[QUOTE="PS3Gamer_1"][QUOTE="subrosian"] In fact, there is only one right answer in your poll, 'it was a failure since its inception". That is 100% correct, anyone voting otherwise ought to spend a few years in an MBA program (or just think about it for a bit ). Look over all the generations of consoles, not just the ones you have heard of, but also the ones that didn't sell, the ones that failed, the ones that became tied to too expensive of a technology, or too many features that didn't matter.
Now tell me - would you, as a product line manager, ever think "our showcase product should launch at $600, a year later than, and at least $200 more than, our nearest competitor"? Does it sound smart to be more expensive than a system with more games, or a system (Wii ) with more new gamer and casual appeal?
If Sony had launched the PS3 at $400 and matched the 360 price-cut for price-cut, the PS3 would be the number two system on the market by a significant margin. If they had used traditional hardware instead of "the cell", made blu-ray an optional feature for their "high end" model (not used for games), and focused on a standard 60gb hard drive size (which would, at the time, have been a threat to the 360, which does not have a hard drive standard) they could have pushed that lead further.
It's all about costs, and Sony essentially threw the PS3's "reasonable price" under the train to push Blu-Ray and try out this "cell" processor. They ultimately traded millions of PS3 sales for a minor victory in other areas.
subrosian
Sony's only failure was that they tried to market to the non-traditional gaming consumers, and didn't do enough in the beginning to keep all of their loyal gamers. They wanted to draw in the causal gamer with features that would make the ps3 a media hub. They had success with this when the ps2 was not only a gaming unit, but also a dvd player! They didn't concentrate in having enough exclusives or games to accompany the ps3 at launch.
Sony packs too much to have matched 360 price-cuts, would not have been wise for them. While their initial price point was high for many, and did turn many people away from purchasing one, once the blueray won the dvd format wars this gave a little bump to the ps3, so in the end they were smart, big gamble though, but smart. And Sony was trying to differentiate themselves form the 360, so not including a blue ray player would have been a big mistake. Sony n ow is not only making money off of the ps3, but also the blueray dvds! Smart cross selling!
More appeal to the masses = best business model!
When the PS2 was released in 2000 in the United States, DVD had already been in mass-production for three years. The format stood a good chance of victory, was well established, and the price of the hardware had fallen to a reasonable level. Pushing out a DVD player made sense - not just in terms of storage space (where more was certainly needed) but in terms of an overall product.
When the PS3 released in 2006 in the US, the Blu-Ray format had only been shipping movies for a few months. The format war was in full swing (with Blu-Ray the likely victor), however digital streaming of movies was rapidly growing as a thread to more traditional distribution. Being one of the earliest Blu-Ray players, the PS3 faced delays from its initial release date, price hikes, and huge costs to Sony to release with Blu-Ray.
It is one of the worst business decisions made by a company. The loss of a year to competitor Microsoft, high prices, and lack of mass appeal were absolutely devastating. While Blu-Ray has "won" the format war, it is a pyrrhic victory, forever costing the Playstation brand massive amounts of marketshare. As Blu-Ray was going to "win" the so-called format war without the PS3 (MS and Intel only invested in HD-DVD to slow the victory, as both of them have invested heavily in the idea that digital distribution will replace discs for most content in the long run ) it was a rather foolish sacrifice to make.
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Sony does not make much money off of the sale of Blu-Ray disc. The licensing costs are not nearly as high as they are for game sales, and unless the movie being sold is produced by their own studio, it's simply nothing compared to what they've lost to establish Blu-Ray on the PS3. Sony has burned billions on the PS3 in research alone, and billions more producing, maintaining, and advertising the units. Sony has been reporting rather significant losses, in part due to the death of the Playstation empire. Remember too, Sony is not the sole owner of the Blu-Ray format, they get a cut of a cut of a cut of a cut, a poor value compared to direct licensing fees for games on their Playstation consoles.
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As far as the "mass market" goes, they do not, and never will, give a crap about the PS3. "Casuals" and "non-traditionals" or whatnot don't care about pixels, they care about fun, content, and price. The PS2 was a success with the mass market because it was cheap and had popular games, not because it played DVDs. The general public will be buying into Blu-Ray when the players are being sold for $100 at Walmart, a price point the PS3 won't be hitting any time soon. Already there are $200 Blu-Ray players on the market - and given that DVD players start at $20, while the PS2 is still over $100, I would not bet on Blu-Ray being the "selling point" of the PS3 in the long run.
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Sony made one of the worst business decisions of all time, while the PS3 is a good system (notice, for the consumer ) they gambled away a Porsche 911 to win a Ford Focus. The money to be earned from having another 120 million selling, software sales dominating, nearly uncontested market god, as were the PS1 and PS2, is simply nuts. It is insane wads of cash pouring from every orifice - whereas right now Sony is bleeding money, and cannot afford to cut the price of the PS3.
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People NEED a reality check here. I don't care how much you like the PS3. I don't care how great MGS4 is - those are consumer aspects. However, when we discuss "failure", and discuss it in a businss sense, there is no way that you go from "clear market leader" to "struggling for last place" and go "boy, we made smart decisions! We should write a textbook". As I said, only a Playstation fanboy, or someone with no formal business knowledge, could possibly consider the PS3 to have been a good decision. Sony screwed up, big time, they made the wrong system, released it at the wrong time, and were too arrogant to recognize their screw up until it was far too late. Somewhere in the company, there has to be a suggestion card where an employee wrote down "y'know, this seems like a bad idea" - but Sony's management is incompetent, and if you're one of their shareholders, it certainly is a frightening thing to see.
I agree that Sony lost a huge amount of market share due to delays (HUGE). These delays, however where necessary because they were fixing issues thay had with their optical drives. MS did not launch the 360 early because they wanted to capture more market share, they did so because they had to. The chips that were used to produce the original Xbox ran out, forcing Microsoft's hand to release the 360 without it being ready. MS just lucked out that Sony had to delay their launch. Sony was playing catch up ever since, which led to many mistakes on their part, but did not want to rush their product without a lower failure rate.
DVD's, while in production during the 3 years prior to the PS2 being relaesed, did not intially take off and make a run for it, and while there were inexpensive dvd players, it was still in the same price range, if not slightly more expensive than the ps2. DVD was the clearly the future at that time, it isn't hard to beleive that Blueray will be the same for now. It may take longer before bluerays overtake dvd's, especially since all blueray dvd players have the capabilities to play dvd's, making dvds still relevant. But the fact that many companies are concerned with piracy, and the push for drm, bluerays stand a good chance of being a major force in the near future with their self-protecting digital concept, which protects bluerays from being tampered. Also with the shift of all tv's having to be digital, which will force many homes to buy a new television, and quite possibly hd tv's, which are becoming increasingly cheaper-----not a far stretch to see that bluerays will be more prominant. But again, these are alot of what-ifs, and Sony is really gambling.
So to say that sony was a failuire because they gambled on their business model---not necessarily true. Many circumstances have made Sony stumble, and have forced them to play catch up, mostly due to the fact that they lost a year on the 360. 360 had to launch earlier than they wanted to because of their dilemma. Sony did play catch up, and stalled their own launch, which did hurt them in the long run.
Sony did screw up in trying to capture a wider audience. they did try to capture the casual gaming and non traditional gaming audience, it introduced the six axis controls a la Wii, once it saw what Wii was doing, as well as trying to sell the console not neccessarily as just a gaming unit but also a multimedia hub that a causal game can use to play as well as other recreational uses, and part arrogance/cheap (they didn't want to pay the company that supplied them with rumble.) they wanted it to be the main focal point to go along with tv's. No need to have mutliple appliances tied to your tvs.....just a tv and a ps3. it failed becuase while trying to do this, it did not maintain its core audience, probably because of arrogance of thinking that ps2 players will automatically just buy the ps3, no matter the price. Remember the ps2 came out at a higher price of any console at that time....$300. The gamecube was cheaper, but didn't win. And when it was sold, Xbox hadn't even come out yet. 2001, Xbox comes out, 1 year after, but PS2 already had that install base. Xbox was price moderatley, but still did not catch up to the ps2. PS2 had too much support from software developers, who were all rushing to develop for P2, since it had the most units sold. The expensive price is because of the wifi, and th bluetooth, as well as the bluray technology it employs. It could have cut down on some of these features, or made them optional.
I guess I am tyring to say that PS3 was a flop, since it has not been able to replicate the success of the ps2, but not necessarily because of Microsoft's "saavy" business techniques. And PS1 and PS2 were market gods because of their positioning. Sega screwed up big time in their competiton with Sony, and by that time Nintendo was still clinging to it's glory days, thinking its name would still move units. Since Xbox became very popular with its online gaming, (this is where sony truly failed) ealry on with the original xbox, this really proved to be one of the highest sellign points for the 360, as well as it's 14 month headstart. PS2 didn't dabble in online gmaing until 2002-----and even then it wasn't comparable at all. We have yet to see if Sony's gamble will pay off in the end. It is obvious that the selling price is not a huge turnoff, since it is sellin units and isn;t too farbehind form MS, despite the delays and MS's price cuts. We just have top wait. But to say that Sony was a failure, we havbe to wait to see how it plays out, a huge flop and disappointing launch---YES.
And I wouldn't be surprised if 360's hardware failure now ill affect the next MS console's sales. Maybe people will delay buying it to see if there are any issues. Maybe, but this is videogamers, and as is apparent now, they obviuosly don't care about quality hardware.
And MS fanboys need a relaity check as well! I am not saying that PS3 was a success, but only a 360 fanboy can be content and continue to endorse a failed product. If this product were anything else, say a vcr, car, what have you, it would not have been continued to be purchased because of its known faulty hardware. But fanboys continue to buy the systems because of the games, and especially because they are fanboys. I had both the ps2 and original xbox. I want the 360, but refuse to endorse a company that knowingly shoved a failed hardware onto its customers, and to say otherwise is blind fanboyism. i agree that Sony has stumbled, but MS has succeeded because of the blind fanboyisms out there.
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