Is Sony Blaming Internet For Poor PS3 Sales?

[Damaramu]

Saw this little tidbit on another forum I lurk at:


The PlayStation 3 has come under fire recently for its steep price. How is Sony corporate handling the criticism? Is Sony's corporate culture changing? We posed these timely questions to Dave Karraker, director of Sony Computer Entertainment America's corporate communications.

By Blake Snow


Sony's PR head talks turkey
However justified, Sony has been fiercely criticized for both its approach and management of the PlayStation 3 to this point. The company just posted its biggest quarterly loss in four years shortly after dealing with several public relation mishaps related to the PS3. Just listen to these colorful quotes by former PlayStation boss Ken Kutaragi when describing the PS3: "It's probably too cheap," "It's 4D," and "[We want] consumers to think... 'I will work more hours to buy one.'"

Not very endearing, huh? So who's in charge of helping gamers see beyond such rogue statements? None other than Sony's senior director of corporate communications, Dave Karraker. Karraker, who is just eight months on the job, has perhaps the toughest job in video games; helping consumers regard the PS3 with as much esteem as the record-setting PS2 despite the former's high price and somewhat slower start. We sit down with the man to ask how he's coping with being the public face of Sony.

GamePro: You've been doing game PR for a long time. What's changed over the last 10 years?

Dave Karraker: I actually cut my teeth in PR working at Crystal Dynamics...the big game at the time was a really great platformer called "Gex" for the 3DO Multiplayer. About the same time, I helped launch a graphical Windows interface called "Bob" for Microsoft, but let's not share that with anyone. The funny thing is, so many of the people I worked with back then are actually still around in some fashion, whether as journalists or on this side of the fence. The biggest change has got to be the advent of the Internet. It simply wasn't a factor back then. Now, it is arguably what I spend the majority of my time working on when it comes to speaking with media, and consumers, for that matter.

How long have you been working for Sony?

I've been with Sony since two months before the launch of PS3. It was certainly a crazy time to come on board, but any PR person will tell you that a launch of that scale is exactly what they dream working on. There are just so many opportunities and so many challenges that you can't help but learn something almost every minute of every day. That is what I really love about working at Sony -- every day there is something new to experience. Plus, I am a gamer, so you can't beat being able to play games whenever you want. Getting to see early builds of a game is really fantastic. I was playing the new Ratchet & Clank for PS3 yesterday and it is simply amazing. I have also been spending a lot of time with LittleBigPlanet lately, as well as Uncharted. These development teams are really doing some cool stuff with the system.

Noting the PS3's unique approach, how do you deal with negative consumer perceptions from a public relations perspective?

That's kind of a tough question to answer. I am pretty sure if you asked just about any real gamer out there if they would like to have a PS3, their answer would be a resounding "Yes!" I think a lot of this goes back to the proliferation of the Internet, where a very vocal minority can make a lot of noise and potentially alter perceptions of the masses, whether they are accurate or not. A lot of this, naturally, is driven by the media who seem focused on taking swipes at us lately, without taking in the full picture. It is funny, but I remember people bagging on the original PlayStation when it first came out, and look where it ended up. Our biggest job over here is to continue to push out information on PS3 and our other systems and remind people that there are things you can do on our platforms you simply can't do on our competitor's. It is all about explaining those points of differentiation, particularly the value over the lifetime of the system, that is key in selling any Sony product.

Are some of those [negative] perceptions justified, assuming you feel they exist? Why or why not?

A lot of the perceptions are not justified and seem fueled by people who don't have all the facts or have some kind of axe to grind. I think you would be hard-pressed to find anyone who wouldn't say PS3 is an amazing piece of technology. Yeah, the price of PS3 is higher than other system, but look at what you get - the Cell processor, Blu-ray Disc, built-in hard drive, HDMI 1080p, Wi-Fi, the SixAxis. That is a lot of truly cutting-edge technology in one box. It is funny how myopic people can be when a new system comes along. They seem to forget that launching a truly next-generation gaming platform is never easy and it never has been. I like to say it is like birth: "The actual labor may not be all the pretty, but the result is pretty darn amazing."

But, as a gamer, I like to concentrate on the gee whiz factor when something new launches. No matter who's platform it is, I look at what is truly new and exciting. I am confounded by people who say they are true gamers but all they do is look for the negatives in a system, or a company, or in the industry in general. Some media, in particular, are just too easily caught up in all the bashing. It feeds on itself, and to what end? How do you benefit the real gamer by bashing on something? These are very smart people who can see through most of the BS.

Sure, there were some perceptions on PS3 that were justified. For example, we didn't have nearly enough hardware at launch to meet consumer demand. That was difficult for all of us and contributed to a tough climate with press and analysts. That's behind us now, but a bit of that still lingers. Frankly, I have stopped talking to media about the launch and am now really just focused on the games.Source (yeah, yeah..I know it's Gamepro):
http://www.gamepro.com/news.cfm?article_id=112808

[Snapple]

Most of the people who reacted negatively to the PS3 didn't have an axe to grind at all. Most of us loved the PS2 and helped it win the last console generation.

The internet was in full force during the PS2 launch, and I don't remember them having a problem with the internet then. They didn't say, "A very vocal minority are saying positive things about the PS2 without all the facts and influencing the masses."

[RugalSizzler]

I am not reading this since I get too bored hearing retarded remarks from just another corperation that is fighting Zoolander.

Ken Kutaragi is and should be considered a hero to the peoples people and Sony and was already in good poportion when he was a child. Without him we would have never have the SNES that is still a contender when you think of the possiblities and view titles that took advantage of it and did even more.
Ken Kutaragi is almost like the Spartacus of Sony.

A PR manager or any PR Manager is just somebody that takes the fall for the company. Generally all corperation has a backup speech or reason for there blunders pre-written. The PR manager job is to go out there and relate to the problem when they have nothing to do with it to begin with.

Unless you mean Product Research person that is diffrent. This guy is not a gamer, Jak And Daxtor is not cutting edge gameplay and there is nothing new about the PS3. He is spouting tar tar to the interviewer.

Microsoft Bob is probably one of the most nicest thing I liked about GUI OSX. It was fun to explore around in a 3d enviorment just to get to paint or games.
What is more funny is that Bob just gave the GUI exprience that Vista is offering now but is in real time.

The internet is responsible for alot of things in marketing. Personally I miss the way things was sometimes............nah free donation bins for everybody. Basically the problem is they can't calculate sales for the internet.

[Anthony1]

You know, I can actually agree with a few of his takes. Sony definitely deserved their share orf criticism, but it's almost like talking shit about Sony became the "in" thing to do, during the back half of 06 and first half of 07. I think we are finally starting to get beyond that a bit now. Of course, the focus now is on the price, and the price is still way too freaking high. Sure, they made the most technologically advanced console, but they also made it cost $200 more than anybody wants to pay. The Cell is definitely a more powerfull CPU overall, but the GPU in the 360 is probably a wee bit better than the RSX. Maybe even more than a wee bit. The Cell will probably help the PS3 do some pretty amazing things with physics and A.I., but the problem is, you can't see physics and A.I. in screenshots.

[Richter Belmount]

The Ps3 is being critcized for many factors. 600 dollar price tag ,fanboy reaction to sonys and I quote '' taken features''(motion sense , guide button) , its lack of rumble , specs being compared to 360 etc etc.

Isnt it silly they are blaming free speech for their problems?

[Eteric Rice]

It was their responsibility to keep this from happening, but they got to full of themselves and are getting boned for it now. It happens, better luck next time, etc.

[Push Upstairs]

I blame the commies.

[jajaja]

I dont see where he blames the poor sales on internet? The question thats asked is how they deal with all the negative stuff around PS3 and he replies that alot of the negative things goes on on the internet, which is true. That goes for most things on the internet. People hide behind their screens and say so much shit they wouldnt say in real life, generally speaking. Maybe he indirectly means this have some negative effect on the sales, but he isnt directly saying that this is the only reason why the sales are poor, atleast not what i see from this interview (point me through it if i'm wrong).

The negative things around PS3 isnt only comments and personal opinions like "i dont like the (insert something here) so much because (insert reason here)". Its also much pointing-finger-and-laugh things like "OMG PS3 sold under 10k last week (insert laughing icon(s) here). PS3 is doomed!".

[tom]

Thats a bit weird, as ebay (that's on the internet, you know) actually helps selling PS3s

[sabre2922]

Most of the people who reacted negatively to the PS3 didn't have an axe to grind at all. Most of us loved the PS2 and helped it win the last console generation.

The internet was in full force during the PS2 launch, and I don't remember them having a problem with the internet then. They didn't say, "A very vocal minority are saying positive things about the PS2 without all the facts and influencing the masses."

AGREED

maybe WE are that "vocal minority"? naaa the PS3 is just too damn expensive!!!!!

[Lothars]

AGREED

maybe WE are that "vocal minority"? naaa the PS3 is just too damn expensive!!!!!

IT is to expensive and that's one of the major problems but there's alot of Negativity towards Sony and the PS3 that really shouldn't be that negative, It's like it's the cool thing to do is bash Sony

[djsquarewave]

The PS3 is an amazing piece of hardware for a price that's perfectly fine, considering the technical feats in its design and production. I just don't need or want that kind of hardware, so I'm not paying that price, fair as it may be.

There's a difference between "high-end" and "technophile" and I think it's pretty clear that Sony crossed that line with the PS3. That this happens to spark bad press when it's marketed as a mass-market item shouldn't surprise any company in this age of PR.

[sabre2922]

So its kooooooool to bash Sony? ok ok ok I wana play

"THE PS3 CAN BE A GOOD CONSOLE, IT WISHES TO BE, IT ONLY LACKS THE LIGHT TO SHOW IT THE WAY"

there there Sony all better now?

[roushimsx]

The real problem with the whole thing is that Sony only packed composite cables in with the PS3. Had they packed in Component or an HDMI cable in there, then perhaps it'd be a bit more leverage to help show people just WHY they need to get a bluray player. Until the current gen library bulks up (which always takes a year or so), that's the biggest selling factor that they can use, but they're doing a pretty piss poor job of exploiting it. They packed in a movie with the first 500k consoles, which was a pretty slick call...but they really need to bring the promotion back and keep it going.

The PS2 sold like hell because it was the cheapest DVD player on the market and The Matrix's DVD release at the time was fucking sexcellent. Showcase the wonders of bluray with a coupon redeemable at the store for a free copy of Kingdom of Heaven, Black Hawk Down, or some other similarly amazing BD. Hell, even The Devil Wears Prada was a surprisingly excellent transfer (plus it was an entertaining movie to boot!).

If Microsoft had bundled the HD-DVD player with the 360, they'd be in the same boat (getting shit on for price). Really, you do get quite a bit for your money with the PS3, but I don't envy the person who's job it is to try to convince people why they NEED a PS3. So many people still think that BD/HDDVD isn't that much of a step up from DVDs and don't see a reason to take the plunge. The problem is further compounded by having competing formats.

..so yea, sell people on why they need a BD player and show them how much cheaper a PS3 is than the competition. Then perhaps end the senseless price gouging on HDMI cables at B&M stores (I feel bad for anyone who shells out $100 for a 6ft HDMI cable thinking that it'll be better than one they can pick up for a few bucks on monoprice)...

[TurboGenesis]

So many people still think that BD/HDDVD isn't that much of a step up from DVDs and don't see a reason to take the plunge.

This is a major issue. Regular folks don't even know that their is a 'new' digital movie format and the few that do do not see any difference and cannot justify the cost to 'upgrade' and change over everything they already have. These people I am speak of are blue collar workers in a blue collar community.

Ask your neighbors which they prefer - BD or HDDVD, you are likely to hear "huh?" or maybe they are say hdDVD as in DVD.

As a games machine, PS3 is have high price tag.

(I am enjoy my PS3 but I am silly enought to pursue every console at launch) :embarrassed:

[Knoxximus]

This whole thing is laughable. Sony wants to blame the Wii60 boys?

SONY.....YOU GUYS CREATED THE WHOLE Wii60 MOVEMENT!:villagepeople:

[jajaja]

This whole thing is laughable. Sony wants to blame the Wii60 boys?

But do he blame the poor sales on this? I've read the answer a few times now and all i can see is that he answers the question about how Sony deals with the negative comments. I dont see any mention about poor sales and that this is the reason why.

[Knoxximus]

But do he blame the poor sales on this? I've read the answer a few times now and all i can see is that he answers the question about how Sony deals with the negative comments. I dont see any mention about poor sales and that this is the reason why.

Here is the line from the article:


I think a lot of this goes back to the proliferation of the Internet, where a very vocal minority can make a lot of noise and potentially alter perceptions of the masses, whether they are accurate or not.

That "potentially alter perceptions of the masses" part is his way of being subtle about it, rather than coming out and saying it. He's basically saying that if you go online, and everyone online is saying that the PS3 sucks, then it's very possible that some potential sales are lost when some of these easily swayed consumers have second thoughts.

[jajaja]

Ye, that might be a way to understand it and what he means. What he say is true tho, there are alot of negative stuff on the internet about the PS3. Today ALOT of people check news sites and forums and if they read something negative about a product they might belive it even if its not fully the truth whats being said, which might result in them not buying it because they heared the product sux.

So all the negative focus on PS3 on the internet might have a small effect on the sales, but of course, its very far from the main reason why it doesnt sell too good at the moment.

[Knoxximus]

Ye, that might be a way to understand it and what he means. What he say is true tho, there are alot of negative stuff on the internet about the PS3. Today ALOT of people check news sites and forums and if they read something negative about a product they might belive it even if its not fully the truth whats being said, which might result in them not buying it because they heared the product sux.

So all the negative focus on PS3 on the internet might have a small effect on the sales, but of course, its very far from the main reason why it doesnt sell too good at the moment.

Agreed. The point of what I said initially is that he can't seriously believe that the Wii60 movement is to blame. Sony did it to themselves....over promising and under delivering as usual.

[michaelthemovieman]

This guy from Sony worked on Microsoft Bob? Rover the dog, 4-eva!!!!

But seriously, it's like this; the PS3 needs games. It's a video game console, first and foremost, and it would seem Sony has forgotten that. What they really need to get people to buy the system is to deliver games that show off the system's power. They need a killer app game that will be so impressive that people will want to buy a PS3 just so they can play it, in the hopes that consumers will focus on the game and ignore the system's price. Although, considering how sluggish the sales are now, a price drop is still probably going to be needed to help Sony.

The only games that show off the PS3's power are Motorstorm, Resistance, and Virtua Fighter 5, but even they don't seem to be enough. They're surrounded by lackluster third party titles that suffer in comparison to their 360 counterparts (play the PS3 versions of Enchanted Arms, FEAR, Tony Hawk Project 8 and Spider-Man 3 if you don't believe me), and underwhelming first party titles (Genji 2 and Untold Legends), many of which highlight the difficulties some developers are having utilizing that power through their games (and the system's complex arcitecture certainly can't be helping matters).

In the case of Virtua Fighter 5, it also doesn't help that it's coming to 360 soon, and like the aforementioned games, it flies in the face of the system's supposed power, making players question Sony's pre-launch hype for the system (PS3 was supposed to be more powerful than the other systems, remember?).

Metal Gear Solid 4 still remains the system's main potential savior, but it also faces some potential roadblocks; mainly, a possible delay to 2008 and a possible 360 version.

So, in the long term, Sony needs games (including a couple of thrid party exclusives, which they should do anything to keep, particularly MGS4), and in the short term, they need to acknowledge the problems they've had and come up with a new strategy to ensure a thriving future for the PS3.

[roushimsx]

So, in the long term, Sony needs games (including a couple of thrid party exclusives, which they should do anything to keep, particularly MGS4), and in the short term, they need to acknowledge the problems they've had and come up with a new strategy to ensure a thriving future for the PS3.

They would have more games out now if they'd actually, you know, delivered dev kits in a timely manner to developers. I guess that would have been hard to do considering they took forever to finalize the design of the hardware... Meanwhile, everyone was getting their hands dirty with the 360 and getting the swing of developing on it.

Like I said above, launches are always fairly slow. They'll get the games they need in time (like towards the latter part of this year), but until then, they need to focus on what the system can do for people in RIGHT NOW. Highlight its capabilities as an affordable, quality blu-ray player, let people know about the upscaling and smoothing of PS1/PS2 games, and remind people that online play/matchmaking is free. Downplay the crappy PSN interface, the miserable load times and lack of features in Motorstorm, and the overall drought in quality software.

[Icarus Moonsight]

I'm not amazed Sony is blaming, yet another, straw-man for their faliures. Remember, the first step in recovery is to admit you have a problem. To do that they also need to realise that they are ultimately responcible for the fix they are in. If they keep up this denial BS then they are destined to fail by and on their own. Grow a set already!

If it truly is a marketing issue. How can Sony convince someone that supported them in the past to do so now? Honestly, some folks don't want a blu-ray player or own an HDtv set and a majority of their target consumers already have a PC and/or access to the internet... How do you sell a $600 piece of tech to someone like this when it brings nearly zilch to the table in terms of price vs function?

At this point, it's almost as if Sony is trying to sell ice to Inuits or water to drowned people. They painted themselves into a corner with a Spruce Goose that is impractical and nigh unmarketable.

[its_hey_ma]

The 1.8 update alone made me buy a ps3. The lack of games was stopping me, not the price. But now that I can upscale my ps2 games to my 1080p tv without them looking like large blocks (as they do on the ps2 hooked up to it), it was a perfect time for me to upgrade. The added bonus of blu-ray was a big plus and looks stellar on my new tv. Maybe one day I'll actually buy a ps3 game too

[skaar]

I think the 1080p function is one of the smartest things they've done since launch. The market is obsessed with it, and they now have a relatively cheap player than can upscale everything people wanted to.

I'll be getting one next month, I think. I returned mine a week after launch because PS2 games looked like freaking garbage on my set.

[veronica_marsfan]

I ain't rich.

I canna afford one of them rich people's PS3s.

Sony shoulda lowered the pricetag and note been so uppity!

[veronica_marsfan]

I'm not amazed Sony is blaming, yet another, straw-man for their faliures. Remember, the first step in recovery is to admit you have a problem. To do that they also need to realise that they are ultimately responcible for the fix they are in. If they keep up this denial BS, then they are destined to fail by and on their own. Grow a set already!

Reminds me of the fall of Nintendo circa 1997.

They blamed everybody except themselves.

[Icarus Moonsight]

My point exactly, implied at least. Look at Nintendo now. Sony could pull through all this but, it's up to them. People saying negative things on the internet about them didn't get them where they are... they themselves did. I don't recall Nintendo pointing fingers when Sony pulled their coup. They may have, after the SNES I didn't really keep up with them much so I'm not certain. Cart based media was too old tech for Nintendo, is Blu-Ray too new for Sony? I'm thinking it just might be.

The problem with a lower PS3 price point is obvious. At the current high rate they are bleeding money. Cutting it lower could be traumatic. I've heard scuttlebutt about a PS4 that is basicly a PS3 without a bunch of the expensive tech (namely Blu Laser DD and a few others) they may launch. Is that avenue even an option at this point? Will there be a DVD (perhaps even multi-disk) release of a title sitting alongside a Blu-Ray version? On paper it may make sense but, it could very easily confound consumers and alienate developers even more so than now. Very Sega-esque.

[MarioMania]

Why are you compering Ken to the SNES, Did he design the sound chip

[djsquarewave]

Why are you compering Ken to the SNES, Did he design the sound chip
Google (http://www.google.com/search?q=ken+kutaragi+snes+sound+chip)? Wikipedia (http://en.wikipedia.org/wiki/Ken_Kutaragi)? Do you know how to find information rather than simply asking for it?

In the late 1980s, he was watching his daughter with a Famicom and realized the potential that existed within video games. At that particular time, Sony's executives had very little interest in video games. Thus, when Nintendo expressed the need for a wavetable sound chip for its upcoming new 16 bit system, Kutaragi immediately accepted. Working in secret, he designed and built the chip, the SPC700. When they found out, Sony's executives were furious. Only with Sony CEO Norio Ohga's help was Kutaragi able to push the project to completion and keep his job.

[veronica_marsfan]

If Sony was able to sell the PS2 (with dvd player) at a $300 pricepoint.....

.....they ought to able to have a similar price point for the PS3. Say $400.

I've never seen why they "need" to sell it for twice as much as the PS2 sold for.



Meanwhile the HD-DVD consortium is selling players for $200...... they are seriously undercutting Sony's Bluray market.

[erehwon]

I blame Sony for the bad ps3 sales. They made an awesome system, but it seems that they forgot the main purpose of the system: to play games. I buy a game system to play games. A lot of extra features they added to the ps3 I won't likely use. I honestly don't have the money to buy a ps3 and I really have a hard time justifying spending that much even if I did.

The one thing I'd like to say about blu-ray is that it doesn't really interest me too much for movies. I'm waiting for blu-ray burners and cheap 50 GB disks. That'll help with backups, since I could image an entire partition to one of those.

To be honest though, I'm not going to let the price bother me that much. I got two strengths on my side: I'm patient and I'm a collector with a large ps2 backlog. I'm going to work on my backlog as I wait for a price drop.

[hbkprm]

it's the high price

[Raedon]

If the US had gotten free HDTV screens with our PS3's then it wouldn't have pissed us off when the UK got free TV's. Where's the free stuff Sony of America?!?

[Rob2600]

...Sony definitely deserved their share of criticism, but it's almost like talking shit about Sony became the "in" thing to do...

I recall the same thing happened to Nintendo with the Nintendo 64. I guess it Sony's turn now.

[Iron Draggon]

so who do they blame for the failure of the PSP's UMD format? I guess the innanets is to blame for all that too... and the old beta format of their VCR's also... oh wait... did we even have the innanets back then? I wasn't online...

Sony is notorious for inventing expensive new formats that are superior to the competing formats in every way, but ultimately they always fail because they cost way too much and they aren't that much better than the cheaper competing formats... so figure it out, Sony... the only one who really gets off on all your expensive proprietary bullshit is you... everyone else just laughs at you and all the idiots who are foolish enough to fall for all your scams...

am I just trying to be cool by jumping on the trend wagon to bash Sony? hell no... I'm pissed off at Microsoft for all but abandoning PC gamers in favor of the XBOX and the 360, and I'm pissed off at Nintendo for whoring Mario to death while they should be whoring the fuck out of Donkey Kong instead!

but Sony... really now... $600 for a new system when people are still talking about how the biggest reason for the failure of the 3DO was the fact that it launched with a $700 price tag, and $600 is only $100 less than that... Sony are retards... I don't care if it does cost them $200 more to manufacture a PS3 than they're asking for them, $600 is still way too fucking much for a video game system that isn't even holographic and doesn't include a VR headset as well... so when they can produce something like Princess Leia appearing to stand right in front of me where I can walk around her and examine her from all sides while she talks to me as R2D2 beams her into my bedroom, then I'll gladly pay whatever they want for the priviledge, but right now all they're doing is fucking themselves by trying to fuck everyone else over with BS...

[kjmontana]

I remember how they trashed the Dreamcast so everyone would wait for their "100x more powerful" PS2. They were WAY off then(and now, it seems). But many did wait because of this "misinformation". Now, they aren't getting away with it, and are actually hurt by that same type of "misinformation". Well, I owned SEVERAL of both iterations Sony offered up before, because they were unreliable(much like Xbox 360)not because I loved them(Dreamcast). But in my case I was only able to get them to fix 2 PS2's(out of 4 that broke)and none of my PS1's(out of 3 that were broke) were ever repaired. At least Microsoft is extending their product replacement/repair to a whopping 3-year warranty. I still play my Dreamcast and wonder: "what if...Sony DIDN'T convince so many to wait for PS2". Would Dreamcast 2 and 3 be sitting in my gameroom now? Enough! I will now file to marry my precious DC, as she really understands me and my needs(beyond psychotherapy). That's TOO much information, mis or not. Sorry! I need to bathe now.