Inside Sony Japan, where most massive company decisions are made, the mood must have been joyful when it was time to release PS3: “Guys we have no competition!” PlayStation father Ken Kutaragi must have proclaimed. “PS2 is the most successful console ever made, and with over 130 million (at the time) sold, the PS3 will have even more success!” I imagine he didn’t stop there either, with his confidence beaming, and Sony wanting to once again put out the most compelling machine they’d ever forged, all sorts of technology must have been considered, and although price would’ve definitely be an issue, Sony wasn’t afraid.

“They’ll buy it!” I could hear Hirai siding with Kutaragi, “it’s PlayStation, damn it! Look at how many PS2s were sold!” Things were getting a bit touchy though, price range had shot up from $399 to now $599 and some execs were perturbed. “Are we showing too much confidence in our userbase?” Another thought to himself, yet he failed to utter the thing, since the two big dogs in the room held all the say. So Blu-Ray was implemented, OtherOS, Cell Technology – and the final product was a massive technological accomplishment, but one that came with a great price.

PS3 Arrives On Market

- Launch-a-thon

In 2006 PS3 launched around the world and initial sales were indeed good, but with Microsoft launching the Xbox 360 one year earlier in 2005, as the launch hype died down, sales of the console started to pale in comparison to that of the Xbox 360 and Microsoft was bragging big words, while Sony was stuck in a rot. They couldn’t do much because the console was very expensive compared to the competition, and one should never forget about the Wii’s impact.

So it was hard times for the hardware giant. You remember the talk, don’t you? Would PS3 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. Sony tried hard to spread the message “It Only Does Everything” but most gamers didn’t want the other features…. they wanted to play games! Sony couldn’t break through. “Damn it! I told you all never put too much trust in the consumer,” barked a no name exec who tried adding a dose of reality in the heads of Ken Kutaragi and Kaz Hirai while PS3 discussions were happening before the console launched, but they didn’t listen to him.

“Ken Kutaragi should step down immediately!”

Silence. Sony was looking for someone to blame, someone to fire – the scapegoat, and with Kutaragi being the father of PlayStation, having more say than anyone else in its development, he fell. He’d said some damning things too: Gamers should find “second jobs”, he once argued, to him, PS3 is worth it. He also wrote off Microsoft’s Xbox 360 as a waste of time, and felt it’d be no competition. Big mistake.

Doom and gloom articles from media outlets persisted. In fact it got so bad that Sony fans formed a group called the SDF or Sony Defense Force to troll websites and protect the PS3 from bad press. Something made for the movies. But that was then.

GamesCom 2009

So from 2006 until 2009, people cried about the PS3′s price, but then came GamesCom 2009. There, Sony unveiled the redesigned PS3 known as PS3 Slim, and gave the console and PlayStation brand a fresh, slick look. The press went bunkers over the news, and sales of the console started to pick up, outselling 360 in all regions bar the U.S. Things started to get interesting, PS3 sales were skyrocketing and exclusive after exclusive was being released. PSN grew even bigger and ostensibly the playing field was leveled. That, however, wouldn’t last long…

Microsoft Unveils Xbox 360 Slim At E3 2010

Microsoft has tried its best to stay ahead of Sony because it knows the company from the land of the rising sun has more experience in the industry, and a more recognizable brand. So staying ahead is crucial, and once Redmond saw the PS3′s sudden rise, it had to take action. Last year at E3, Microsoft showed off for the first time Xbox 360 Slim and long story short, the console’s been sailing, sales-wise, especially in the U.S. It’s beating all systems in the U.S. and has grown a massive install base there, then last year November Kinect was released, and the motion control device went on to become the fastest selling electronic device in history, carrying Xbox 360 along for the ride. But PS3 persisted.

Install Base And Exclusives

While Xbox 360 shined bright in the U.S., PS3 was shining bright all over the world, especially Japan and Europe. Now, the console base of PS3 matches the Xbox 360′s, with both topping 50 million units sold. PS3 is doing fantastic. And we should not forget the great amount of exclusives the console has. I’m not going to name the vast amount of them because we’re well aware, but they’ve help Sony sell the PS3 as the go-to for great gaming, it seemed for a while that most news was about Sony games… Again, the giant was on a roll….and that was just recently. Then this happened:

George Hotz Hacks PS3, Exposes Root Key. Sony Sues, Settle For Permanent Injunction – Hacktivist Group Anonymous Arrives….

That’s basically what happened. Famed iPhone Jailbreaker George (Geohot) Hotz cracked the PlayStation 3, exposed its root key for the world to see, a move that, if left unfixed, would cause rampant piracy on the console – so Sony took action. It was a bitter battle, but in the end, Sony got Hotz to settle, with courts granting the firm a permanent injunction against him, meaning he wouldn’t tether with any of Sony’s products ever again.

Hacktivist group Anonymous thought Sony went too far, and since then, they’ve been trying hard to do damage to the company….Sony just can’t seem to catch a break!

They tried DDOS, a technique which floods your URL with unwanted traffic causing it to slow to a crawl. That didn’t work as Sony employed an outside firm to block those attacks. Then they tried Sony store sit-in around the globe but that also flopped, and one protester ended up purchasing a Sony Bravia Telly. But things have gotten worse: Although the group’s not claiming responsibility for the latest PSN attacks, suspicions run deep, and as PSN has suffered its most severe attack since launch, we’re left wondering what’s really going on…..

No access, errors – sometimes even the PlayStation Blogs are unaccessible. Where will this go next? We don’t know for sure, but there’s one thing that’s for sure, For Sony, it’s been Agony.

When it rains, it pours…..

Different strokes for different folks, so while in the U.S. the Wii and Xbox 360 lead the PS3 in install base, France is a totally different ball game.

Sony’s just announced that since it launched PS3 in France in March of 2007, the console’s sold more than 3 million units there.

According to the Gfk research group, Microsoft’s shipped 2.3 million units in the French speaking country.

The group also says software for PS3 has brought in €418 million, equal to 8 million units sold, compared to €337 million for Wii and €239 million for Xbox 360.

Thanks, Gamekyo.

Xbox 360, last month, sold 535,000 units making it the console’s “biggest non-holiday month of sales in the U.S. in the history of the Xbox,” according to NPD. This has prompted analyst Doug Creutz to believe that in the next 11 months, Microsoft’s console will beat Nintendo’s install base in America.

“This illustrates the significant shift that has gone on over the last year in the console space,” Creutz said. “The Wii was outselling the 360 and PlayStation 3 combined on a trailing twelve months (TTM) basis as recently as January 2010, and was outselling the 360 alone by 2:1 on a TTM basis in December 2009 and 1.5:1 in October 2010.”

“Over the last three years, TTM total US Xbox 360/PlayStation 3/Wii hardware unit sales have remained relatively consistent in the 17-19 million unit range (18.2 million as of February), so this does represent a share shift as opposed to just a decline for the Wii.

We believe the significant shift in hardware sales towards HD consoles is a positive ongoing development for the US publishers, who earn the majority of their sales on the Xbox 360/PlayStation 3.”

It’s definitely possible, especially with the advent of Kinect, and 360s being bundled with the motion sensing camera. Microsoft’s really done well this gen with the Xbox 360.

Via GI.biz

Ah, forget all the North America victories Microsoft’s experiencing with its Xbox 360 when it comes to sales and install base; it’s the world that matters according to the analysts. And considering the world is a big place, DFC Intelligence’s David Cole believes Sony’s PS3 has the advantage and will soon overtake the Xbox 360′s lead for good.

Smoking tires and all.

That’s what he told Industry Gamers recently, citing a lack of diversity from the Xbox 360 in appealing to “a broader international market”. According to Cole, Microsoft probably should have targeted the European market a bit more heavily.

“We have been forecasting for the past 3 years that the PS3 would catch up to the 360 by 2011. I think the big issue is that the 360 has been primarily the platform for FPS games and has lacked the diversity to appeal to a broader international market…mainly Japan and Europe where Sony is very strong. The Xbox 360 was just much stronger in North America than it was globally,” he said.

“The main issue I think is Sony (and also Nintendo) being so strong in Europe and Japan. I think in terms of doing things differently they should probably have focused more on Europe and just given up on Japan. They would have had a better chance in Europe.”

And what of Kinect, will it be popular enough to strain Sony’s momentum? Cole doesn’t think so, the company from the land of the rising sun’s push forward is simply to strong.

“Going forward I don’t know if there is much they can do. They will try with the Kinect but I don’t see that working. I think the PS3 will soon pass the 360 for good,” said the analyst.

Cole’s not too forgiving of Microsoft either. While other analysts gave Redmond credit for being fairly new to the gaming industry compared to Sony and Nintendo, he was rather blunt.

Here’s Michael Pachter of Wedbush Morgan:

“What did people expect? They have a huge advantage in Japan, have been roughly equal in Europe and pretty far behind in the U.S. It is only a matter of time before the lead in Japan erodes the lead in the U.S. I would NOT say that anything has gone ‘wrong.’ At the beginning of the cycle, I thought PS3 would win because of greater loyalty in Europe and a stacked deck in Japan.

Nintendo surprised me greatly with their phenomenal sales, and after a year or two, I said that I thought Sony would still finish second due to the Japanese advantage. I now think that with Kinect and a pricing advantage, Microsoft might hold them off, and I certainly don’t think that Microsoft has done anything wrong at all.”

Here’s EEDAR’s Jesse Divnich:

“Nothing went wrong. The achievements of the Xbox 360 are incredible,” he uttered. “It went from fighting for a distant second place last generation to now being considered one of the healthiest platforms to develop for. The PlayStation 2 outsold the Xbox nearly 7 to 1 in Europe and nearly 40 to 1 in Japan. In 2010, PlayStation 3 is outselling the Xbox 360 a tad over 1 to 1 in Europe and only about 10 to 1 in Japan.

For a company that entered the video game space late, going up against two competitors with decades of loyal gamers, Microsoft should be proud of their accomplishments. Any faults to point out would simply be nitpicking.”

Interesting thoughts. Yours?

Can it really happen? Well, it’s almost done, so by next year, EEDAR analyst Jesse Divnich believes Sony’s black beast will finally overtake the Xbox 360′s install base worldwide.

When asked by IG whether he thought PS3 would remain in third place until this generation was up, the analyst said:

“Worldwide, Sony will eventually take the lead from Microsoft, likely by the end of 2012. North America is a tougher challenge, and as we have seen lately Microsoft’s lead is widening.”

As for North America, Divnich is a bit more skeptical, especially since the Xbox 360 has an 11 million units lead in America over the PS3. He says it might happen in “2014″, or “2016″. By then, though, we’ll be messing with newer toys.

“I don’t know if the PlayStation 3 will ever overtake the Xbox 360 in North America,” he said. “Maybe 2014? 2016? We do know the PlayStation 3 has incredible long-term value as a Blu-ray player, much like the PlayStation 2 did as a DVD player, but with strong competition coming from the digital front, one has to wonder if the PlayStation 3 will receive long retail legs like its predecessor did.”

“Unlike previous generations, I don’t foresee third place being a “doom and gloom” scenario. Even with it being in third place now the PlayStation 3 is an incredibly healthy platform.

It all comes down to the active installed base; a company can sell as many consoles as it wishes, but if consumers are not actively buying games, they are not part of the installed base’s economic ecosystem. The PlayStation 3 doesn’t have the same problem the GameCube had with its third place finish last generation.”

Interesting. But in the end, it’s the games that matter. Just bring great experiences and we’ll be fine.

I might have to eat my own words.

Sony latest next gen console, PS3, came on the market one year later than that of Microsoft, the Xbox 360. The latter had garnered a lead that was once 9 million units above the PS3 in global install base. We’re in the sixth year of this, the seventh generation of consoles, about the time makers of the devices unveil their latest products.

But you now have Microsoft fully concentrated on Kinect, and Sony’s recently released in own motion control device dubbed Move. Only Nintendo will probably show off new hardware at next year’s E3, giving themselves a headstart.

So looking at the situation now, I guess the article should read: The Reasons Why PS3 Will Beat The 360′s Install Base This Generation.

It’s already almost there.

Sony’s just released sales data for Q2 proving how strong the PS brand has grown in that period. In fact, sales for PS3 has been so strong, the giant reported it had sold nearly six million units by the end of September.

PS3′s install base now stands at 41.6 million.

Microsoft released some strong numbers too, and earlier reports were claiming over 44 million Xbox 360 units had been sold globally. But that’s not right, says Xbox front man Major Nelson, only 42 million consoles have been sold.

If Major Nelson’s right, and we believe he is, this means Xbox 360 only leads the PS3 in consoles sold by 400,000; that’s not much considering the headstart the aforesaid console enjoyed.

So will the PS3 really overtake the Xbox 360′s base? Yes. It will. It’s only a matter of when, not if.

Obviously, some folks have nothing else to do? Either that or Gears of War 3′s already on the network. Oh wait, Halo: Reach.

According to Microsoft’s Major Nelson, when combined, more than a billion hours of log time is spent on the Xbox Live service a month.

Redmond’s released some really amazing Xbox 360 numbers via the Major’s blog, telling the tale of how many Xbox 360s are really out there, how much of an increase in movie watching on the service there has been, and lots more.

Here’s the full stats quencher:

- There are 42 million consoles sold in 35 countries.
In the last year alone there has been an 157 percent increase in the time spent watching movies and television on Xbox.

- 42 percent of Xbox Live Gold members in the US are watching an average of an hour of television and movies on their Xbox, every single day or more than 30 hours of digitally distributed television and movies a month.

- The 25 million members of Xbox Live around the world are each spending more than 30 hours per month on the service – that means cumulatively Xbox Live members are now logging more than one billion hours a month on the service.

- Access to Xbox Live is expanding from 26 countries to 35 this November.

Just awesome. Also, expect that number to rise when Kinect is released in the next few days, Microsoft’s been on an advertising run recently.

Sometimes I like to think that PS2 has repeated itself with PS3, just looking at the system’s rough and almost suicidal entrance into this, the eighth generation of consoles, brings back vivid memories of its older sibling.

But can the PS3 reign supreme, overtaking the Xbox 360′s install base before this generation is out? I think not, But Europe boss Jens Uwe Intat disagrees with me completely — for him, “we could certainly see Sony come back”.

“We could certainly see Sony come back – in the U.K. it’s still a head-to-head competition between PlayStation and Xbox, but on the continent Sony is traditionally stronger than Microsoft,” he told MCV. “But we’re very happy to watch the competition, because as long as they’re competing to get more consumers in, there are more people we can sell games to. It’s interesting to see that both companies embarking on a slightly different path when it comes to controlling games. Kinect and Move are both very interesting ideas.”

What do you guys think? Should Sony set its focus on passing the Xbox 360 in terms of consoles sold? After all, the giant has always stressed a 10yr life cycle. Either ways, it don’t matter, the PS3′s enjoying unstoppable momentum now, especially with the exclusive lineup that’s second to none.

Share your thoughts.

Sony’s PS3′s been slightly outselling the Xbox 360 in worldwide markets some reports suggest, but nonetheless, Microsoft’s Xbox 360 has kept things close. From the onset, it was Microsoft’s goal to beat the PS3 install base in install base, and we imagine Redmond will do anything to accomplish said goal.

Wedbush Morgan Securities analyst, Michael Pachter, agrees. He believes if PS3′s outperforming the 360 by a wide margin, Microsoft will swiftly cut its price to keep up, and even if the PS3 has better value, “the 360 has kept pace with the new design and built-in Wi-Fi.”

“I haven’t seen any reports that suggest that the PS3 is currently outselling the 360 by a meaningful margin,” Pachter told Industry Gamers, “and the 360 has a lead of over 5 million units.”

“It appears that they are running pretty close to one another in annual sales, and if Sony begins to gain ground, I think Microsoft will cut price. This holiday could be the catalyst, as Sony intends to market the heck out of Move, so if Sony keeps pace with Microsoft in the U.S. and gains ground in Europe and Japan, I expect a price cut for the 360 in early Spring.

To answer your question, I don’t think Microsoft did much wrong, but the PS3 is a better value with built-in Blu-ray and Wi-Fi, and the 360 has kept pace with the new design and built-in Wi-Fi.”

Like I’ve already said, the PS3 will end up in last place (install base wise) this console generation, the main reason being Microsoft will do anything to keep its lead, anything.

From the original PlayStation to now, Sony’s been bringing the fun and innovation. They’ve been in this industry for over fifteen years, and while there, have literally lead the pack; forcing the others to follow. Often criticized but never cast aside, many times ridiculed but in the end, always having the last laugh, the company from the land of the rising sun has stood its ground.

Undeterred, Sony allowed nothing or no one to sway its resolve. Not analysts like Michael Pachter, or journalists with contrary motives. Nothing. No one.

At this year’s Gamescom, Sony once again brought the big guns. The announcements were so awesome and so many, that all I can say right now is Amen, Sony.

Last year, the hardware queen ruled the day by unveiling the PS3 Slim at the show, sending sales of the console through the roof causing shortages across the US and the world. Later, Uncharted 2 landed on the scene and overtime became the PS3′s fastest selling first party game. But it didn’t stop there.

2010 came and the momentum continued, sales remained high, exclusive titles were still being released and barriers were being destroyed as developers got a better understanding of the console.

We’re still in August of 2010, and Sony’s still running the show. I’m sure Microsoft and even Nintendo would love to be in its place now, in terms of exclusives and must have IPs. Think Killzone 3, Uncharted 2, inFamous 2, LittleBigPlanet 2, Gran Turismo 5, Resistance 3, The Last Guardian, God of War III just to name the notables.

Now, one by one, just like karma, Xbox 360 exclusive games are making their way onto the PS3. Bioshock was just the beginning. Mass Effect has jumped ship and you should expect Left 4 Dead and even Splinter Cell to make their debut on the black console.

It seems to me that Sony has followed the same strategy since the original PlayStation. If you take a trip down memory lane, you’ll come to realize that what the hardware giant went through in the early days of the PS3, isn’t unique at all, rather, this has been happening like De Javu over the years.

But like a woman who’s faith is unshakable, Sony held its stance.

Now, Microsoft’s scrambling to find new ways to keep its momentum steaming. In the early days of the Xbox 360′s life, Redmond literally bought exclusives away from Sony to make the 360 more attractive; and it worked for a short time. Five years later, though, the software company is hinging everything on a motion control peripheral, hoping to gain momentum from a market Nintendo has dominated for years. Will the strategy work? Many think it won’t, instead the craze will come and go since people are already familiar with the Wii and there’s talk that Nintendo’s prepping for yet another console release which, we’re sure, will support even a better technology than what’s currently on the market.

The PS3′s only now in its prime. Developers have yet to push the console to its limits and with each passing year, the games get better and better. The install base is rapidly rising, obliterating the big lead Microsoft held for years. And every exclusive title sells millions.

I’ll liken the situation to a Pastor preaching at a Church. At first when he starts to preach, the word coming fourth seems foreign, and the congregation finds it hard to swallow. “Just allow me to finish“. As he continues, the saints begin to see, albeit barely, where he’s taking the sermon. He preaches, sweats blood and even snots as he passionately relays the good news.

Overtime, the congregation realizes that, indeed, “his making sense“! And like a man who’s been accused wrongly and heard the emancipating verdict, altogether they yell “Amen!”

So too, was Sony’s situation. After years of following a path many find unpopular, people are suddenly believers. Just look around gaming’s web for a day, and at the end of it, you’ll notice in forums and comments section everywhere, the same song is sung in unison:

Amen, Sony.

I’m sure you’re familiar with this article. And you must be saying, ‘this guy doesn’t know what he’s talking about’, right? Well, I still stand by my estimates, especially if Microsoft and Nintendo decide to launch their next systems in 2012.

However, even if they did, there is still a way for Sony to win in terms of console install base in this gaming generation. To do that, however, it’d take tireless effort on the giant’s part.

I’m talking under table deals, pulling strings, and buying off executives. In other words, the company from the land of the rising sun with have to play “dirty” if it hopes to breakthrough.

If what I’m about to explain happens, even Nintendo will be left in the PS3′s dust.

China.

With over 1.3 billion people, China is now the ripest market for videogame consoles to launch. The task of launching there has proven impossible, though. Believe me, the three giants have been trying to launch their respective consoles in China for many years now.

Consoles are banned in China because “the government thought that was the best way to protect Chinese youth from wasting their minds on video games, after a parental outcry,” a Niko Partners researcher told Kotaku while the site was conducting an investigation.

The ban has been rendered useless, however, because one year later, “online gaming exploded, and the market size hit $US100 million.”

So what’s a giant to do? With over 1.3 billion people, many of them young and employed, Sony could easily sell 100 million consoles in the country. They must find a way to infiltrate the government. At least Microsoft’s trying.

Executive Zhang Yaqin told the Shanghai Daily (subscription only) that the company still hopes to receive approval to sell the Xbox 360 in country, however “it all depends on the government.”

But I believe it can happen. You know the saying: money answers all things.

If one has enough of it, and is persistent enough, they’ll get through with whatever it is they’re pursuing. And the last time I checked, Sony wasn’t lacking. The returns would do wonders for them, too. Just think about it: tens of millions of consoles flying off Chinese store shelves would ricochet around the company and spread into all its departments. Nintendo and Microsoft wouldn’t be able to keep up. Software would also see a massive boost.

It’s a long short, I know. But one that’s more than worth the effort.

share your thoughts.

The Xbox 360 launched over five years ago, and although many didn’t expect it to garner as much popularity as any of Sony’s brands, it did. Microsoft apparently knew what they were doing when they decided to launch first, and while Sony was yet beaming with overconfidence over the PS2′s success, they thought nothing MS could do would quench the PS3′s momentum when it launched a year later.

I’m not going to beat a dead horse here, but Sony lapsed in the early years of this generation. Microsoft on the other hand has had success in many departments: some of the best selling games are on the Xbox 360, including the Halo franchise and Gears of war, the best online gaming service in Xbox Live, and an install base that now stands at over 3 million more than that of PS3.

When the numbers are broken down between the markets, the lead becomes even more apparent, especially in the US, where the Xbox leads the PS3 by over 8 million consoles. That’s very important, because games sell more copies in the US than anywhere else.

That’s great for MS, but what’s even more intriguing is the amount of PS2 owners that have ignored the PS3 in favor of an Xbox 360.

Microsoft has said in the past that more than 50% of 360 owners didn’t have Xbox. Microsoft’s General Manager of the Games Developer Group Chris Satchell point out to GamesIndustry.biz in 2007 that more than 50% of Xbox 360 owners didn’t pick up an original Xbox. “So there are lots of new people coming in, which kind of surprises you. What we’re actually finding is that our customer set is broadening, which we think is important.”

But that was in 2007, has the trend continued? Let’s take a look.

As of December 2008, Sony had sold 50 million PS2′s in the United States alone. We’re now in 2010, half of it, assuming that the giant sold at least 10 million PS2s in the US during that time, would bring the total to 60 million. On the other hand, the Xbox 360 has sold 18.6 million units in the US as of December 31, 2009, and the PS3 over 11 million as of April 2010.

Looking at Europe, the story’s different, however, taking into account that there were only 6 million Xboxs in said region stands as a testament of how much Xbox 360 has eaten into the PS2′s base.

As of May 2008, Sony had sold over 48 million PS2s in Europe, if we add 2 years, and about 7 million more units, that number rises to 55 million PS2 units. Remember, there were about 6 million Xboxs sold in Europe over its lifetime, compared to Sony’s 55 million PS2s.

Back in 2008, when Microsoft dropped the price of the Xbox 360 to $199, Aaron Greenberg told MTV Multiplayer that his company’s next target.

He said: “Tens of millions of those guys haven’t upgraded yet. A lot of those guys didn’t pay more than $200 bucks for their system and now we’re speaking to those guys, as well. I think if you talk about the PS2 owners we have a couple things to our advantage.

One is that we have all the great games they bought the PS2 for, right? We have ‘Madden,’ if they’re RPG fans we have that, we have ‘Grand Theft Auto’ and even exclusive content that’s coming, we have great racing games — we have games from all the genres and sports games are selling best on our system.”

Has the strategy paid off? It started paying off way before Microsoft lowered the price of the Xbox 360.

For a very long time, the Xbox 360 has been eating into the PS2′s base as the PS3 remained too expensive for some and didn’t have many games to play.

Things have changed in recent years, however, with the PS3 now outselling the Xbox 360 in all but two markets: the US and UK, which, by the way, are two of the most important markets in gaming.

To conclude, since most of the people who bought Xbox 360s didn’t own the original Xbox, we can say that most of the 8 million console lead that Microsoft has in the US upgraded from PS2. Same can be said for the over 5 million Xbox 360s in the UK and the 12 million plus in Europe.

That’s over 25 million consoles, even if we subtracted 5 million, it’d still equal about half of the console’s install base.

Not a bad accomplishment by Microsoft. Not bad at all.

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.

Sony has been on an upward move ever since the redesigned PS3 slim, and a cheaper price point were announced last year at GamesCom in Cologne Germany. Sales have been through the roof, first party titles, such as Uncharted 2 has been leading the innovative path, with the future looking even brighter.

Many analysts have predicted that in the not to distant future, PS3′s global install base will overtake that of the Xbox 360. That’s something Sony heartily agrees with.

“We certainly hope that’s going to be the case,” Sony Worldwide Studios VP Scott Rohde replied Industry Gamers when asked for his take on the analysts predictions.

“We are confident that we have a huge amount of momentum and we see that from all of our partners in the industry at retail and third party partners. The buzz is about where the PS3 is headed in the future, and I truly believe that future-proof message is a big part of that.

“A lot of developers, a lot of publishers out there are saying, “Wow, we like what the Move is offering, we like that you guys are on the cutting edge of 3D, so we’re going to get involved now, because when the PS3 really hits its stride we want to be there with it.”

He added: “So we’re very confident that we’re in a very good spot right now. And our partners are echoing that sentiment back to us.”