Kutaragi: Sony hardware "in decline"
Speaking frankly to Reuters, the Sony Computer Entertainment president and CEO concedes European PS3 delay has hurt his company's console pole position.
Last week, Sony spawned a cavalcade of negative news reports when it announced it had delayed the European launch of the PlayStation 3 until March 2007.
Nearly simultaneously, the company revealed that instead of having 2 million PS3s available at launch in the US and Japan, the company would only have 500,000. Of those, 100,000 would be allocated to the console's November 11 Japanese debut, and 400,000 would be sent to North America, where the console goes on sale November 17.
Needless to say, the gaming press had a veritable field day with Sony's misfortunes, spawning accusations of bias--and everything else short of human trafficking--from the PlayStation faithful. Today, though, the leader of their flock, Sony Computer Entertainment president and CEO Ken Kutaragi, conceded to the Reuters news service that the European delay and American-Japanese launch-shipment reduction had set his company back in the next-gen console conflict.
"If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true," Kutaragi told Reuters, in a moment of candor rare in the tightly controlled information flow currently endemic in game-industry media relations.
The Reuters report went on to quote analysts' doubts about Sony's strategy. Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, told the news-wire service, "All of this has raised concerns about whether there is something fundamentally wrong with Sony's manufacturing process, and it could further damage the Sony brand."
The report went on to cite the recent Sony laptop battery recall as another problem that is dogging the iconic electronics giant, whose PlayStation 2 is by far the most popular console on the market today. However, that market-share strength and the company's traditional resilience has even its skeptics harboring hope. "Sony has no doubt passed through the worst stage," said Akino. "But investors can't let their guard down."
Hot Stories
Newsmakers
-
Dragon Age: Origins Interview with Ray Muzyka
We chat with Ray Muzyka about some of the features in Dragon Age: Origins. Full Story
- Posted Jul 8, 2009 4:06 pm PT
-
Left 4 Dead 2 Doug Lombardi Interview
We talk to Doug Lombardi about Left 4 Dead 2 at a recent preview event in London. Full Story
- Posted Jul 3, 2009 4:42 pm PT
Featured Stories
-
Sony dismisses Activision threats, PS3 price cut rumors
Sony Corp. CEO Sir Howard Stringer brands third-party publisher's comments as "noise," SCEA CEO Jack Tretton says other consoles don't deliver the same value. Full Story
- Posted Jul 8, 2009 1:15 pm PT
- 1014 Comments
-
PS3 MGS4/Killzone 2 bundle now available
Best Buy begins offering rumored $400 retail configuration, which packs in 80GB console with nearly $90 of top-rated games. Full Story
- Posted Jul 7, 2009 11:19 am PT
- 488 Comments
-
Battlefield 1943 suffers server snafu
EA Dice's multiplayer-only downloadable shooter experiencing matchmaking technical difficulties after Xbox 360 launch this morning. Full Story
- Posted Jul 8, 2009 12:48 pm PT
- 155 Comments
-
Blizzard: Free-to-play WOW 'possible'
Lead designer Tom Chilton says the multiplatinum MMORPG champion could abolish monthly subscription plan by adopting microtransaction system. Full Story
- Posted Jul 7, 2009 12:43 pm PT
- 349 Comments
-
Square Enix retires Eidos publishing label
Japanese pub consolidates operations in Europe and NA, confirming some headcount reduction; British company's name will live on through dev studios. Full Story
- Posted Jul 7, 2009 11:15 am PT
- 146 Comments
Recent News
Site Blogs
-
Battlefield 1943 Review Coming Monday
Battlefield 1943, the latest entry in the venerable Battlefield series, arrived on the Xbox Live Marketplace and PlayStation Network this...




495 Comments