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Old 21-03-2007   #1
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Bad News: has Sony Dug A Grave For the PS3?

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Has Sony dug a grave for the PS3?
First USA Today badmouths Sony's PlayStation 3 game console, calling it the market loser, and now Best Buy has reportedly stopped carrying one of its two versions. The third iteration of Sony's game system debuted in November with two models, a $499 version and a $599 one. At the time, most gamers eschewed the $499 model because the more expensive one not only featured a larger hard drive, but also built-in WiFi and other features, making it a better value. Evidently, consumers continue to avoid the cheaper model as PlayStation 3s reportedly pile up at Best Buy and other retailers.

Sony's sales also have lagged far behind industry rivals Nintendo and Microsoft. As a matter of fact, Nintendo's Wii, which is half the price of a PS3, outsold the Sony console 2 to 1 in February. Based on research firm NPD's sales data for February, its as if the industry has flipped the standings from the last generation placing Nintendo in first, Sony in last and Microsoft's $399 Xbox 360 remains stuck at second.

Sony's PS3 is the most expensive of the three consoles because it features the Blu-Ray optical drive. The PS3 was Sony's Trojan Horse to win the next generation optical disc format war against Toshiba's HD-DVD technology. While the PS3 may have given Sony a slight lead over Toshiba, the Blu-Ray drive's added cost may have stricken the PS3's success amongst gamers, who may be more price-sensitive than Sony expected.

Microsoft's lead over Sony has led a number of game developers on both sides of the Pacific to abandon exclusive projects for the PS3 and embrace the Xbox 360. The biggest news was Capcom's and Namco Bandai's defections to the Xbox platform because, traditionally, Japanese game developers avoided the first Xbox. Both the Xbox 360 and the PS3 remain technically superior to the Wii, which relies heavily on a motion-sensitive controller to differentiate itself. Consequently, projects started for the PS3 can easily translate to the Xbox without too much trouble for the developers.

With fewer exclusive titles, and a bigger price difference between the PS3 and Xbox 360, Sony may be stuck in a hole it can't get out. If it doesn't cut the price of the PS3 soon, then that hole could become a grave.
this is really bad news for ps3 fans
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Old 22-03-2007   #2
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om not worried, Sony have basically scrapped the 20Gb, and thw wii is cheaper than both, so more people can afford it, and the 360 is an older console, so more people buy them.

Give the PS3 time, the 20Gb will die off, making it rare, and the 60Gb will go strong, pass 360 easily once really good games come out, then hold the harcore gamer share, with wii in the family section.

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Old 22-03-2007   #3
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the price really kills them....and losign exlcuives..adds to it
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Old 22-03-2007   #4
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the price is worse in UK, Jap gets it for ?250! its ?425 in uk!

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Old 22-03-2007   #5
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still 800,000 pre orderz well pretty good! just in uk.
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Old 22-03-2007   #6
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yeah, thats with 200,000 cancelled after PS2 compatibility slashed (Kids getting parents to buy it)

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Old 22-03-2007   #7
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(quotes that guy who killed Hitler in C&C red alert)

'Time vill tell ......sooner or later time vill tell'
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Old 22-03-2007   #8
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if sony doesn't do something about the production costs, we could see it fall. but i dont get it. sony looses money with every system sold so y do people ****ing complain, those dumb *******s
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Old 23-03-2007   #9
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Quote:
Originally Posted by El Davo View Post
(quotes that guy who killed Hitler in C&C red alert)

'Time vill tell ......sooner or later time vill tell'
Oh My god! That was Albert Einstein! How could you not get that!
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Old 23-03-2007   #10
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I'm not worried...
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Old 23-03-2007   #11
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Sony has nothing to worry about. They are actively seeking ways to reduce their production costs, and officially dropping the 20 gig version would help them out. They lose far more money on the 20 gig version than the 60 gig version, so they should scrap it. They are actively working on reducing production costs associated with the Cell processor and Blu-ray drive, and that will help out a lot. They also went to software emulation for PS2 backward compatibility by removing the PS2 processor, and that will eventually help reduce costs as well. Sony is taking the right steps to be successful this time out with the PS3.

Microsoft is the company that should be worried, and it's beginning to show. Besides the PS3 smear campaign they have been busy with, they are also scrambling to upgrade the 360 to compete with the PS3, but they have really painted themselves into a corner by releasing the 360 so early.

Microsoft was hoping to have a huge lead on installed consoles by the time the PS3 released, but that didn't really happen. Japan and the rest of Asia soundly rejected the 360, and it hasn't been very successful in Europe either. Instead, Microsoft has a relatively small lead, but that is without a built-in next gen optical drive or hard drive, and no HDMI output.

People talk about the 360 not needing the storage capacity a built in HD-DVD or Blu-ray drive would offer, but I disagree with that. Not only would that allow larger games with expanded visual detail, but it also allows greatly improved sound during games as well. Blu-ray discs on the PS3 allow for uncompressed digital audio tracks in 7.1 surround sound, and the sound quality is noticeably better than Dolby Digital or DTS tracks on DVD discs. Those uncompressed surround sound tracks take up a lot of disc space, making them impossible to store on a regular DVD. The 360 will never be capable of delivering this.

Not having a built-in hard drive in every 360 system prevents game developers from fully utilizing it during gameplay. Developers have to program based on the lowest common denominator, meaning the lowest system specs. If some 360s (Core Systems) are out there without a hard drive, programmers will design games assuming it isn't there. Ditto for the HD-DVD external expansion drive.

I don't think Microsoft built a big enough lead to be comfortable with. That is why rumors are rampant on a better "black box" version of the 360 with HDMI output and 120 gig hard drive. That will either force developers to alienate older 360 owners by designing games for the newer version, or they will continue developing for that lower common denominator, rendering the improved version worthless.

Anyway, Sony is just getting started, and they have nothing to worry about. Lopping off the 20 gig version would be a good thing. Once game developers become more comfortable developing games for the system, and the installed base continues to climb, you'll see more exclusives show up on PS3 as well.

Overall, with the features the PS3 offers, as well as the upcoming online community offered by Home, the PS3 is well positioned to be hugely successful this generation. There's no need to worry.
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Old 23-03-2007   #12
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exactley lets ahve a look at the production costs shall we
>blueray player = $2000.00 !!!!!!!!
>Cell chip= $ 5000.00
>core processores = $500.00 each x7 = $3500.00
>HDMI output = $200.00
>Hardrive= $ 350.00


total = $ 11 050.00 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!
$ 11 050.00-$800= $ 10 250.00 loss per system

forgot which website i got it from
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Old 24-03-2007   #13
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thats completely wrong

Blu-Ray : ?125
Cell: ?100
HDMI OutPut: ?40
HDD: ?40
Wi-Fi: ?20
Memory Card Reader: ?10
Technical Gubbins: ?120
Software: ?10

Total: ?465

Price Shops Pay: Around ?390 per unit

Total Loss: ?75

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Old 24-03-2007   #14
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Huh, well, I don't really care, Sony'll find a way.
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Old 24-03-2007   #15
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yeah, moving to 65Nm and not making the cell in house will lower costs, so they'll be making money soon!

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Old 25-03-2007   #16
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i was talkin about base price lol. that if u decide to buy each seperatley. i know sony gets a discount on those but im talking if we wanted to buy those stuff.....
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Old 25-03-2007   #17
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yeah, so they aren't making that loss are they, you make a gain by buying a PS3

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Old 25-03-2007   #18
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Everything I hear about the PS3 just makes it seem worse and worse off...especially with losing so many exclusives. Maybe this is Sony's marketing strategy and it'll work out better in the future lol.
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Old 25-03-2007   #19
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unless you have a PS3, everything seems kind of bad, but its really great!

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Old 25-03-2007   #20
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yeah i do not think the ps3 sucks at all...i wish i had one...too much bad press
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