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S.T.A.G.E. said:

I agree with some points, however Sony is in trouble because of this:

1. Launched at $599 against competitors who offered systems from $250 (Wii) to $299 &$399 (360 core and premium) (The latter being an alternative HD console).

2. Launched at a loss

3. Didn't have good launch titles.

4. Couldn't drop price at the right time because of the value of materials.

5. Focused more on Blu Ray initially than games.

6. Lost 3rd party support by not monitarily holding onto them and expecting them to stay loyal.

7. Sold out their true fanbase to try and win over the American fanbase.

8. Made PSN free while expecting losses before launch. (But of course they couldn't make people pay for online at such a high price)

Bolded for truth :)

You can't release an overly expensive system that uses almost entirely proprietary hardware, and compete in the market. They wound up making the Playstation 3 so cutting edge, that they cut them selves fatally - Go look at the Saturn for the best market example. Revolutionary technology doesn't always make a console better - it only makes it better when its affordable technology.

The best examples of that would be:

NES's usage of licensing to force quality titles on their system (later adopted as a golden standard by all console makers)

Playstation 1's introduction of affordable CD gaming

Playstation 2's introduction of affordable DVD gaming

Nintendo Wii's approach to cheap, revolutionary motion controls

..

Notice how none of the said systems and their innovations cost over $300? Any company can make a spec-insane beast, but it takes a certain kind of company that can make it both revolutionary and cheap - Kind of like the iPod, or budget computing.



Back from the dead, I'm afraid.