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200 million consoles sold, and counting. 2 billion software units sold, and counting. $100 billion generated, and counting.
All in just over a decade.
This is the Playstation brand. This is what 10 years of industry domination produces.
Developers, publishers, retailers, advertisers, gamers, parents; a lot of people have made and spent a lot of money on the Playstation business. Those that supported Sony in their console endeavour since the beginning have made out very well for themselves. Peter Moore talks about the lofty goal of touching over a billion people in this next generation, some people laughed at him, personally I think Playstation is already there.
Being the source of this money-making machine gives you a lot of power, and Sony has thus far handled it well. But what's happening now? Why are some people predicting the end of the Playstation brand? Sensational headlines aside, all is not well in the house that Kutaragi built and the current problems of the Playstation 3 will have an impact on the landscape of the game industry for the generation to come.
First: The Rise
The early 90s was a crazy time with Saved By the Bell, MC Hammer, and Grunge. Nintendo is king of the world, their name is synonymous with the game industry as a whole, even developing their own stable of saturday morning cartoons. However, change is coming and it all starts innocently enough.
The scene (completely fictional): a young and brash Ken Kutaragi has an idea for Nintendo, release a jointly-developed SNES based console that uses CD media. He visits the president of Nintendo, the notorious Hiroshi Yamauchi, atop his throne perched on Miyamoto's breaking back. Yamauchi spits in the young man's face, and unbeknownst to him has at that very moment awoke a sleeping giant and the usurper of Nintendo's empire. (For the real story, check out Wikipedia.)
In 1994 the Playstation launches in Japan, a year later makes its debut in North America and Europe. Before release gamers show trepidation towards this new offering by Sony. They make tvs and walkmans, what do they know about video games? They can't compete with SEGA and Nintendo Fortunately for Sony, the Saturn was a mess, and SEGA had squandered almost all of the industry confidence it had gained in the early Genesis days with their mish-mash of ridiculous add-ons. The oft-delayed Ultra 64 becomes the Nintendo 64 and launches two years into the Playstation's life. In the meantime Sony has followed up their impressive launch with a consistent stream of new and innovative titles that gamers respond to in a big way.
Over the next 5 years the Playstation brand grows to extreme proportions, bigger than anything the game industry has seen before. By the end of the 32-bit generation, everybody in the industry, producers and consumers alike have a well-founded and strong belief in the Playstation brand and the money and enjoyment it can bring.
The PS2 is even bigger.
Second: The Rise Continued
It's hard to describe how successful the Playstation 2 has been for Sony. In 6 years it already surpasses what the original Playstation achieved in 11, and it doesn't look to be slowing down soon. Before the PS2 launch there is a ton of hype, which is to be expected considering what its predecessor has accomplished. Sony revels in the press and as the launch nears the statements get to ridiculous levels. And people are buying it hook line and sinker! Why? Confidence. The PSOne showed the world that Sony can pull off an amazing game machine, so people have confidence in what they produce. The PS2 doesn't disappoint. Despite not living up to certain promises, outside of hardcore Internet geekdom, nobody cares. People are too busy playing Gran Turisimo, Metal Gear and watching The Matrix. Sony executes almost perfectly with the PS2 and smashes its own records. The confidence in Playstation is at an all-time high, and justifiably so.
Then, like a championship boxer that has dominated his division, Sony tries its hand at another weight-class.
An Aside: The Playstation Portable
If there's any company that can challenge Nintendo's domination of the handheld market, it's Sony. At least, that's what everybody thought a year and a half ago. Sony and Nintendo both revealed their plans for portable systems around the same time. The juxtaposition of Sony's ultra-sleek and high-tech magic (all encapsulated into the favourite pundit term of "sexy"
versus the toy-like and graphically weak Nintendo DS was jarring to say the least. Before their respective launches you should have seen the statements that were flying out of the mouths and pens of analysts, Sony executives, and forum-goers alike (The dawn of a new age for portable gaming will soon begin). It all seems rather hilarious in retrospect doesn't it? But how could so many people have been so wrong?
It seemed like such a sure bet. Sony was already 2 for 2 with the Playstation franchise, and this black box with the huge screen and 128-bit graphics ALL for only $200, was going up against the DS with only N64-style graphics? Unfair, the comparison was noted. That is confidence. Confidence in the company, and confidence in the brand. As a result of this confidence publishers and developers alike initially support the PSP much more than the DS. The PSP launches with one of the top lineups in video games while the DS struggles to shake off the classic kiddie image. Furthermore, seeing what the PS2 did to DVD sales, Hollywood buys into Sony's vision of UMD and portable movies.
And then ... through a combination of stellar game titles, and redesigned hardware the Nintendo DS is now surpassing all expectations and right now it looks like the PSP will never catch up. In Japan the PSP is floudering heavily, and comparing it to the DS is the definition of unfair. UMD is a commercial failure with studio support dropping to nothing but porn films. The PSP isn't a bomb by any means, it's still doing pretty well in North America and Europe, but it's not a resounding success and a redefinition of portable gaming that people expected out of the Playstation device.
Now my point here isn't to say that the PS3 is going to follow in the footsteps of the PSP. What the PSP has shown, much to Sony's dismay, is that the Playstation brand isn't invincible. Putting those 11 letters on the box doesn't automatically mean $100 billion in sales. What's even more surprising is that Sony hasn't even done anything really wrong with the PSP, on paper it's a fantastic deal. Even in reality, the graphics are beautiful and vibrant, it can play movies, surf the Internet, in fact the PSP with the latest firmware is way cooler than what was promised in 2004. And yet now, over a year later it's selling worse than ever before, and is being totally trounced by the DS. This is the first blow to the Playstation brand that Sony has suffered, which is making people rethink their confidence, but only slightly.
Third: Nowhere to Go but...
Nintendo has an iron grip on the hand-held industry, and now everyone knows that Nintendo will remain kings in that field for a long time to come. The console market is different, people are looking for a different experience in the home entertainment world, and this is one area that Sony knows inside and out. So losing out to Nintendo isn't that big of a deal to Sony, they're still good, it was just one hit. But the blows keep coming and this time it's from Sony themselves.
E3 2005, the year of the target render. KillZone, MotorStorm two infamous game titles are shown at Sony's press conference and blow everyone away. And then the shocker "coming spring 2006" This spectacular scene coming right beside J Allard's lounging on the stage, and very quickly the Internet was alite in agreement: Game Over Microsoft and Nintendo. The PS3 is set to launch only a few months after the 360, show insanely better graphics, and probably be cheaper to boot. Even after some of Kutaragi's statements about working two jobs and saving up, fans just pass it off saying that Sony is fooling MS, Sony is just doing what it always does: hype hype hype and make everyone think it's going to be $1000, and then come in at a mass market $300-$400. Well we all know how that's gone. And what is happening as a result is that the industry is losing confidence in Sony. In the past 6 months there have been some large blows to the confidence in Sony:
*$600
*games that don't meet the promised renders
*PSP performance
*early Blu-Ray quality disappointment
*a large delay (one year in Europe)
*vastly reduced shipment amounts
Whether it's developers making games, retailers giving shelf space, media coverage, or gamers buying and playing the device confidence is directly proportional to the amount of a console's support. Every drop in confidence translates into less developer support, less people willing to spend their dollars, and less shelf space in the store. Sony's mistakes have already cost them millions of dollars, not only in the direct manufacturing expenses that are the cause of these problems, but in lost hardware and software sales.
Still, at this point there is more confidence in Sony and the Playstation brand than the competition, and this is especially true in Europe. But Sony is close to losing that edge, and as a result its position as the market leader. At this point anything is possible. Personally, I have no more confidence in anything that Sony says, so it's projected launch shipment units are completely up in the air in my eyes. If Sony sells less than 2 million units sold by March 2006, then they'll have a massive disaster on their hands. They need to get working consoles out there, they need to have the people buying the games, and they need to rebuild all the confidence that the industry has lost in them. With all the good will that Sony has already lost, the chance to repeat the PS2's massive dominance is slim-to-none, but Sony can still come out on top if they make no more mistakes. And considering everything that's happened, that's an admirable position.
200 million consoles sold, and counting. 2 billion software units sold, and counting. $100 billion generated, and counting.
All in just over a decade.
This is the Playstation brand. This is what 10 years of industry domination produces.
Developers, publishers, retailers, advertisers, gamers, parents; a lot of people have made and spent a lot of money on the Playstation business. Those that supported Sony in their console endeavour since the beginning have made out very well for themselves. Peter Moore talks about the lofty goal of touching over a billion people in this next generation, some people laughed at him, personally I think Playstation is already there.
Being the source of this money-making machine gives you a lot of power, and Sony has thus far handled it well. But what's happening now? Why are some people predicting the end of the Playstation brand? Sensational headlines aside, all is not well in the house that Kutaragi built and the current problems of the Playstation 3 will have an impact on the landscape of the game industry for the generation to come.
First: The Rise
The early 90s was a crazy time with Saved By the Bell, MC Hammer, and Grunge. Nintendo is king of the world, their name is synonymous with the game industry as a whole, even developing their own stable of saturday morning cartoons. However, change is coming and it all starts innocently enough.
The scene (completely fictional): a young and brash Ken Kutaragi has an idea for Nintendo, release a jointly-developed SNES based console that uses CD media. He visits the president of Nintendo, the notorious Hiroshi Yamauchi, atop his throne perched on Miyamoto's breaking back. Yamauchi spits in the young man's face, and unbeknownst to him has at that very moment awoke a sleeping giant and the usurper of Nintendo's empire. (For the real story, check out Wikipedia.)
In 1994 the Playstation launches in Japan, a year later makes its debut in North America and Europe. Before release gamers show trepidation towards this new offering by Sony. They make tvs and walkmans, what do they know about video games? They can't compete with SEGA and Nintendo Fortunately for Sony, the Saturn was a mess, and SEGA had squandered almost all of the industry confidence it had gained in the early Genesis days with their mish-mash of ridiculous add-ons. The oft-delayed Ultra 64 becomes the Nintendo 64 and launches two years into the Playstation's life. In the meantime Sony has followed up their impressive launch with a consistent stream of new and innovative titles that gamers respond to in a big way.
Over the next 5 years the Playstation brand grows to extreme proportions, bigger than anything the game industry has seen before. By the end of the 32-bit generation, everybody in the industry, producers and consumers alike have a well-founded and strong belief in the Playstation brand and the money and enjoyment it can bring.
The PS2 is even bigger.
Second: The Rise Continued
It's hard to describe how successful the Playstation 2 has been for Sony. In 6 years it already surpasses what the original Playstation achieved in 11, and it doesn't look to be slowing down soon. Before the PS2 launch there is a ton of hype, which is to be expected considering what its predecessor has accomplished. Sony revels in the press and as the launch nears the statements get to ridiculous levels. And people are buying it hook line and sinker! Why? Confidence. The PSOne showed the world that Sony can pull off an amazing game machine, so people have confidence in what they produce. The PS2 doesn't disappoint. Despite not living up to certain promises, outside of hardcore Internet geekdom, nobody cares. People are too busy playing Gran Turisimo, Metal Gear and watching The Matrix. Sony executes almost perfectly with the PS2 and smashes its own records. The confidence in Playstation is at an all-time high, and justifiably so.
Then, like a championship boxer that has dominated his division, Sony tries its hand at another weight-class.
An Aside: The Playstation Portable
If there's any company that can challenge Nintendo's domination of the handheld market, it's Sony. At least, that's what everybody thought a year and a half ago. Sony and Nintendo both revealed their plans for portable systems around the same time. The juxtaposition of Sony's ultra-sleek and high-tech magic (all encapsulated into the favourite pundit term of "sexy"
versus the toy-like and graphically weak Nintendo DS was jarring to say the least. Before their respective launches you should have seen the statements that were flying out of the mouths and pens of analysts, Sony executives, and forum-goers alike (The dawn of a new age for portable gaming will soon begin). It all seems rather hilarious in retrospect doesn't it? But how could so many people have been so wrong?It seemed like such a sure bet. Sony was already 2 for 2 with the Playstation franchise, and this black box with the huge screen and 128-bit graphics ALL for only $200, was going up against the DS with only N64-style graphics? Unfair, the comparison was noted. That is confidence. Confidence in the company, and confidence in the brand. As a result of this confidence publishers and developers alike initially support the PSP much more than the DS. The PSP launches with one of the top lineups in video games while the DS struggles to shake off the classic kiddie image. Furthermore, seeing what the PS2 did to DVD sales, Hollywood buys into Sony's vision of UMD and portable movies.
And then ... through a combination of stellar game titles, and redesigned hardware the Nintendo DS is now surpassing all expectations and right now it looks like the PSP will never catch up. In Japan the PSP is floudering heavily, and comparing it to the DS is the definition of unfair. UMD is a commercial failure with studio support dropping to nothing but porn films. The PSP isn't a bomb by any means, it's still doing pretty well in North America and Europe, but it's not a resounding success and a redefinition of portable gaming that people expected out of the Playstation device.
Now my point here isn't to say that the PS3 is going to follow in the footsteps of the PSP. What the PSP has shown, much to Sony's dismay, is that the Playstation brand isn't invincible. Putting those 11 letters on the box doesn't automatically mean $100 billion in sales. What's even more surprising is that Sony hasn't even done anything really wrong with the PSP, on paper it's a fantastic deal. Even in reality, the graphics are beautiful and vibrant, it can play movies, surf the Internet, in fact the PSP with the latest firmware is way cooler than what was promised in 2004. And yet now, over a year later it's selling worse than ever before, and is being totally trounced by the DS. This is the first blow to the Playstation brand that Sony has suffered, which is making people rethink their confidence, but only slightly.
Third: Nowhere to Go but...
Nintendo has an iron grip on the hand-held industry, and now everyone knows that Nintendo will remain kings in that field for a long time to come. The console market is different, people are looking for a different experience in the home entertainment world, and this is one area that Sony knows inside and out. So losing out to Nintendo isn't that big of a deal to Sony, they're still good, it was just one hit. But the blows keep coming and this time it's from Sony themselves.
E3 2005, the year of the target render. KillZone, MotorStorm two infamous game titles are shown at Sony's press conference and blow everyone away. And then the shocker "coming spring 2006" This spectacular scene coming right beside J Allard's lounging on the stage, and very quickly the Internet was alite in agreement: Game Over Microsoft and Nintendo. The PS3 is set to launch only a few months after the 360, show insanely better graphics, and probably be cheaper to boot. Even after some of Kutaragi's statements about working two jobs and saving up, fans just pass it off saying that Sony is fooling MS, Sony is just doing what it always does: hype hype hype and make everyone think it's going to be $1000, and then come in at a mass market $300-$400. Well we all know how that's gone. And what is happening as a result is that the industry is losing confidence in Sony. In the past 6 months there have been some large blows to the confidence in Sony:
*$600
*games that don't meet the promised renders
*PSP performance
*early Blu-Ray quality disappointment
*a large delay (one year in Europe)
*vastly reduced shipment amounts
Whether it's developers making games, retailers giving shelf space, media coverage, or gamers buying and playing the device confidence is directly proportional to the amount of a console's support. Every drop in confidence translates into less developer support, less people willing to spend their dollars, and less shelf space in the store. Sony's mistakes have already cost them millions of dollars, not only in the direct manufacturing expenses that are the cause of these problems, but in lost hardware and software sales.
Still, at this point there is more confidence in Sony and the Playstation brand than the competition, and this is especially true in Europe. But Sony is close to losing that edge, and as a result its position as the market leader. At this point anything is possible. Personally, I have no more confidence in anything that Sony says, so it's projected launch shipment units are completely up in the air in my eyes. If Sony sells less than 2 million units sold by March 2006, then they'll have a massive disaster on their hands. They need to get working consoles out there, they need to have the people buying the games, and they need to rebuild all the confidence that the industry has lost in them. With all the good will that Sony has already lost, the chance to repeat the PS2's massive dominance is slim-to-none, but Sony can still come out on top if they make no more mistakes. And considering everything that's happened, that's an admirable position.
