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Editorial:

Sony Struggles

Are Sony’s fortunes about to change in the current console war?

Now Sony appears to have won the Blu-Ray format war, there are those who say that the tide will turn in their favour. However, bad stories still outweigh the good, and Sony’s problems tend to be of a type that can be loosely described as ‘fundamental’.

Sony’s arrogance rankled many, and the constant promises of how somehow playing on the PS3 would offer a life-changing experience echoed Sony’s stupid boasts about the PS2’s ‘Emotion Engine’.

It is not just a case of dishonest marketing; the decision to include a $200+ Blu-Ray Drive instead of a $10 DVD drive is the kind of hubristic decision that only Sony could make. But with the expense of Blu-Ray technology still remaining stubbornly high, it still hurts the PS3’s chance of mass-market success. And so, even after the victory of Blu Ray, Sony might wonder if the Blu-Ray game was worth the candle - the damage to Sony’s finances since 2006 have exceeded $3 Billion.

But the real infliction of damage came about because of the ineptitude that followed the announcement of the PS3. The now-infamous Killzone demo (widely believed to be a fake video) suddenly cast doubt on Sony’s sincerity and a raft of blunders did great damage to a reputation skilfully built up over a decade. Note the supreme arrogance; note the shoddy treatment of developers; note the surprisingly rapid evaporation of exclusive licenses; note the curious mess as Sony tried to amend its strategy to accommodate the Copernican shift caused by Nintendo’s success with the Wii.

Naturally, the PS3 will get cheaper with time, but the likelihood is that it will be too little, too late to make the PS3 live up to Sony’s ridiculous boasts. While Nintendo’s smart approach will allow them to make the weather for the next generation of consoles, both Microsoft and Sony have to prolong this generation so they can earn their money back from software sales. And while Microsoft can still absorb any losses, Sony is not so resilient and, like Nintendo, may well have to rethink their approach to videogames entirely. But they need to get started soon; Nintendo sewed the seeds of its current success years ago with the Gamecube and DS. Are Sony displaying such thoughtful behaviour? No. They are starting to panic, still unwilling to accept that they managed to fritter away their position as market leader. Without a radical change in their corporate culture, Sony may well find themselves making the same mistakes again.

Bubbaray 29 Jul '08

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