NEW YORK: As the video game industry waits for the holiday season with the planned launch of Sony Corporation’s PlayStation 3 to take place by then, an analysts firm believes the high price of the gaming device could become counter-productive for the company.
Sony is handing its competitors a golden opportunity with its high price for PlayStation 3, says David Cole, president of DFC Intelligence, a market research firm focused on video game industry. “People in gaming and game publishing are drastically less excited about PlayStation 3 than they were a year ago, and also a few months back, and competition is looking much stronger,�? said Cole.
He said there is a lot of anticipation about PS3, but not a lot of software coming out over the next few months that would excite consumers. And the price point is staggering.
A Sony spokesperson justified the pricing of the device for the conveniences it offers, including the Cell chip and Blu-ray.
The company had announced in May that the console will be available in two configurations, starting at $499. This price is $200 more than Microsoft’s entry level Xbox 360. Even the other product that is waiting to be launched, Nintendo’s Wii, is expected to be priced lower.
Analysts believe the first lot of the consoles that come into the market will sell out, because of the novelty involved, but the high price could reduce broader interest, especially in the harsh economic conditions that prevail in the U.S.
Cole thinks PlayStation 3 could be beaten by Wii and may even lag behind Xbox 360. In his 600-page report that has just been released, Cole said the culprits are the console’s high price and Sony’s shifting attitude to the device, which its creator Ken Kutaragi had described as a PC and not a games console.
Kutaragi had said PlayStation 3 is capable of upgrade parts, particularly the removable hard disk. He had even compared it with Apple, which price its products higher than ordinary computers even if these use the same parts.
If the company continues the strategy of positioning the device as something for the gaming elite, Cole says it may just do half of what its predecessor did.
Cole thinks that Nintendo with its Wii is the company with the biggest opportunity as its pricing will be lower and it has a better marketing. The low pricing and mass market message give Nintendo an opportunity to make its console the market leader in all major regions around the world, said Cole.
Microsoft too may benefit but Cole has apprehension about the Xbox 360’s performance in Europe.
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