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Sony Unveils PlayStation 4, Aiming for Return to Glory With PlayStation 4, Sony Aims for Return to Glory
(35 minutes later)
For the Sony Corporation, a tech industry also-ran, the moment of reckoning is here.For the Sony Corporation, a tech industry also-ran, the moment of reckoning is here.
The first three generations of PlayStation sold more than 300 million units, pioneered a new style of serious gaming and produced hefty profits. PlayStation 4, introduced by Sony on Wednesday evening, is a bold bid to recapture those glory days of innovation and success. The first three generations of PlayStation sold more than 300 million units, pioneered a new style of serious video games and produced hefty profits. PlayStation 4, introduced by Sony Wednesday evening, is a bold bid to recapture those glory days of innovation and success.
The first new PlayStation in seven years was touted by Sony as being like a “supercharged PC.” It has a souped-up eight-core processor to juggle more complex tasks simultaneously, enhanced graphics, the ability to play games even as they are being downloaded, and a new controller designed in tandem with a “stereo camera” that can sense the depth of the environment in front of it. The first new PlayStation in seven years was promoted by Sony as being like a “supercharged PC.” It has a souped-up eight-core processor to juggle more complex tasks simultaneously, enhanced graphics, the ability to play games even as they are being downloaded, and a new controller designed in tandem with a stereo camera that can sense the depth of the environment in front of it.
When the machine goes on sale before the end of the year — no pricing was announced — those features should make for more compelling play for the hard-core gamers at the heart of the PlayStation market. The blood in “Killzone: Shadow Fall,” shown to an audience of 1,200 at the Hammerstein Ballroom in New York, looked chillingly real. All of that should make for more compelling play for the hard-core gamers at the heart of the PlayStation market. The blood effects in Killzone: Shadow Fall, shown to a preview audience of 1,200 at the Hammerstein at Manhattan Center Wednesday night, looked chillingly real.
With PlayStation 4, serious gaming is about to become much more social. A player can broadcast his gameplay in real time, and his friend can peek into his game and hop in to help. Also, they will now be able to upload recordings of themselves playing and send them to their hardcore friends, who will possibly want to watch when they are not playing themselves. The console itself was never shown during the two-hour presentation. No release date was given, although before the Christmas holidays is a good possibility. No price was mentioned.
The new features, however, cannot hide the fact that PlayStation 4 is still a console, a way of playing games on compact discs that was cool when cellphones were the size of toasters and browsers were people in libraries. It was a couple of lifetimes ago, or so it seems. With PlayStation 4, serious games are about to become much more social. A player can broadcast his game play in real time, and his friend can peek into his game and hop in to help. Also, players will now be able to upload recordings of themselves playing and send them to their friends.
Much of the excitement in gaming has shifted to the Web and mobile devices, which is cheap, easy and fast. Nintendo’s new Wii, introduced in November, has been a disappointment. Microsoft’s Xbox, the third major console, is racing to turn into a home entertainment center as fast as it can. These and other new features cannot hide the fact that PlayStation 4 is still a console, a way of playing games on compact discs that was cool when cellphones were not smart.
“Today marks a moment of truth and a bold step forward for PlayStation,” Andrew House, chief executive of Sony Computer Entertainment, told the crowd. He said the new device “represents a significant shift of thinking of PlayStation as merely a box or console to thinking as a leading authority on play.”Fine words, but the new PlayStation will have an uphill battle. Sales of consoles from all makers peaked in 2008, when about 55 million units were sold according to the research firm I.D.C. By last year, that was down to 34 million. Much of the excitement in video games has shifted to the Web and mobile devices, which is cheap, easy and fast. Nintendo’s new Wii, introduced in November, has been a disappointment. Microsoft’s Xbox, the third major console, is racing to become a home entertainment center as fast as it can.
For 2014, Lewis Ward, I.D.C.’s research manager for gaming, forecasts a recovery to about 44.5 million. “Today marks a moment of truth and a bold step forward for PlayStation,” Andrew House, chief executive of Sony Computer Entertainment, told the crowd. He said the new device “represents a significant shift of thinking of PlayStation as merely a box or console to thinking as a leading authority on play.”
“From peak to peak, we’ll be down about 10 million,” he said. “There was attrition to alternative gaming platforms like tablets, but the trough was exacerbated by the 2008-2009 recession. It did not permit as many people to buy who under normal economic conditions would have bought a console.” But the new PlayStation will have a difficult time, like the character in Killzone who was shooting at the people in the helicopter while hanging from the helicopter. Sales of consoles from all makers peaked in 2008, when about 55 million units were sold, according to the research firm I.D.C. By last year, that was down to 34 million.
That was reflected in Sony’s miserable financial results. The company has lost money for the last four years, hampered not only by slower console sales but also by a range of unexciting electronic products, a strong yen and the 2011 tsunami in Japan. Analysts have made dire comments about the one-time powerhouse’s viability. But Sony seems to have bottomed out, helped by a yen that has now weakened. Sony executives said earlier this month that they expected a profit in 2013. For 2014, Lewis Ward, I.D.C.’s research manager for video games, forecast a recovery to about 44.5 million.
Sony’s new chief executive, Kazuo Hirai, has a longtime personal connection to the PlayStation franchise and is making it one of the core elements of a more tightly focused company. Mr. Hirai became well-known for some of his more confident statements about the PlayStation, particularly a 2006 swipe at Microsoft: “The next generation doesn’t start until we say it does.” “From peak to peak, we’ll be down about 10 million,” he said. “There was attrition to alternative gaming platforms like tablets, but the trough was exacerbated by the 2008-9 recession. It did not permit as many people to buy who under normal economic conditions would have bought a console.”
Sony has teamed up with Gaikai, the online gaming company it bought last year, to store PlayStation content in the cloud. PlayStation 4 games can be streamed to the PlayStation Vita, Sony’s portable gaming device, among other features. That was reflected in Sony’s miserable financial results. The company has lost money for the last three years, hampered not only by slower console sales but also by a range of unexciting electronic products, a strong yen and the 2011 tsunami that struck Japan.
“The architecture is like a PC in many ways, but super-charged to bring out its full potential as a gaming platform,” said Mark Cerny, Sony’s lead system architect. Analysts have made dire remarks about the one-time powerhouse’s viability. But Sony seems to have bottomed out, helped by a yen that has now weakened. Sony executives said this month that they expected a profit in 2013.
James L. McQuivey, a Forrester analyst, said that in order for the PlayStation 4 to succeed, Sony needed to think beyond gaming. The console will have to provide other types of digital content and services, like video conferencing, third-party apps and a TV service to create a deeper, long-term relationship with the customer. Sony’s new chief executive, Kazuo Hirai, has a longtime personal connection to the PlayStation franchise and is making it one of the core elements of a more tightly focused company. Mr. Hirai became known for some of his more confident statements about the PlayStation, particularly a 2006 swipe at Microsoft: “The next generation doesn’t start until we say it does.”
By comparison, Apple, the world’s leading consumer electronics maker, does not just sell hardware. It also has an ecosystem of digital content including apps, music, movies and e-books to make people coming back for more Apple gear every year. Apple generally takes an enviable 30 percent cut of all media it sells. Microsoft, Google and Amazon are making similar moves to create ecosystems. These days, the next generation is playing games on the Web. Console makers typically sell their consoles for a loss and generate profit through sales of games. In 2012, American consumers spent $14.8 billion on game content, including computer and video games, down from $16.34 billion in the previous year, according to the NDP Group, a research firm.
Instead of buying traditional games, which typically cost $50 or more, many consumers are being drawn to the cheaper, sometimes free games available for their smartphones and tablets, analysts say.
PlayStation 4 games can be streamed to the PlayStation Vita, Sony’s portable game device, among other features.
“The architecture is like a PC in many ways, but supercharged to bring out its full potential as a gaming platform,” said Mark Cerny, Sony’s lead system architect.
James L. McQuivey, a Forrester analyst, said that for the PlayStation 4 to succeed, Sony needed to think beyond games. The console will have to provide other types of content and services, like video conferencing, third-party apps and a TV service to create a deeper, long-term relationship with the customer.
By comparison, Apple, the world’s leading consumer electronics maker, does not just sell hardware. It also has a universe of digital content including apps, music, movies and e-books to make people come back for more Apple gear every year. Apple generally takes an enviable 30 percent cut of all media it sells. Microsoft, Google and Amazon are making similar moves to create such a product array.
“Then and only then can Sony hope to learn enough about its users to overcome its own bias toward preferring to design products in response to engineering principles rather than customer needs,” Mr. McQuivey said.“Then and only then can Sony hope to learn enough about its users to overcome its own bias toward preferring to design products in response to engineering principles rather than customer needs,” Mr. McQuivey said.
Sony shares, which have risen by nearly a third this year, were little changed Wednesday before the event.

This article has been revised to reflect the following correction:

Correction: February 20, 2013

An earlier version of this article misstated the number of consecutive years in which Sony has lost money. It is three years, not four.