Will This Be Sony’s Last Generation?

2 min

The PS3 can last a while because of its efficient and powerful design—I wouldn’t be surprised if they skip next generation entirely. But there’s something ominous about the way Sony is handling their systems and games as we approach the holiday season—and laying off half of their PR team simply adds fuel to the fire. With less money put into PR and holiday marketing, along with a lack of news that gamers want to hear, Sony could be at the top of a steep hill down. This might be Sony’s last generation in the games market.

It seems like Sony is going the way of the Kodak camera. Although they initially outclassed many of the other systems on the market by offering incredible hardware, the XBOX 360 offered a significant leap in graphics that put it ahead of Nintendo and arguably on par with the PS3. From this new vantage point, Microsoft cut into Sony’s niche of high-quality, high-priced, exclusive games…while lowering the entrance fee. Even if Sony’s hardware is a better bargain for the price, because it barely outperforms the gaming capabilities of the XBOX 360, it can’t compete with the XBOX 360’s price.

The lackluster sales of all of their current-generation systems may have pushed them into a rut that discourages their continued involvement in the games industry. Sony hasn’t always focused on gaming: cameras, HD televisions, and those archaic things called ‘CD players’ used to be their main industry. Those industries were pretty solid, and excluding the bit about CD players, they had a solid company model. In the past few years the games industry has grown, but perhaps not as much as Sony had anticipated. It wouldn’t be unreasonable of them to choose now to dip out of the industry entirely.

It would explain why they insist on keeping the price of their systems high and why they have not revealed more details about the sequel to their current console. It would explain why they are emphasizing PS3 support for four or five years from now—giving the system a whopping 10 year lifespan. It would explain why they laid off half of their PR department leading up to the holiday season, essentially giving the Wii U a holiday victory. If they treat the PS3 like any other product of theirs—high quality, high price, but not necessarily high-selling—it would explain why they are ignoring the market.

Sony wouldn’t need to catch up to its competitors if it treated the PS3 like a small product and ignored the ventures of Microsoft and Nintendo with next generation consoles and technology. The PS3 could just stay as it is for some time before its users finally put it away or sell it like an old stereo set. To them, it doesn’t need to be replaced–it just needs to find a way into consumers’ homes and stay there. With the PS3’s current technology, nothing quite outclasses it. The Wii U is impressive, but barely beats it as far as specifications are concerned. The XBOX performs the same way, but the expensive PS3 ironically has more value. I wouldn’t be surprised if Sony sits out next generation, or even quits the chase entirely to work in other areas of the technology field.

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  1. Here we go again another sony is doomed article, seriously if only I got
    nickel for every article like this I would have retired in Hawaii years
    ago. Anyone who thinks Sony is leaving the gaming industry anytime soon needs to get their head checked.

  2. -_- … When will this end. You media people just ruin so many aspects, mentality, and views of so many readers by posting crap like this just because some A site decided to post something along the lines of Sony’s current future, so now this is a fact and all shall comment on it without re-searching or even let alone, express a solid honest point or opinion.

    Its like Sheep spawning behind sheep #100 on an on-going cliff dive …

    1. This isn’t journalism, this is something that Sara should had put on her facebook status and not bothered strangers with.

      Sara, stick to poetry!

  3. This is sony’s second most profitable division. Why would they get rid of it. If anything they should get rid of Tv’s, that is a black hole foe sony.

    1. You can’t blame them on the TV’s that something that’s out of there control, since the yen is so much stronger than the won, that’s why Samsung and LG TV’s are so much cheaper. But Sony does need to streamline it TV line of products and invest in some R&D to find a way to make them cheaper so they can avoid that.

  4. To be honest, the new ps3 is about $100 to much. It is way over priced and to any thinking customer it’s is an obvious cash grab. The new ps3 is a blatant signal to the gamer that sony is desperate to grab cash for it’s ailing business

    Basically.. Sony is DEAD.

    Just check out their financial records for the last few years. This year is only worse, I feel. Sony are spiraling downwards, and it’s getting faster.

    I think unless sony change their whole company culture and
    perform a real restructure from the top downwards there’s no coming back
    for them. And I don’t see sony making any of those radical changes to
    it’s culture or structure. I just see it doing the blunt dumb ass things
    that corporations do to make the quarterly report look good for their
    shareholders…. sack a lot of people at the bottom… reduce cost on
    wages. It’s just not going to fix anything.

    Sony are still living in the late 90’s and mid-2000’s, believing that they’re number 1 when they’re number 3. They’re constantly deluding themselves, their ego is so swollen from those days that they didn’t notice how the market place was shifting beneath their feet. They stood in their high tower and arrogantly decided to dictate to to the market what it needs. You don’t have this power any more sony, their are better products out there now… TV’s/Media Players/Consoles/Handhelds/Phones. There are more competent and better companies in play now… Samsung/Apple/Google/Microsoft/Nintendo.

    I seriously can’t see sony lasting much longer… for this reason I say this…

    … sorry folks, but the ps4 won’t make it to the market place before sony collapses.

    The ps4 is dead already.

    1. Oh please you don’t know anything about business or how sony operates, if sony was dead would they spend 380 million dollars on gaikai. Seriously your just as bad as the author of this so called article, you run your mouth and don’t check facts.

      1. Companies are not simply going to stop when they now they’re in financial strife. sony is still going to push forwards and execute long laid plans… but please, do some research… sony are in the fight of their life atm… they are in some serious doo doo.

        If you are a sonyfanboy feeling a bit scared… go ahead, please do wave the magic cross of the Gaikai purchase in the face of massive layoffs and continued massive loses across all divisions for years on end. If it makes you feel better, ignore the facts… wave your cross.

        sony are in trouble… the ps4 might not even make it to the market.

        1. Are you ignorant or just plain stupid because it has to be either one. You want to talk about research okay then lets talk, first its called a bad economy unless your name is Apple everyone is suffering layoffs not just Sony. Microsoft, Samsung, Nokia, Dell, HP, Yahoo, and plenty more have had to layoff people unfortunately and it is extremely saddening. But Sony got hit the worst because they are a Japanese company many things happened to them that is out of there control as I said in an early comment since the yen is so much stronger than the won, that’s why Samsung and LG TV’s are so much cheaper. Sony can’t control the Japanese government, second the tsunami and earthquake that hit Japan really hurt them a lot since lot of there facilitates were damage and even one factory was burned down, again Sony can’t control mothernature. You then mentioned that PS4 won’t even hit the market this where you really show ignorance in your comments, Kaz took over Sony after Stringer was given the boot by investors, and why exactly was Kaz chosen to be the new head honcho at Sony, because the Playstation division was the most profitable, and Kaz has already stated that there putting more money into the Playstation division and investing more on entertainment and gaming aspect of Sony. Plus details of the PS4 have already been leaked that Sony using AMD parts for PS4 instead of building everything inhouse like they did with PS3, thus keeping cost down on the PS4. So there you have you it, see what a little bit of research will do this isn’t about fanboys and console preference its about getting your facts straight and not sounding like a complete jackass like you just did. Of course Sony is having a rough time who isn’t in this economy, learn it live it and apply it you ignorant moron.

    2. Didnt u already posted thesame thing on a diff site… U talk asif u knew the broker field and only succed in looking like the OP. I think that sums it all.
      FYI the xbox division went on a bigger lose for a while and they are still here just like sony and nintendo will and slap pc gaming to the list. Nuff said

      1. If that is the best comment you can make. Then it only strengthens the proof that PauperStation fans are retards. Cry me a river!

  5. Really, this article is stupid. Hey im sony I have the best idea ever lets spend 380million on a cloud gaming business then stop making games

    1. Bingo my friend that’s when you know that the person who wrote this article isn’t a real journalist at all. You see a real journalist would have done some research before doing an article like this, but this was clearly made to rush to n4g and gather cheap hits.

    2. Sony doesn’t have the choice to stop… it has no choice but to carry on as if things are still good. Sony have to push forwards and go through with long laid plans. Sony have to believe that they are not in trouble, they have to show the world(and more importantly the share holders) that they believe in their future. The purchase of Gaikai does nothing but prove the need for sony to believe in the own future.

      Now… walk away from belief and please look at the facts… sony have been in financial trouble for years, and its only getting worse for them. Every division in that company is facing massive and highly competent competition from better companies… Apple/Samsung/Microsoft/Nintendo/Google.

      Vita is a failure, why would sony hide the sales figures in it’s financial statements? Because it’s not selling well folks. The ps3 is still firmly in 3rd place. Sony have lost this generation, badly.

      If the Gaikia purchase makes you feel better, great… but when you want to start looking at the facts, please don’t be surprised to find out that sony are on the verge of dying.

      1. Again, where is your evidence that Vita is a failure fanboy? Where is your evidence that Sony is heading down the toilet? You can’t help yourself, can you?

  6. “I picked up a B.A. in English with a specialty in Poetry. I also draw manga-inspired webcomics and play far too much Minecraft in my free time. My favorite game is Legend of Zelda: Majora’s Mask, while my favorite series is Suikoden!”

    Yet I’m reading this and thinking…”I don’t see Sony financial president, with a B.A in business and law major with a minor in finance”

    Please, shut the fudge up. Everything in this lame article is bias that i couldn’t even read. There was garbage all over, it’s not even worthy of a read. Who is this person by the way? Definitely not a big name jornalist with an opinion anyone NEEDS to care about. Next.

  7. He actually has a point Sony makes a ton of money in other markets instead of gaming .. Laptops , TV’s, Stereos , Cell Phones , any type electronic device you can think of Sony has their own variant. So if Sony was to back out the gaming market they will still be putting a boat load of money in the bank. Sony isnt doomed they just have other ventures can they invest in instead of gaming unlike Microsoft & Nintendo , Nintendo income is heavily based on gaming , Microsoft is more of a software company then a hardware company.

  8. In way he is right. The last two years Sony has made some really bad decisions causing them to lose over 7 billion dollars. For example the vita that’s far superior to the nintrndo 3ds but vita is not backwards compatible doesn’t have any games and price is overpriced. You think they will learned from the PS3 launch pricing and game lineup is the key. If Sony and xbox both don’t have backwards compatible systems, go digital downloads or gaming in the clouds they will lose a lot of customers at first but they will slowly come back if good pricing and the games are right. Sony and xbox need to be original and think more about the customer in order to survive the next gen consoles.

      1. Yep I sure do:p got to get the next gen console its not over priced. PlayStation Xbox next gen console will be over price if you don’t believe me read the rumor specs. PlayStation might pull off a cheaper system but Xbox is not going to pull 200 dollars launch system
        There’s no possible way if they come out at 300 maybe 400 I will buy it But till then the Wii u is just going to have to d.o

  9. Sane people want Sony out of business for the correct reasons. Their underdelivering overhype and predictable lies. Insane PlayStation fanboys are just pathetic schmucks that can’t handle the truth around Sony. Their credit rating has been axed once again two days ago to its second lowest form and will be axed to the lowest possible next year. The yen is growing stronger and the company is just crap compared to the 90’s. No wonder why the company’s market value has lost over 95% in the past 12 years. With the Vita being a failure and the PS3 in last place (with a craptastic new model to boot), there is no hope for Sony but false ones.

  10. xbox only outsold ps3 by about 3million units, it’s not hard to believe that at least 1million units of those were replacements for RROD consoles

    Xbox started strong and is ending in failure this gen, they have no exclusives and PS3 is just doing better in every way
    PS3 started as crap, and was crap until a few years ago, but since they have all the games people want and are talking about as well as PSN+ and free online? many people will switch to ps4 when next gen starts.

    1. No exclusives? What is Halo 4 then? It’s not like it’s one of the most popular franchises in history! Think before you speak.

  11. ” I wouldn’t be surprised if Sony sits out next generation, or even quits the chase entirely to work in other areas of the technology field.”
    Something they should have been doing years ago in the first place. Maybe their money hemorrhage wouldnt have been so bad.

  12. No matter how many great original games you develop year after year, even more than the other 2 combined, some people will keep on looking for reasons to write these silly articles. Are you a gamer or a shareholder?

  13. Sarah Swanson? Ok. That explains it. And the stupid “everyone noticed but you” fake image galleries that NEVER have pictures of what the thumbnail is.
    It Was Not Easy To Notice It At The End Of Avengers…click here to not see it. Im never coming back here again…And I’ve only been here once!

  14. Poor article. I would rather recommend the idea of sticking onto Poetry or Legend of Zelda than a parade of such write-ups. Sega or Kodak camera comparison..Seriously? Obviously both of them were outclassed by their competitors of that time which led to it’s own demise. Sony can never be bankrupt nor will they cease the production of gaming devices any time soon. A PS4 just isn’t the right time any soon unless PS3 has shown it’s last potential for a couple of years. It shouldn’t be considered as a base of an excuse for their recoupment. They are one among those very few firms who has clearly reinstated their purpose of existence in the entertainment industry with quintessential products, a driving factor of their continued success in the gaming department despite huge losses curtailed every year. Lay offs are sadly a part of every firm’s business venture. It’s hard luck for some. And US alone isn’t the market. Sony’s PS3, even with its higher price is still the number 1 selling home video game console on the worldwide basis putting 360 behind it,

  15. This is the dumbest thing i’ve read in years, and i’m a gaming journalist myself. For shame sir, you haven’t got a clue. The gaming bizz is nothing short of integral to Sony, so no.. and just no. I mean, give the gloom a rest. All the big releases for this, and next, year is ps3 exclusives, or at least ps3-bound. And, it is much more likely that Sony have learnt from their mistake, and seeks to hit the market before Microsoft with the next gen.

    1. Calls author clueless. Gets her gender wrong.

      The big releases are ALL PS3 bound? Seeing that many Nintendo exclusives have outsold the best-selling PS3 games several times over and that it is likely that his trend will continue, it simply cannot be said that all big titles will come to the PS3.

      Or do Nintendo exclusives not count?

      So you call yourself a gaming journalist, and others dumb and clueless?

  16. looks @ ps3 current AND future exclusive game lineup
    looks @ xbox pathetic excuse for a game library
    yeah PS3 FTW -its about the games folks

    its sad that after all these years all M$ has is the same 2 space marine shooters, and fable n forza LOL

    Sony owns M$ and kidtendo combined
    better hardware that dosnt FAIL, the ONLY console that plays the true HD format
    Free add-less online > add plastered paid xbl
    Bluray High Def > dvd
    PS plus > ripoff live anyday
    MGS4 > splinter cell
    Demon’s Souls > fable lol
    Uncharted > Gearz (UC2 highest rated exclusive this gen btw)
    Killzone 2,3 > Halo (graphically, quality wise its close)
    Gran Turismo 5 > Forzas
    God of War > no answer from M$ here
    InFamous > crackdown
    Little Big Planet > ms turned this dev away
    Heavy Rain > uh alan wake? (alan wake is on pc now )
    Motorstorm > ?????
    Twisted Metal > ?????
    Modnation racers (bonus)
    Resistance (bonus franchise)
    Heavenly Sword (bonus game)
    Warhawk n Starhawk (bonus games)

    PS Allstars Battle Royale (fighter, (ms has none)
    Little big planet karting
    The Last of Us (new ip, somthing ms and ninty know nothing about)
    Beyond: Two Souls -another new ip, 🙂
    God of War: Ascension (not a shooter folks thank heavens)
    Sly 4 thieves in time
    The Last Guardian (new ip)
    Agent (rumored)
    FF vs 13 (rumored)

    read the handwriting on the wall, ninty and M$ have completely abandoned the core gamer in search of casual $$$$
    PS3 and soon PS4 FTW


    1. Seriously? PS Allstars? SSB ripoff. Little Big Planet Karter? Mario Kart for the cheap seats. Yeah, Sony really has all the smash hits.

  17. Sony has less money for PR, Bull. I see tons of Xperia phone, PS3/Vita Game//PS3/Vita hardware Ads on TV in the UK.

    Funny, Sony skint yet they just invested $632 million in Olympus which makes them the largest shareholder.

    Sony bought gaikai cloud gaming service fo $380 million.

    Sony bought out Ericsson’s 50%Stake I n Sony-Ericsson Mobile For $1.47 Billion.

    Sony buys EMI publishing for $2.2 billion.

    Sony is still a Multi Billion Dollar company, they not going anyway. They could sell ther Billions of assets off if they needed too. If you think otherwise you clearly hav’nt a clue.

  18. The FU#KING RETARD AUTHOR keeps deleting my posts. Guess the truth HURTS.

    Clearly you never did research before ‘WRITING THIS CRAP’.

  19. Sony is a hard company to predict but I don’t see them bowing out of video games anytime soon because it is still their most profitable division. Their financial voes come primarily from their hardware engineers ineptitude at creating quality products that can be offered at consumer/market friendly prices. This being most true in the 3D and HDTV market where competitors offer better or equivalent products for significantly less.

  20. What the HELL is this, Sara? If you think the PS3 is expensive, better take out your calculator and count this in your xbox purchase: the price of XBL and the batteries you need for controllers. This bullshit article may be your opinion but your opinion sucks…

  21. Sony supporting the ps3 until 2015 or longer is a good thing. They did this with the ps2 after the ps3 came out and that was smart move of them because they didn’t want people get bad at them like people got bad at microsoft. People can’t buy there new system right away and people that have ps3 still sony can make more money. People that right this stupid shit that isn’t true at all should get fired.

  22. How is Sony expensive from the rest? For 250$ you get a ps3 with a 250gb hd and xbox is 300$ with a 250gb hd.. im sick of these articles bashing Sony. I have both xbox and ps3 and they are equally good. Long live sony and Microsoft

  23. Well, at least you can write properly, because you clearly have no idea how Sony, or the gaming industry as a whole operates.

    Congratulations on landing the top article on N4G today! You’ve successfully blacklisted your site from every person that actually cares about the industry here.

  24. ソニーは レイオフした理由について何と言っているのですか。

    ただ 経営の効率を改善させたかっただけなのかもしれませんよ。
    この記者は「何故なのか説明できるかもしれません」と 何度も書いてあるけど、
    That’s why I’m going to ignore this opinion.

  25. i just wanted to say that all of my life i had owned and used a PC for games and despised anything console.
    this year i got tired of having nothing to play, and so i bought a PS3 (my friends have Xbox 360, and it has mostly the same games that the PC have only they look as if they were made 10 years ago). graphics wise i haven’t seen a game on my PC (which has a 500$ Geforce) that matches neither Uncharted nor God of War Heavy Rain Etc, graphics. (all ps3 exclusives i do believe). i am deeply amazed by this console abilities to deliver even today (what, 5 years old, now ?) cutting edge graphics with better controls than the rest.
    All Hail SONY

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