Technology news and Jobs arrow Radioactive IT arrow Is it games or Blu-Ray driving the PS3 resurgence?
Is it games or Blu-Ray driving the PS3 resurgence? E-mail
by Mike Bantick   
Friday, 18 January 2008

No, the single significant event that has started the resurgence of sales in the PS3, which now matches the Xbox 360 world-wide, was the price adjustment in early November .  Across all regions, the spike in sales and continued success of the machine has been simply due to making it cheaper.  Something we said would happen .

Sure the original vision of the PS3 has been somewhat hobbled, with PS2 backwards compatibility removed, as well as a reduction in hard drive space and loss of the card reading slots.  But the soul of the cell processor, built in Wi-Fi and Blu-Ray drive remain.  Throw a HDMI cable into the package to accommodate all those new HD TV’s on the market and the offering would be complete.

Now we look to 2008, here the high definition disc wars will hot up.  The major Hollywood studios will have a significant say in how that pans out, but Toshiba have already responded , taking a leaf from the Sony book and immediately reduced the cost of HD DVD players, starting now at US$149 and up to US$399 for a high end device.

For now, the PS3 is all about promise, there are a number of projects out there that look promising, such as Little Big Planet, PlayStation Home and Play TV.  With Killzone 2, Metal Gear Solid 4 and God of War III on the horizon, and perhaps more to come , there are some exclusive game titles for PS3 owners to sink their teeth into.

Of course in the dynamic and increasingly competitive world of electronic entertainment, things will change.  There is no way Microsoft and especially Nintendo will sit still in this market.  Revamps of Xbox 360 and innovations such as Wii Fit will put further pressure on the PS3 to perform.

Rebundles will help, but the boiler is heating up and Sony will need to deliver on many things that fans have been waiting for, to keep the sales ticking over.  Relying on Blu-Ray will not be the answer.

Playstation the brand remains a powerful consumer icon, in this country [Australia], a relatively small market on the world scene, but a good barometer of sales sentiment, the brand had an impressive Christmas period.

For weeks 47 – 52 of 2007 175,000 PlayStation branded equipment left retail stores.

“We are delighted to have finished the year off in such a strong position, with all three of the PlayStation platforms performing extremely well,” said Michael Ephraim, Managing Director SCE Aust. and New Zealand. “Encouragingly, across the industry we are seeing interactive entertainment being embraced by an ever increasing number of consumers of all ages.”

“The PlayStation brand continues to be a firm leader in the interactive entertainment market, offering a solution for all entertainment needs. The PSP is the ideal device for those looking for games, music and movies on the go. The PS2 appeals strongly to those seeking social gaming entertainment at home, at a very affordable price. While the PS3 is highly attractive for those embracing a digital lifestyle and looking for next generation Blu-ray games and movies, plus a host of online capabilities through the PlayStation Network.”

This included around 48,000 PS3’s over the period, making up almost a third of the total sales in Australia since the launch of the console.
 
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