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Sony's Stringer talks out about PS3 profitability and Blu-ray

Written by Andre Yoskowitz (Google+) @ 29 May 2008 17:50 User comments (4)

Sony's Stringer talks out about PS3 profitability and Blu-ray According to comments made by Sony Chairman Howard Stringer during the D6 Technology and Media Conference, the PlayStation 3 was on life support for awhile but that the console is moving its way towards profitability and a long lifespan.
When asked to comment about the company's recent failures for digital music player and interactive television ventures, Stringer noted that Sony was only now running 5 percent profit margins.

"If we have any more success, we'll be bankrupt,"
he added.

When asked specifically about the PS3 and its rocky start he said the division was doing well with production costs dropping and game titles selling very well. He also added that upcoming games would use "the full capacity" of the console and will be "spectacular."

The Chairman then went on to talk about the how the console was more than just a gaming platform but also a PSP hub and more notably, an HD media capable system. He noted that the PS3 was a main factor in Sony's Blu-ray win over HD DVD. He also added that Blu-ray did not succeed because Sony paid off movie studios for exclusive support.

"We were not in the check-writing competition,"
he said.

More interestingly, Stringer says he believes Blu-ray will last for 10 years or more despite the rise in digital distribution as their is a "long lead time before downloads can reach the quality of Blu-ray."

"Had I lost that war, the headline would have been, not that HD-DVD won, but that [Blu-ray] was Betamax 2,"
Stringer finished. "That would have been on my tombstone."


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4 user comments

129.5.2008 20:10

"He also added that Blu-ray did not succeed because Sony paid off movie studios for exclusive support."

So I suppose that $400 million check to Warner Bros. to go blu-ray exclusive doesn't count as a pay off, right? And, yes, I am aware that Toshiba had previously offered the very same Warners something in the order of about $150 million for HD-DVD exclusive support. Both companies were competing so it's understandable they each wanted as much studio support as possible.

"We were not in the check-writing competition."

Of course not.(<-sarcasm) Who does he think he's fooling? That's exactly what it boiled down to. In the end, the studio to lock down to your side was the one with the largest movie library: Warner Bros. and Sony sold its soul to accomplish that feat. Hey, way to go, Sony.

"Had I lost that war, the headline would have been, not that HD-DVD won, but that [Blu-ray] was Betamax 2"

Betamax 2... lol.

On an aside:
" despite the rise in digital distribution as their is a "long lead time before downloads..."

Apologies but wrong "their" , it should be "there".

This message has been edited since its posting. Latest edit was made on 29 May 2008 @ 20:13

229.5.2008 21:11

I think somebody's getting full of themselves, wouldn't you agree Sony chair-man.

329.5.2008 21:37

Quote:
"Had I lost that war, the headline would have been, not that HD-DVD won, but that [Blu-ray] was Betamax 2"
Sure, Blu-ray won over HD DVD but Blu-Ray may still in fact become Betamax 2.

While both digital downloads and Blu-Ray are still in their infancy stages its a race to see who gets the most attention from consumers.

Quote:
"long lead time before downloads can reach the quality of Blu-ray."
Sure, right now I can't find many legally downloadable 1080p movies or other content but that may change in the very near future.

Something I see happening in the future is the ability to buy a movie, on a thumb drive, for $20.

With the elimination of moving parts as well as the high quality that would probably take off pretty quickly.

The other thing would be if consumers could get Terabyte thumb drives for ~$300 with the ability to purchase (and download) movies onto the drives.

If something like this happened I could see optical media going extinct, or at least becoming a very niche market.

Peace

43.6.2008 20:12

Quote:

"If we have any more success, we'll be bankrupt," he added.

This basically means if they had to "buy" any more success they would have to sell everything off, if you have not noticed they sold a hell of alot off to stay afloat and I wonder if there is any profit in what they have left, the PS3 will do fine even with their unneeded dcking with it but the rest of thier hardware is in a soso state.

Also this could kill off BR in less than 10 years with 1-5TB disc
http://arstechnica.com/news.ars/post/200...ty-tenfold.html


I can see BR doing maybe 400GB in 7 years but by the last half of the 1X's we could see a 1TB disc to the consumer market still BR is enough for now and DVD only lasted 13ish years if you count the early days of it, so a HD format winner lasting around half that is not actually that bad the way todays tech works, still if BR can get to a stable 100GB a disc that worked on most BR players there is lil more that will be needed untill BR hits 14+.

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