ps3 @ E3

media Sony

After writing about the Playstation-3 so often I had to go to the E3 to have a look at it. The huge Sony booth featured lots of playable dev kits. Each of the games had a little scale with a sticker at the percentage how much it was finished below it. These were mostly between 30 and 50%.

To cut to the chase: 1080p can look awesome. Some Gran Canyon background textures were simply stunning. Of course Sony showed it’s protege device only on a couple thousand dollars worth of pixels. Who wouldn’t.

I am not a gamer, but even I was able to see that the PS3 does have more grpahics and CPU power than the XBox 360. It’s output looks nicer, but not by leaps and bounds.

And there is even more good news for Sony: They also showed BluRay Playback. That, if I am not mistaken, already out of the PS3 shaped boxes. I had no closer look at this. Both HD-DVD and BluRay have the bandwidth and the Codec to create some nice looking images on their HDMI outputs.

600 US$ dollars or 600 Euros (which is 773 US$ today) is the asking price for the console that will start selling in November. If Sony gets decent yields from their chip factories by then. Having playable dev boxes @ E3 is more than I expected at this point.

However:

The Playstation-2 dominated it’s market. Micosoft’s first XBox was an ‘also ran’ in terms of numbers and attention. That’s how Microsoft enters into new markets: Version 1 is horrible and they get slaughtered. The first Internet Explorer attempts were ridiculous compared to Netscape at the time. But they keep coming back, getting better every time, while the competition clings to the impressions that the first MS Version left them with.

Microsoft aims to have 10 Million XBox 360s sold by the time the Playstation-3 becomes available.

Sony hopes to repeat the disc synergy for a 3rd time: ps1 -> CD, ps2 -> DVD and now ps3 -> BluRay. While it might be, that the PS3 is an inexpensive BluRay player 600 US$ is still 600US$.
There are a couple of the top end consumers that afre affluent enough to buy any high tech device that comes out. (Those would be proably the only Origami clients right now) The first 10,000 HD DVD players were sold within a day to exactly this crowd. But the next 100,000 will harder push, and we will see about the first million. Of course Sony will sell a million PS3s quickly. After that things get ‘interesting’ though. HD TV set penetration is around 15%. 1080p native of those? None. Even normal 1080 resolution is very hard to find and super expensive. Leaves lot’s of flat screens out there. Biggest problem is, that they probably are not connected and configured in the way they should be. Not that people are stupid, it’s just that things got very complex in a short time. Your dad might have explained a carburetor to you, but would you call him if you have troubles with your HDMI connector and it’s DRM ‘features’ ?

Little known fact that nobody likes to talk about: 90% of all TVs (tube or plasma) look like crap. Nothing like the original image. Be it NTSC, PAL or HD. They all have their fair share of issues. Once analog crawl and ghosting were gone, there came compression artifacts, odd frame rate conversions and cheap image scaling issues to replace them.

This is not only the rambling of an old man, it also is a very real problem for Sony: As I said the PS3 looks pretty in 1080p @ E3. It will hardly look different in the average consumers household. And when you sell 200 Million units, then you have to sell pretty much to exactly those people. These people started buying HD since it became synonym with flat panels. They like flat panel TVs. Despite the fact that for TV content a tube for a third of the price can look much better. Right now. Of course that will change in a couple of years. So on the average consumer the PS3 looks as nice as the XBox 360. But the later one is 400US$ instead of 600US$ and it has a great online dimension that works and that all your friends are already on.

People buy consoles to play games. Microsoft probably can afford to drop the price for the Xbox by 50 US$ and offer some interesting deals when Halo3 comes out. They have the muscle to maintain momentum around the time of the PS3 launch.

The world that that PS3 enters in is a much more crowded one than the one that the PS2 came to see when you got it out of its box: Not only is the there the ubiquitous iPod, there is the cell phone (we had those back then, but they were not as cheap to use as now) and the internet. Broadband takes up time in peoples life. Specially in the gamer demographics. The music industry is looking at bad numbers and thinks that their problem is piracy. It actually is much simpler: There is just more competition for peoples time. The Beatles could be huge in the 60s, since there was simply not much more culture for young people. Rumor has it that people even played the B Sides of records in their desperation for content. (I wonder if some crazy record industry executive ever contemplated to bring back the B side by piggy backing one mp3 file on to another one)

Back to the PS3: It’s a Media Hub. Says Sony. The chips are there. That’s true. And the thing /could/ do it. But it wont, since Sony does not get it. The PSP is an amazing device. The hardware would be the greatest video iPod even. It even looks ok I think. It has wifi, a decent screen for it’s size. Still, it sucks. By now there is a web browser maybe some other devices and features. But Sony did not get any momentum for their little hardware wonder. They simply can not deliver the experience. People don’t find the magic. A comparison: I never use a Microsoft Media Center, I can imagine how it is. Apple’s front row is nothing on the technical scale compared to it. It’s ‘just’ a UI. A simple navigation that segways into a couple of components that Apple had anyway. Yet, everybody is looking at Apple to merge the computer and the TV. Sony is like Microsoft here: They are unable to achieve the status of being innovative, cool or to put it bluntly worth bothering with. Their crossbar UI is very nice looking and it works well. But you navigate into things with it that then frustrate. As deadly sin in this day and age.

The amount of accessible content that might be of interest to the a specific person has exploded within the last years.Mostly due to the internet, but not only. Netflix allows you to have access to a gigantic web collection, in two days I can have any book that I might care about. Music? Yeah, we got music, alright. And, again, this not just ‘stuff’, these are the things that I care about.

Under these circumstances anything that fails to deliver on it’s promises will just be ignored. The PSP is cool, but it seemed awfully complicated to put content on it. So I ended up not investing any time in it. On the other hand there is my iPod shuffle: 50US$ refurb from Apple.com. Took 5 minutes to figure out what I needed to know about it. Probably not that long. (Why don’t they sell those things with a 30 second message from Steve Jobs prerecorded on it? “Hi, my name is Steve, and I owned this iPod before you. But don’t worry, I did not use the earphones.”. ). The shuffle served me well: It was a good deal. Money wise, but most importantly time and attention wise. The PSP having all the right hardware yet still being a lame device makes believe that the PS3 will repeat the same problem on a different scale. Sony is betting the company on the repetition of a old pattern (ps1 670MB CD, ps2 4.7GB DVD and now ps3 25GB Blue Ray). But the world of 2006 is different of that in 2000.

The world is changing so fast that the arrogance of the incumbent can be lethal. Microsoft experiences that from both sides simultaneously. Being the gaming console underdog they had to innovate and come up with concepts like Xbox LIVE. On the OS market they are actually the one ruling the world and therefor loosing their firm grip on it.

sony turns 60

Sony technology

E3 is on tomorrow. Just enough time to surrender some prophecies to the google bot:

Sony really really needs to show some impressive PlayStation-3 now.

I’d say that Sony the company has a future if they show working devices in a form factor that will ship.

But they wont.

One level down we get to see how good of a smoke screen they can show. Most importantly will be the details on the game titles: Coding for the 7+1+1 CPU architecture of the PS3 might be horrible. Just how horrible it is one might can deduct from the quality of the demos, and if there are surprise moves and shifts. This year’s E3 will be the first where the Gaming industry has to wrangle growth slowdown issues. Much like any other media industry the battle for human time has reached the section that seemed invinicible for the last decade: The digital lifestyle leaves not even enough time for games. And time is money.

Sony’s 75th birthday, what will it be like?

HD

history internet marketing Sony technology

would be hyperbole but is actually true.

What exactly are media companies thinking?

May 23: blue ray DVDs

media Sony

Sony will release a couple of blue ray movies. It is nice to hear that they set a precedence by outputing the analog signal at full resolution. How could the growing HD DVD competition not follow suit?
Having test signals as an ‘easter egg’ on the first blue ray disks makes sense: People that spend one thousand dollar for a device with ten titles instead of 300 dollars for one with 1,000 titles two years later really need ‘test charts’ to justify they purchase. This is the small, yet luctrative, market where you can sell a power cable north of a hundret US.

spring spring spring

Sony

Sony’s stock price tanks. Merrill Lynch issues a pdf where they claim that the PS3 cost 900 US$ to make. Only problem is, that if you add their numbers up it makes 800, not 900. Sure, those people should really have my 401K money. If you look a google news you still find the 900 US$ price ‘news’ flying around that is merely based on one flawed pdf.
That’s only 100 US$. Oh, Sony said earliert they are determined to sell 100 Million PS3. Of course they will become cheaper over time. If they would not than this little pdf error would sum up to 10 Billion US$. I wonder if Merrill Lynch starts caring about that kind of money.

Back to Sony. They have a new
story
. Now it’s the industry specs they are waiting for. They are hinting in direction of HDMI. DRM of video IO. I was under the impression these things were all set.

Nvidia says it does not expect any royalty payments from Sony until the end of April. They make the graphics card for the PS3.

Other ‘stories’ roam the net that mention 2007 in relationship to the PS3 launch. Sony has really a good chance to mess this up royally. Right now they have a decent trajectory to do so.

Instead of loosing more creditibility on launch dates, they should have discredited the ML paper on the simple grounds that it offered.

Ken Kutaragi told the Cell Chip developers in 2001 that he wanted the chip to be 1,000 times more powerful than the one out of the PS2 . Sonys speaks about 35 – 40 times right now.

spring, spring! 2006! really!

Sony

Sony did spend the last year confirming a launch date of Spring 2006 for it’s next generation game console PS3. As late as December the company was re-iterating this mantra. People were somewhat surprised, since the very same empty ‘concept design’ hulls were all that could ever be seen of the PS3. There were ‘example’ videos, but nobody would really think that those were rendered on an actual PS3 system.

A week ago news spread that Sony would showcase the PS3 on the Taipei Game Show this week and that got people excited. Microsoft launches the Xbox 360 in Taiwan on March 16th, and many gamers expected that Sony would reveal more about the PS3, maybe even show one, in order to dampen Microsofts growing marketshare. It turned out that Sony still has no real PS3 to show. Just some more promo videos.

And some executive PR statements:
Sony will sell 100 Million PS3s
PS will launch this year

The latest is that Sony needs some extra time and care to protect the PS3 against pirates:

Our No. 1 competition is not other companies but counterfeiters.

No word where they will launch first. No prices. No working consoles. No schedule. Sony also says that it will an online component called “HUB”.

Contratictory to so bleak non-news
Sony’s stock price
has been going up since mid last year. According to Businessweek Sony lost 290 Million US$ in their electronic – and made 365 US$ with their gaming-division last year.

I think that we will see the stock price go below thirty US $ until summer.

Here the real story about PS3.

(I don’t know this, I have no inside knowledge. I would not write about it if I would. It’s just an educated (?) guess)

Sony is depending on their gaming division revenue. More than ever. None of their established fields did well lately: They ARE the Walkman company, but never got mp3’s. Their Trinitron Tubes were the best around, but the prettiest Flatscreens came from Samsung and Co. Computers ? Well, not really that hot either. Movies are hit and miss, they have a big music division, but we all know how well CD peddlers do.

Leaves games. In games people still pay for content. The bigger the current problems of Sony in total grew the higher the expectations rose in their Gaming Division to deliver the goods. In Japan, uf you are asked to deliver then you do. Or you pretend to do: Kutaragi got years ago Millions and Millions in R&D for the next gen console. He suceeded with PS1 and PS2. Now, in his early 50s, it was time to build some legacy. So he set amazingly high marks for the specs of the PS3. Nothing less than dual 1080p should this machine be able to push. More than ten times the screen resolution than the PS2 can do. A huge leap ahead. Sony liked to hear that: It would secure the revenue stream off their gaming divsion. They knew all to well, that they sold 100 Million PS1s and 100 Million PS2s. . It is no coincidence to see this number now been cited in respect to the PS3. In reality it might just be whistling in the woods.

There is no PS3 yet. Not one has been built. At least not one that would be worth showing. Sony went to Toshiba and IBM to get the very very latest in CPU technology: The “cell”. Based on Kutaragies specs the CPU is supposed to do wonders. I think that this is were the problem is. Launching a new CPU is a big deal. There is a learning curve for everybody. Lot’s and lot’s of things need to work together real well. If you have a working system and you ‘just’ tune parts. Not so here: Most things inside of the PS3 are new. Eventually they will work. And might even work well. Sony’s bigger problem is to internally manage exactly when the machine will be ready.

If the executives cite now piracy concerns then I think that they simply telling the world what their engineers told them. The real fact is that things just got out of hand. The box is too complex to handle. But it sounds better if you tell your boss that you need extra time to protect against all those pirates out there: “Those damn pirates, you hate them too Mr Stinger, right? You don’t want your pretty new PS3 been pirated right? ” While the truth is rather different: Sony tried to leap too far. Last year they had to show most amazing videos at E3, because that was what Kutaragi did promise his elders for years. Now they are stuck on delivering this. Kutaragi said that he would expect people to get a second job in order to pay for the PS3. That’s how amazing he thought it will be. I think now he would be really reallly happy if could cram a working system into those slim empty case they did show since almost a year. Just a system that is up to par with the XBox 360, with some games for it. Maybe even this year. So that Sony can plug into where the gaming money really will be: online connection of gaming consoles. XBox Live becomes right now the ITMS for small little games. A whole new concept. There will be ample games for a few dollars: Gamers are happy, since they have the choice, developers are happy, since they get to market quickly, get new trends and have no production cost. Sony is lightyears away from having anything like this.

Ironically it will be Microsoft that will be depending on it’s gaming revenue much like Sony has been for the last years: Vista will fall /way/ behind internal expectations for various reasons. But Xbox will make continue to make money.
And Sony? Well, they will be known for the mobile TV Set’s they flew into NY with a 747 in order to meet demand, the Walkman and the Trinitron TV. And the Playstation1 & 2. The rest is history. Not the pleasant kind. Sorry Sony. No better news for you.

ps3 in September? better be, but probably wont

history Sony technology

PlayStation ‘HUB’ and a September Launch of PS3 in Japan and the US are been rumored here

Of course XBox Live needs competitions. Not sure what Sony can pull of till September. But it is indeed crucial. Like the whole thing. I think the PS3 release date is the one dimension of the watershed decission that is due this year: If they release in September or earlier and if PS3 as well as the online service are comparable to what’s out there right now then Sony might have a chance to survive. The quality of PS3 and online service are the other dimension.
Since nobody has seen anything yet, it can only be speculated upon.
But the fact that Sony has shown nothing since last years E3, and those images were clearly not from a real PS3 point in the direction that the PS3 will not be as great as Sony tried to make everybody believe last year.

If Sony had any images or release date then they would need to put this out right now in order disturb the momentum of the competing technologies: Every day people buy XBox 360s. These people will buy games for that machine, and not for the PS3. Decent hype around the PS3 could stop the ongoing proliferation of the 360 somewhat.

A friend of a friend said that there will be final devkits in June. If that would be true then a September launch is impossible. And that in turn mean that Sony is done. Toast. Over with. You probably can still buy a Flatpanel TV in 5 fives with those four letters on. But chances are that it’s actually from some chinese company that picked up the brand.

the end of Sony (again)

media Sony technology

Another perspective on Sony’s problems.
It is indeed tru that Blue-Ray has less bandwidth than recent DVD implementations. What’s the point in BlueRay?
Just the capacity? H264 compression will help there.

Cell erie?

Sony technology

IBM says in a press release that they will have Cell based blades in the beginning of Q3 of this year. “special bids” get them now.


Masakazu Suzuoki, Sony’s lead designer on Cell, says Sony aims to use this power to create movies that are interactive and changeable, with multiple story lines, so people will watch the same flick more than once. Another idea Sony is kicking around: placing ads in the background of movies and TV shows and customizing them to suit the viewer, with Cell processors keeping track of who sees what.

from here

“sure”, I say. It’s gonna be great! Just like those multi-angle DVDs. Engineers really don’t know content it seems.

How about a release date for the Playstation 3? Some parts of Sony still say “Spring 06” others are very very silent.
Gamespot picked October 1st as a pre order date for PS3 game titles. They probably just made that up.

So far I have not seen anything that would let me think that Sony can survive the looming PS3 delay and
therefor change the fate of the certain demise for the entire company. The last sentence does not look much like english to me. Let’s put in another way: Sony is fucked. Any launch date before July 1st we should have heard about.

Sony’s clock is ticking

confessions of a pixel pusher history marketing media Sony technology

Sony makes amazing technology. Their professional Broadcast division did a great job with the HDCAM SR. Only the name was a gigantic mistake: Much like a Porsche competitor would call it’s car a ‘Yugo RS’.

Branding for the “bravia” seems to be working ok as well.

But: There is no Playstation-3. And there will be none that you can buy this year.
Blueray sounds like Betamax.

Sony was always bigger and more important than the other consumer electronics companies in Japan.
It will have been this size difference that led to their demise: They are not what IBM was to computers in the 70s
or Apple is to the mp3 player market. Still they are big enough to think that they can push their own formats
alone: Betamax, Minidisc, MemoryStick, iLink (only the name was different), and now blueray.

Sony leaned out of the window last year with the Playstation-3 Presentation. They would need to deliver
this year. And I am taking bets that they can not.

Sad really: I loved those Trinitron TVs in the 80s. Nothing came only close.