Tuesday, August 29, 2006

Can the PS3 Save Sony? - Wired Magazine

Wired magazine has an article about Sony and the PS3. In the article, they discuss how Sony came to depend on the release of the PS3 as the companies saving grace. Quote:

"Sony has always been at its best as a personal hardware company, coming up with nifty gadgets that delight consumers. In recent decades, though, it's become oddly fixated on imposing its own standards ? Betamax for VCRs, the Mini-Disc for digital music players, the Universal Media Disc for PlayStation Portable, the Memory Stick for anything you can think of ? despite the world's unwavering rejection of those standards. And Sony has never displayed an aptitude for software or had great success with networking, the key feature Microsoft has built into the Xbox. Yet Sony has to face Microsoft not just in videogames but across the entire panoply of home electronics, which Microsoft is determined to control through software. And Sony has to do this with cash reserves of $6 billion ? compared to Microsoft's $38 billion hoard ? while losing hundreds of dollars in manufacturing costs alone for every PS3 sold. Eventually, Sony's costs will come down. But in the meantime, Goldman Sachs projects, Sony will lose nearly $2 billion on the PS3 by the end of this fiscal year in March."
The article goes on to discuss the differences between the game platforms and companies that made them. Quite a bit of information about the Sony corporation is included in the article. A very interesting read, check it out here: Wired 14.09: Can the PS3 Save Sony


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