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Things haven’t been going over too well in the Sony camp since the launch of the PS3. While it sold faster than the PS2 in comparison to its launch, the PS3 has been a financial pain in Sony’s side for the past two years. The added state of the rest of the economy have finally culminated in Sony seeing 10% of their market share value drop rapidly. So what does this mean for the PS3?
In a story by rte (among many others) Sony’s operating profits are expected to drop by an inexcusable 65%. Competition has been stiff. And even though many reporters blame the Wii, it’s actually Microsoft’s Xbox 360 that has been eating into Sony’s gaming sales. It wasn’t the Wii that the PS3 lost Devil May Cry’s exclusivity to, nor was it the Wii that gave gamers an alternative for games like BioShock, Eternal Sonata, Unreal Tournament 3 and Fatal Inertia. Said games helped give Microsoft an edge in giving gamers a cheaper console option for the same gaming titles.
It also wasn’t the Nintendo Wii that stiffened sales for the PS3 so much as it was the Xbox 360 preventing the PS3 from selling the way it could have. This is not to say that Sony would have gained any ground against Nintendo’s ferocious little Wii had the 360 not been around. But it certainly would have afforded Sony far less competition in the hardcore gaming market, which they are fighting for in direct competition with Microsoft.
But at this rate – failing economy, cheaper competitor consoles, lesser third-party exclusivity – Sony could be heading the same route of Sega and simply hanging up the console fighting gloves altogether. Between less than stellar sales figures, extremely costly research and development, and the cost of production, the PS3's only saving grace for Sony, at the moment, is the PS2's strong selling power for the entire PlayStation brand. Besides, ending a console run with such a prestigious piece of equipment as the PS3 certainly isn’t a bad way to go out.
It’s an extreme long-shot to put one’s trust in cutting the price on the PS3 to turn things around, but it could help bring in some dominance in the market value of the Sony brand, once again. But even with a price-cut on the pricey console, it may not be enough to start turning profits in the entertainment [gaming] division for Sony unless manufacturing costs drop again. Software would also have to be used to propel gamers to further purchase the console, otherwise Sony will stay in a deadlock with Microsoft, competing for the undecided gamers.
Hands down, though, it’s not a pretty picture for Sony, and the economy is letting everyone know that this is going to be a very long haul. Things could always turn around for the company, and when they do Blend Games will be sure to let you know. Until then, be sure to stay tuned in with us, or drop by the Blend Games Forum for further discussions on the hottest games.
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