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Kutaragi Admits Sony Hardware In Decline 68

An anonymous reader writes "In a surprising admission, Sony Computer Entertainment President Ken Kutaragi acknowledged that Sony's strength in game hardware might be in decline. BetaNews has the article, which reports on Sony's PS3 struggle for the holiday season." From the article: "In an extraordinary public statement of regret and despair over having to postpone his company's PlayStation 3 debut in Europe and Australia until March, and to limit availability elsewhere to only 500,000 units come November, Sony Computer Entertainment President Ken Kutaragi is quoted by Reuters as having told reporters, 'If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true.'"
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Kutaragi Admits Sony Hardware In Decline

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  • Sony's problem (Score:5, Insightful)

    by Yvan256 ( 722131 ) on Saturday September 09, 2006 @02:26PM (#16072106) Homepage Journal
    They think they're the #1 in electronics and gaming, but they're no more important than Toshiba, Hitachi, etc.

    Given their obsession with proprietary Sony software (ATRAC comes to mind) and hardware (miniDisc, memory stick - when we already have too many flash standards already, UMD, etc), the general public is less likely to choose Sony in the first place.

    Then add PR fiascos like the rootkit, the PS3 delays, the PS3 price tag and the latest "Blu-Ray doesn't look much better than DVDs" comments I've read, Sony better do something before it's too late.

    However, seeing their new "Four PSP movies locked in a single 1/2GB memory stick that you have to unlock and then still only play them on the PSP" idea, I have no hope left for them.
  • Go ahead (Score:2, Insightful)

    by Tsiangkun ( 746511 ) on Saturday September 09, 2006 @02:26PM (#16072110) Homepage
    Ask me if I care.

    I'm still in shock really. I was anticipating the PS3 for years, and then in just a few months, SONY destroyed any desire I have to do business with them ever again.

    I don't know about you, but in my house Wii have already decided what Wii think of the PS3. They could have a mere dozenPS3 ready by november, and it wouldn't change a thing for me.

    I discriminate against companies infected with DRM [sony.com]
  • by Mr. Samuel ( 950418 ) on Saturday September 09, 2006 @02:41PM (#16072170)
    ...I'd be planning every conceivable way to capitalize on Sony's situation. A small, highly advertised price drop, a pack-in game with every console, or whatever it takes.

    Yeah, Nintendo wants to create the mass appeal console, but I'm not certain that they'll crack the mainstream market yet. I'd say the Christmas season is Microsoft's to lose.

  • by ConfusedSelfHating ( 1000521 ) on Saturday September 09, 2006 @03:39PM (#16072345)
    For nearly every product there is negative news, as well as positive news. Where is the positive news for the Sony PS3?

    It seems that for the price they want to charge ($499/$599) everyone wants an amazing system. If the Wii ends up only having five good games, it's a pretty cheap system so people won't complain. If the PS3 has only five good games, Sony needs to fireproof their headquarters. The Xbox 360 at $299/$399 is still considered too expensive for most people, most people who like the idea of buying the 360 want a $100 price drop (I'm not saying we'll get it, but we would like it).

    Sony has created a console which gives very little room to manuever. It would only be successful under the following circumstances:
    - the Wii is a failure
    - the Xbox 360 is a failure
    - people are happy to pay $700 for a console + game + HD cables
    - manufacturing is successful at producing large numbers of PS3s

    I think Microsoft will drop the price of the Xbox 360 pretty soon to increase their install base. I think quite a lot of people will buy the Wii whether it's $170 or $225. There are a lot of complaints from people who own PS2s about the high PS3 price. Their manufacturing has been less than successful in producing the number of PS3s in the time frame needed.

    Personally I will purchase the Xbox 360 when I can get 65 nm version with a hard drive for $300. I wasn't really impressed by the footage of the Wii (IGN has a 20 minute demonstration on their website), but they may release games that appeal to me. The PS3 may be a good deal when it hits $300 for the premium version, but that will be about 3 years from now and there will be new consoles being released.

    If anyone has positive news about the PS3, could they please post it.

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