Will Sony's Consoles Get Back in the Game?

I think I should start this be saying that I have always admired Sony (SNE). Their combination of quality, technology and design has been spot on for decades. So I have bought a lot of Sony kit: hi fi, TVs, digital cameras, walkmen, diskmen, video etc. Not only that, I have also worked on many Playstation games, helping to get a number of titles to number one.

So it has not been good that on this blog I have had no option but to document the slow motion train crash that is the Sony Playstation PS3. Sony have got just about everything they can wrong, they have lost sight of their customers and in doing so they have thrown away their previous dominance of the home console market. The simple fact is that the PS3 is a far less good ownership proposition than its main rival, the Microsoft Xbox 360 (MSFT). Even if they were the same price, which they are not.

And now we have the worst possible news. We are right in the middle of this console cycle so sales volumes should be ramping up considerably. They certainly are for Microsoft and the Xbox 360. So it came as a shock, even to me, that Q4 ‘08 PS3 sales were 440,000 down in the same period in 2007. This is an unmitigated disaster and will take a huge amount to recover from if it is not going to be terminal for the Playstation brand.

Sony have their back against the wall in that the PS3 is too expensive to make, it has an uncompetitive software catalogue, its online offering is second best by a long way and Sony have no money to buy the maneuvering room they need to fix things.

2009 will be a long and very hard year for the PS3 and I just hope that Sony find some way, against the odds, to get back in the game.

Disclosure: None

Comments

[RobJ:]

I really wish that people would research a little before they blogged. Sony has sold to date 20.3 milion consoles worldwide. What's even funnier is that in the PS3s first two years ending last november it had sold a little over 17 million. Considering that in the same time frame the XBox 360 had sold 14 million units. Yet I didn't see any gloom and doom articles about the Microsoft console. With 2009 here Sony has a stellar lineup of first party exclusives that Microsoft could only wish to have. Starting off with Killzone 2 which has been called the pinnacle of console First Person Shooters by nearly all of the gaming press. Then there are the others being released throughout the year. InFamous, Gran Turismo 5, Heavy Rain, M.A.G., White Knight Chronicles (in the US/EU). Let's not forget the exclusive Japanese only release of Final Fantasy XIII. This plus all of the multiplatform titles being released on both the PS3 and XBox 360. So that puts your uncompetitive software catalog rheotoric to rest.

Now let's address the most expensive portion. Granted being $399 does make it the most expensive console to purchase compared to the XBox 360 Arcade at $199. But for $399 you get a 80 Gig hard drive, wireless internet, internet browser, free online play through Playstation Network. There is also Playstation Home which is an incredible 3D world social networking application. Back to the hardware you also get a firmware upgradable Blu-Ray player as well as rechargable controllers. If you were to tack on a Blu-Ray player, wireless internet adapter and recharge station for the $199 XBox 360 the price tag would be around $500. Let's not forget the $50/yr recurring fee for Xbox Live which would bring the price to approx. $550. So know that bargain XBox 360 just cost you $150 more than a PS3.

Now please research a little before you spew FUD. I understand you like to be read and heard but at least be informed before doing so.

Feb 02 10:54 AM

[the508seal:]

chiming on, the previous comment left out "Little Big Planet" perhaps the best game for the under 12 set ever.

Feb 02 11:17 AM

[TheLugoves:]

I must concur with RobJ. The 'middle' of the 10year cycle for PS3 is inaccurate. Online & Software superiority is not yet demonstrated. Certainly not by this unsourced article. If PS3 was the 'same' price it would be far superior to the MS$ Xbox SKUs, and it's value at it's current price is easily debated. As an investor & a gamer I despise poorly sourced articles that would serve better on a 'Gaming' blog in an attempt to solicit 'FanBoy' rivalry for hits. Seeking alpha seems to gravitate to these articles monthly. I predict SNE will rebound at the conclusion of this recession, albeit slower than in the past since 'timing' of the PS3 development cost was inadvertently poor. Without MS$ diversification SNE would be in a better position post-recession as it's console is upgradable and at least temporarily 'future-proofed' and these costs are for the most part behind them.

Feb 02 11:42 AM

[User 349470:]

I think that Sony is in trouble because of the initial cost of their system. I have a 360 and a Wii with several games for the 360,( the Wii not so much). I am wanting to and going to purchase a PS3, but not UNTIL it comes down in price. I am not going to disagree with any of the arguements about the value of the PS3 and its capabilities. I agree that for what you get it is a good value. But here is the situation, I already own a gaming system with a lot of good games and right now there are only a few games that I want to play, that are PS3 exclusives and yes, there are more coming out this year( that is why I am going to buy one). But I look at it like this " Do I want this game so bad that I am willing to spend $500 to play it?" The $500 comes from the price of the console and 1 game and tax. It is a substantial investment on the front end. I know that people say that if you compared all of the capabilities of the PS3 and added those into the 360, the 360 would be more. But at least you have the OPTIONS with the 360. If I had a PS3 and I wanted to get a 360 just to play a few games and didn't care about playing online, I could get in the door for around $250-$300 ( Arcade with a game and tax ). I am not being a FANBOY, in fact I think that there are a lot of others like me who have another console who would like to have a PS3 and haven't gotten one yet because it is a large investment. Right now that is Sony's dilema, there people like me who are going to wait until they come down on the price before they buy in. But hopefully Sony can figure out a way to lower it without taking a big hit on their costs, since they are still selling at a loss. I just wanted to comment that there are more people like me who want to buy in but are waiting for the right time.

Feb 02 06:46 PM

[itsME:]

I wish we all could drive the same car, own the same house, wear the same clothes, eat the same food, work at the same place. Fact is I bought the PS3 because I liked what they offered over the 360 (i.e. Wi-Fi, Blu Ray, large HDD, free PSN, Bluetooth, Home). What fun would that be to have 2 consoles with the same hardware? Sony is doing the right thing here. If you try to equal your competition, what edge does that give you? Sony is taking a risk and it will soon pay off. Any by the way, Sony has a HELL of a better exclusive game catalog than MS, hands down! Only the uninformed and MS fanboys will argue that fact.

Feb 02 06:49 PM