Sony are currently in a predicament with the PlayStation 3.
It is evident that they are still unable to turn a profit from the console.
The PS3 has been at its current price level for a long time and despite intense pressure Sony are still reluctant to lower the price.
Despite the argument that you get a Blu-ray player included with the PS3 the package is starting to look way overpriced.
This is even more the case when a separate Blu-ray disc player can be had for less than $150.
The PS3 gives you some extras that the competition charge for such as integrated Wi-Fi and free online gaming but not every console user requires such features.
Adding to the lack of value presented by the PS3, the continual rumours of a imminent price cut are sure to keep prospective buyers from buying a PS3 in the near future.
Sony therefore has to either reduce the price to attract new customers but loose money in the process, or alternatively leave the price as it is and loose a minimum amount on each console.
Although the latter strategy would see lower sales and hence a smaller total loss, the risk is that they may loose customers to their main rival the Xbox 360.
This could be too much of a blow to Sony as it would lead to customers 'switching sides' to the Microsoft product and once this has occurred they are notoriously difficult to win back.
Further to the above problems, the biggest problem for Sony maybe just around the corner.
This problem could take the shape of a new Xbox games console.
Such a release would surely be the worst possible news for the Sony Corporation.
The excitement of a new console and the surge in sales that this leads to would not only lure consumers away from the PlayStation brand but would also cement the current group of Xbox 360 gamers firmly in Microsoft's camp.
Microsoft would do well to learn from Sony's mistake and include full backwards compatibility with previous Xbox games to ensure no discontent amongst long-time fans.
Such a move by Microsoft may see a fall in sales of PS3 games and result in developers ceasing development of Sony based to focus their efforts on the new Microsoft console.
The fact that the PS3 is difficult to develop for will only accelerate the potential for this to happen.
There is no hard information about a new console from Microsoft, but should such a product materialize within the next 20 months Microsoft and could cause permanent damage to Sony's gaming division and the PlayStation brand.
This would surely be a blow for consumers as a Microsoft monopoly on the games console market (as they have with the operating system market) would not be a good thing.
Let's hope for the consumers sake that Sony's gaming division manages to turn their fortunes around.
It is evident that they are still unable to turn a profit from the console.
The PS3 has been at its current price level for a long time and despite intense pressure Sony are still reluctant to lower the price.
Despite the argument that you get a Blu-ray player included with the PS3 the package is starting to look way overpriced.
This is even more the case when a separate Blu-ray disc player can be had for less than $150.
The PS3 gives you some extras that the competition charge for such as integrated Wi-Fi and free online gaming but not every console user requires such features.
Adding to the lack of value presented by the PS3, the continual rumours of a imminent price cut are sure to keep prospective buyers from buying a PS3 in the near future.
Sony therefore has to either reduce the price to attract new customers but loose money in the process, or alternatively leave the price as it is and loose a minimum amount on each console.
Although the latter strategy would see lower sales and hence a smaller total loss, the risk is that they may loose customers to their main rival the Xbox 360.
This could be too much of a blow to Sony as it would lead to customers 'switching sides' to the Microsoft product and once this has occurred they are notoriously difficult to win back.
Further to the above problems, the biggest problem for Sony maybe just around the corner.
This problem could take the shape of a new Xbox games console.
Such a release would surely be the worst possible news for the Sony Corporation.
The excitement of a new console and the surge in sales that this leads to would not only lure consumers away from the PlayStation brand but would also cement the current group of Xbox 360 gamers firmly in Microsoft's camp.
Microsoft would do well to learn from Sony's mistake and include full backwards compatibility with previous Xbox games to ensure no discontent amongst long-time fans.
Such a move by Microsoft may see a fall in sales of PS3 games and result in developers ceasing development of Sony based to focus their efforts on the new Microsoft console.
The fact that the PS3 is difficult to develop for will only accelerate the potential for this to happen.
There is no hard information about a new console from Microsoft, but should such a product materialize within the next 20 months Microsoft and could cause permanent damage to Sony's gaming division and the PlayStation brand.
This would surely be a blow for consumers as a Microsoft monopoly on the games console market (as they have with the operating system market) would not be a good thing.
Let's hope for the consumers sake that Sony's gaming division manages to turn their fortunes around.
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