WSJ: PS3 Stuck Behind Xbox 360
The console wars are as alive as ever. While the days of Nintendo 64 vs PlayStation are long gone, the three current generation consoles are constantly vying for new demographics, domination in specific regions, and all around sales and revenue.
The Wii from Nintendo has asserted itself as the console to beat this generation, and while many in America may prefer a PS3 or Xbox 360, the Wii has dominated the market in overall units sold. While no one is content to be #2, the Xbox 360 has a very strong presence in the West, outselling the PS3 3-to-1 during the post-Thanksgiving Black Friday sales.
A year after many were calling the PS3 a shoe-in for #1 worldwide, the Wall Street Journal is calling it quits on Sony, claiming that the PS3 will be stuck in the bottom slot forever.
Like with many consumer categories, the WSJ points to to NPD numbers for November 2008, prime time for holiday shopping. While Nintendo and Microsoft saw their sales jump 100 percent and 8 percent respectively over November 2007, Sony saw PS3 sales drop 19 percent. Furthermore, several analysts believe that December PS3 sales compared to last year will remain relatively flat. Also, many are wondering if Sony will meet its 10 million unit goal for the fiscal year ending in March 2009. With dismal holiday sales figures, things are not looking up for the PS3.
"Sony's strategy of selling a pricey game machine with advanced features and cutting-edge components appears to be backfiring as a deepening recession has U.S. consumers more price sensitive than ever," said the Journal. While Microsoft has made new Xbox 360s available for $200, and the Wii has always been $250; Sony has not warmed up to the price-cut strategy that its rivals use now and everyone has used in the past. Sure, you get a Blu-ray player with your game console, but for those who just want to play video games, dishing out $400 is a tall order, especially in these economically trying times.
Combining an expensive console with a weaker games library than either of its competitors and a Blu-ray feature that some do not want or care about is putting the PS3 in a tough spot. Daisuke Wakabayashi of the Wall Street Journal put it best: "If Sony doesn't close the gap with its rivals, it could risk making the PS3 an afterthought to game publishers, who focus most of their resources on the machines with the most users." Hopefully, Michael Pachter of Webush Morgan is right in thinking a PS3 price cut in coming in a few months.
If Sony doesn't drop the price, we may not see a PlayStation 4.
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Understanding that the PS3 and Wii dominate the Eastern Market is another thing that isn't put out there. The 360 is a joke over in Asia and Sony consoles will continue to be the source of "hardcore" and "mature" gamers out there while Nintendo and the Wii will be for the younger generation. I love my PS3 and I was comfortable with the price I paid, but I think that is because I use it for all the resources it can deliver. I use it as a Blu-Ray Player, a Gaming System (PS1, PS2, and PS3 Titles as mine is backwards compatible) and lastly as a Media Server to view media on my pc on my tv. I think that sales being low and sony continuing to push a product that costs them more to produce then they net in return shows they are not too concerned about that and are delivering a product that ultimately is the future of mature console gaming. As well as title selection comes down to player, Fable, Gears and Halo all make me laugh as none of those titles are any good to me. Fable is a ridiciously short RPG, Gears and Halo are 2 abysmal Shooters which ultimately is dominated by the PC gaming market. Say what you will but the PS3 come out a year or so later and I believe is only 9 million behind the 360.
The biggest problem for me is the fact that blu ray is not all thats cracked up to be at the moment. Why would i want to buy all the old films on blu ray when they were never shot in high defination in the first place? They done the same with the dvds.And how wants to pay £20 for a blu ray film? I dont think so. In addition the market for blu ray burners are very expensive and so are the media, if you cant burn cheaply then theres no incentive to buy a ps3. Most people dont have a clue about technology and all the different standards, which is confusing.
Nothing is future proof, nintendo and ms im sure are already planning and developing their next hardware which by that time could so easily surpass the ps3. Only time will tell.
In the mean time, i'll enjoy my pc, wii and ps3 ;-)