News, Platforms, PS4

Andrew House: “Sony Computer Entertainment Isn’t Allowed to Fail Anymore with PS4″

by on September 17, 2013 12:30 PM 55

While Sony has been fairly successful with PS3 and arguably with PS Vita (at least in Japan), the profit margins are still quite low, and Sony Computer Entertainment President Andrew House is very aware that the clock is ticking, and that a higher degree of success is necessary with the upcoming PS4, as he told the popular mainstream Japanese website Diamond Online.

Sony Computer Entertainment isn’t allowed to fail anymore with PS4, because the game business for Sony is a “Core” (business) that embodies a fusion of both hardware and software.

This comes after an investment fund which is also a major Sony shareholder suggested to spin off part of the entertainment business of the company, a request that was denied by the board of directors. House and Sony Computer Entertainment need to prove that it was the right decision.

Will they make it? House’s statement reminds me of a general putting his army with its back to the river to give the clear signal that this time around retreat is not an option.

Join the Discussion

  • HumbleGamer

    God, I hope that never happens (the company spinning off parts of its business). I say that not just for Sony, but for Nintendo and/or Microsoft. As bad as the fanboy wars are, competition between the big three gives all us gamers so much! I eagerly await the new console launches and what the future holds for us.

    • Kamille

      this generation’s competition gave us less than the Snes, PS1 and PS2 eras of overwhelming domination. Competition between brands only means that we’ll have to spread our budgets thinner but what’s important is having options. Like MS with the DRM lots of people jumped ship to Sony because there was the option not the competition.

      • ChadWardington

        Uh, you do realize that the SNES wasn’t a dominant console at all, right? There was monopoly in Japan, but everywhere else, the Genesis was actually more popular.

        • Therad

          Not True, SNES sold a total of 49M and genesis sold 29M. Genesis only “won” US and that was with a small margin.

          • DietSoap

            Modern numbers actually put the Genesis at a minimum of 37.4 million, with most estimates going a little over 40 million. The Genesis demolished the SNES in Europe and still managed a clean victory in North America as well.

            As far as the US, it had over 20 million confirmed by the New York Times, where as the SNES only had 23 million in the US, Canada, Mexico, and every South American country combined. If Nintendo didn’t lock down Final Fantasy and Dragon Quest to the SNES like it did, it probably would’ve lost worldwide as well.

  • Juhis815

    Oh boy, because I want that there is some kind of competition, but how well PS4 will be received when it’s released, will be seen in near future.

    • usrev

      unless there is a ridiculous issue, chances are it will be received very well.

  • SwappingFrom360toPS4

    It won’t happen, they won’t fail.. don’t worry.

    The absolute worst case scenario would be that Sony has to sell the PlayStation brand, and another company like Apple would adopt it, the PlayStation brand will remain no matter what. Just who owns it could change… like i said, absolute worst case scenario. But the PS4 is shaping up to be a massive success, this worst case scenario won’t happen.

    • Goodgrief

      Believe me when I tell you , you DO NOT want apple buying playatation. If you value console gaming that is.

      • SwappingFrom360toPS4

        lol, i know… i was just using them as an example.

    • jonam

      That will be the day I disown my childhood interest in the PS brand.

    • realmadpuppy

      oh god, not APPLE of all companies!!! that’s the last thing the brand needs, hipster adoption :P

      • SwappingFrom360toPS4

        =P

    • Sardorim

      Gawd no… If Apple bought Sony than Sony would be better off dead!

  • Robbyfishersora

    Stay strong sony I have faith in you.

  • jdp12

    Sony will stay, so will PlayStation.

    They’re doing fine now

  • Al_Zamora

    So is the inference that they failed with the PS3? Interesting?

  • Nintendo Fan 4 Lif3

    Well said Andrew House. Now make me proud to be a hardcore gamer with PS4!

  • tilt

    I’ll believe it when I see it. A bold declaration going forward but the market is a deep ocean full of unknowns.

    • realmadpuppy

      True, there are a lot of unknowns especially when dealing with the aggressive competitors in the tech and consumer electronics space. The smaller players from Korea have gotten their act together and are providing high quality products that rival Sony’s quality and provide a better price point. But, as for the gaming sector, I don’t think that Sony has really too much to worry about at this point in time, Microsoft, their main competitor in the gaming space has and keeps shooting itself in the feet over and over again and Nintendo is floating out “there” somewhere in the ether. They have a solid product that was put together with modified off the shelf PC parts, making it cheaper to produce than probably any console they have built before. The only “monkey wrench” I see is if Valve starts selling the Steam box and can make it a device that is easy to use and all the features rival the current consoles. But, Valve is entering some deep murky waters filled with the corpses of Sony’s previous competitors as well. It will be quite interesting to see what benefits all this competition will bring to us, the consumer.

      • tilt

        I completely forgot about the steambox. What’s the latest regarding that?

        • realmadpuppy

          Gabe Newell just gave a talk at this years Linuxcon, the article is on Ars technica’s website. He spoke of all the work Valve is doing to make Linux work well with games and to help developers with a good debugger. But, you know Gabe N. He likes to cross his t’s and dot his i’s before he makes a move, a very careful and smart business man.

  • Abort Mission

    I’m glad I own a PS3, Vita and soon to own PS4.

    Sony is doing something right out of the 3 hardware companies and they deserve success for bringing consistent innovation for years.

    The day PS dies (which I hope will never happen) is the day I renounce gaming.

    • Dominic Singh

      By innovation u mean copying EVERYTHING nintendo did for the past 10 years

      • Sardorim

        Actually Nintendo copied them. Sony had Motion controls in the works many years before Nintendo pulled the trigger on it.

      • Abort Mission

        Lmfao, a butthurt Nintendrone

  • X1ultimateGamer

    So Sony needs Ps4 to not fail otherwise bye bye Playstation and if you ps4 trolls think you won any console war or better specs , or the BS more power LOL

    Keep dreaming I assure I saw 300 people cancel their pre-orders and put all towards Xbox One I am not here trolling just sick of the smart asses that think because thy read a stupid journalist biased story is all real you love Ps4 so be it ( I have paid both of them off ) but don’t sit and judge Microsoft just simply STFU and stick to having faith in your PS4

    • usrev

      the ps3 with all it’s failings was profitable and a successful console, since the ps4 addressed every issue the ps3 had, MS didn’t have exclusives, and the ps4 preorders are already in record numbers I doubt sony will fail.

      lets be real, the ps3 outsold 360, the odds of the xbox one outselling ps4 are very slim especially since the ps4 isn’t going to have a failed launch due to price and availability.

      • http://sietch.net/ Stilgar

        I clearly remember Sony CEO saying that PS3 would never be profitable and I don’t know where you got the information that PS3 outsold the 360 when every possible statistic says otherwise. While it is possible that PS3 will outsell the 360 eventually it will be after the Next Gen is released. In addition Sony were selling the hardware at far greater loss than MS did. In fact some universities and the military were buying the PS3s just to get the processors because they could not find cheaper deal. The PS3 was a financial nightmare for Sony.

        • ryu

          Check out vgchartz.com. The PS3 has outsold the 360 by 0.7m.

          • http://sietch.net/ Stilgar

            Thanks. Quite interesting in fact. Not that it changes the overall statement that PS3 will be a net loss for Sony.

          • John Jairo

            Sony has been making money from PS3 since they released the PS3 Slim (Sony reported that long ago).

          • http://sietch.net/ Stilgar

            This doesn’t matter since they were losing a lot more in the beginning let alone the costs of R&D.

          • John Jairo

            Sony never makes its money from hardware but software licenses. Before you came in telling us that MS sell more (in US), it’s true that MS and Sony Software licenses are very different in nature. Neither one of them have openly told how they function.

            Even is PS3 ends making Sony loss money, the way it recovered from being the console that everyone and their dog hated to the one that has games like The Last of Us, Puppeteer or Beyond right now, when the other is practically dead, selling more consoles at the end, will have a deep inpact on the next gen, and that’s what Sony needed, to get back the confidence their public once has. And now they have it,

            No matter how much they loss, the way the thing appears to be now is that they will recover from PS3’s launch disaster big time.

          • Sardorim

            PS3 was a net loss for years, they’ve turned a profit on it years ago so… Yeah.

          • Goodgrief

            ” every possible statistic says otherwise”

            I’d really like a link to those statistics.

      • Sardorim

        The PS3 took longer to make a profit is the issue. They wont have that issue with the PS4 that is launching with better grounding than the XBone and they’re only selling it at a $60 loss per unit compared to the PS3 that bled money at launch.

    • WAZEER

      I saw 500 people cancel their Xbone pre-orders and put all towards PS4. Your argument is invalid ;)

      • andrew salvat

        yes month ago and now are back with the xbox

    • Sardorim

      I hate it when XBoners have to lie to try and make things look better for themselves because the reality of the situation is too much for them to bear.

  • heavenshitman1

    PS4 requiring larger success than PS3? Pretty much all trends and evidence suggests this gen will sell lower than last. Ppl have more options now, more companies are in the gaming business, the passing gen is still selling units and having games made for it, we’re in a poorer economy than 7 years ago.
    3DS has anhialated Vita, and the Wii was an uber success for what it was worth clearly outselling Sony and M’soft. Nintendo pulled a net profit even in the midst of one of their toughest times for their home console business and everyone thinks Nintendo has no chance of surviving the hardware business.

    • Giuseppe Nelva

      care to provide any of those “trends and evidence”?

      • heavenshitman1

        Well, no one is expecting PS2 sales again, 3DS is selling less than DS, Vita (though I dont follow it), i gather is selling lesser than PSP. I’ll bet even Windows is selling far slower as an OS mainly due to OS saturation of Apple systems and Android. Its a very dilute market now for all gaming. That’s why games now are choc full of DLC, devs are wrenching more money out of games. Cause devs are making less profits than they used to. Production values are too high. It all directly or indirectly spell non-encouraging hope for hardware manufacturers like Sony and their PS4. Sony’s selling assets even off what most consider to be a relatively successful PS3

    • Sardorim

      Unlike the PS3, the PS4 is only selling at a loss of like $60 instead of hundreds. So yeah… Beating the PS3 in success wont be hard for them.

      • heavenshitman1

        That’s one lower overhead yeah. Can assist in financial success. PS3 cost Sony billions in losses Im not sure if they ever fully recovered.
        But obviously Sonys online network is costing ‘em more to run now, so they’re charging for it. To any gamer its probably very justifyable value, but I doubt the average household moms and dads who bought their kids these systems will care to run these new subscriptions
        And one of my first points, PS3 is still selling, and games are still being made for it. Im sure the uptake on PS4 will be slower. Its marketed well. Low cost high end device. But when consumers come to the realisation of the brand new controllers of higher expense required, the higher average game prices vs the PS3 shelves , the brand new online subscription, the brand new Eyetoy if they care for that feature. Think we’ll find post launch it’ll have a hard time selling too quickly. Especially with M’soft aggressively on its backside every step of the way and Nintendo bringing the WiiU in it’s stride this christmas with the kind of games PS4 just wont have i.e. Wii Fit U and the new Wii Sports releases

  • Rafael Arbulu

    I still have like 50 games to play or replay on my PS3. I think I’ll wait and believe it when I see it.

    • Anon

      You realize according to the math if you bought all those 50 games for the full price of $60 it cost you $3,000? Now I really don’t think you did that so lets say you bought 20 games for $60 (not including special editions) that’s still $1,200 and we’ll say the other 30 games were bought used for $15 that’ll be $450. Total is $1650. Way more than your PS3 and the PS4 combined and way more than would be required for a decent gaming PC + games from Steam.

      • Rafael Arbulu

        I don’t think you understood me. Perhaps I should make it more clear: I meant I’ll hold off buying a PS4 (although I definitely will get one, period) until I see more of it actually running. Don’t get me wrong, I’m really excited about the things Sony brought to the table and I’ll definitely make use of it – or most of it. But what I’ve seen so far doesn’t appeal to me enough to make me ditch my PS3 definitely. Basically, I’ll keep both consoles.

        Luckily, I still have those 50 games I talked about earlier to keep me entertained while I don’t buy one. I’m not into “day 1″ stuff unless it’s reeeeally appealing. Otherwise, I’d prefer to see the console prove itself first.

  • xbox_gamer

    Finally. At least they admit that they failed but won’t again. Sucks being # 4, yes 4th, wii,360, ds/3ds. I still have an account but left ps3 when the hacking started

    • John Jairo

      Check out vgchartz.com. The PS3 has outsold the 360 by 0.8m. So, by your logic, XBox 360 is in #4, not PS3.

      • xbox_gamer

        Those are sent to stores and not sales. And in Usa 360 is the #1 console period

  • Tiberian_Fiend

    Looks like I’m never going to experience PS9’s electronic spores in 2078. R.I.P. Sony

  • Loghorn

    I hope that all of these Xbox drones realize that if Sony were to ever drop out of the gaming industry during PS4 (or even after the Wii U/Xbox One/PS4 generation), that their beloved Microsoft won’t be so nice to them.

    If Sony wasn’t around right now, all of those 180’s that Microsoft did with the Xbox One (DRM; Draconian policies, etc.) would be REAL and they would have no choice as MS can make whatever rules they want and you would have to follow them.

    We would be paying for everything, including game demos, & prices of Xbox live would go up, etc. It would’ve been a catastrophe.

    • Dominic Singh

      u fell if microsoft and nintendo were not there sony would not rape people the same way? All of those companies are the same and the only reason that we dont get rape is because of competition

      • Sardorim

        Sony dominated PS2 era and wasn’t doing even half the BS that M$ wanted to pull with the XBone.

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