Sony, Wii Have A Problem
December 17th, 2006 Davis Posted in Technology, Video Games |
It’s looking less and less like a Merry Christmas for Sony Executives. After suffering from shortfalls on their PS3 and being caught red handed trying to pull off a flog, they now have to worry about an upcoming price war with the Nintendo Wii. Already the Wii has proved to be popular beyond anybody’s expectations, but a price cut would be a knife to the heart for Sony’s PS3 plans. It’s unique game control has made it the must have gift of the season and already it’s next to impossible to find.
You’d think with all that buzz and a lower price point to begin with, that Nintendo would be happy to enjoy the lead they’ve taken on the PS3, but if you believe the rumors circulating amoung the blogosphere, Nintendo has more heartburn in store for the other consoles. In a move that neither the Xbox 360, nor the PS3 could match, Nintendo is rumored to be considering a price decrease on their Nintendo Wii starting in spring 2007. They are also expected to unveil Wii’s in various colors as well.
If this turns out to be true, it’d be terrible news for the PS3. At $600 a pop, the PS3 is the most expensive console ever launched and while it’s already proven to be popular with the hardcore gamers, it doesn’t offer much appeal to the non-core gamer who wants a more interactive experience. To make matters worse, if you compare the graphics on the PS3, you’ll find that it doesn’t offer a significant advantage over the Xbox 360, which has already been out for a year. Between the Wii’s early buzz and the expecatations that the Xbox 360 will hit 10 million consoles by the end of the year, Sony already has quite a bit of catching up to do. If it turns out that Nintendo isn’t afraid to engage in a console price war, Sony will face a tough challenge in maintaining the lead they built with their PS2.
December 18th, 2006 at 3:23 pm
On the surface you’d be right. But the PS and Nintendo crowd are a very dis-similar demographic. My husband did a stint at EA, and you would be surprised at how much of a niche both Nintendo and PS have etched out. Additionally…the price factor for the PS3 has not been a factor. People have a lot of money to burn this year. And lastly.. the graphics issue is more of a limitation of the televisions. The capability of the PS3 is much higher than can be displayed by your standard TV. Even HD.
December 18th, 2006 at 3:39 pm
I do think that the PS and Nintendo appeal to a different graphic, but the PS2 sold 110 million machines. That’s a huge number of consoles. Not all 110 million were hardcore fans, they just wanted a good video game system. The Wii has limited downside, they can only take market share from the PS3. In the past, we saw the Xbox and PS2 discount their prices everytime they wanted a boost, with the PS3 it makes it hard to do and with the Wii threatening a price war, it could be enough to convince the casual gamer to keep their PS2, but upgrade to a Wii. We’ll see how it shakes out, but I’d be really surprised to see Sony sell another 110 million PS3 consoles over the next several years.
December 18th, 2006 at 5:45 pm
True… but 110 million over time. I think the PS2 has been out for like 6 years right?
The gaming industry has changed quite a bit in 6 years. Its gone from getting funny looks about being a gamer, to being incredibly mainstream. Who would have ever thought the industry would out-pace the movie industry? I don’t even think most in the gaming field would have ever suspected it. Even 6 years ago.
I would make a friendly wager that in 6 years the PS3 would sell 110 mil units. Once another company gets into the blue lazer field - that would allow the PS3 to be dramatically cheaper.
December 18th, 2006 at 8:46 pm
You’re right that it took six years, but I think a large part of that growth was because they could compete with Xbox on price. I remember when I first bought my Xbox it was because they cut the price and a week later Sony did too. At $250, the Wii is poised to bring in non gamers and gamers alike into the industry. I think that this will eat into Sony’s market share, although I’ll admit that anything can happen over the next six years. Personally, I think Blu-Ray goes extinct and Sony will need to retool their system if they want to compete, but I will take you up on your bet and will say that 6 years from now the PS3 will have sold less then 110 million units. We’ll make it for a free lunch, it’s up to the winner to remember the bet and to collect on it, but Sony’s going to need to seriously innovate, if they want to maintain the lead they acheived with their PS2.
December 18th, 2006 at 10:12 pm
Worldwide - right?
December 19th, 2006 at 5:02 am
It would have to be worldwide. As far as I know there are only about 105 million TV households in the US, so if the can sell 110 million in just the US, then I’d make it a steak dinner instead.
June 28th, 2007 at 1:49 pm
i think that the wiis graphics are a real problem.