The beaten down King still has a few knock out punches

[DirtyP2002]

theword said:

With lest than two weeks before the new year, it looks like Sony will achieve their own 08 PS3 sales projection.  So what is the problem?  The problem is everyone else is out performing while Sony is just performing!   It is still hard to imagine that the formidable console King of last generation may have to settle for last place this generation.  Not so fast!  Sony may be a beaten down King, but they still have a few lethal punches waiting to be unleashed. 

Great Brand Equity. 
Sony as a brand has accumulated a huge amount of equity in it.  This is like a huge rocket just waiting for the right fire button to be pushed.   

2nd to none 1st Party Fire Power 
It is Sony that owns more AAA 1st party studios then either Nintendo or MS.  Granted, so far many of these 1st party did not produce the hits that helped move systems, but they all have the potential to do so.  Imagine if, by some miracle, 80%  of Sony 1st party make AAA hits next year.  Sony would have so many exclusive hits that Microsoft would not know what to do to counter the onslaught.

$249 PS3
$299 won't be the mass system mover in this market.   $249 is where the PS3 will need to be.  Because of the BlueRay factor coupled with brand equity, public perceived value of the PS3 at $249 will be greater than whatever price point the 360 or Wii be at that point.

 

 

 

• Brand

You are right, the Playstation brand is powerful, but it hasn't helped that much so far, while the name "Wii" is everywhere and even "Xbox" is getting bigger and bigger

• 1st /2nd Party

Nintendo has the best 1st Party Lineup. That is a fact. Sony would kill for a mario or a Zelda. Hell even a Kirby on the DS is huge. And so far we haven't seen the great 1st party-games. Uncharted is cool, Resistance is okay but so far, there is nothing HUGE saleswise. On the other hand there is Microsoft with Halo3, the best selling HD game so far and a likely 10 million seller, Gears of War, Gears of War2, Forza and Fable2. Granted GT5 might be huge, GoWIII and Killzone2 will be good, but they won't match a Gears or a Halo3 saleswise (except GT5).

• $249 PS3

This is where things get out of control. Sony loses $50 with every PS3 sold. Such a pricecut would mean a $200 loss per console sold. Okay, lets say they reduce the developing costs by $50, they still would lose $150 per console. Calculating with a $150 loss / console, they would have lost $35,936,400 in NA last week. So calculating with a $100 loss in Europe and Japan, because of the exchange rate, they would end up in a total loss of $64,415,600 Last WEEK. Okay, it was the biggest week of the year, but this pricecut is too huge to handle for sony.