Sony's Balancing Act - Digital Distribution vs Retail
Plus a gold PSP on sale in Japan
In the same period that Sony repaints the PSP (see below), Phil Harrison (President, Worldwide Studios, Sony Computer Entertainment) confirmed what everybody knew anyway, that the PS3's hard disk means that it's going to be a multimedia hub in the home - but in so doing he's also brought to the fore a big problem for Sony: digital distribution will impact sales of Blu-ray and relationships with retail if it is seen to be happening too soon.
Speaking at the recent DICE conference, Harrison said that, "I think PlayStation 3 needs to stand for gaming and digital entertainment in the living room pushing the envelope of high definition, pushing the envelope of broadband, and of course that includes more than just games. We don't have the announcements that you're probably looking for today, but it is digital data. We have a hard drive, we have a commerce engine, it doesn't take a rocket scientist to figure out we will have that on the network very shortly."†
While this is being picked up all over the internet to mean that "Sony will offer a movie download service, like next week dude!", SPOnG's resident rocket scientists are still picking over the phrase, "very shortly".
The reality is that while Sony has content to deliver via its own film (and music) catalogues, it also has an investment in Blu-ray, and relationships with retail that (despite its own Sony shops) it simply can't afford to upset - in the short term ('very shortly') at least.
In fact, Harrison went strongly on the defence of Blu-ray and retail, saying: "It's [digital distribution) got nothing to do with any plan that we have to eliminate retail. That's just ridiculous. I mean clearly the cheapest and most efficient way of getting 50GBs of stuff into somebody's home is to put it on a Blu-ray disc and to sell it in a store. But we think there are opportunities to engage users and players in very meaningful ways after they buy that game, either through commercial or non-commercial means."
Although Microsoft's Video Marketplace has been live since last November it is still having to provide content brokered from third parties. Sony's existing content via, for example, Columbia, means that the medium-to-long term looks strong for the company - but it's going have to be timed to perfection.
PSP 1000-CG Gold
Despite rumours of PSP2 still doing the rounds of the blogosphere (and still being staunchly denied by Sony), the company is preparing to roll-out yet a new variation of its current portable with the Sony PSP-1000CG PlayStation Portable - Gold.
The 1000-CG will hit stores in Japan on February 22nd - and the colour is the only thing that differentiates it from his brethren. Full specs are below. Worldwide sales of the PSP were far below what the company could have hoped for at the end of 2006 (decreasing by 4.46 million units for the quarter to December 31st 2006 compared to the same period in 2005). The PSP also finds fighting a huge sales battle withNintendo's DS.
†Source: 1up
Speaking at the recent DICE conference, Harrison said that, "I think PlayStation 3 needs to stand for gaming and digital entertainment in the living room pushing the envelope of high definition, pushing the envelope of broadband, and of course that includes more than just games. We don't have the announcements that you're probably looking for today, but it is digital data. We have a hard drive, we have a commerce engine, it doesn't take a rocket scientist to figure out we will have that on the network very shortly."†
While this is being picked up all over the internet to mean that "Sony will offer a movie download service, like next week dude!", SPOnG's resident rocket scientists are still picking over the phrase, "very shortly".
The reality is that while Sony has content to deliver via its own film (and music) catalogues, it also has an investment in Blu-ray, and relationships with retail that (despite its own Sony shops) it simply can't afford to upset - in the short term ('very shortly') at least.
In fact, Harrison went strongly on the defence of Blu-ray and retail, saying: "It's [digital distribution) got nothing to do with any plan that we have to eliminate retail. That's just ridiculous. I mean clearly the cheapest and most efficient way of getting 50GBs of stuff into somebody's home is to put it on a Blu-ray disc and to sell it in a store. But we think there are opportunities to engage users and players in very meaningful ways after they buy that game, either through commercial or non-commercial means."
Although Microsoft's Video Marketplace has been live since last November it is still having to provide content brokered from third parties. Sony's existing content via, for example, Columbia, means that the medium-to-long term looks strong for the company - but it's going have to be timed to perfection.
PSP 1000-CG Gold
Despite rumours of PSP2 still doing the rounds of the blogosphere (and still being staunchly denied by Sony), the company is preparing to roll-out yet a new variation of its current portable with the Sony PSP-1000CG PlayStation Portable - Gold.
The 1000-CG will hit stores in Japan on February 22nd - and the colour is the only thing that differentiates it from his brethren. Full specs are below. Worldwide sales of the PSP were far below what the company could have hoped for at the end of 2006 (decreasing by 4.46 million units for the quarter to December 31st 2006 compared to the same period in 2005). The PSP also finds fighting a huge sales battle withNintendo's DS.
†Source: 1up
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Comments
Alvis 20 Feb 2007 12:59
1/4
If only sony had included a second analogue stick on the original design then they probably would have stood half a chance at competing with the DS.
schnide 20 Feb 2007 14:00
2/4
Whatever the sales figures might show, I always see more people playing with PSP than I do DS - but notably it's always men with PSPs, and both men and women playing DS.
But anyway - I think when we start seeing the ability to send 50gb of video down a broadband pipe it might be legitimate to worry about the future of Blu-Ray and HD-DVD.
Let's bear in mind that CD sales are still going despite the ability to bittorrent an album in half an hour.
But anyway - I think when we start seeing the ability to send 50gb of video down a broadband pipe it might be legitimate to worry about the future of Blu-Ray and HD-DVD.
Let's bear in mind that CD sales are still going despite the ability to bittorrent an album in half an hour.
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Alvis 20 Feb 2007 14:29
3/4
This might be true but, especially with film geeks like me'self, i'd rather own a physical copy of a film rather than have it soulessly stored on a hard drive somewhere.
For the same reason i don't buy pirated films, not because of any moral reason, i'm a marketing directors dream. which is made even worse by the fact that i work in marketing :(
For the same reason i don't buy pirated films, not because of any moral reason, i'm a marketing directors dream. which is made even worse by the fact that i work in marketing :(
Joji 21 Feb 2007 14:21
4/4
There's a big problem in juggling these kinds of content. I too prefer a proper physical dvd. Its akin to buying a game, in that excitement of breaking the seal and getting it dirty in your player, its a great feeling.
A download is like convienience devoid of that feeling. A simple crash or error can have your gaming turn sour. Now while I've yet to have this with my 360, I fear that Sony's service might not be as water tight. (hope I'm wrong).
For PSP, while I like the download idea, its very jaded without a PSP hard drive (memory cards are nice but I also have to store other stuff on them). You'd be left to shift game files about all the time. Not being able to use those PSP files on PS3 is also pretty dumb too.
PS3 and other tv/film/music content will have the same problems 360 has. All tied up in red tape so long, that you already have the dvds by the time they are online to download. Music might not suffer as badly, but like one of you guys said, bit torrent or a physical copy are easier ways to get music, especially those tunes that never hit the official charts.
Not long to go til u.k/eu launch now for PS3, but I'm still not buying yet. A gold PSP won't do PSP any favours. The DS grips is the handheld market tightly. Pimp your PSP or rather not, its not worth it. I'll enjoy the best I can get from my PSP (import games, tv eps and films etc), but DS is where its at.
Long long road, Sony. Keep trucking.
A download is like convienience devoid of that feeling. A simple crash or error can have your gaming turn sour. Now while I've yet to have this with my 360, I fear that Sony's service might not be as water tight. (hope I'm wrong).
For PSP, while I like the download idea, its very jaded without a PSP hard drive (memory cards are nice but I also have to store other stuff on them). You'd be left to shift game files about all the time. Not being able to use those PSP files on PS3 is also pretty dumb too.
PS3 and other tv/film/music content will have the same problems 360 has. All tied up in red tape so long, that you already have the dvds by the time they are online to download. Music might not suffer as badly, but like one of you guys said, bit torrent or a physical copy are easier ways to get music, especially those tunes that never hit the official charts.
Not long to go til u.k/eu launch now for PS3, but I'm still not buying yet. A gold PSP won't do PSP any favours. The DS grips is the handheld market tightly. Pimp your PSP or rather not, its not worth it. I'll enjoy the best I can get from my PSP (import games, tv eps and films etc), but DS is where its at.
Long long road, Sony. Keep trucking.