There was an interesting discussion on this week's ListenUP about the plight that Sony finds themselves in re: their poor hardware sales for the PS3. If you think about it, they're really in trouble. They're clearly in "last place" in this generation of hardware compared to the 360 and the Wii. Their machine in the most expensive in a suddenly crappy economy where people are valuing inexpensive products. People are kind of lukewarm on adopting blu-ray as a replacement for DVD, which is especially a problem for the PS3 because the fact that it's also a blu-ray player is a huge selling point. Their hardware lineup of exclusives isn't exactly blowing everybody away. In fact, having a high definition gaming platform period isn't really "in" right now...the Wii is still selling like crazy, and it's obvious that the video game market has changed.
On the podcast, Garnett and the guys talked about how Sony needs to hit the panic button and do something about it...something drastic. I particularly like the idea of going bundle-crazy. It seems to clear to me that they aren't going to just lower the price, and I don't even think that's the right answer, because then they're still going up against the 360 and the Wii, which are both just as cheap and debatably offer more games that people want. I think if you bundle the system, an HDMI cable (why it doesn't come with it in the first place is absurd, they're like $2 on Amazon), 2 controllers, the blu-ray remote, and a couple of games (say, Uncharted and LittleBigPlanet? Or Resistance 2 and Ratchet and Clank? Or go third party and stick in Mirror's Edge and Burnout Paradise?), or a voucher for $50 on the PSN store (for games like Pixeljunk, Wipeout HD, Ratchet and Clank, etc)...that will really move hardware. Like I said earlier, people are valuing, erm, value, and Sony needs to sell that, big time. At this point, it's all they have going for them.
The trouble I see with Sony down the road, is that unlike last generation where Xbox was losing but then came back and did well this time, I don't think Sony will be able to accomplish the same task. Why? Because of the nature of online gaming. Most of the people I know who play games online play almost all of them on their Xbox 360. Next console generation, what do you think people are going to do when they want to play games with their friends? They're going to carry over their Xbox Live friends, especially if the new console plays nice with the old console, so they're going to buy Microsoft's next machine, not Sony's. I don't care if Sony's internet stuff improves and becomes better than Live, people go where their friends are. And right now, that's Xbox.
I think Sony just didn't have enough killer apps that made people get PS3s quick enough. Where was Final Fantasy, God of War, and Gran Tourismo? All absent, all STILL absent. Sony brushed off the FFXIII non-exclusivity thing, but I seriously think that that's going to cost them hundreds of thousands of units, even if the 360 port is shitty. No joke. I knew or saw dozens of people who said, "well I guess I don't have to buy a PS3 now!", when that happened. I even knew some people who went and bought 360s right after that happened because FFXIII on PS3 was the only thing holding them back. And at this point, as great as all their upcoming exclusives look (helloooooo God of War 3!), it's too late.
Now, having said all this, at the end of the day, I don't really care about what companies win out or whose stuff is selling better. I care about good games, good online services, and a system that works well. It just makes me sad that the hardware developer than got me in to console gaming is fading.
(Also, as a note about the blog itself...is anybody besides Gareth and I going to post stuff?)
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Yeah, I've been seeing a lot of stuff about Sony's share in the video game market. I think they can come out of this but they need to start sacrificing some things.
ReplyDeleteFirst, discontinue the PS2 and bring BC back to the PS3. I know it's a cashcow for them right now (the PS2), but I know that I would pick up a PS3 in a heartbeat if they brought BC back. I literally had cash in hand to pick one up a while back, but then I found out they had discontinued BC. Continue the support of PS2 games if you want, but Sony really needs to push it's latest machine rather than hold on to the past.
Second, price drop. I know they are losing money still, BUT a drop in price to $299 would make a huge difference. It's like the rule of $20: I can always justify throwing a $20 bill at something, but anything over that cost I'm gonna think about at least a little bit. A console under $300 reminds me of the same thing.
Third, rebuild the image. Stop trying to make the PS3 look like the cool, sophisticated older brother. It's not. It won't be. Japan and Europe may give Sony love, but North America isn't falling for it. Clearly, today's market is wanting simplicity, and Sony is making themselves seem like a really high-end product when they should be playing lowball. LittleBigPlanet has helped, but it's not enough.
I don't know if Sony can pull this together or not. I thought a while before I decided on the Xbox 360. And do you know what changed my mind from the PS3? It was too much for what I wanted, it was too expensive, and the only game I really wanted was Final Fantasy XIII. Change the image, lower the price to $300, and bring back BC (for the love of all that is holy!).
As for your last question, Matt: I've been offline for the weekend, but I'll be posting some stuff this week.
I agree to an extent with PS2. On one hand, I think it's hurting sales of the PS3 because a lot of people figure, well, why spend $400 for a PS3 when I can spend $130 for a PS2 and get a back library of amazing games? On the other hand, and ultimately the reason I think they will and should continue working with it, is that the PS2 is now in a funny way the best direct competition to the Wii. The PS2 has seen a revitalization in game development and publishing, actually, because of the Wii. A lot of developers are now making games, mostly licensed games, for the Wii and PS2. The PS2 is easy and cheap to develop for, and developers know there's a huge install base. And think of the profit margin of the PS2 at this point for Sony...it's gotta be huge. Building PS2s probably costs them extremely little, and it's still selling ok at $130 (though I think they should really just drop it to $100 now, practically impulse buy price there).
ReplyDeleteThey do desperately need to bring backwards compat to all of its PS3 units. That's just inexcusable, a slap in the face to consumers. They could do it so easily with software emulation too...it's not like they need the hardware in the box per se, so it's not like it's saving them a ton of money to not have it there, right?
Hey guys, finally saw something I could write about. I would just like to suggest that perhaps the cost difference between the 360 and PS3 is less than it appears in advertisements. Let's not forget that the 360 requires a $80-$100 adapter for wireless internet capability, as well as a external hardrive which is not included in the cheapest model I don't believe. You can also add in the price of batteries or rechargable battery packs and you will find that the difference between the two is less vast than you would think.
ReplyDeleteI also believe that it is important to note that with this failing of the economy also comes reports of people being more willing to spend money on things which provide longterm entertainment value rather than going out to movies and/or dinner. With this in mind, you could also make the arguement that the PS3 has the potential to become a significant entertainment system providing HD movies as well as gaming technology. Despite economic woes, I still believe that people have shown interest in HD formatted content as demonstrated with HD cable TV channels and providers.
My main fear is that the reason Sony has yet to make much of any ground in the gaming console race is due to the continual speculation that the PS3 is the console which is going to die. The constant chatter about the PS3 lacking in numbers creates a "self fulfilling prophecy" of sorts which deters the consumer from purhasing the console...and unfortunately postings such as this perpetuate this problem. I personally would like to someday own both systems, and probably will.
Oh Mike, I totally agree with you...as a value proposition, the PS3 is a better buy. But that's a hard thing to sell when the bottom line is simply higher than the other console. Never forget my motto...people are stupid, and in this case, stupid enough to not think about the total cost after buying charge kits for their controllers, wireless adapters, and so on.
ReplyDeleteThe self fulfilling prophecy point is a good one too.
I think another thing at the end of the day is that while the PS3 has a lot of good exclusive games, there hasn't been that killer app that's taken hold of the public consciousness the way something like a Halo, Gears of War, or Wii Sports/Wii Fit/Nintendo anything has.
Personally, I never factor in accessories when I buy a system because I know I will be buying those down the line. Plus, I like having the option not purchasing things I don't need. For instance, I recently bought an Arcade Xbox 360 knowing I already have a HDD. I saved myself like $100. The same can be said for the Wii as well. With the PS3, one is forced to purchase "accessories" one might not want or need. But all of that I think is besides the point.
ReplyDeleteIt doesn't matter if the PS3 is a better value for the money. The fact remains that it is the most expensive console. Plus, to really take advantage of the PS3 (and to a lesser extent, the Xbox 360) the consumer really needs to purchase an HD television. I think this is a reason the Wii is selling extremely well-- it doesn't "require" additional products to obtain the maximum potential like PS3 or Xbox 360 does.
I don't think the PS3 is doomed by any means. It is selling very well in Europe and Japan. The problem is Sony has alienated its fan base by discontinuing BC and providing more than the average consumer wants. As most people will recall, PS2 was supposed to be the all-encompassing entertainment system. What a joke. What sold that system was games (and the inclusion of DVD playback). Instead of learning its lesson, Sony goes out an does the exact same thing with PS3 by labeling it the all-encompassing machine.
The majority of people who buy a PS3 are not looking for anything more than a gaming system or perhaps a blu-ray player. The difference is the economic environment is not the same, so the inclusion of a new format-- in my opinion-- is a complete waste. At least, for the time being and foreseeable future. Again, how can one take advantage of blu-ray without an HDTV? DVD inclusion was genius because it didn't require anything new. Right now, about 26% of US households own an HDTV. That means Sony (potentially) is losing out on three-quarters of the US population. Something Nintendo avoided.
I realize that's speculation. I, like Mike, would enjoy owning both systems for their various strengths. However, most people can only afford one. And for all the reasons we've listed, people aren't choosing PS3 like Sony expected. I think that's what pisses me off about Sony this generation: it's almost like they assumed everyone who bought a PS2 was going to purchase a PS3. That is very arrogant.
I think the main problem is people don't know much about the PS3. The 360 has permeated the culture almost as much as the Wii to the extent that people associate modern videogames to the Xbox brand. Nobody really thinks about the PS3 anymore. Sony need to get the PS3 back into people's faces. Do this primarily with TV ads. Seriously, when was the last time you saw a PS3 ad? I see them for 360 regularly. Even though they don't have many A-list exclusive titles (their second biggest problem) they just need to show footage of them. All a PS3 commercial needs to be is 15-30 seconds of Killzone 2 gameplay with the disclaimer that it is actually gameplay and then put the price of the cheapest SKU, maybe reduced fifty bucks, and that will sell units I guaran-fucking-tee it. Seriously, Sony, NO ONE KNOWS ABOUT THAT AMAZING LOOKING GAME!!
ReplyDeleteIn summary: Sony are retarded, that shit should sell itself… as long as people know it’s there.
Jared, great point about so few people having HDTVs and now so few people buying them...it's something I don't even think about now that I have one, so it's easy to forget that most people don't. Also, good point about the PS2 and DVD and Sony's assumptions about PS2 owners buying PS3s.
ReplyDeleteGareth, I think the problem isn't Sony's lack of advertising, but the quality of advertising. What was the last Playstation brand ad that you remember that you really liked or really stuck with you? The creepy baby thing sucked, in fact all those white room commercials sucked, all the PSP commercials suck, not to mention the embarassing "all I want for Christmas is a PSP" stunt, their latest one of having their games on buildings in a commercial is forgettable...etc. The last great Playstation ad I remember is from when the PS2 was first released, where they showed clips of the "Playstation 9", and then cut back to the PS2 at the end of the commercial. It made me feel like getting a PS2 was a step towards that future.