Thursday, April 28, 2011

Sony Hopes PlayStation Network Will Return “Within a Week”

The saga of the PlayStation Network has gone on for a week now, and it looks like it could quite possibly stretch out to a total of two weeks according to Sony. According to a newly updated FAQ from the company, at least some services should be back with the next week.

We have a clear path to have PlayStation Network and Qriocity systems back online, and expect to restore some services within a week.

Exactly which services those will be is a mystery, but it certainly doesn't sound like you'll be able to expect a return to full functionality any time soon. Guess those old hopes of this just lasting a day or so are definitely out the window.

Despite the fact that this is greatly crimping the playing style of a lot of users, Sony is going to have to tread very carefully in light of the news that users of the PlayStation Network may have had their credit card data compromised. While it is certain that players would like to get back on line to play some Call of Duty: Black Ops, or downloaded the latest DLC for their favorite games, security is going to have to be the first priority in the current rebuilding of the network that is going on. This isn't just for the sense of safety that the users want, but also Sony doesn't want to take another black eye to their reputation like this again any time soon.

Hopefully the PSN will return sooner rather than later with all of the necessary fixes so something like this doesn't happen again. Now that Sony has been shown to be vulnerable, there is sure to be an upswing in the number of other hackers out there who want to test their mettle against a reinforced network. Sony has said it hired an outside security firm to work with them through this matter, so hopefully they will be thinking of everything possible, but only time will tell.

What do you think? Would you rather PSN come up now, as is, or are you willing to wait for the improved security?

PlayStation Network User Information Stolen in Hack

The PlayStation Network has been down since the middle of last week. The result of the outage, as users were notified on Saturday, was to rebuild the network security in light of an unwanted, external intrusion. Now Sony has come forth and issued an update declaring that personal user information was stolen during the intrusion.

The data includes usernames, passwords, names, birth dates, addresses, purchase history and, Sony warns, potentially credit card information. Here's how Sony's putting it

"we believe that an unauthorized person has obtained the following information that you provided: name, address (city, state, zip), country, email address, birthdate, PlayStation Network/Qriocity password and login, and handle/PSN online ID. It is also possible that your profile data, including purchase history and billing address (city, state, zip), and your PlayStation Network/Qriocity password security answers may have been obtained. If you have authorized a sub-account for your dependent, the same data with respect to your dependent may have been obtained"

And, concerning credit card data, Sony goes on...

"While there is no evidence at this time that credit card data was taken, we cannot rule out the possibility. If you have provided your credit card data through PlayStation Network or Qriocity, out of an abundance of caution we are advising you that your credit card number (excluding security code) and expiration date may have been obtained."

As Sony's stated leading up to this announcement, they have taken the network down in order to rebuild its structure with a more rigorous effort on security. That does not change the fact that user data has been relinquished, thus likely leading to a large customer backlash.

In the update on PlayStation.Blog, Sony indicates that they should be finished with their work on the PSN and have it back online within the week. They also give some websites and contact information for credit reports and identity fraud protection. What they have not indicated is what they plan to do for the customers that have been affected by this attack as a result of their previously, apparently, lacking network security.

For those that have lost personal information and are subject to identity theft and credit fraud, the news that the PSN will be up by the week's conclusion is likely less than warming. As more develops with this incident, we'll be on it."

Wednesday, April 27, 2011

Nintendo president: 3DS sales weaker than expected

Speaking during an investor briefing on Tuesday, Nintendo’s president Satoru Iwata said that sales of his firms new 3DS portable gaming system failed to meet expectations. “Sales of the 3DS have been weaker than expected since the second week of launch in the US and Europe,” Iwata said while discussing the device’s launches in Europe, the United States, and in Japan. Nintendo had expected to sell 4 million units last quarter, but sales fell short at 3.61 million units. Iwata said that he hopes sales will increase as much as 40% during the next year, AFP reported. We reviewed the 3DS earlier this month and argue that the gaming system doesn’t offer enough features to justify its $250 price point.

Sony drops price of PSP in Europe

Sony has officially dropped the suggested retail price of the PSP in Europe to €129.99 ($187.29). This follows the company’s February 25th announcement that it was slashing the price of its gaming system to $129.99 in the United States. Sony also said that — beginning on April 14th — PSP owners will be able to access an unlimited cloud-based music service called Music Unlimited. Powered by Qriocity, Music Unlimited will allow PSP owners to listen to customized music channels or sync up with tunes stored on their PlayStation 3, PC, or other Sony devices. “The price cut is aimed at increasing adoption of the player in Europe,” said Sony spokesperson Satoshi Fukuoka. The move may also be tied to the recent launch of the Nintendo 3DS.

Gaming and a girl gone wild: Sony Ericsson looks to the past to define the future

According to data released by The Nielson Company in March, Sony Ericsson’s share of the U.S. smartphone market is barely a blip on the radar. Apple and RIM combine to own more than half the market, HTC is coming up behind them with 19%, Motorola holds 11%, Samsung has a 7% share and Sony Ericsson sits somewhere in the “Other” category, grouped among an undefined number of nameless manufacturers that combine to share roughly 3% of the smartphone market in the U.S. But Sony Ericsson smartphones are preparing to invade American soil, and the company’s assault just started with a boob-stab.
Nearly every major research firm that covers the wireless industry has predicted that Android will continue to grow until it becomes a smartphone platform even more dominant than Symbian was in its heyday. And Google’s mobile OS is well on its way; major players like Samsung, HTC and Motorola have flooded the market with so many Android devices, it is becoming the go-to platform for consumers by default. Millions of users around the world seek out Android for its flexibility and its feature set, of course, but millions more buy Android phones simply because they’re there. Android is what carriers are selling, so Android is what subscribers are buying.

And so a new challenge is born: how does one manufacturer differentiate its devices from the hoards of other Android phones that tout nearly identical specifications, similar features and a similar user experience?

The first generation of devices use a UI layer to differentiate themselves from other manufacturers’ offerings. HTC has its Sense UI, Samsung has TouchWiz, Motorola has the ever-changing MOTOBLUR UI, and so on. But it’s not enough. These UI layers often add a great look and some additional functionality to Android phones, but beyond all the smoke and mirrors they’re still Android phones and they’re still quite similar.

So what’s next?

Rumors of a “PlayStation Phone” go back years, but Sony Ericsson was thinking bigger. One PlayStation Phone would only take the company so far, while an Android-based, PlayStation Certified mobile gaming platform could span numerous devices with various form factors that might appeal to different demographics.

And gamers… what a market to address. Sony has sold nearly 50 million PlayStation 3 consoles and about 103 million original PlayStations to date, and its PlayStation 2 console is the most popular video game system of all time with nearly 150 million units sold. The gaming industry is massive, and the Sony half of Sony Ericsson’s joint venture certainly knows gaming.

So for Sony Ericsson, that differentiating factor was actually born more than 16 years ago in December 1994, when Sony released the PlayStation gaming console. Gaming is in the company’s blood, and it will no longer hide from its heritage. What’s more, gamers are hungry for a smartphone option that affords a more complex and attractive gaming experience. Flicking birds at pigs is great for killing a few minutes while taking a break, but most mobile games don’t even come close to providing the immersive experience afforded by a dedicated console. Developers are beginning to create more immersive games for popular platforms like iOS, but the iPhone’s form factor and other limitations often result in a low ceiling for iOS games.

The mission is clear, and Sony Ericsson’s upcoming Xperia PLAY is the first device to feature the company’s new PlayStation gaming platform for smartphones.

But the smartphone market is anything but a field of dreams, where simply building a great device will bring millions of eager customers to a manufacturer’s doorstep. Building a product is only part of the battle. Sony Ericsson has to aggressively attack carriers around the world so its gaming phones are accessible to customers, and it must also climb to the top of every mountain and shout about its new phones as loud as it can. Or it could opt for a triple-kill.
Sony Ericsson has identified the U.S. as a key market for its new breed of smartphones, but the U.S. can be a tough nut to crack; just ask Nokia. Carriers are the only option for a successful route to market, but in many cases the real fight begins after a company works out a carrier deal. Without a solid marketing and advertising effort, even the most capable phones are doomed to collect dust on store shelves.

Enter Sony Ericsson’s creative team and McCann Worldgroup.

When it comes to advertising, you can’t game gamers. Young or old, video game fans are a discerning, finicky breed and influencing their buying decisions is a challenge creative professionals have struggled with for decades. There are several approaches that have proven successful over the years, however, and the most successful video game franchises in history have often left a trail of brilliant advertising campaigns in their wake.

Advertising is easy to dismiss, but there’s a reason more than $500 billion was spent globally on advertising in 2010. And the value of solid advertising can extend far beyond the immediate return garnered by sales of a specific product. Successful advertising campaigns can stick in the consumer’s head for weeks or even months, resulting in a mind share victory that might even impact sales for years.

“Throughout the years, everybody was speculating and waiting for what everyone was calling, up until now, ‘the PlayStation Phone,’” Sony Ericsson’s Head of Marketing Activations for the Americas, Adaliz Vicens, told BGR in an interview. With so much riding on the device, which will be the first to bring PlayStation gaming — Sony Ericsson’s new point of differentiation — to the Android platform, Sony Ericsson had to swing for the fences when introducing its coming smartphone to the masses.

The company started strong with a commercial that premiered during Super Bowl XLV, but a series of Web-only promotional spots really set the Internet abuzz last month. While the audience for these spots might not have been Super Bowl-sized, the hilarious premise and the soft spoken starlet who was able to transform herself into a swirling ball of rage at the drop of a hat — or, at the drop of the Xperia PLAY’s dedicated game controller — will remain on the minds of millions of viewers for quite some time.

The promos were the brainchild of acclaimed creative firm McCann Worldgroup, and were actualized by Creative Director Sean Bryan and his team. They star actress and comedian Kristen Schaal, who manages to pull off a unique brand of schizophrenic comedy perfectly.

“We knew we wanted to get somebody who had two sides to them because the phone has two sides to it,” Bryan said during an interview with BGR. “So we started off talking about somebody who has a very clean-cut, presentable, official side, and then when they open [the Xperia PLAY], can go to a more intense or out-there side. Some weeks later we arrived at Kristen, who was sort of the perfect find for that; and boy, did she ever bring a lot to the spots in production.”

Schaal — perhaps best known for her work on HBO’s Flight of the Conchords, her quirky segments on Comedy Central’s The Daily Show with Jon Stewart and her voice work for Disney’s Toy Story 3 — is undoubtedly the star of the show. And yet she still manages to leave the viewer with a strong desire to pick up an Xperia PLAY and shoot someone in the face… once his or her bellowing laughter subsides, of course.

But it’s not just hardcore gamers Sony Ericsson is after, and the recurring phrase from Sony Ericsson’s campaign points to a broader range of consumers who might find the device appealing. “The smartphone with everything you need… and the one thing you want,” the ads state. This is an important message for Sony Ericsson to convey as it tries to avoid having its new smartphones painted into a corner.

“We really wanted to say two things with these communications and really, with everything we’ve done about the phone,” Bryan said. “On its own, without the gaming functionality, it’s a really top-notch smartphone. And then when you slide it open, it kind of turns into a whole different experience.”

Sony Ericsson sees a huge untapped market in young professionals who need a modern, capable smartphone but also have a suppressed urge to return to the gaming roots of their childhoods. “Lapsed gamers,” as Bryan calls them.

“[The Xperia PLAY] is meant to reacquaint you with that gamer side,” said Bryan. ”There’s a lot of people out there whose gaming has been reduced to Doodle Jump, or less immersive gaming experiences.” And Sony Ericsson’s new smartphone is designed to give them the more immersive gaming experiences they crave — knowingly or unknowingly — while also providing high-end specs and all of the functionality one might need in an Android smartphone.

While conducting research during the development process that ultimately yielded the Xperia PLAY, Sony Ericsson found that approximately 65% of smartphone users play games on their phones, Vicens revealed. With over 300 million smartphones sold last year and an estimated 450 million smartphones expected to be sold in 2011, that’s a pretty huge target market. Add to that the hoards of “lapsed gamers” who might might not currently spend much time with cell phone games due to the lack of a truly immersive experience, and Sony Ericsson is seemingly on a path with limitless potential.

The shot heard ’round the world is said to have instigated the Battle of Concord, marking the beginning of the American Revolutionary War. It may very well be that the boob-stab heard ’round the world, delivered during what might now be referred to as Schaal’s Battle of Conchords, will help Sony Ericsson prepare for war as it takes on the giants of the smartphone industry in the U.S. and around the world.

Tuesday, April 26, 2011

Nintendo may drop Wii to $150 on May 15th

Nintendo may drop the price of its Nintendo Wii game console from $200 to $150 on May 15th, Engadget is reporting. The new price will likely help Nintendo compete better against Microsoft and its Xbox 360 4GB console —which currently retails for $199.99. According to recent figures from NPD Group, Nintendo sold 454,000 Wii consoles during the month of February, far behind Microsoft’s 535,000 Xbox 360 sales figure. Similarly, Nintendo reported weaker hardware sales in its Q3 earnings report, so the move could help it reignite consumer interest.

Nintendo moves 400,000 3DS units during first week of U.S. availability

In an interview with USA Today, Reggie Fils-Aime, president of Nintendo of America, confirmed that Nintendo sold nearly 400,000 of its 3DS units in the week following its March 27th launch. That’s the same figure Nintendo sold in Japan on its first day of availability when it launched there in February. “We are very satisfied with this start and we look forward to the momentum that we will build on the Nintendo 3DS with the launch of the E-Shop, the launch of the 3-D trailers for Hollywood movies, and the launch of The Legend of Zelda: Ocarina of Time in mid-June, as well as the launch of Netflix later on in the summer,” Fils-Aime said. We noted the glaring lack of services like Netflix and an app/game store in our recent Nintendo 3DS review, so we look forward to those updates. In addition to solid 3DS sales, Nintendo sold more than 460,000 units of its previous-generation DS portable gaming consoles, and 290,000 Wii consoles during the month of March.