Tuesday, November 20, 2001

Sony needs a clue The Playstation emulator, Bleem is dead. Whatever its business propects, Sony killed it off with numerous lawsuits. This was a bad strategy since Sony sells consoles at a loss and makes money off games--anything that increases the number of available consoles (and hence games sold) increases overall profitability. Sony's obsession with control demonstrates they don't understand network economics, and hence the economics of their major business unit. A worrying display of cluelessness.

This same cluelessness marks their GNU/Linux strategy. Sony's offering a GNU/Linux kit for the PS2 that lets users turn their boxes into a cheap server. Since Sony loses money on each box it sells, letting folks turn it into a server (and not buy games for it) makes no business sense. With Microsoft willing to lose $1B on its Xbox, these elementary strategic mistakes don't bode well for Sony.


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