The Failure: Launching PS3 with a Steep Price Point
The entire launch of the PS3 was a disaster for Sony. In one of his last major acts as head of the PlayStation division, Hirai took the stage to issue the bad news that the console would launch at the extremely steep price of $499 and $599 for its two versions. Stunned audiences gasped in horror as Hirai confirmed next-generation gaming would require “huge investment” and that to “risk” had to be taken in order to “reap the rewards”. The expensive cell-architecture of the PS3’s processor – which would later cause its own set of problems for software developers – pushed prices way beyond what anyone could have imagined. Shockingly, the base version of the PS3 launched with no Wi-Fi and dismal hard drive storage, which essentially made it a non-starter.
The PS3’s terrible first-impression saw Sony cede ground to Microsoft and forced them to play catch-up for the rest of the generation. Hirai’s successor, Jack Tretton, deserves a huge amount of credit for steadying the ship and eventually saw the PS3 catch up to the 360 worldwide. Although Hirai’s overall leadership as Sony’s CEO would later prove decisive in the company using the PlayStation brand as its focal point moving forward, Hirai’s final act as head of PlayStation certainly wasn’t Sony’s finest moment.
