@Laoldar,
very good points, but for sony as a whole things can tie in and even out. like you said they may lose with the games to promote the hardware, but then the gains that are made by the hardware is passed on: I don't really understand how being the one who created Bluray benefits them, just like I have yet to learn how big a slice of the pie a hardware manufacturer gets from somebody wanting to make games on their system, but if I'm guessing right for them as a company as a whole might be okay even if the software studios work at a loss just to create bundles with the ps3 hardware. Worst case scenario, even if Bluray popularity brings them nothing financially, they might still benefit as a company as a whole from the living room awareness and penetration through their console, opening up posibilities for integration of different products (psp, cellphones, cameras, tvs...). From what I read in some articles many are saying MS has been doing that for a long time with it's products and consoles: redirecting cash profits from Office and Windows to create a stepping stone in a less profitable sector even at a loss.
All this I believe can work out great for Sony if they do indeed like they said have an overal strategy. And a determination to stick by it even if the media bashes them for a while. But I believe they may do it because I do believe that companies on such a big scale have to have big plans and unlike what journalists seem to often think I believe they not only give the consumers what they want but shape our tastes to the directions that will be in the future profitable. For example I think their whole Singstar concept is amazing. I myself am not into that, but they could turn that into a huuuge industry in itself... but i got sidetracked...
My point was: unlike what I've been reading some sugest that they just move on to an early launch with ps4 I think they just need to survive for now and not stop investing in ps3 and it will work out great for them in the longer term. The only question is if they are able to stay detached enough from the media and mass opinions to continue to invest heavily in something the media is telling them is a lost cause.
I think they're simply aware of how frontloaded video game sales have become. "1 million" was probably said just because it's a nice round number, but the point is that if MGS sells less than 1-2 million in its first month, Konami is in big trouble financially.
I wonder if Sony's focus on internal studios could become a liability. As this article says, publishers have to sell a lot more copies of a PS3 game (as opposed to a PS2 or even a Wii game) to break even...if Sony is moving to producing most PS3 exclusive games themselves, they are assuming a LOT of financial risk. How many PS3 games have made a profit over this first year?
Of course this is likely a move to try and keep pumping out titles for the system at a time when 3rd party developers are hesitant to do so. If consumers don't start buying more PS3 games soon though, it could scare away even more companies.
@Laoldar,
I don't get why it has to be so much in first day sales and not more spread out. Reading the Reuters article I'm thinking more that Sony made the right move with focusing more on internal studios.
Granted it's a move that accepts the fact that 'accepts defeat' in the sense that it admits it's not going to rule the market like it did with the ps2, but presuming you saw that as inevitable it's a very smart move imo: you can't except big game companies to dedicate exclusives to you, so knowing that you are going to have at least a strong competitor you need to give consumers a strong reason to buy your sistem. Instead of giving a lot of money to third party and endign up with them capitalising on that money in the long term you make your own studios, and while you lose on software sales you're pushing the hardware and building IPs...
Should they pull through the short term (next 2 years) and keep a consistent vision I think that's quite a great strategy.
It's interesting that they refer to selling 500,000 as a PS3 exclusive as a "failure" that a company can only take once or twice. Those kinds of numbers don't look good for smaller companies looking to develop games for the PS3.
MGS4 seems to have renewed buying support as of late as well. Have there been a lot of new user sign ups recently? This phenomenon of price inflation in the big name stocks is usually the result of an influx of new users.
Pretty much everything we've seen so far of Metal Gear Solid 4 has shown a desert locale. Desert streets, desert buildings, desert sand... At least part of the game's set in the Middle East. But not all of it. Turns out you'll also be heading to South America for a stretch, and maybe Eastern Europe as well.
I assume that the second quarter of 2008 is calendar year and not some Konami fiscal year. I guess either way it is worrying that they are still talking release dates in terms of Quarters rather than months.
very good points, but for sony as a whole things can tie in and even out. like you said they may lose with the games to promote the hardware, but then the gains that are made by the hardware is passed on: I don't really understand how being the one who created Bluray benefits them, just like I have yet to learn how big a slice of the pie a hardware manufacturer gets from somebody wanting to make games on their system, but if I'm guessing right for them as a company as a whole might be okay even if the software studios work at a loss just to create bundles with the ps3 hardware. Worst case scenario, even if Bluray popularity brings them nothing financially, they might still benefit as a company as a whole from the living room awareness and penetration through their console, opening up posibilities for integration of different products (psp, cellphones, cameras, tvs...). From what I read in some articles many are saying MS has been doing that for a long time with it's products and consoles: redirecting cash profits from Office and Windows to create a stepping stone in a less profitable sector even at a loss.
All this I believe can work out great for Sony if they do indeed like they said have an overal strategy. And a determination to stick by it even if the media bashes them for a while. But I believe they may do it because I do believe that companies on such a big scale have to have big plans and unlike what journalists seem to often think I believe they not only give the consumers what they want but shape our tastes to the directions that will be in the future profitable. For example I think their whole Singstar concept is amazing. I myself am not into that, but they could turn that into a huuuge industry in itself... but i got sidetracked...
My point was: unlike what I've been reading some sugest that they just move on to an early launch with ps4 I think they just need to survive for now and not stop investing in ps3 and it will work out great for them in the longer term. The only question is if they are able to stay detached enough from the media and mass opinions to continue to invest heavily in something the media is telling them is a lost cause.