Sony Chief Says PS3 is Risky

Howard Stringer says you gotta take a chance if you want to make it in this cruel world.

Sony chief executive Howard Stringer's main justification for the high price of the PlayStation 3 is that you're being given nascent technology that will show its true potential later - if things go according to the company's finely laid out plans.

"Do you go for a cheaper transitional [product], or do you take a chance on future-proof, higher technology which will keep you going for many, many years?" Howard asked at a briefing in Tokyo, as reported by the Associated Press.

The PlayStation 3 comes in two flavours - one with a 20 GB hard drive for $499 and another with a 60 GB hard drive and a better video connector for $599. The price, which is $200-300 more than Microsoft's entry-level Xbox 360, is down to the Blu-ray drive, which plays one variant of the competing next-generation DVD format, and to the IBM-designed Cell processor.

"The price of the PS3 is high, but you're paying for potential," Stringer said.

"Obviously, it's a higher-risk strategy - as all new inventions are - but if the PS3 lives up to its total potential, then I don't think anyone will be worried about Nintendo or Xbox's cheaper price."

Sony's plan is risky because it relies on Blu-ray, which is battling HD DVD to be the next standard for movies. Hollywood studios are flirting with both suitors, making it hard to pick a winner.

The company said previously that it isn't concerned with keeping its slice of the video game pie and is instead interested in helping video game grow. Meanwhile, Microsoft, Sony's most direct rival in the next generation is determined to beat Sony this time out and says it will sell 10 million Xbox 360s by November.

Alex Wollenschlaeger
Editor, Kikizo Games