Sony dominance in game consoles at risk?

By Derek Sooman on May 17, 2006, 7:58 PM
Could Sony's position in the game console market topple? According to ABI Research, the company's console pricing strategy is pretty risky. ABI feels that Sony is perhaps not thinking too clearly asking people to buy a new console at US$500 to US$600, when they have yet to get themselves a HDTV to go along with it. The high price may lead some to consider alternative console offerings, such as those from Nintendo and Microsoft. Sony's box is quite expensive to manufacture, which might wind up biting them in future if some kind of price war ensues.

ABI Research did give the thumbs up to the Nintendo console offering, Wii. They believe that Nintendo is well positioned to expand into the casual gamer and new gamer audiences. ABI believes that Nintendo is doing well to concentrate on gameplay experiences, rather than getting caught up in the graphics space-race.




User Comments: 19

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atk spade said:
I think that the tides have changed. The Casual Gamers dont want to shell out big bucks. I think Wii will fill this void.
canadian said:
I know alot of people, that are already saving up for a playstation three, and they claim it will be worth the price. But, I know more people that are going to buy Wii's, because they sound like a interesting, new and fun design, and are incredably cheap! In the end, I think its the player base, and the games, not the console, thats important.
mirob said:
I agree, but over time it will get cheaper and the performance will still shine. Time will tell, but I'm spending on a E6700 and a x1900 in July and no consoles in the fall.SONY's malware turns me away from thier products anyway!
rmdl51 said:
I believe Nintendo has learned from past mistakes, so now they are betting everything they have in this new way of playing with Wii and I support them, with Wii I'll have games that no system have such as zelda, mario, metroid and many more besides the controller is really interactive this time. I think Sony is focused on technology more than anything and that is their biggest mistake I know a lot of hardcore gamers will buy it but, will I buy a PS3? no way, i won't spend 500 or 600 in this console, why? because most of the games i like for PS i can play it on my PC even future games, if not i can upgrade my pc and i'll have a faster computer and a gaming pc, so I'll save space and money, this time Nintendo will take back the lead because of 2 facts, 1 Price and 2 a new and incredible way of playing videogames.
Kaleid said:
Do we know the price for Wii yet? Or is this information that Nintendo keeps close to their chest? Perhaps shock public and competitors close to release date?
crossfire851 said:
Well with nintendo's last console (Game Cube) it wasn't eggzackly a block buster. The low end consoles are for people that are either really in to that brand or they don't really care.I think in the end that Wii will have it's place, but I think it will still be truckin' on, will it's compeders lap it.Maybe next time nintendo will have the most powerfull system. Time can only show the outcome of everything...
OUTLAWXXX said:
Dude i already have the Xbox 360 and im loving it! but i did keep my mind open too see what the Playstation was gonna be like and especially whe Wii LOL but after i found out what Sony was doing on prices and how the $500 was way more of a rip off than the $300 version of the xbox 360 im thinking im gonna get the 360 And the Wii! i mean i can play next generation on the 360 especially halo 2! and i can play Super smash bros. on the Wii and classic Nintendo and SEGA games!! for about the same price as the damn playstation 3.
crossfire851 said:
[b]Originally posted by OUTLAWXXX:[/b][quote]Dude i already have the Xbox 360 and im loving it! but i did keep my mind open too see what the Playstation was gonna be like and especially whe Wii LOL but after i found out what Sony was doing on prices and how the $500 was way more of a rip off than the $300 version of the xbox 360 im thinking im gonna get the 360 And the Wii! i mean i can play next generation on the 360 especially halo 2! and i can play Super smash bros. on the Wii and classic Nintendo and SEGA games!! for about the same price as the damn playstation 3.[/quote]Any PS3 will outperform any other gamming consloe, even the "low-end" version.
Berserk_Fury said:
This I copied from Playstation Gamer Advisory Forum. I did not write this and I do not take credit for it:"Xbox is not cheaper than PS3:First, why do people want to buy or play an Xbox 360? Is it for the system itself? Is it because it's America's game system? Is it because of exclusive titles? Or is it because of the online service; Xbox Live?Lets go over the pricing table and lets use the high end models on both sides ($400 vs $600). There are many very detailed lists available, but lets get down to what matters.For $600, you get from Sony:- Linux powered Gaming console (backwards compatible with PS1 & PS2)- High Def BD-ROM Player (HD movie player) with HDMI support- DVD player (reads DVD-ROM, DVD-R, DVD-RW)- CD player (reads CD-ROM, CD-R, CD-RW)- HDD (60 GB - upgradable)- Memory Card Reader ports- 4 USB ports- 1 wireless Blue-tooth USB game controller- Motion controlled game play- WiFi 802.11b/g support (Wireless Network Internet)- Network Adapter (Built-In Gigabit [100/1000 Mbps] Ethernet port)- Built-in Internet Browser- Playstation Network Platform (PNP) membership - All community features- Media Center (storage for movies, photos, games, etc)- *Digital Video Recorder (DVR or DVR like functions) ?- *Upgradable system memory ?For $400, you get from Microsoft:- Microsoft powered Gaming console (backwards compatible with some Xbox games)- DVD player (reads DVD-ROM, DVD-R, DVD-RW)- CD player (reads CD-ROM, CD-R, CD-RW, WMA CD, MP3 CD, JPEG Photo CD)- HDD (20 GB - upgradable)- 2 Memory Unit slots- 3 USB ports- 1 wireless WiFi USB game controller- Network Adapter (Built-In Ethernet port)- Xbox Live Silver Membership (shop online, but no game play)- Media Center Extender for Windows XP Media Center Edition 2005- Headset- Ethernet CableIf you want to watch HD Movies, you'll have to sink in an extra $100 (speculated cost, nothing officially released from MS yet) for an external HD-DVD drive - but there's a catch to this.**If you want to play your online enabled games online, be sure you pay your annual Xbox Live fee; $50.For a wireless connection, you will need to buy an adapter or bridge; $50At the end of the expected 5 years of owning a gaming console; The average 360 player will have paid more money to Microsoft to play their 360 than people will have paid Sony to play their PS3.After 5 years, here's what you will have spent to achieve 'equivalent' systems:On the Sony Playstation 3 = $650 (Lets just say it's an exspensive headset: $50)On the Microsoft Xbox 360 = $800 ($400 for hardcore gamer package, $100 for HD-DVD player, $50 for wireless network adapter/bridge, $250 for 5 years of Xbox Live membership)So, I suppose if you are the type of old fashioned gamer who enjoys the single player modes and never intends to jump online or utilize true HD movies, maybe you should consider the more cost efficient, Nintendo Wii. BTW - I heard that Nintendo has its own controller with motion sensors too!** In the era of HD, entertainment industries have come up with standards to implement copy-protection of movie content in the way of AACS encryption and HDCP hardware-controls. AACS encryption only works with digital connections; DVI and HDMI ports. Microsoft had previously stated that DVI support will be ready "when the market will support it". But the problem here is HDCP.Not all DVI and HDMI supported devices have been built with fully-functional HDCP chips; basically what is needed to access the protected content or signal. The Xbox 360 is not HDCP compatible, thus the new HD-DVD add-on must be. But the problem again is; USB does not support HDCP. Microsoft said they would be releasing a USB HD-DVD drive - so how exactly do they intend on getting around support for High Def movies? No one seems to exactly know yet.**UPDATE**I had originally included WiFi 802.11 a/b/g support for the Xbox 360. After further research (thanks to you readers) I have not been able to find purpose of the 802.11 support other than for the wireless controllers. Thus it has been removed from the list and total has been re-tallied.Keep in mind, these prices are not exact and may actually be higher or lower. I went with the lowest speculated costs to try and keep the gap between the costs of the systems as close as possible."
smtkr said:
Wow. I can't believe you copied and pasted such useless dribble. I especially like the part where he says, "I heard that Nintendo has its own controller with motion sensors too!"Seriously, I can't wait to see the fanboys get nailed with this purchase.
Rage_3k_Moiz said:
PS3 and X360 have their own flaws and highlights. But the main thing that I do not like about the PS3 is its size. I mean, 11 pounds? Who are we kidding. Thats a lot compared to the X360's 8.5 pounds, dontchathink?
Supra said:
The price for the PS3 is easily justified. Its not just a gaming console, the Blu-ray drive alone is worth more than an entire X360 system if you were to buy a stand-alone player, you cant even get an HD-DVD player for less than $500. The motion sensor stuff I could see why people wouldnt like that, since it looks like they just copied Nintendo(maybe, maybe not, no one on this board helped develope either console), I would much rather have dual-shock back anyways. And the weight, cmon its not like your gonna need to put down some concrete pilings to keep it from falling through the floor.
Berserk_Fury said:
[b]Originally posted by Rage_3k_Moiz:[/b][quote]PS3 and X360 have their own flaws and highlights. But the main thing that I do not like about the PS3 is its size. I mean, 11 pounds? Who are we kidding. Thats a lot compared to the X360's 8.5 pounds, dontchathink?[/quote]What do you do? Carry your consoles everywhere you go? Why does the weight matter much to you?
Didou said:
If watching a Bluray movie on the PS3 is as good as a DVD on the PS2, I'd rather not. & soon enough only the $600 PS3 will be able to play BR movie as the $500 version doesn't even have HDMI.
rev_olie said:
I think this has all gone to far. Nintendo consoles should be wireless, microsoft should carry on maing software for computers and sony shoud do the consoles cos who needs a choice sany are basically wipping microsofts arse. also you will need 500 to get what the ps3 has if you get a 360. o and the price bracket is $400-$500 as released of last thursday :D well thts me sorted
Rage_3k_Moiz said:
[b]Originally posted by Berserk_Fury:[/b][quote][b]Originally posted by Rage_3k_Moiz:[/b][quote]PS3 and X360 have their own flaws and highlights. But the main thing that I do not like about the PS3 is its size. I mean, 11 pounds? Who are we kidding. Thats a lot compared to the X360's 8.5 pounds, dontchathink?[/quote]What do you do? Carry your consoles everywhere you go? Why does the weight matter much to you?[/quote]No I do not. More weight means more heat output. This would lead to even worse problems than the X360 had regarding heat output. And it would need a sturdy case for it to be carried or packaged in, which would add to the weight.
Berserk_Fury said:
Weighting more does not affect heat output. How do you know that the cooling system doesn't take up a lot of the weight? You don't.
Rage_3k_Moiz said:
Sony fanboy eh? We'll see, come November...
Berserk_Fury said:
What does being a sony fan have to do with anything? You make no sense
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