Business analysis: PlayStation 3 in a race against time

Posted Apr 4, 2007 at 5:19PM by QJ Staff Listed in: PS3 Tags: PS2, Sony
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Sony's PlayStation 3 is in a race against time - Image 1In an exclusive coverage by Reuters, Kiyoshi Takenaka drew up an analysis of the PlayStation 3's progress since its launch, and came to the conclusion that everything is drawing up perfectly for Sony's next-gen console except for one thing: time.

While Phil Harrison is confident about the decade-long lifespan of the PlayStation 3, Takenaka came to the conclusion that the successor to the PlayStation 2 could learn a few lessons from its ancestor's success.

The PS2 also suffered a lacking start back in 2000, but then rose to over 100 million units sold eventually, meeting expectations of the first generation PlayStation. Analytically, all Sony needs to do is to install a stable hardware base around the world, even if they aren't the first.

Being first only gives the competition an edge for a short time span, until a late bloomer draws in the rest of the world into its embrace. The revenue that Sony will earn, after all, is from the royalties on the software that will be sold for the console. So the final effect turns into a "chicken produces egg produces chicken produces egg" cycle that will eventually bring the console to eventual success.

As the console sales rise, more developers bring in more games. The more games that come out, the more people buy consoles for the games. The more consoles that are sold again, the more games come out. It's pretty general, but it is nothing less than feasible. With low-price strategies aside, the only enemy of Sony is time.

With the purchases of full HD TV sets rising since late 2006, America has been gearing up for the next-gen entertainment age. But the question of when the sales spike up for that special game still remains elusive. Whether it will come this year, next year or in the ten-year period as claimed by Sony's Harrison, most other market analysts pointed at the years before 2010. It's just a matter of time.

Via Reuters

 
 
 

Comments [refresh]

by highps3 - 2007-04-04 13:10
» adff

Da na na na na BATMAN BATMAN ...





I get the batman theme in my head whenever i read the headline for some reason...



Ps3 will be around regardless.

by CHUCKINGROCKSATSPACESHIPS - 2007-04-04 14:56
» Dreamcast 2?

The 360 is a bit more successful than the Dreamcast but it won't outdo the PS3 in time. It is inevitable.

by Dj Natas - 2007-04-04 16:46
» Same old story!!!!

Dreamcast sold 10 million units when it was released, and it beat SONY out of the staring gate, kinda of like the 360. Everyone that had a Dramcast, including me was very impressed, we actually thought SEGA did it right. SONY came out with the PS2 and just like the PS3, overpriced and no games, yet when the games started to come out we all jumped ship, heck you can even say it with the PS1. Everyone in the industry, not players mind you, always shoots SONY down, yet the always come back, SONY to me is the Rocky of the video game industry, everyone always thinks they are beaten, but by round nine, bam boom in your face.

by difjee - 2007-04-05 02:13
» Yeah but......

Dreamcast never had a killer app......say Gears of War......Halo 3.......Mass Effect.......I like both systems, but don't be so quick to say sony is the victor

by RastaDator - 2007-04-05 03:17
» Yep dlfjee

x360 has some good exclusives and additionally got titles which used to be PS2 exclusives, that sounds good but is not enough.



Ask yourself this question? why is PS2 still selling? where is the 100+ million PS2 userbase? obviously most are more than happy playing God of War II or MGS3, or Ratchet and Clank or Jak and Dakter, or Okami or etc etc., while PS3 gets a good price drop and more AAA titles appear, Lair, HS, Killzone 2 will be awesome, MGS4, FF XIII, RC:ToD, Uncharted, and the list goes on. In due time every PS2 gamer will get a PS3, no doubt about that.

by Mister Common Sense - 2007-04-05 06:10
» Brand loyalty alone will not sell many systems

I had a PS2 but got sick of sony treating people like dumb consumers that automatically buy thier products so I got an XBOX 360!



It turned out to be a great decision with no regrets. I'm sure there are many others like me out there.

by Mister Common Sense - 2007-04-05 06:29
» why that won't happen

The PS2 was actually more powerful than the Dreamcast. Dreamcast allowed very easy piracy, preventing developers from investing much in it. The Dreamcast controller only had one analog stick, which didn't work well with some games. The Saturn helped ruin Sega's image, and helped ruin the Dreamcast.



In conclusion, the XBOX 360 really has nothing in common with the Dreamcast.

by Jin Wu - 2007-04-05 07:58
» Mister "Un" Common Sense

You got tired of Sony treating people like they're dumb but you're going to pay $200 for a 120 gig hard drive that you could easily replace in a ps3 for less than one fourth that price.



You're tired of Sony treating their customers like they're stupid but you pay $50 a year just to play multiplayer games online.



You're tired of Sony treating their customers like they're stupid but you committing to the 360 made you give up your first xbox's library.



Yeah, it's Sony that's the bunch of idiots.

by Mister Common Sense - 2007-04-05 08:26
» duuuh..

Hey, I never claimed I was smart. Well, I may have at one point in time, but it is obvious now that I am not.

by Mister Common Sense - 2007-04-05 09:31
» Aparently brand loyalty alone can sell systems, but not enough

Did I say I was buying a new hard drive?

It's $179 last time I checked anyway.

20gb is fine for me.



I think even fantards that don't like me don't find you funny, Mr. Common Imposter.



Also, what the hell are you talking about Jin? Wu suck. The only thing that made sense is the last sentence. I never even had an original XBOX.

by DatNizzle - 2007-04-05 10:42
» It all makes "Sense" now

I get it now. You bought a 360 because you were mad Sony treated people like dumb consumers, huh. You didn't get it because you liked the xbox brand. You didn't even have an xbox 1. Now you're stuck with a 360, and like any jealous x-boyfriend, you hate on Sony. Xbox was last to make a console last gen and first to make on this gen. M$ expects you to buy a console every 4 years, but Sony expected too much out of you by asking you to wait 6 years, I understand. You hate Sony because of the PS2? What not enough lame FPS for you.

by MARTIN - 2007-04-05 14:39
» SONY IS THE BEST

SONY IS THE BEST ON MAKEING CONSOLES BUT I LIKE THE XBOX 360 BECAUSE THE CONTROLL STILL HAS BIBRATION IT LIKE MAKES GAME MORE EXITED

I HAVE ALL THE 3 NEXT GEN CONSOLES AND I HAVE A PSP AND THE DS BUT I LIKE MY XBOX 360 BETTER

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