An interesting piece illustrating why the PS3 is floundering against Microsoft's Xbox 360. PS3 sales are on the decline while the competition is rising at a dramatic rate.
So, what are some of the main issues with the PS3?
It's overpriced
Xbox doopped prices to gain market share and it worked. Sony is intent on becoming profitable (the right motive) but is doing so at the sake of building momentum. A console that starts at $400 (with only 1 controller and usually zero games) puts you over $500 before it's much fun.
According to the WSJ article, "U.S. sales of the PS3 fell 19% last month from a year earlier, while sales doubled for the Xbox 360, according to research firm NPD. Analysts say they expect PS3 sales for this month to be flat or lower than last year, while sales for its rivals are likely to rise."
Lack of exclusive games
It's gotten much harder to find compelling games that are only available on PS3, a strategy that has been very successful in the past.
Sony also is suffering from a lack of attractive titles that are exclusive to the PS3. Microsoft has hit the jackpot with two action-adventure game franchises, Halo and Gears of War, which are available only on the Xbox 360.
Minimal modern touches (ie. Social features)
Xbox Live has a community and marketplace. Playstation Home is compelling but empty which should even out over time. But, the competition is so far ahead, Sony needed to do something much bigger and better.
It's being significantly out-marketed by the competition
Generally, games drive the marketing for consoles, but Xbox have built very strong brand awareness around the product itself. Microsoft makes the Xbox the center of your interactive gaming lifestyle. From the consumer perspective, the PS3 is a good gaming console, but not a brand that users feel a huge loyalty to or affinity for.
The user experience is somewhat burdensome
The games themselves look and feel good, but the experience of launching a game and getting up and running takes way too long (I feel this way about most consoles), to the point where many users I spoke with get so annoyed that they curse the machine. For the record, the cause may rest with the game developers, but the perception is that the console is the barrier.
Don't forget the internet
A bigger threat looms for all console makers, and that's the fact that people spend way more time online then ever before and that browser-based casul games are not feeding console sales, but instead pushing consumers to stay on their PCs.
So what now Sony? So much depends for the company on the success of the PS3 for Sony. Will a price cut be enough now? Are there new unique blockbuster titles from the caliber of LittleBigPlanet?
2009 will be a tough year where Sony needs to proof that the PS3 is really the best game console.
