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Posted Jun 21, 2007 at 02:17PM by Gryff33 Listed in: PlayStation 3 Tags: PS3, Playstation 3, console wars, playstation, Blu-ray
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IMPORTANT: I have nothing against the Playstation 3 or Blu-ray. Never having played the PS3 or watched a movie on Blu-ray, I really COULDN'T have anything against them. My statements about the PS3's current sales are based on the numbers as I know them, not my opinions or any data that I can directly and personally confirm. This is purely objective, from an economic standpoint, not from a gaming standpoint.

It certainly looks like Blu-ray is winning the format wars, which is exactly what Sony's Playstation division wanted. Sony has been reasoning all along that the success of Blu-ray would help the PS3, and their reasoning was relatively sound. However, now that both have been around for a while, we see Blu-ray with strong success and the PS3 trailing its competitors. Why?

I believe Sony was hoping Blu-ray and the PS3 would help each other, but it only ended up working one way: the PS3 helped Blu-ray, but Blu-ray didn't help the PS3. I believe Sony's mistake rests in the branding: rather than calling this device the Playstation 3, they should have given it a new name to separate it from its video game-focused predecessors. Why? Well, the only way someone can know that the PS3 plays Blu-ray movies is to seek information about it, but if you're not interested in a video game console, you're probably not going to check out the details. As such, to non-gamers, the PS3 is just a 600 dollar video game console. Advertising certainly helps bring the news to some, but for everyone else, Playstation=video game console.

Can I prove my theory? Of course not; I haven't conducted a mass survey or anything like that. However, price has always been labeled as the biggest factor hurting the PS3. The price is bad for a video game console, but not for a Blu-ray player. That indicates that people are primarily looking at it as a video game console; if they weren't, the price wouldn't turn them off.

It's understandable that Sony wouldn't want to give up the Playstation brand, but if that's the case, they should have left out the Blu-ray. If they did, while Blu-ray would have slightly less support, the PS3 would have much more because it would be cheaper. It seems Sony is beginning to realize that its functionality as a Blu-ray player is not selling the PS3, given that they've released a Blu-ray player that's cheaper than the console. Now they have to find a way to make the console much cheaper. Even analysts who predict the PS3 will win the console wars tend to base that prediction on the system having a massive price cut; if Sony doesn't deliver, it will turn out very differently.

Designing their console in part to sell another product was a mistake, one from which they seem to have learned. Now they have to rectify it in order for the PS3 to be as successful as they want it to be. They can't offer an alternate model without Blu-ray, because games are also on Blu-ray discs, so they'll have to figure out something else.


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3 Comments (3 Unregistered comments)


Unregistered Comments
 1.  » found somethin intresting

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by hi (Unregistered), at Jun 23, 2007 at 11:29AM

 2.  » That was actually good...

I own a wii and even I agree that the PS3 is the best console right now. ALthough it is (most advanced technology) that wontmakeit sell. Nintendo made the right move selling an affordable console. If sonydoes that... like selling a 400$PS3, everyone would buy one. 600$ is just too much even for a PS3. THey have 2 options: sell the PS3 at a loss of 200$ (like 350-400) and sell the mostconsolesever,or keep the price upand continue their normal sales. I do agree with this articleon how including blu-ray wasnt a good idea. All it did wasincrease the price and make the PS3 look too expensive. IT will take a good year or two before people begin to accept it more. I would like to get one,butnot for 600$.



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By the way, to the comment aboveme.... Why do we care

by mr memy (Unregistered), at Jun 24, 2007 at 09:44AM

 3.  » well actualy no

Actualy incuding Blueray was a very smart decision on Sony´s part. You see there is a format war going on between HD DVD (Toshiba) and Blueray (Sony). These Media formats provide a lot more money than the Playstation brand alltogether.

By supplying the PS3 with Blueray sony could make a fast push into the market to bea out the HD DVD by supplying the player for it in a very cheap fashion and at the same time spreading it. Sony could then say ¨hey we´ve sold 10 million Blueray players¨ when most of them were PS3´s anyway. But this would convince the major retailers to hop over as can be seen in the last few weeks.

Target and Walmart have agreed to sell BlueRay Media. Japan is Sony territory since HD DVD is way to expensive over there, as well as sony being Japan´s Asian pride. Blockbuster only rents Blueray instead of HD DVD.

You have to understand that winning the format war for Sony was a lot more important thant INITIAL sales of the Playstation 3.

WHY you say, because Sony knows it will profit over time as the parts become cheaper. That means it´s better for sony to sell consoles in the future than right now because at the moment they are losing 200$ per PS3 sold.

In the meantime Sony can continue it´s agressive marketing for Blueray and come ahead in the format race netting it billions and billions of dollars, more than the PS3 will ever make. Not too diss video games but it´s true. There are more people in the world that will buy just the media such as movies and music than those that are exposed to and willing to buy video games. Video Games in the open world still have a childish-outlby society, something which Nintendo has been succesfully trying to change with the Wii.

by Niklas (Unregistered), at Aug 02, 2007 at 09:00AM



 



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