nightsurge said: To wrap this up, Sony does not control their console's lifetime. Consumers and retailers do. If the PS3 is still the least selling console by the start of the next generation, it will be discontinued from retail space first to make room for the new consoles. There is nothing Sony can do to stop this except advertise and figure out a way to sell more PS3's. Even if the PS3 becomes profitable and cuts the price, if it is last in sales when 2012 rolls around it will be bye-bye PS3 and so long 10 year plan. This is almost guaranteed to happen in the US given the console situation there, but in Europe and Japan the PS3 may still live on for a few more years. |
This didn't make sense the first time I heard it and it keeps not making sense. Retailers make most of their money with software and accessories, not with consoles themselves. And if I am a retailer and I want to maximize my profit, I want to maximize the sales of software and accessories.
Today in America, the worst market for PS3, the PS3 sells about 65% of the software of the 360, and 215% of the software of the PS2. The ratio between 360 and PS3 keeps going down, so that 65% is almost certainly going to grow. When next gen consoles come, the greatest part of market share each console will carve its way in initially, will be into their predecessors'. That is, most early buyers of the next xbox will be 360 owners, same with the PS line.
So, let's consider two options, or stages:
a) NextBox comes out, PS4 still not out: Wii,PS2, PS3, 360 and NextBox. Most sales of NextBox and its software carve into the 360 marketshare. To maximize profit it doesn't make sense to remove the PS3 even if it sells only 65% (most likely more) of the 360. By doing so you're entirely losing a big orthogonal software market to make space for two overlapping ones. To maximize profit, it's better to make space for the NextBox by reducing the 360 and cutting the PS2.
b) Both NextBox and PS4 are out: Wii, PS2(?), PS3, PS4, 360 and NextBox. The PS2 might be discontinued or it sells a small fraction of PS3's software, thus it can be removed. The sales of PS4 games and accessories mostly cut into the PS3 ones. To maximize sales: PS3 makes space for PS4 as PS2 did for PS3, 360 makes space for NextBox.
This is what a rational retailer would do, simply based on the software/accessories markets.
Plus there's the simple fact that most electronic goods retailers would receive pressure by Sony anyway to leave a fair space for their products, leveraging their weight as big suppliers of TVs, computers, and other electronic.
Every reasoning of "retailers will cut the PS3 if it is in third place" sounds only wishful thinking of someone too fixated with the "console wars", not rational. You're welcome to answer with a detailed rebuttal.