Sony CEO, Howard Stringer, recently spoke to German outlet Welt Online about research and development cost, PlayStation 3 demand, and even the impact that the Wii has on the PS3. Not surprisingly, Stringer revealed that Sony is losing money on their newest console and games are the only source of profit at this point.
Interestingly, Stringer then begins congratulating Nintendo for capturing the casual market that Sony has traditionally sought out with titles like SingStar and says that the Wii doesn’t pose a threat to Sony’s plans.
The major difference lies in the fact that Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality. The PlayStation 3 has an enormous processor; it is gradually emerging as the central server in our users’ homes.
Even though I’m just a couch CEO, I think the Wii may be throwing a tiny wrench into Sony’s plans of global domination with their console. I find it hard to believe that a console that sells as quickly and as well as the Wii isn’t affecting the potential of a PS3 in every home.