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Squilliam on 29 October 2010
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NYANKS said:
Squilliam said:

Well, REALLY. You have to remember that a lot of countries are growing in affluence at a rate of 4-8% per year. That means huge potential growth as consoles like the PS2 suddenly become affordable because the games can be sold for local prices of $5-20USD. Suddenly in a lot of places $100 is affordable for a lot of people when a $299 PS3 can be seen as a premiere product for the upper middle class. Even still they can account for 10-20M potential PS3 owners minimum. Then in a couple of years that premiere product is $199 and those people who could only afford a PS2 can start to afford a PS3 and the sales take off once again.

In terms of price the: PS2 <<<<<<<<< PS3 are on the downward track.

In terms of money/disposable income these countries are increasing at a huge pace >>>>>>>> and eventually more and more people can afford either a PS2 or PS3 in these places. With such a young population in developing countries you've got a lot of potential gamers out there.

Imagine if Sony can make these regions as Sony-centric as Japan or Europe?  They've had a good start, and I've heard in LAtin america (or at least Brazil) they are really loved already.  Apparently Kratos is very big in Brazil! And China...that's a monster waiting to erupt. Sony has to get in there. rofl  It would more than negate a disadvantage in the U.S.

More so for the next generation. You'll see as the PS2 has done exceptionally well in these markets once the PS3 was released, the PS3 ought to do the same once the PS4 is released. They can get a lot more publishers on board selling their legacy games for $15-20 or less or even compilations of games once we're truly starting the next generation. However since these countries are growing in wealth it is starting to translate into increased sales for the current console the PS3 as seen by these adjustments recently.

The strength of the PS3s copy protection really comes into play here and Sony paid a lot to dedicate one SPE to it given the terrible yields and high cost of the Cell processor as originally seen in the PS3. They could have gone with a 1:6 design with lower cost and higher yields and with a weaker copy protection scheme and not lost significantly if any in the western markets however by having this protection they will do even better than the PS2 in developing markets because they'll be able to extract significantly more value from software sales on top of hardware sales.



Tease.