Sony puts its faith in PSP deals

[wraggster]

via ft.com

Sony Computer Entertainment is poised to announce deals with software companies and internet service providers to try to reverse the dismal performance of its PlayStation Portable handheld games machines.

SCE is expected to reveal a package of PSP online services in mid-March, with analysts expecting the tie-ups to involve at least one big ISP, such as Yahoo.

The move is part of efforts by Sony to shore up its games division, which is suffering worse-than-expected losses from its PlayStation 3 console.

Nobuyuki Oneda, Sony’s chief financial officer, told the Financial Times that restoring the games division to break-even was crucial to achieving the promise of Sir Howard Stringer, chairman, of group margins of 5 per cent by the end of this financial year.

Analysts expect the PSP business tie-ups to promote the PSP as a more user-friendly device capable of downloading films, television shows and back-catalogue PlayStation and PlayStation 2 games. The changes could allow users to download games and other content anywhere the PSP can be connected to a WiFi network. Although the PSP is already technically capable of downloading and storing online content, such as games, the services have not appealed to mainstream users. A tie-up with a well-known internet brand or television company, said one Nomura analyst, could change that.

Mr Oneda acknowledged that the PSP’s recent performance had been a cause for concern, with software sales a particular disappointment. “It was pretty much a competition issue with the Nintendo so we have to fight back by introducing more attractive applications [for the PSP] by using the network,” he said.

Mr Oneda’s comments come as PSP shipments have fallen far behind those of the Nintendo DS, which was launched in December 2004, the same month as the PSP, and has achieved strong growth among non-traditional gamers. To date, the PSP has shipped 24m units globally, against worldwide DS sales of 35m.

Sony’s new plan is part of its changing approach to consumer electronics. Mr Oneda said that, in future, the company would offer “no single product to lead consumer electronics” but instead would concentrate on developing networked devices and creating networks in the home. “The trend is towards high definition and internet connectivity. Those are what we will shoot for in the future.”

Mr Oneda explained the importance of pulling the games division back into the black. If it could break even and the film and finance businesses retained their present margins, the improving conditions of the electronics business and its 70 per cent contribution to group-wide margin levels would be enough to meet the March 2008 target of 5 per cent margins, he said.

“I have some confidence we can achieve this,” he said.

[Shane R. Monroe]

I cross posted this from my forum ...

SCE is expected to reveal a package of PSP online services in mid-March, with analysts expecting the tie-ups to involve at least one big ISP, such as Yahoo.

The move is part of efforts by Sony to shore up its games division, which is suffering worse-than-expected losses from its PlayStation 3 console.

Hind sight is 20/20 ... You wouldn't have to be "fixing" things if you had done them right the first time around. With the PSP, you were catering to the wrong crowd. With the PS3, you outpriced it to the masses. And how does one fix this? Read on ...

Although the PSP is already technically capable of downloading and storing online content, such as games, the services have not appealed to mainstream users. A tie-up with a well-known internet brand or television company, said one Nomura analyst, could change that.

We've learned NOTHING have we?

Mr Oneda acknowledged that the PSP’s recent performance had been a cause for concern, with software sales a particular disappointment. “It was pretty much a competition issue with the Nintendo so we have to fight back by introducing more attractive applications [for the PSP] by using the network,” he said.

I have an idea ... Drop the UMD drive. Make the unit use SD cards. Drop the price in half. Get some talented indie developers to actually make some GREAT games that the MASSES (you know, the ones that are buying DSes by the truckload) will enjoy.

Once again - you're trying to compete in a playing field where you brought a soccer ball instead of a football. I just don't understand why they can't figure this out.

Sony’s new plan is part of its changing approach to consumer electronics. Mr Oneda said that, in future, the company would offer “no single product to lead consumer electronics” but instead would concentrate on developing networked devices and creating networks in the home. “The trend is towards high definition and internet connectivity. Those are what we will shoot for in the future.”

THAT'S RIGHT! That's why the Wii is selling like mad and really has neither of those! BRILLIANT! Boy, Mr. Oneda ... you really have your finger on the PULSE of the masses ... I just can't get over how friggin' funny this article really is.

Mr Oneda explained the importance of pulling the games division back into the black. If it could break even and the film and finance businesses retained their present margins, the improving conditions of the electronics business and its 70 per cent contribution to group-wide margin levels would be enough to meet the March 2008 target of 5 per cent margins, he said.

I have a better way to improve your profits. Buy Nintendo stock.

BAHAHHAHAHAHAHAHA! Man, how would y ou like to be told, as a Sony shareholder, that you MIGHT be able to see five percent in over a year?

Shudder ...

[tyranos]

well they should start thinking about making that keyboard, i want it so bad especially it s if supported by the firmware and psp browser

[rdetagle]

why do nintendo fanboys bother posting on here? The sony vs. nintendo debate has been argued to death, with neither side really winning.

Sure, sony could drop the UMD, make a cheap system with cheap kiddie games, poor graphics, and sell out to the "masses", but Sony loves to innovate and caters more to refined hardcore gamers than those just looking for a cheap thrill.

To use an automobile analogy, Nintendo is like Jeep (cheap, easily available, fun to drive), who of course massively outsells Sony, like Mercedes-Benz (expensive, hard to maintain, more refined). Both have their own advantages and disadvantages. But if you could afford it, which would you rather own?

I own a PSP and a DS, and I must say that my DS basically collects dust, just because i'm not really a game fanatic. I use my PSP almost daily, and not even for PSP games. I use it to browse the web, listen to MP3s, homebrew games and apps, streaming audio and video from my PC, play backups of PS1 games, photos, videos and ebooks. Out of the box, all the DS did was play games.

Sony is finally hitting on the head in this article in saying they havent really tapped the PSP marketing potential, since its really a lot more capable than the DS. People just don't really know it, and thats the problem - Sony's marketing sucks, as usual.

[comicgeek]

[QUOTE=I have a better way to improve your profits. Buy Nintendo stock.[/QUOTE]

That's by far the best idea Sony can get.

You know I think Sony has this big ego. Ever since the beginning they don't use a third party product, they want to create their own standards. Like the case with the Beta Max, Blu-Ray, UMD, Memory Sticks. There are already alot of good cheap flash memories available but they wanted to get more money I guess. The bad thing is they price their products too high claiming that theirs is the best (some are actually are) or innovative and that to use one of their products you need to buy some more of their products and so on and so forth.

The truth is that people don't want to pay more money for a product which does the same thing as with a cheaper one. Practicality.

Sony loose your ego and your money hungry schemes and find ways to lessen the price of your products. That's the only way to be successful against any competitor.

[pt9087]

LoL nice quote dude... you forgot the ] hehe

lol

[Zion]

How about forgetting all that and just making some good games for it :rofl:

lets face it most of the psp games suck

[Narcotize]

Analysts expect the PSP business tie-ups to promote the PSP as a more user-friendly device capable of downloading films, television shows and back-catalogue PlayStation and PlayStation 2 games.

!!!!!

[paladinja]

When they talk about psp game sales being so low, I have to wonder how much of that is caused by heads running illegal ISOs instead of buying PSP games. Anyone doing that is DIRECTLY responsible for every single yen that does NOT go into game development because companies budget how much time & talent they put into their games based COMPLETELY on how much current sales projections tell them they will make!!! Thats just strightup truth kidz, so don't bitch @ me if you disagree. Now I'm far more sinner than saint... hell I might be the patron saint of the sinners. I'm emulating everything from 'Megamania' to 'Mark of the wolf', and I'll give my first born to whatever team of geniuses gets a CPS3 emulator running (WTF?)! However that doesn't stop me from supporting the cause when decent PSP games hit the shelves! You think I pre-ordered "Hostage Ops" to get that queereye silver case? PONY UP PUNKS! So my 2gig is stuffed with every amazing emulator out there and I am ROCKIN all of my lifetime favs on the go, GOD BLESS ME FOR IT, and bless the coders TWO TIMES! I've chipped in to the count of over 20 UMD games and ZERO ISOs, why? For ONE reason: TO KEEP THIS DREAM AH DREAMIN, DREAMERS! To keep this dream ah dreamin'... Respect the truth & pitch in.