CES 2011: Sony Press Conference Wrap Up

Eff the Playstation Phone, man. Uncharted 3 was good enough for me.

Playstation Move Reaches 4.1 million Units Sold

   In a press release this morning, Sony marked a milestone in sales of the Playstation Move which has reached 4.1 million units sold globally since its release on September 17, 2010. With an installed base of 41.6 million Playstation 3 consoles in the world, the Move has reached nearly 10% of the userbase. It's still too early to determine if that sales figure is good enough for publishers to continue developing Move-compatible software.

   Microsoft also released sales figures for their Kinect motion-sensing device today at 2.5 million units sold since its launch on November 4, 2010. Microsoft expects to sell another 2.5 million Kinects during the 2010 holiday season.

Jailbreak Clones Hit $10

   PS3 Jailbreak clones are being dumped into the market and they're $10 in bulk. That's cheaper than I thought they'd reach since my last price update but as of last night, the prices of the Atmel-based Jailbreak clones reached $10 if you buy in quantities of 200 pieces and up. The updated prices look like this:

Qty         Price
50pcs      US$15/pc
100pcs    US$12/pc
200pcs    US$10/pc

   In another week, I wouldn't be surprised if the biggest discount is $7.50 for 200+ pieces. This is what I would call a market in flux because the price is dropping so quickly from week to week. Eventually, the Jailbreak clones will reach a stable market price which I would assume is $5. From the original Jailbreak price of $160 to $5 in about a month. Is that a highly efficient market pricing mechanism or what?

Sony to Unlicensed Controllers: F.U.

   You know that knockoff PS3 controller from Hong Kong that you bought for $10? The one with the fake Playstation logo and the rubbery d-pad? Thanks to Sony's recent firmware update to v3.50, that PS3 knockoff controller has been rendered obsolete. It won't work and the Playstation 3 won't recognize it as a controller. Sony's official word:

"SCEA does not support continued functionality of counterfeit or unlicensed controllers in system software updates and these devices may cease to function in the future because of system software updates."

   I normally support Sony but this is a nutty move. Locking out unlicensed controllers makes sense from a business perspective in that it forces consumers to purchase officially licensed controllers which Sony earns revenue and licensing revenue from to fill the corporate coffers. However, from a common sense standpoint, it creates a lot of pissed off customers who're going to be flooding Sony's customer help line with complaints that their knockoff controllers no longer work. That's a nightmare scenario for their phone staff as well as their online support staff who have to answer the same question from a few thousand people.

Sony requests dismissal of Other OS suit

   Sony Computer Entertainment America (SCEA) is calling for the dismissal of a lawsuit filed in April pertaining to the removal of the "Other OS" function from the Playstation 3 firmware. David Verner, the plaintiff, filed the suit arguing that Sony deceived PS3 customers when the Linux operating system or "Other OS" functionality was removed from the console with the firmware 3.21 update.

   Playstation 3 consoles with firmware 3.15 are still capable of "Other OS" functionality. I'm guessing that Sony's going to have their way with the dismissal. Ultimately, they're in control of the product that they sell and they have the right to patch/upgrade the firmware to mold and shape the way their product operates. I remember thinking to myself, "WTF are they doing?" when I read about Sony's "Other OS" plans. There was a Linux Kit for the PS2 that included a hard drive which sold relatively well and there was a dedicated fan base but what was the business sense of adding the capability of running Linux on the PS3? Remember, I'm looking at it from a business perspective. Not a hobbyist's perspective. I can understand the hobbyist's perspective perfectly but from a business standpoint, it made zero sense.

   Maybe Sony can do a Steve Jobs and text David Verner with, "Please leave us alone" and call it a day.

Playstation 3 Firmware 3.42 is FINE

   Read the title again if it needs to be reiterated. I upgraded my PS3 to 3.42 as soon as it was released and everything's fine on my 60GB OG. I've been playing Japanese games, European games, playing Blu-Rays, and watching DVDs on the Playstation 3 for the past week without a glitch. Ya heard me? Not a glitch.

   What about the people who are complaining that their PS3s with 3.42 are crashing like Niagara Falls? They're what I call a "Vocal Minority." You know those people. They make a lot of noise but they represent a minority. Sort of like those Toyota drivers who were claiming that their cars were mysteriously speeding up were a vocal minority who got paraded in front of the news crews. Remember that one middle-aged guy whose Toyota sped up and crashed into another person's car? He was found to be a con artist who was heavily in debt and was hoping for a Toyota payout. I'm not saying that the people who're claiming their PS3s are clamming up are con-artists but maybe they're Xbox fanboys who don't even have a PS3. Maybe they're Jailbreak resellers trying to get into Sony's craw. Maybe they have a lot of time on their hands. Who knows. What I do know is they're a vocal minority.

PS3 Firmware 3.42 Released

   Sony released the PS3 3.42 firmware yesterday. The update patches the security exploit that was present in firmware 3.41 which allowed the PS3 Jailbreak and the patched PSGroove to circumvent the Playstation 3's security measures against "backups" and replay of those backups. The official announcement is linked below:

http://blog.us.playstation.com/2010/09/06/playstation-3-system-software-update-v3-42-now-available/
PlayStation 3 System Software Update v3.42 Now Available

Posted by John Koller // Director, Hardware Marketing
Hi everyone! A minor update to your PS3 system is now available via system software update v3.42 that includes additional security features. For more details and instructions on how to update the system software for the PS3 system, please visit the PS3 System Updates page.

Jailbreak Injunction Decision Tomorrow

   An Australian Federal Court will decide tomorrow if the injunction against the sale of the Playstation 3 Jailbreak becomes permanent. I've bet $30 on a wager against a scenester that the ban stays and the mod sellers are SOL. Why $30? That was all I had in my pocket at the time we were shooting the shit about mods and pondering the history of the universe. The Jailbreak issue is probably moot however because the PSGroove is out and in the wild.

   The PSGroove project was revealed a couple of days ago but it's an ethical hack. Piracy isn't enabled on the USB injection code but it's only a matter of time before someone re-enables the piracy features so that game dumps to HDD and backups are playable. Once a hack like that is released, it's out there forever and free for anyone to use, modify, and engineer for whatever reason. That's the nature of the internet where all of your embarrassing photos, dumb lines, and dick jokes are saved on someone's server or hard drive for all of eternity.

Negative Sentiment Towards Piracy?

   Ever since the story of the Playstation 3 Jailbreak broke last week on Kotaku, the news of the PS3 exploit has been making its way around the world and eliciting lots of comments from readers. Although the commentary is anecdotal, it would appear that readers are mostly against the advent of Playstation 3 piracy. Of course, some readers support piracy for obvious reasons but the majority (publicly at least) seem to be showing bias against the pirates. However, let's look at some of the reasons that pirates use to support their activities:

(1) I'm making backups for archival purposes
   Fair enough but if Sony shows up at your door tomorrow, are you going to have every single game that's in your hard drive tucked away safely in your closet?

(2) Games are too expensive
   So is a Porsche 911. Try stealing that from the dealership. Houses are expensive too. Go steal one and see how that works for you.

(3) Sony makes too much money
   Sony's Playstation division lost nearly a 1/2 billion dollars last year and they reported a $43 million dollar loss for 1Q 2010.

(4) Game companies make too much money
   Electronic Arts is the largest game publisher in the world. They've been losing money for years and their share price reflects the losses.

(5) Who makes money then?
   The video game business is in a slump but when economies around the world begin to recover, Sony and publishers should start making money again. However, their revival of fortunes shouldn't give you a license to steal.

(6) If I don't pirate, someone else will
   This is true. Everyone wants something for nothing and perhaps it is inevitable that piracy will eventually take over the PS3 business. However, consider that game developers and publishers toil and sweat to make sure their products reach market. That takes money and resources. If everyone pirated software and got a free ride, what is the incentive for developers and publishers to create the best possible product for their customers?

   In closing, the next few days will be a turning point for the Playstation 3. The PS3 Jailbreak is out in the wild and once it is cloned and hacked by imitators, its usage and availability will grow as suppliers get it into the public domain. As long as there is the potential for profit, the Jailbreak will find its way to consumers despite laws that govern the use of security circumvention devices.

PS3 Jailbreak Site Irony

Pirate Hubris

   The PS3 Jailbreak was designed to circumvent Sony's copy protection but it's ironic that their site states the following:

"Beware of imitators and Chinese knockoffs"

   So, pirates are afraid of having their product pirated? Since the Jailbreak is essentially a USB drive with an executable program on it, bootleggers who crack and copy the device will assuredly start selling their own versions of the Jailbreak within days of its release into the market. 
   The current price of the dongle is approximately US$120 but if bootlegs are manufactured, Gaming Exodus would anticipate prices to plunge below US$20 as the market is flooded with imitations and "Chinese knockoffs." This situation would be similar to the days of the original Playstation modchips where massive supplies soon forced prices from roughly $40 per chip to less than $5.

The Jailbreak site's "Engrish" description for the Jailbreak follows below:

http://psjailbreak.com/

* PS Jailbreak is a USB plug and play solution that installs in seconds, keeping your valid warranty seal in tact.

* Easy to use installer and GUI takes you step by step.

* Compatible with all production models FAT and SLIM. Supports all regions: USA, JAP, PAL and KOREA

* PS Jailbreak disables forced software updates and will never brick your console.

* Supports all games (it does not allow backups of bluray movies , dvd movies , or past consoles games)

* Backup games to your internal hard drive or external hard drive through USB, and boot directly off GUI. Eliminating the need for expensive blueray burners and costly blank media.

* Play backups off your hard drives 2x as fast as off the blueray drive. This eliminates lags and glitches to provide you with smoother game play.

* Open up your console to a new generation of homebrew applications. Load homebrew apps/games off any USB hard drive/flash drive.

* Fully updatable with new features/updates by connecting PS Jailbreak to any computers USB port.

* For installation instructions and operation instructions please click here

Playstation 3 Jailbreak Sales Halted

   Sony has convinced an Australian Federal Court to issue an injunction against presales of the Playstation 3 Jailbreak mod which plugs into the PS3's USB port. Based on information released thus far, the Jailbreak allows the Playstation 3 to boot pirated software from a hard drive. Further information appears to indicate that the Playstation 3's normal boot process is interrupted and the software on the Jailbreak allows the Playstation 3 console to mimic the functionality of a development station PS3. An original Playstation 3 game is still required to load the games stored on the hard drive but the potential for rampant piracy allowed Sony to obtain the injunction. Three Australian modchip sellers were named in the injunction:

1) Quantronics
2) OzModChips.com
3) ModSupplier.com

   Although modchips are illegal in most parts of the world, they are legal in Australia. The injunction is in force until August 31. If the injunction is stayed, the PS3 Jailbreak will remain unavailable for sale.

   The Jailbreak website also lists resellers in Canada, Europe, and the United States. Modchips and copyright circumvention devices are illegal in the States and it is unclear if the US-based seller "Shop PS Jailbreak" is aware of the ramifications and legal liabilities of selling an outlawed product. Stay tuned for the drama to unfold.