Japanese Retailers cutting ps3 system prices

[7th lutz]

http://www.411mania.com/games/news/49988/[PS3]-Japanese-Retailers-Cutting-PS3-Price.htm

Reports out of Japan have it that several stores are reducing the price of the PS3 by as much as 20% in hopes of drumming up some interest in the product. Word is that last week was the worst week of sales yet for the PS3 in Japan. Meanwhile, the Wii remains in heavy demand.

Don't expect any official price cut from Sony though. Speaking to Game Informer, SCEA boss Jack Tretton said, "No... There's a heck of a lot more under the hood and it costs us more money to make it."

I found it interesting to the fact the fact the basic cost $420 and the Premium costs $510 in united States dollars and that is cheaper then in the United States and that is before the retailers cutting the prices down along with the fact people claim graphics sells systems with the ps 3 having the best graphics.

If this isn't going to be a short term problem, then this could turn into what sega faced with the sega genesis in Japan.

[XYXZYZ]

If this isn't going to be a short term problem, then this could turn into what sega faced with the sega genesis in Japan.

Don't mean to take it off topic, but what happened to the Megadrive in Japan?

[jajaja]

I think its important to mention that every system (except GBA) in Japan last week sold less than usual, not just PS3.

http://www.joystiq.com/2007/01/19/japanese-hardware-sales-8-jan-14-jan-post-holiday-blues-edit/

Its understandable that they cut the prices. One of the best games for PS3 so far is Resistance which is a FPS. FPS arent popular in Japan so what games are left and popular? Motorstom maybe, but thats pretty much it.

[Lemmi_Is_God]

maybe its just the christmas bills are hitting people now, so no money for fun things?

[Fighter17]

Don't mean to take it off topic, but what happened to the Megadrive in Japan?

The PC Engine (TG-16 in the states) being really popular and the hype of the Super Famicom made the Megadrive not popular. Also I guess poor marketing hurt the Megadrive in Japan as well.

How bad the sales of the Megadrive in Japan? Well Sega of America were making more money on the system than the Japanese.

[DeputyMoniker]

The PC Engine (TG-16 in the states) being really popular and the hype of the Super Famicom made the Megadrive not popular. Also I guess poor marketing hurt the Megadrive in Japan as well.

How bad the sales of the Megadrive in Japan? Well Sega of America were making more money on the system than the Japanese.

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread. :(

[TurboGenesis]

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread. :(

Yes, I believe he is saying the the Genesis was in fact more popular in the USA than the Mega Drive in Japan. The Mega Drive was a 3rd place system trailing the PC Engine and the Super Famicom.

In the USA the standings were different with the Genesis and the SNES battling for the top spot while the Turbo Grafx/Duo was fighting just to stay in the show.

My question is how does the PS3 price retailer price reduction reflect what happened to the Mega Drive? Did the Mega Drive go through a similar cycle early in its life?

[Canadian Psycho]

My question is how does the PS3 price retailer price reduction reflect what happened to the Mega Drive? Did the Mega Drive go through a similar cycle early in its life?
I don't know about the MD, but I seem to recall reading in some old EGMs (circa 1997) that the Nintendo 64 went through a similar phase early in its Japanese lifespan, but I might be wrong.

[Fighter17]

Are you saying the Genesis was more popular in the USA than the MegaDrive was in Japan? I'm missing the point. The Genesis was a very successful system. Your statement makes it sound like the Genesis was doing poorly but still better than the MegaDrive...if I'm reading your statement correctly.

EDIT: Sorry for helping derail your thread. :(

Yeah, the Genesis was more popular in the US than Japan.

[XYXZYZ]

SO... Retailers are cutting PS3 prices in Japan, eh? Do you think it will actually drum up interest in the PS3 as planned? (I started derailing this thread, so I'll get it back on track)

[jcalder8]

SO... Retailers are cutting PS3 prices in Japan, eh? Do you think it will actually drum up interest in the PS3 as planned? (I started derailing this thread, so I'll get it back on track)
Nope not a chance, I read earlier today that Gears of War is selling out in Japan, when a shooter is selling out and they can't sell the PS3, on sale none the less, you know Sony is in trouble!

[jajaja]

Speaking of price cuts, there are no plans (from Sony that is) to cut the price before 2008.

http://www.engadget.com/2007/01/23/no-ps2-like-price-cuts-for-the-ps3-sez-sony/

Makes sense tho, if they went out and said they would cut the price in 6 months, more people would wait. Also it is much more expencive to produce the PS3, like $800 just for the parts and then the developmentcosts and manufacturing costs arent calculated in.

This doesnt mean that there wont be price cuts at all. As this topic is actually about, japanese retailers have already dropped the price with 20% and arent there some PS2 trade-in deals as well?

[veronica_marsfan]

Japan have it that several stores are reducing the price of the PS3 by as much as 20%


Wouldn't surprise me to walk into Target or Walmart & see "20% off" during the month of February. Stores are not going to just let these PS3 Boxes clutter-up their inventory.

[jajaja]

Well.. Virtua Fighter 5 is out in about 2 weeks. Lets see if that changes anything ;)

[c0ldb33r]

Well.. Virtua Fighter 5 is out in about 2 weeks. Lets see if that changes anything ;)
Except that its for 360 too :D

[Slate]

Wouldn't surprise me to walk into Target or Walmart & see "20% off" during the month of February. Stores are not going to just let these PS3 Boxes clutter-up their inventory.

They'd send them back to sony before doing that.

[agbulls]

They'd send them back to sony before doing that.

That is just not going to happen. You really think major retailers are going to send back Playstations? They'll start moving---the price is extremely prohibitive but it WILL happen. Slow and steady wins the race...

[jajaja]

Except that its for 360 too :D

Well.. maybe, but its still ½ year to go for 360. 360 is already selling fairly good tho.

[Bronty-2]

Nope not a chance, I read earlier today that Gears of War is selling out in Japan, when a shooter is selling out and they can't sell the PS3, on sale none the less, you know Sony is in trouble!

And how many copies of gears of war do you think were even on Japanese retail shelves? Ten? It's not hard to sell out when you don't order much. And why would you order much when no one in the country owns a 360?

[Bronty-2]

That is just not going to happen. You really think major retailers are going to send back Playstations? They'll start moving---the price is extremely prohibitive but it WILL happen. Slow and steady wins the race...

agreed that I doubt they will send them back but they could reduce future orders, anyway.

As for 20% off sales to clear up inventory, not a freaking chance. The retailers don't to my knowledge even make 20% on the hardware so they'd be taking a loss to do that. Not going to happen. Most products have higher margins so they can cut into the selling price if need be to reduce inventory, but with the low margins on hardware, I'm sure they would indeed rather send them back than take a loss.

Why lose money when you can just get a refund instead? (assuming they can return to manufacturer).

[MarioMania]

Virtua Fighter 5 is coming out for the PS3 both in the US & Japan, Virtua Fighter 5 will not be released on the 360 in Japan..

[jajaja]

Virtua Fighter 5 is coming out for the PS3 both in the US & Japan, Virtua Fighter 5 will not be released on the 360 in Japan..

That changes some stuff. Maybe they make VF5 for 360 regionfree so ppl in Japan kan import.

[RCS_Techie]

yeah they are having problems selling the grill out here. Not to mention the ones that do sell end up in the used section very fast because so many japanese don't want them and end up trading them in fast.

[veronica_marsfan]

As for 20% off sales to clear up inventory, not a freaking chance. Why lose money when you can just get a refund instead? (assuming they can return to manufacturer).


Having worked retail, it's often cheaper to Mark down an item Wholesale price then to ship it back. (That's how I obtained my 100% complete Disney collection; my clothing store got frustrated with the lack of sales & marked the videos down to 5 dollars each.)

Walmart/Target/etcetera might wait until Christmas, but if they've got 5 rooms filled with non-moving PS3s, space that could be better used to hold Elmo dolls or Spiderman slippers, they will advertise a sale.

As happened with Atari and Colecovision consoles in 1984.




PS3s cost too much to lower the price

If Sony were smart, they would lower the price to $350 to beat the X360. Sell a couple tens of millions of PS3s and recover their ~$200 per unit losses through Games and Bluray disc sales at $60 a pop.

Sony MUST win this battle.

If they lose, not only do they lose the game market but also the dominance in HDTV discs. They will lose *billions* in potential Bluray profit from 2007 to 2030... that makes a few dollars loss on the PS3's Sale Price look tiny & insignifigant.
:bday:

[jajaja]

Lowering the price will only help a bit. The popular games must be avalible for big sales to accure.

[Melf]

If Sony were smart, they would lower the price to $350 to beat the X360. Sell a couple tens of millions of PS3s and recover their ~$200 per unit losses through Games and Bluray disc sales at $60 a pop.

If Sony did this they would take a bath on the console and probably kill it off. It's already losing them almost $200 per console. If they drop the price, they won't make squat. Add to that the fact that Blu-Ray hasn't really taken off yet and there aren't enough PS3s in homes yet to make all that money back on games, and Sony is screwed with the launch price for a good, long while.

[veronica_marsfan]

If Sony lost money on PS3...

It does not matter. They'll still make plenty of money off the $60 games and Bluray movies. "They won't make squat" does not make sense when you look at the huge profit Sony can make from the software (times two: games & movies). Sony will be bathing in Software/Bluray license fees & raking in money faster than they can count it.

$5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses.
Lowering the price will only help a bit. The popular games must be avalible for big sales to accure.
Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.

Only thing holding it back, now, is the insane pricetag.
Drop it to $350 and it will sell as rapidly as the PS1/2 did.
:dance:

[bangtango]

That ought to shrink their little sphincters. But it won't.

It is not like slow sales or a price drop would teach them humility, anyway. The company hasn't shown a sign of humility through 12 years in the video game console market so why start now?

[jajaja]

Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.

True, but why would anyone pay $350 for a PS3 to play PSX and PS2 games when you can get a PSX for like $10 and a PS2 for $50? It still needs the A+ titles.

[DeputyMoniker]

If Sony lost money on PS3...

It does not matter. They'll still make plenty of money off the $60 games and Bluray movies. "They won't make squat" does not make sense when you look at the huge profit Sony can make from the software (times two: games & movies). Sony will be bathing in Software/Bluray license fees & raking in money faster than they can count it.

$5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses.
Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.

Only thing holding it back, now, is the insane pricetag.
Drop it to $350 and it will sell as rapidly as the PS1/2 did.



You're just assuming. Gather the facts and base your theory on real numbers.

[bangtango]

If Sony lost money on PS3...

It does not matter. They'll still make plenty of money off the $60 games and Bluray movies. "They won't make squat" does not make sense when you look at the huge profit Sony can make from the software (times two: games & movies). Sony will be bathing in Software/Bluray license fees & raking in money faster than they can count it.

$5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses.
Is there any doubt that the PS3, with its huge backlog of PS1/2 classics (and people's personal libraries), would not sell. Of course it would! People equate PS3 with their love of the old PS1/2 consoles.

Only thing holding it back, now, is the insane pricetag.
Drop it to $350 and it will sell as rapidly as the PS1/2 did.
:dance:

There are plenty of consoles throughout history that have failed to sell at a more "reasonable" price than the PS3. You need the friggin' games that are capable of selling systems and you need them coming out regularly. Simple as that.

[AMG]

http://www.411mania.com/games/news/49988/[PS3]-Japanese-Retailers-Cutting-PS3-Price.htm

Reports out of Japan have it that several stores are reducing the price of the PS3 by as much as 20% in hopes of drumming up some interest in the product. Word is that last week was the worst week of sales yet for the PS3 in Japan. Meanwhile, the Wii remains in heavy demand.




The console pretty much just launched over there and they're already cutting prices? I recall them doing the same for the X360 not too long after it's launch to "move units faster." Talk about an impatient country.

[Bronty-2]

If Sony did this they would take a bath on the console and probably kill it off. It's already losing them almost $200 per console. If they drop the price, they won't make squat. Add to that the fact that Blu-Ray hasn't really taken off yet and there aren't enough PS3s in homes yet to make all that money back on games, and Sony is screwed with the launch price for a good, long while.

I think you're right on the money. I read somewhere (wish I could recall where) that sony needs to sell 17 games per ps3 to break even. 17 freaking games on each system sold before they turn a profit. They are totally stuck. And those numbers do seem reasonable. If they are losing a couple hundred a console and make say $10 a game on software, they do need to clear those kinds of #s... which means if they drop the price any further they are royally screwed as they'll never sell enough games to make it up. I think they are just trying to break even in order to get the blu ray machines in people's homes to win that format war.... but this whole system is starting to turn into a huge debacle IMO. I can't see it getting too much support at these price levels.

[veronica_marsfan]

You're just assuming. Gather the facts and base your theory on real numbers.

art of being a businessman is NOT having the facts, and yet still taking the risk. In 2001, did Steve Jobs have any "facts" to back-up his belief that Ipod would be the next biggest seller for Apple?

Nope.

But he went through with the product anyway. $5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses by lowering it to $350.

[FAN8228]

Lowering the price will only help a bit. The popular games must be avalible for big sales to accure.

good point. I think right now sales might be lagging due to the lack of titles for the system. As more games start coming out for it I think we will see a boost in the sales numbers.

[neuropolitique]

art of being a businessman is NOT having the facts, and yet still taking the risk. In 2001, did Steve Jobs have any "facts" to back-up his belief that Ipod would be the next biggest seller for Apple?

Nope.

But he went through with the product anyway. $5 per disc times 1 billion discs sold between now & 2015 == $5 billion!!! That will more than cover any PS3 losses by lowering it to $350.

Sorry this post is not on topic, but this post is straight up wrong. Businesses always have plenty of facts before releasing a product, even new porducts. There is market research, R&D, focus groups, etc., etc.. Companies will never just develop a product based on whims. That is a sure fire way to failure.

Back on topic: I may have missed it, but, is this a real price cut, or is it a deal like the 360 had in Japan at first? That being, subscribe to our junk, get $$ off.

[Cryomancer]

The console pretty much just launched over there and they're already cutting prices? I recall them doing the same for the X360 not too long after it's launch to "move units faster." Talk about an impatient country.

I'm pretty sure Japan is used to things either selling out fast or not at all. Japanese people seem to like to buy 3451583015631676 copies of the same popular games (ie dragon quest, pokemon, brain age) and consoles (ie the DS). Something just sitting there is fairly clear that no one cares. You gotta remember that "most" of the japanese game sales take place in what, three cities? If you have however many million people living in tokyo now and nobody's buying the thing, it's not like there's a lot of hope that it's gonna sell anywhere else in the country either.

[veronica_marsfan]

In 2001, did Steve Jobs have any "facts" to back-up his belief that Ipod would be the next biggest seller for Apple?

Nope.

But he went through with the product anyway. Became a major hit such that Apple now cntrols 85% of the MP3 market.
Sorry this post is not on topic, but this post is straight up wrong. Businesses always have plenty of facts before releasing a product, even new porducts.

The story I related is 100% true. I just watched a documentary about the Development of the Ipod, and how no one knew for sure if it would sell or flop.

[njiska]

The story I related is 100% true. I just watched a documentary about the Development of the Ipod, and how no one knew for sure if it would sell or flop.

There's a difference between not knowing how your product will preform, and making a decision without thinking. Apple saw the potential for the mark and took a stab at it.

Now as for your baseless theory. You're assuming that in 8 years + a few months sony will make 5 billion dollars on Blur-ray and PS3. Well that's great, but five billion in 8 years is hardly impressive. Factor in the cost of employees, disc production and developmentment on their own titles, the huge loss on each PS3, new consoles launching in 2010, the instability of the HD market, the rise in digital distribution, R&D costs for the next system which by your claim would be 2015, the rather lackluster preformance of other Sony divisions, stock price troubles and lawsuits (they will happen) and that 5 billion quickly get's cut down to pathetic.

Hell your arguement is starting to sound more like the ones i have with RCM, only he generally has at least one leg to stand on. You're theory is based on nothing but you're on beleives, fails to take any business logic into account and generally seems like an abysmal business decision.

Oh and let's not forget the shareholders, do you think they'd approve of losign that much money without an immediate turnaround? The action would most likely be seen as an act of desperation and that would hurt Sony's stock price and that will do them no good.

[rbudrick]

The retailers don't to my knowledge even make 20% on the hardware so they'd be taking a loss to do that

They make about 2% on consoles since, well, forever.

System Cost Price Margin
Playstation 2 Console Silver $126.56 $129.95 2.61 %
PlayStation 2 Compact Silver $125.00 $129.95 3.81 %
Nintendo DS Lite all colors $128.25 $149.95 14.47%
Playstation PSP Core $197.43 $199.95 1.26 %
Xbox 360 Core $297.68 $299.88 0.76 %
Xbox 360 Platinum $392.80 $399.88 1.79 %

Those costs are within 1.25%

You can see why resellers love the DS.

-Rob

[someguy]

They make about 2% on consoles since, well, forever.

System Cost Price Margin
Playstation 2 Console Silver $126.56 $129.95 2.61 %
PlayStation 2 Compact Silver $125.00 $129.95 3.81 %
Nintendo DS Lite all colors $128.25 $149.95 14.47%
Playstation PSP Core $197.43 $199.95 1.26 %
Xbox 360 Core $297.68 $299.88 0.76 %
Xbox 360 Platinum $392.80 $399.88 1.79 %

Those costs are within 1.25%

You can see why resellers love the DS.

-Rob

Sorry if this steers the thread off topic, but I'd like to compare the figures from my distributors to those listed above. Here's what I can get:

Playstation 2: Slim: $125.00 $129.99
Playstation 2: Fat: $146.00 $149.99
Gamecube: $98.00 $99.99
Xbox: $145.00 $149.99
PSP Core: $195.00 $199.99
DS Lite: $126.50 $129.99
Xbox 360 Core: $295.00 $299.99
Xbox 360 Premium $388.00 $399.99
Playstation 3 20gb $488.00 $499.99
Playstation 3 60gb $585.00 $599.99
Wii $240.50 $249.99

Each retailer is given different pricing, so another store might have slightly different numbers, based on the distributor they use and the quantity they sell, but you get the basic idea. We don't make much. Most people don't understand the little money retailers make on video game hardware/software. If you keep excess inventory you're screwed. We do better on the accessories though. Sorry, You can now resume the PS3 bashing.

[veronica_marsfan]

Apple saw the potential for the MP3 marker and took a stab at it [with the Ipod].

Exactly. Which is what Sony should be doing with the Ps3, unless they want to be in 3rd place (in games) and lose the Bluray format (in movies) to HD-DVD. Sony should follow Apple's example.

[njiska]

Exactly. Which is what Sony should be doing with the Ps3, unless they want to be in 3rd place (in games) and lose the Bluray format (in movies) to HD-DVD. Sony should follow Apple's example.

First of all thank you for quoting me out of context and removing everything i wrote discrediting your ideas. That's really respectful of you.

You don't seem to grapse this situation. Seeing a market and taken a chance is what Sony did by creating Blu-Ray, but taking a risk like selling the PS3 at a $400 loss per unit is just insane. It's nice to be making 5 billion 8 years down the road, but don't forget you have to pay for this shit up front. You can't manufacture on a promise. They're already taking a big loss upfront and they don't have invester confidence. Taking a bigger loss will cost you confidence with investors and developers which will inter keep you from returning a profit.

All the same this argument is insane. If you really think this is a logically idea make a good argument. Don't just say, "Well Apple did it." Especially when apple didn't.

[Bronty-2]

Amen. Selling them at 350 now is not going to happen. Why not just give them away them and "make it up" on movie and games sales? It doesn't work like that. You'd have to sell more games and movies than you possibly could to offset a $350 price. They have to sell a shitload of games and movies already on the back end just to make up their CURRENT hardware losses.

I am sure there is nothing Sony would rather do right now than drop the price. Do you really think they want ps3's sitting on the shelf? They want them moved both to turn cash and to create excitement at retail. The fact that they can already be found at retail in January is NOT GOOD. That they won't drop the price just tells you that they are good and stuck with the current situation.

[veronica_marsfan]

You don't seem to grapse this situation. Seeing a market and taken a chance is what Sony did by creating Blu-Ray, but taking a risk like selling the PS3 at a $400 loss per unit is just insane. It's nice to be making 5 billion 8 years down the road, but don't forget you have to pay for this shit up front. (1) Just curious - Where did you get the $400 loss? $600 marked-down to $350 is only 250 loss.



(2) That 250-per-unit loss can be made-up from multi-million sales of Final Fantasy 13/14/15 and other blockbusters. AND bluray movie/tv sales. (Classic model: Give away the shaver for only $20..... make the money on the sale of accessories.) Sony could survive using the same model as Shaver manufacturers & make money off the games/movies/tv shows' licenses.

(3) I didn't quote your argument (last time), not because I was ignoring it, but because I considered it invalid. Example: Microsoft sold the Xbox at a ~$200 per unit loss for 4 years, and they lost millions of dollars during the process. Why? To gain market share. And it worked splendidly. According to your argument, Microsoft was stupid to follow that plan. (puzzled look)



(4) What Sony is doing now, selling the PS3 at a pricepoint too high for the average consumer to afford, is equivalent to a Sprinter tying 100 pounds around his torso. You only do that if you want to fall behind the competition & ultimately lose the race.

.

[njiska]

(1) Just curious - Where did you get the $400 loss? $600 marked-down to $350 is only 250 loss.

That $250 In addition to the $200 loss Sony is already taking it. That makes the total lose per unit $450, which is much worse.


(2) That 250-per-unit loss can be made-up from multi-million sales of Final Fantasy 13/14/15 and other blockbusters. AND bluray movie/tv sales. (Classic model: Give away the shaver for only $20..... make the money on the sale of accessories.) Sony could survive using the same model as Shaver manufacturers & make money off the games/movies/tv shows' licenses.

Ok so you said about $5 pre disc right? So those FF13/14/15 sales amount to making back $15 per console. That leaves us with $435 lost per console still.

Blu-ray sales will not be making Sony $5 per disc, but even if they did 40 Blu Ray movies only accounts to $200. That's still 245 lost. Keep in mind they make no money of of second hand purchases of movies.

Also if any of those disc are Sony made their money has to go back to covering development and distribution costs first. Only profit on top of all that can be applied towards recovery of the inital loss.


(3) I didn't quote your argument (last time), not because I was ignoring it, but because I considered it invalid. Example: Microsoft sold the Xbox at a ~$200 per unit loss for 4 years, and they lost millions of dollars during the process. Why? To gain market share. And it worked splendidly.

If you don't consider it valid then disprove it. DO NOT CUT IT OUT AND MAKE IT LOOK LIKE I'M AGREEING WITH YOU. Taking my comments out of context is something that pisses me off more then nearly anything else. Seriously don't do it again.

As for the Xbox being sold at a major loss there's a few things you need to consider.

1. The loss was planed from the start. It was a strategy, it was not a response to lackluster sales.
2. Microsoft has a major bankroll and a strong company profit. Sony does not.
3. It did not work splendely. The Xbox never made money and the Xbox 360 is barely making money. Though popular the Home Entertainment Division is still in the red.


(4) What Sony is doing now, selling the PS3 at a pricepoint too high for the average consumer to afford, is equivalent to a Sprinter tying 100 pounds around his torso. You only do that if you want to fall behind the competition & ultimately lose the race.

IMHO if the PS3 doesn't drop in price soon.
It will be another 3DO-type console (flopped).

Do you know why the PS3 is as pricy as it is? It's because Sony can't justify losing anymore then they already are. You think they want it that expensive? No, but that's the price they pay for letting Ken Kutaragi run the show.