I wouldn’t be so quick to count Sony out based solely on the price tag for the upcoming PS3. When the PS2 launched there were similar protests about the price tag and Sony proved to everyone that there is a much higher degree of price elasticity in the gaming market than the critics believed. With the PS3 Sony is delivering, like Microsoft already has, a gaming console that holds the promise of being a true media center for home entertainment enthusiasts and gamers alike. It is still promise at this point and despite being in the market for over half a year Microsoft has yet to transform the Xbox360 into just such a media center in the eyes of consumers, but I also would have to make the observation that they haven’t tried very hard to make that case.

What I find equally interesting is how Sony is using the PS3 as a primary front in their Blu-ray vs. HD-DVD war. Sony critics, myself included, are fond of looking that the many flops Sony has engineered for itself by going with proprietary formats that require expensive licensing fees for OEMs to use, starting with Betamax and ending with the minidisc and memorystick, however in the case of Blu-ray it appears that Sony has realized an ecosystem is just as vital to the marketplace adoption of the standard as technical excellence is. There is an impressive array of OEMs lined up in support of Blu-ray and the momentum has seriously eroded support for the Toshiba backed HD-DVD standard.

Philadelphia Inquirer | 06/04/2006 | One Last Thing | Setting the stage for another flop?:

Those who ignore history are doomed to repeat it. One of life’s more satisfying ironies, however, is that the same fate often befalls those who fixate on history. Consider the coming train wreck of Sony’s PlayStation 3.

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