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Sony is BusinessWeek's "Wipeout of the Week"

LanzLanz ...Za?Registered User regular
edited May 2007 in Games and Technology
News| Sony BusinessWeek's "Wipeout of the Week"BusinessWeek pronounces Sony to be their "Wipeout of the Week."

Hot off the news of Sony's $1.9 Billion loss in their video games division, magazine BusinessWeek has declared that the company is their official Wipeout of the Week for their May 28, 2007 edition.
BusinessWeek goes on to discuss Sony's blaming of their 68% drop in operating earnings from the last fiscal year on the SCEI division of the company, which in turn have been attributed to the costs of both production and marketing for the Playstation 3. They also touch on how although Sony claimed to have had 5.5 Million systems shipped globally, only 3.6 Million were on store shelves.
BusinessWeek's advice to Sony? Drop the price as soon as possible.
"[FONT=arial,helvetica,univers]Since Sony is already losing money on every console, a price cut would hurt. Then again, games won't be profitable for at least another year, so the company might as well take the hit now." - BusinessWeek

[/FONT]
It sounds like Sony needs to be prepared to take some pretty drastic measures with the PS3 if they hope to be successful this generation.

http://www.platformers.net/index/index.php?option=com_content&task=view&id=253&Itemid=33
source article

Oh my god. Wow, this just... for Sony...

Seriously, now even BusinessWeek is saying things are looking grim for Sony. Do they have anyway out of this?

waNkm4k.jpg?1
Lanz on
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Posts

  • AbsoluteZeroAbsoluteZero The new film by Quentin Koopantino Registered User regular
    edited May 2007
    Of the WEEK?

    AbsoluteZero on
    cs6f034fsffl.jpg
  • PataPata Registered User regular
    edited May 2007
    So the media is catching up to the internet?

    Pata on
    SRWWSig.pngEpisode 5: Mecha-World, Mecha-nisim, Mecha-beasts
  • apotheosapotheos Registered User, ClubPA regular
    edited May 2007
    Of the WEEK?

    Well, forever does include this week.

    Technically.

    apotheos on


    猿も木から落ちる
  • ShadowenShadowen Snores in the morning LoserdomRegistered User regular
    edited May 2007
    ...and of course, the term "wipeout", with relation to Sony...heh. Heh-heh-heh.

    I dunno, even when I like what the company's done, I just get this huge case of schadenfreude whenever I see any company bigger than a local chain take ah it.

    Shadowen on
  • StericaSterica Yes Registered User, Moderator mod
    edited May 2007
    Sony's lucky that Blu-Ray is doing better than the competition.

    Sterica on
    YL9WnCY.png
  • ShurakaiShurakai Registered User regular
    edited May 2007
    How much better? From working at Future shop I know it has a larger penetration computer wise than HD-DVD does, but everything is still exorbitantly expensive and no one buys it.

    Shurakai on
  • SaddlerSaddler Registered User regular
    edited May 2007
    3rd (or 2nd, depending on who you count) place is a really bad place for Sony to be in. It just doesn't fit with what they provide. Last time they won initially on consumer confidence, then grew the lead with a colossal amount of software. Without that confidence, it's going to be hard to build as large a library as they did last gen, which will in turn hurt sales down the road.

    As far as system selling software goes, it's true that they have good first party exclusives now, but I just don't know if their exclusive franchises are good enough to fill a niche the way Nintendo did on the Gamecube. A third place Sony would almost be a pointless system as far as I can tell.

    Lucky for Sony that M$ is unheard of in Japan, and the 360 seems to have been only partially successful so far in making their software more diverse than last gen. Had the Japanese embraced the 360, Sony would be in dire straits instead of just sluggish.

    Saddler on
  • CouscousCouscous Registered User regular
    edited May 2007
    http://www.businessweek.com/globalbiz/content/may2007/gb20070516_346923.htm?campaign_id=tbw%22
    Although the company had forecast global shipments of 6 million machines by the Mar. 31 end of its fiscal year, its factories made and sent off just 5.5 million. Worse, the actual number of PS3s in stores was closer to 3.6 million. The remaining 1.9 million were either sitting in warehouses or en route to stores, leaving as much as $1.1 billion in inventory. Perhaps that's why the company chose to stick to a more conservative sales forecast of 11 million units this year.

    Merrill Lynch estimates the discounts would shave nearly $600 million off the division's sales. But the company might not have much choice. "Sony will have to cut the price sooner than expected—something it can't afford to do now," says Gibson.

    There is something wonderful about seeing a part of a large corporation between a rock and hard place. It is especially funny when the company was expecting the console to have games made for it over a ten year period.

    Couscous on
  • randombattlerandombattle Registered User regular
    edited May 2007
    Man it really is bad when all these business magazines are commenting on how bad things are for Sony.

    randombattle on
    itsstupidbutidontcare2.gif
    I never asked for this!
  • StericaSterica Yes Registered User, Moderator mod
    edited May 2007
    Shurakai wrote: »
    How much better? From working at Future shop I know it has a larger penetration computer wise than HD-DVD does, but everything is still exorbitantly expensive and no one buys it.
    I have no idea, but I keep hearing that HD isn't doing so great.

    Like you said, it's way out of my price range, so I'm not really keeping tabs on it. The video game side is bad, but if we get a repeat of Betamax, it would be a rather bad period for Sony.

    Sterica on
    YL9WnCY.png
  • chasmchasm Ill-tempered Texan Registered User regular
    edited May 2007
    Is it wrong that my dick got hard when I saw Sony and Wipeout in the same thread title?

    chasm on
    steam_sig.png
    XBL : lJesse Custerl | MWO: Jesse Custer | Best vid ever. | 2nd best vid ever.
  • StericaSterica Yes Registered User, Moderator mod
    edited May 2007
    chasm953 wrote: »
    Is it wrong that my dick got hard when I saw Sony and Wipeout in the same thread title?
    If you were thinking of the racing series, then you are not alone.

    Well, in terms of thinking about it. I haven't actually played any of the games.

    Sterica on
    YL9WnCY.png
  • Xenogears of BoreXenogears of Bore Registered User regular
    edited May 2007
    Rorus Raz wrote: »
    chasm953 wrote: »
    Is it wrong that my dick got hard when I saw Sony and Wipeout in the same thread title?
    If you were thinking of the racing series, then you are not alone.

    Well, in terms of thinking about it. I haven't actually played any of the games.

    They are like a poor man's euro trash F-Zero. Oh, I went there.

    Xenogears of Bore on
    3DS CODE: 3093-7068-3576
  • ThreepioThreepio New Westminster, BCRegistered User regular
    edited May 2007
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Threepio on
    142.jpg
  • StericaSterica Yes Registered User, Moderator mod
    edited May 2007
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    Sterica on
    YL9WnCY.png
  • Xenogears of BoreXenogears of Bore Registered User regular
    edited May 2007
    Threepio wrote: »
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Aww c'mon. Lighten up a bit, its not so bad.

    Xenogears of Bore on
    3DS CODE: 3093-7068-3576
  • LegacyLegacy Stuck Somewhere In Cyberspace The Grid(Seattle)Registered User, ClubPA regular
    edited May 2007
    Rorus Raz wrote: »
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    So...they'll copy Nintendo and make bank like always?

    Probably.

    Legacy on
    Can we get the chemicals in. 'Cause anything's better than this.
  • ThreepioThreepio New Westminster, BCRegistered User regular
    edited May 2007
    Threepio wrote: »
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Aww c'mon. Lighten up a bit, its not so bad.

    I'm so sick and tired of this Sony optimism. It's six months into the console life cycle and they haven't even cured cancer yet. What a bloody waste.

    It's not like I'm enjoying the system, with the new multimedia streaming capabilities or the upscaled PS2 games. Motorstorm getting new modes and updates for free certainly didn't help. Blu-ray movies definitely don't do anything for me.

    They're fucking doomed. Let's just leave it at that and let the carcass rot.

    So... how'd I do?

    Threepio on
    142.jpg
  • AbsoluteZeroAbsoluteZero The new film by Quentin Koopantino Registered User regular
    edited May 2007
    Threepio wrote: »
    Threepio wrote: »
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Aww c'mon. Lighten up a bit, its not so bad.

    I'm so sick and tired of this Sony optimism. It's six months into the console life cycle and they haven't even cured cancer yet. What a bloody waste.

    It's not like I'm enjoying the system, with the new multimedia streaming capabilities or the upscaled PS2 games. Motorstorm getting new modes and updates for free certainly didn't help. Blu-ray movies definitely don't do anything for me.

    They're fucking doomed. Let's just leave it at that and let the carcass rot.

    So... how'd I do?

    All the happy-with-my-PS3 Threepio in the world doesn't change Sony's bottom line.

    AbsoluteZero on
    cs6f034fsffl.jpg
  • Xenogears of BoreXenogears of Bore Registered User regular
    edited May 2007
    Threepio wrote: »
    Threepio wrote: »
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Aww c'mon. Lighten up a bit, its not so bad.

    I'm so sick and tired of this Sony optimism. It's six months into the console life cycle and they haven't even cured cancer yet. What a bloody waste.

    It's not like I'm enjoying the system, with the new multimedia streaming capabilities or the upscaled PS2 games. Motorstorm getting new modes and updates for free certainly didn't help. Blu-ray movies definitely don't do anything for me.

    They're fucking doomed. Let's just leave it at that and let the carcass rot.

    So... how'd I do?

    You did pretty good, but more emphasis on the price and how there are no good games for it, and that you're not interested in any of the crap coming out, and even if you were it would just come to the 360/wii/your four slice toaster.

    It's funny because Threepio, the robot, is fairly famous for declaring his doomed status.

    Xenogears of Bore on
    3DS CODE: 3093-7068-3576
  • NevaNeva Registered User regular
    edited May 2007
    Neva on
    SC2 Beta: Neva.ling

    "Everyone who is capable of logical thought should be able to see why you shouldn't sell lifetime subscriptions to an MMO. Cell phone companies and drug dealers don't offer lifetime subscriptions either, guess why?" - Mugaaz
  • CouscousCouscous Registered User regular
    edited May 2007
    Threepio wrote: »
    Threepio wrote: »
    Nah, they're fucking doomed. We've already come to that conclusion.

    Yawn. Have fun with this one guys.

    Aww c'mon. Lighten up a bit, its not so bad.

    I'm so sick and tired of this Sony optimism. It's six months into the console life cycle and they haven't even cured cancer yet. What a bloody waste.

    It's not like I'm enjoying the system, with the new multimedia streaming capabilities or the upscaled PS2 games. Motorstorm getting new modes and updates for free certainly didn't help. Blu-ray movies definitely don't do anything for me.

    They're fucking doomed. Let's just leave it at that and let the carcass rot.

    So... how'd I do?

    All the happy-with-my-PS3 Threepio in the world doesn't change Sony's bottom line.
    Nor does the "the PS3 is selling really well at the company I work for in Canada, I swear."

    Couscous on
  • AshcroftAshcroft LOL The PayloadRegistered User regular
    edited May 2007
    Can we just have a Sony is DOOMED sticky?

    Ashcroft on
    ZD98Zka.png
  • CouscousCouscous Registered User regular
    edited May 2007
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    Couscous on
  • Puny HumanPuny Human Registered User regular
    edited May 2007
    Legacy wrote: »
    Rorus Raz wrote: »
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    So...they'll copy Nintendo and make bank like always?

    Probably.

    By "copy Nintendo", I presume you mean "come in dead last for two console generations in a row before staging a comeback"?

    Ahh, schadenfreude, sweetest of emotions.

    Puny Human on
  • Smacky The FrogSmacky The Frog Registered User regular
    edited May 2007
    I like my PS3.

    Smacky The Frog on
    wahjahbanner.jpg
  • TheSonicRetardTheSonicRetard Registered User regular
    edited May 2007
    Puny Human wrote: »
    Legacy wrote: »
    Rorus Raz wrote: »
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    So...they'll copy Nintendo and make bank like always?

    Probably.

    By "copy Nintendo", I presume you mean "come in dead last for two console generations in a row before staging a comeback"?

    Ahh, schadenfreude, sweetest of emotions.

    This is why german is fucking cool. They actually have a word for reveling in your opponent's misery.

    TheSonicRetard on
  • CouscousCouscous Registered User regular
    edited May 2007
    Puny Human wrote: »
    Legacy wrote: »
    Rorus Raz wrote: »
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    So...they'll copy Nintendo and make bank like always?

    Probably.

    By "copy Nintendo", I presume you mean "come in dead last for two console generations in a row before staging a comeback"?

    Ahh, schadenfreude, sweetest of emotions.

    This is why german is fucking cool. They actually have a word for reveling in your opponent's misery.
    English does too. It is just that everybody forgot about it, and it doesn't sound nearly as cool.
    Schadenfreude>epicaricacy

    Couscous on
  • TheSonicRetardTheSonicRetard Registered User regular
    edited May 2007
    titmouse wrote: »
    Puny Human wrote: »
    Legacy wrote: »
    Rorus Raz wrote: »
    A few years ago, Nintendo was doomed.

    So this can only mean that Sony will release some batshit crazy products that are a laughstock of the industry while in the works, but are released and quickly become private mints for the company.

    So...they'll copy Nintendo and make bank like always?

    Probably.

    By "copy Nintendo", I presume you mean "come in dead last for two console generations in a row before staging a comeback"?

    Ahh, schadenfreude, sweetest of emotions.

    This is why german is fucking cool. They actually have a word for reveling in your opponent's misery.
    English does too. It is just that everybody forgot about it, and it doesn't sound nearly as cool.
    Schadenfreude>epicaricacy

    Hey man, English is pretty fucking badassed, too.

    TheSonicRetard on
  • CouscousCouscous Registered User regular
    edited May 2007
    I like my PS3.

    I liked my Gamecube and Xbox.

    Couscous on
  • NevaNeva Registered User regular
    edited May 2007
    titmouse wrote: »
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere. Specially when they've already made up the lose that the game division made with the PS3 launch with their camera and tv sells and with them investing in Blueray and future game sells.

    Neva on
    SC2 Beta: Neva.ling

    "Everyone who is capable of logical thought should be able to see why you shouldn't sell lifetime subscriptions to an MMO. Cell phone companies and drug dealers don't offer lifetime subscriptions either, guess why?" - Mugaaz
  • ThreepioThreepio New Westminster, BCRegistered User regular
    edited May 2007
    titmouse wrote: »
    I like my PS3.

    I liked my Gamecube and Xbox.

    They also sold well at Future Shop. Maybe Canadians enjoy their games more than others.

    Threepio on
    142.jpg
  • Xenogears of BoreXenogears of Bore Registered User regular
    edited May 2007
    Neva wrote: »
    titmouse wrote: »
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere. Specially when they've already made up the lose that the game division made with the PS3 launch with their camera and tv sells and with them investing in Blueray and future game sells.

    No one said it wasn't doing better than HD, in fact they both came too early and will be outsold by DVD probably their entire lifespan.

    Xenogears of Bore on
    3DS CODE: 3093-7068-3576
  • NevaNeva Registered User regular
    edited May 2007
    Neva wrote: »
    titmouse wrote: »
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere. Specially when they've already made up the lose that the game division made with the PS3 launch with their camera and tv sells and with them investing in Blueray and future game sells.

    No one said it wasn't doing better than HD, in fact they both came too early and will be outsold by DVD probably their entire lifespan.

    Did you just read the first 10 words of my post?

    Neva on
    SC2 Beta: Neva.ling

    "Everyone who is capable of logical thought should be able to see why you shouldn't sell lifetime subscriptions to an MMO. Cell phone companies and drug dealers don't offer lifetime subscriptions either, guess why?" - Mugaaz
  • Xenogears of BoreXenogears of Bore Registered User regular
    edited May 2007
    Neva wrote: »
    Neva wrote: »
    titmouse wrote: »
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere. Specially when they've already made up the lose that the game division made with the PS3 launch with their camera and tv sells and with them investing in Blueray and future game sells.

    No one said it wasn't doing better than HD, in fact they both came too early and will be outsold by DVD probably their entire lifespan.

    Did you just read the first 10 words of my post?

    No, I read more than "With Blueray outselling HD by nearly 2 to 1, despite." I'm good like that. Each and every week the PS3 is coming closer and closer to 360's numbers in the land of the Rising Sun, so the PS3 is going somewhere, exactly where the 360 is. Can't really blame the price, either, as its not much more money over there than the 360. I've heard reports its not even the shitty games holding the sales back, its the size of the shiny grill of doom. No one cares about Cameras in a videogame discussion. Microsoft making a ton off of Office sales doesn't mean jack when it comes to the 360.

    Xenogears of Bore on
    3DS CODE: 3093-7068-3576
  • DevoutlyApatheticDevoutlyApathetic Registered User regular
    edited May 2007
    Threepio in sarcastic parody mode is hilarious.

    The forums should just create an Anti-PS3 megathread and be done with it.

    DevoutlyApathetic on
    Nod. Get treat. PSN: Quippish
  • Puny HumanPuny Human Registered User regular
    edited May 2007
    I'm perfectly willing to stop making fun of Sony and the PS3 when it stops feeling so good.

    Puny Human on
  • NevaNeva Registered User regular
    edited May 2007
    Neva wrote: »
    Neva wrote: »
    titmouse wrote: »
    Ashcroft wrote: »
    Can we just have a Sony is DOOMED sticky?

    PS3 is DOOMED. Sony is just going to have to figure out what to do with a console that isn't doing nearly as well as they expected and is losing them money.

    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere. Specially when they've already made up the lose that the game division made with the PS3 launch with their camera and tv sells and with them investing in Blueray and future game sells.

    No one said it wasn't doing better than HD, in fact they both came too early and will be outsold by DVD probably their entire lifespan.

    Did you just read the first 10 words of my post?

    No, I read more than "With Blueray outselling HD by nearly 2 to 1, despite." I'm good like that. Each and every week the PS3 is coming closer and closer to 360's numbers in the land of the Rising Sun, so the PS3 is going somewhere, exactly where the 360 is. Can't really blame the price, either, as its not much more money over there than the 360. I've heard reports its not even the shitty games holding the sales back, its the size of the shiny grill of doom. No one cares about Cameras in a videogame discussion. Microsoft making a ton off of Office sales doesn't mean jack when it comes to the 360.

    Well, but a lot of people here believe that Sony is in the hole because of the PS3, and that the PS3 is doomed. Neither of which being true. Which was my post.

    Neva on
    SC2 Beta: Neva.ling

    "Everyone who is capable of logical thought should be able to see why you shouldn't sell lifetime subscriptions to an MMO. Cell phone companies and drug dealers don't offer lifetime subscriptions either, guess why?" - Mugaaz
  • CouscousCouscous Registered User regular
    edited May 2007
    With Blueray outselling HD by nearly 2 to 1, despite Blue being newer and more expensive, as well as PS3s big sellers not yet released, on top of poor 360 sells in Japan means the PS3 ain't going anywhere.
    The Wii does exist.

    Couscous on
  • His CorkinessHis Corkiness Registered User regular
    edited May 2007
    I think a far more telling example of the PS3's lack of success is thus:

    It has an install base almost thrice that of the 360 in Japan, yet the 360 is outselling it in software.

    His Corkiness on
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