Why Sony’s PlayStation Vita Business is in Trouble

Summary

Sony’s PlayStation Vita has not fared well in the gaming hardware business. It has only sold around 2 million units since its launch, which has caused Sony to cut its sales forecasts. In contrast, Nintendo’s 3DS has sold around 17 million units. Meanwhile, the rise of smartphones and tablets has also affected the sale of handheld gaming devices. Sony has insisted that the Vita business is a marathon, not a sprint, but experts disagree, arguing that failing to come out of the gate strongly could spell trouble for the company. Game developers are concerned about their future in the Vita ecosystem, and Sony may need to cut the price of the device to boost sales.

The Vita Business is a Marathon, Not a Sprint: Is Sony Making a Mistake?
Historical Successes in the Gaming Industry: Why Coming Out of the Gate Strongly Matters
Nintendo’s Similar Situation with the 3DS: What They Did and What Sony Isn’t Doing
Game Developers’ Concerns About Vita’s Future
Conclusion: Sony Must Do Something to Turn the Vita Around

The Vita Business is a Marathon, Not a Sprint: Is Sony Making a Mistake?

Sony has claimed that the PlayStation Vita business is a marathon, not a sprint. However, this may not be the right mindset for a company that is falling behind in the gaming hardware business. Experts argue that failing to come out of the gate strongly could spell trouble for Sony, as the gaming industry is unforgiving. The rise of smartphones and tablets has also affected the sale of handheld gaming devices, and Sony may need to make some changes to remain competitive.

Historical Successes in the Gaming Industry: Why Coming Out of the Gate Strongly Matters

Looking back at the history of the gaming industry, it is clear that coming out of the gate strongly matters. Successful consoles such as Atari’s 2600 and Nintendo’s NES were huge hits in their first Christmas season. Customers immediately understood the value proposition and loved the gameplay. Sony’s first PlayStation also did not have to come from behind, and it got ahead of Sega’s Saturn. It sold so many units that Nintendo could never catch up. If a company does not come out of the gate strong, it may face difficulties in staying competitive.

Nintendo’s Similar Situation with the 3DS: What They Did and What Sony Isn’t Doing

Nintendo faced a similar situation with the 3DS, which launched at $250, the same price as the Vita. However, people were not buying it, so Nintendo drastically cut the price of the 3DS. It put all its resources into finishing major 3DS franchises and got them out for the first crucial Christmas season. This move managed to turn things around, but there was a cost to it, as Nintendo had its first money-losing year ever because of the 3DS price drop. However, Nintendo knew that in the long run, it was worth it. Sony, on the other hand, has stated that it will not cut the price of the PlayStation Vita this holiday season, which could be a mistake.

Game Developers’ Concerns About Vita’s Future

Game developers are concerned about their future in the Vita ecosystem. One developer said to Gamasutra, “given how much time and money we have invested into Vita development, I am extremely concerned about our future as a studio.” If the Vita does not start out strong, game developers may start looking for other platforms that are sprinting to the finish line. Sony needs more game titles and exclusive content to encourage customers to buy the Vita, but this may not be enough without a price cut.

Conclusion: Sony Must Do Something to Turn the Vita Around

In light of Sony’s struggles in the gaming hardware business, the company needs to do something to turn Vita around. Failing to come out of the gate strongly could spell trouble for the company. Sony needs to cut the price of the device, release more game titles and offer exclusive content to make the Vita more appealing to customers. Game developers are also concerned about the future of their studios, and this is something that Sony needs to address. The gaming industry may be a marathon, but Sony needs to sprint to stay competitive.