I try not to get involved in these smack talk press statements and communications. But sometimes you just have to speak up when nonsense is polluting the air. Sony Computer Entertainment's branches still continue their bizzare and some would say delusional public statements about their status vs. the competition's. Who could forget Sony Computer Entertainment, Inc. President and Chief Executive Officer Kaz Hirai's insane comments to February's Official PlayStation Magazine in the midst of the Obama inauguration? If you remember that, then let me tell you the laughs don't stop there.
Sony Computer Entertainment America's Director of Hardware Marketing John Koller made an eye-popping statement that was sent by Sony's public relations team to Engadget.com. In it, the executive seems to be lecturing Nintendo on how to reach broader markets in the case of the now-just-released DSi! Wha?! The smack-talking statement made just before the April 5th DSi launch follows in its entirety next...
Statement from Sony PlayStation on PSP and Competitive Landscape
If Nintendo is really committed to reaching a broader, more diverse audience of gamers beyond the "kids" market that they've always engaged, there isn't much new with the DSi to support that. Significant gamer demographic groups are being ignored, and there continues to be limited opportunities for games from external publishers to do well on the DSi. Compare that with the PSP platform, where we have many blockbuster franchises from our publishing partners launching this year, representing a wide variety of genres and targeting diverse demographics. Games such as Rock Band Unplugged from MTV Games, Assassin's Creed from Ubisoft, Dissidia Final Fantasy from Square Enix, and Hannah Montana from Disney demonstrate the commitment that publishers have to the PSP. From our own first-party studios, we're launching unique versions of LittleBigPlanet and MotorStorm, and we're also planning a steady stream of downloadable games -- both new titles and PSone classics -- to add to the content that PSP owners can already purchase wirelessly through PlayStation Store.
Is he serious? Really now? The DS and PlayStation Portable launched at nearly the same time yet DS has more than double the sales of the PSP. VGChartz.com's estimates at the time of this writing (April 6th, 2009) – DS: 100.85 million, PSP: 46.51 million. Sony, although resurgent somewhat in Japan, has been struggling overall in the videogame market for the past 3 years at least. Videogame industry market research firm DFC Intelligence had announced last August that in 2 years time the losses from sales of the PS3 console exceeded the 5-year profits from the sales of the PS2, the best-selling console of all-time. Break it down. More money was lost in the first 2 years of the PS3 than was gained in the heyday of the first 5 years of the best-selling console in world history, the PS2. Estimated number of loss is said to be $3 billion.
Comparing the same month from different years in the U.S. shows that all PlayStation systems are on a declining trend since the monthly sales of the current year don't match the monthly sales the previous year and are getting closer to the monthly numbers of their opening years. This is bad because the PSP is over 4 years old along with similarly aged competitor DS from Nintendo which is actually on rising trends. It's bad because the PS3 is about 2 1/2 years old, feverishly battles for position with similarly focused competitor XBox 360, the 3 1/2 year old from Microsoft, and far overshadowed by similarly aged competitor Wii from Nintendo (both competitors on rising trends to say the least). It's bad because the record-selling PS2 is 9 years old and preparing for the console graveyard with the new consoles reducing its appeal in the market. The PS2 was also supposed to bridge its audience to the PS3 but that plan falls apart with its sales in sharp decline and most of that audience already having been picked one or both of the other competitors.
Sony Corporation as a whole is laying off workers and freezing or cutting wages/bonuses. There is a big loss expected for the soon-to-come announcement of their 2009 fiscal report. The company's restructuring and consolidating departments. People are tightening their wallets, holding firm to jobs if they still have one, reordering priorities of needs vs. wants. The world's economy has been shaken. The competition's got his company's number. And he has the nerve to actually spout off this kind of bull??
The PS3 desperately needs a price cut just to get the opportunity to "maybe become competitive" with the 2nd place ranked XBox 360. But with how Sony's set up right now, they might not be able to make that move without hurting themselves even more. As was seen in the Nintendo Gamecube era, price cuts don't necessarily save the day. So that's a concern not to mention that Microsoft, the company bold enough to waste nearly $4 billion on the XBox just to get their foot in the market's door, can easily respond with their own price cut backed and subsidized by the virtually endless funds from their computer operating system monopoly. Sony hasn't yet announced any plans to make this move instead preferring to FINALLY cut the PS2 down to $99 from its former $129.
The 7th console generation competition has been going on for 3 years with all 3 competitors matching up for the past 2 of those. Changes in the pecking order have to be done earlier not later. If Sony's systems overall are in decline and significant progress is not being made to change this trajectory, how in the world can this marketeer belittle Nintendo who has sold beyond people's wildest dreams? How can he belittle any competitor?
Unlike what Kaz Hirai has said to Official PlayStation Magazine, Sony is NOT the official industry leader. This type of haughtiness will not get the job done in turning around Sony's dwindling fortunes. PSP did not succeed in the goal of elevating portable entertainment from the handheld gaming ghetto. But they have survived in challenging the decades-long ruler of the handheld console market. Be proud of that and work on extending that success for the future. Instead of these puffed-up statements of 'phony tough and crazy brave', Sony's execs better learn some humility soon before market and economic realities begin intruding on their fun but foolish delusions.
Words from the Inspector: Go Engadget Go!
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