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Sony chief warns about PS3 price & expects 10-year life cycle

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Sony chief warns about PS3 price & expects 10-year life cycle
Posted by Seán Byrne
Posted on 26/07/05 00:22
Number of views 1025
Sony chief warns about PS3 price & expects 10-year life cycle

In a recent meeting in Japan about Sony's Playstation, Sony's president Kutaragi discussed further details on the Playstation 3.  Like Sony mentioned before, Kutaragi confirmed that the Playstation 3 will be expensive, but consumers will still be able to afford it if they want it.  According to Kutaragi, the main purpose in choosing the expensive Blu-ray technology as well as offering HDTV support is to aim for a 10 year life cycle.  This means that consumers will not have to upgrade to a high definition or higher capacity model throughout the Playstation's 3 life cycle.

So far Kutaragi is not going to reveal the actual price for the Playstation 3, however he mentioned that Sony is aiming for a worldwide market and will try their best in keeping the pricing within a certain level. 

According to Sony, both Playstation 1 and 2 sales are doing very well.  Since July 20th Sony had over 91.6 million PS2 sales and 863 million software sales worldwide.  Playstation 1 software game titles still continue to do extremely well with 959 million software sales worldwide.  This gives a total of 1.822 billion software sales between the PS1 and PS2.  Currently Sony has a game library of over 7,700 PS1 game titles and 5,200 PS2 game titles available.

Last week at Sony Computer Entertainment's PlayStation Meeting in Japan, company president Ken Kutaragi appeared on stage to discuss further information on the current status of the PlayStation 3.

Kutaragi started out by reconfirming that the PS3 will be backwards-compatible with PlayStation and PlayStation 2 games and support high-definition TVs. "We're looking at a life cycle of 10 years with the PlayStation 3. We're currently shifting from standard TVs to HD TVs," said Kutaragi. "But in the next couple of years, most flat-panel TVs will be full HD. We're releasing the PS3 with full HD features from the start so that consumers won't have to buy another version of the console in the future. For the same reason, we're using Blu-ray as the PS3's disc format."

"I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households. I think everyone can still buy it if they wanted to," said Kutaragi to a mostly Japanese crowd. "But we're aiming for consumers throughout the world. So we're going to have to do our best (in containing the price)."

Then Kutaragi issued a somewhat ominous warning. "I'm not going to reveal its price today. I'm going to only say that it'll be expensive," he stated.

Although the Playstation 2 has been out for several years now, it is interesting to see that its games sales are only just starting to catch up with Playstation 1 sales.  Then again, it goes to show that not everyone is after the fastest consoles out there, but instead games they enjoy playing.  The other advantage is that when consumers buy games for their PS1 or PS2, as long as they buy a matching game, they know it is designed to play in their console and that their console will last for many years, unlike with PCs where I often here about novice PC users confused over why their games will not work properly in their new PC.

While a 10-year life cycle may seem long for the Playstation 3, the Playstation 1 has already been selling for about 10 years and is still going strong.  This means that if one forks out for the Playstation 3, it is not like their equipment is going to be obsolete in a few years like with expensive PC graphics cards and CPUs.  For example, try getting some modern games that play well on a typical PC from 1995. :p 

Source: c|net News - Games





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don't be too excited about what $ony has to say 'cuz $ony is infamous for creating hypes

remember when $ony introduced ps2 with emotion engine? they claimed that it was built on the most advanced semi fabric technology at that time 90nm; however it was more or less like 180nm that pentium 3 was built-upon

bd ray might no be as sucessful as some might think it would be in near future; dvd will be still strong for serveral years from now; even xbox360's main format is dvd

At this point in time, the PS3 will be the console to get, regardless of the hype. I doubt the xbox360 will do as well as the xbox did. The Nintendo system will do very well though also.
Why will the PS3 be the console to get? All we have seen so far is images that have never been confirmed as in-game. Sure, it has a blu-ray player but this will make it expensive meaning less people will buy it, less games will be sold for it and developers may lose interest due to a lack of sales.
Why will the Nintendo machine do very well? It will be barely more powerful than the Gamecube. The only thing they will do right this time is bring out games on normal dvd's. It took them a while to learn we didn't want cartridges and small capacity optical discs.
The Xbox360 is the better choice at this point in time. We have seen loads of in game images all looking great (plus that was running on Alpha kits). It will debut at a decent price point in December with between 25-40 games.
What more do i need to say?
I won't pay for anything Microsoft makes, so I hope the Sony and Nintendo machines are good cause they will be my only option.

Unless someone does a sweet crack of the xbox 360 then I'll buy 10 and a 1000 blank DVDs and give them out as gifts.

Microsoft=evil.
Revolution and Xbox360 for me. I am not stupid enough to fall for Sony's line of BS. :r

Nintendo and Microsoft know how to do things the right way. :)
For the most part, it doesn't matter if BluRay is a total flop. Sony is using it because they are betting on their own technology and because they make the discs.

Look at the Dreamcast, they used the GD-ROM format, which was a total failure as far as becoming "the next CD". Did that change the Dreamcast??? NO. Even if Sony is the only producer of BluRay discs PS3 games will use the format for it's lifetime. The only difference of BluRay becoming the norm is that discs will become cheaper because companies will compete against Sony to make cheaper discs.

But is Sony implying the PS3 will have a 10yr life cycle? Fat chance, 10yr cycles died with Atari and NES. Ever since other companies got into the market, we've seen 5yr cycles and people feared less (heck the Xbox was only a 4yr cycle). Nintendo was kind enough to promise consumers 5yr cycles (or more) but it seems Microsoft screwed that up and Nintendo was forced to compete. Hopefully this is a one time thing as Microsoft did need to kick up the Xbox a notch and considering how powerfull it is, it should last 5 yrs.

Although there's no questioning the fact that MS is trying to win consumers over with hardware because the software alone hasn't been selling the system.
[edited by Rhelic on 26.07.2005 15:07]
QUOTE from sorti
"I won't pay for anything Microsoft makes. Microsoft=evil."

So in other words you hate the company that made PCs so popular that the market went from $1,000 for a cheap PC to $300. You hate the company that directly caused the Internet to become as popular as the TV.

And considering that over 50% of the news articles here relate to Windows only software (for burning), I'm guessing you're using Windows right now and saying how evil MS is.

Get over it, you need prozac. I think I smell a hypocrit.
[edited by Rhelic on 26.07.2005 15:12]
@ squinty

Bold statements, and yet you offer no arguments whatsoever

Impressive
:B
[edited by Muertez on 26.07.2005 16:59]
Microsoft has had nothing to do with dropping hardware prices. Also, had very little to do with making the PC popular (or easy to use). I think it was their competitors. Competitors were there years before the 'PC' even knew what multimedia was. They failed for various reasons, some of which (not all of which) involved his company's anticompetitive practices.

In fact, Microsoft have kept their software exhorbitantly high in relation to dropping hardware prices. This happens as time goes on and with enough competition and rapidly advancing tech, something Bill Gates knows little about because he's not allowed anyone to compete with his company, as his company's criminal record proves. These days it seems FREE software (often open source) is the only thing giving his company some cause for concern.

Nostalgia mode:
I was using my (low-priced) Amiga years ago in wonderful stereo and true plug-n-play while the PC was chirping from its internal speaker with horrid colours and configuration nightmares.

In more recent times, superior software alternatives like BeOS and others had no chance of even gaining a foothold in the OS market because of his practices and the widespread market share of Windows (again, a court case & payout serves as a reminder of that bit of history). Botching Microsoft-owned sites visited by Opera for years (again, a payout made to Opera for this) and others. Fearing superior alternatives and refusing to compete fairly sounds about par for the course for this company. Rather than using its billions to build a better browser, they resort to stunts like this. Shameful.

I'm sure there are many other companies we can pick on while in this spirit, but I think it puts some things in perspective, at least.

Internet talk:
The internet existed and was built on open standards (tcp/ip, smtp, http, etc) many years before Bill dreamed up his internet vision (IE, mail, Office all 'internetized'), or even decided that the internet was important to his company. It was happening without him whether he liked it or not.

Company & Competition talk:
All companies suck on some level, but I think it's inaccurate to put all this 'goodness' Bill's way. Prices drop with competition, and everyone benefits tremendously from open standards (except corporations with short-term goals of having u pay for dearly for the privilege of using their technology). I think we all know who that might be in this case.

The price of Windows might be a hint.
Windows is priced no higher than MacOS, and handles a larger variety of hardware too. How long until a free OS is sued because its being anticompetitive? After all, MS was sued when it was giving IE away for free.

MS hasn't always been on top. They had to do something right to get there, and you can only be a monopoly AFTER you've made it to the top.

Perhaps you should blame Apple for being stupid and blowing their position as the top PC.
I said I won't PAY for anything from Microsoft.

Over the years...

I watched as Microsoft killed Novell by making Windows work better with NT server then Netware, and breaking the Netware clients with windows changes and updates. (and the fact Netware had copy protection where NT did not, like Microsoft was dumping software or something)

In many corporations Exchange replaced Lotus Notes because of the Outlook client, but Notes is a better mail + database server then Exchange but the client is not as good as Outlook.

Netscape had a better web server and web browser for a long time but still ended up getting screwed because it's hard to overcome the default status of IE and IIS on Windows.

How’s about Excel vs. Lotus 123, it was years before Excel was any good...Microsoft tweaks DOS till Lotus 123 has problems "DOS isn't done till Lotus won't run"

Microsoft has too much power, and there is no way anyone can compete with them now, I hope the EU sticks it to Microsoft.
Who said that Sony would make games on Blue Ray disc when it first comes out. They can do that if they want, but think about it, when PS2 first came out. Most games were made from CDs and later on as DVDs became popular, most are in that format. Sony would impliment the Blu-ray on its PS3, but probably make the games on DVDs first until they can reduce the cost of Blu-ray disc and then it will be in that format.
This forum is about the vitality of PS3 against the nextgen consoles, Xbox 360 & N5. The American public has always gone with two things Quality and price.

I think at this moment PS3 is at a disadvantage especially if its graphics aren't far superior to Xbox 360. Basically what I got out of this add was PS3 is going to cost much more than anticipated & the anticipated price was $600USD at launch, but now I think you could expect $800-1200USD. Xbox 360s price is set at $299USD :g at launch this September giving it two advantages (lower Price) & (Time). (Lower Price) often determines what console most people are going to buy, need less to say if Xbox 360 graphics are on-par with PS3 or even close most people will spend $299 for a Xbox 360 then $800-$1200 for the same graphics on a PS3. (Time) is another advantage, having a years lead to establish a game arsenal, a marketing invasion, & a larger base due, to people who can't wait another year for something that will have the same graphics and cost more than double.

I won't even comment on Nintendo's N5 due to the fact there CEO Quotes ' We are not in the same business as Sony and Microsoft." I smell a odd strategy of denial….hmmm maybe if you convince yourself that your not in the same business, that might make losing market share easier because after all there not in the same business. I wonder what business Nintendo is in? It can't be video games or is it, O!!! now I'm so confused…… maybe there just a :d triad front, that launders Yen. :S

I think the reason Sony has raised the expected price of the PS3 is so that they don't take a loss like Microsoft has on every consol sold. Sony probably has a better business model for making money on there next console opposed to losing it, but they really should have asked them selves one important question …… isn't having a better graphics processor more important then having a 8 Core CPU, especially when four would have probably cut costs and preformed the same job?

[edited by Zeroi786 on 27.07.2005 11:15]
[edited by Zeroi786 on 27.07.2005 11:17]
I made the hypocrit comment because I assumed you were using MS products but "refuse to pay for them".

I won't comment on specific solutions because I could spend hours on the subject, but let me throw some one-sided examples...

Groupwise is a horrible email/groupware application, I know, I'm using it now, and not by choice. Outlook 2003 destroys it, there's no argument here.

While Active Directory isn't as fast (because it's not SQL based, yet), it works 10x better than Novel's login system when you're using windows.

MS does not intenionally break 3rd party apps, in fact they go a very long testing phase with all kinds of 3rd party solutions (Novel, Unix'es, AS/400, virus scanners, firewalls, etc). The most likely reason 3rd party solution stop working is because they were using an undocumented method or a method that is unrecomended (MS will mention in MSDN when something is un-recomended). Thete items are often on the cutting board for security fixes or improvements. Obviously if MS intenionally changes something to prevent a 3rd party app from working there would be a lawsuit. And as we all know, there hasn't been a flood of suits relating to this matter, they always relate to political matters, or many times, pure bs.

Netscape's browser was horrible, I know, I was a hardcore user until later in IE5's life. Netscape 4.x would crash on certain javascript bugs, heck, even legit Javascript code would cause Netscape to crash. I left Netscape because I got sicked of random crashes. IE6 isn't perfect, but instead of 5+ crashes a day (no exaggeration), I see maybe 1-5 crashes per week.
Yea, it should be pointed out that the PS3 still supports CD and DVD.

Don't expect to see BluRay discs for awhile, aside from Final Fantasy or any other game that would need 2 or more DVD discs.
I thought that BluRay isnt compatibole with Cd and DvD and that is why HD-DvD might have a chance cause it is backwards compatibole and BluRay isnt.
"MS does not intenionally break 3rd party apps..."

Their history is FULL of 'breaking third party apps'. The problem for competitors is Microsoft can afford to take on anyone that challenges them and come out unscathed. Case in point: paying Opera 12 million to be quiet about "unintentionally" breaking MSN sites by intentionally sending garbage to the Opera browser (May, 2004). Google it by all means. Google their lawsuit history and see how many they've crushed by 'unintentionally' breaking compatibility and has been proved in court, from the early days on.

Sure, every year they buy out innovative companies that make BETTER software for the short-term (GIANT Antispyware, to name but one recent acquisition). But what's allowed them to do that is some good business decisions early on (credit where it's due), and lots of shady practices thrown in for good measure.

By no means the only company to pick on, by the way. But please, let's be realistic here.

Anyone who competes with them, or tries to, is toast. And 12 million is chump change to allow them to keep doing what they are doing to a multi-billion dollar organisation (in the case of the recent Opera example).

They want an IE-only web with Windows at the centre and IE-only technologies dictating the future of the web. Standards are not high on their list. Playing dirty to take control of the web is. Standards doesn't add 'value' to the company.

Just ONE little example of many areas they want to take control in, unfairly, I might add. Now of course they use their huge sums of cash to create new markets (xbox, etc) and do whatever the hell they want. Which may or may not be superior to what's out there but let's not ignore their little 'games'.
I wonder how many PS3s Id have to buy for 10years?! They better get all qwality flaws like in the PS2 fixed for that price! .. like the Laser, well .. actually the whole drive.. :r
Sony will use one of the first really mass-produced Blue-Ray-Roms in the PS3 I guess (...)
You must be from an alternate earth where Microsoft has a different history then this earth.

It is people like you that explain the success of Microsoft today you don’t know or remember the dirty tricks Microsoft has used over the years to get where they are or you were not born yet or involved with computers around 1984 into the 90s so it all happen without your notice.

“While Active Directory isn't as fast (because it's not SQL based, yet), it works 10x better than Novel's login system when you're using windows.” Do you sell used cars or something? The reason the Netware login is lacking on windows is because Microsoft has a long history of screwing with the client services for Netware as to make their own Active Directory look better in comparison this battle is over Netware lost.

Microsoft is a monopoly that get sued all the time they lose often, I don’t have the numbers in front of me but if I remember correctly Microsoft has paid out many Billions of dollars in settlements so far.

$1.1B to California, $1.6B to Sun, $775 Million to IBM, 750 Million to AOL/TW, 1B to a Baltimore court for consolidated private consumer lawsuits. All the settled lawsuits so far started in the Netscape era, and Microsoft is more anti competitive today then at any time in their history.

And the only reason I bring this up again in this thread is Sony and Nintendo don’t impact my life in any way they are not the only CE Company but If Microsoft kills them off (wins the battle) they will see to it no one else will ever challenge them in yet another market.
[edited by sorti on 28.07.2005 12:26]
10 year life cycle wow lets just say this is true, that ten years from 2006, 2016 PS3 will still be supported as Sony's main console. In the last ten years we have gone from 8Mhz-4Ghz, Sony is saying that when there console is a Relic and Microsoft releases there 3rd Xbox possibly in 2009-2010 they aren't going to update there main console. I don't know how much socky Sony's VIP's had to provide at this announcement so that anyone would believe this bullshit. They are talking so much shit I don't understand why they just don't take all the bed pans from one of Tokyo's major Hospitals and put shit in there mouth then start spitting it at all the Industry watchers and reporters. At this pace Microsoft won't need to hype there console, Sony's over hyped fear has already convinced me that they are afraid and aware that there glory days like Mike Tyson are over and now all they can do is talk shit before the fight, get lots of people buying there expensive paperview console only to get knocked out in the first round. If I wanted to be lied to I would watch Bush address the nation, at least he's somewhat entertaining with his speech impediment. :S
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