TECHNO
Sony faces challenge with new PlayStation
When Sony pulls back the curtain on the next-generation PlayStation
videogame console, the world will see how much the Japanese consumer
electronics titan has been paying attention.
Visitors gather at the Sony booth during the CP+, (CP plus)
photo imaging show in Yokohama on January 31, 2013. Around 96
companies are participating in the exhibition with some 70,000
visitors expected in the four-day-long event. AFP |
Sony could double-down on hardware to power even more realistic
graphics and rich game play than the impressive specifications of
PlayStation 3 consoles nearing the end of a life cycle started in 2006.
Or, Sony may step toward a vision outlined by chief executive Kazuo
Hirai by introducing an improved console as part of an ecosystem that
weaves the company's film, music, games and electronics together with
the trend toward getting home entertainment online.
“Sony needs a living room experience,” Forrester Research analyst
James McQuivey said while discussing expectations that a PlayStation 4
will be showcased at an event being hosted by Sony on February 20 in New
York City.
“They need more software, not more hardware.” The PlayStation 3
launched as an engineering triumph complete with Blu-ray high-definition
disk player capabilities only to see rival Microsoft score with Xbox 360
consoles for gaming as well as online films, music and more.
“Sony can't build a company on those few people who are hardcore
gamers, so they have to figure out how to bridge to the all-purpose
consumer who likes games, which is most of us,” McQuivey said.
“If they emphasize how this is really a television set-top box with
your favorite channels and Netflix, it will mean Sony has paid
attention.” Sony has remained mum, but that hasn't stopped talk of
hardware upgrades such as improved graphics and controllers with
touchpads, and chatter of Sony announcing its own cable-style service to
route film or music content to PlayStation consoles.
Sony needs to adapt to changing lifestyles while not alienating
videogame lovers devoted to its hardware.
Low-cost or free games on smartphones or tablet computers are
increasing the pressure on videogame companies to deliver experiences
worth players' time and money.
New generation consoles are typically priced in the $400 to $500
range, and blockbuster game titles hit the market at $60 each.
“Sony is under a lot of pressure,” said National Alliance Capital
Markets analyst Mike Hickey. “Gamers are desperate for innovation and
better games.” While Sony is tethered to “legacy” hardware, companies
such as Apple and Google are driving innovation with tablets,
smartphones, and ways to route Internet offerings to television sets,
according to Hickey.
While ramping up content and services for PlayStation, Sony also
needs to motivate people to upgrade from the current model.
“If Sony wants to win it, they need to show some killer games to get
people to go out and spend a lot of money for the core game experience,”
Hickey said.
He blamed a dearth of compelling titles as a reason for disappointing
sales of Nintendo's innovative Wii U consoles introduced late last year.
“The Wii U is a case study you can't ignore,” Hickey said. “Sony at
least has to nail it with the games; the core market can drive the mass
market.” Industry tracker NPD Group reported that just shy of $9 billion
was spent in the United States last year on purchasing or renting video
or computer games.
Another $5.92 billion was spent on game downloads, subscriptions, and
play on mobile games or at social networks, according to NPD.
French videogame star Ubisoft reported that sales surged 23 percent
overall in the final quarter of last year with hit installments of its
“Assassin's Creed” and “Far Cry” franchises while online revenue leapt
143 percent.
“People are gaming more now than they ever have,” McQuivey said.
“More minutes on more devices over more types of games from consoles to
mobile phones.” “Console gaming is going to face challenge because you
can pull out your tablet and have some pretty amazing gaming experiences
for $1.99 or free with ads,” he added.
Forrester predicts that while US households will turn increasingly to
accessing the Internet through videogame consoles and smart televisions,
games on smartphones and tables will “negatively impact” the console
market.
“Tablets are in every household and the computing power of tablets is
going up every year,” Hickey said. “Eventually, the tablet could very
well become the console.”
AFP
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