compres said:
I think we can better decide if the ps3 is a console or a pc by looking at it's competition: xbox360 and wii.
The ps3 is a console folks, just like rice and weat are cereals, beer and wine are drinks, pepsi and coke are soft drinks.
Now, a mac and a dell are pcs, becouse when someones buys one they won't need the other. Can you guys really believe the ps3 will compete with macs and dells and not with wii and xbox?
Perception is something that can be changed to re-define the business. My memory on this is blurry now but here's a real life example.
The company names are probably all wrong but they serve to illustrate a point only.
e.g., The guys at Pepsi have been wondering how to overtake Coke in soft drink sales. They eventually decided that their market is not just "soft drinks". If they can also successfully sell to "flavored water drinkers" (Fruit punch, orange juice, etc), they have a much bigger market to sell their sweet stuff to. A change in perspective and approach is thus needed. Pepsi started to look at "wallet share" as a key decision variable (e.g., how much budget does a typical consumer spend on beverages in general), and try to take as much from that share as possible. The Pepsi taste and pitch also need to broaden to change people's perception about when (is a suitable time) to consume it. In this particular case, it turned out (extremely) well for the innovator. That's why it was a case study (and I'm a bad student
).
Now like I said, the details are likely wrong but you get the geeze of it: Sony is trying to redefine the business to suit itself. I believe the underlying current is "Platformizing".
[Pause and gulp from beer bottle]
Sony studied Apple and decided that the latter is a much more efficient business. Apple has a much smaller number of SKU (Sony has over 1 million SKUs in APAC alone), Apple leverages on software to differentiate and penetrate, Apple enjoys a stronger brand and charges a premium for its products, Apple has a higher market cap than Sony, ...
In general, I'm more inclined to believe that calling PS3 a "computer" is part of a larger strategy. Sony also does not need to yell "PS3 is a komputer !!!1" in the market to sell it. There are more subtle and much more effective ways to do it (Software, software, and software).
PCs are used for an amazing range of functions these days: From mail ordering wives, garage sales to "forum therapy". Sony would be successful as long as people use PS3 regularly beyond gaming.
Now as for the PS3 price, it's a related but different animal. I tend to disagree that Sony uses the term "computer" just because PS3 is more expensive. Consumers are smarter these days.
I believe Sony wants its buyers to see PS3 as a "value/worthy" platform, not a "cheap" platform. So they are likely to maintain the relatively higher price but throw in more (good) stuff. In this case like the PSP, *quality* is an extremely important variable (Backward compatibility, visuals of Blu-ray player, noise level, size, build quality, bundled software, game quality, ...) to re-assure the buyers. We have yet to see the bundled software and content yet. Not sure whether Sony will fall flat here. Nonetheless, I think Sony is less likely to drop PS3 price suddenly (although they may have contingency plans).
As for the risk... In the soft drink example, drinking is an existing and huge demand, so consolidation brings huge opportunity. In Sony's case, some of the high-profile functions it combines (like Blu-ray and Online gaming !) are still new/unproven demand. Perhaps some of the existing "computer" functions can be channelled over to PS3. We shall see.
Sony is re-inventing itself while we curse and swear in these boards. And that's a beautiful thing