Struggling Sony Computer Entertainment who are seeing their share of the gaming market evaporate under intense pressure from Nintendo and Microsoft’s Xbox 360 has appointed a new CEO to head the operations globally.
Andrew House, Chief Marketing Officer and Group Executive of Sony Corporation, has been named President, Chief Executive Officer (CEO) and Co-Chief Operating Officer (Co-COO) of Sony Computer Entertainment Europe (SCEE) as of May 1, 2009.
In his new role, House will be responsible for managing the PlayStation business across nearly 100 countries including Australia. He will have responsibility for PlayStation 2 and 3, PSP as well as the Playstation Network. (See seperate story on appointment).
The move comes as the US media start to raise questions about the long term viability of Sony’s Playstation 3 following the release of new figures over the weekend that show that the Blu ray gaming console is slipping even further behind as both Nintendo with their highly popular Wii and Microsoft with a discounted Xbox 360 take share away from Sony.
Leading US technology magazine PC World asked the question is the Playstation 3 doomed? They also said “the situation has never been more dire for Sony’s premiere gaming console”.
Industry sales in March plunged 17 percent from the same period a year earlier, according to data released this week from NPD Group, a market research firm. The downturn marked a big reversal from recent months, when the industry posted healthy growth despite the deteriorating economy. The March sales decline was steep enough to cancel out the growth the industry posted in the first two months of the year.
The results are as follows:
| MARCH | 2009 | 2008 |
| Nintendo Wii | 601 | 721 |
| Nintendo DS | 563 | 698 |
| Xbox 360 | 330 | 262 |
| Playstation 3 | 218 | 257 |
| Playstation 2 | 112 | 216 |
| Playstation PSP | 168 | 297 |
| Based on NPD data |
The stand out performer is the Microsoft Xbox 360 which due to big discounting is not only outselling the PS3 but has actually increased in sales in March 2009 over 2008.
Contributing to Sony’s problems in Australia where both the PS2 and PS3 are proving less popular than in the past is the inclusion of an expensive Blu ray play in the PS3. For example in Australia a consumer can now buy the Xbox 360 for $299 and a separate Blu ray player and DVD upscale player for $199. Combined this is $200 under the recommended retail price for a Sony PS3.
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Another problem for Sony Computer Entertainment is revealed in the latest US gaming sales figures which show that the top 3 games are Xbox 360 or Nintendo DS Games.
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