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Kutaragi Going Ga-Ga Over Technology, Creating Small market for PS3? |
Listed in: PS3 Tags: Blu-ray, Ken Kutaragi, playstation 3 updates, Sony
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If we are to believe a "reliable source" who is said to have worked in the gaming industry for many years, it seems that Sony Computer Entertainment top honcho, Ken Kutaragi, doesn't give that much bearing on the market and instead would want to focus on technology and creating a small market.The source mentioned a hush-hush session with the Sony Computer Entertainment management. What transpired during that session, according to the said source, "Kutaragi is interested only in consoles and technology. He does not care about the market. Some SCE officers disagree with his approach, feeling that the company should be more market sensitive. Kutaragi does not care. Nintendo has shown that it isn't only about powerful technology and graphics, but the PS3 isn't geared for that market at all and is intended for a very specific customer."
Also there seem to be some confusion that has been brewing within the Sony camp. "Some divisions view the machine (the PS3) as a game machine, while other divisions view it as a home electronic device (like a TV or a video player). Some SCE officers are worried about hitting the console's target consumer. As a game machine, it's very expensive for many players and not exactly something parents would buy for their children. As an electronic device, the inclusion of a game player could be off-turn for those only interested in electronics and Blu-ray."
And if we are to believe the source, it seems that Sony is headed towards stormy weather. Why is that? Well, according to the source it is because of the scenario that "many small and medium-sized developers are not making PS3 games, because costs are astronomical. Instead, they are switching to the Wii, the DS and the Xbox 360. Everyone sees developing for the PlayStation 3 as a risk."
Whether it is true or just some senseless backfence blabbers, well, that's your prerogative. So speak up people, tell us what you think through your comments.
Via Kotaku
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Yeah, maybe he is mad...but he is not dumb.
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It's no wonder they are worried about their 'target' when they don't even know what that target is.
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It's not a secret that one Division often does not know what the other Division is working on. One of the main goals of Howard Stringer is getting Sony all together again and let them pull into the same direction.
Oh, and actually I pretty much would like this: "Kutaragi is interested only in consoles and technology. He does not care about the market."
If he would, we would have a 360 and only EAs developing for it. Ken is a visionary, often talking about ideas not possible at the present. And then come all the fanboys "omg! krazy kenny dumb id1ot"
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Kutaragi needs to be replaced though...
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And for those that say these are different times. Even considering that, I don't buy that times are different enough that a $600 console is reasonable. If anything, they should have marketed the $600 version to the high-end (i.e. PSX) market and put out a $300-400 version sans Blu-ray to be the game machine.
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That's like saying "I love Civilization, but Sid Meyer needs to be replaced"
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Man I just love reliable sources
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Show some respect to the man who made this industry the self respecting multi-billion dollar business it is today. He made it ok for people older than 14 to play games and not feel ashamed or considered a kid/nerd to society. Sh1t, I remember the days when I used to have to hide the fact that I played video games. That sh1t is unheard of now thanks to this man. I can be proud to be a gamer.
I'm sick of all those ungrateful blog b1tches that poke fun at him yet he's one of the main reasons they're making money today. He and the playstation brand are the reasons why Nintendo tries so hard to innovate and the reason why the xbox even exist. The PS3 strategy is brilliant in my eyes and from a business standpoint Sony stands to make more money than it ever did.
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But is the cost that much more? I think we have for every article from a "reliable source" saying that the PS3 is difficult to develop for, theres an article from a "developer" saying that its not much more difficult and easier then the PS2 when it was launched.
All this Anti-PS3 BS is doing one thing for the PS3, advertisement, because it takes one official statement from Sony or anyone who is making games for the PS3 for it to reach the masses who doubted it.
Every time Sony smashed stupid rumors it helps them. Every time competition starts to say bad things about the PS3, it helps them get their name out.
The Xbox360 isnt targeted to kids either. You may not see parents buying a PS3 for their kids, but neither will they buy a Xbox360. Nintendo Wii has that market.
Its just going to take time before everyone realizes that the PS3 will be a major success. They will have over a million of units at launch and therefore they will break the PS2 sales record easily.
600 bucks today is just about the same as a few hundred a decade ago. I Remember the NES launched at 300 dollars. 300 back then was alot of money, not many people knew anything about games and it wasnt a cheap system either. SNES launched at 200 bucks.
Who in their mind wouldnt buy a 500 or 600 blu-ray player with all the entertainment features that the PS3 has? Or would they opt for the more expensive 1000 Bluray players that does nothing else. Features will sell the PS3 to people out of the gaming market.
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However, I have to continue to disagree with the price point. I don't see a similarity in paying $200 for a SNES and paying $600 for a PS3.
I paid $200 for an SNES. Hell, I even paid $400 at launch for a Sega Saturn. But i will not under any circumstances pay $600 for a PS3.
Also, the same people that see the great deal in buying a $600 Blu-ray player are the people who own an HDTV and are videophile enough to want to re-purchase their DVD collection for the higher clarity level that they will get from the new format. I think that group is not the market Sony should be aiming for with a console they need mass market penetration with.
I still think the uninformed masses will see the Playstation (which is a well known "game" brand) name and a $600 price tag and say "$600 for a video game, thats nuts!!!"
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The article has a huge point that is valid, a lot of folks are thinking the 360 is expensive for games, and they won't even touch a PS3 @ 600$, and these are not just "casual" gamers.
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Few things to remember about the Sony Strategy:
* Price elasticity determines whether the high price will make a difference in the console war.
* Price makes a differences when there are viable substitutes.
* PS3 without Blu-Ray would make 360 a viable substitute. Sony would lose market share if they didn't go with Blu-ray
* Differentiation is key! Sony introduces motion sensing to take away Nintendo's difference.
* Making the PS3 a media powerhouse means they can market to a bigger audience. Growing the industry yet again.
* HDTV adoption is growing rapidly. SD will be extinct by early 2009. We'll soon say, wow I can't believe I used to watch TV in SD.
* People don't have to rebuy all their movies to Blu-Ray just because they get an PS3. Why do people say that? It's ridiculous. The PS3 can easily play your original DVDs. You want the new Spiderman 3 movie? Well why not get it in HD for a few dollars more than a DVD. You already have a PS3 which is the center of your entertainment center. Is about buying new releases and enjoying them in much better quality. Now if you want to watch your old classics in HD, well the option is there but is an option.
Has Sony priced themselves out of the market? No they have just distanced themselves from the competition. It's actually quite brilliant but many just can't get over the price to see how smart this is. People are buying $400 ipods like their's no tomorrow yet they can't pay for a PS3? I guess music lovers have much more money than gamers. But considering the average gamer makes much more than the avg salary (according to recent studies, we're smarter too =) ) I wouldn't be too worried. Parents buying consoles for their kids is an old way of thinking (this was Nintendo's Market 10 years ago). When you hear an analysis say this you have to warn yourself that this guy is behind the times and knows little about gaming today. Games are NOT just for kids anymore. Sony changed this and doubled or tripled the size of the video game industry. Kids will get PS3s but not now, they follow their 20something brothersin getting one when the prices drop. If you believe that parents buying consoles for their kids is what determines who wins this generation than yeah the Wii will definitely win this Gen, but remember that the avg gamer is in his/her mid twenties. Thanks to who? That's right the *****1ng Playstation!
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The advantage of waiting is that development costs come down and you have a larger install base to market to. As a developer I want to market my game to 20 million people instead of 4 million people. There is a bit of rolling the dice but you're bound to come out with more sales than if you were out the gate first. Teams will flock to whatever system is selling the most hardware.
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Has everyone forgotten that there's a $500 system, and it's got everything the X360 Premium has?? And don't BS about the 360s CURRENT price, because it was $500 last Christmas, and people still bought it, AND *****ed about the price.
And asking Ken Kutaragi to step down is like Nintendo tossing out Shigeru Miyamoto. It's insane! Miyamoto has nearly the same views as Kutaragi when it comes to the market, and both have contributed too much to their respected companies, and have shaped gaming as we know it. Don't forget that.
Anyways, I can't picture developers NOT creating for the PS3. Sure, they're leery right now because the console's future isn't foreseeable. IF the 2-4million consoles sell out this Christmas season, then we'll witness a rapid growth in the PS3 library, just like we saw with the PS2, and currently with the X360.
HOWEVER, for developers to forsake a strong brandname like Playstation is still not impossible, though. Remember the developer shift from Nintendo to Sony during the N64/PS1 console war? Nintendo was the 'c*** of the walk' (damned filters), and yet they fell, hard.
However, until the system ACTUALLY LAUNCHES, don't count Sony out, yet.
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I have 2 friends that work at Gamestops: one in a middle class suburb area, the other in an upscale mall near the wealthy part of town. They both tell me that the PS3's high price turns off most all of the customers, he said customerse are nowhere close to as excited as when the 360 comes out.
Blu-Ray and HDDVD both have a really low demand in the market. The vast majority of DVD users feel no need whatsoever to upgrade their current player. Especially when this dumbass Kutargi started another format war.
The motion sensing on ps3 controller is a weak ripoff of what nintendo did. Check out the video on IGN: Pelican had the same technology in 98, WITH rumble.
The integration of Blu-Ray is probly the dumbest thing Sony did, it adds massive costs to a videogame machine so you can sit on your ass and watch movies. Personally, I feel like big movie goers dont play games because they arent smart enough.
Analysists predict ps3 wont do well, Sony doesnt know what to call it, they ripped off the Wiimote, they ripped off the "guide" button. Developers view ps3 as a big risk, there is no rumble technology, and most importantly, I dont want one-- I am "that guy" that sony wants to sell to. I have the hdtv, I have the 7 speaker 900 watt soundsytem, I use Monstercables and all that other crap.
Simply put.. PS3 doesnt offer anything that appeals to me at its price.
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do you guys not remember how much PARENTS and other people were willing to pay on ebay?
THOUSANDS UPON THOUSANDS UPONG THOUSANDS of dollars...
this 600$ price tag isn't going to do much...the ps3 will sell to parents, to nerds, to fanboys, to everyone who likes sony.
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two: the first year of any systems launch is for the hardcore and early adopters. i've said this a million times, it seems, but the PS2 only sold 10 million units in it's first year. in year 2, it sold an additional 5 to 10 million units. by year six, it has sold 100 million units and counting. what does that tell you? that the 90 million other people that purchased PS2 did so *AFTER* that first year. and *AFTER* price drops. in six years, i predict the PS3 will be down to $200 for both units. at which point, the masses will gobble it up. why?
three: price drops. Sony is a manufacturer. how you guys can forget that is beyond me. they've been in the manufacturing business for 60 years (they just celebrated that 60th year this May). they have the history and experience, and know how, to refine their manufacturing processes quickly, and reduce cost exponentially. they've already announced that they're switching to a 65nm process,from 90nm, in early 2007. what that could mean for the PS3 next year is a price drop. by possibly $50 to $100. but again, the first year of a console launch is for the hardcore.
lets say the PS3 does drop by $100 in 2007. the 60gig will be $500. the 20gig, $400. out of 100 million Playstation fans, 90 million of them will still be left out in the cold if we go by the model the PS1 and PS2 have established (selling only 10 million units in their first year). 90 million people will have to wait until 2008. but, oh, what's this, *ANOTHER* price drop. that's right, folks, Sony doesn't stop the refining process after year one, and continues to do so throughout their console's lives, leading to more price drops. let's knock off another $100: 60gig: $400. 20gig: $300. but oh ho, the PS3 is still in short supply, selling only an addtional 10 mill for 2008. 80 million PS3 fans are still left out in the cold, and have to wait until 2009, and, yup, you guessed it, more price drops.
four: did i forget to mention the software? by 2007, we'll already be treated to Assassin's Creed, Final Fantasy XIII, and Metal Gear Solid 4. once the PS3 proves that it will sell with the hardcore audience (and out of 100 million PS2 purchasers, it's not hard to believe Sony can sell 2 to 4 million units this year), more 3rd party developers will be confident in jumping on the PS3 bandwagon.
i'm assuming a lot ofyou guys are very young, and don't know that Sony has been using this strategy for 10 years. and it's what's kept them on top for all that time. they penetrate with the hardcore audience, then they slash the price quickly, and couple it with killer software that appeals to the masses. it's a brilliant strategy, and has been proven to work.
to 23: analysts predicted the same exact things for the PS1 and PS2 back in their day. they don't know anything, and it's just paid guesswork. hell, each and every one of us could be analysts, and it doesn't make a lick of difference. the Sony brand is too powerful and respected by the masses to be overthrown. this November 2006 release is for the hardcore. Sony doesn't worry about what the masses think yet, because the system being released this year is not for them.
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HD TVs will have dropped significantly in price by the time the PS3 is ready to be consumed by the masses (in 2009). by that time, the PS3 will be $300 60gig, $200 20gig. i've already seen HD TVs this year for under $800. by 2009, that price could have dropped by *half*. a $400 HD TV, coupled with a $300 PS3 is only $700. also, by 2009, with the success of the PS3 in 2006-2008, it will have garnered more industry support that it already has, so there will be a plethora of Blu Ray movies on the market to take advantage of that $400 HD TV and $300 PS3 you just bought (remember, the 20gig unit is still capable of 1080p resolution, it's just achieved via component cables). like i said before, it's a brilliant strategy. the only thing that could hurt this strategy is if the millions (and i heavily emphasize "millions") of Playstation fanatics don't purchase the system this year. that's highly unlikely (their main audience is over the age of 20), so i think the PS3 will do just fine.
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they have their specialties, and while the outsiders may see this as desparity between the company, the three of them are just focusing on one of the many aspects of the PS3. it's a monster of a machine, and it what they dreamed the PS2 would be, but couldn't pull it off with that technology. now, they have the technology, they have the support, so they're moving forward. Sony seems to want to merge into one brand. The Playstation Brand. it wouldn't surprise me in 10 years they release an HD TV bearing the Playstation Brand, that you can hook your PS3 up to, and your Playstation branded surround sound system.
they want to dominate your living room. and really, is that a terrible thing? from my experience, Sony makes excellent high-end consumer electronics, so it's not like the quality will be *****ty. from a gaming perspective, there should always be competition, and i don't think Sony hates competition, in fact, i think they welcome it, as it just forces them to up *their* game. remember on the PS1, one of the major complaints about the PS1 was that Sony didn't have a stable of strong 1st party titles. what happend on the PS2? they took those criticisms to heart, and some of the best gaming experiences on the PS2 came from Sony IPs (the Metals Gears and Final Fantasies excluded). God of War, Ratchet and Clank, Sly Cooper, Jak and Daxter, Shadow of the Colossus, etc, were all from Sony.
the major complaint for the PS2 was that it's online sucked. so what is Sony doing? taking a proven business model (X Box Live, which basically took Sega's proven business model for online), and are launching their own online gaming service comparable to their competitors, who, even Sony admits, have done an excellent job bringing that content to gamers.
gamers also complained that the PS2 didn't have the graphical oomph of it's competitors. so Sony pumped this system so full of power it's a wonder it doesn't develop it's own AI and run amok. of course, that quality comes with a price. the computer i built is roughly the equivilent of an X Box 360. it's run me so far, close to $1000. if i were to try and build an computer the exact equivilent of the PS3, it'd run me over $2000. i think i'll stick with the $600 PS3 instead.
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"but Playstation 3 is by no means something that has inelastic demand."
I am not saying the PS3 is perfectly inelastic. Demand would drop considerably it was $1000. If you look at video game history, gaming consoles have a low cross elasticity of demand. In plain english, what I am saying is that there is no substitute for a PS3. If you want one for what it offers, there is no way you would settle for a cheaper console. Think clothing, Old Navy sells much more than say Gucci because it's much cheaper and if you take out the tag you wouldn't be able to tell the difference.
"I have 2 friends that work at Gamestops"
I blank out when a comment starts like this. Notice how some people say things similar to this "damn everytime I wear these shoes it rains", but if he were to actually record the number of times it rained vs when he wore those shoes he would notice that he his comment was driven by his own emotions similar to your 2 friends at GameStop.
"The vast majority of DVD users feel no need whatsoever to upgrade their current player"
People fear change. It takes great efforts into moving people into better standards (look at broadband). Why do you think it is so important for the PS3 to succeed not just for Sony but for all HDTV manufactures, Movie studios and many other companies who have made great investment in HD. The PS3 will even help in broadband adoption in the US just like I'm sure the XBox has but in a large scale.
"Especially when this dumbass Kutargi started another format war."
I dont think Kutaragi had anything to do with the creation of Blu-Ray. And who told you is just sony? You have Panasonic (Matsu*****a), Samsung, Pioneer (all releasing blu-ray players) just to name a few. If anything it's lonely toshiba (only toshiba HDDVD players I'm afraid) that started this war.
"The motion sensing on ps3 controller is a weak ripoff of what nintendo did"
Rip off or not, is about taking away the difference. I personally think the new contoller is great and will definite improve gameplay.
"Pelican had the same technology in 98, WITH rumble"
Tech was bad then, this is leaps beyong that, not to mention that the games will now supported 6 degrees of movement instead of just mapping the direction pad.
Sony did, it adds massive costs to a videogame machine
"The integration of Blu-Ray is probably the dumbest thing Sony did, it adds massive costs to a videogame machine "
You call $100 over the competition massive? Plus blu-ray drives will drop to the cost of a dvd drive (dont believe me compare DVD vs CD drives). It's only a matter of time. Dumb? I would say brilliant.
"Analysists predict ps3 wont do well,"
For every analys that say PS3 wont do well there are 10 that say it will crush the competition. You have just read, what, one maybe? Who most likely just obsesses with price only and thinks all gaming consoles are the same. Or maybe just wanted to get in the news for some free adversiment to his financial company. Do a search on google and you'll find many more positivie analysis.
"I am that guy that sony wants to sell to...PS3 doesnt offer anything that appeals to me at its price"
Can't argue with that. But after a few price drops and seeing the games coming out for the system, I am sure you will definitely consider it. As a manufacture, that's all you can really hope for.
BTW just because one blog entry comes out about some guy's opinion that game developers might not want to create games because of the PS3 development cost does not mean developers aren't jumping on the bandwagon. You guys are easily convinced, no wonder MS FUD strategies work so well. The PS3 has more titles announced than the 360 and the Wii put together. Your kidding yourselves thinking developers won't go to the platform that dominated for the last ten years.
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"but Playstation 3 is by no means something that has inelastic demand."
I am not saying the PS3 is perfectly inelastic. Demand would drop considerably it was $1000. If you look at video game history, gaming consoles have a low cross elasticity of demand. In plain English, what I am saying is that there is no substitute for a PS3. If you want one for what it offers, there is no way you would settle for a cheaper console. Think clothing, Old Navy sells much more than say Gucci because it's much cheaper and if you take out the tag you wouldn't be able to tell the difference.
"I have 2 friends that work at Gamestops"
I blank out when a comment starts like this. Notice how some people say things similar to this "damn everytime I wear these shoes it rains", but if he were to actually record the number of times it rained vs when he wore those shoes he would notice that he his comment was driven by his own emotions similar to your 2 friends at GameStop.
"The vast majority of DVD users feel no need whatsoever to upgrade their current player"
People fear change. It takes great efforts into moving people into better standards (look at broadband). Why do you think it is so important for the PS3 to succeed not just for Sony but for all HDTV manufactures, Movie studios and many other companies who have made great investment in HD. The PS3 will even help in broadband adoption in the US just like I'm sure the XBox has but in a large scale.
"Especially when this dumbass Kutargi started another format war."
I dont think Kutaragi had anything to do with the creation of Blu-Ray. And who told you is just sony? You have Panasonic (Matsu*****a), Samsung, Pioneer (all releasing blu-ray players) just to name a few. If anything it's lonely toshiba (only toshiba HDDVD players I'm afraid) that started this war.
"The motion sensing on ps3 controller is a weak ripoff of what nintendo did"
Rip off or not, is about taking away the difference. I personally think the new controller is great and will definite improve gameplay.
"Pelican had the same technology in 98, WITH rumble"
Tech was bad then, this is leaps beyond that, not to mention that the games will now supported 6 degrees of movement instead of just mapping the direction pad.
Sony did, it adds massive costs to a videogame machine
"The integration of Blu-Ray is probably the dumbest thing Sony did, it adds massive costs to a videogame machine "
You call $100 over the competition massive? Plus blu-ray drives will drop to the cost of a dvd drive (dont believe me compare DVD vs CD drives). It's only a matter of time. Dumb? I would say brilliant.
"Analysists predict ps3 wont do well,"
For every analyst that say PS3 wont do well there are 10 that say it will crush the competition. You have just read, what, one maybe? Who most likely just obsesses with price only and thinks all gaming consoles are the same. Or maybe just wanted to get in the news for some free advisement to his financial company. Do a search on Google and you'll find many more positive analysis.
"I am that guy that sony wants to sell to...PS3 doesn't offer anything that appeals to me at its price"
Can't argue with that. But after a few price drops and seeing the games coming out for the system, I am sure you will definitely consider it. As a manufacture, that's all you can really hope for.
BTW just because one blog entry comes out about some guy's opinion that game developers might not want to create games because of the PS3 development cost does not mean developers aren't jumping on the bandwagon. You guys are easily convinced, no wonder MS FUD strategies work so well. The PS3 has more titles announced than the 360 and the Wii put together. Your kidding yourselves thinking developers won't go to the platform that dominated for the last ten years.
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Who's telling people that they have to replace their movie collections. I really want to shoot them. WTF... You don't I repeat you don't have to replace anything. Where are you getting that idea? You think if you have a non HD movie it wont play on your PS3? It's drives me nuts when I see this comment and apparently it comes up like 10 times for every blu-ray discussion.
Anyway sorry for the double post, I didn't check my comment before submitting.
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people are sheep, so even if the PS3 is pure c-r-a-p its gonna outsell the rest, just because playstation is a strong brand name.
xbox360 is a joke, a lot of really great textures, but 3D backgrounds move in a choppy twitching manner when scrolling. Id rather play a SNES game , or C-64 game or whatever as long as the motion is smooth.
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I have both an Xbox and PS2 but at least I'll be able to take my PS2 games forward. MS screwed me. Promise, Lie, Promise, Lie, Promise, Lie - the MS pattern. "Fool me once shame on you, Fool me twice shame on me."
It's a ridiculous argument the PS3 is pricey given that people are spending way over the price of a PS3 on iPods and accessories etc. And doing so for *multiple* family members. And the xbox is only $50 less with ALOT less functionality. I guess if your a brick you'd buy the Xbox 360.
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No, _you_are_ a brick when you make such stupid comments. :|
By all means state your opinion on consoles, but it's stupid to make such remarks about people based upon the products they choose to buy.
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You're comparison of upgrading from DVD to HD and Dial-up to broadband is the worst ever, as well as the upgrading your library. You DO have to upgrade your movie library, otherwise, why the hell did you buy a blu-ray/HD-dvd player ? As well, the jump from DVD to HD is not that great, definately not 200X as better (dialup vs my cable connection) Despite what you think, no one needs HD right now, blu-ray or otherwise....
Now, I can objectively look at this article and see some truth to it. Maybe he doesn't care about the poor people, and if he can sell ridiculously overpriced tech to a core amount of people and make a profit, and not really have to worry about being original or creative, just make things shinier, then why not ? Bill Gates created a multi-billion dollar company, why is he just giving it up ? People get old (i'm sure many of you don't understand that) and their thoughts change and priorities are put in perspective...ahh well, guess it's like talking to a brick wall sometimes....
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No, _you_are_ a brick when you make such stupid comments. :|
By all means state your opinion on consoles, but it's stupid to make such remarks about people based upon the products they choose to buy."
I'm quite sure he meant "If you want a brick, you'd buy the Xbox 360."
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and the person that posted #22 is an idiot. The PS2 was never bundled at $500. I bought my PS2 for $300 at launch + extra for Tekken Tag Tournament (not bundled). The PS2 only bundle was Gran Turismo 3 bundle that came out a year or so after launch, with no price difference. Get your facts straight moron!
#21 Ken gets my vote as well
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Oh gee, silly me, I thought he had something against the 360!!! *ROLL EYES*
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Also,
"You DO have to upgrade your movie library, otherwise, why the hell did you buy a blu-ray/HD-dvd player ?"
NO YOU DONT! Why couldn't you just KEEP all your DVDs and buy NEW movies in BluRay/HD DVD?
Plus I think there were some earlier comments about excluding BluRay from cheap PS3s. Um that's kinda a bad idea if PS3 games are gonna be released on BluRay no?
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By the way, did anyone else notice something funny about the picture like I did? He's scratching his b@11s with his left hand, and distracting everyone from noticing by pointing at the shiny PS3 with his right hand! LOL!
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