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Forums - Sales - Why the PS3 will not last long, let alone 10 years.

HappySqurriel said:
Megadude said:
Yep the only console that will be "game over" for when the 720 comes out will be the 360.


I know a "Wicked Burn" might feel satisfying, but it does not really demonstrate any real understanding of the market or provide any reason why the outcome will be as you predict.

Somewhere in the range of 90% to 95% of all third party games released on the PS3 or XBox 360 are multiplatform games. If you take out the exclusive games where there was some-sort of monetary benefit given by the console manufacturer to develop the game exclusive for their system, it is quite accurate to claim that neither platform can justify much exclusive third party support based on its sales alone.

Certainly, both platforms have big selling games, but when your average game costs $10,000,000 to $20,000,000 to develop and it receives sales in the 333,000 to 666,000 on each platform it is difficult to justify putting it on one platform exclusively. Just because the XBox 360 is replaced by Microsoft doesn’t mean that third party publishers will be able to justify exclusive PS3 support, which means that it is unlikely that support would dry up after Microsoft replaces the XBox 360.

The Wii is in a different boat all together where its low development costs and high userbase really does justify a lot of exclusive and pseudo-exclusive (built from the ground up ports) games; and even if sales begin to decline, it will take years for the entire userbase to move onto something new, which means that it will justify exclusive and pseudo-exclusive games for years after a new generation begins.

When you add this all together, if Microsoft begins a new generation by releasing an advanced system the XBox 360 and PS3 will continue to exist and will (likely) continue to have almost identical game libraries. As the generation goes on the PS3 will be facing competition from new hardware which takes away the selling features that are driving the PS3 today (powerful and advanced hardware), it will face very similar competition at a lower price point (the XBox 360), and it will face competition which has always been more popular and can justify greater residual development based on sales alone (Wii).

In other words, as soon as the next generation begins the PS3 will face competiton in all directions which has noticeable advantages over it. It could quite easily become the "Middle Child" who is easily ignored because it isn't powerful enough, inexpensive enough or popular enough to get the attention of consumers.

Sorry but the Wii pwning in sales proves the spec arguement is moot these days.

As for price arguement by the time a 720 comes out a PS3 will be sub $200. MS is the only company that has anything to gain from a 720 as they will be looking to put DVD and RROD behind them.

 

Now I see your counter to this already: "how can the PS3 be $200 by 2012 Sony losses blah blah blah". But you know in your heart that it will be the case. So good luck to the $600 720 in 2012.



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Megadude said:
HappySqurriel said:
Megadude said:
Yep the only console that will be "game over" for when the 720 comes out will be the 360.


I know a "Wicked Burn" might feel satisfying, but it does not really demonstrate any real understanding of the market or provide any reason why the outcome will be as you predict.

Somewhere in the range of 90% to 95% of all third party games released on the PS3 or XBox 360 are multiplatform games. If you take out the exclusive games where there was some-sort of monetary benefit given by the console manufacturer to develop the game exclusive for their system, it is quite accurate to claim that neither platform can justify much exclusive third party support based on its sales alone.

Certainly, both platforms have big selling games, but when your average game costs $10,000,000 to $20,000,000 to develop and it receives sales in the 333,000 to 666,000 on each platform it is difficult to justify putting it on one platform exclusively. Just because the XBox 360 is replaced by Microsoft doesn’t mean that third party publishers will be able to justify exclusive PS3 support, which means that it is unlikely that support would dry up after Microsoft replaces the XBox 360.

The Wii is in a different boat all together where its low development costs and high userbase really does justify a lot of exclusive and pseudo-exclusive (built from the ground up ports) games; and even if sales begin to decline, it will take years for the entire userbase to move onto something new, which means that it will justify exclusive and pseudo-exclusive games for years after a new generation begins.

When you add this all together, if Microsoft begins a new generation by releasing an advanced system the XBox 360 and PS3 will continue to exist and will (likely) continue to have almost identical game libraries. As the generation goes on the PS3 will be facing competition from new hardware which takes away the selling features that are driving the PS3 today (powerful and advanced hardware), it will face very similar competition at a lower price point (the XBox 360), and it will face competition which has always been more popular and can justify greater residual development based on sales alone (Wii).

In other words, as soon as the next generation begins the PS3 will face competiton in all directions which has noticeable advantages over it. It could quite easily become the "Middle Child" who is easily ignored because it isn't powerful enough, inexpensive enough or popular enough to get the attention of consumers.

Sorry but the Wii pwning in sales proves the spec arguement is moot these days.

As for price arguement by the time a 720 comes out a PS3 will be sub $200. MS is the only company that has anything to gain from a 720 as they will be looking to put DVD and RROD behind them.

 

Now I see your counter to this already: "how can the PS3 be $200 by 2012 Sony losses blah blah blah". But you know in your heart that it will be the case. So good luck to the $600 720 in 2012.

You make a statement like HS knowing in his heart the PS3 will be $200 by 2012 and follow that up with a $600 X720?

Does not compute.



The rEVOLution is not being televised

HappySqurriel said:
Megadude said:
Yep the only console that will be "game over" for when the 720 comes out will be the 360.


I know a "Wicked Burn" might feel satisfying, but it does not really demonstrate any real understanding of the market or provide any reason why the outcome will be as you predict.

Somewhere in the range of 90% to 95% of all third party games released on the PS3 or XBox 360 are multiplatform games. If you take out the exclusive games where there was some-sort of monetary benefit given by the console manufacturer to develop the game exclusive for their system, it is quite accurate to claim that neither platform can justify much exclusive third party support based on its sales alone.

Certainly, both platforms have big selling games, but when your average game costs $10,000,000 to $20,000,000 to develop and it receives sales in the 333,000 to 666,000 on each platform it is difficult to justify putting it on one platform exclusively. Just because the XBox 360 is replaced by Microsoft doesn’t mean that third party publishers will be able to justify exclusive PS3 support, which means that it is unlikely that support would dry up after Microsoft replaces the XBox 360.

The Wii is in a different boat all together where its low development costs and high userbase really does justify a lot of exclusive and pseudo-exclusive (built from the ground up ports) games; and even if sales begin to decline, it will take years for the entire userbase to move onto something new, which means that it will justify exclusive and pseudo-exclusive games for years after a new generation begins.

When you add this all together, if Microsoft begins a new generation by releasing an advanced system the XBox 360 and PS3 will continue to exist and will (likely) continue to have almost identical game libraries. As the generation goes on the PS3 will be facing competition from new hardware which takes away the selling features that are driving the PS3 today (powerful and advanced hardware), it will face very similar competition at a lower price point (the XBox 360), and it will face competition which has always been more popular and can justify greater residual development based on sales alone (Wii).

In other words, as soon as the next generation begins the PS3 will face competiton in all directions which has noticeable advantages over it. It could quite easily become the "Middle Child" who is easily ignored because it isn't powerful enough, inexpensive enough or popular enough to get the attention of consumers.

Best post of the thread.  I tried to say something similiar to this a week or so back. The wall the PS3 faces is the annoucement of the NextBox.  When that happens and the subsequent release will end a great deal of the PS3 competitive edges.



Its libraries that sell systems not a single game.

Viper1 said:
Megadude said:
HappySqurriel said:
Megadude said:
Yep the only console that will be "game over" for when the 720 comes out will be the 360.


I know a "Wicked Burn" might feel satisfying, but it does not really demonstrate any real understanding of the market or provide any reason why the outcome will be as you predict.

Somewhere in the range of 90% to 95% of all third party games released on the PS3 or XBox 360 are multiplatform games. If you take out the exclusive games where there was some-sort of monetary benefit given by the console manufacturer to develop the game exclusive for their system, it is quite accurate to claim that neither platform can justify much exclusive third party support based on its sales alone.

Certainly, both platforms have big selling games, but when your average game costs $10,000,000 to $20,000,000 to develop and it receives sales in the 333,000 to 666,000 on each platform it is difficult to justify putting it on one platform exclusively. Just because the XBox 360 is replaced by Microsoft doesn’t mean that third party publishers will be able to justify exclusive PS3 support, which means that it is unlikely that support would dry up after Microsoft replaces the XBox 360.

The Wii is in a different boat all together where its low development costs and high userbase really does justify a lot of exclusive and pseudo-exclusive (built from the ground up ports) games; and even if sales begin to decline, it will take years for the entire userbase to move onto something new, which means that it will justify exclusive and pseudo-exclusive games for years after a new generation begins.

When you add this all together, if Microsoft begins a new generation by releasing an advanced system the XBox 360 and PS3 will continue to exist and will (likely) continue to have almost identical game libraries. As the generation goes on the PS3 will be facing competition from new hardware which takes away the selling features that are driving the PS3 today (powerful and advanced hardware), it will face very similar competition at a lower price point (the XBox 360), and it will face competition which has always been more popular and can justify greater residual development based on sales alone (Wii).

In other words, as soon as the next generation begins the PS3 will face competiton in all directions which has noticeable advantages over it. It could quite easily become the "Middle Child" who is easily ignored because it isn't powerful enough, inexpensive enough or popular enough to get the attention of consumers.

Sorry but the Wii pwning in sales proves the spec arguement is moot these days.

As for price arguement by the time a 720 comes out a PS3 will be sub $200. MS is the only company that has anything to gain from a 720 as they will be looking to put DVD and RROD behind them.

 

Now I see your counter to this already: "how can the PS3 be $200 by 2012 Sony losses blah blah blah". But you know in your heart that it will be the case. So good luck to the $600 720 in 2012.

You make a statement like HS knowing in his heart the PS3 will be $200 by 2012 and follow that up with a $600 X720?

Does not compute.

Then you need to reboot if you think that PS3 will stay at $300 from 2009-2012. And you might need a system restore if you think any system coming out that would make a PS3 look how PS3 makes gamecube look, will not be expensive.



I never said PS3 won't drop to $200 by 2012 but I'm pointing out how you are reaching for two ends of the same spectrum. You expect one console to get some serious price cuts despite losing money while a new console will cost $200 more than its predecessor did at launch.



The rEVOLution is not being televised

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txrattlesnake said:
Viper1 said:
And the quality and amount of software coming to the other consoles is increasing as well. PS3 isn't in a vacuum. Because of this it won't be enough to suddenly put it way on top.

I'll put it bluntly. For PS3 to make great advances, it's going to require X360 and Wii to make great blunders.


     If Gears 3 is going to be on 720 and the majority of the 360's biggest games in the future will be Rare games.  That is a boon to the PS3.

    And I don't think Wii 100 million

                                PS3 70 million

                                360 50 million

   puts ps3 on top of anything this gen except the hd consoles, but still that ensures a fairly long shelf life.

You really are a bad analyst if you think Fable 3 and Gears 3 won't be on the 360.  Gears of War 3 (if it follows the release schedule of the first two games) will be out in 2010, with Fable 3 out the same year or 2011 at the latest.  The earliest we will see the Next Xbox would be 2012.

Also, anyone who thinks the PS3 will reach sub-$200 levels is off their rocker.  It started out at such an expensive level, and it will hit a floor point where it cannot go any lower.  The floor of a cheaper starting out console will be much lower.  The 360 started out at $475 to produce, the PS3 at around $800-900.  That means the floor price of the 360 will likely always be about 50% lower than what the PS3 will ever be able to do.  That means in the very last days of the 360 it will be around $99, but the PS3 will only be able to reach $199.



@smashchu2

"two, the PS3 Slim looks like its real, or people wouldnt have issued cease and desist orders for it, that will further drop production costs, but it will retain the same price point if the PS2 slim is a guide, meaning profit on every unit sold.

To consumers, there is no value to it. They will know it's a PS3 that is slim (that's it's name), but they wont care. Smaller does not equal better in the consumer's mind. Nintendo was able to create a mass market because they know what consumers wanted. The games on the PS3 appeal to the core users. There is a very limited number of them. The slim wont save the system."


You make this statement yet back it up with nothing but your opinion. Fine, my opinion on the matter is that consumers will care. The console will be less expensive and will be smaller, what's not to like?

As for 3rd party suppourt leaving en masse, I don't see that happening and the reason is that the Wii doesn't sell enough 3rd party software. Look at COD:WAW, despite having more than double the PS3 user base the PS3 still sold 3x the amount that the Wii did. Now why on earth would developers abandon a console that sells games for them for a console with a larger install base that sells less?




So who do I bill exactly to get the time back in my life from reading this thread? terrible, not to be rude the but the op said nothing but "Blah Blah, spit coming out of my mouth, blah blah. you are not making it ten years sony, screw you sony, ha".  Why do these threads keep popping up.  I know someone is going to to say just dont read it then .  I kind of want to see more positive image on this site about all three systems.



Carl2291 said:
They said it was to stay for 10 years, when they were losing $200 a console.

I doubt their motive will have changed now the loss has been significantly reduced.

Their motive is still the same, but their losses have increased substantially. They lossed 1.7 billion for 2008's fiscal year.

http://news.vgchartz.com/news.php?id=2851

So the losses haven't been significantly reduced. They are still losing money on every PS3 sold. Sony has already predicted that they will have another $1 billion in losses for $2009 as well. So chances of the PS3 going 10 yrs might be slim. Sony may relaunch the PS3 as a Slim model before that time and at a much cheaper price. $300 or less. Still Blu-Ray is much more expensive then DVD right now, so a Slim PS3 probably won't happen until 2yrs from now.



__________________________________________

'gaming till I'm gone'

Spoon! said:

@smashchu2

"two, the PS3 Slim looks like its real, or people wouldnt have issued cease and desist orders for it, that will further drop production costs, but it will retain the same price point if the PS2 slim is a guide, meaning profit on every unit sold.

To consumers, there is no value to it. They will know it's a PS3 that is slim (that's it's name), but they wont care. Smaller does not equal better in the consumer's mind. Nintendo was able to create a mass market because they know what consumers wanted. The games on the PS3 appeal to the core users. There is a very limited number of them. The slim wont save the system."


You make this statement yet back it up with nothing but your opinion. Fine, my opinion on the matter is that consumers will care. The console will be less expensive and will be smaller, what's not to like?

As for 3rd party suppourt leaving en masse, I don't see that happening and the reason is that the Wii doesn't sell enough 3rd party software. Look at COD:WAW, despite having more than double the PS3 user base the PS3 still sold 3x the amount that the Wii did. Now why on earth would developers abandon a console that sells games for them for a console with a larger install base that sells less?


I love your counter to my argument on consumers. Rather then try to disprove the claim or face it head on, you dodge it by delfecting claiming it as my opinion. But I may have not been discriptive enough, so I will explain futher.

First, Sony has not been consumers driven, but technology driven. The PS23 has a 10 year plan becuase it is "future proof," in that it will take 10 years until it is obsolete. Thus, all of Sony's plans have been focused on technology. This is the company's value. Every company has then and it defines their company and the company's purpose, goals and objectives. Sony is focused on technology and how technology will sell a system. Nintendo is consumer focused, or more on new customers. What Sony is doing is focusing on a favorable market, so the system is somewhat exclusive to the outsiders (being people who do not or understand core gaming).

Going to the PS3 slim: the PS3 slim is a PS3 that is slim. The value of the same which consumers have shown to refuse. It being slim is useless unless there is another reason to sell it. An iPod Nano has a reason to exist becuase handheld devices being smaller means they take up less room in the pocket and are not as bulky or heavy. The DSi did not have two game card slots becuase it would make the system to bulky, a value that is unapealing in handheld devices. Size isn't as importaint in home consoles, so it will not work in how handhelds work. Additionally, the system is nothing but a slim PS3, so there is no new value, thus, no new reason, for consumers to go purchase one. If the system was more convinient, had apealing software or did something else to relate to consumer's wants in products , then it would work.

People also equate the PS3 to having lower prices. This will not matter as price has never had a great outcome on the industry. The 360 is less than the Wii, and the Wii sells more. The Gambecube was less than the PS2 early one, and it did not matter. Wii Fit is selling more than games with lower prices. budget games are not keeping up with full priced games (being at $50 to $60 bucks). N64 posted good sales for their games despite the price of them. Price is never a reason for change. The PS3 needs a new value if it is going to sell to more consumers. Sony has lost a lot of users to "distant users" and gamer drift. In order to make any sort of "comeback," they will have to be like Nintendo and sell the system on new values. Even this is destined to fail as Sony must also have a new motivation to do so rather than "I want more revenue."