Sony's Jack Tretton hopes 2008 'is as bad as it gets'
- Posted July 9th, 2009 at 16:03 EDT by Michael Harradence
Jack Tretton, president and CEO of Sony Computer Entertainment America (SCEA), has conceded that fiscal 2008 proved a difficult time for the platform holder, despite having successfully met its hardware sales targets for the period.
Speaking to Fast Company, Tretton said he hoped that last year 'is as bad as it gets,’ admitting the company found it tough to shift high-end, future technology. However, he remained confident that 2009 would prove a far more successful period.
“Hopefully last year is as bad as it gets. I think all indicators are that 2009 is going better than 2008. In 2008, we had a 38 per cent increase in sales and we hit our ten million-units-worldwide goal for PS3 sales... At the worst possible time, if you're hitting numbers and delivering success... my hope is that as our production efficiencies improve and more great games come to market, the horizon has got to be better for 2009 and 2010.”
"It's like being out there in a storm - it does cause you to question your conviction, and tie yourself to the mast and weather the storm," Tretton continued. "We have hit a very challenging period of trying to sell future technology, a high-end device, but is on the high-end retail pricing spectrum, at a time when people's disposable income is limited. But I think the fact we were successful in that says people are getting the message, that you get tremendous value when you buy a PlayStation product. Yes there are cheaper machines out there, but not ones that deliver the degree of value for the money that ours does."
Elsewhere, he also defended the company’s stance on a PS3 price cut:
“We could've come out with a PlayStation 2.5 for USD 299 or less, and in the first two or three years it would sell extremely well. But there would be a point where people would be going, 'I am not really seeing the incremental leap," said Tretton.
"We feel that we're sacrificing the short term to pay dividends in the long term. People are having short-term thinking - the platform is not even three years old. It was USD 599; it's now USD 399. The focus on pricing is something we appreciate, but you have to have the conviction and the confidence that you are on the right path for the long term and ultimately you'll get all the consumers you want. You won't get them all day one, but we're looking to get them over a ten year period. It's going to take different things to get different consumers."