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Analyst: Sony could wait till '07 to launch PS3

Sony strategists may see a priced-down PS2 as all the company needs in '06; would ride $99 sticker--and profits--all the way to 2007.
Buried in an analyst's memo, written shortly after last week's Electronic Arts earnings call, was a hidden gem. According to the widely read team at Wedbush Morgan Securities, Sony may delay the release of the PlayStation 3 until 2007--if exactly the right conditions prevail.

Currently, the console is slated to appear in Japan before the end of that company's fiscal year--March 31, 2006--and in North America before the end of 2006.

Given the right set of circumstances, however, that release window (at least in North America) could intentionally lag until after the 2006 holiday buying season.

In a research memo sent to investors, Wedbush senior analyst Michael Pachter set up the following scene for a delayed PS3 launch. It starts with the current-generation Xbox being priced down to $99 post-Xbox 360 launch, but no lower. Concurrent with that situation--an Xbox 360 at an unspecified price and the Xbox at $99--Sony would drop the price of the PlayStation 2 to $99.

There are two components to that pricing strategy: the first is that a $99 PS2 would offer a significant distraction as the 360 launches. As Pachter states: "We believe that the company will attempt to disrupt the Xbox 360 launch with a price cut, and as a result may succeed in diverting attention away from the higher-priced next-generation console."

In addition to the "diversion rationale" is the supporting fact that "the redesigned PS2 carries a manufacturing cost of less than $99," according to Pachter. New consoles are noteworthy for the fact that at the beginning of their manufacturing cycle, the units are sold at a loss. Given that the PS2, according to Pachter, would cost less to make than to sell, it behooves Sony to extend demand for that product for as long as possible. And if Microsoft takes the Xbox price no lower than $99 (still a loss for Microsoft, according to Pachter), Sony will find itself in a win-win situation.

Another cornerstone in Pachter's theory is Sony not wanting to disappoint consumers and retailers by having too few units in the channel over the high-demand weeks of this coming December. Pachter says, "we believe that Sony suffered the ignominy of being unable to satisfy holiday '04 demand in order to increase its gross profits over the short term."

If the PS3 launches in late '06 and suffers the same fate, Sony would be embarrassed for a second straight year. Without any PS3's in the channel, there's no chance of a shortage of stock. A backward theory perhaps, but a theory based in fact nonetheless.

The key point in Pachter's argument weighs heavily on what sort of showing the 360 has at launch. If the 360 tallies significant sales early, Sony would need to fire on all cylinders and get the PS3 into the channel ASAP. However: "Should Microsoft fail to garner sufficient software support to gain an insurmountable lead, we think that there is a possibility that the PS3 launch will slip into early 2007."

Following the distribution of the memo last week, GameSpot spoke with Pachter who emphasized that he "posited the thought as option value for Sony." Continuing, he said, "I think the 360 will do quite well."

But if the 360 does an about-face at launch and tanks, the above Plan B could be an option the cash-strapped Sony might just consider.

The concept of teleconferencing has been around for years, but it's never really taken off outside of corporate boardrooms. It seems that the run of the mill phone line and video camera were never meant to be together. The original Xbox had a camera option, called Video Chat, but it was only sold in Japan. This time around, now that VoIP is firmly entrenched, Microsoft might jumble things up a bit by including teleconferencing as an Xbox 360 side bonus. The camera won't be available at launch time, according to J Allard, as Microsoft intends to wait until more games use the device.

Outside of gaming, do you think you'd use the feature to talk to friends and relatives? It does seem to be an almost free alternative to making a phone call if both parties have an Xbox 360. On that topic, what kinds of alternative uses do think people will dream up? Perhaps the ability to multicast would allow people to host their own shows via the Xbox 360. Think Red vs. Blue, except live action

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Sega admits neglect in Joypolis death

Company's amusement park, closed since April due to fatal accident, set to reopen later this month.
Today, Sega held a press conference to officially confirm that the April 18 incident in which a wheelchair-bound visitor fell to his death from a skydiving simulation ride at the Tokyo Joypolis amusement park, could have been avoided by better management. Sega also announced today that it will reopen the park in mid-August.

A police search of Sega's Tokyo offices in April uncovered an accident report, which showed Sega's Tokyo office recorded more than 50 accidents on its 23 rides since the amusement center opened in July of 1996.

Police had previously revealed that Joypolis employees had been using an unofficial manual for the skydiving simulator instead of the official manual provided by Sega Corporation, a mistake Sega said led to the tragedy.

"The incident was caused due to changes in the manuals made by the local amusement operation," read a report of the incident released by Sega today. "It could have been prevented if there were headquarter procedures to check that revisions would not be made." The company from now on will make sure that local operations cannot alter employee manuals without the supervision of headquarters.

Sega also announced that it has cut salaries for five of its board members, including president Hisao Oguchi, by 10 to 30 percent for three months starting in June.

While three Joypolis employees have been charged for the incident, Sega announced that they will be transferred to another location rather than get fired, stating "It is the company's fault for creating an environment where an accident could occur."

Moore talks more Xbox 360

Microsoft's head of Xbox marketing says Japanese summit was a smashing success; Xbox 360 is moving in a different direction from Sony's PS3.
In an interview published in the current issue of Famitsu, Microsoft corporate vice president and chief of worldwide Xbox marketing Peter Moore trumpeted the upcoming Xbox 360 launch in Japan. Even though surveys have shown Japanese gamers to be indifferent to Microsoft's console, the exec gave a number of reasons why he is certain that the machine will succeed in the Japanese market .

Moore seems extremely satisfied with his Xbox Summit 2005 presentation last month, where he unveiled a number of Japanese publishers that will support the Xbox 360. He said that the Xbox Summit served as a chance to show exactly how much third-party publishers in Japan are serious about the Xbox 360. Moore believes that Microsoft's good relationships with key Japanese publishers over the past few years contributed to the summit's major announcements. He also noted that gaming has become a worldwide business, and the Xbox 360 will be another chance for Japanese publishers to expand further into the global market.

While Moore regrets that the current Xbox console hasn't had much to offer Japanese gamers, he did say that Microsoft now better understands their tastes. Microsoft announced a strong lineup of third-party titles, such as Ridge Racer 6, Rumble Roses XX, and a new Gundam game, during last month's event. Microsoft also realizes that role-playing games are vital in penetrating the Japanese market, so it signed on former Square Enix producer Hironobu Sakaguchi to create two titles, Blue Dragon and Lost Odyssey. Moore believes that the trio of Sakaguchi, Tetsuya Mizuguchi, and Yoshiki Okamoto will spur interest in the Xbox 360.

When asked how he felt about Sony Computer Entertainment and its PlayStation 3, Moore said that most consumers believe the Xbox 360 and PS3 to be similar in terms of their hardware and market strategy. However, Moore believes otherwise. He explained that Microsoft's main concern with the Xbox 360 is to expand the gaming industry's gamer population. After listening to SCE president Ken Kutaragi speak on the PS3, he believes that SCE is trying to push the industry into a different direction. Moore emphasized that the PS3's price won't be affordable to normal households.

Speaking of price, Moore did not reveal the retail cost of the Xbox 360, but he did say that it would be affordable and would be announced very soon.

Ridge Racer 6 details emerge

Namco says Xbox 360 racer will launch with console, reveals information on game's online play.
As the release of Microsoft's successor to the Xbox marches ever closer, publishers are allowing more and more information on the console's anticipated games to see the light of day. The latest game in the Ridge Racer franchise received such a dose of sunlight when Namco announced that the racer will be one of the games available at the Xbox 360 North American launch scheduled for later this year. The company also unveiled information on the game's Xbox Live-enabled multiplayer.

Ridge Racer 6 will join the growing list of games that will be available at the console's launch. The research firm Piper Jaffray expects 25 to 40 games to be available for Microsoft's new console by the end of the 2005 holiday season.

Namco also pulled back the curtain on the game's online features. Ridge Racer 6 will be the first in the long-running racing series that will take the action online, allowing players to race against other players from around the world in head-to-head drift racing matchups. The Xbox Live portion of the game will also include a persistent leaderboard based on the game's time attack mode. Players will be able to download ghost data from the board and race against the best (or worst) players in the world. Namco also promises that new game content, such as cars, will be released for download via the Xbox Live Marketplace.

Check back with GameSpot for more information on Ridge Racer 6 and the Xbox 360 as it becomes available.

and superspammer is off

TV REPORT.

Pioneer's latest 43-inch plasma, dubbed the PDP-4350HD, has
a somewhat misleading name. With a native resolution of 1,024x768, it most definitely does not qualify as a true HD display. Now that doesn't mean that HD sources don't look good on the panel, they do, but technically, 1,280x720 is the minimum native resolution required for true HDTV display. Then again, no other plasma in this size range has more pixels. Once you've digested its name, you should note that the PDP-4350HD is very similar to its predecessor, the PDP-4340HD, except it has a somewhat refined panel and includes a CableCard slot. Its image quality is also nearly identical,