Filed under: Launches, Industry, Consumer experience, Competitive strategy, Microsoft (MSFT), Sony Corp ADR (SNE)
Sony (NYSE: SNE) is building a virtual community for video-game players who purchase its PS3 video-game console. It has been delayed again, which might state something about why the Microsoft (NASDAQ: MSFT) Xbox 360 and Nintendo Wii tend to thrash it in the sales department.
According to The Wall Street Journal, “The service will let users create avatar characters, decorate homes and interact with other users in a virtual world.” It was supposed to come out in 2007, and now it might be out late this year. Microsoft has had an interactive aspect to the Xbox for more than two years. It allows game-players to compete against each other over broadband connections. The Microsoft product also facilitates on the web chat and downloads of video games and movies.
Investors would think that Sony would put a higher priority on its PS3 platform. The PS2 was the flagship of Sony’s consumer electronics operations and was a tremendous driver of operating income for the Japanese company. The losses from the company’s game division have been a drag on earnings for over a year because the PS3 has not been a large winner.
Sony still has not gotten the PS3 right. First, it was late to market. Then, it didn’t have enough new games. Finally, it was too expensive and Sony dropped the price. Now, it is missing something that consumers anticipate.
Saying ‘oops’ isn’t enough for shareholders.
Douglas A. McIntyre is an editor at 247wallst.com.
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