Bin War

As part of a larger plan to reduce purchasing costs in a weakened economy, Sony has announced that it will reduce its parts suppliers by more than half.

The plan, according to a report by Reuters, is to reduce its suppliers from an estimated 2500 to around 1200 by March 2011. It is just one aspect of CEO Howard Stringer's strategy to reduce its spending by 20 per cent - or about USD 5.3 billion - in the current fiscal year.

Earlier this month, Sony reported a USD 1 billion loss for the fiscal year ending March 31, with its videogame segment reporting an 18 per cent decline in sales.

Microsoft has a plan. I know that this statement might conjure up images of Steve Ballmer and Robbie Bach sitting in darkened office plotting new ways to steal more PS3 exclusives but if you look at Microsoft as a game company, they’ve come a long way in just two short generations of consoles.

The original Xbox cautiously tested the market; it built a fan base and turned Halo into an industry buzzword. Microsoft learned the ropes from the old king of the hill— the PlayStation Brand. Those lessons for success were simple: Get to the market first; aid developers and programmers; and finally, the most important of all— give gamers games. With the Xbox 360, Microsoft did this in a big way, promoting new franchises like Gears of War and Left 4 Dead.

No, these lessons weren’t learnt from that hype beast that was the PS2. They were gleaned from the console that started modern 3D console gaming as we know it: the PSone. The PSone embraced the relatively new (at the time) CD format. It had an extensive coding library to aid developers; Sony strived to make connections with publishers to bring games to the marketplace. Sony was aggressive with price cuts and with advertising campaigns. They were a force to be reckoned with and it made Nintendo and Sega almost pedestrian in comparison. That hunger and drive from Sony as they first faced off against Nintendo and the now-defunct Sega birthed a classic gaming system whose effects are still ringing in the ears of gamers today. Just go to a gaming convention and say: “Final Fantasy 7 remake” and you’ll drown in drool.

Sony used their brand recognition to build anticipation and tantalize gamers with the PS2. The PS2 was in many ways the opposite of the PSone. No longer a pure gaming system, it was far more difficult to program for and doubled as DVD player. As consumers snatched up this product developers were forced to follow the market in masses. The later launching GameCube and Xbox could do little to cut into the gigantic lead the Sony had amassed. This is why the original Xbox was quickly and quietly killed and replaced by its younger sibling. Microsoft wanted to upset the balance of power in the console war. They had learned firsthand that having more horsepower does not necessarily lead to more sales.

Sure, the Xbox 360 launch was tarnished by red rings and disc scratching, but early PSones and PS2s were plagued courted the hardcore, and helped developers so much that industry players like Gabe Newell and John Carmack have publicly stated how much easier it is to program for the Xbox 360. For better or worse, the Xbox 360 is a dumb PC. A dumb PC that is easy to build great games on.

What went wrong with the PS3? No console manufacturer has been able to hold a lead across three consecutive generations. Over confident, Sony tried to build upon brand confidence like the PS2 and failed. They did manage to build one of the best future-proof Blu-ray players money could buy but the market wasn’t ready for high definition players and gamers wanted games. The Xbox 360 delivered where the PS3 could not.

Even Japanese developers like Capcom know that the growth of the console gaming industry is a North American phenomena. Microsoft has delivered a product that caters to the tastes of a North American palate. We’ve been given first person shooters in bucketfuls, addictive sport games, and droves of platforms to live out our rock’n’roll fantasies. Microsoft and the Wii have proven that Sony can no longer rely on brand recognition alone. This generation may still have a longer life span than most; but make no mistake, the plans and strategies are already plotted and in motion.

Hold though, the console war is still in full effect. I believe that this E3 could be a turning point in the war; either solidifying Xbox 360 as a hardcore champion or rocketing the PS3 back to its crown. The PS3 owes a lot to the competition. Sony would not be nearly as innovative without the Xbox 360. For example, with the loud public outcry over the red rings, it did not surprise me when the PS3 launched problem free. The relatively quick growth of PSN and PlayStation Store into a viable alternative to Xbox Live show that Sony is not simply resting on its laurels. Inadvertently, the Xbox 360 could be leading the Sony brand back to its former glory.

Competition breeds innovation and arguably Sony is already leading in artistic innovation category with titles like Flower, Pixel Junk Eden, and Everyday Shooter. The PS3 is home to some epic and new headlining franchises like Resistance, Uncharted, and LittleBigPlanet. There is a wealth of franchises on the PS2 that haven’t transitioned over to the PS3 yet—where’s my Team ICO game? Where’s my new Twisted Metal? My full-fledged Gran Turismo? This year is looking like a great year to be a Sony fan. Killzone 2 is already rocking consoles and God of War is making media waves almost every day. Nathan Drake is coming back to consoles and I can’t wait to try out Zipper Interactive’s MAG. Maybe it’s just me, but Sony is starting to look hungry again.