2007/id20070321_388111.htm
An interesting interview with Kim over at Business Week, in which he discusses exclusivity, the competition, hardware malfunctions, and the like. Hits on a lot of hot issues in the forum right now.
Some choice quotes:
"...you'll actually see fewer third-party exclusives in the future just because I do think the economics of the business are so challenging."
"I know Wii is a next-gen console for Nintendo, but whether or not it's a true next-gen competitor in the console space is a different question."
"If I were Sony, I'd be a little bit more worried that PS2 continues to sell so well while you can find the PS3s in stores."
Interviewer: "But on the other hand they say that you guys should be worried because the PS2 has been outselling the 360. How do you respond to that?"
Kim: "I think frankly that's a ridiculous comparison."
Later in the interview, on a possible PS3 price cut: "Logically, I would be very surprised if they cut the price, but if Sony starts to worry about the prospects of PlayStation 3, particularly as we're going to deliver Mass Effect, Project Gotham Racing 4, Halo 3, Lost Odyssey and so on this year... I mean who knows what sort of desperate acts you might see."
"...we have a great deal of confidence frankly about what we offer to customers today, and even if we had price parity with PlayStation 3, I think we'd feel pretty good about the competitive situation head-to-head there in terms of the entire program, because it's not just the cost of the hardware as you know."
Seems like more of the same, but I liked that he recognized the Xbox 360s public preception as a hardcore gaming platform as evidenced by the skewness of its library towards FPS etc. Kim seems much more connected with reality than some Sony execs, and he captures the state of the industry remarkably well if you can read through the obligatory PR distractions that come with the territory.
An interesting interview with Kim over at Business Week, in which he discusses exclusivity, the competition, hardware malfunctions, and the like. Hits on a lot of hot issues in the forum right now.
Some choice quotes:
"...you'll actually see fewer third-party exclusives in the future just because I do think the economics of the business are so challenging."
"I know Wii is a next-gen console for Nintendo, but whether or not it's a true next-gen competitor in the console space is a different question."
"If I were Sony, I'd be a little bit more worried that PS2 continues to sell so well while you can find the PS3s in stores."
Interviewer: "But on the other hand they say that you guys should be worried because the PS2 has been outselling the 360. How do you respond to that?"
Kim: "I think frankly that's a ridiculous comparison."
Later in the interview, on a possible PS3 price cut: "Logically, I would be very surprised if they cut the price, but if Sony starts to worry about the prospects of PlayStation 3, particularly as we're going to deliver Mass Effect, Project Gotham Racing 4, Halo 3, Lost Odyssey and so on this year... I mean who knows what sort of desperate acts you might see."
"...we have a great deal of confidence frankly about what we offer to customers today, and even if we had price parity with PlayStation 3, I think we'd feel pretty good about the competitive situation head-to-head there in terms of the entire program, because it's not just the cost of the hardware as you know."
Seems like more of the same, but I liked that he recognized the Xbox 360s public preception as a hardcore gaming platform as evidenced by the skewness of its library towards FPS etc. Kim seems much more connected with reality than some Sony execs, and he captures the state of the industry remarkably well if you can read through the obligatory PR distractions that come with the territory.
Rock out with your cock out
OmegaEnder on
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PS2 outselling PS3 - Sony should be worried
PS2 outselling Xbox 360 - Ridiculous comparison.
Wait... what? The cheapest system is outselling both more expensive systems. Shocker. Sony should be worried about it but Microsoft should shrug it off? Why?
Microsoft shouldnt be worried because the PS2 isnt in the same market. People probably own both a 360 and a PS2. I do, but very few people own a PS3 and a 360.
Because Sony is eating into their own audience?
Sony would have been better served just keeping the PS3 off-market for another year or so, as it's obvious vox populae would rather buy the PS2, and the PS3's current off the shelf price is too much for most people. SCE could have remained profitable for another year or two just pushing their dominant platform.
Let's play Mario Kart or something...
Probably because Sony's coming off a position of market dominance. MS is climbing the mountain and Sony's falling down it. When they meet halfway one's in a lot more trouble than the other - even though they're both at the halfway point.
Winner.
Automobile makers have known this for years and years.
and also years
Hang on a minute - Sony sells the PS2... which is selling better than the Xbox 360.
It also sells the PS3, which isn't selling as well as the PS2 or the PS3, but is still selling reasonably well.
PS2 + PS3 = declining dominance? The hell you say.
I'd also be interested in knowing how many PSXs were sold in the first year of the PS2. If we have similar numbers...
I'd imagine Sony are making less profit on PS2s than PS3s. Or at least potential profit.
People buy PS2s they dont buy PS3s, because PS3 is backwards compatible.
As he said, eating into their own audience.
You'd imagine that Sony is making less profit on the PS2 (which has margin in it) than it is on the PS3 (which has no margin in it?)
You'd imagine wrong. I think Ctrl-Alt-Del did a comic wherein Mr. Potatomoto sold quite a few more systems than Mr. Cucumberagi and made more money even though the system was at a lower price. This is because there is "margin" in the system.
The greatest hits games on PS2 are also their best sellers. There is much more margin in a greatest hits game then there is in a launch game - even at a much lower price. Sony has a formula that's working quite well for them on the low end - and I wouldn't look for that to change any time soon.
Meanwhile, the large quantities of customers they're pulling into the brand via the PS2 could see the PS3 as a brand step up down the road. Anything can happen, but I find the comparison made by Mr. Shane Kim to be just a little on the ridiculous side. Sony should worry that they're more successful than Microsoft in this arena - because it's with an older console? Right. That's not spin at all.
I'm more surprised by his comments at the end. MS is trying to expand the gaming audience by enhancing the storytelling in games? Maybe I'm way outta touch with the real world, but I don't think there's a huge market for more story based games. I haven't seen it yet at least. Beyond Phoenix Wright and Hotel Dusk, I've never seen anyone buy a game because the story was good.
Where as Xbox fans the first time around are adopting 360's regardless of what Sony is doing.