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Sony: PS3 Gaming or Movies?

BDI’ve seen a lot of editorials postulating that Sony is putting a BD (Blu-ray Disc) player into the PS3 as a strategic move in the war against Toshiba. I can buy that. It makes sense, after all. Put BD players in as many hands as possible, and it could end up winning the HD disc format war for Sony. Sony failed with Betamax, failed with MiniDisc, and somewhat failed with MemoryStick. They really want Blu-ray to win. And to be clear: I have no problem whatsoever with Sony putting their own proprietary formats out there for standardization. It’s a free market, and they are their own entity who is allowed to try what they want. If it’s no good, market forces will punish them for it. If they do good, then the market will reward them. That’s just how things work. So if Sony chooses to try again with Blu-ray, more power to them. This time is a little different, though. They got the support of a bunch of electronics companies behind them, and it looks like it’ll be pretty hard for them to lose this particular battle.

But that’s not even the point of my writing this. Let’s get back to those many editorials I mentioned. They say that Sony is putting BD players into PS3’s to help in the war against Toshiba. Fine. But then they go on to say that winning the next-gen HD disc war is more important to Sony than winning the next-gen console war. And that’s where they lose me. I just have a hard time believing that all the money they make from the PlayStation brand, including software and hardware, is so much chaff when compared to the potential revenue from BD licensing. I’m sure the latter is worth millions, or maybe even billions of dollars, to Sony. But does it really outweight gaming revenue so much? While total income from gaming has traditionally been on the small side compared to their electronics business, it has also historically accounted for a much larger share of operating profit.

So do I think that gaming plays second fiddle to HD movies? Nope, I don’t think so. I think that gaming is just as important, if not more so. And as you can see, I backed myself up with cold hard facts! 😉

Next Generation – Console War a Side-Quest for Sony?