JAPANESE ELECTRONICS FIRM Sony's fortunes have gone from bad to worse this year after appointing a new CEO and subsequently doubling its loss forecast.
The firm had already had its fair share of trouble, after a raft of scandals and a move to take over its dying smartphone joint venture with Ericsson.
Perhaps the final nail in the coffin for the loss making-firm will be its Playstation Vita gaming device, which has great specifications but has come too late, as users can now get a similar experience on their smartphones that they couldn't get a few years ago.
Rewind 10 years, and things were looking somewhat more promising for Sony. The first and second generation Playsations did well and Sony's TVs were sought after. Even five years ago, its mobile phone partnership Sony Ericsson was doing pretty well and had made the top five manufacturers list.
But Sony Ericsson's success in mobile phones didn't last. Its foray into the smartphone market suffered from numerous issues and it earned a reputation for selling poor quality phones.
So it's no surprise that the joint venture eventually broke up - that had been on the cards for some time. But sales of the Xperia range of smartphones had even started to pick up by the time Sony and Ericsson split. The Arc and Play handsets have had relative success, so Sony at least has something to build on when it launches its own phones, it'll just have to take the financial hit at first.
The firm has missed the boat with the Playstation Vita, which is certainly no phone. The handheld console, which is admittedly a little too large, packs some great specifications. It has a quad-core processor with a 5in screen, a multi-touch pad, and even 3G capabilities, but in a year's time mobile phones could be boasting similar specs.
The Vita is just too little and too late. The firm's other handheld device, the PSP, was loved by many but the company should have used its popularity to build what punters wanted - a Playstation phone.
The idea of a Playstation phone was first touted a few years ago, and the gaming community really did go mad for it. Sony could use the Playstation network to integrate devices, they said, allowing users to play games at home or on the move.
Unfortunately Sony only got as far as releasing the Xperia Play last year, about three years too late. Fans had lost interest, and the integration wasn't as close as people wanted because apparently Sony didn't want its Playstation brand used on Sony Ericsson phones. The joint venture had already done enough to ruin its Walkman and Cybershot brands.
The Vita doesn't go any further toward fitting into the gap that Sony should have filled a few years ago by making a full-on gaming smartphone. Instead, the gaming device is now competing against all smartphones, which are now so advanced in their gaming credentials that there is no need for a separate device.
What's more, why would you pay £250 plus for an extra gaming device, then pay £40 per game, when you could just pay £4 for an HD 3D game on your mobile phone? Meanwhile, quad-core mobile phones are on the cards this year, so when it comes to power the Vita soon won't even be able to out-do the humble smartphone.
Sony has also suffered from its fair share of scandals, most recently when its Playstation network was hacked. Earlier than that, in 2006, a laptop blew up in Japan, and who could forget the events of 2005, when it was discovered that Sony's CDs had a rootkit on them.
For balance let's give Sony some credit. Its camera business is doing relatively well since it bought out Minolta in 2005, and it did win in the DVD follow-on format wars with Blu-ray.
However, as consumers are not that interested in physical media any more - look at e-books and online streaming - it's something of a hollow victory.
In other areas of the business, its VAIO laptop range is liked, its TV range is okay, but then would you choose Samsung or LG over Sony? Probably.
The company does have some room to bring itself back with its smartphones under the Sony range, as well as the tablets, which at the least differentiate themselves from the competition with their unique appearance.
Sony also has a new CEO, Kazuo Hirai, who is credited for his work in the Playstation business and has already affirmed the company's commitment to TVs.
And perhaps Sony will find a way to pull itself back from the brink and maybe the integration it has promised in its Sony Online Service will now start to happen. However, again, it's a little late to the party, as Samsung and LG are already well on the road when it comes to convergence of their TVs and smartphones.
It will be interesting to see how the Vita does, but judging from the way the Nintendo 3DS bombed, and the growth of smartphone gaming, it's not going to be a winner. µ
Tags: Hardware
You r totally correct;;
although amazing specs, d price is too high;;;
first sony goin solo,den flop of xperia play n arc,,,vita is d ultimate collapse of sony,,,,plus ipod touch offers same specs wid more styl;: :/
Smartphones will never have the power to be able to play the types of games the PS Vita can. NEVER compare smartphones to a gaming system. The PS Vita will be a success. I laugh at anyone who says it won't.
Well well well what do we have here!
1) The global economy. How many families in Europe and USA can have that luxury to spend 250 euro on a gaming device, whre there are cheaper alternatives
2) The Portable games changed - from point & shoot - to more logical, short-attention span, social, simple games
3) Little differentiation - what is exacly different with HTC titan or Galaxy Note? - they also have 5 inch screens ( and bigger) and they actually have better displays
4) No strategy change - same old 1990s Sony strategy of making debatable proprietary ecosystem where Sony will try co control everything
5) Cool factor - I don't see today that Sony is a cool brand.
6) Demography shift - I see portable game devices are mainly bought by kids today ( the DSI bunch), this product is not made for kids, it is made for adults.
7) Value chain shift - gaming companies are shifting toward iOS, Android, WP7
...I can go on an on like this...
Sony make great products, but their timing to market... well someone should get fired.
The Vita's a dead duck before it's even been released. If Sony has got any brains left, they'll can it.
There are two main flaws with the VITA:
Firstly it is underpowered, and many smartphones released this year will have more powerful CPUs and GPUs. As most people will own such a phone why would they by a VITA as well?
Secondly, Sony require you to only buy Sony proprietary memory, at about 4-5 times the cost of equivalent normnal memory! Consumers are not stupid, and that's an instant fail.
Reminds me of when after owning the Walkman market, Sony released 'MP3' players that used copy protected memory and you had to run some crappy Sony software to even access them. Of course they flopped.
I agree, the Vita will be Sony's biggest failure yet!
The large 5-inch screen is the point, along with the dual joysticks, dual keypads and dual touchpads. That makes it too big and cumbersome so it wouldn't make a practical phone, but Sony didn't want to compromise on the gaming experience. The huge screen size and physical controls simply provide an experience that phones cannot match. Make it smaller or drop the physical controls (or put them in a slide-out), and it's not a playstation. Sony tested the whole Playstation phone concept with Xperia and it just didn't work.
Many of the people who now play smartphone games wouldn't have bought a PSP in the first place. So, Sony isn't losing these customers. It will always have the serious gamers, and it will get many casual gamers who want a gaming experience that smartphones cannot match. Physical controls, the large, 5-inch screen, and popular gaming franchises will likely lure a lot of casual gamers. Lots of people wonder why you would carry around a Vita in addition to your phone. Well, lots of people carry around a tablet computer, weighing 1 1/2 lbs., in addition to their laptop. So the issue is not weight.
The other issue is price point. True, it's not clear people would pay $250 for a Vita. But, in order to get gaming comparable to Vita, phone customers would have to upgrade to one of the very newest phones with the higher processing power that supports high-def gaming, which are expensive ($200+) and don't have the screen size and physical controls of the Vita. So, in practical terms, you're asking smartphone customers to shell out more money.
The Vita's price will come down, and at that point in time there will be many more titles available. $150-$175 for a top-notch handheld with dozens of high-def games and recognizable franchises sounds like a game-winner.
They said the same thing about PC gaming in the 90s, that console gaming would wipe it out. And low and behold, both PC gaming thrived, even with the intro of a third console, the Xbox, in 2000. Both PC gaming and consoles have thrived in the 15 years since that dire prediction.
Same with smartphones and handheld gaming. You can't do away with physical controls, which introduces a functionality and level of precision gameplay that smartphones cannot match. Smartphone games are tinny and childish even compared to the Nintendo DS. Yes, phones are getting better CPUs, but the jury is out on whether game developers will fully take advantage of the processing power--but they're way behind even the DS and PSP in graphics and gaming franchises--not to mention the fact that they lack physical controls.
Vita got off to a slow start simply because it has less than two dozen games, and just a handful of good ones. But more than 100 are in development. And with its 5-inch screen, dual joysticks, dual keypads, and dual touchpads, the Vita will be hard to beat.
Yes, it's big. But that's the point. It's unapologetically a game console, NOT a phone. Phones have to be small to be practical, but this means small screen size and no joysticks. This makes them inferior game playing devices.
Here's the thing: the fact that PSP still got brisk holiday sales, despite being 7 years old and having a small screen, proves that people still want a dedicated gaming console, as long as it has good games. Once the Vita has the games, it'll have all the goods.
Thanks for your column about the challenges faces Sony's Vita. I disagree with some of your points, though, and believe that Sony actually has a hit on its hands--if it plays its cards right.
You say that the Vita's 5-inch screen is too big--well, that's part of the point: it's a no-holds-barred, uncompromising handheld console. Yes, it's too big...for a phone. I think that's why Sony chose NOT to build a Playstation phone. Because a phone with a meaty screen and usable joysticks and other analog controls would just be too clunky and cumbersome to toss into your pocket or pocketbook--or slip into too-tight jeans, as in that old Motorola Razr ad. Setting aside screen size--a huge draw for gamers--Sony could've have tucked in those all-important analog controls in
a slide-out, and I think they were testing that idea out in the Xperia Play. Most gamers thought that did not quite work out, as it reduced the size of controls and demanded awkward handling. My main point is that anything that does justice to the PSP franchise simply can't be crammed into the smaller dimensions that make phones so practical.
The big issue is whether people will want to shell out $249 for a separate device to play games, with smartphone gaming improving in graphics and number of titles. Many people cite the so-so
performance of Vita at product launch in Japan, the home market. But, if handheld console gaming is on the out, why did PSP far outsell Vita (which, at 500k units for December, didn't do as bad as people thought) in the weeks before Christmas, despite 7 year-old technology? Because of price point. I think the fact that people are willing to pay $130 for an aging console shows that they still want analog controls and high-quality graphics in portable gaming. $249 may be high, I agree, but then every new gadget from any maker launches with high price; volume often allows the company to drop prices. But Sony often doesn't get volume, which often has a lot to do with marketing (and the fact that it meets a lot of resistance in the press--more on that later).
PSP also had a stronger month because it has a mammoth 800-game library; Vita barely has two dozen titles. Most PSP titles put the best smartphone games to shame, for now; like you said, newer
smartphones with quad-cores will allow for comparable gaming experience. Still, if it's true that many cell phone users won't want to buy separate handheld consoles, many of them won't want to buy
a new, more expensive phone just for gaming. And it still remains to be seen if smartphones really live up to their potential with the number of games and level of quality seen in the PSP, and
soon, the Vita world. Right now, a 7-year old gadget is the gold standard for handheld gaming, and that says a lot.
But the Vita is setting a new standard: its 5-inch screen dwarfs that of the PSP and nearly all smartphones, and its dual joysticks, dual keypads and dual touchpads (including the one on back)
will provide a new and unique level of interactivity and functionality to gameplay that simply can't be matched by any smartphone. Yes, it's big for a smartphone, and its joysticks make it a
hard proposition for your front pocket. But that's what makes it a superior console. Its weak point is the number of games available, but that's going to quickly change in the coming months.
Still, many cell phone users who might have bought a PSP a few years ago might instead stick with their own phone--which in all likelihood, would only allow for tinny gameplay on par with DS. Or, they might upgrade to one of the newer smartphones, where gaming still does not compare even to PSP. Assuming it does, the Vita, offers a qualitatively different experience, as does the Nintendo, which will always appeal to more serious gamers. The situation is akin to PC vs. console
gaming in the 90s: back then, many were saying consoles would drive out PC. It didn't happen, even with the arrival of a third console (Xbox), and even though PC gaming came to rival consoles in
quality in the ensuing years. Arguably there is less difference between PC and console gamings, though both thrived through the 2000s. Because handheld gaming is arguably more different from
phone gaming, it's likely the two markets will both thrive.
But will Vita be a hit? Most people who predict doom and gloom for Vita are basing their evaluation on the idea that a gadget has to beat all the others in unit sales, sell a gazillion units, to be a success. I think this model is bad for consumers, because it means that companies are loathe to build truly unique products for fear they'll only appeal to a certain segment. I am
not saying this to put a spin on lower sales numbers--of course a company would want to sell as many units as possible. But even though the Vita will provide a superior (and different) gaming experience compared to phones, everyone needs a phone but not everyone games, and fewer still are serious gamers. So the market for Vita and handheld gaming will always be vastly smaller than that
for phones. Even if gamers embrace the Vita, sales numbers will be much smaller than for smartphones--which many observers will take as a failure. So, should companies like Sony and Nintendo stop making unique products and simply follow the Samsungs and Nokias and make yet another flavor of smartphone? I think not.
This comes to a broader point: Sony has been criticized for sort of doing its own thing, but that's what makes it Sony. I rather like its wedge-shaped Tablet, which makes it easy to hold in
one hand or use on a flat surface, and its one-piece headphone/MP3 players, and its mammoth-sized handheld which serves true gamers--as well as its Aibo robot from a few years back. I wouldn't
like to see Sony adopt the aggressive, overbearing marketing of Samsung or Nokia, which gives them sales leads and cash but doesn't give consumers real choices--there is little to differentiate the various slabs from Nokia, Samsung, HTC or LG, though they do keep shareholders happy. In a way,
Sony's issues are the same as those of Panasonic, Fujitsu and other firms that typically do small products runs for dozens of devices to serve very finicky Japanese consumers, a strategy that
doesn't work in the American market.
On the other hand, Sony was slow to create a multi-media universe on par with iTunes or even Amazon, though when it did it created polished alternative. Unfortunately, any successes were
rolled back in the wake of the hacks last spring. Still, the reaction in the press fanned the flames, with all the focus on Sony and very little on the criminals who perpetrated these acts.
Significantly, the more recent hacks involving US governmental agencies, major banks and Zappos involved very little criticism toward these organizations on the part of the media, whichfocused on the hackers and provided a host of articles aimed at helping consumers protect themselves and understand general problem of online security. One article that dealt with the Bank of America breach dealt with the "diversity" of hacker motives and their sophistication; again, the focus was not on the banks whose data is more precious that than of Playstation users.
In contrast, the media's coverage of the Sony breach focused exclusively on Sony, its poor security, and its Playstation network troubles. If anything, banks should have beefier security than a mere media service, yet they largely escaped the criticism that was leveled at Sony.
Some of the criticism toward Sony is valid, of course, but I think that the company is generally given a hard time. Kudos to you for acknowledging some of its strong points, like Vaio series and
camera business, and hopefully these product lines will be given closer examination in the future.
It'd be nice to mention, for instance, that Sony sensors are used in top-of-the-line smartphones, which shows Sony's key strength: for all its troubles, discovery and technology isn't one of them.
sporran
I think some of the previous comments are from people who fail to differentiate between what they want from a portable gaming device and what the joe public want from a portable gaming device. This article is in reference to Sony's current monetary difficulties rather than the quality of their products.
The simple fact is, people do play games on their smartphones, and this will have an impact on sony portable device. Do you really think that they are going to sell as many Vitas as they did PSPs? Nintendo's recent difficulties in the portable gaming market, a market which they owned for 15 years, show that things are changing.
@JX, FF has been out on IOS for ages now, I seem to remember playing it on a old 3GS over a year ago. It wasn't as good as a full console version but it was getting there. Think what they will be able to achieve in a few years time.
until the smartphone can offer something like Monster Hunter or FF series, handheld gaming device will continuely make profit. do more research.
As an owner of several game capable smartphones and tablets, I totally disagree with the premise of this article. As a long time gamer, the Vita is exactly the kind of device I have been waiting for. While smartphones and tablets are capable of running some powerful game software, they are not ideal game platforms by any means. They are great for quick and casual games, word games, etc., but when it come to shooters, fps and more "hardcore" genres, there is no substitute for good physical controls. For instance, while "Dead Space" looks absolutely astonishing on both the ipad and playbook tablets, it is extremely frustrating to control with touch-only controls. While I have not always agreed with Sony and some of there business practices, I believe the Vita will be the next champion of portable gaming - especially for those of us who are bored with angry birds and such.
Although games cost more than smartphones The themselves cost alot more although similar power games won't be optimized for them as much as for the Vita.
As much as I love my smartphone, the games it has are laughable compared to what the ds or psvita offer. Its not even worth comparing.