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Sony Claims Game Sector is 'Weak' 71

Posted by Zonk
from the only-where-they're-standing dept.
GamesIndustry.biz reports on comments from Sony CFO Nobuyuki Oneda, saying that the company's dip in profits is due to a 'weak' games industry. "Speaking at a news conference, Oneda said that without the battery recall and PS3 costs to contend with, 'We would have been on track with the midterm plan, or more than that. But the game segment is weak and is the major challenge for us now,' he added. PS2 software shipments during the quarter were down by 3 million units to 47 million, but the figure for PSP software rose from 9.9 million to 12.9 million units. PS2 and PSP hardware shipments rose to 5.02 million and 3.89 million respectively. However, both hardware and software sales were down overall, with sales and operating revenue standing at YEN 170.3 billion (EUR )." In other parts of the 'weak' market, Microsoft is hopeful that they'll hit their 10 Million target by the end of the year. If they do, they're going to have to scramble. Current projections put them at 6 Million sales so far.
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Sony Claims Game Sector is 'Weak'

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  • by cybrthng (22291) on Friday October 27, 2006 @02:05PM (#16613410) Journal
    Gears of war will help the 360 [teamxbox.com] - Not sure what will sell the PS3s. Appears the Wii has Japan locked up - will 2 consoles be able to launch at the same time while the 360 is launching about 40+ local native titles as well (developed/launched native instead of us imports)??

    market shrinking? i think not.. Just the Playstation domination haseth cometh to its endeth
    • Gosh...I wonder why PS2 sales are down? Hmmm...let's see:

      - dated technology...inferior to other available consoles...and latest PCs

      - the company that sells it has been hyping its replacement for the last two years



      I may need to consult NSA to decode this puzzle.
    • Re: (Score:1, Troll)

      by kinglink (195330)
      Are you kidding? Gears of war selling 4 million consoles? It'll be lucky if it sells 2 million games.

      10 Million is ridiculious of Microsoft to say, but I'll assume they mean by this time next year. The only chance microsoft has of hitting that is Blue Dragon and Japan. Other then that it's not going to jump.

      That being said there's a shot with Blue Dragon, we'll see.
      • Re: (Score:3, Informative)

        by cybrthng (22291)
        360 is the fastest selling console in many markets. 6 million sold was still on the heels of poor manufacturing performance and i actually believe MS year end for forecast is March not necessarily dec 31st so with holiday season come full swing, many of the "first tier" launches coming up this year and the other consoles being slim pickings i wouldn't be suprised if MS surupasses its figures.

        If not for anything the 360 will sell as vista gets released to be a media center front end as well.

        If GOW sells 2 m
        • by JFMulder (59706)
          Microsoft said time and time again they wanted a 10 million head start before Sony launched. They are referring to the fact that Sony shipped 10 million PS2s before the first Xbox and Gamecube launched. They have failed, as Sony and Nintendo are shipping a month from now. It's going to be a tighter race then Microsoft would have liked.
    • Forget Gears of War! Has anyone tried Marvel Ultimate Alliance? This game will sell 360s! I'm pretty low on the geek meter but this game makes me shout binary and read Slashdot! ...wait
      • Marvel is on many platforms, including the PS3 and even the PS2. System movers are typically exclusives.
        • by cybrthng (22291)
          Yeah, marvel is on all of the systems practically but for "next gen" the 360 will be the easiest to buy and cheapest.
          • The easiest and cheapest system to buy for will be the PS2.

            The ability to make the game a system draw on the 360 then depends on the value to the consumer only of the "Next Gen" aspect of the game, where the gameplay is going to otherwise be the same between the 360 and the PS2... except that a cheaper way to get that "Next Gen" flavor also exists, the Wii. Nintendo should be able to have a lot more units available.

            On the PS3 and Wii you'll be able to use motion control in the controls for the game, which
        • Absolutely true, however:

          1. PS2 is now old school
          2. PS3 is not out yet
          • The PS2 may be old school but it's what a lot of people have already, and new PS2 units are still outselling the 360 so for those buyers the system will be new.

            The PS3 and Wii will be out soon enough that the time delay difference does not matter much for people who want to wait for the PS3 or Wii versions (both of which offer motion controlled enhancements to gameplay).

    • The system mover for the PS3 is Resistance: Fall of Man.

      Kind of funny that the two big system movers both end up being futuristic combat titles.

      Hard to say the domination of the Playstation has come to an end when month to month the PS2 still outsells the 360, that's more people buying up games they may eventually run on a PS3. Nintendo will obviously do very well with the Wii, as they always have.
      • by cybrthng (22291)
        Cliffy did give that game rave reviews, but he also said its two different styles of play - even though they're both "shooters" so it will be cool to see these two titles duke it out!
        • by Dev59 (953144)
          I'd certainly be happy to play both of them - as they both look like they'd be fun for different reasons. The pop-and-shoot gameplay for Gears of War looks like it has beem implemented very well and the graphics are ace. Resistance looks like it has some cool weapons and great level design in a more straightforward shooter.
      • The system mover for the PS3 is Resistance: Fall of Man.

        Kind of funny that the two big system movers both end up being futuristic combat titles


        It is not really funny but makes a good argument for people who say that the videogame industry is becomming far more generic as development costs increase.
        • Kind of funny that the two big system movers both end up being futuristic combat titles

          It is not really funny but makes a good argument for people who say that the videogame industry is becomming far more generic as development costs increase.

          I'd say it's more an example of tastes just changing, and maybe a short memory on the part of some slashdotters.

          Pre-crash "system movers" were simple arcade ports like Pac-Man and Donkey Kong. 8-bit "system movers" were platformers i.e. Mario 3. The 16 Bit Gen s

        • It is not really funny but makes a good argument for people who say that the videogame industry is becoming far more generic as development costs increase.

          I think I know what you mean but is generic really a good term? It seems the plethora of militarily-themed combat games is getting more specific and pigeon-holed, not generic...

          I'm not saying I don't like them but it does seem like an awful lot of a very few games types compose the majority of system games.

          I really think the online games from both the PS
      • by JFMulder (59706)
        The system mover for the PS3 is Resistance: Fall of Man.
        It's interesting to be reading this because it certainly might be a system seller over in North America and Eur^H^H^H, what is going to be the system seller in Japan? Genji (Flip crab for massive damage!) and Riiiiiiiiiiidge Raaaaaacer probably. (Seriously, people are still going to have a laugh at this for a while.) Which, if I'm not mistaken, aren't popular franchise or appeal much to North American audience. This launch line up if really geared towa
  • by denebian devil (944045) on Friday October 27, 2006 @02:05PM (#16613432)
    So basically what they're saying is if it wasn't for them screwing up horribly and for intentionally making their products cost way more to manufacture than they could possibly sell for (which of course they do for the consumer, not as a way of pushing their own format innovations), it still wouldn't be their fault they're not making money because it's the INDUSTRY'S fault. I'm especially amused by the related article: "Nintendo Profits Up 72%, Sony's Down 94%" Hey Sony, what's that do to your theory that the industry is to blame when in fact a company that bases ALL of their profits on gaming is doing well, whereas your company, which does only a fraction of its business in gaming, is not doing quite as well.

    Hey Oneda, how exactly do you need to "contend with" PS3 costs when that is something that's entirely within your control?
    • It will probably be something like the following statement: "Nintendo usually does so poorly in the market that it is very easy for them to outperform their previous earning. Sony, on the other hand, is a market leader. And when our product takes a dive, it is obviously indicative of where the industry is heading."
      • by 7Prime (871679)
        And they would be dead wrong, GBA SP was the best selling console for at least 4 years in a row, only to be overthrown by the DS. If we're talking units sold, Nintendo kicks the shit out of Sony. If we're talking profits, Nintendo kicks the shit out of Sony. Only thing that Sony can claim is that they sell more TV-Top units... and in the business world, compared to overall profits and mindshare, that means SHIT.
        • I don't deny that they'd be wrong. But look at all their cases of lying and trash-talking in the recent past. Sony Australia says Wii is too expensive. Sony Europe says that DS is selling horribly. Sony Japan says their batteries don't explode, it's the computer assembler's fault, then they have a recall for their own machines. It's like they live in their own little world.
        • And they would be dead wrong, GBA SP was the best selling console for at least 4 years in a row, only to be overthrown by the DS. If we're talking units sold, Nintendo kicks the shit out of Sony.

          If we're talking total handheld units sold, that is true. Consoles, its not even remotely close. There's about 10x as many PS2s in the world as there are GameCubes.

          • by Phisbut (761268)
            If we're talking total handheld units sold, that is true. Consoles, its not even remotely close. There's about 10x as many PS2s in the world as there are GameCubes.

            A handheld gaming console is a gaming console is a console.

            And considering the amount of PS2's that died after warranty, making people buy a new one, I don't trust Sony's number. Sure they sold a whole lot of millions of PS2, but not all of them are still in use/still usable.

            • A handheld gaming console is a gaming console is a console.

              Ok, fair enough.

              And considering the amount of PS2's that died after warranty, making people buy a new one, I don't trust Sony's number. Sure they sold a whole lot of millions of PS2, but not all of them are still in use/still usable.

              Its not a matter of 'trusting Sony's number'; the # of retail units sold comes from - surprise! - retailers.

              Anyways, your point doesn't stand at all.

              Nintendo
              Total DS units sold: 26 million
              Total Gamecubes so

              • by 7Prime (871679)

                You forgot to mention the very thing I was refering to:

                Nintendo:
                Total GameBoy Advance units sold: 76.79 Million

                Also, the current PS2 figure is: 106.23 Million units SHIPPED, not sold. There is no figure on units sold that I can find.

                Nintendo's total console unit sales are 127 Million, and Sony's are 128 Million. So, yes, I was a bit off sugggesting Nintendo's total sales were higher, but if they are behind, it's not by much.

                But I do agree, that getting into a discussion about how many PS2 units f

                • Total GameBoy Advance units sold: 76.79 Million

                  Well that's not fair - the GBA launched years before the PSP, Sony had no portable at that time :)

                  But your larger point is well-taken. Price won't kill Sony, but they will take a well-deserved pounding for it.

              • by KarmaMB84 (743001)
                Which will mean fuck-all if the PS3 even remotely fails to meet expectations and Sony implodes while Nintendo turns a profit successful Wii or not.
    • by El Torico (732160)
      The games industry isn't weak; Sony is.
    • by thatguywhoiam (524290) on Friday October 27, 2006 @02:44PM (#16614142)
      So basically what they're saying is if it wasn't for them screwing up horribly and for intentionally making their products cost way more to manufacture than they could possibly sell for [blahblahblah snipped]

      No, what he's saying is that Sony's game sector is weak at the moment. Look at the context. They would have been on track but the battery recall cost them over 400 million dollars, and they know that SCE is precarious just before a console launch because of development costs and the fact that the PS2 is ancient (and competing with newer hardware).

  • So, you piss off your customers in almost every way possible, then blame the industry as a whole as the reason you're losing extreme amounts of money, where Nintendo is making extreme amounts, and MS isn't doing bad either? Yeah, that's totally the industry's fault. Sony Execs: If it weren't for competition, we'd be making money because we're the only game in town! Damn you, Nintendo and Microsoft! And your fat plumbers and Master Chiefs too!
    • Re: (Score:2, Informative)

      by Dev59 (953144)
      RTFA - hell, just read the quote in the post. You don't even know what you're talking about - all you're doing is spouting mindless drivel.
  • by drinkypoo (153816) <martin.espinoza@gmail.com> on Friday October 27, 2006 @02:15PM (#16613600) Homepage Journal

    While this may be an appropriate characterization, I don't think so. From the article it's not clear that's what he's saying. It seems to me more like he's saying that Sony's game division is weak. Just read the quote:

    "We would have been on track with the midterm plan, or more than that. But the game segment is weak and is the major challenge for us now."

    He's not saying that the "games market" is weak. He's saying "the game segment". Segment of what? The market? The company? He doesn't specify.

    Now, maybe he said this stuff in Japanese, and this is a translation? In which case, how accurate is the translation? Perhaps what he actually said was that the game market is weak, but this article doesn't tell us that. Perhaps he definitively said it was Sony's game division that was weak - the article simply doesn't give us enough information to say and there is insufficient context to even draw any kind of well-supported conclusion. Or even poorly supported.

  • Ok, I admit. You make some decent hardware. The PS2 is very good game console (once you worked out all of the kinks in it). I can understand how you would feel about people bashing you on all the time. I just don't see the reason in try to justify it over a crappy sales slump. I mean, you have the next gen systems coming out soon (including yours), of course there are going to be less software sales overall. People are trying to save up for the next set of systems. Wouldn't you want them to spend mon
  • News at 11:00.

    -Rick
    • Re: (Score:1, Funny)

      by Anonymous Coward
      "Sony is dead."
      -Nietzsche

      "Nietzsche can wait."
      -Sony

      "The N64- & GC-era rumors of my death were greatly exaggerated."
      -Nintendo

      "360 should be enough for anyone."
      -Microsoft
  • by MBCook (132727)

    Yep. "The industry is dying." I'm sure this is COMPLETELY different from every other time game sales drop off before a new console launch. And I'm sure the PS2 isn't down because everyone and their brother owns one, or the fact that Sony has been hyping a $600 console for over a year (so if you want one... SAVE UP). I'm sure the PSP hasn't grown much because no one is buying stuff, not because Nintendo is stealing all their sales. I'm sure Microsoft having the 360 out NOW has had nothing to do with the PS2'

    • by Dev59 (953144)
      Yay, more rants without reading anything beyond the title! Zonk REALLY knows how to bring in the idiots. Read the quote. READ IT. Sony is talking about their games sector being weak. Because of slowing sales of the PS2. Which makes complete sense. They are not saying the industry is weak, you....

      GAH!!! Why do I even try? Zonk has really managed to turn the games section on /. into a cesspool of ignorant and idiotic rantings and ravings.
  • It is time (Score:1, Funny)

    by Anonymous Coward
    The games industry is weak. That's why this is the perfect time to flip it over and hit its stomach for massive damage.
  • Stop spending money on suing a company that makes you money by selling your products was not a good idea. You lose money and you get all the bad-will from assorted angry gamers.
    • by neminem (561346)
      Stop writing down a sentence and then halfway through thinking you wrote something else doesn't parse very well.

      In unrelated news, I agree fully with what you intended to say.
  • Because the majority see no point in buying shit for a platform that you're, for all intents and purposes, phasing out. Ok so they're keeping the PSP, but no one sees a point in buying that period.

    The games market is in transition, but I wouldn't say it's "weak."

    This is some over-paid CPA bitching that people aren't buying their current products while also lining up with cash in hand for their new products. It's the same old shit, "People aren't giving us enough money!"
  • Zonked again. (Score:4, Insightful)

    by oGMo (379) on Friday October 27, 2006 @02:51PM (#16614286)
    I love how in the transition between actual quote and article/topic it went from "game segment" (referring to Sony's game division, using "segment" because we're talking about financials) to "game sector" and the explicit claim they're referring to the entire "games industry". That's some great journalism. By which I mean some really poor elementary-school reading comprehension skills.
  • I mean, everyone's waiting to attack the giant enemy crab in its weak point for massive damage!

    (and sheesh, if you already have your copy of Ridge Racer, what more do you need? RIIIIDGE RACERRRR!!!!!)
  • Well... if you count all the money people must save for their upcoming console, and that's a hell of a lot of money, i bet they aren't weak at all!
  • What Sony's saying now is exactly what Nintendo was saying for years... the video game market in Japan has been contracting for awhile now, and the rest of the world has been fairly sluggish. That was the whole reason Nintendo has focused their recent strategy around non-gamers, Sony and Microsoft are spending more and more fighting over pieces of a shrinking pie.

    Sony'd been denying this for a long time, and it finally swam up and bit them in the ass this quarter. Good for them, they finally get it. The rea
  • I don't know how it is in other parts of the US or the world, but in my area it seems like every eb/gamestop and independent retailer have piles of used PS2s for relatively cheap (not to mention craigslist/ebay). Furthurmore, with the PS3's (probably dodgy but included) backward-compatability and the inevitability of a HUGE flood of used PS2's once Wii and PS3 come out, it seems logical to me that there would be a drop in hardware sales. Who wouldn't see that RIGHT BEFORE the PS3 launch buying a *new* PS2

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