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.

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