The PS2 is starting to lose it’s momentum as the new titles dwindle. It has had one hell of a run. Continued price drops will probably keep it going for awhile. Hoping to mirror this success, the PS3 was originally posted to have about a ten year life span, much like it’s little brother.
The PS3, after a disastrous start, is starting to build momentum. It is projected that 2008 will bring the good days back to Sony.
That’s projected, not guaranteed. Read the rest, after the jump!
“Despite increasing PS3 sales, we do not expect any significant shift in PS3 market share in Sony’s favor until mid 2008,” analyst Jesse Divnich said. “A shift will likely be the result of continued hardware price cuts and the release of several AAA titles such as Metal Gear Solid 4 and Grand Theft Auto IV-both of which is expected to be released near the half-way point of 2008.”
How much more can they cut the price? They were losing money with every unit sold when it was $600 a pop. How much more can Sony lose? The only way I see a price drop helping both consumers and Sony is if they cut out the Blu-Ray. They cut backwards compatibility, why not that?
MGS4 is coming out sometime in 2008, this is true. It may sell some consoles, but it’s not Halo. I’m not really sure why they even mentioned GTAIV. It’s not exclusive and the more robust version will be on the 360.
It has also been projected that the PS3 will overtake the 360. While it does not look like it right now, a push from Sony is possible. It will all come down to titles and price. They also see the PS3 over taking the Wii in 2011. I fail to see how they can project that giving how far ahead the Wii jumped in just it’s first year. I guess that means that by then, the Wii 2 will be out.
2011 is closer than we think, but a lot of money can be earned and lost in that time. One wrong move could spell ”game over” for the PS3. I’d love to see the guy in the office saying,”Just wait, you’ll see in 2011 that I was right.”
Awhile back, Yoichi Wada, the CEO of Square Enix, the makers of Final Fantasy and Dragon Quest, sat down and talked about the trio of consoles duking it out for supremacy and described what he believed needed to happen the PS3 for it to succeed.
“The Wii is the antithesis of the Xbox 360. It’s (the 360) strictly for hardcore gamers. The attachment rate for the Xbox 360 is much higher than for the Wii. People who buy the 360 really like games… I think the current trend is that most people aren’t buying the Wii as a game machine, but as a toy… It seems that Sony isn’t sure what it wants to do. Is it making high-end electronics or a game console for gamers? I want them to clearly define their console.”
Amen.
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9 responses so far ↓
1 Sean "rothbart" Workman // Dec 12, 2007 at 11:04 am
The blue diodes for the Blu-ray drive were drastically cost-reduced after the supply constraints were alleviated. Also the custom Emotion Engine chip (it was a slightly modified version, not _exactly_ the same as what’s in the PS2) and Graphics Synthesizer were removed as well as the memory card reader, two USB ports, some other added circuitry for PS2 BC. If you combine all those cost reductions, it’s significant. When you add in bulk discounts for increasing sales, it’s probably an even bigger deal. Also, the Cell processor and RSX graphics chip are rumored to be already or imminently moving to 45nm, reducing raw material usage and power consumption.
If there’s one thing Sony knows, it’s cost reduction over time. Look at both the original Playstation and the PS2. Both have numerous model revisions. The PS2 has had (I’m pretty sure) over a dozen different models that all function virtually indentical to the end user, but are efforts at cost reduction.
Sony can also afford to subsidize some of the cost from other divisions as the PS3 is key in their Blu-ray video format war and by far the best-selling Blu-ray player to date having sold _millions_ of units.
I would expect Sony to keep cost reducing through redesigns and other steps. If they keep redesigning _and_ stay close to their cost/loss margins, they _can_ further reduce the cost in (late) 2008. I doubt we’ll see another $100 price cut, but $349 seems reasonable. Of course the Wii absolutely has room for price reduction and I’d guess the 360 could too but they’ll only do this as a last resort reactionary measure as they need as much income as possible to set off their $1B+ repair fiasco as well as generally turning a profit on their own merits… something that’s been shouded in mystery and controvery forever. They announced turning a profit a quarter ago but I don’t personally see how that’s possible unless it was an accounting trick because they’d just announced the RRoD $1B+ write-off earlier in the year… does that mean the expense from that somehow isn’t factored into whether or not they profit? If not, hell, let ME spend $1B and earn $10 so I could say _I_ profited… *sigh*
2 Yousty // Dec 12, 2007 at 12:04 pm
Haha, you’re such an optimist with Sony and such a pessimist with Microsoft, Rothbart. It cracks me up and makes your responses fun to read.
btw, I’m in no way flaming on you or calling you a fanboy because I know you’re not and because you do know what you’re talking about usually.
3 Hollowcow // Dec 12, 2007 at 1:31 pm
You will all beg for mercy when Sega release the DreamCast2!!!!!!!!!!!!!!!!!!!
4 Sean "rothbart" Workman // Dec 12, 2007 at 3:09 pm
@Yousty: I haven’t been “burned” by Sony yet… let alone multiple times. Anything’s possible though… I may switch to a Wii optimist viewpoint.
Shyeah, right!!!
5 Joshthegreat // Dec 12, 2007 at 3:54 pm
Cut the Blu-ray? You do of course reason every PS3 game is on Blu-ray discs… If they cut Blu-ray we wouldn’t be able to play anything.
Nice idea, sherlock.
6 JJDZX // Dec 12, 2007 at 7:31 pm
well only time will tell all i know is that im gonna sign up for the Killzone 2 beta when it’s announced. i like my PS3 it hasn’t failed me yet adn i can’t wait for 2008 so we will see
7 Ablative Meatshield // Dec 12, 2007 at 9:58 pm
The problem about “absorbing” cost is the fact that while Sony does have other divisions that can perform well and offset loss for the PS3, Bill Gates could wade into this fight, give away the 360’s HD-DVD player like candy at a parade, and blow Sony away.
He’s worth over a what, a couple houndred billion? Sony could keep up with that, sure, but Bill Gates the PERSON would be fighting them, let alone if MS starts the same sort of tactics…
Sony needs the PS3 to start showing profit SOON. As in, yesterday.
You can’t keep propping up a money sink. Doing that is how companies go belly-up.
8 Doug // Dec 13, 2007 at 3:09 pm
I
9 DimWit // Dec 14, 2007 at 2:17 am
First bill gates has about 55billion and Sont is a ricer companie then Microsoft.
Sony are realeasing a 20GB PS3 which will cost a bit less the the XBox 360 and thas a great deal since the 512MB version of the 360 cost over $530 while a 20GB ps3 will cost about the same price. What better? I’ll let you ask yourself.
Its true PS3 will get alot better in 2008 with Metal Gear Solid 4 coming out on PS3 only and the creators have all ready said there is no way it is to be released on any other platorm. With MGS being a way bigger hit then Grand Theft Auto. There are als other big hit games like killzone 3 being released on PS3 only. There is no doubt of PS3 going to storm the world.
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