Hacking the PSP Blog

Analysts Weigh In on Kutaragi's Departure

Perhaps Ken Kutaragi's departure shouldn't be surprising. SCE said it was in the works for a while, but was he squeezed out thanks to the PS3's limping out of the gate? Or was it simply time for him to move on? We speak with several analysts about why this happened and what it ultimately means for the PlayStation business.

The PlayStation 3 has been off to a slow start. Month after month competing consoles (Wii and Xbox 360) outsell the new Sony console here and in Japan. Sony's game division is expected to lose about 200 billion yen ($1.7 billion) for the fiscal year just ended March 31. Did PlayStation mastermind Ken Kutaragi take the fall? Or is his departure from SCEI simply his own wish to move on?

Pacific Crest Securities analyst Evan Wilson seems to believe that Kutaragi was squeezed out. He told Bloomberg.com that Kutaragi's retirement is "likely an indication Sony corporate isn't satisfied with the initial success of the PS3."

IDC analyst Billy Pidgeon agrees. Pidgeon believes that Sony CEO Howard Stringer is probably trying to save face, following the PS3's early struggles. "Sony had too much hype and not enough delivery," he told the AP. "Sony didn't notice that their audience was dwindling and didn't increase the base by playing to a wider demographic, and instead it played the old-school game of playing to the 18- to 32-year-old male early adopter. Nintendo saw this as a strategic flaw, and the Wii has basically become the disruptive product."

Other analysts aren't so sure that this was an attempt to save face. "[The move] probably [had] more to do with software and the PSP than with the PS3," Wedbush Morgan Securities analyst Michael Pachter told GameDaily BIZ. "It can't be his fault that the cost of the box was so high, and I have a tough time believing he insisted on Blu-ray. They probably just all agreed it was time to move on. Sony didn't have a great lineup of first party software for the PS3 or the PSP, and didn't get as much third party support this time around. I think Kaz Hirai is great, and the company probably doesn't need a visionary for another 10 years. They need an operations guy, need to drive costs down, and need to develop more software support (internal and external). Hirai will be great at that."

Read the full article here...

James Brightman
April 26, 2007

Source: GameDaily.biz

Sony launches YouTube competitor, compatible with PSP

One of our readers informed us of a new service from Sony called eyeVio, which will launch tomorrow in Japan. This informative diagram from the site shows a world where cameras, camcorders, phones and other devices can communicate with each other. Next to the defunct boomerang PS3 controller, one may see a PSP. Could YouTube-styled streaming video come to the PSP? Not quite.

Just like Sony's other video streaming service, Grouper, eyeVio will allow users to download PSP (and iPod) compatible video files. More interesting, however, seems to be the mobile version of eyeVio (m.eyevio.com), which will allow users to also upload files from their mobile devices.

The service will be limited to the Japanese market, so the majority of PSP Fanboy readers will not be able to use the site.

Andrew Yoon
April 26, 2007



Source: PSP Fanboy

Off Topic: Kotaku Suit Goes Bye-Bye Over Thompson Screw-up

From Game Politics:

So, how’s that Law 101 class going?

Federal District Court Judge Paul Huck has dismissed a complaint filed Wednesday against Gawker Media, parent company of the popular Kotaku game blog. In his ruling, Judge Huck wrote that controversial attorney Jack Thompson had failed to follow the proper federal court procedure for amending a complaint.

For his part, Thompson admits his mistake and pleads ignorance (we’ll buy that), citing distractions he says were caused by the Florida Bar and an unnamed game website which published his home address and phone number.

Thompson vowed to the Court that he will re-file the Kotaku complaint, this time in accordance with the rules.

April 27,2007