Game publishers are pressuring Sony to cut the price of the PlayStation 3 or face the risk of more development funds shifting to the Nintendo Wii according to a Bloomberg article. Sony, which used to be the undisputed industry leader, currently sits in third place for this generation’s line up of video game consoles. As the VGCHARTZ sales numbers show, the Nintendo Wii has an iron grip on first place, the Microsoft Xbox 360 sits in second, and the Sony PlayStation 3 is third.
Multiple publishers in the Bloomberg article laid down the bottom line they face due to the way console sales have played out. Development is divided in to software titles for the best selling Nintendo Wii and software titles for the rest of the market which consist of the PlayStation 3, the Xbox 360, and the PC.
Electronic Arts’ Peter Moore very directly stated in the Bloomberg article, "You can't ignore the guy who has half the market." Evan Wilson, an analyst at Pacific Crest Securities in Portland, Oregon believes Xbox 360 and PlayStation 3 titles are typically more expensive to produce and as a result, “The publishers need the PS3 install base to grow in order for most of these games to be profitable.”
Recently, Sony has enjoyed some momentum due to the release of quality exclusive titles for the PlayStation 3. Killzone 2 has lived up to the hype and has received high reviews. Sony has also signed a deal with NBC Universal to deliver movies and television to the PlayStation 3. In Japan, the PlayStation 3 recently out sold all competitors thanks to the release of another highly touted exclusive Yakuza 3 or Ryu Ga Gotoku 3.
Due to the success Sony has recently enjoyed, a price cut in the near future may be a wise choice in order to keep the momentum going. All past queries about the possibility of a PlayStation 3 price cut have been turned down by various Sony executives. Combining a continuous stream of solid exclusive software titles with a cheaper PlayStation 3 may be what is needed for Sony to compete for second place with Microsoft.
quote: Development is divided in to software titles for the best selling Nintendo Wii and software titles for the rest of the market which consist of the PlayStation 3, the Xbox 360, and the PC.
quote: In 2008, Activision Blizzard Inc., the world’s largest game company, generated 32 percent of its console revenue from Wii titles. That compared with 19 percent for PS3, according to Activision.
quote: it IS blizzard we're talking about after; home of the $15 monthly subscription fee & breaking a single, $50 game into 3, $40 games. pc gamers are considered unintelligent cash-cows to them.
quote: And I think the issue is that its one of the best and easiest to update Blu-ray players on the market. Plus for the little bit of extra cash, you get the ability to play games should you choose to.
quote: the system REQUIRES a HDD and bluetooth.
quote: wireless removal would knock off what... $5 off? yea people will give up wireless for that.
quote: however users would have to buy a 2.5" Sata HDD to throw in the system, but you can get them cheap enough now days.
quote: You don't get it...you want Sony to sell a product that doesn't do what its main function is out of the box? You think most of the population wants to install a hard drive themselves? You think it costs Sony more than it does you to buy a hard drive?
quote: Lemme guess, you also think Dell should sell computers without hard drives...
quote: 80 gig hdd - $47ish dollars 8 gig SSD - $93ish dollars
quote: A lot of games on the PS3 require mandatory hard drive installs. Besides that, anyone remember how crappy the 360 Core was? Hardly anybody bought it because the lack of a HDD crippled the system. Most people just paid extra for the Premium. As for wireless, I'd consider it a basic thing to have these days for any net capable device.
quote: . What else could explain the X-Box 360 outselling it, when it's historically been a totally unreliable piece of crap?
quote: From an ROI standpoint, you are shooting yourself in the foot, while pointing the barrel at your kneecap, if you allow the consumers to choose what peripherals they want to put into YOUR hardware.
quote: Xbox 360 was power-written to allow only a 120gig max hard drive. Even if we hack it open to use our own bare drive, it really has to be a specific brand and type, basically the same make/model that M$ resells in the first place.
quote: Hence why you sell it as addons? Did you read my post? It's good for low income earners so they can grab accessories one by one when they have the money.
quote: I would, I don't need wireless, and $5 bucks is better in my pocket.
quote: What's up with your infatuation with low income earners? In any event, "low income" earners have no business buying this kind of hardware anyway. The PS3 is a luxury, not a necessity like food on the table that "low income" earners struggle with. Good grief, that mentality is a large part of why this nation is in such a mess right now.
quote: If you would really miss $5 in your pocket, then maybe you need to reassess your spending (and saving) priorities too.
quote: The point here is that Sony probably already knows that nobody wants a "stripper" model of the PS3. You can buy a BD player for $150-$200 if that's all you want. Why else by a PS3? To me, it is a streaming/surfing HTPC (free of charge to access the net BTW), gaming console, BD player, and media entertainment center all in one. You just can't beat that for $400.
quote: You just can't beat that for $400.
quote: So if trying to save $5 on everything is such a bad thing, then how should I be reassessing my spending priority's when I am trying to save money on every item I buy?
quote: $5 off of a $400 system isn't going to cut it unless they make other cuts along with it. As for removing the HDD, you can't. You can't play games without it and the average consumer isn't going to know how to buy a HDD to install in it themselves, plus what's the point if they sell hardware that can't play games. If it's useless out of the box, they'll just end up with a bunch of pissed off parents and grandparents who just saw a cheaper price.
quote: For someone who doesn't have tons of money and saves up a long time to the luxury of a ps3 might not have or want to spend $5 here and there extra for a feature they don't need.