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Sony Could Go From First To Last

PS3, Wii, Xbox 360

A new report from market analyst group DFC Intelligence has suggested that with the PS3, Sony could fall behind both Microsoft and Nintendo in the next-generation. The report, made by David Cole, said there was a "distinct possibility the PlayStation 3 could end up third in market share behind both the Xbox 360 and Nintendo Wii."

The prediction is based mainly on the PS3's high price point - up to US$600 price or AUD$1000. This is not just because of the prices of Sony's competitors' consoles, but also because they are yet to show the advantages that the system provides.

'Sony has done very little to justify why the system is worth a premium price for consumers that don’t care about raw hardware performance and are not hard-core audio/visual consumers,' Cole claims. 'Unfortunately we believe that represents over 90 percent of the consumers in the marketplace.'

The success of the PS2, according the report, was due to the fact it a 'complete entertainment system for the family', will plenty of third party support and great titles in a huge number of genres. Cole claims that Sony seems to be discarding this inclusive philosophy and is instead trying to target the high-end marketplace.

'There is a market for high-end products but it is 1) a very different consumer type and 2) not nearly as big as the blue collar mass market. Wal-mart sells more toys than FAO Schwartz and McDonald’s sells more beef than Ruth’s Chris Steak House.' He also touches on the PSP, which is underperforming in Japan in comparison to the massive success of the Nintendo DS is thriving. Cole said in the past, the performance of a system in Japan foreshadowed its performance in the rest of the world. Apparently, this could indicate that Sony may struggle with the PS3.

DFC did repeatedly mention that the situation would be a worse-case scenario for Sony, and should be in no ways construed as a certainty.

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