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The Wii "isn't hurting us", says Sony CEO

Fri 29 Aug 2008 8:26am GMT / 4:26am EDT / 1:26am PDT
Hardware

But Nintendo's business model "may be superior"

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

playstation.com

Sony CEO Howard Stringer has said PS3 sales aren't suffering as a result of the Wii's popularity - even though Nintendo may have adopted "a superior business model".

"The Wii is a well-made device that has found a new target group. For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue," Stringer told Die Welt. "PlayStation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3."

"You also know, however, that our business model is not perfect, and that we make a loss on every console we sell," he conceded. "Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense - it is not hurting us."

Stringer went on, "We are already making more money with the games than we are losing with the hardware."

When asked if Sony would recover the USD 3 billion it spent on bringing PS3 to market, Stringer commented, "Not for as long as I live."

"It will certainly take some time... We are currently at the stage in which we need to get a grip on the production costs. That takes time."

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