revolutions said:
It's fun. it's like keeping track on sport stats and records. :) Also if you bought a system u really like (like my Wii), u hope it does well so more games can be made for it for years to come. |
Indeed, it's kinda like betting on a horse. You've looked at the odds, you've laid down your bet (bought a console or two or three), and now the gates are open and they are off. You shout and cheer your horse(s) on and jeer at those who aren't cheering for your horse.
The thing about the game biz that's different from cars is that it's not compatible with each other. With cars, the basic functions are the same and they take the same gas and will take you from point A to point B. To consoles, games are the gas that make them run. In the game industry tho, the types of "gas" are not compatible. Nintendo branded "gas" can't be used on sony branded "cars". Because the basic function of a car are the same, manufacturer differentiate themselves with design and amenities. But they are also the most guilty of the "first party" syndrome where they will not let third parties design afterproducts and parts so you have to go to the manufacturer and pay premium for their parts. At least consoles encourage 3rd party support.
I liked johnlucas's assessment the best. VG is about MASS entertainment. Correlary to that, products need to be priced accordingly.
The elite have a lot of disposable income, but they are also very finicky about what they buy because everyone tries to get them to spend money, so Sony is competing with everyone else there. Consoles need to be priced in what the electronics industry calls the sweet spot. Tho that number rises with income and inflation, that number is probably between 200-400 now (notice how all the mainstream appliances have large number of products in that range: TV's, early dvd players, washers, refrigerators, etc). The closer you are to the upper end, more and more people would consider carefully before making the purchase (weighing their desire for the product against the desire to have the money available for other stuff).
Nintendo is the lower half of the electronic appliance sweet spot, so it may often be an impulse buy for some people (tho the often referred to impulse spot is ~ $99) and in general, not a hard decision to make. X360 is on the upper end, but price / perf is rather reasonable. So, if you already have the equipment to take advantage of the 360's power, it's not a hard decision
$500 is often a psychological barrier (there are barriers at $100, $500, $1000, etc) and at each barrier there is a mentality shift. Sony made a mistake in crossing that barrier while still making the same appeal as they did when they didn't cross it. <$500 is the feature zone, where most products are evaluated on feature/functionality basis. $500+ is the desire zone. Here, marketing has to make it desireable based on intangibles. I think that the Bravia marketing did this quite well, resulting in a strong brand name and sales. But with PS3, Sony focused on tangibles and it failed to energise the market. Europe ads were interesting, but did not create a strong impression that links with PS3's function.
They have enough install base that there are lots who have bought PS3 because they are the early adopter type (I must buy because it's newer and shinier version of something I already have and I must have it first). But, beyond the initial, it's questionable if they can appeal to the general populace. Indications are looking a bit weak at the moment
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