PS3 Accessories Likely to Stay ‘Open’

Source:NextGeneration
It looks increasingly likely that Sony will not be requiring license fees from PS3 peripherals manufacturers. This is in contrast to Microsoft, which is taking control of this end of its business. How has this come about?

……………

PS3 Plan

Industry sources close to the issue have indicated that Sony is likely to keep the status quo for PS3 and require no licensing requirement and no encryption, with the exception of its memory card format. Obviously, this is subject to change, but the best information in front of us from developers and peripheral companies today indicates Sony is happy with the status quo. (We tried to get comment from Sony; no reply).

There are pros and cons for both Microsoft’s new plans and Sony’s current approach.

Microsoft’s argument is that it will be ensuring quality with its licensing program. The bag-and-tag cheap controllers are less likely to make it to market. But accessories manufacturers will have to pay extra money for Microsoft’s blessing, which will be passed on to the consumer.

Sony’s approach, if it continues, will allow for more creativity and lower break-evens on controllers. For Sony, it means missing out on revenue, but also missing out on a lot of tiresome red tape. But, Microsoft would argue, it means the market is open to a lot of crap products.

Why is this so important? Retailers love third party accessories. For retailers, profit percentages on accessories are nearly twice as high as software. Any aspects of the business that affects margin on these accessories are likely to impact retail profitability and consumer price points.

Read The Full Article Here

Source:NextGeneration
It looks increasingly likely that Sony will not be requiring license fees from PS3 peripherals manufacturers. This is in contrast to Microsoft, which is taking control of this end of its business. How has this come about?

……………

PS3 Plan

Industry sources close to the issue have indicated that Sony is likely to keep the status quo for PS3 and require no licensing requirement and no encryption, with the exception of its memory card format. Obviously, this is subject to change, but the best information in front of us from developers and peripheral companies today indicates Sony is happy with the status quo. (We tried to get comment from Sony; no reply).

There are pros and cons for both Microsoft’s new plans and Sony’s current approach.

Microsoft’s argument is that it will be ensuring quality with its licensing program. The bag-and-tag cheap controllers are less likely to make it to market. But accessories manufacturers will have to pay extra money for Microsoft’s blessing, which will be passed on to the consumer.

Sony’s approach, if it continues, will allow for more creativity and lower break-evens on controllers. For Sony, it means missing out on revenue, but also missing out on a lot of tiresome red tape. But, Microsoft would argue, it means the market is open to a lot of crap products.

Why is this so important? Retailers love third party accessories. For retailers, profit percentages on accessories are nearly twice as high as software. Any aspects of the business that affects margin on these accessories are likely to impact retail profitability and consumer price points.

Read The Full Article Here