The Master Plan Worked..aside from the minor hiccup!!! (medium read)

What master plan you may ponder?!?!? Its the plan to rejuvenate an entire corporation with release of a product that embodies all the technologies of that corporation in one product meant to masquerade as a gaming console. Yes folks, its Sony and the beloved PS3!!!!

Now before the Sony fanboys go on a tirade of damage control bombarding me with "bu-bu-but teh CeLL" or "wait til 20xx and S0ny wi!L sHow iTs pot3ntiAL!!!" or my personal favorite, the itemized list of unreleased/unproven games due to launch sometime next year and beyond. This topic isnt about that, its about how the plan worked to put Sony's ailing departments back in the black as intended with the launch of the PS3.

As any informed consumer would know, Sony was in the red in all of its departments except for its gaming division. The greatness of the Playstation brand (PS1 and PS2) allowed the corporation to stay afloat during its most difficult times. With Sony facing tough competition and falling behind the times on multiple fronts (TV's, Movies, Music, Electronics, etc, etc...), the Playstation was the only product pulling its own weight and more. With that knowledge Sony devised a plan to replenish its revenue and put its company back on top as a electronics juggernaut.

Since no other product could reach the masses in Sony's arsenal, the next gen Playstation (PS3) would become the gumbo pot of technology (the trojan horse, as some may call it) to advertise all of its products in one device (minus the TV, :P ).

To be quite honest Im suprised the plan worked but there was one minor hiccup....While the various divisions of Sony were able to post profits, the PS3 (the product that initiated the plan) is not selling well as anticipated. For all the fanboys just stop with the damage control...dont even take it there, the PS3 is not selling well at all...in any region!

Im sure this wasnt part of the overall plan, but Im sure it is something Sony wont lose any sleep over. Its funny how people bashed MS for wanting to break in to the gaming market to get a taste of its profits while completely forgetting that Sony did the same thing (a company not known for gaming wanting to break the into a market foreign to them). Remember people, Sony is not Nintendo, they are not a gaming company that needs to game in order to survive. They sell electronics and of course they have more products to sell than just a gaming console.

As a gamer that supported their initiative during their entry into the market (a breath of fresh air in gaming), I am ashamed in the manner they are handling their product. But business is business and hopefully they will produce a product next gen intended for gaming now that Sony Corporation dire days are over.

Game On....

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

ZIMdoom

The company rose from the ashes (not literally) because of the PS3....The hype leading to launch, the investments in various devices, the advertisements of supporting products were all related to the PS3.

e.g.

Sony touts the PS3 will play games in 1080p ....lead to rise in HD TV's

Sony touts Cell is the best CPU in the world....R&D from different organizations implement Cell into their programs.

Sony claims Blu-ray is the format of the future...TVs, entertainment systems, Blu-ray movies

Sony has card readers on the PS3 for media....Mem stick duo sales up

In a nutshell people bought products related to the hype of the PS3 helping Sony get back on track. Unfortunately the only thing that isnt selling well is the PS3 its software.

Game On....

I'd contribute the memory sticks sales boost more to the PSP than the PS3. But in generalyou make a good point with all this.

(Why the hell can't I quote anymore!?)

@ FatalDomain

Great post, I admire your insight!

[QUOTE="ZIMdoom"]

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

FatalDomain

The company rose from the ashes (not literally) because of the PS3....The hype leading to launch, the investments in various devices, the advertisements of supporting products were all related to the PS3.

e.g.

Sony touts the PS3 will play games in 1080p ....lead to rise in HD TV's

Sony touts Cell is the best CPU in the world....R&D from different organizations implement Cell into their programs.

Sony claims Blu-ray is the format of the future...TVs, entertainment systems, Blu-ray movies

Sony has card readers on the PS3 for media....Mem stick duo sales up

In a nutshell people bought products related to the hype of the PS3 helping Sony get back on track. Unfortunately the only thing that isnt selling well is the PS3 its software.

Game On....

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

Well In general most gamers were getting their setups ready for the launch of the PS3 which lead to alot of electronic sales.. This boost in sales is what helped Sony during its troubled times of lawsuits, recalls, and diminished reputation in the electronics realm.

Game On...

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

GundamGuy0

You can't prove statistical correlations, you can only infer them. His facts regarding the before and after fiscal situations of the Sony departments are inline with reality. His inferance that these changes from Sony being in the red to Sony pushing into the green is a sound argument, and is consitant with the data he shows.

[QUOTE="GundamGuy0"]

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

rimnet00

You can't prove statistical correlations, you can only infer them. His facts regarding the before and after fiscal situations of the Sony departments are inline with reality. His inferance that these changes from Sony being in the red to Sony pushing into the green is a sound argument, and is consitant with the data he shows.

I suppose i phrased that wrong. Your right prove is a harsh word. If you can show there is a strong correlation then good... but somehow I don't think the data will match up like you seem to think. And you can argue but not be able to prove the PS3 is the cause...

Perhaps there is a third factor that has caused an increase in these sales.

Well In general most gamers were getting their setups ready for the launch of the PS3 which lead to alot of electronic sales.. This boost in sales is what helped Sony during its troubled times of lawsuits, recalls, and diminished reputation in the electronics realm.

Game On...

FatalDomain

Or perhaps the manufacturing or retail price of these things fell... and the product show price elasticity of demand. Thus there sales and revenue increased.

You've strayed from the data. It's possible your right, but then again there could be something else that you haven't explained that's moving at the same time, which is causing this.

[QUOTE="rimnet00"][QUOTE="GundamGuy0"]

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

GundamGuy0

You can't prove statistical correlations, you can only infer them. His facts regarding the before and after fiscal situations of the Sony departments are inline with reality. His inferance that these changes from Sony being in the red to Sony pushing into the green is a sound argument, and is consitant with the data he shows.

I suppose i phrased that wrong. Your right prove is a harsh word. If you can show there is a strong correlation then good... but somehow I don't think the data will match up like you seem to think. And you can argue but not be able to prove the PS3 is the cause...

Perhaps there is a third factor that has caused an increase in these sales.

While it would be irresponsible on my part to completely rule out a third possibility, I stand firmly behind my comments. Sony was performing horribly in all divisions and by coincidence they somehow turned it all around with little to no information about the products that helped them reach their goal. The only common factor is the launch of the PS3 and its impact on the electronics market (not the gaming market).

Game On...

I strongly disagree!!

Thiswas a long read !

[QUOTE="ZIMdoom"]

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

FatalDomain

The company rose from the ashes (not literally) because of the PS3....The hype leading to launch, the investments in various devices, the advertisements of supporting products were all related to the PS3.

e.g.

Sony touts the PS3 will play games in 1080p ....lead to rise in HD TV's

Sony touts Cell is the best CPU in the world....R&D from different organizations implement Cell into their programs.

Sony claims Blu-ray is the format of the future...TVs, entertainment systems, Blu-ray movies

Sony has card readers on the PS3 for media....Mem stick duo sales up

In a nutshell people bought products related to the hype of the PS3 helping Sony get back on track. Unfortunately the only thing that isnt selling well is the PS3 its software.

Game On....

Ah. I get it now. I'm still not sure I totally agree...but I get you.

[QUOTE="FatalDomain"][QUOTE="ZIMdoom"]

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

GundamGuy0

The company rose from the ashes (not literally) because of the PS3....The hype leading to launch, the investments in various devices, the advertisements of supporting products were all related to the PS3.

e.g.

Sony touts the PS3 will play games in 1080p ....lead to rise in HD TV's

Sony touts Cell is the best CPU in the world....R&D from different organizations implement Cell into their programs.

Sony claims Blu-ray is the format of the future...TVs, entertainment systems, Blu-ray movies

Sony has card readers on the PS3 for media....Mem stick duo sales up

In a nutshell people bought products related to the hype of the PS3 helping Sony get back on track. Unfortunately the only thing that isnt selling well is the PS3 its software.

Game On....

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

I knew it just a matter of time.... :shock:

[QUOTE="GundamGuy0"][QUOTE="rimnet00"][QUOTE="GundamGuy0"]

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

FatalDomain

You can't prove statistical correlations, you can only infer them. His facts regarding the before and after fiscal situations of the Sony departments are inline with reality. His inferance that these changes from Sony being in the red to Sony pushing into the green is a sound argument, and is consitant with the data he shows.

I suppose i phrased that wrong. Your right prove is a harsh word. If you can show there is a strong correlation then good... but somehow I don't think the data will match up like you seem to think. And you can argue but not be able to prove the PS3 is the cause...

Perhaps there is a third factor that has caused an increase in these sales.

While it would be irresponsible on my part to completely rule out a third possibility, I stand firmly behind my comments. Sony was performing horribly in all divisions and by coincidence they somehow turned it all around with little to no information about the products that helped them reach their goal. The only common factor is the launch of the PS3 and its impact on the electronics market (not the gaming market).

Game On...

It is indeed a possibility. However some of the money for the other divisions, came from the sales of the Cell factories to Toshiba, (lower cell manfacturing cost). The increased sales in HDTV's (Which are probly going to more homes with out any VG's then homes with them). And a few other things... Your explanations centering around the PS3 are possible but highly unlikely to be the sole source of the increase in profits for the other divisions...and in most cases i doubt it's even a significant source.

Why? Because gamers setting up there entertament center aren't just going to buy Sony products... They would be just as disposed to by a Samsung or Panasonic TV.

The blue-ray sales I totaly agree with you on though... that's the PS3... however Sony Pictures profits are probly up because of Spider Man 3, and DVD sales as much as they are because of Blu-Ray.

[QUOTE="GundamGuy0"][QUOTE="rimnet00"][QUOTE="GundamGuy0"]

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

FatalDomain

You can't prove statistical correlations, you can only infer them. His facts regarding the before and after fiscal situations of the Sony departments are inline with reality. His inferance that these changes from Sony being in the red to Sony pushing into the green is a sound argument, and is consitant with the data he shows.

I suppose i phrased that wrong. Your right prove is a harsh word. If you can show there is a strong correlation then good... but somehow I don't think the data will match up like you seem to think. And you can argue but not be able to prove the PS3 is the cause...

Perhaps there is a third factor that has caused an increase in these sales.

While it would be irresponsible on my part to completely rule out a third possibility, I stand firmly behind my comments. Sony was performing horribly in all divisions and by coincidence they somehow turned it all around with little to no information about the products that helped them reach their goal. The only common factor is the launch of the PS3 and its impact on the electronics market (not the gaming market).

Game On...

It is indeed a possibility. However some of the money for the other divisions, came from the sales of the Cell factories to Toshiba, (lower cell manfacturing cost). The increased sales in HDTV's (Which are probly going to more homes with out any VG's then homes with them). And a few other things... Your explanations centering around the PS3 are possible but highly unlikely to be the sole source of the increase in profits for the other divisions...

Why? Because gamers setting up there entertament center aren't just going to buy Sony products... They would be just as disposed to by a Samsung or Panasonic TV.

The blue-ray sales I totaly agree with you on though... that's the PS3...

To follow up on this, I think it is very obvious the PS3 had a lot of technology simply thrown in it. This was my stance when I first heard about the architecture two years back... they were simply looking for a way to make their money after spending hordes of money on RnD for both the Cell and the Bluray technology.

In a lot of sense, it was genious. Their PS1 and PS2 sold like hot cakes, so why wouldn't the PS3 ... right? Well, unfortunatly, this kind of thinking was probably coming from a CFO rather then a CTO, and likely just overruled him when convincing the CEO what needed to be done.

I mean just look at the defense that the PS3 has, it clearly shows in it's userbase itself, since it is the same thinking Sony's man in charge had: The PS2 was complex and sold well, so why can't we get away with the complex PS3 as well?

Now, once again. You can't prove this and in a sense you can't really disprove it either. However, if you are read up on the material, it's not hard to analyze what truely happened.

To follow up on this, I think it is very obvious the PS3 had a lot of technology simply thrown in it. This was my stance when I first heard about the architecture two years back... they were simply looking for a way to make their money after spending hordes of money on RnD for both the Cell and the Bluray technology.

In a lot of sense, it was genious. Their PS1 and PS2 sold like hot cakes, so why wouldn't the PS3 ... right? Well, unfortunatly, this kind of thinking was probably coming from a CFO rather then a CTO, and likely just overruled him when convincing the CEO what needed to be done.

I mean just look at the defense that the PS3 has, it clearly shows in it's userbase itself, since it is the same thinking Sony's man in charge had: The PS2 was complex and sold well, so why can't we get away with the complex PS3 as well?

Now, once again. You can't prove this and in a sense you can't really disprove it either. However, if you are read up on the material, it's not hard to analyze what truely happened.

rimnet00

IMO I hope the issues with the PS3 will serve as a lesson not only to Sony, but the entire gaming industry. As a old skool gamer I shunned the idea of DVD movie playback being implemented into gaming consoles (PS2, Xbox). The increased storage medium was a plus but for the player itself brought on unwanted expenses and reliability issues (Movie devices are meant for movies not games!!!).. All the gaming companies have to do to increase disk capacity is do what they have always done in the past CREATE THEIR OWN PROPRIETARY MEDIA!!!

This old skool trend should return next gen if physical media is still the norm for consoles...This would allow consoles to shine as videogame systems and not a media hub for your living room. This would also eliminate the ignorance that has crept into this gen of gaming where gamers are fighting over which format is better for gaming while ignoring the games themselves.

All of the console makers this gen have put their foot in their mouths at one time or another. Regardless of popularity, or profit, this gen is horrible in terms of gamer enjoyment because of the various issues brewing within MS, Sony and Nintendo to do more "other" things besides gaming....I miss the healthy rivalry between Ninty and Sega...no BS, just great games!!!

Game On...

I'm sure the PS3 helped sell some Blu-ray discs and HD TV's but I doubt that the whopping 5 million owners all went out and bought Sony equipment and thus saved Sony from doom.GIJames248

Its not just gamers that brought Sony out of the red, other business interests and organizations that were getting ready for Sony to sweep the world with the PS3 heavily invested in Sony's initiative. The PS3 was the catalyst for others to take notice of Cell and Blu-ray and other Sony properrties. In turn the PS3 itself didnt make Sony this time, it was the potential of the PS3 possibly performing like the PS2 which made companies want in on the ground floor and supported Sony products.

Game On...

[QUOTE="GundamGuy0"][QUOTE="FatalDomain"][QUOTE="ZIMdoom"]

Uhmmm...If you have been following the industry, and the companies that make up the industry, you would know that Sony has already rejuvinated. They have gone from a company that relies exclusively on the PS brand to stay afloat, to a company that only the gaming division loses money on. Sony has improved their business and is back making a profit for the first time in a long time.

So it is difficult to see how the PS3 is supposed to rejuvinate a company that is already coming back. And since the PS3 is losing money like crazy, it only further disproves your theory.

Magical_Zebra

The company rose from the ashes (not literally) because of the PS3....The hype leading to launch, the investments in various devices, the advertisements of supporting products were all related to the PS3.

e.g.

Sony touts the PS3 will play games in 1080p ....lead to rise in HD TV's

Sony touts Cell is the best CPU in the world....R&D from different organizations implement Cell into their programs.

Sony claims Blu-ray is the format of the future...TVs, entertainment systems, Blu-ray movies

Sony has card readers on the PS3 for media....Mem stick duo sales up

In a nutshell people bought products related to the hype of the PS3 helping Sony get back on track. Unfortunately the only thing that isnt selling well is the PS3 its software.

Game On....

If you have data to prove these corralations... and that's all they are corralations... not causations... then please share, otherwise i'll just have to give you an F. You tried but you can't back up anything you said with hard data... unless you can... which by all means share.

I knew it just a matter of time.... :shock:

:?

Oh well, you cant please everyone....

Game On...