PS3 Headed to Failure?
An analyst predicts that the PS3 is going to be the Big Loser in the so-called next-gen console war. Why? Cause it’s too damn expensive.
Would the majority of the market pay $600 for a gaming console? Actually, forget ‘would they’, could they? Hell, I’d love a PS3, but $600 is so beyond my budget as to be laughable. I shall snuggle with the Wii in the meantime.
The analyst says the following:
“Sony has done very little to justify why the system is worth a premium price for consumers that don’t care about raw hardware performance and are not hard-core audio/visual consumers,” DFC said. “Unfortunately we believe that represents over 90 per cent of the consumers in the marketplace.”
“With the PlayStation 3, the company is going after the high-end power user. It is almost as if Coca-Cola not only decided to go with a new formula, but also decided to exit the low-brow soft-drink business to go into high-end wines,” DFC explains. “Of course, there is a market for high-end products but it is 1) a very different consumer type and 2) not nearly as big as the blue collar mass market. Wal-Mart sells more toys than FAO Schwartz and McDonald’s sells more beef than Ruth’s Chris Steak House.”
Mmm, Coca Cola wine. Now that sounds fancy.
I have no doubt that the PS3 is going to be a kick-ass piece of gaming machinery, but I just don’t see it beating Microsoft and Nintendo with that price tag. The casual gamer isn’t going to shed out that kind of cash, and the hardcore gamer might not be able to.
It’s going to sell, of course. People are going to buy it. But in the end, I don’t see it reaching number 1.
We shall see.
(source)
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