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Latest News

Sony CEO: Wii Business Model 'Superior,' Sony Won't Recoup PS3 Investment

by Blake Ellison, Aug 28, 2008 12:09pm PDT

Related Topics – PlayStation 3, Sony

Sony CEO Howard Stringer, pictured at left, confessed that the Wii "may be a superior business model" in a recent interview.

"The major difference lies in the fact that Nintendo makes money with the hardware alone," he explained to German newspaper Die Welt.

As for when Sony will recover the $3 billion it spent on the PlayStation 3, Stringer responded with a laugh, "Not for as long as I live."

He then turned serious. "It will certainly take some time. ... We are currently at the stage in which we need to get a grip on the production costs. That takes time," he said. The CEO stressed that the company is now making more money on PlayStation 3 games than it is losing on hardware sales.

Stringer also cast doubt on recent claims that the PlayStation 3 would see price cuts this year. "I think not," he stated when asked if the system would see a price cut before this Christmas.

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Comments

11 Threads | 74 Comments*

#1

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By: distauma x Show Full Post

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The Wii might be the best business model, but it's the worst model going forward for the true video gamers

Aug 28, 2008 12:12pm PDT

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The Wii might be the best business model, but it's the worst model going forward for the true video gamer... : distauma
Thread Truncated. Click to see all 29 replies.

#72

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By: megreedy x Show Full Post

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Gotta give respect to someone that tells it how it is....

Aug 28, 2008 8:02pm PDT

Gotta give respect to someone that tells it how it is.... : megreedy

#34

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By: Fred Garvin x Show Full Post

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Sony made a design decision that was predicated on massive brand loyalty and when that didn't happen they had to struggle to get costs down quicker than they had anticipated. Remember when they said they had superior BC because it was important and now they are saying that customers tell them BC isn't. This generation really shows how hardware choices make a massive difference in the long run. Microsoft fucked up massively on the original 360 design, Nintendo chose a radical control scheme with cheaper hardware and Sony went balls out and got caught by their own complexity. I really wonder how things will shake out next time. You can guarantee there will be more emphasis on casual gaming, but let's hope they don't put the hardcore market in the back seat.

Aug 28, 2008 1:29pm PDT

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Sony made a design decision that was predicated on massive brand loyalty and when that didn't happen they... : Fred Garvin
Thread Truncated. Click to see all 7 replies.

#63

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By: pudd x Show Full Post

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At least they don't bullshit their position in the market like Microsoft does when it comes to the Wii. You both got beat. Microsoft and Sony positioned themselves against each other. Nintendo went for a completely untapped gaming market that was ripe for the taking. This doesn't mean gamers will start in the Wii and "graduate" to the 360. I don't think those people in the old folks home are going to graduate anytime soon to anything other than a coffin, Wii controller firmly in hand.

Nintendo did so many things right in a market that was becoming very elitist.

Aug 28, 2008 5:11pm PDT

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At least they don't bullshit their position in the market like Microsoft does when it comes to the Wii. Y... : pudd
Thread Truncated. Click to see all 2 replies.
- Nintendo really went into a new market. They might as well be selling pens and pencils as far as I'm conc... : nudel

#8

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By: orgcaptainnemo x Show Full Post

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This headlines is so bad. He said "may be superior" and then you lead the headline with "Superior". The "may be" is pretty fucking important and provides a lot of context.

I'm sure the headline will change 3 times just like they always do though.

/rolls eyes

Aug 28, 2008 12:30pm PDT

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This headlines is so bad. He said "may be superior" and then you lead the headline with "Superior". The... : orgcaptainnemo
Thread Truncated. Click to see all 10 replies.
- Dude, I know you want to play Tiger Woods, but did you really need to take it out on Blake? :( : ejectorpod
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  Compared to the hyperbole that usually comes out of corporations, saying the other guys "may be superior"... : danielbrauer
  - How does this relate to my post at all? : orgcaptainnemo
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  And I am sure someone will bitch no matter what the headline says like they always do. : Fred Garvin
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    Not if it was actually correct and not misleading. : usedillusion
    - Some people's estimation of "misleading" is a little silly. : Fred Garvin
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  This post is awful. He used the adjective "superior" to describe the competition. The qualifier "may" is ... : MaxPete82
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    Everyone on the Shack is a master critic/journalist. : Fred Garvin
    - Even me? Awesome... : SlingBlaze

#30

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By: richcz3 x Show Full Post

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SONY gambled big on BluRay but DVD sales in general are slowing down. Not unlike the downturn on CD music sales starting in 2000. Premium downloads of movies will probably hit their stride in 3 - 4 years making BluRay as essential as a home CD player.

Its ridiculous that the Wii is still sells out at the local Best Buy. How is this even happening?
I know allot of people who purchased a Wii and don't even use them after two weeks. Most if not all collecting dust now. Business model - On cost to make and profits - Nintendo beats down SONY and MS.

Aug 28, 2008 1:18pm PDT

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SONY gambled big on BluRay but DVD sales in general are slowing down. Not unlike the downturn on CD music... : richcz3
Thread Truncated. Click to see all 2 replies.
- It's happening cause (alert alert - fictive number comming) 90% of people couldn't care less if there's a... : FTY

#18

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By: Porkasaurus x Show Full Post

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Yeah no shit, the Wii is a Pentium 1 with a 3DFX card hooked up to a vibrating remote.

Nintendo is fucking brilliant.

Aug 28, 2008 12:49pm PDT

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Yeah no shit, the Wii is a Pentium 1 with a 3DFX card hooked up to a vibrating remote. Nintendo is fu... : Porkasaurus
Thread Truncated. Click to see all 4 replies.
- What? : SlingBlaze
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  Yeah no shit, the Wii is two PDP7's glued together with a yard stick for a controller. : kaddar0
  - yeah no shit, the wii is just two farts with a exfoliating back rub as a controller. : disembodied potato

#24

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By: jonin x Show Full Post

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That picture kills me.

Aug 28, 2008 1:02pm PDT

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That picture kills me. : jonin
Thread Truncated. Click to see all 7 replies.

#4

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By: adsriordan x Show Full Post

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No price cut is really going to hurt when you will be able to pick up a 360 for $199 in the coming weeks.

Aug 28, 2008 12:21pm PDT

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No price cut is really going to hurt when you will be able to pick up a 360 for $199 in the coming weeks.... : adsriordan
Thread Truncated. Click to see all 6 replies.
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  ha 199 i can do one better... http://www.microcenter.com/search/search_results.phtml?search_within=xbox+3... : Ronin_Okami
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    Eh, refurbished isn't something you want with a 360. : deadhorse
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      New isn't any more reliable. : SinistarX
      
      New gives you a guarantee. : code-e255
- Yeah, they might be able to survive where they are now, being $120 more than the Tardcade and $50 more th... : theflux

#3

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By: Attica Blue x Show Full Post

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Seems unreasonably pessimistic to me. Doesn't Sony get a cut of all games sold? That plus hardware sales sounds like it should make back their $3 billion, but perhaps much more slowly than with the other consoles.

Aug 28, 2008 12:19pm PDT

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Seems unreasonably pessimistic to me. Doesn't Sony get a cut of all games sold? That plus hardware sales ... : Attica Blue
Thread Truncated. Click to see all 5 replies.

#17

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By: alalkoolj x Show Full Post

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lol consoles seem to suck around now :)

Aug 28, 2008 12:49pm PDT

lol consoles seem to suck around now :) : alalkoolj