| naznatips said: Well, I agree that not EVERYTHING will change. The 1st place this generation has been decided already, almost without a doubt. The chances of the Wii being overturned with the kind of initial success they have experienced are microscopic, especially with their dominance of all markets including a basic monopoly of the whole Japanese market. But, the PS3 is not out of chances to take 2nd place by any means. The deciding factor will be a price drop war between the PS3 and the 360. |
Pricing is why I don't think the PS3 will ever catch the 360. I've said it before and I will say it again. When it comes to pricing the PS3 is the X-box of this generation. Sony is completely at the mercy of MS when it comes to pricing.
It is the same situation that occurred between the PS2 and X-box. The X-box was priced well under its manufacturing cost for its entire life cycle. Not only did the PS2 cost Sony less to manufacture than the X-box did for MS, but Sony was also able to reduce the cost of the PS2 more quickly. MS could never approach breaking even on each X-box sale because of the periodic price reductions of the PS2. While Sony was breaking even or taking a small loss, MS was taking a big loss or a really big loss.
For this generation the situation is reversed. MS is already making a per unit profit of the 360, they have been for about 9 months. Sony on the other hand, even with the removal of the EE and reduction of Blu-Ray diode costs, is still taking a significant hit on each PS3 sold. MS could drop the price now and still break even. Sony doesn't have that luxury. Once the switch to 65nm occurs, MS will be making even more profit per unit. MS will have Sony in a difficult predicament, the same one that Sony had them in during the prior generation. They can either match MS' price drops on the 360 and continue to take massive losses or they can stand firm on price and watch as the Wii and 360 pull farther and farther ahead of them. The worse part for Sony is that while MS took massive losses with the X-box to stay on equal footing when it came to pricing, Sony will be taking massive losses with a price cut while still being the more expensive console.
I just don't see how Sony can ever match MS when it comes to pricing. The PS3's sales will always be hampered by its more expensive price. By the time Sony can get the PS3 down to a mass market pricing level, the Uus and X-box 720 will be about to launch. Then the only potential advantage the PS3 has will be gone, it won't be the "most powerful" console any longer. You can bet your life that the Nintendo "Uus" will be $250 and it will look a great deal next to the $200 PS3 and $400 X-box 720.
