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Certainly I can see that install base causes console titles to shift from one to the other... Indirectly, that certainly puts a dent in the loss leader approach as you mention. That isn't direct competition though -- but the result of market dynamics over time. I'm more speaking to direct competition, at the retailer. I doubt very seriously there are too many people walking into gamestop/eb games and trying to decide between either a Wii or a 360/PS3. MAYBE a few between the Wii and the 360 because their prices points are lower... It's like saying a Honda Civic is competing with a Mercedes Sedan. Yes, they are competing with eath other as a car manufacturer but they aren't competing for the same set of consumer dollars. The person buying the Civic might like to have the mercedes but the cost puts it in an entirely different market -- a niche if you will. Currently the PS3, primarily because of price, is a niche and not a mass market device and hence I will stand my ground that they aren't competing for the same consumer dollars. (directly at the retail level). But your arguments are solid none-the-less and are probably right, too. Meh... nuances and hair splitting.  |
I think it is more like comparing a Mercedes to a ford mustang. No one is going to try to say that $20k Mustang is a better car than the $50k Mercedes, but someone who can afford a Mercedes might end up buying a mustang just cause its so much more fun to drive. Personally I can afford a PS3, I have some interest in some of the games but the wii is a much better deal and has a cool unique controller. So I bought a wii and will wait till I can get a PS3 for like $200 and it actually has games.
Off topic: By the way I do have an '06 mustang and it is a lot of fun to drive plus the girls love it. They all want me to drive them around in it.
