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In the U.S. sales of the Xbox 360 rose by 8 percent from last year, whilst the Wii doubled in sales volume – this according to early sales results reported in the Wall Street Journal . Meanwhile the PlayStation 3 has not captured the seasonal shopper, PS3 sales have dropped by 19 percent for the same time last year.
Many analysts point to the cost divide between the PS3 and its competitors. In the U.S the game console continues to retail at US$399, which is down from the original asking price of US$600 for the 60GB model in late 2006.
For the average consumer comparing shelf prices only, they see the ever popular Wii at its unchanged launch price of US$249 or the well established and modular Xbox 360 starting at an attractive US$199. Price is on the surface a big demotivater during a tougher economic climate.
Even at US$399 Sony are initially losing money on each PS3 sold, hopefully making a profit on software and Blu-ray sales later on. Sony are getting closer to breaking even on the hardware , but remain resolute there will be no price cut at the till for the PS3 for some time to come. Sony are determined to get the gaming division into the black as soon as possible.
As they have done for most of this console generation, at least in the lucrative U.S. market, Sony is playing catch up to its competitors.
US$399 is actually not that bad when you stack up what you get in the package. A wireless, 80GB of easy upgrade storage, a powerhouse processor machine, with an ever improving range of game titles and an integrated Blu-Ray player. Throw in a free PlayStation Network, online store and 3D social network with PlayStation Home and the package looks pretty good.
So why are they not being snatched up?
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The problem is, that the market for all of this is actually pretty niche. Wireless also built into the Wii, and an option (if you want it) on the Xbox 360. There are only a few exclusives to distinguish the PS3 from the Xbox 360, and apart from an even smaller handful, are replicated at least by other titles.
Add that to the fact that the current PS3 no longer is compatible with PS2 titles, and the game library fails to compete with the year head start Microsoft had. Despite the Cell Processor core of the PS3, it is difficult to say which offers the better high-def gaming experience. At least Sony added rumble back to their SIXAXIS controller this year.
Xbox LIVE Gold membership costs a yearly fee, but with an integrated experience, a new look, simple to use marketplace, consistency of design , demo offerings plus access to a wide variety of titles ranging from professionally created cross platform games, to community created XNA experimental offerings it is hard to argue the service does not provide value.
Compare that to the fledgling first attempts at an online community with PlayStation Home – admittedly still in beta testing – and the somewhat haphazard feel of the PlayStation Network, you cannot help saying “you get what you pay for” when it comes to networked integration.
PlayTV, a maturing of the download content and the Home service will improve these assessments for Sony.
Stand alone Blu-Ray players are rapidly decreasing in price, to the point where many must see this as a living room option, with the PS3 being relegated to the status of a ‘games’ only machine .
If there is one place a PS3 has it over the competition, it is in the ever important storage arena. The Xbox 360 has plenty of HDD options, the Wii community are hamstrung on storage, but don’t seem too upset, but the 80GB (in the U.S.) model is a great off the shelf option for those looking to make use of download content. But the feather in the PS3 cap, is the ease of upgrade, with pretty much any electronic store purchased HDD able to be nestled within the PS3 case with the twist of a screwdriver.
Nintendo have pretty much gone their own successful way, whilst Sony has lost much of what it had to the Microsoft Xbox 360 intruder, including past PlayStation staples such as the Square Enix Final Fantasy RPG’s.
Sony has a lean time ahead, and it is as basic as a price cut, Microsoft have recognised this, Nintendo don’t really care yet, but Sony have more to lose and cannot wait until we see Wii 2, Microsoft 720 or PS4 to try to get back market share.
Game developers look at platform install base as part of their decision making before launching the expensive business of a new project. At least Sony has its own in-house developers, and plenty of popular franchises that will continue to sell. But frankly, time is a ticking and if these seasonal sales figures prove correct, it will difficult to ride out the next period of this current gaming generation at a distant third player in the market.
If anything, a global financial crisis is a time to strike for electronic entertainment companies, spending will retract, but people will always want to be entertained. Give the masses what they want at a not too hurtful price point and graphs will rise. Nintendo and Microsoft already understand this.
