Why Sony will not be Destroyed Submitted Tuesday, November 21, 2006 - 3:19:29 AM by Klaitu
You know what really grinds my gears?
Calamity Whiners. That's what.
With the release and then immediate unavailability of the Playstation 3, people are freaking out about Sony. A lot of people are, but one in particular I will single out: a guy I work with. I shall henceforth refer to this guy as "The Guy" for lack of a better name.
The Guy predicts that the 360 will become the worldwide dominant console. He predicts the Wii will be second, and the PS3 will be a distant third.
His reasoning for this prediction? The PS3 is expensive, and there aren't very many of them. Also, the dual pricing spread confuses consumers.
This argument is, quite simply, ridiculous, and I shall now destroy it. Consider the following:
The 360 came out last year with a reported 400,000 units in North America. They were instantly bought up by avid consumers. The PS3 came out with the same figure-- 400,000 units, and all of them were snatched up, just like the 360.
In Japan, however, the 360 did not sell out instantly.. it didn't even sell out of the stock at it's launch party. The PS3, however, did.
Both of these things happened, despite the fact that both versions of the PS3 are more expensive than the 360.
A year from now, many more people will have their very own PS3, and the limited availability of launch will no longer matter.
You may recall the launch of the PS2, where exactly the same thing happened. Not enough stock, everyone bought them, and they went on ebay for thousands. PS2 went on to become the world's most popular console, so obviously launch production does not make or break a console.
Neither does a Dual-version launch. The NES was released in two flavors.. one with Robot, and one sans robot. NES went on to dominate the 8 bit console war.
Another argument The Guy brought up was that PS3 lost some exclusive titles.. and he's right, most notably Grand Theft Auto. Exclusives are only part of the equation, though.. the quality of a port also affects its popularity.
But all this hemming and hawing over games, it misses the true intention of Sony's purpose. A purpose that most gamers seem to gloss over: Blu-Ray.
Sony's purpose in making the PS3 with Blu-Ray is to make the format dominant. Blu-Ray discs are rare, and Blu-Ray players run $1000 and up because production of them has not been ramped up. Sony is banking on the PS3 to be at least popular enough to streamline production of blu-ray components, making not only the PS3 cheaper, but also other blu-ray components. The PS3 is, after all, also a Blu-ray disc player.. the cheapest one on the market, nearly 400 bucks cheaper than a standalone player.
Sony is so sure they can make it the dominant format that they lose an estimated $200 per playstation on parts alone. You just don't gamble that kind of money unless you're sure you're going to win. After all, that means Sony just ate $80,000,000 on launch day.
Microsoft, on the other hand, built a Next-gen console with an old-gen storage medium. The 360 has to use DVD's for games, that's 1/5th the capacity of a blu-ray disc. a DVD can't even hold a useful length of High-Definition video.. and it's true the 360 has a HD-DVD addon, but it only plays movies, and it only plays movies in HD if you happen to have a VGA connection to your TV. 360 does not support HDMI.
So, it's not just the games that Sony is banking on, they're after the entire movie market. If blu-ray is made the dominant format, Sony stands to earn a tidy sum, much like Microsoft does with it's dominant Operating System. Even if the PS3 were to not outsell the 360, so long as Sony sells enough of them, they still win.
As for the Wii, you'll notice I haven't mentioned it much. That's because the Wii is really a non-issue. The Wii appeals to a completely different market than the 360 or the PS3. It will sell well because people will buy a Wii AND a 360, or a Wii AND a Ps3. The Wii is not a console you want to standalone.
In the end, I'll probably end up buying a 360 and a PS3. There's lots of great games coming out for both of them. And anyways, if you have both, you can't miss a thing, unless you like Zelda.. or Mario.
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