Sony is taking a hard hit in the current poor economy. The firm announced a massive loss last quarter and sales for many of its divisions are at historic lows. Sony is also under lots of pressure for it gaming division to perform.
In June, Activision CEO Robert Kotick put pressure on Sony CEO Howard Stringer to cut the price of the PS3 console. Kotick said at the time that Activision might have to reconsider developing games for the PS3 is price cuts weren't made. Sony issued a retaliatory press statement reading, "We enjoy healthy business relationships with and greatly value our publishing partners and are working closely with them to deliver the best entertainment experience."
Both Stringer and Kotick are at the Allen & Co conference in Idaho this week. Reuters reports that when Stringer was asked directly about Kotick's statements Stringer said, "He [Kotick] likes to make a lot of noise. He's putting pressure on me and I'm putting pressure on him. That's the nature of business."
Stinger was also asked about the logic of not cutting prices on the PS3 console. Stringer replied, "I [would] lose money on every PlayStation I make [if prices were cut made] -- how's that for logic."
Stringer also said that Sony was not looking to shed any of its assets despite recent losses and a continued poor economy. Stringer says that Sony is trying to closely integrate hardware and software and selling off assets in either camp didn’t make sense.
Stinger said, "We're learning to fuse content and hardware. This wouldn't be a time to get rid of either."
Stinger said at the conference that he sees a bottom in China to the economic crisis and that most of Asia is looking good. However, he points out that it is too early to call a bottom to the recession overall. He said, "I see green shoots but it's a very light shade of green."
quote: Being in third place really is not so important, as the volume of consoles sold. With 22 million consoles sold, regardless of market position, and well over 100,000 new consoles sold every month, there is a huge and growing installed base. It's not as big as the others, but it's still really big and getting bigger.
quote: Average Joe walks into a store, and sees a 360 for $199 and a PS3 for $399. Joe walks out with a 360 and a few games. End of story.
quote: Your supporting facts are rather vague. You say it costs more to produce, let's see some numbers shall we? Being a developer myself, I don't see any logical reason as to why a PS3 game would take twice as much capital to produce than an Xbox 360 game. Graphics are graphics no matter which way you look at them, only difference I see (yes with my own eyes) is the 360 requires graphics compression on some games because they have to fit it on the dinky little dvd. On the back end coding, I'm sure the PS3 uses a completely different instruction set.... so you know how to solve that problem??? Dedicate a PS3 development team of people who know how to use it. The actual code logic between the two systems remains relatively the same (or else you'd have two games behaving differently...). With the PS3 offering the most features and sitting right behind a system that had a significant jump start, I would hardly consider it a burden on the industry.
quote: "I [would] lose money on every PlayStation I make [if prices were cut made]
quote: Stinger was also asked about the logic of not cutting prices on the PS3 console. Stringer replied, "I [would] lose money on every PlayStation I make [if prices were cut made] -- how's that for logic."