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Sony: We can't compete with Xbox's spending

Platform holder says it will "never outspend" Xbox
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Sony has cheekily admitted that it will never be able - or perhaps have the inclination - to spend the same amount on pushing PlayStation as Microsoft does on Xbox.

The news comes as MS launches its most expensive ever marketing campaign for a single game with Halo: Reach.


Meanwhile, Sony's UK team is set to splash out £750,000 on marketing PlayStation Move - hardly small change.

However, when asked if Sony could match Microsoft's megabucks Kinect promotional machine in a new interview, Peter Dille - senior vice president of marketing at Sony Computer Entertainment America - said:

"I don't think we'll ever outspend Microsoft."

That might be true - but it doesn't stop your marketing being particularly cheeky, does it Peter?

How much do you reckon million-dollar advertising affects you, readers?


[ Source: Seattle Times ]

computerandvideogames.com
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Read all 54 commentsPost a Comment
thats because they spend money on quality games like killzone and uncharted 2
BenHotston8371 on 10 Sep '10
Marketing builds Hype and Hype generates Sales. Simples.

Although, a clever marketing Campaign doesnt have to be expensive to generate sales but it certanly helps.

Move, Kinect and Reach will have Huge marketing budgets and this will generate Huge sales for the platforms.

Personally, as I work in advertising I love seeing a huge marketing campaign in action and cant wait to see what they do with the 3 products above :D !
StonecoldMC on 10 Sep '10
I read that as they wouldn't spend it, as they probably could.

Sony aren't exactly in the poor house.
boskersrevenge on 10 Sep '10
Although this is true. MS were untill recently the biggest tech company on the planet. How could they. Theoretically speaking MS would have the cash the buy out the competition if they really wanted to.
WHERESMYMONKEY on 10 Sep '10
Who on the planet can out do Microsoft when it comes to spending?
I can only think of one company and that's Apple.
There's no need to worry about that though Sony are doing well enough, at the end of the day the gap between them and the xbox has constantly shrank so there obviously selling ok. At the moment though they have to accept that the xbox360 will sell more because it's just released a newly designed model so it's having a obvious sales boost and will do to at least Christmas.
StokedUp on 10 Sep '10
stonceoldmc i get what your saying about marketing builds hype and then sales but sometimes games with a load of advertising still end up flopping.
LeonKILLER7 on 10 Sep '10
thats because they spend money on quality games like killzone and uncharted 2


Microsoft if they chose to, can put tons of money into first party developers, and still have millions to run marketing campaigns.

You'd be blind to see otherwise.

It's just Microsoft dont NEED to have first party developers.
KMakawa on 10 Sep '10
Just like arrogant men hyping their bedroom prowess
HBgamer on 10 Sep '10
people tend to overestimate how large MS is,
Sony:
Revenue, $85.983 billion -92nd
Operating Income, $379.024 billion
Total Assets, $123.739 billion

Microsoft:
Revenue, $62.484 billion -119th
Operating Income, $24.098 billion
Total Assets, $86.113 billion
Apple isn't even close to Sony or even MS with $42.910 billion revenue.
Nintendo isn't even close to Apple with $15,755 billion revenue.
Don't get me wrong, these numbers are nothing to scoff at, but they don't compare to either Microsoft or Sony the world's fifth largest media conglomerate (largest is Disney.. LOL!).
AussieCrysis on 10 Sep '10
I wonder how's the profit to spending ratio in both companies.
yourmumwasfun on 10 Sep '10
Cant be bothered to get the quote, but I remember a really depressing statistic that was quantified and shown on Bruce Everiss' blog (dont bother going their now, ever since the Evony court-case he has more or less turned his back on blogging about the game industry) that spending "x" amount of million dollars on improving a games features + gameplay would actually bring you less revenue return as would spending less "x" amount of million dollars on marketing the hell out of a game. Basically, agressive marketing in the games industry is a cheaper and better option than actually putting a quality product. Dunno who to blame for that one. The cynical Don Draper types who do this, or us for being such easily manipulated little monkeys.
woodins on 10 Sep '10
Ultimately, that would be us.

We vote with our wallets, at the end of the day.
boskersrevenge on 10 Sep '10
Ultimately, that would be us.

We vote with our wallets, at the end of the day.


But the shops are closed at the end of the day...
spam23 on 10 Sep '10
Marketing builds Hype and Hype generates Sales. Simples.


I have to agree with Stonecold, marketing is evidently powerful enough to make otherwise sensible people talk like a meerkat.
zombiesinmyhead on 10 Sep '10
people tend to overestimate how large MS is,
Sony:
Revenue, $85.983 billion -92nd
Operating Income, $379.024 billion
Total Assets, $123.739 billion

Microsoft:
Revenue, $62.484 billion -119th
Operating Income, $24.098 billion
Total Assets, $86.113 billion
Apple isn't even close to Sony or even MS with $42.910 billion revenue.
Nintendo isn't even close to Apple with $15,755 billion revenue.
Don't get me wrong, these numbers are nothing to scoff at, but they don't compare to either Microsoft or Sony the world's fifth largest media conglomerate (largest is Disney.. LOL!).


It entirely depends what you’re looking at, on the Fortune Global 500 Microsoft is listed as the eighth most profitable company in the world, Sony aren’t even in the top 50. By largest corporations Sony are 69th, Microsoft is 115th, Apple are 197th, Disney 199th and Nintendo don’t figure from what I can see.

On the FT global 500 Microsoft are 3rd, Apple are 5th, Disney 82nd, Nintendo 142nd and Sony 182nd.

There are too many different ways of rating companies through various means for us to really bother with them.

So instead think about goats wearing hats.
Conkers on 10 Sep '10


So instead think about goats wearing hats.
I'm thinking that just now, a billy goat with a baseball cap on sideways and burberry style fur, driving a Subaru with techno blaring out the windows.
Arrgghh stop, its just too scary.
ensabahnur on 10 Sep '10


So instead think about goats wearing hats.
I'm thinking that just now, a billy goat with a baseball cap on sideways and burberry style fur, driving a Subaru with techno blaring out the windows.
Arrgghh stop, its just too scary.


That's a good start, I like to think about ones with jaunty trilbys and pipes, perhaps with neckerchief as well.
Conkers on 10 Sep '10
"There are too many different ways of rating companies through various means for us to really bother with them."

That's true.

So I judge them purely by what matters to me as a gamer: hardware and games.

That's why I've got a PS3.
Paranoimia on 10 Sep '10


That's a good start, I like to think about ones with jaunty trilbys and pipes, perhaps with neckerchief as well.
Nice!! The neckerchief is so vastly underused nowadays, i believe it's due a comeback and if that has to be through the goat fashion world then so be it.
ensabahnur on 10 Sep '10
I've never bothered with advertising, microsoft could spend as much money on advertising they want but i still dont want a 360. i only buy stuff if i've seen summat running or if i played it myself.
Laughlyn on 10 Sep '10
Sony are hardly poor, besides if MS and Sony continue to provide good games for 2 good systems then I am happy, who has the biggest wallet is not important to me. As for marketing it is a fact of life that a competitive market requires full and often expensive campaigns across all platforms, now experiential marketing is playing a larger and larger part too. The hardcore gaming community may be the most loyal but it is also the discerning and critical so the companies need to attract a less informed market too and this is where marketing sweeps up and allows companies to sell games that if left for the hardcore to buy alone, many would simply not sell.
KK-Headcharge78 on 10 Sep '10
So I judge them purely by what matters to me as a gamer: hardware and games.

That's why I've got a PS3.



thats why ive got a ps3 and xbox 360 because im a gamer
dorian2011 on 10 Sep '10
22 posts and 3 pages, i can remember the days when all this would fit on 1 page. :cry:
ensabahnur on 10 Sep '10
people tend to overestimate how large MS is,
Sony:
Revenue, $85.983 billion -92nd
Operating Income, $379.024 billion
Total Assets, $123.739 billion

Microsoft:
Revenue, $62.484 billion -119th
Operating Income, $24.098 billion
Total Assets, $86.113 billion
Apple isn't even close to Sony or even MS with $42.910 billion revenue.
Nintendo isn't even close to Apple with $15,755 billion revenue.
Don't get me wrong, these numbers are nothing to scoff at, but they don't compare to either Microsoft or Sony the world's fifth largest media conglomerate (largest is Disney.. LOL!).


You do know that there is more to being a big company than how much money you own don't you? Profit margins and revenue streams have a lot to do with it. You can have one product at the market that sells at 10 times the production cost and you will have high profit margins and revenue streams. HP work that way and, although they don't have that much money compared to microsoft and apple, are considered one of the biggest tech companies in the world due to their margins being large. Hence the $1bn buyout of palm when apple and RIM offered less and were leading the way.

And don't use wikipedia as a source. That was based on the 2010 tax year. We are now in the 2011 tax year and microsoft have, allegedly, been able to reverse last years trend of losing money.

Still can't understand why people think £xxxxx means world's biggest company. It doesn't work like that
sjholland87 on 10 Sep '10
Marketing builds Hype and Hype generates Sales. Simples.


I have to agree with Stonecold, marketing is evidently powerful enough to make otherwise sensible people talk like a meerkat.


Bingo :lol: ! The power of Advertising:wink: .
StonecoldMC on 10 Sep '10


Bingo :lol: ! The power of Advertising:wink: .


Advertising works on you buy cokewhether you realise it or not, more snickerseven it it is just by building awareness. double cheeseburgerPeople who state that a campaign doesn't workKFC double down mmmmm on them have already failed by acknowledging its existence. oooh Saga cruises

Oh and this stupid comment limit per page needs to get changed, 25 seemed like too few before and this is just ridiculous. Surely you can just squeeze a couple more adverts on the page if that's what you're bothered about?
Conkers on 10 Sep '10
Advertising sells more which is great for the developer and publisher though for us gamers who go on all the gaming sites, the small gems that have been under-advertised will rarely go by unnoticed. So as long as the games on Sony machines remain of good quality, it doesn't affect me.
almanac2015 on 10 Sep '10
Bingo :lol: ! The power of Advertising:wink: .


:D

Instead of goats in hats, can I think about bears in jackets? I've got a great image of a grizzly in a puffer jacket in my head, all zipped up and looking too rude hanging about outside a Londis. And if that doesn't win you over, how about a panda in a smoking jacket and cravat?
zombiesinmyhead on 10 Sep '10


Bingo :lol: ! The power of Advertising:wink: .


Advertising works on you buy cokewhether you realise it or not, more snickerseven it it is just by building awareness. double cheeseburgerPeople who state that a campaign doesn't workKFC double down mmmmm on them have already failed by acknowledging its existence. oooh Saga cruises

Oh and this stupid comment limit per page needs to get changed, 25 seemed like too few before and this is just ridiculous. Surely you can just squeeze a couple more adverts on the page if that's what you're bothered about?


Can you even buy a double down over here yet? I really want to try one.
WHERESMYMONKEY on 10 Sep '10


Can you even buy a double down over here yet? I really want to try one.


Not yet, but when they do, which they certainly will, I am going to be first in the fatboy queue. I'm not even fat, but I will be...
Conkers on 10 Sep '10
what a joke Sony are....this is how they beat Nintnedo and Sega with the PSOne and PS2.
they took all the best games (EA Sports, WWF smackdown, MGS, GTA) which meant the only console gamers could buy to play those games was a Playstation. and now the likes of Call of Duty Black Ops is going to the Xbox 360 first, Sony are crying like a bunch of babies. they should man-up, after all it was them who started the whole console war. before Sony, gamers were happy with both Sega and Nintendo!.
Apollian24 on 10 Sep '10
what a joke Sony are....this is how they beat Nintnedo and Sega with the PSOne and PS2.
they took all the best games (EA Sports, WWF smackdown, MGS, GTA) which meant the only console gamers could buy to play those games was a Playstation. and now the likes of Call of Duty Black Ops is going to the Xbox 360 first, Sony are crying like a bunch of babies. they should man-up, after all it was them who started the whole console war. before Sony, gamers were happy with both Sega and Nintendo!.



Black Ops is going to the 360 first? 100% sure of that?
voodoo341 on 10 Sep '10
@dorian2011 " thats why ive got a ps3 and xbox 360 because im a gamer "

Are you sure about that ? I'm sure I've heard you say once that true gamers own a Wii and you said you only own a wii lol...

Anyway, It doesn't matter who spends the most, it matters who spends the money better.

Personally I didn't want a Xbox because of Bill Gates. His already rich as f**k without me putting money into his bank acc.
thedriffter50 on 10 Sep '10


Personally I didn't want a Xbox because of Bill Gates. His already rich as f**k without me putting money into his bank acc.


Why? He’s only a non-executive chairman at Microsoft which is essentially an honorary position, and he only owns 8 percent of the common stock so he wouldn’t see much of the pittance buying one Xbox would provide.

Anyway, he’s quite the philanthropist these days, giving much of his fortune to charitable means so in some ways you’d be helping the world by buying one and if you don’t you’re almost as bad as Hitler.
Conkers on 10 Sep '10


Bingo :lol: ! The power of Advertising:wink: .


Advertising works on you buy cokewhether you realise it or not, more snickerseven it it is just by building awareness. double cheeseburgerPeople who state that a campaign doesn't workKFC double down mmmmm on them have already failed by acknowledging its existence. oooh Saga cruises

Oh and this stupid comment limit per page needs to get changed, 25 seemed like too few before and this is just ridiculous. Surely you can just squeeze a couple more adverts on the page if that's what you're bothered about?


Exactly Conkers! Now why after having a pretty hearty lunch am I still hungry :?:wink: ?
StonecoldMC on 10 Sep '10
Sony don't need to, their advertisements are already ten times better than microsofts. The Kevin Butler adverts are just the best. Unlike those recent crappy halo reach adverts, they don't show gameplay and i'm not arsed about a video they made that wont be anything like the game. I don't like microsoft, they made some genuinely good stuff in the computing industry, they made a lot of money from it. But now all they do is throw money at everything else, and all they care about is money.
MattyR95 on 10 Sep '10
StoneCold, how can you be in advertising? You write calmly written, well structured, rational comments! How can you do this and work for the great satan? Has the world gone mad? :P
Jimmy Luxury on 10 Sep '10
@Conkers - Ok you broke my leg...
* off to buy a 360 *
thedriffter50 on 10 Sep '10
ur confusing me with wiiboy drifter, i own a 360 and ps3, the wii like kinnect isnt for gamers anymore but there is the odd hardcore game but not enough to warrent a purchase of a wii
dorian2011 on 10 Sep '10
Microsoft don't spend money on first party developers because they don't need to. They have huge sales regardless. Sony do however spend their money on exclusives so at to keep customers happy. That's why I prefer PS3.
Multiplayerking on 10 Sep '10
Why does owning multiple consoles make you a gamer? I only own a PS3, because I believe it to be a superior machine, does that mean I'm not a gamer? No, it doesn't.

I think that marketing is useless in most cases. For deodorant, for example; until we can smell it through the screen, the adverts are useless, since most of us don't buy consumables based on their packaging. With games; if I'm going to buy a game, I will have researched it, and will probably have been following it for months. I'm not going to buy something which is blatantly crap because they spend thousands on a bloody advertising campaign.

Also, while Microsoft may or may not be a larger company than Sony, I can see eye-to-eye with the people who say that; their software is in most computers that get sold, which they presumably get paid for, meaning that their gross profits are, again presumably, very high indeed. Sony, on the other hand, sell mid-high range electronic hardware, thus while their net profits may be high, their gross profits will be considerably low, due to the presumably high cost of manufacturing.

You see what a GCSE in business gets you?

Watch this, I'll have mixed up gross and net...
Gaseous Snake on 10 Sep '10
They will never outspend microsoft because they dont WASTE it on pointless crap like the Call of duty black ops ad.
cam123 on 10 Sep '10
Why does owning multiple consoles make you a gamer? I only own a PS3, because I believe it to be a superior machine, does that mean I'm not a gamer? No, it doesn't.



fanboys aint gamers just saddos who have sex with there consoles if they cud
dorian2011 on 10 Sep '10
Wow.
Sony are spending £750,000 on Playstation Move marketing.
Microsoft are spending over £4.2 million advertising Halo: Reach
And for hiring Jedward to promote the Wii, Nintendo have paid £3.20p and 2 packets of Quavers crisps.
Squall5005 on 10 Sep '10
Why does owning multiple consoles make you a gamer? I only own a PS3, because I believe it to be a superior machine, does that mean I'm not a gamer? No, it doesn't.



fanboys aint gamers just saddos who have sex with there consoles if they cud



The only game that I had any bit of interest in was Mass Effect 2, and now that its coming to PS3 I couldn't care less about any other games on the 360. Yes I am a fanboy, but there are two reasons. I hate MS, and there isn't a single thing that the 360 offers that I give a sh*t about. Just because I don't own both consoles (why would I buy a console that offers nothing that interests me??), that doesn't mean I'm not a gamer. If the 360 truly gave me something I wanted then I would own one. Just because I don't have one doesn't make me any less of a gamer than you.
Focker420 on 10 Sep '10
oh dear what a shame :lol:
alan666 on 10 Sep '10
Wow.
Sony are spending £750,000 on Playstation Move marketing.
Microsoft are spending over £4.2 million advertising Halo: Reach
And for hiring Jedward to promote the Wii, Nintendo have paid £3.20p and 2 packets of Quavers crisps.


You little tinker :D
boskersrevenge on 10 Sep '10
"thats because they spend money on quality games like killzone and uncharted 2"

Don't you mean quality games like Uncharted 2? KZ2 was crap. MS understand that marketing is everything, I can't stand Sony's advertising...its rubbish, it tries to be clever and fails, I'm a Graphic Designer and think Sony's advertising, much like its products is style over substance. I have been impressed by MS' Halo Reach advertising, two collegues from work were not that fussed about buying Reach...until they saw the 'Deliver Hope' live action trailer and then pre-ordered it, a prime example of excellent marketing, Sony should take note, well until they have a franchise worth investing that much cash in anyway lol!
Dave_25 on 10 Sep '10
Why does owning multiple consoles make you a gamer? I only own a PS3, because I believe it to be a superior machine, does that mean I'm not a gamer? No, it doesn't.


Who has said that owning a single console doesn't make you a gamer?

It makes you a biased gamer, as we can clearly see from your post. The fact that you are unable to put in as much time and interest to any other system immediately means that you are unable to make a balanced decision and judgement about available games on other systems as you choose to blindly devout yourself to a brand name. Your problem.
Paradaz - UK on 11 Sep '10
Well you have changed your tune Dorian. Not so long ago you were slagging off the Ps3 and now you have one!
HITMANBAZZA on 11 Sep '10
@HITMANBAZZA - Yeah I remember him bashing the ps3. Hypocrite.
thedriffter50 on 11 Sep '10
I have to agree with ben,m$ spend more on advertising than producing high scoring AAA Titles which sony has over m$.
It feels like now that m$ is flogging a dead horse more than a live horse(over priced).
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