How much is Sony costing this industry? (Developers and Video sotres alike)

[stof]

ArtofAngels said:

Developing games on PS3 is expensive, and having less then first projected hardware sales would only thin out financial expectations, hence resulting in less profit, perhaps even debt.

Securing profits seems to be the go with so many PS3/360 duel releases now,

But I don't think it's just these developers losing money, it's also video stores.

Today I went in to my local Video Ezy (Australia’s largest video store chain) and I asked why do you not stock Wii games for hire and only PS3?

The man at the counter said he has been asked many times for Wii games (and said they are definitely on their way for those interested) and then went on to say that the big gun on top of the food chain for Video Ezy poured a lot of money into all these PS3 games expecting the PS3 to instantly continue on the PS2's success and hardly anyone has come in to hire any of the PS3 games, big mistake? Yes of course.

So what happens from here? Now I'm reading all this stuff for HD DVD support over Blu-ray,

What on Earth could Sony do to save themselves, I don't know, but would it be worth while to make a huge price cut on the PS3, hence resulting in more Blu-ray movie sales (resulting in declining HD DVD support) and better games sales/support, and possible becoming winner of the format war.

Would this be enough to cover the loss from decreasing the PS3's price so much?

I don't know exact figures/costs etc, but I think so.

 The Video Stores should be doing just fine. Ezy sounds like a rare case, as most places devoted resources to all systems, and while it does seam like the PS3's shelf space has diminished in a lot of stores, those are slight adjustments that don't really eat into anybodies bottom line.

As for the blu-ray/hd-dvd argument. While neither format is doing particularily well at the moment, these recent HD-DVD announcements dont' seem like they'll do much more than just keep the format war going for a little while longer. Everything still seems to point to a Blu-ray victory (though it'll never take off to the level DVD has)

All in all. Sony's lack of success is largely based on expectations from the last two consoles. There are still system selling games, console redesigns, price cuts and higher HD adoption rates on the way. The system will still move millions more over the next 5 or 6 years and will eventually turn profit. Just as the N64 was successful for Nintendo, so shal the PS3 be for Sony.

 

And Gelmer... That really doesn't add much to the conversation.