Will Sony keep afloat in 2007?

Although it's been predicted that Sony would have to lower the price of its new PlayStation3 game console to reap the benefit of mass adoption, the company may have to do that way before it was ever planned.

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Marty83704900d ago

Ofcourse.Sony's movie and electronic busineses are makin loads of cash

sajj3164900d ago

Before I get accused of being a sony fanboy ... I proudly own both the 360 and PS3 and like them both.

Now ... to this article. Who is Brian White and why should I care about his opinion/blog and why is this article making it to N4G? Is he Micheal Pachter of Wedbush Morgan Securities? If not, his opinion makes no difference.

Concerning his blog, its absolute nonsense about his point of the 4-to-1 and 5-to-1 sell ratio of Wii versus PS3. Different price points, different marketing demographics, different audience on who Sony caters to versus who Nintendo focuses on. Of course they are going to sell 4-to-1 or 5-to-1 or heck 10-to-1 if they are focuses on a large demographic. They should be selling these numbers!!!

What Sony needs to do ...

1. Drop PS3 price for both SKU(s) to 399.99 20GB or 499.99 60GB and focuse on software sales (increase softwaare attach ratio). if not a $100 decrease ... then $50. Any drop in price guarantees more systems sold even if its marginal. The key is to get the attach ratio up.

2. Deliver at the GDC (Game Developers Conference) before the Euro launch. X-mas 07 is critical for next gen systems so setup for success early. Also, time to stop looking at Europe as a third rate video game region. Just look at the success of the Nintendo DS.

3. Keep pushing Blu Ray. As much as you all curse Sony for pushing this format onto the PS3, its working. Blu Ray is Sony's Messiah at this point (from an article I read the other day). Stablize the production of this format and push it's positives(space, support, etc) (In case you are wondering ... I also own HD DVD but see Blu Ray as the future)

PS360WII4900d ago

different marketing demographics...?
I guess it's kind of true but not really. Wii is marketing towards gamers and non-gamers while ps3 is marketing towards gamers. So it's the same just Wii has that extra non-gamer also.
Price point.. that's not really an issue it's still a game console it's not Nintendo's fault that they have a cheaper console it's just how it worked out. Just like 360 has a cheaper console than ps3 too.
A 50 dollar drop in price will NOT do anything other than make people laugh at it. GDC I think Sony will own that for sure ^^. The 3rd point yes they will most surely push Blue-ray without question.
Good post I liked it just can't help but point out that Nintendo and Sony are targeting the same people just Nintendo is also targeting others and if price is an issue well then PS3 should not of come with all them bells and whistles

VirtualGamer4900d ago (Edited 4900d ago )

You state that Nintendo is targeting gamers and non gamers and the PS3 is olny targeting gamers. What about the person that buys the PS3 as a Blu-Ray player? What if after buying it as a Blu-Ray player they decided to try a game that they saw advertised that looked interesting to them?

How about the gamer who bought the PS3 for a gaming system but decides to buy a Blu-Ray movie to try it out?

As far as price point did you forget that Sony has a cheaper game console on the market with a huge library of games that is out selling the Wii, Xbox 360 and PS3, called the PS2?

The PS3 is for people who are into graphics. HD graphics for movies and games. To buy a P33 and not have a HDTV to take advantage of the system would be a total waste of money. (IMO) Since HDTV market penatration is not that big it limits itself to who it would appeal to right there. Systems like the Xbox 360 and the PS3, that do take advantage of HDTV, will no doubt help increase the sales for HDTV's in the years to come.

When your losing hundreds of dollars a console sale, I am not sure you want to increase that loss by lowering the price further and having even more people buy it. Since the market for the PS3 is owners of HDTV's, who have provem to be early adopters of tech and are willing to spend more to do so. I would think that buying a PS3 for $600 would be a bargain to them. Especially when stand alone Blu-Ray players are selling at $1000 and the PS3 at $600 is getting better reviews as a Blu-Ray player. Add to this that the PS3 is a great game console as well and to me its a no brainer.

Sony just needs to work on producing more exclusive games that take full advantage of the system and creating a larger and larger library of games. Once production cost come down and they can offer the PS3 at a cheaper price and not keep bleeding money as they are now then it will make sense to drop the price and increase sales. Not only that but by then more people will own HDTV's and be considering buying a system that can take advantage of their TV for both games and movies. That's when the PS3 will appeal to the mass market.

ssgtmarsh4900d ago

Get rid of the blue ray and make it a video games system just like the a 200 USB blue ray additional just like Microsoft then maybe...just maybe, you too could have an install base of 10 million consoles...until then, I will continue to see them on the shelves.

Devastator_oftheweak4900d ago

Thing I have ever heard, first of all the games are on Blu-ray disks, what a dumbass. Yeah make it a USB drive so once again we have to by an add on. Sony got it right this time, leave it alone, it was the PS2 we had so many add on's, no more. As for a price drop, 50 won't hurt too bad, and I already own one. The system is worth it, quit griping over it. Look the 360 is 499.99 for a game system and a 20GB hard drive, Sony has included the High Definition DVD player, a 60 GB hard drive and more for $599.99, why should they lower the price really, they have given you a basic computer with all of the options built in. I love the PS3, it has great features, some good titles and great ones on the way. If you take the blu-ray out of the system you have a box, great thinking. Get a life, buy one and see for yourself what your missing.

SomeAnalyst4900d ago

Sure, to a videophile & hardcore gamer the tech is worth $600, but Sony won't find 105 million of such people to maintain the Playstation tradition. They can buy a Wii and seven games instead.

DJ4900d ago

The PS3's Blu-ray drive only costs $100 to manufacture. It's actually the motherboard that's costing them a lot of money ($500). You can thank the new XDR RAM, FlexI/O, HDMI, and bunch of other inputs/outputs for that.

Covenant4900d ago

Wow...then why does a stand-alone Blu-Ray player cost $800-$1000? I always wondered how MS could produce a HD drive for only $200 (actual cost: about $150, according to a handful of semi-reliable sources, so take that with a grain of salt). Does anyone--DJ included--know why a Blu-Ray player costs nearly a grand, when it seems that the central components are (relatively) cheap? (Same with HD players, which I have always read cost only a little more than regular DVD to make).

Non-fanboyish, flame-less replies would be appreciated. Pi$$ing contests over trivial things are stupid.

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