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PS3 could be third.
Topic Started: Aug 17 2006, 02:26 PM (109 Views)
Alex
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Brehehehee!!

Analyst: PS3 could be third
DFC Intelligence says Sony could "easily go from first to worst"; thinks brand strength, market position can't overcome $600 price.
By Tim Surette, GameSpot
Posted Jun 30, 2006 12:36 pm PT

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In the next-gen console race, there are three main competitors: Microsoft, Nintendo, and Sony. While many would love to see someone come out with some sort of "Everybody is a winner, hooray!" scenario, the simple truth is one company is going to be declared the loser. Though the finish line is still far down the road, industry analysts are already predicting who will break the tape and who will bring up the rear.

Sony has clearly been the favorite in recent years thanks to the unparalleled success of its PlayStation and PlayStation 2, but one analyst firm believes that the company may tumble down from the top of the heap. In a memo sent out today, San Diego-based DFC Intelligence explained how Sony could go from first to worst.

Though the memo contains the disclaimer that the prediction is "only one of several possible scenarios," DFC appears to be leaning towards Microsoft and Nintendo coming out on top through the next generation.

The main reason DFC sees a slide for Sony is the $600 price tag on the high-end version of the PlayStation 3. Though Sony has touted the machine as inexpensive relative to the hardware contained within it, DFC doesn't think consumers will see it that way.

"Sony has done very little to justify why the system is worth a premium price for consumers that don't care about raw hardware performance and are not hard-core audio/visual consumers," DFC said. "Unfortunately we believe that represents over 90% of the consumers in the marketplace."

DFC recognizes that software plays a large part in buyers' decisions, and points out that the PS2 was so successful because of its diverse portfolio of games and large third-party support. The broad range of software made the PS2 "a complete entertainment system for the family priced under $300," said DFC.

"With the PlayStation 3 the company is going after the high-end power user. It is almost as if Coca-Cola not only decided to go with a new formula, but also decided to exit the low-brow soft-drink business to go into high-end wines," DFC explains. "Of course, there is a market for high-end products but it is 1) a very different consumer type and 2) not nearly as big as the blue collar mass market. Wal-Mart sells more toys than FAO Schwartz and McDonald's sells more beef than Ruth's Chris Steak House."

There doesn't seem to be much of an easy way to right the ship, either. According to DFC, Sony may have drastically underestimated the competition and will have a lot of trouble cutting the price, particularly in time for the critical 2007 holiday season.

"A $600 price point is okay for launch but it will not fly in holiday 2007. If Sony wants to drive unit volume 2007 needs to be not only the year of price cuts, but the year of drastic price cuts. There is going to be a shakeup in the video game industry and even if Sony executes perfectly there could be a new market leader in two years."
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Xecutioner379
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Sony may be screwed. End of Story.
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PriestMan
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I think everyone sort of figured that once the 600 dollar price tag was announced at E3. But I wonder just how well Sony will do despite that. :huh:
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Alex
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Brehehehee!!

The games and accessoriesare going to be more pricey too.
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xbot
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games are priced $5 more then 360 because of Blu Ray.
Blu ray is new and no one gives a damn about it
360 is already establishing itself as the dominant console this GEN.
360 has a 1 year gap over Nintendo and PS3

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Why so serious?
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GuyLeBrown
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i think microsoft and nintendo will both win
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Shaheer
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Blood Generation

There's already a Wii60 going on. So a lot of Nintendo and Microsoft guys are in the works to bring Sony down.

Either way the PS3 will not be as successful as the PS2.
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GuyLeBrown
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i just read an article aobut how reggie says screw wii60 just get wii and lots of games

obviously we now know that microsoft is the most consumer friendly :)
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Shaheer
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ya can u link me to that. I've heard about that but never got the chance to read it.
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GuyLeBrown
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http://wii.ign.com/articles/725/725674p1.html
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Shaheer
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Blood Generation

Well in all honesty Reggie would have to say that to preserve his Job in Nintendo. If he said "go get a 360" then Executives will be all over him.
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GuyLeBrown
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reggie is president of nintendo of america.....
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Neji
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GuyLeBrown
Aug 17 2006, 07:24 PM
reggie is president of nintendo of america.....

USA president of NOA

The President of Nintendo is Sawoturu Iwata with Shiggy Miyamato in the back


Reggie is the guy who does USA lol
he's like a pawn but since I dissed him I mite get my ass kicked
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Ryanplex
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sony is not scwed, it is going to blow the xbox 360 out of the water just becasue it is cheeper and better :P

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Shaheer
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Ryanplex
Aug 18 2006, 04:23 AM
sony is not scwed, it is going to blow the xbox 360 out of the water just becasue it is cheeper and better :P

LOL
are you meowmixmaster?


Cheaper?
PS3 is $599 US
360 is $399 US

BIIIIIIIIIG difference lol

Ps3 games like Xbot says is $5 simply because of a blu ray player
It costs over $1 million to actually make a good PS3 game, that's a lot of moeny lol.

As far as I know, Ps3 will get great games but it'll have not a lot of them.
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