Sunday, December 7, 2008

What happened to the Sony PS3

As a lot of people who follow the gaming console industry know, a couple of years ago, there was a duet between 2 of the major contenders - the Sony PS3 and Microsoft's XboX 360 (during their development, the entire discussion was about which of these would be the winner). And then there was a sudden winner, Nintendo was the surprise leader, with its Wii gaming platform selling much higher than the other platforms. Both the PS3 and the XboX are much more powerful in terms of processing speed and raw power, but the incredible user-interactivity built into the Wii made it much more attractive to people, and it started out-selling the others within a short time. And no matter what Sony and Microsoft are trying, they are not able to compete with Nintendo, even with price cuts and a lot more marketing.
The latest selling season further amplifies this trend, with the Wii pulling ahead of its competitors, way ahead:

Sony's PS3 is dying on the shelves. Alone among the three major videogame consoles, sales of the PS3 are down about 19% from November 2007, according to the latest stats from the NPD Group. Sony was only able to sell 378,000 PS3s this November, compared to 466,000 last year.
And the problem for Sony isn't the recession, it's the PS3. Microsoft (MSFT) put up respectable numbers with its Xbox 360, selling 836,000 units vs 777,000 in November 2007. And Nintendo's (NTDOY) Wii continues to dominate the market, more than doubling sales from 981,000 to 2.04 million.

Sony is stuck with its initial plan to build a powerhouse, since that (along with a Blu-Ray drive) makes the PS3 much more expensive; in addition, since the Wii is much ahead, there aren't enough developers making quality games for the PS3 - causing further problems.