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Tretton: Selling PS3s is like 'being out in a storm' photo

Sony's Jack Tretton has been talking about just how tough it is to sell an expensive piece of equipment at a time where many people have lost their jobs and are too scared to spend exorbitant amounts of money on a game device. Likening the experience to weathering a storm, Tretton's crossing his fingers and hoping 2008 isn't as bad as 2009.

"It's like being out there in a storm - it does cause you to question your conviction, and tie yourself to the mast and weather the storm," he states. "We have hit a very challenging period of trying to sell future technology, a high-end device, but is on the high-end retail pricing spectrum, at a time when people's disposable income is limited. But I think the fact we were successful in that says people are getting the message, that you get tremendous value when you buy a PlayStation product.

"Yes there are cheaper machines out there, but not ones that deliver the degree of value for the money that ours does."

Value is a subjective thing, of course, and it's quite obvious that gamers are perceiving superior value elsewhere. I'm going to have limited sympathy for a company that ripped out PS2 backwards compatibility, especially since being able to play old PSOne games is where my PS3's current value comes from. Still, I guess if there's one thing you have to admire Sony for, it's the conviction to do whatever it wants, even in the face of a world telling it that it's wrong. 

Oh, and the PS3 isn't "future technology," because it already exists, you pretentious little man.


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68 comments | showing # 51 to 68

AutomaticZen's Avatar - Comment posted on 07/09/2009 14:24
AutomaticZen
@Black Nexus

In agreement for the most part, but sadly Sony *can't* ignore the average consumer, misguided and ill-informed as they may be. They need to make sure that when people upgrade from a PS2, it's not to a Wii or 360. They flubbed their position of strength, while Microsoft being the underdog, was playing purely to undermine Sony.

@Kaden101
http://vgchartz.com/hwcomps.php?cons1=Wii®1=Japan&cons2=PS3®2=Japan&cons3=X360®3=Japan&start=39635&end=39999
On the Japanese charts, the PS3 has retained a comfortable lead. But the chart tops out on 160,000 units (per week).

http://vgchartz.com/hwcomps.php?cons1=Wii®1=Total+Other&cons2=PS3®2=Total+Other&cons3=X360®3=Total+Other&start=39635&end=39999
Going by "Total Other" (sales everywhere else but America and Japan) You see that for the most part, the consoles sell propotionally the same, with the PS3 in 3rd place. The 360 spikes at near 200,000 units near Christmas, which is higher than the Japanese charts even list.

http://vgchartz.com/hwcomps.php?cons1=Wii®1=America&cons2=PS3®2=America&cons3=X360®3=America&start=39635&end=39999
The American charts are much the same as "Total Other". Sales are proportionally the same. The PS3 isn't catching up, it's just mostly keeping pace. Christmastime, 360 sales top out around 500,000 in one week.
http://vgchartz.com/hwcomps.php?cons1=Wii®1=All&cons2=PS3®2=All&cons3=X360®3=All&start=39635&end=39999&weekly=1
Cumulative sales show much the same thing. Sales remain proportionally the same for all three systems. The PS3 isn't catching up. It's keeping pace.

Japan matters from a developer perspective, but even then, many developers are changing the way they work in order to reach out to Western audiences. They cannot survive on the Japanese market, because the market in the US is much larger. Hence why many news articles only care about US sales.

The problem for Sony is this translates into sales differentials between titles. Again they've gotten better, but a difference in 1.5 million units (GTA4), 2.2 million units (World at War), or 3.15 million units (CoD4) can be staggering to a developer depending on the development time put in. Whereas differentials in the other direction measure around 100,00 units (SF4) or 200,000 units (RE4). So they assume they'll make less profit on PS3 titles, so they don't try as hard. In turn, the PS3 port is bad, which means the system itself looks bad. Many have started turning it around by developing on the PS3 first, but it's still a problem.
ouched's Avatar - Comment posted on 07/09/2009 14:27
ouched
@ Tubatic

I don't agree. Competitive advertising does exist, but I believe the current intellectual climate of marketing is that it's better to play to your strengths than off your enemies weakness with the limited marketing dollars you have.

Doing that might generate buzz for a week, excite the troops a bit, but I don't think negative ads really do much outside of politics. People are citing Sega's "Nintendon't" ads already in this thread. Fat load of good it did them, as every generation the Big-N and Sega went head to head, Nintendo came out ahead, and they spent who knows how much cash to put those on the air. They aren't very effective on the long term because they rarely effectively communicate to consumers why they should by your product, just what you say about your opponent's.

Chasing Microsoft over, what the $50 a year I think I paid for x-box live probably wouldn't be the best point anyway. Its not much more than Qore, and with live, I can easily stream my Netflix instant que to my living room without dragging my desktop into the living and digging up a spare HDMI cable. (Disclosure, I am an enthusiast, and I do own all 3 current consoles)

If I were Sony, looking to rally, I would sink any marketing resources I have left into an ad that
1. highlights their top tier exclusives going to back to day 1. Remind people of Uncharted, Ratchet and Clank, Resistance, MGS4, Motorstorm 2, Little Big Planet, Killzone 2, MLB:The Show, etc.
2. Show up coming exclusives, highlight upcoming Uncharted 2.
3. Remind them it's also a Blu-ray player third, not first, as its not the cheapest Blu-Ray player anymore
4. Not waste one damn second showing Home.

Simultaneously, I'd lower the system price by $50, keep it bundled with an exclusive title or two until the Slim arrives in time for the holidays, and move any exclusive out longer than 6 months to the Greatest Hits label to increase value proposition. Last, get a damn deal with Netflix signed to neutralize live's current video advantage.

I guess I think mine would communicate more than a press release belittling X-Box live's subscription fee. A lot more expensive, but it would move boxes. Something they seem to have a touch of trouble doing right now.

Its a hard economy, and the average consumer is not interested in a $400 box. At least they are starting to bundle the thing with titles.
Jim Sterling's Avatar - Comment posted on 07/09/2009 14:36
Jim Sterling
"Are you effing kidding?? PSOne games are the only value?! "

"My current value" is not the same as "only value," moron.
aaronf's Avatar - Comment posted on 07/09/2009 14:41
aaronf
I like turtles.
Static Jak's Avatar - Comment posted on 07/09/2009 15:37
Static Jak
Looks like the usual from a PS3 article. Load of people with their panties in a bunch because some people realise that the PS3 is simply overpriced.
The PS3 is great. I <3 KZ2 and Uncharted but seriously, Sony have been pretty stupid this gen.
We've got devs and publishers even telling them to lower the price but they still ignore it. Just lower the price already Sony.
Sharpless's Avatar - Comment posted on 07/09/2009 15:57
Sharpless
delriego's Avatar - Comment posted on 07/09/2009 16:02
delriego
"I'm so tired of hearing how expensive the ps3 is. Seriously. Get a new hobby."


The XBOX is so big! and it is just a PC! LULZ
GameraTheGreat's Avatar - Comment posted on 07/09/2009 16:10
GameraTheGreat
What I think Sony+Fanboys don’t realize is that most “hardcore gamers” (i.e. those willing to buy 15-20 games a year as is the norm on the 360) don’t care in the least about the PS3’s ancillary features. Sony missed their mark (and missed it badly as indicated by slow sales regarding consoles and sofware) with their marketing schemes.
Sony has been pushing their “feature set” rather than their “games” and I am quite amazed by the sheer number of Sony fans that have gobbled up this garbage. Last year, Sony seemed to finally wake up and remember that “game consoles” were about “games”(Duh). Most “hardcore” gamers don’t care about surfing the net, playing music, or watching movies. We (the hardcore) buy GAMES and lots of them. Its not rocket science.
Sony made a huge mistake thinking that they could drive all of their home entertainment products through their console. While this strategy would have been a boon for their TV division and audio/visual components, they completely neglected game development evidenced in the difficult development atmosphere found within the PS3’s innards. After realizing their blunder, they started grasping at straws trying to emulate their more successfully peers insisting on motion controls (forcing developers to program this gimmick into games) and woeful attempts to replicate LIVE (HOME).
Now, due in part to a very vocal community of fans (who don’t buy that many games by the way and probably cannot be considered “hardcore gamers” due to their nature of not buying JACK SHIT in the way of software), Sony seems to be touting its feature set again as the reason for no dramatic price cut.
If you are a fan of the PS3 the best thing you can do is go out and buy a damn game (and not just Metal Gear or fist party titles). Don’t log onto a blog to deride a journalist (some people may argue whether bloggers are in fact journalists but that’s not the point…I believe this post IS actual journalism because the blogger is pointing out subtle shifts in corporate philosophy that won’t benefit the consumer) for illustrating that your console maker seems to be losing focus again. The “value” (in the words of Jack-I know nothing about gamers- Tretton) of a console is not its “extra” features, the value of a console can be found in the games that are played on said console. Sony fans need to bother Sony and leave the rest of us (bloggers and non-Sony game enthusiasts) alone. Badger Jack and keep them (Playstation) focused, you are wasting your time arguing with the masses about how great you think Sony is…..
kingtobo's Avatar - Comment posted on 07/09/2009 16:19
kingtobo
The current price of the PS3 would have been completely justifiable to me when buying one would get me PS2 compatibility, but since it doesn't I'm looking to just buy a PS2 instead. Buying a PS3 only to not be able to experience games I missed like Shadow of the Collosus or God of War makes it a hard purchase to convince myself of, especially when I don't see a PS3 library that can even remotely compete with it's predecessor.

Granted, the PS2 sales numbers would say there aren't many people like me who never played those PS2 games, so maybe it's not as important as I would like to think it is.
Cyberxion's Avatar - Comment posted on 07/09/2009 16:47
Cyberxion
Black Nexus, whether or not it sits well with you, his point is solid.

Gamers might obsess over every little aspect of the hobby, but the only thing that your average person cares to know about videogames consoles is the price-tag. It's implied that all three of the current systems are going to, you know, play games, by the very nature of what they are. They don't need to know much else about them, and likely wouldn't care even if someone told them all about them.

You folks can rationalize it away (And some of you have. It's fucking painful to read), but it is what it is. Sony would stand to sell a lot more consoles if they adjusted the price to make it more attractive to your average consumer, to whom shit like wi-fi, blu-ray and cell processors aren't going to matter.
TOEmastro's Avatar - Comment posted on 07/09/2009 17:13
TOEmastro
*psst* buzz is on EVERY platform ever
Kalmah's Avatar - Comment posted on 07/09/2009 17:23
Kalmah
JIM wins greatest TROLL of the year award. Congratulations Mr. Sterling, no one has ever riled up a crowd this much on Destructoid before. I bow to thee!
xdarkxwarriorx's Avatar - Comment posted on 07/09/2009 18:08
xdarkxwarriorx
i think its hilarious how many people are saying "quit whining about the price LOL get a job bum". now, i know that your job at sonic pays a bit higher than minimum wage (my estimate is around 30 cents higher), so youre able to buy a ps3 within 3 months EASILY, and could go out and buy 6 ps3's if you really wanted to (kudos on making a whole 1200 dollars by the way. huge. accomplishment.). but thats not really the point, is it?

when you see two fairly identical products, but one costs twice as much... which one are you going to buy? seriously. its not being cheap, its being a good consumer.

now i know that they arent identical, and i know you are all about to brand me "xbox fanboy" (even though i dont own a 360), but the point is: why does sony charge so much for so little? its not that we cant afford it, its just that it doesnt make any sense to buy it for the vast majority of consumers.
spiderfish's Avatar - Comment posted on 07/09/2009 18:52
spiderfish
@xdarkxwarriorx

You might disagree with the price but "so little", really do you want to go with that argument? If any Sony has been accused of bundling too much stuff that's optional in other consoles mainly the blu-ray, wifi and hard drive (and a good build quality btw).
Try again.
UnnDunn's Avatar - Comment posted on 07/09/2009 19:37
UnnDunn
Sony continues to try and position the PS3 as a premium product, a Lexus compared to the 360's Toyota. And when one looks at the features available with the PS3 (Blu-ray, Wireless, hard drive and HDMI on every unit), such product positioning appears justified.

But a premium product, by its very nature, rarely sells more than mass-market competitors. That's the whole point of the choice between premium and mass-market product positioning; premium product is more expensive, has better features but sells fewer units, while mass-market is lower priced, includes fewer features (but more options) and sells more. A premium product generally provides a perceptible improvement in quality in the experience for buyers, which in turn allows the manufacturer to command a higher profit margin on the product. But that profit margin, with very few exceptions, is offset by lower sales.

Sony, in its zeal to position PS3 as a premium product, made a number of miscalculations. The number one mistake it made was it didn't actually make the game experience better on PS3 than on its rivals. Playing a game on PS3 is usually exactly the same as, and often worse than playing the same game on Xbox 360, and there is nothing on PS3 that makes up for that shortcoming. When you step into a high-spec Lexus, the ride feels more comfortable, the engine has more power, you're surrounded by luxury. Compared to a Toyota, there is a noticeable improvement. But when you fire up a game on PS3, you're forced to wait for a mandatory install, the textures and graphics are blurrier, but it winds up being the same game with the same controls as on the 360 (aside from some Sixaxis gimmicks.) There is no perceptible improvement--and in fact there are several DISADVANTAGES.

The other big mistake Sony made was not realizing the fundamental difference between the videogame industry and others. In other industries, you can position at a premium by providing a higher-quality way to do the same thing your rival products do. Whether you drive a Lexus or a Toyota, you still wind up driving the same roads. Whether you buy a high-spec Pioneer Elite DVD player, or a $30 Wal-mart roll-back special DVD player, you're still going to watch the same movies. But the premium product lets you drive/watch movies better than the mass-market product, so you compete purely on quality. Not so with videogames. With videogames, the system you buy directly controls the games you have access to AND what you can do in those games, which mean game systems do not just compete on quality, they compete on game libraries as well. And the way you build a game library is by being mass-market and making developers feel good about creating games for your platform.

Sony wants to sell a premium product for a premium price and yet still reach mass-market penetration. With very few exceptions (iPhone comes to mind), that simply doesn't work. It has to pick one or the other. It can't have both.
BrunoDeckard's Avatar - Comment posted on 07/10/2009 08:49
BrunoDeckard
When Tretton says PS3 is future technology (this is a guess, not ultimate truth) he is talking about how it was PLANNED for the future. When you see big PC producers like Dell and HP, they are always trying to give the best to their consumers, so I think it is fairly reasonable that they take a cell processor in the future. Also, Hollywood has chosen Blu-ray and dumped HD-DVD, so I think HD-DVD will disappear in the future(and not just in videogames). Blu-ray will become the standart because it is better, and this analysis is not related to any console. About the PS3, I think UnnDunn made a very strong point about its failure, and I think Sony is stubborn when it comes to prices. It should just admit it's wrong and lower the PS3 and PSPgo prices.
Jim's Avatar - Comment posted on 07/10/2009 09:12
Jim
2009 isn't as bad as 2009... was meant?
Kaden101's Avatar - Comment posted on 07/12/2009 01:47
Kaden101
Weren't there 8 million 360's sold when the PS3 hit the market? The numbers now are 360-30 million units, PS3-24 million units....let me think about this for a minute.....30 minus 24 equals.....oh yeah....6. It's now 6 million units behind.

So what I'm saying is that the PS3 has actually sold more since it's release than the 360 has since the PS3 hit the market. Looks like Sony doesn't need a price cut....who knew?

It's just some whiny Americans having a moan, & let's face it, you probably wouldn't buy a PS3 even if the price came down. You'd just find something else to moan about. The colours not right, it's too fat (have you looked in a mirror recently America?). The XMB isn't childish enough. It's made by little people with little hands, & you can't trust people with little hands!. The reliability issues of the 360 are helping the financial situation by supplying extra jobs for call centre staff & repair technicians, & people buying more than 1 360 are actually helping the American economy (yes, I've actually seen that last one put forward as a positive for Microsofts console on another website....I laughed my tits off).
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