PlayStation 3 Doomed to Upset Sony's Lead?

Posted on Wednesday 19th July 2006 at 13:20 by SilverFork

Yesterday, the San Diego-based DFC Intelligence delivered an industry briefing expanding upon the firm's previous assessment that Sony's PlayStation 3 is likely to take last place in the next generation's console market. According to DFC, Sony's intent to launch the PS3 with a $600 price tag may primarily discourage consumers and the industry alike, forcing the company into "handing its competitors a golden opportunity" to get ahead.

Ken Kutaragi, Sony's CEO, has reportedly stated that the PS3 is more comparable to a computer than a traditional gaming machine in that upgrades such as a writable Blu-ray drive and increased system memory are possible. The firm, speaking of differing ways in which the PS3 could disrupt Sony's current market lead, believes these upgrades will result in a steep price incapable of decreasing at a quick rate similar to that of most game systems: "By fixing its hardware standard for several years, video game console systems have been able to significantly lower prices over time by not having to upgrade to the latest technology," DFC points out.

Nintendo's Wii and Microsoft's Xbox 360, on the other hand, both have the potential to become the leader in installed base, says DFC. Although Japan isn't about to warm up to the Xbox 360, the North American market provides it the strength it needs to dominate the gaming front. However, the Wii - with its broad range of appeal and the lowest price of the three consoles - "could end up number one in market share for the next generation."

In the end, the intelligence firm remains ever-critical of Sony, predicting that its "techno-elite" approach may lead to the PS3 finding itself with a market share more along the lines of Apple products in a world of PCs.

Or not. Who knows.

Source: GameSpot

Posted in: Gaming Industry News

Written by	SilverFork
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Comments

Del S	Comment 1: 2006-07-19 14:18
	I personally think that Sony simply have a slow-burner that will last longer. Wii is effectively a very weak console that will push itself to it's limits within a year, Xbox360 is going to find itself obsolete within three years, and PS3 will have a while to establish it's market share.
GamblingCat	Comment 2: 2006-07-19 16:17
	Looks like this is Nintendo's move, now the wii. can take the lead. Still 600$ is alot.
Cloud_Strife510	Comment 3: 2006-07-19 18:36
	Nintendo, will need to keep making traditional controller style games to keep the old market happy, Wii does have the potential to overtake, especially for people like me who have snes cartidges, but my mom gave my snes to the goodwill, all it'll take for either Xbox 360 or nintendo Wii to overtake sony is 3 good games a year, for the first two years after PS3's release. And by good games I mean close to Ocarina of Time level of fun type of games. If they want to stomp sony out now is there chance, PS3 could easily end up like the Dreamcast. All it takes is a few good games.
Zeromus_X	Comment 4: 2006-07-19 18:58
	Quote ...the PS3 is more comparable to a computer than a traditional gaming machine Can't say I didn't expect this. People have computers to do what computers are supposed to do. People buy consoles to play games. It seems like common sense to me.
karasuman	Comment 5: 2006-07-19 19:28
	Everything I've heard about the PS3 for a good long while has been nothing but depressing. What can Sony possibly be thinking by turning their next-gen machine into a crazy mess of features that most people don't need and can't afford? I don't know whether or not I'll be getting a PS3. All of the titles that I'm looking forward to are PS3 games, but if the console gets sucked into the vacuum created by Sony's burgeoning corporate ego, I could see it going the way of the Dreamcast. Announced titles will just never appear, and software publishers will go elsewhere.
Hamedo	Comment 6: 2006-07-19 19:29
	The PS3 isn't going to replace very many PC's in very many households. I think the pricetag is going to bite Sony in the arse.
Elessar	Comment 7: 2006-07-19 21:46
	Is there any particular reason why we should care what DFC Intelligence predicts? Industry forecasting must be one of the most choatic of statistical disciplines, second to at least weather and economics. Their website doesn't seem to offer much. Apparently they sell massive briefs of analysis at about 10 dollars a page. Either that, or save big with custom research subscriptions for just $3000 USD a year! Fantastic! Sign me up now. And it's not as if this is the first time they've called Sony on their astronomical pricing. And at this point, does it really matter what analysts say? Sony's not going to change their tune now.
ultimage	Comment 8: 2006-07-19 21:50
	If I were head of Sony I'd have had them build the full specrtum PS3 as well as a stripped down system purely for gaming... Not a bad idea I'd say.
Silpheed	Comment 9: 2006-07-20 00:22
	I think they should have left the blu-ray part out to help lower the cost. Aah, but anyway, the fact that the PS3 is backwards compatable and region free (meaning I can play Japanese or Euro games) makes the price tag worth it to me right there.
Hamedo	Comment 10: 2006-07-20 00:52
	Not me. I see nothing that the PS# is offering that I actually want that I couldn't get from the 360. Even the FF franchise has lost it's hold on me so much that I won't keep console loyalty just for the sake of their games.
red_beard_neo	Comment 11: 2006-07-20 03:29
	Quote (Zeromus_X @ 19th July 2006 13:58) Quote ...the PS3 is more comparable to a computer than a traditional gaming machine Can't say I didn't expect this. People have computers to do what computers are supposed to do. People buy consoles to play games. It seems like common sense to me. I was thinking the same thing. They touted the DVD-player function when the PS2 released in 2000 -- I bought mine on day 1, and I've yet to watch a DVD on it (well, 5 minutes to say "Yep, that's a DVD player"). I thought $300 was steep but justifiable, no way I'm spending double that -- I'd make massive upgrades to my PC first.
Elena1999	Comment 12: 2006-07-20 05:12
	Maybe I'm a fool, I don't know but I still have faith in Sony and will eventually get a PS3. Probably not the day it comes out but I will get one. I'm also kind of ok with the idea of it being kind of a computer. A computer that plays like a console machine? I'm so there. I never play games on my computer because it's an uncomfortable sitting situtation and I stare at a computer all day.
Zodiac	Comment 13: 2006-07-20 05:43
	What I think is that Sony wants to develop technology at an unbelievable speed. Of course, their research costs were so high that it will take much more than 600$ per console to result in any profits. At least the gaming industry is adapting to that higher technology. Let's face it, yes, it costs a lot, but in a few years we may be able to do great things because people paid for researches like this. I have yet to play any game where you move your body and not smash buttons on a controller. But I wonder how much time it will take for Sony to recover from that hit. I mean, they won't get 3 on 4 families to buy a PS3. Well, if people want one, they'll get the money for it.
karasuman	Comment 14: 2006-07-20 15:30
	Quote (Elena1999 @ 20th July 2006 00:12) A computer that plays like a console machine? I'm so there. I never play games on my computer because it's an uncomfortable sitting situtation and I stare at a computer all day. The problem with that is that it's also a console machine that plays like a computer. I'm with you on it being more comfortable to play from your couch with a controller than at your desk with a keyboard, but I'm extremely wary of the other changes this will mean. Computer games are so incredibly unstable. Hopefully, the fact that the PS3 hardware will be standardized will alleviate this problem. But computer game designers also feel like they don't need to put out a completed product--why should they, when they can just patch it later? They wait for the fan community to figure out what all the problems and bugs are, and then they fix them if they feel like it. I'm not looking forward to buggy, glitchy games that are left that way because they know they can put out a patch.
Hamedo	Comment 15: 2006-07-20 15:47
	Good point, Kara. I hadn't thought of that. Still, one would think that with the huge gamble that Sony is taking with their price, that they wouldn't compund the mistake by putting out sloppy games with the nonchalant attitude of "we'll patch it later". They couldn't be THAT stupid, could they? Could they?
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