This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
Can we agree that Sony (NYSE: SNE) stumbled when it launched the PlayStation 3? Sales statistics can be looked at from many different angles and spun this way and that. But the bottom line, as I'm sure any Sony fan will concede, is that the PlayStation brand has suffered an agonizing defeat, at least at this point in the current console war. At the time of this writing, the PS3 has sold over 14 million units globally. Microsoft's (NASDAQ: MSFT) Xbox 360 has sold 20 million systems. And last, but most certainly not least, the Nintendo (OTC: NTDOY) Wii has moved over 29 million units across the planet.
Without a doubt, the Wii has captured the imagination of both the mainstream, casual gamer and a good chunk of the younger generation. And a good many hardcore gamers are in love with the Wii as well. Not only that, but I believe that Nintendo has been able to leverage the popularity of its DS handheld system to convert a lot of those owners into putting Wiis on their Christmas lists. It's sort of like the phenomenon of the iPod selling Mac computers. Add to that the highly competitive pricing of the low-end model of the Xbox 360 (you can get it for $200 here in the U.S.), and you can only come to one conclusion: Sony's PS3 needs some sort of new strategy, a makeover even, to get it back on top of the video-game heap. I'll present a few thoughts, suggestions if you will, on how Sony's management can turn things around.
To begin with, an entirely new advertising campaign needs to be built from the ground up. And it needs to be aggressive and attacking. Specifically, Sony needs to link the Wii to childish gaming. We all know that isn't true, but Sony would probably benefit by trying to convey an image of superiority and maturity over its biggest rival. Imagine television ads that specifically show goofy, nerdy, unpopular kids/adults playing the Wii, and then juxtaposing such scenes with cool hardcore gamers having fun on the technically advanced PS3. Maybe an ad might show someone falling flat on their face while using the Wii Fit board. The Wii users could then be portrayed as being jealous of their PS3 counterparts. The tag line could go something like "Don't you feel a Wii bit stupid? Be a winner. PlayStation." If Sony can turn the Wii into a fad device that no self-respecting individual would want to own, then it might increase its console sales.
But, we can't stop there. The makeover has to continue. And I would take a radical step with this next suggestion: ditch the Blu-ray player. I know, I know, if Sony does that, then a big chunk of its business model with the PS3 goes out the window. Management would essentially be admitting defeat on the linkage of the prized new-format paradigm and gaming. And to tell the truth, I've always argued that the Blu-ray functionality is an asset to be promoted to potential buyers. Yet, if Sony is to think outside of the box that it's created, then maybe it should take Blu-ray out of the PS3 box. Come on, what else should Sony do? That would obviously allow a nice price reduction for the system, and that would mean things would heat up in terms of competition. It would give Sony a fighting chance. Plus, it would encourage Sony to focus on video games. Why let users be distracted by movies? Oh, and while I'm at it, let's mention that huge hard drive. Do what Microsoft has done: create at least one low-end model that has no hard drive but does contain a memory unit. Sure, that will interrupt plans for domination of the living room via a multimedia hub of Sony's design, but so what? Maybe consumers aren't ready for their living rooms to be monopolized in such a manner.
Sony could do more things if it really wants to stay in the game. How about create an online service that would act as a killer app for the PS3? You know that one of the biggest selling points of the Xbox 360 franchise is the Xbox Live product. On an anecdotal level, hardcore players love it and use it. I don't hear much about Sony's online platform. Sony is, I should point out, working on the PlayStation Home experience, which is supposed to be an impressive virtual community for gamers, so perhaps the company will succeed with that, who knows (I have my doubts). Another thing the PS3 needs is its own Mario-like character. Sony does have some great, successful intellectual properties for the PlayStation universe, such as Jak & Daxter and Ratchet & Clank. But can these characters compare to trademarks such as Mario and Donkey Kong? What about Sonic? I think Sony could work on this aspect as well.
And that point naturally leads into this one: how can Sony convince parents to pony up for the PS3 instead of a Wii? Simple: make (or encourage third-party publishers to make) more games for kids! Really target the five-to-seven-year-old demographic. Make the games simple to play, don't make the mistake that just about every software publisher makes when it programs a title that is geared, at least in part, to a kid. Seriously, how many kids have problems finishing Super Mario Galaxy? A lot. As part of any makeover, I would suggest to the powers that be that every game designed for the younger set come with an easy version that will prevent players from getting stuck (come to think of that, I myself would like that option as well, as I feel video games are, in general, too tough anyway). There is a justifiable stigma attached to both the Xbox 360 and PS3 when it comes to their kid-friendliness. Sure, both do have games that skew toward the young, but the Wii has them both beat on this count.
Sony needs to mutate, to change its video-game DNA to enhance its brand fitness so that it may once again regain its title as the champ of the entertainment console. It should attempt to reduce the price of the PS3 in any way possible, and it needs to draw a clear line of differentiation between itself and the main enemy, the Wii. It can be done. It just takes a lot of hard work and rock-solid marketing muscle. The game isn't over yet, Sony...
UPDATE: I've received many comments regarding my notion of removing Blu-ray technology as part of a makeover of the Sony PlayStation brand. I would like to clarify my thoughts, as admittedly, I did a bad job in terms of being clear. In my opinion, Sony included Blu-ray as part of the PS3 system mostly for pushing that format as a new paradigm for movie-content distribution on physical media (i.e., to win over HD-DVD). I do not believe video-gaming was at the forefront of the minds of the execs (again, just my opinion). It is true that my suggestion would cause a radical technological disruption to the current PS3 strategy, but my makeover thought experiment was intended to be that -- radical. I wanted to express an idea of how to change the current PlayStation paradigm almost from the bottom up.
Microsoft has gotten away with DVD media, and the Wii has gotten away with innovation over technological superiority. But I did not acknowledge the inextricable link between Blu-ray media and current PS3 design, and I should have stated that directly; and, yes, at this point, my suggestion would probably only have academic value at best, I concede. I know this addendum won't be satisfactory to most, but I wanted to present it nevertheless to the people out there who have taken the time to read and comment on my thoughts.
Disclosure: I don't own any company mentioned; positions can change at any time.
Does the PlayStation need a makeover? What would you suggest? Be sure to check out the other makeover posts.











Reader Comments (Page 1 of 3)
10-23-2008 @ 7:41AM
nick said...
the only intelligent thing this guy said was reduce the price. Everything else would ruin the system and be ridiculously expensive, also, in case you haven't noticed Mr Mallas, BluRay won the format war, switching out of it would be possibly the stupidest thing to do. That and Sony actually can't switch to HD DVD and normal DVD's are too small for next gen gaming.
10-23-2008 @ 8:10AM
Gary said...
As with the last poster - removing the BluRay player would be a disasterous move. Not only does it allow movies in hi def, the BluRay player also allows games to contain much more content, with up to 25 gigs of storage, versus 4.7 gigs on a conventional DVD.
And, the Sony online network is FREE, as opposed to a fee based online experience for the Xbox 360.
Certainly advertising could be improved, but the reason the PS3 comes in 3rd place is really a matter of economics. The Wii is the cheapest system to purchase. It has no hard drive, inferior graphics and sound, and most of the games are LAME, to say the least. 3rd party developers are not so quick to develop games for it, and most titles created for for all 3 platforms are "dumbed down" when ported to the Wii. The only real advantage the Wii has over its competitors is the controller. It is clearly superior to Sony's and Microsoft's.
Moving to the Xbox 360, price clearly helps it to sell more units than the PS3, but the biggest advantage for the Xbox is the fact that there are over TWICE as many titles available for it as there are for the PS3.
I believe that the single biggest thing that Sony could do to improve the PS3, would be develop a controller for the PS3 similar to the controller used for the Wii. Giving gamers a more intuitive way of interacting with the gaming environment would make the system irresistible, while prolonging the product's lifespan for quite awhile.
10-23-2008 @ 8:12AM
milenko339 said...
The author of the article wasn't saying that Sony should replace the format with HD-DVD or CD's. He was just saying they should remove the ability to play these movies. I, personally, would love to have a PS3, but am not going to pay that outrageous price for it. I don't even own a HDTV, and don't need one. If Sony would remove the Blu-Ray player, and reduce the price by $100-$125 I'd leave work right now, and go pick one up!
10-27-2008 @ 8:30AM
pwd5775 said...
Sony needs to ensure that the PS3 is backwards compatible to play the PS2 games. There also needs to be a way to use the PS2 memory cards with the PS3. These issues, and the sell price, are what are keeping me from buying a PS3. I think the Blu-Ray player is a nice feature addition, similar to the PS2 being able to play DVDs.
10-23-2008 @ 8:58AM
Marc said...
Cost, cost, cost! that is the issue. The Sony is just too costly for many people, especially during these times. As the last blogger said, the Wii interactive joy stick with the low price wins the day. Everyone knows that the graphics on the Sony are far better.
10-23-2008 @ 9:01AM
Wil said...
Who writes these things? You obviously have no idea what you're talking about.
Sony needs a 'Sonic?' Look how far that got Sega. And Mario is definitely not the reason the Wii is so popular. Videogame mascots should be left in the '90s where they belong. Do more than 5 minutes of Googling before you write your next article.
10-23-2008 @ 9:13AM
Kris said...
The Blue-Ray Player is what pushed me to get the PS3 a year ago. Go price out an X-Box and a seperate Blue Ray player and get back to me. The PS3 is worth every penny for what you get.
Maybe they could build a cheapo model for the people who don't care about Blue Ray but if you have never seen a movie on Blue Ray on a good HD TV, you are missing out.
10-23-2008 @ 9:20AM
Jim said...
I own a PS3 and have an HD-TV and I absolutely love both. I have been on the Playstation platform since it came out like 15 years ago and there is no way that I would switch over. The only way that I could get my wife to play video games with me is if we got the Wii. I have considered buying one, but only for her sake not mine. I am perfectly content with the PS3 and how it is and the fact that it has Blu-ray, the best invention since sliced bread. I went a little overboard getting the big system with all the memory, but you never know. My buddy and I still play Nintendo and Sega from time to time and I wish that they were still saved.
10-23-2008 @ 9:22AM
Stephanie said...
I agree with milenko339, my son wants a ps3 for Christmas, so I was looking to see what people say about it. It really doesn't look like he is going to get one because his TV is not in HD and he would have to buy all new games, which is absurb. He already has ps2 and 360, I think he'll get a Wii this year.
10-23-2008 @ 9:49AM
Lucas said...
I have both, a xbox 360 and a PS3, and I would just like to say one thing. Blue Ray Player. Thats the significant differance between the two and when Microsoft finally puts out their blur ray player, it will be an extra add on of at least $200. Now wich one looks more appealing? Especially when the PS3 is a 10 year system and microsoft is already making a new system.
10-23-2008 @ 9:56AM
Thomas said...
Sony cannot remove the Blu-Ray player because that is the technology that allows the games to play as well. If you notice all the games are on Blu-Ray discs. No Blu-Ray player means no games on the system either. It would be nothing more than a PS2.
What they really need is a huge set of exclusive games but Microsoft has been able to keep those to a minimum while making a lot of their own exclusives.
As with the Wii, it just has a large market. If it even sells to half of its market, that is more than the market of X360 and PS3.
Finally to Gary, the Wii does have a hard drive because you do not need memory cards to save even though you can, we just do not know the exact size since it is measured in blocks like the original XBOX. also Sony has a motion controller called the SIX Axis that tanked. most game developers don't even use the feature in their games. You are right that many of the games on the wii are lame but It has just as many hit games as the 360 and more than the PS3. Once again, Sony needs to better the game library with more exclusives if it is to take off and make up market share from Nintendo and Microsoft
10-23-2008 @ 10:01AM
Todd said...
Regarding Stephanie's comments, while I have a PS3 and absolutely love it, I can see your logic in getting a Wii, however if your son wants a PS3, already has a 360, and does not have an HD TV, I would question why. Maybe it is because his friends have moved to/bought PS3's and he is no longer able to play games with them. The Wii will not solve that problem, and you may still end finding yourself with a son that wants a PS3. Just a word of caution.
I do agree with many of the readers that the price is prohibitive to Sony's success. That said, the Blu-Ray is an integral part of the machine that makes it far superior, technically, than its counterparts. Removing this would doom Sony to research a quicker next gen machine. Right now, Microsoft and Nintendo are scrambling to technically catch up with the PS3. I know that sounds strange considering they are both ahead in sales currently, but if you do any gaming research, the fact is they both realize that HD is coming whether the consumers want it or not, and their platforms need to be in true HD capability.
The reality is that most gaming consoles(with the single exception of the Wii) lose money for a long time before making some, and Sony is trying to mazimize their return on their investment. They WILL reduce the price, when the sales figures dictate. Just because they are behind in total sales doesn't mean they aren't happy. They have made HUGE headways in sales and have almost caught up to the sales of the 360. That is impressive considering it was released a full year ahead of their console.
The real people that need to worry is Microsoft because Sony has the technically superior platform and they will have to release another generation model that will likely be only slightly superior to the PS3.
10-23-2008 @ 10:02AM
Nick said...
I just want to point out a flaw that the writer and all of you have yet to realize.
The PS3 cannot remove the Blu Ray player, all of the games run off of blu ray discs, so therefore if you take out the blu ray player, all of the games wont work on the system. So that would turn the PS3 into a useless box.
Also game selection isnt the only reason Xbox is beating PS3, its Xbox live, its so much more easy to use, and more thorough, than PS network. For sony to gain ground the will need a better system in place, and no Home will not be an Xbox Live killer. They need to push friends list and chatting and some of the Entertainment options (a la Netflix coming to Xbox live). When they do that, lower the price of the system, keep their exclusive games, and push for more games. They will have a fighting chance.
And to Stephanie, if you get him the 80 gb PS3 its fully backwards compatible, which means ur son could play his ps2 games on the ps3, as well as get a couple new games for the system.
10-23-2008 @ 10:12AM
Tom said...
I can not believe the author actually got his opinion published. I could not disagree more, while the author clearly has no clue about gaming or business.
He starts his agruement suggesting PS3 should change it's advertising to attract a more mature audience, and then finishes suggesting more games for 5-7 year olds?
As others have pointed out, Blu Ray won the format wars and a PS3 is CHEAPER than most Blu-Ray players. PS3 unlike the other two competitors has cross-over appeal with parents who only want Blu-Ray and kids who want games! Add to this the FREE on-line game play, and PS3 is on the road to victory. Granted Xbox has sold more units, however they had Halo and a working system over a year earlier than PS3 got their act together.
PS3 may be in third place today, but I think next year's numbers will paint a totally different picture.
10-23-2008 @ 10:27AM
Tom said...
Stephanie, with all due respect, you don't need an HDTV to use a PS3, while your son can play is older PS2 games on the new PS3 system if you get the expanded memory, which is well worth the investment. In my opinion, what's absurd is Nintendo and Microsoft's track record of making older games obsolete and incompatible with new systems. I have an Xbox and PS2, and finally converted to PS3 selling all of my Xbox equipment and games, while keeping and using my PS2 games and could not be happier. We've never talked about Xbox360 and their reliability issues with the "circles of death."
With that said, I too am considering a Wii, because the games do look like a blast.
10-23-2008 @ 10:33AM
harley said...
hell if theyd lower the price on ps3 id go back to playstation. i miss my playstation 2 my sister went and pawned it and 25 games for a carton of ciggarettesthat she never got. so since then i been stuck with the original xbox. i had a wii for awhile and it gave me some bad injuries i fractured my knee and elbow so i said to hell with that lol. please powers that be at sony lower that price and they will come.
10-23-2008 @ 11:10AM
Louis Hall said...
Price! That is the only thing keeping Sony from selling better. The comments on the Wii commercials were just idiotic. They are different technologies, the wii and sony 3.
10-23-2008 @ 11:42AM
Brian said...
This is one of the worst written articles i've ever read. This guy clearly has absolutely no idea what hes talking about... Hey author, be responsible and do some research on the topic before turning this in.
10-23-2008 @ 11:41AM
Kelly said...
His idea for advertising directly against Nintendo reminds me of what Sega tried. Seems like it was something like "Sega does what Ninten-don't", was said to have been kind of a flop of an advertising idea too.
Nintendo also built the Wii with kids and family in mind, thats what they were shooting for. They were not trying for everything PS3 and 360 was going for which is also why they didnt incorporate HD into the Wii. They wanted something cheap and fun and succeeded bigtime with it. PS3 was aiming at a different and older, more mature audience.
Also what he said about releasing a version without a hard drive would probably be bad. Ive seen interviews with game designers who would always say they hated programming for the 360 because they had to figure ways to make ALL their games work with and without a hard drive which would put too many limits with games. PS3 gave them more freedom because a hard drive came with every unit. Yes they could make smaller sized drives to lower the price though.
Is removing the bluray player possible? I mean, arent the games themselves on bluray disks? Thats like removing the DVD player function from the PS2 and their games themselves were also on DVD's. This would mean creating a whole new system in which games were put on yet a new type of disk, or even back to cartridges.
Things have been slow with PS3 when compared to the others but I myself have really been getting back into mine in the last few months. The online service is just starting to show a little more life than it had and games have been pulling me back more too. I think by Christmas or soon after, the PSN will start to show a little more competition and more comparable to XBL.
10-23-2008 @ 11:48AM
Josh said...
Wow, take Blu Ray out of the PS3 so new consumers cannot enjoy the current game library. What a GREAT idea!
You sir, are an idiot.