NPD Figures Bring Out the PS3 Hate

[wraggster]

The Washington Times didn't take the news of Sony's poor Playstation sales well. They're calling the sales fumble internal sabotage, and they're hopping mad about it.

Sure the Playstation 3 didn't do so well last month, selling 378,000 console sales in November, down from 466,000 last November. And the PS2 also saw a drop in sales, with the company moving less than half what they did last year.

But sabotage?

XBox 360 has made serious inroads by dropping the price of its core system to $199. So how did Sony respond?

By releasing a new version of the PS3 ... that's $100 more expensive. Yes, it comes with a game, and yes, it has more hard-drive space, to which I respond: Who cares? Was the marketplace clamoring for more memory from the PS3? Is that why its market penetration is so low compared to its predecessors and competition? What were the Sony execs thinking?

Times' Sonny Bunch goes on to talk about the PS3's lack of Netflix support, what he calls Sony's poor marketing of Blu-ray, his point seems to be that "Sony seems bound and determined to do everything in its power to hinder the market penetration of the system in particular and Blu-ray in general."

The column begs the question, is the Playstation 3 destined to be the Gamecube of this generation of consoles? Maybe there is some truth to the old adage that you can't really have three successful consoles on the market.

http://kotaku.com/5108372/npd-figures-bring-out-the-ps3-hate

[F9zDark]

Sony has really done this to themselves. Sure, more HDD space is great, but why give users the option of upgrading ON THEIR OWN, yet continue to throw in larger HDDs to keep the price up?

Get the damn price down. Sell a PS3 "core" system for 200 dollars, hell 150 even; even if its only for a MONTH. Considering that the adoption rate of games on the PS3 is quite high, Sony could more than make that money back on game sales.

I guess the old adage is true, but not for any "real" market reasons. I believe its true because Sony has enjoyed being on the top. When you're number 1 YOU CAN pull off saying "You'll do what we say or you won't get your game on our system."

One can only be that arrogant for so long, and Sony is definitely taking the heat this time around.

I honestly don't see what their problem is. Maybe the Japanese don't care if the PS3 is 600 dollars, since Japan would no doubt be loyal to its own companies, but the rest of the world does.

[Eviltaco64]

I guess right now they're figuring out whether they should make a huge loss on the console by dropping the price (and definitely increasing sales) or keep it at a very high price, not lose as much money, and start losing loyalty.

If they dropped it to $250, bundled it with a 20GB hard drive, standard cables, and a Dualshock 3 (no extra games, they'd be making a lot more money. But I guess it's not that easy.

I'm no Playstation fanboy, but they do need to do something about losing exclusives (GTA IV, FFXIII, MH3) and high prices. I'd hate to see Sony die.

[F9zDark]

I guess right now they're figuring out whether they should make a huge loss on the console by dropping the price (and definitely increasing sales) or keep it at a very high price, not lose as much money, and start losing loyalty.

If they dropped it to $250, bundled it with a 20GB hard drive, standard cables, and a Dualshock 3 (no extra games, they'd be making a lot more money. But I guess it's not that easy.

I'm no Playstation fanboy, but they do need to do something about losing exclusives (GTA IV, FFXIII, MH3) and high prices. I'd hate to see Sony die.

In all honesty, if a console company were to die now, there would be no one else to take the company's place, and without the competition the surviving companies can basically do what they want (ie charge 1000 dollars for a console; since the competition is gone, why should they keep the price down? can't lose customers when they have no where else to go).

I am guessing this explains why I am not a CEO; maybe I just don't understand business as I would like to believe.

With the poor economy, people are dropping expensive things from their christmas list. Microsoft was smart by dropping the price. Nintendo doesn't have to since people can and have justified its 250 dollar price tag.

But the PS3? No one can seem to justify it except the Sony loyals, the hardcore gamers who like "the newest thing" and possibly Blu-Ray fanatics.

For instance, what good is LittleBigPlanet if the console isn't priced right to sell to the LBP demographic? I love the game, but the target audience is not some moneybags, hardcore gamer; its the casual, play once in a while youngster, or a family looking for a good family game.

My point is, Sony can't capitalize on the casual gamer market, if the PS3 isn't priced to sell to that market.

[Shadowblind]

A price cut will kill Sony. They are losing massive amounts per purchase as it is, and I don't want the PS3 to die or have only a few games come out. I say stay the course until its profitable to maximise income, then think of cutting the price.

So Sony has to choose; cut the price and have a slightly better chance of passing the 360 by the end of the gen and risk possibly killing the brand with debt, or maximise profitability and make us more games and such.

I say number 2.

[sorceror]

My point is, Sony can't capitalize on the casual gamer market, if the PS3 isn't priced to sell to that market.

If/when they drop the price, it'll help. (Maybe the spring rumor?)

But until then, they have no choice but to position the PS3 as 'all inclusive' - 'cheaper because it does it all'. They need to make the point that you have to buy a bunch of other stuff to equal what it does by itself. They need ads that show it doing hardcore games, casual games (e.g. High Velocity Bowling, with the motion control - steal some Wii thunder), Blu-ray movies (and emphasize that it makes DVDs look better), and so on.

Whether they will do this is an open question, though.

[nomi]

ok, the PS3 does not make Sony any money. it gives back how much it sells for. If sony were to drop the price, they would be losing massive money. Also, $400 for bluray, ps3 and everything isnt that bad, but i guess people don't realize it. Hope the Ps3 does not die!