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The latest financial numbers for the PS3 and Xbox 360 tell two starkly different stories that could be harbingers of things to come for console owners.
It's far too early to tell for now, but nevertheless there are indicators appearing today that hint Microsoft and Sony's console divisions are setting the table for an uncertain future.
The thing is, while one company enters the uncertain territory of a profitable console business, the other, known until now for its powerful, unfaltering brand, is entering what appears to be its most uncertain, darkest days yet. Also uncertain is what you, the gamers, should expect from your investments going forward. That's a whole lot of uncertainty going on.
For Xbox 360 owners, the future looks, in a word, "brighter."
On Thursday, Microsoft was quick to tout its latest numbers, which revealed a $15.1 billion revenue record. Better yet for Redmond was the news that Xbox 360 shipments were up to 2.2. million units, compared to just 1.8 million this time last year.
The gains come at a good time for Microsoft, which today is on the verge of releasing a major Xbox 360 interface update, called the New Xbox Experience (NXE). Featuring Mii-like avatars, a new menu system, and enhanced multimedia features, NXE is a risky play for the current Xbox 360 audience, but increased sales and console price cuts could help the update cement new non-traditional gamers in the Microsoft corner.
The recent success comes at a price, however. Earlier this year, Microsoft was forced to issue a costly multi-billion dollar restructured 3-year warranty program due to prohibitively high Xbox 360 failure rates. This was also the year that saw the console's year-long head start over the Nintendo Wii evaporate into nothingness.
So it was a hard knock life for Microsoft in 2007, but these continued profits--surely a strange, but welcome, feeling for Xbox execs--should translate into new games, technologies and R&D for the platform (as they have for Nintendo). In many respects, it has already stared--see also: Final Fantasy XIII for the Xbox 360.
Sony, on the other hand, would probably like to forget this week ever happened.
After modest gains throughout the year, the PS3 now languishes in last place for monthly sales in Japan; a country seen by many observers as a leading indicator for the industry's direction in the rest of the world.
Even key exclusives, once a staple of the PlayStation brand's power over the industry, have slipped from Sony's grasp this year in one way or another. On the one hand, Metal Gear Solid 4 launched with solid sales numbers and a New York City party that rivaled some Hollywood films, but quickly fizzled out in about a month.
On the other hand, Final Fantasy XIII, previously an unquestioned lock as a PS3 uber-exclusive, has drifted over to the Xbox 360 camp for a North America and European launch sometime in the ambiguous future.
And then, just this week, the hammer fell. On Thursday, Sony surprised and alarmed analysts and gamers alike when it announced a 57% cut in profit forecasts.
Now, financials might seem like a yawn-inducing turn of events to some of you, but take note of the fact that Sony signaled out its games division as a key area where those cuts would take place.
"We expect our results to be lower than the July forecast with operating income decreasing by approximately 130 billion yen, mainly within the Electronics and the Game segments," Sony said. Related reports saw the PS3 "leaking sales" in Japan, North America and Europe.
In layman's terms, this means less R&D for the PS3 and PSP, fewer games, and less development on riskier titles. At least until Sony's situation improves, anyway.
The announcement came on the heels of an equally troubling Sony announcement that saw a Japanese spokesperson yearning for Xbox 360 success in the country. The crux of the statement was that HD gaming, a cornerstone of the console alongside the fledgling Blu-ray, has not taken off quite as quickly as Sony would have liked in Japan.
But it's obviously not all doom and gloom for the PS3, and to say so would ignorantly ignore titles like LittleBigPlanet, Resistance 2 and even Home, if and when Sony figures out what they want to do with it. There's a number of other first party goodness to be had too on the PS3, which Sports Legends has covered already.The PSP 3000, Sony's bright new handheld update, is also doing incredibly strong in Japan and elsewhere this week. It was something Patrick Seybold, Director, Corporate Communications & Social Media at Sony pointed out in an email to Sports Legends today:
"As you know, the games business remains strong and we increased our PSP WW forecast by one million. We have no plans to change/alter our marketing initiatives based on this and continue to aggressively promote our products," he said.
Nevertheless, the present situations for both companies are distinct and undeniable. As a gamer, it will be interesting to see how their respective reactions going forward will translate into better games--either to sustain growth for Microsoft, or recapture it with Sony.
1 Comments:
360 for the WIN !!!
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