Sunday, August 17, 2014

The Reasons Why PS3 Will End Up In last Place This Console Generation

PS3, the most powerful gaming console on the market has also been the most talked about, ridiculed and damned in this, the seventh generation of consoles.

You remember don’t you? When it launched back in 2006, media outlets big and small had much to say about the black box. Would it survive? Most journalists doubted it. Was it too expensive? Most believed it was. Was Blu-ray a waste of time and money, and technology forced down our throats? Again, most, back then, agreed it was.

That same song cannot be sang today, though, because now, with a redesigned console, a cheaper price point and the biggest and broadest exclusive lineup on any console, Sony’s PlayStation 3 has been on a rise. As of now, you’d be hard pressed to find the console in stores; it just won’t stay in stock.

The hardware giant couldn’t be happier with the results, I assume, because analysts were predicting that soon, in the not too distant future, the PS3 would overtake the Xbox 360′s global install base and end the seventh generation console race in second place. And their analysis, though optimistic, was not impossible to achieve at all. In fact it was quite possible. The only regions that Xbox 360 holds a handy lead over the PS3 are US and UK, but the rest of the world is all PS3 domination. This includes Europe, Japan and all emerging markets. But then E32010 came, and what Microsoft revealed at that show changed everything.

Everything. Microsoft’s plan from the beginning of this generation, was to beat Sony by selling more units and having a bigger install base at the end of the race. Redmond knew the PS3 had lasting appeal, and has planned carefully to make sure that, with every step Sony takes, they’re one step in front to assure that the PS3 does not catch up. That was demonstrated at this year’s E3, and I would say, the launch of the Xbox 360 Slim has just guaranteed Microsoft victory.

Now, in almost every department, Microsoft is outselling Sony. Kinect is beating Move, and Xbox 360 S is beating the PS3. From amazon, to global console sales, Microsoft’s new slicker looking black box has just been stumping all over its competition. I get it, though, this momentum is to be expected with every console relaunch, doesn’t matter if it’s Sony, Microsoft of Nintendo. But another factor that one must consider, is the fact that this also stalls Sony’s momentum in many ways.

Microsoft now offers a console with a bigger HDD than that of Sony’s, and at the same price. There’s also built-in WiFi connectivity, and the Xbox 360 arcade units price will once again be reduced, making the Xbox package even more attractive. Indeed all over the world, there’s been a substantial rise in Xbox 360 sales. From US to UK (which, by the way, are two of the most important markets), to places like Australia and even Mexico.

The Xbox 360 has at least a 5 million install base lead over the PS3, and although Sony was rejoicing over the recent gains it had made when the PS3 Slim was launched, said rejoicing was short lived. Now another strategy must be forged in order for Sony to at least keep up the pace with Microsoft – and I believe they will. But here’s the problem: at this late stage in the game, it doesn’t matter what Sony does, Microsoft will counter with a plan to halt, or at least stall that plan, and this will happen over and over again until this generation has come to an end.

And these are the reasons why the PS3 will end up in last place in this, the seventh generation of consoles. Other reasons are obvious:

To Launch one year later than Microsoft
wasn’t a smart move at all; they should have kept it toe-to-toe from the onset. It’s also important to note that the lead Microsoft’s enjoying now is due to it launching the Xbox 360 a full year before Sony released the PS3. That was a great strategy.

Selling a console at $650 at launch and expecting customers to just go out and “get a second job” like Ken Katarugi said, was just arrogant. People didn’t do that; instead they went out and bought Xbox 360s.

The price stayed at $399 for way too long; this should have happened much sooner.

Advertising was also a big let down in the PS3′s early days, with the hardware giant doing little to none of it, and what was done mostly scared people away instead of attracting them to it. That, however, has changed. Kevin Butler is the genius Sony desperately needed in its advertising department.

There are other reasons, but those are the most notable. The PS3′s future is bright, no doubt. It will continue to sell superbly, and the exclusives on the console are bar none.

It will, though, end this console race last in terms of install base. But that’s quite alright, there’s always PS4, and as long as the giant makes a profit on its biggest investment yet, I see no losers here.

About Ernice Gilbert

Ernice Gilbert here. Founder and Editor-In-Chief of Gamesthirst. Thanks for stopping by, make yourself at home!
  • Statix

    I just love knee-jerk reactionary articles by fanboys like this. The 360 gets a nice little temporary boost this week in sales because of a case redesign and finally beats the PS3 in terms of worldwide sales for the first time in many months, and all of a sudden it’s the END OF THE FREAKING world for Sony–the sky coming crashing down for the PS3.

    One week of the 360 selling well in the Americas (with a huge portion of the extra sales simply due to Gamestop’s Slim trade-in offer with tons of existing 360 owners trading in their old Xboxes for the new shinier model), and the fact that many retailers are having firesales to get rid of the old fat 360 stock (temporary $50+ price cuts on all old 360 models).

    The keyword here is “temporary.” The 360 had a nice week based on boosts from several different factors, but the sales will level out pretty soon, and the worldwide total sales will go back to around the same levels as they were before the new case came out. The only question is whether sales will be plus or minus ~10,000 here or there, and stay at that consistent selling rate.

    Never mind the fact that all it would take is for Sony to introduce another price cut for the PS3 (or even perhaps another Slim redesign–a REAL one this time) for the PS3 to get yet another huge boost for itself, and then it’s going to be the same story again with the PS3 outselling the 360 every month–not to say that it won’t even without a price cut. Is the PS3 still doomed then, if the tables were turned in the way I just mentioned?

    Like I said, I just love reactionary, kneejerk, fanboyistic articles by people who just wish the PS3 ill-will for whatever reason.

  • Ichi79

    Dear Statix, the guy was simply explaining how he sees it and you can hardly call him a fanboy. And this for obvious reasons, he never dissed the PS3 in any way, he even praised their exclusives with the words: BAR NONE. Need i say more, we spotted a fanboy alright, look in the mirror Statix, can you see him? :-) :-) :-)

  • yami930

    Funny, I saw most these reasons on why PS3 is great, and 360 is not as good, being great to a certain extent. Because first, PS3 waited to release to be the best console it could be, and it shows, with Blu-Ray being one of the main reasons for waiting, it has proved to be very significant, and needed in most cases, also being a major selling point of the PS3. 360 being released early was a mistake in many ways, now making the “Next Gen” console seem somewhat dated in certain areas, DVD and all, and the hardware seems so rushed with such a high failure rate, which is where many of the 360 sales is coming from, buying new ones due to RROD, aside from the newly released Slim version.

    Next, why not mention the cheapest price the PS3 was offered for, which was the $499 20 GB SKU(U.S. at least, not sure about other regions.), and for me and many other people it was well worth the money, as it was the most advanced console to release, and progressed to become so much better now, especially with PlayStation + coming, Firmware 3.40 being brought out, and the Move coming very soon.

    Third, the price staying $399 was a business decision, as they needed money to keep making more, and to make money back, where 360 just lowers the price whenever, not seeming to care how much money can be potentially lost, as all it seems they like most is being the most acknowledged console, and the “leaders” of competition, because their console is cheaper as advertisements show, but it ends up in most cases to be most expensive console there is with all that is necessary, so when PS3 was $399 you have to see the value all together like free online, where 360 in the end was most expensive even at that time, after paying for Live and HDD (depending on SKU)

    Lastly, I have nothing to really say about advertisement, cause I can agree that it was a little on the downside when it came to ads for PS3.

    In the end, this, all of this is history, all changed now, and who knows, there is a high chance PS3 is the console that is 2nd for most owned console, aside from Wii, which can not be determined by number, because of the very “around the bush” way Microsoft counts consoles shipped, including replacement consoles, not soley based on just consoles sold brand new. With the launch of PS3 slim, and the re-branding, PS3 is rising, and seems very promising, with the vision, and idea of longevity set for the powerful machine. A very similar thing can be said for the launch of 360 slim and their own re-branding, adding new console hardware spec and features, such as built in wireless N internet, and having the Slim built with the future in mind, such as the imminent Kinetic release.

    It’s all competition, this is what drives the industry forward, bringing new ideas and innovation, pushing these pieces of hardware to new levels, and exposing the best these consoles, and companies behind them have.

  • nick

    i doubt it will finish last for 2 simple reasons.
    1 games.
    to be honest since the 360 has launched there are 5 games i would call must have games, games anyone must play.
    splinter cell conviction.
    mass effect 2.
    gears of war 2.
    alan wake.
    last but not least crackdown.
    ps3 though, well lets see.
    god of war 3.
    uncharted series.
    R&C series.
    metal gear solid 4.
    infamous.
    joe danger.
    heavy rain.
    GT5
    just to name a few.
    M$ for some reason are relying on exclusive DLC.
    sorry M$ but timed exclusive DLC for crap games like COD dont sell consoles!
    games like uncharted 2 and heavy rain sell consoles!!!!!!!!!!

    2 sony actually bothers to innovate
    the ps3 gave us bluray, the ps3 is now giving us 3D games and motion controls.
    whats the 360 giving us?
    a laggy camera?
    say whatever you want rare, but the fact is IGN and other gaming sites back from E3 say theres a noticeable lag with kinect.

    as ive said many times i really cant understand why M$ are doing what there doing this gen.
    last gen with the xbox they gave us so many new things.
    they were the first to have a inbuilt HDD in their console, they were the first to have a online service, they were the first to have a online store, they were the first to have networking capabilities in a console.
    what have M$ brang us this gen with the 360 in terms of pushing the industry forward?

    i really cant understand why M$ are so hefted up on exclusive DLC.
    why not put that wasted cash on timed exclusive DLC onto a more progressive project, like buying a new first party studio?
    if theres one thing M$ needs to do its increase their first party support.
    M$ has less first party studios than any other company out there!!!!!!!!!!!!!

    there willing to spend cash bribing people, there willing to spend cash on advertisement and boy are they good at that!
    so why are they not willing to spend cash on buying some first party studios?

  • Ernice Gilbert

    You have some great points as usual bro. But I’m standing by the article. This generation is almost out anyway….

  • ExclusivesMostly

    Yeah, good points Nick.
    I think when it’s all said and done PS3 will sell more than 360. I see it selling over 100 million easy. This is all thanks to Bluray and its raw power as well as fantastic exclusives among other things.
    Note: A few years from now Bluray will be as
    popular as DVD. PS3 will still be selling like
    crazy after the introduction of the PS4. Just look
    at the PS2 if you need proof.

  • nick

    exactly, thats another thing.
    M$ may still support the 360 once its successors out, but i doubt they will.
    though sony definetley will, so just because the ps4 or whatever its called is released does not mean its game over for the ps3.
    plus the generations no where near finished, its only half over!
    ill be surprised if we see a new xbox or playstation before 2013.
    especially with move and natal coming out, it will take at least 2 years for them to hit their stride, so that puts us into a announcement at E3 2013 than release later the year.

  • EliasAndri

    Nick,
    I agree with the part about the DLC and Kinect, they are two things that I am least excited about, but to be fair, you left out probably the most popular franchise Micro got. Halo, which includes what, 3 games and 1 in the works? Halo sells consoles.
    Forza rivals GT5,
    Prototyle (although released on PC aswell) rivals Infamous.
    As well for the ‘illegal’ positive that Xbox360 has, which is extremely useful for people on low budget.

    But in my opinion? I think the PS3 will win because it has greater potential and capabilities.

  • Brandon Keck

    I’m with Ernice on this one. I really think the new 360 redesign and the launch of kinect will seal Microsoft’s spot in second, and Sony’s in third. I think casuals are gonna go crazy for kinect. Just from talking with people who don’t really play video games Their pretty blown away by it. Sure for most gamers like us lag is a big issue, but I don’t think that will matter too much to casual gamers. I’m not a fanboy, and I’m not trying to bash sony or anything, but I really just can’t see move appealing to casual gamers for the simple fact that they’ve seen it before with the wii, and I don’t think enhanced graphics, and precision are enough to make them want it. At this point I really don’t think it matters what sony does. For real gamers the ps3 is a wonderful thing. A powerful system with a great library of exclusive games, but for casuals it’s just that other game system.

  • Ernice Gilbert

    Capcom is predicting that this console generation will end in 2012 guys, like I said, it’s impossible for PS3 To bypass the 360 in that time period, even if it went to 2014. You guys must remember that the Xbox 360 keeps outselling the PS3 in the two most important and biggest markets: US and UK.

    http://www.gamerzines.com/ps3/news/reeves-new-generation-two-year.html

  • Dipchit02

    Why you base anything on a guy that says that and follows it up with “I don’t have any inside information.”? he has no idea he can guess but no information to go on. That being said I really do not think it matters who sells more this generation BUT since we are on the topic lets look at it this way, if you say that this generation is over once the first console of the next comes out then yes I think the 360 will end up with more units sold but if you count the whole life cycle then the PS3 should win. The 360 had about a 6 mil unit lead when PS3 came out, it is now has a 5 mil unit lead but look at right now in 2010 the PS3 has a 1.1 mil lead on 360 and the PS3 had 2 mil more than 360 in 2009. If the PS3 wins by 2 mil this year that is a 4 mil lead for 360 and 2 the next year (2011) then the 360 lead is only 2 million going into 2012 and assume a 1 mil lead or so in 2012 and you the PS3 could very easily get the lead back by 2014

  • newyearnewrule

    I agree with Ernice on this one!