Paidcontent.org: News that pre-holiday sales of Sony's PS3 console slipped year-over-year (in contrast to marked growth for the Nintendo Wii and Microsoft's Xbox 360) led some analysts to conclude that the PS3 is all but defeated in the next-gen console wars. Well, some big brand advertisers don't think so, according to Jonathan Epstein, CEO of DoubleFusion, one of the biggest in-game advertising agencies. He told me that in-game ad campaigns for the PS3 were in high demand, and that the company had "sold every impression we have on the console." (DoubleFusion also brokers ads on Nintendo's Wii, among other consoles.)
Epstein said that some of the hype about the PS3's demise is a little short-sighted: "People also said that the Wii was a fad when it first came out and was going to go away-and look at how successful it continues to be. From what I understand, the PS3 was designed to have a longer life-cycle than other consoles. The PS3 is a seven- to 10-year product-not a three- to five-year product."
Maybe the market could have supported long-term investments in expensive hardware a few years ago, but with little to no growth forecast for electronics purchases in 2009, Sony may have to revise its strategy if it wants the PS3 to really thrive.