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"Sony's uphill PS3 struggle?"

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Thu 25/05/06 at 16:20
Moderator
"possibly impossible"
Posts: 24,985
Is the PS3 going to survive at the higher price point announced by Sony? I have some doubts that it will stay at that price for long when standing alongside the Xbox 360, which should drop in price around the same time, and the Wii which will appear the year after, supposedly at a much lower price (sub £199 for sure).

The Playstation name will ensure that there will be quite a few takers at launch, but it will be only those that can afford to splash out. I guess it’s similar to most new technology in it’s first few months. DVD players were £1000 or more when they first arrived and it took a fair few months for the sub £399 player to be spotted in the shops, and yet the format took off. However, the DVD never had a rival, the PS3 has.

Sony have set ambitious goals to sell as many PS3s as they can, but the only way I can see them meeting those is to make a larger loss on the console in the short term. They major issue is the inclusion of Blu Ray technology, the stand-alone players out at the time may well still be in the £1000 area by the time PS3 hits the shelves. This, they can argue, makes the console an absolute bargain, but who will risk their money on the new format until it has enough releases?

So this time I believe that the Playstation name and the initial release games will really have to work harder to get those consoles off the shelves, but with even the E3 coverage not being enough to stop people shaking their heads at the price announcement, it will be an uphill struggle. If it wasn’t Sony behind the marketing, I’d say that it wouldn’t stand a chance...
Sat 03/06/06 at 06:32
Regular
"8==="
Posts: 33,481
No doubt most of the PS3's first generation games will look pretty poor next to the 360's 2nd/3rd wave of games.

Also Xbox Live is obviously very well established and doing a nice job so if Sony make one mistake with their online setup that'll count against them.

Also don't forget that a lot of 2nd-hand 360's will be about by the time the PS3 launches and no doubt those'll be shifting for half the cost of a PS3 or even less.

Sure it's a cheap movie player but people have DVDs and if they just want a machine to game on then the Wii and 360 will probably be the better choices.
Fri 02/06/06 at 17:34
Regular
"lets go back"
Posts: 2,661
£400 isnt that much for a console, but you have to add on the £500 for a new TV to enjoy it in HD, but that goes for the 360 too. New technology is always expensive and the fact that the PS3 will cost more than the 360 doesnt really matter. The PS2 was more than the Dreamcast when it was released and the Dreamcast dissapeared without a whimper.

They'll sell it at a loss if sales dont go too well just so they can get the consoles in the homes. Even if only two thirds of current sony fans buy the new console they will still shift about 70 million plus. They will make loads on software sales and if Blu-Ray takes off everyone will buy one then because it will be cheaper than a blu-ray player.
Sun 28/05/06 at 13:42
Regular
"The definitive tag"
Posts: 3,752
Game wrote:
> £425.
>
> That's not out of peoples price range... but when you add 2
> £50 games, an extra controller and an EyeToy 2, you're
> pushing £600.

Exactly. I'm not prepared to pay that for a console I'll probably only be disappointed with.

However, I know a lot of people will get one on launch regardless of whether they can really afford it or not. I'd rather just wait for the inevitable price drop.

Also, I don't want my brand new PS3 to start giving me "disc read error" after 6 months. I'm on my 3rd PS2 because they don't work properly. I can't afford for that to happen with these kind of prices involved.
Fri 26/05/06 at 18:08
Regular
"Fishing For Reddies"
Posts: 4,986
£425.

That's not out of peoples price range... but when you add 2 £50 games, an extra controller and an EyeToy 2, you're pushing £600.

People will want a PS2 just so they actually have one... but as for Software:Hardware sales, I can't see the first figure being too high. Still, you never know.. depends on the games.

All told, I think £400 would be a fair price. If the conversion comes good before September, we might see a £399 price point... the £3?? is a big thing. £4?? and people will be put off...

I'll only get one for myself if anything special arrves at launch. So far, the 3-or-so I get are all going straight on eBay.
Fri 26/05/06 at 18:06
Regular
"The definitive tag"
Posts: 3,752
Sony didn't have an "uphill struggle" when they started. In fact, it was all decidedly all downhill for them until they told us they were going to charge laughable amounts for a machine that will probably be only marginally better than a 360.

They've dug themselves into a hole, and I don't care if they climb out or not. I'm not paying unreasonable amounts for a console that will probably only scratch my discs and them blame me for it.
Fri 26/05/06 at 14:48
Moderator
"possibly impossible"
Posts: 24,985
Will it be £400 or £499 though?

And, yes, I did mention the Blu Ray element, it is the major selling point at that price.

Still, it's too much for me getting one at launch. Maybe at the first price drop...
Thu 25/05/06 at 18:24
Regular
"Fishing For Reddies"
Posts: 4,986
This is SONY we're talking about. The kings of Marketing. To be fair, i'd imagine most people were expecting a £400 price point for the PS3. If you actually consider what's in the machine and what it can do, you can understand the move.

For a start, it's a Blu Ray player. We all know this. We all know that, forced or not, we pay a premium price to be early adopters. It's the same with all technology. Remember when the first plasma screens came out? They were £16,000, then £10,000 and now a 50" Pioneer XDE is uder $4k - and that's a beaut.

Second of all, you have the CELL. Okay, so it doesn't cure cancer, and Steve Jobs kicked it to the curb, but Sony have to sell CELL processors. Otherwise they're up a creek. By putting CELL in the PS3 - which is clearly a 120million unit seller - they've effectively solved the problem of CELLs lack of uptake.

There's more. HD functionality, build in HDD, software coding. The list goes on. You also have a 'TILT SENSOR' in the controller - that's a wiierd concept?! - all these technologies and inclusions cost money. The price mounts and SONY is streches as far as it can be.

We'd all have loved a £300 fully-loaded PS3, but thinking about it, it was never going to happen. Their VAIO laptops are pricier than anything offered by TOSHIBA or HP (spec for spec,) their MP3 players are more expensive than Apple's equivalent. It's SONY trademark to put a premium on their prices. They wouldn't be so desirable if they were priced like LG, Medion or Nintendo.

PS3, though, should be fine. It's £400, but in an age where some people are daft enough to spend £3 on an 'EXCLUSIVE BIG BROTHER RINGTONE 2006' (JUST TEXT BB TO 81881*) I can't see them having a problem.

They have the features, the brand and the ability. The only thing I can see being a hurdle is the software - it's all crap! Second wave 360 titles will hit around September - November; Gears of War, Mass Effect Moto GP and Co. should have quite a lot to say about why you should save yourself £130!



* This won't work...
Thu 25/05/06 at 16:20
Moderator
"possibly impossible"
Posts: 24,985
Is the PS3 going to survive at the higher price point announced by Sony? I have some doubts that it will stay at that price for long when standing alongside the Xbox 360, which should drop in price around the same time, and the Wii which will appear the year after, supposedly at a much lower price (sub £199 for sure).

The Playstation name will ensure that there will be quite a few takers at launch, but it will be only those that can afford to splash out. I guess it’s similar to most new technology in it’s first few months. DVD players were £1000 or more when they first arrived and it took a fair few months for the sub £399 player to be spotted in the shops, and yet the format took off. However, the DVD never had a rival, the PS3 has.

Sony have set ambitious goals to sell as many PS3s as they can, but the only way I can see them meeting those is to make a larger loss on the console in the short term. They major issue is the inclusion of Blu Ray technology, the stand-alone players out at the time may well still be in the £1000 area by the time PS3 hits the shelves. This, they can argue, makes the console an absolute bargain, but who will risk their money on the new format until it has enough releases?

So this time I believe that the Playstation name and the initial release games will really have to work harder to get those consoles off the shelves, but with even the E3 coverage not being enough to stop people shaking their heads at the price announcement, it will be an uphill struggle. If it wasn’t Sony behind the marketing, I’d say that it wouldn’t stand a chance...

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