Don't Take my Words for it: Look at Numbers
Everybody should be interested in gaming in 3rd Millennium:
In a digital and online-engaged world, where devices are all tethered, sometimes you're at the center of the value proposition in the marketing. You start with your core. If you knew what you could do with digital photography, you might buy a better digital camera. If you knew what we could do in terms of a home entertainment experience, you might buy an HDTV or you might buy a better HDTV. Sony has a influence on media purchase, because if people buy a PlayStation 3, the retailer can sell them games. They can sell them movies. They can sell them music. There are multiple forms of media that are being played through there that people are consuming, at the retail level. You buy a standalone Blu-ray player, you're going to sell them some movies--it doesn't help them sell games or music.
There's a big debate of whether it's physical media versus digital media. The great thing about the PlayStation 3 is if you want to consume digitally, Sony's there for you with a video delivery service and a PlayStation network that allows you to consume games. PS3 can play Blu-ray movies, stand-alone movies, and disc-based games. PS3 is much more nimble than other devices are, and it gets in so many forms of entertainment that other companies can't play in. There are certain forms of media that aren't well served through a digital medium, based on their size and the time it takes to put the medium through the device. But there are complimentary media and smaller bite-size media that is better-served through the network. The consumer doesn't have to get off their couch to consume it. So clearly, digital is here to stay. But at least in the gaming space, there's no period in the near future that is going to completely replace physical media. Five-ten years from now, we still expect to see brick-and-mortar gaming stores. No question.
There's a big debate of whether it's physical media versus digital media. The great thing about the PlayStation 3 is if you want to consume digitally, Sony's there for you with a video delivery service and a PlayStation network that allows you to consume games. PS3 can play Blu-ray movies, stand-alone movies, and disc-based games. PS3 is much more nimble than other devices are, and it gets in so many forms of entertainment that other companies can't play in. There are certain forms of media that aren't well served through a digital medium, based on their size and the time it takes to put the medium through the device. But there are complimentary media and smaller bite-size media that is better-served through the network. The consumer doesn't have to get off their couch to consume it. So clearly, digital is here to stay. But at least in the gaming space, there's no period in the near future that is going to completely replace physical media. Five-ten years from now, we still expect to see brick-and-mortar gaming stores. No question.
Sony's biggest competitor is people's free time. And the company that can deliver the most entertainment for the least dollar is going to be the company that's most successful. SONY sells value. Gaming is at the core focus for Sony. Anything that is hooked up in the living room, to a television that's streaming media, whether it's a movie-playing device or a gaming device. It's something that is competing for eyeballs on a television set and fundamentally, that's where the experience begins for the games' company. Nintendo is almost the polar opposite. They know what they do well, and they stick to it. They deliver a casual, youth-oriented entertainment experience. It's very enjoyable and has been for 20 years. And they make money. They print money. That's enviable. Sony caters to a more mass-market audience. Who's coming up? What's it look like? There's always somebody on the horizon. Sega was a formidable competitor back in '95 when Sony got in there. And while they're a great software company, they're out of the hardware business. Microsoft was new in 2000. Rumours rumbling that Apple is now interested in gaming. And it's a $25 billion business. Everybody should be interested in gaming in 3rd Millennium.
