Joshua Luna,
Joshua Luna said:
Consumers are fickle. Nintendo saw their marketshare tank quickly. As did Sega. As did Atari.
I think the hardcore PS3 supporters already spoke up. They were the ones who bought a $600 console with a limited library. From here on out software and accessibility will play a significant role.
Nintendo, Sega, Atari - none of them had the marketshare (in console territory) that the PlayStation platform achieved. That's a big difference. Especially not to mention that it was Sony's platform that expanded the market beyond commonly refered hardcore gamers and made it mainstream. There are clear reasons as to why Nintendo lost it's dominant position to Sony back in 1994. What shift has their occured this generation? Better graphics? You tell me.
As for that you think that most hardcore PS3 supporters have already spoken up - guess that means I'm not one of them then. What am I? Just a loyal PlayStation supporter? A casual consumer?
True, I guess I can't consider myself being a hardcore since I didn't want to spend $600 on a console because I was still happy with the games for the PS2... But since I'm not hardcore... guess that means that I must be interested in Microsofts or Wii then...
Joshua Luna said:
Yep, far cheaper and a lot more game variety. Why by an average game at $60 when you have an entire library of AAA games on the PS2 for $20? A perfect cheap gift for a birthday or whatnot.
I didn't point out the PS2's success *after* the launch of Wii and Xbox360 to discuss why it's still selling - in fact, I think that point is nearly entirely irrelevant. I brought up recent PS2 sales as a reference that those people are playing a
PlayStation console and
PlayStation games. Chances are, somewhere down the line in the far future, they'll be looking to upgrade as well when current game consoles come down in price (probably at a similar price point that they have spent on the PS2). If they are happy with the PlayStation experience, chances are, they'll be interested in the PS3
if it seems attractive enough. That means that Sony will have to come down in price on time and/or drastically make the game library they're offering more attractive. This is obviously purely speculative as to what Sony's next steps are, but I think it's quite immature to write of Sony at this point, given their consoles are still being bought in high quantities.
Brand recognition is not to be underestimated and starts in its simplest form that if a customer is happy with a product, it's easier to keep him as a customer (...if they do things right). Imagine casual Joe who doesn't have much idea about consoles and just bought himself a cheap PS2 (simply because it's cheap and has lots of cheap games). He plays many games he likes, among a few that are well established and well known PlayStation franchises. Some point in the future, he wants a new console and sees that there is a PS3 with an identical controller that he has grown accustomed to and games that he remembers from the PS2. If the PS3 is within his price range,
why would he buy a Wii or an xbox360? I can see reasons as to why he would get a Wii, but an Xbox360? Perhaps a lower price? So the question then becomes, is the price offset high enough to justify going for a different experience? Or will he go for what he knows best (a PlayStation) and games that he has liked? I guess that's the question no one can answer, but should point out that it's still quite early to draw definite conclusions at this point.
Joshua Luna said:
The PS3 will play 2nd fiddle to MS in NA and has lost Japan to Nintendo. This is really bad for Sony.
The Japanese developers appear to be quite in tune with DS and Wii development and philosophy. They are affordable (which allows high volume as well as risk taking) and reward ingenuity. Nintendo will own the lion's share of Japanese development efforts.
NA is a hugely lucrative market where big titles sell big numbers. Sony will never catch MS's install base in NA and MS's software sales are amazing. NA publishers will absolutely focus on MS in NA.
The PS2 was the lead SKU on about everything, had almost every important title and exclusive, had the widest and deepest software selection, and became very cheap over time. It dominated Japan, NA, and Europe.
The PS3 has none of this going for it.
It is a PlayStation in name only. Nothing more.
I think I already covered the PlayStation bit, so I'll leave that one out. You obviously disagree that brand recognition holds weight in the eye of especially casual consumers. We'll see.
As for playing 2nd fiddle to MS - guess I missed that part. How so? Are you basing this of EA game sales?
The way I see it, the PlayStation's biggest hitters have been predominantly from Japanese developers (apart from multi platform sport titles and GTA) - I bet, there's still a market waiting for many of those games to come out. And they will come out, eventuelly. I guess Microsoft now has quite a market in NA that is especially fond of the Halo games. That's good. Doesn't mean it kills the PlayStation 3 completely.
As for Japan and Wii. I've said it in other threads and will do again in this one: I just don't see Wii as a direct competitor. It opened a new market and it sure has a large draw from developers - that doesn't make the pre-existing market non-existant though. There are still many gamers that are waiting for the new and big games from Japan (i.e. Final Fantasy). The price at this point is still high on the PS3 and there hasn't been much reason to get one yet as the games aren't out yet, but given that they still are in development and coming, I think sales are bound to pick up eventually. It had a slow start - yes, Wii has been selling extraordinary, but I don't see why a Wii can't co-exist next to a PS3. They both offer different gaming experiences and none replaces the other. It's why we've had a handheld market and a console market co-existing - you have the folks that are interested in that kind of gameplay and you have the others.
I find the 360/PS3 debate more interesting, because clearly, they are more about taping into each others market.
Next point:
Joshua Luna said:
As asleto pointing out, every move Sony makes will be countered and check mated. A price drop? Sony hits $399, MS hits $299. Sony hits $299, MS hits $199. Sony gets a great new title, MS gets two.
It is the same boat MS was stuck in last time. The big differences, other than fans, is MS was at price parity and easier to develop for and had a solid, if not meager, NA install base (these points made porting worth the effort).
Aselto, no offence, didn't do much more than question every damn point without successfully pointing out anything. I could do the same and we'd have this discussion degrade in to the usual nonsense quick.
As for "Microsoft countering every single point and check mate". Yay! Sounds like I'm the next X360 customer then (given I already don't fall into the hardcore market apparently)... You truly believe it's that simple? You really think that consumer psychologie is down to simple pricing strategies?
Think again. And you were wrong about Microsoft being in that position too - if you can't remember, it was Microsoft hysterically droping the price, while the PS2 stayed fairly steady, selling more while being priced higher!
Also, Microsoft could be selling their console at half the price at this point and I for one would still not give a damn about their console. Why? Because Microsoft isn't offering what I see as worth purchasing. Yes, they have good games coming their way and if I had a X360, I'm sure I'd have a lot of fun with a few games I wouldn't mind picking up. Given my space is limited and I only buy one console a generation (at least one that's aiming for the same experience), I just happen to enjoy the PlayStation games better. I'm more interested in the Eastern games (Final Fantasy) while I care little for the Western games and the predominantly PC dev influenced games.
And since you're so fond on the price argument, guess there's left to point out that at least here in Europe, the difference isn't that striking once you start looking at the big picture: Once you add up online gaming, large HD for online content, perhaps the HD-DVD add on and the Xbox is already quite a bit more expensive than the package Sony is offering "out of the box". This may not be that clear at first glance for casual consumers, but I'm willing to bet on close inspection, this doesn't go unnoticed. Then again, the casual consumer might not care for online gaming and others yet...
Joshua Luna said:
Ouch! Haha! Then again I think Sony would be happy retaining 50% of their PS2 customers, so I guess those barbs go both ways.
Pinch of salt and all, but according to MS there are millions of Halo gamers still playing on Xbox1 consoles. I do think the, "Only Xbox gamers are buying 360s" card will die sooner than later. Some misconceptions die hard.
Well, at this point, neither of us really know. But we'll find out sooner or later. I do think it's easier to assume that Microsoft is selling predominantly to their pre-existing market currently. Comparing X360 with Xbox1 sales (relative to their launch date) and they are very striking similar. I do think they are widening their market, but not all that much. I don't think they are tapping too much into the PlayStation pond either - at least not yet. If Sony's high price remain and diversity doesn't come quick enough, they will though.
Anyway, my points weren't stated as facts - I was merely giving reasons as to why the picture can change and isn't doomed a failure at this point. You may think otherwise - you may also think Microsoft is dictating the battle - I however still see them as the underdog and as long as PS2 is still selling, I wouldn't be too worried about PS3's outcome. There are 100+ million PS2 consumers after all - a large segment of that market were Ps2 exclusive and probably haven't bought a next gen console yet. The big question is, will Sony have an attractive enough console at that point in time when they'll be looking at upgrading? We'll see.