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Where Sony went wrong

As noted in the latest issue of Business 2.0 Magazine, the eagerly-anticipated PlayStation 3 has already lost this round of the console wars to its Japanese rival, Nintendo's Wii. Since late last year, when both consoles were released, the Wii has consistently outsold the PS3 in every major market. Sony's PS3 is packed with costly gee-whiz features that turned out to be a drawback to consumers faced with choices. Nintendo's Wii simple, elegant design and low price are two reasons it's consistently outselling the PS3.
For Nintendo, the number 3 company in the videogames business, it's a David-vs.-Goliath turnaround. For Kutaragi's team, who ruled the roost of this industry for 12 years, it's a shameful final defeat.
There are a number of lessons we can glean from this -- not just for the future of videogame consoles, but the future of consumer electronics. Decades from now, PS3 vs. Wii will be remembered as a cautionary business tale: how pride, politics, and an overabundance of technology can blind you to the simple truth of what consumers want.

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money.cnn.com
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Saint Sony3764d ago (Edited 3764d ago )

indeed.
+ the odd idea that everyone would want to get blu-ray.

specialguest3764d ago (Edited 3764d ago )

they should have started and ended the entire article with that one word: price.

I would say 95% of the consumers who rely on their parents to buy them a game console had been totally eliminated. I know for a fact that had this been the early 90s and the SNES was $600 or even $400, my parents would NEVER buy me that console.

MikeMichaels3764d ago

It's been out for 6 months. Wii had the early buzz and has done well, but can it sustain it.

The game industry isn't a sprint, it's a marathon. Alot can change in 5 years.

nix3764d ago

otherwise - it's done everything right!

QuackPot3764d ago (Edited 3764d ago )

Okay let's do the maths:
Per UNIT, Wii is $250, Ps3 is $600. Wii sells 6 million UNITS; Ps3 sells 3 million UNITS. By my calculation, that puts Sony ahead on cash sales even if Wii sells 7.1 million UNITS. Go figure!!! Could this all be Ps3 bashing once again? Hmmmmmmmmmmm?

Massive blunder with the Blu-ray contributing to late release and high price of Ps3.

But fact is, even without the blu-ray and a price similar akin to xbox 360 at $350, Wii still would be outselling the next gen consoles.

There's noway that Sony would sell Ps3 for $250 at release - they'd make astronomical losses on the sale of the console which wouldn't be recovered by games sales.

So the Wii will fill a niche with it's unique gameplay and price until the next gen's prices drop and/or they develop similar games and controllers. The next gen technology means they will have a longer life and will eventually pull back Wii's unit sales lead - definitely their cash sales.

So enough already with Wii rocketing sales. Hell yeah. It's only logical that they are selling well with what you get for your dollar$.
This is no longer a story. Check this space in 10 years.

+ Show (3) more repliesLast reply 3764d ago
HandShandy3764d ago

No one... except small kids will have JUST a wii on it's own! Most Wii owners alread have a PS3 or intend to get one in the future. You can't own a Wii just on it's own, that's a major drop out.

As a few people have pointed out on here - the Wii is like an expensive add on/peripheral for a major games console.

The Wii is on a different scale and aimed at a different audience than what the 360 and the PS3 are aiming at. Idiots. TWO TOTALLY DIFFERENT PRODUCTS!

TheExodus3764d ago (Edited 3764d ago )

Actually most Wii owners can't possibly own a PS3 because the numbers simply won't support your assertion: 6.4 million Wiis sold worldwide & 3.15 million PS3s, but the numbers would support your assertion if rephrased:

Most PS3 owners already have a Wii or intend to get one in the future.

But that would just beg the question: Why would PS3 owners be waiting to get their hands on a Wii?

testerg353764d ago

Not sure if the average household can afford ~$1000 for Wii and PS3 stuff. I think that even if Sony is able to lower the price, Nintendo and MS are able to counter and still make the PS3 look expensive.

castdreams3764d ago

'Most Wii owners alread have a PS3 or intend to get one in the future.'
I'm sorry, that's just not true. None of the people I know who are wii owners want a ps3, but even if I knew a thousand people who own a wii, and asked them if they intend to buy a ps3, and they ALL said yes, that would account for less than 0.0002% of all wii owners in the world. Yeah, that's 'most' of them alright. I don't like the wii or nintendo, but blind ignorance bothers me.

Ggame3764d ago

The PS3 (nor X360) is difference.

OneBubbleBastard3764d ago

thinking The Ringer would be a threat!

CrazzyMan3764d ago

if they would do that, then developers would be able make such amazing games, that nintendo could never dream about. =)

nintendo didn`t invent analog stick or rumble, BUT they made popular those features.
sony don`t make popular eye toy and that sux.

look those two:
http://www.youtube.com/watc...
http://www.youtube.com/watc...
just think how could you integrate these features in all games..
that would be wow, real next gen.