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Summary:

Wii serves a million in its first month; Sony admits defeat and sells its game division to… Microsoft? I’m writing this from the old town square of Warsaw, Poland, where the cobblestone courtyard puts you in mind of a World War II movie — and the […]

Wii serves a million in its first month; Sony admits defeat and sells its game division to… Microsoft? I’m writing this from the old town square of Warsaw, Poland, where the cobblestone courtyard puts you in mind of a World War II movie — and the throughput on the wireless hotspot nearby is better than decent. I’m still debating the social value of always being connected, even from a former communist country so recently impoverished. Still, it does let me track the latest developments in the battle to become the next generation console of choice — and by default, the dominant broadband interface for the world’s living rooms.

And from where I’m sitting, it’s still not looking good for the Playstation 3. According to Ars Technica, Nintendo plans to have one million units of their Wii console on the shelves for their November launch. This is in marked contrast to the 300,000 units of the PS3 that Sony plans to have out the gate. In further contrast, Nintendo expects to make a profit on each sale, while Sony’s console comes with the expensive Blu-Ray and last-ditch discounts that’ll keep it in the red for some time. So grim do Sony’s prospects look, that an analyst pseudonymed “Evermore” has blogged a detailed and tightly-reasoned case that the company will soon find itself forced to sell its game division to Microsoft.

Generally I’m reluctant to give much credence to an anonymous blogger on a girl gamer site, but Evermore offers an extensively-sourced argument. And even more key, since her post has been Slashdotted, there’s a definite likelihood that it could become, through the wonderful feedback loop of the Web, received wisdom among gamers. Perception becomes reality, and the bottom line, and a significant number of them pass on picking up a PS3 this year.

Then again, I am blogging this from the heart of a city devastated by the Nazis and ravaged by the Soviets, but now has wireless Internet and a burgeoning economy, so it’s a place where anything seems possible.

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  1. Mitch Tenderson Tuesday, September 26, 2006

    How is the sex of the poster relevant to the credence of her arguments?

  2. I hink that in the long term Sony will be very well positioned with their system.
    Making a generation change and keeping the lead it’s no easy task (tell that to Nintendo and Sega), but they have a very good system ( in terms of power) , and a good variety of games plus a respectable movie business they can use to push blu-ray
    I think the console wars it’s not a win or lose scenario for Sony MS or Nintendo.
    That said they have been in better positions..but in a couple of years no one will remember if the PS3 was delayed or how meny unit shipped in the first months.

    Tha best games will make the winner , as always.

  3. Wow! Don’t you think that Evermore is stretching to connect the dots a bit?

    “Just remember who’s running the government. A Microsoft takeover would be treated with the same kid gloves that created DaimlerChrysler.”

    Huh? Lets compare apples to apples, okay?

    I agree Sony is in trouble with the PS3. However, the PS3 isn’t only a gaming platform it’s an entertainment platform. Can’t you see? They plan to make money not only from games but movies, also. And not just movies from Sony Studios. They will receive licensing fees from the other studios as well.

  4. Sony made so much money from Playstation 1 and 2, there is no way that they would sell their gaming division. Sony has the best games lined up and those games will not end up on any other console, simply because the ps3 is the only system that can handle these games. There is no doubt that Sony is in trouble but the ps3 is a major part of Sony’s future. They have to get this one right even if it costs them to be in the red for a couple of years.

  5. Even if Sony did sell, why would it be to Microsoft? Why would Microsoft even want it? Sure they’d like to see Sony out of the gaming business, but Microsoft has to be careful with megamergers that seem to put it on the path of monopolizing an industry. I’d think instead, if things got ugly, they would seek a partnership like they did with Ericsson and their underperforming handset division. Since mobile gaming is going to continue to be a growth segment, spinning the game division into Sony-Ericsson is not completely far fetched — sepecially given moves by Ericsson arch-rival Nokia. That might then lead to a Nokia-Nintendo hookup (makes some sense given both company’s emphasis of useability over horsepower). Meanwhile, Microsoft and their mountain of cash can certainly well afford to go it alone.

  6. Im a complete PS fan and own a PS1, PS2 and PSP. However i will not be rushing out to get a PS3 (even if there was enough in the europe). I really think the price is way to high for the console and will probably look at the Wii or the 360, or simply stick with my PS2.

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