Hirai to MS: Stop Following Us

June 28, 2006 | By: James Brightman

| More

Sony Computer Entertainment America president Kaz Hirai (right) had some harsh words for competitor Microsoft. In an ironic twist, Hirai suggested that Microsoft has been copying Sony and that MS needs to come up with its own strategies. Hirai also shares his thoughts on next-gen game pricing.

Sony Computer Entertainment America president Kaz Hirai recently made some very interesting comments regarding Sony's battle with Microsoft and the pricing of next-generation games.

While it's Sony that has been accused multiple times of copying Nintendo, or even copying Microsoft when it comes to the PS3's upcoming online service, Sony ironically this time became the accuser. Speaking in the latest issue of PSM the head of SCEA suggested that Microsoft not only follows in Sony's footsteps in the video game business, but that the software giant tends to do that in other industries as well.

When PSM commented that Sony and Microsoft seem to be going down the same path, Hirai responded, "We seem to. Every time we go down a path, we look behind and they're right there - we just can't shake these guys. I wish that they would come up with some strategies of their own, but they seem to be going down the path of everything we do. If you look at their strategy in other business areas as well, they tend to do that."

He continued, "... And the other thing is, you take a look at, for example, the fact that we incorporate the Blu-ray drive from day one. You're not going to be asking me, 'So, talk to me about this Blu-ray add-on that you have. Does it work for games? Is it just for movies?' That's exactly the kind of pitfall you fall into if you launch something that's too early, too premature..."

With the Xbox 360 now on the market since last November, it seems that the standard price for next-gen games has now been established as $59.99. While MS prices its first-party games at $49.99, the vast majority of third-party Xbox 360 software retails for $60. So will this trend continue on the PlayStation 3 when it launches this fall? Unfortunately for consumers, it looks as if that's the case, and judging by Hirai's comments, some games could be priced even higher than $59.99.

"... what I can say now is, I think it would be a bit of a stretch to think that we could suddenly turn around and say 'PS3 Games now $99.99.' I don't think consumers expect software pricing to suddenly double," Hirai explained. "So, the quick answer is that we want to make it as affordable as possible, knowing that there is a set consumer expectation for what software has cost for the past twelve years. That's kind of the best answer I can give you. So, if it becomes a bit higher than $59, don't ding me, but, again, I don't expect it to be $100."

Now obviously Hirai's comments are a bit vague, and certainly right now we're already seeing some next-gen games come in higher than $59 with Collector's Editions, but if the majority of PS3 software is suddenly over $60 that could be a real problem. Consumers are already shelling out $500 or $600 depending on which PS3 SKU they purchase. In the end, all three console manufacturers and video game publishers are competing for a limited number of consumer dollars.