Sony CEO: Wii Business Model 'Superior,' Sony Won't Recoup PS3 Investment

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Sony CEO Howard Stringer, pictured at left, confessed that the Wii "may be a superior business model" in a recent interview.

"The major difference lies in the fact that Nintendo makes money with the hardware alone," he explained to German newspaper Die Welt.

As for when Sony will recover the $3 billion it spent on the PlayStation 3, Stringer responded with a laugh, "Not for as long as I live."

He then turned serious. "It will certainly take some time. ... We are currently at the stage in which we need to get a grip on the production costs. That takes time," he said. The CEO stressed that the company is now making more money on PlayStation 3 games than it is losing on hardware sales.

Stringer also cast doubt on recent claims that the PlayStation 3 would see price cuts this year. "I think not," he stated when asked if the system would see a price cut before this Christmas.

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From The Chatty
  • reply
    August 28, 2008 12:12 PM

    The Wii might be the best business model, but it's the worst model going forward for the true video gamers

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      August 28, 2008 12:15 PM

      "True video gamers" do not make up the majority.

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        August 28, 2008 12:56 PM

        They used to be, until nintendo released the Wii, which is now completely swamped with mini game bull shit and only a hand for of "core" games.

        Yay for the "casual" gamer!

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          August 28, 2008 1:17 PM

          Seriously, if I hear anyone else say the phrases "snackable gaming" or "bite-sized gaming", I'm going to literally eat one and then sue the shit out of everyone!!!

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      August 28, 2008 12:22 PM

      [deleted]

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        August 28, 2008 12:32 PM

        guess 2 out of 3 isnt bad.... i can see cod4 and kotor 2 (although kinda old)

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          August 28, 2008 12:45 PM

          oh yeah true gamers is kinda a vague term in general too...but if i were to classify it lets see....

          Casual- bejeweled, poker games, quick pick up and plays, party games...somewhere in that area.

          Average- Generally any game genre as average usually dont specify preference always...

          Hardcore- Mostly consistent of fan based sequel buying gamers (myself included) genre mostly involved in FPS, action-adventure to arcade classic and rpgs...but also having a soft spot for some sports based or high impact multiplayer games (we are generally the group that actually misses or missed out on the arcade scene).

          Professional - These guys are not fanatics...its a job for them mostly cause while the rest of us work for a living they play for cash and prizes for a living not really a bad deal but in most cases the worst of the group when it comes to gaming. There not necessary hardcore cause they like it per se as it is important to be hardcore because its necessary. Mostly involved in sports related games, FPS games and Fighting games its hard to really give them a nod here. mostly because they are in it for the dollar.

          now this is not to say on their off time they dont slip into the other categories its just if i had to place them somewhere it would be like this and not sticking them anywhere.

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        August 28, 2008 12:40 PM

        Nice! KOTOR2!

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        August 28, 2008 8:00 PM

        LOL.... great picture

      • reply
        August 28, 2008 8:00 PM

        LOL.... great picture

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      August 28, 2008 12:43 PM

      What does that even mean?

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      August 28, 2008 12:57 PM

      lol, 'true video gamers'. Are these gamers bastions of light and his Holiness? Do they sit at a roundtable discussing the ways of the Game?

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        August 28, 2008 1:17 PM

        No, they play good games, which are very scarce on the Wii.

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          August 28, 2008 3:17 PM

          "Good" is highly subjective. What you consider good and what I consider good are probably very different.

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      August 28, 2008 1:34 PM

      I have to make something clear, Nintendo's Business model is to make money on each console sold. Its was still crazy cheaper when it was released, so i don't see how that is a bad model for gamers, release a cheaper system AND still make money...this way Nintendo had money that they can hopefully spend back to the gamers and then a circle of profit occurs hopefully where we gain because they have money, they gain because they have money.

      Of course them having money doesn't mean they DO benefit us, but it does mean they have the power to.

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        August 28, 2008 2:44 PM

        The problem is that they're certainly going to be strongly tempted to do another Wii next time, and that would be bad for everyone. We don't get the strength of gaming that we want, and they don't get the sales they want because everyone tired of the Wii. They end up on the back foot, and things are overall bad.

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          August 28, 2008 2:51 PM

          maybe another wii with better graphics...and better third party support?

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            August 28, 2008 4:16 PM

            that wouldnt work, the lack of decent third party support is because of the technology gap between the wii and the 360/ps3. This gap would still continue in to the next generation, unless nintendo created a similarlly powered system to ms/sony. But that would result in destroying their buisness model (cheaper hardware that brings a profit rather than a loss) and also reduce their target casual audience, who typically arn't willing to invest that kind of money.

            I've thought about this a lot, its going to be difficult for nintendo suceed the wii in a sense. No one buys the wii for graphics, so that isnt reason to buy a Wii2 if that is the selling point. Their are going to have to include some significant improvement somewhere to get everyone to upgrade. I cant imagine direction that would come from though.

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              August 29, 2008 6:30 PM

              You probably would have stated before the Wii was released that you don't believe there is any way Nintendo can come back into the market either.

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      August 28, 2008 3:21 PM

      And why is that? Is it just because of the weaker graphics and processing power? Too be honest, the Wii still holds the most potential for great games of the current generation in terms of actually driving the industry forward on a creative level (it's cheaper to develop for and provides new ways of interacting with games). The two main problems are publishers seem to view it as a more casual console so we're not seeing more "serious" games on it compared to the other consoles and nobody is making effective use of the Wiimote right now (seriously, fuck off with "gesture" gameplay).

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        August 28, 2008 7:48 PM

        It's not just because of the weaker power; it's because there have been about 10 games worth having on the thing (and that's assuming you like all those genres).

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          August 28, 2008 7:57 PM

          To be fair the 360 has maybe five titles I'm interested in (non-Live ones), and I already own four of those.

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      August 28, 2008 3:56 PM

      I guess you haven't played any Wii games. Super Mario Galaxy was awesome.

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      August 28, 2008 4:40 PM

      I love how jaded we have become as gamers. Thank you marketing. Thank you for telling us how to like our games.

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      August 28, 2008 8:13 PM

      HAY GUYZ NINTENDO DOESN'T MAKE GAMES SPECIFICALLY CATERED TO MY PERSONAL TASTES THEY R PHAGGOTZ 4 SUREZ

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