Sony denies Merrill Lynch report- no delay for PlayStation 3

Latest News Headlines
#1

I just posted the article Sony denies Merrill Lynch report- no delay for PlayStation 3.

 Well, that  didn't take long! Sony says that Merrill Lynch is full of bull! We just read  yesterday a report from the analyst firm that said Sony would have to delay the  gaming platform, but...

Read the full article here:  [http://www.cdfreaks.com/news/11520-Sony-denies-Merrill-Lynch-report--no-delay-for-PlayStation-3.html](http://www.cdfreaks.com/news/11520-Sony-denies-Merrill-Lynch-report--no-delay-for-PlayStation-3.html)

Feel free to add your comments below. 

Please note that the reactions from the complete site will be synched below.
#2

You have got to be fooking kidding me. AACS actually used the word “share” in their motto??? Bwhahahahaha!!! A more suitable motto would be: AACS, “You share, you die” :d

#3

Sony didn’t deny that the PS3 would cost $900 though… :o

#4

It’s about time for Sony to pay for all it bulls***. :d I really hope that the launch of the PS3 will be a real fiasco. I mean in the first days all the units will be sold (there are a lot of tech fans that will be pay also 1000$ just to say that they have a PS3). But later the sells will go down and the Xbox 360 will be more sold worldwide.
[edited by Shadowman69 on 20.02.2006 14:17]

#5

I do not really understand why shareholders for Sony keep that Management Board full of idiots there. On every management training they teach you how well Japanese companies think strategically and they know where they will be in 300 years (if they made there). Sony apparently does not know that. Corporation is shitty organized, Departments do not cooperate, no common strategy '“ and they just bleeding money (shareholders money '“ because management still is being paid). And it is so easy '“ I just now can throw in couple of ideas '“ PSP '“ just make two versions '“ one as it is and one (PSP-O) open which allows to run Homebrew; then monitor homebrew movement, even organize it and help it and harvest it. Charge very healthy margin on PSP-O. And you need to remember that Playstation One was such a hot cookie because it could be moded. And kids love to have zillion of games they do not play but the one they like they push parents for originals so make sure that you have bonus strategy for buying original game. So do not think in terms money lost (fired up by lawyers) but how much you’ve made and if this justifies further investments (that economist point of view). UMD disk '“ I just can not forgive Sony for wasting Minidisc as MP3 carrier that would keep this beautiful device alive even now and then additional total screw on 1 Gb Minidisc. Now UMD closed, unusable ‘“ it has perfect size for pictures, for music and for movies. If it was cheap enough you can even have it as permanent storage. There are minidisk players’ designs '“ revitalize them and make UMD player instead. Keep the disc technology proprietary though. So do not think in terms money lost (fired up by lawyers) but how much you’ve made and if this justifies further investments (that economist point of view). BlueRay '“ people do not want HD. Upscaling is OK. Remember SuperAudio CD and DVD-A '“ people want music on the go nowadays; no one sits in armchair anymore enjoying Floyd, Genesis or Marillion despite the quality you can get. And MP3 is OK. In exchange people want storage '“ they want less space taken with the content they already have ‘“ let them then place whatever they want on BD. Make sure only that the player plays all formats which are existing so far and plays it out from BD (’“ this is what Microsoft is heading for accommodate all formats but make one ours). Reach critical mass of BD players, recorders and plastic in the world. Then start releasing content at reasonable price. Do not punish people for copying that or that. Make better sales strategy for people buying originals. So do not think in terms money lost (fired up by lawyers) but how much you’ve made and if this justifies further investments (that economist point of view). ….until then though you people better sell the stock. Marek

#6

Exactly… and while they state they will release it in Spring 2006 for Japan, they state that the US market won’t see it until possibly 2007. The Japanese market isn’t that critical, if they win it - they need to win the US market to fully succeed. Sony is probably scrambling right now. The PS3 will kill them as it stands right now. Unless they can significantly reduce the BOM costs, the PS3 may be the iceberg that sinks Sony’s ship.

#7

Yes, the comment on HD formats is bang on. When people realize they need to upgrade their TVs (even from CURRENT HDTV monitors) just to see any benefit from BD or HD DVD, they’ll be howling. Of course, it’s not about the format for the industry - they are pushing it to slip in oppressive DRM measures. How much they can drive this remains to be seen… they will be working against the tremendous momentum DVD has. In the end, I think BD and HD are coming far too soon, and rushed, at that… if they had wanted to get this working, they should have got it done BEFORE HDTV montors made it into the public without the HDCP circuitry, but that cat’s out of the bag. Now there are competing formats, and technical problems because of the late start… The expense is another factor - but this is merely greed on the part of chip suppliers on up the line. While PS3 alone may not be enough to kill Sony, the requirement to stuff BD drives into the unit may be. Microsoft was smart in avoiding this whole thing altogether and leaving HD DVD out of their system. While Microsoft sought to reduce the costs on their unit by cutting key corners, Sony is going the bells-and-whistles route to push BD; and that is the fatal mistake, if the $900 BOM is on target. I can see them taking a $100-200 loss on pushing the BD format, and maybe a $100 loss on PS3 software margin (assuming a particular per-unit sales to compensate for the loss), but that still means the unit will be over $600 by the time it gets to the consumer, and Sony takes a huge bath on each unit… the bigger the sales, the bigger the losses - on what basically amounts to a very shady “rebate” as users buy software.

#8

Pressed HD DVD costs will be similar to pressed DVD for the reason we already know? A easy way to beat BD? Simple, just sell the next DVD in two boxes: Normal, only DVD. Special: DVD + DVD with extras + HD DVD Hi Def movie for just a few bucks more. Maybe if you don’t want to sell 2 different disc that can be sold separately just make a Hybrid HD DVD DVD Video. A lot of people will buy the Special edition preparing theirself for the new playes and tv sets. If you really loves one film why not spending a few more $$$ to have it also in Hi Def…? Soon or later you will be able to watch it in Hi Def. Why you should by it another time? Think it this way. You want to buy the latest album of your preferred singer. You have to choose between a CD at 15$ and a SACD (with also standard CD tacks) at 18$-20$. Which one will you buy? :wink:
[edited by Shadowman69 on 20.02.2006 17:05]

#9

I’ll probably buy neither;)

#10

Personally, if you look at it, the PS3, despite what Sony says, will probably come out in 2007. There is no way they can get it out in Sring 06, even for Japan. The Blue Ray Disc has some major problems as it stands right now. The error rate is very high when producing Blue-Ray Discs right now, since the laser is closer to the disc. So if you think about it, even if a manufacturing plant produces 1000 discs, only so many are good. Obviously, Sony is going to take a major loss on the PS3 to compete with X360. People say that companies make up the profits on the games, which I no doubt object to. But if you look at Sony’s case, they may actually lose money on the games as well. Think about it, Blue-Ray discs are way more expensive to make than DVD discs, and you know darn well that they aren’t going to sell games for a higher price than 360 games. But overall, I see Sony spending whatever they can to win market share, if PS3 costs them $900 to make, they will sell for $400 to possibly $500, just to compete with MS. They won’t care they are losing a shit load of money, as long as they are able to win, they won’t care how much money they spend.

#11

Looking forward to Sony falling flat on thier corporate face.

#12

I see Sony spending whatever they can to win market share, if PS3 costs them $900 to make, they will sell for $400 to possibly $500, just to compete with MS. They won’t care they are losing a shit load of money, as long as they are able to win, they won’t care how much money they spend. ---------- Think about that statement… if they plan on selling 10 million units at a $500 loss apiece, that’s 5 BILLION DOLLARS. Even Sony cannot afford that sort of loss. Unless the rest of the big movie companies decide to subsidize the PS3, which is horribly unlikely, Sony cannpt handle taking that much of a loss. Worse, at the cost of BD discs, they may have to subsidize disc purchases, as well… meaning they’ll keep takingit up the rear on their movie sales. PS and PS2 were easy money machines - the Playstation could undercut the N64 because of its expensive cartridge format and still make a huge profit; this gave Sony a huge warchest, and the follow on, the PS2, being PS compatible swung in on its coattails. PS3 may have the compatibility (or may not?), but again, without all new equipment, the upgrade is less than pointless for most people, EVEN AT A LOWER PRICEPOINT. It just doesn’t make any sense.

#13

this is so funny, if anyone thinks these numbers are accurate they must be smoking the good stuff.

#14

Console Facts 101: The PS3 might cost Sony $900, but game companies NEVER pass that cost to the consumer. Expect the PS3 to be $299 and/or $399
[edited by Rhelic on 21.02.2006 17:30]