More on the PS3 Disaster
Posted on July 13, 2007
Filed Under Uncategorized |
Met up with a friend yesterday who was at E3 this week, we talked about the PS3 debacle and how it could get worse for Sony.
- Expect another price cut
- Another tactic Sony is rumored use to drive down the BOM cost is to release a model that does not feature a Blu-ray DVD but rather a simple plain ‘ol DVD drive (like Microsoft)
- The Microsoft Xbox engineering problems didn’t come up as an inflection point for Sony, so don’t count on the market moving to Sony as they leave Microsoft.
- Blu-ray is also a victim here because Sony’s strategy was heavily dependent on millions of game consoles shipping to prime the pump for content on the high def format. While HD-DVD is equally unimpressive in unit shipments, the risk for Sony is that the market just decides that high def DVDs can wait a few years at which point on demand downloads (iTunes) will be more threatening.
- Partners are pissed and desperate as well, telling Sony that the PS3 simply has to ramp up shipments or they are all screwed. Partners are also complaining loudly to Sony about the poor developer tools compared to what Microsoft provides Xbox360 developers.
- When combined with the faultering PSP, lack of a compelling online strategy, and changing market demographics away from young males and FPS, this is potentially a "Sega moment" for Sony.
Tags: PS3, Sony, Xbox360, gaming
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My name is Jeff Nolan and I write Venture Chronicles. These are my thoughts on technology, innovation, management, public policy and pretty much anything else that I find interesting.
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