| MikeB said: This generation is different compared to former console generations. The PS3 is about to outsell the life-time sales of the runner up of the previous generation (it for example already outsold the Amiga 500 life-time sales multiple times over as well, despite the Amiga 500 lasted longer on the games development market than the original XBox) and the software line-up of what is known to be under development is second to none. If historic evidence is anything to go by Sony's take is more than credible regarding their underlined anticipated lifespan for the console. Sony has proven they are able to support their platforms with great first and second party software. With the PS1 and PS2 they have a topnotch track record, IMO enough to give Sony the benefit of doubt (at least more so than its rivals). Specs wise the PS3 was designed to last longer than the other consoles, that's a very important reason why it has Blu-Ray, the Cell, a default harddrive, etc. Sony's first parties are oozing with talent, just look at Uncharted 2, only Naughty Dog's second effort on the platform so far. Regarding the profitability argument, we already knew before the PS3 launched Sony invested a lot of money and it would take a long time for them to become profitable. Sony was able to take the beating (other companies in the past in similar situations weren't as strong as Sony is) and it is a large part of why the PS3 is such a great deal from the technology standpoint. So of course once they turn profitable on the hardware + software sales they need to keep the platform alive and kicking for as long as possible, to earn back these investments and in the end generate a profit (of course mostly through software sales). |
This generation is different to the previous two because the first place console hasn't gone for a strategy of maximising sales through the use of heavy price cuts which means that the 2nd and 3rd place consoles can gain a higher market share and be more viable. However it isn't really different to the other generations before the PS1 because in those generations more than one console could be profitably produced. The rest can be ascribed to simply the fact that the market has expanded so more consoles will be sold than the generation previous which has happened every generation since consoles began.
Sony proved with the PS1/2 that they can follow the precedent of any top selling console in a generation and sell it well into the next generation. This doesn't prove that they can do the same with say for arguments sake a 3rd place console. Aside from the two GT games per generation they haven't really produced top flight software of the likes Nintendo has in abundance to hold a console on their own. Microsoft doesn't really have that either but the difference is that they aren't in the spotlight here.
Theres no doubt that Sony developers are oozing with talent and that the PS3 is a powerful machine, however there are three things I caution about this. Firstly, the PS3 isn't significantly more powerful than the Xbox 360, not enough to matter longer term. Secondly the point of diminishing returns has been reached with console performance so the only way to really WOW consumers now is with a new generation of consoles and thirdly the HDD which is default for the console will continue to cost them $35 or so per PS3 and the price they pay gets higher as the generation progresses as the rest of the machine gets cheaper. This is why I doubt that they will be able to sell the machine for less than $150 when the time comes.
Sony knew the PS3 was likely to be unprofitable initially, however slow early sales and a quick platform saving price cut were required to stem the bleeding. They lost more money than they expected to and revenue from software sales ramped up slower than they expected as well. Their best bet at this point with limited resources is to continue to sell the PS3 as long as possible and a longer generation is likely in their best interests now that they don't have the whole of the industry following their every move anymore so a reboot is out of the question which leaves recooping their investment over the next 6 years of so.
Tease.
