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High Price May Turn Off Consumers to Playstation 3 Despite Blu-ray  

post #1 of 203
Thread Starter 
This was just posted on High-Def Digest:


Price May Turn Off Consumers to Playstation 3 Despite Blu-ray, Says Analyst

Mon Jul 10, 2006 at 03:17 AM ET

Tags: High-Def DVD Gaming, PlayStation 3, Sony (all tags)
It's more bad buzz for Sony's PlayStation 3, with a leading industry analyst warning that despite the inclusion of Blu-ray the unit's high price may cause consumers to choose another next-gen console, reports Home Media Retailing.

That's according to leading videogame research firm DFC Intelligence, whose preliminary research hints that by courting the high-end consumer with premium features and a list price as high as $600, Sony could be risking its current leadership position in the gaming market if consumers pass over the PlayStation 3 this holiday season for the cheaper Microsoft Xbox 360 and Nintendo Wii consoles.

"Sony's clear strength is brand strength and current market position... but the glaring weakness of the PlayStation 3 is price," David Cole, president of DFC Intelligence, told HMR. "Of course, Sony would like to point to the hardware horsepower and extra features like Blu-ray -- the problem is that is only one factor in our forecasting matrix."

Cole said the report cites the fact that the Xbox 360 has Xbox Live and Xbox Marketplace and Wii has the unique motion-sensor controllers, which could leave the PS3 without the elusive "wow factor" despite being driven by Blu-ray.

"Sony has done very little to justify why the system is worth a premium price for consumers who don't care about raw hardware performance and are not hardcore audio/visual consumers," Cole warned. "Of course, there is a market for high-end products, but it is a very different consumer type and not nearly as big as the blue-collar mass market."

Analyst: Sony From First to Worst? [Home Media Retailing]

This is the link: http://www.highdefdigest.com/news/sh...ys_Analyst/129 :eek:
post #2 of 203
Most people that I know who have a PS2 balk at the price of the PS3. I was the first person to tell some of them the price, and they were totally shocked. They told me have no intention of shelling out $600, when they can get a Wii or Xbox 360 for half that.
post #3 of 203
Same here and most people I know dont care about BD in a video game system and the price is too high. The people on these boards will buy PS3 for the BD but that is not the target market or is it?
post #4 of 203
It's funny. Sony thought what a great marketing strategy it was to get BD into millions of homes of people buying PS3 for the games (the trojan horse strategy). Since the PS3 is overpriced compared to other gaming systems, and since stand-alone BD players are overpriced compared to HD-DVD, most will buy the PS3 for BD, which ends up 1) reducing overall sales dramatically (more people want a gaming console than a BD player), 2) increasing their losses (gaming consoles tend to lose money, which the company makes up with sales of the games, but if people are buying it for BD, there won't be the games sales), and 3) reducing sales of more expensive stand-alone BD players, including their own, which again loses them money. If PS3 sales are sluggish, this could end up being one of the worst marketing decisions in history. IMO, they should have offered a $400 PS3 without the BD capabilities.
post #5 of 203
Quote:
If PS3 sales are slugginsh, this could end up being one of the worst marketing decisions in history.
The situation will be even worse if the BD movie playback performance is mediocre. I still have trouble believing it will be as good as a first rate standalone.
post #6 of 203
I have a friend that has PS2 and Xbox and when he heard the price of the PS3 he said, " No way in HELL I'm paying that price, Sony can...." I'll stop there as I may get canned from these forums. :D

...Angelo
post #7 of 203
I'm buying, one of the best CE values in a long time. I can only hope I'm lucky enough to grab one at launch.
post #8 of 203
Quote:
Originally Posted by briankmonkey
I'm buying, one of the best CE values in a long time. I can only hope I'm lucky enough to grab one at launch.
If not, i'm sure you can get one off ebay for $1500
post #9 of 203
Thread Starter 
Quote:
Originally Posted by briankmonkey
I'm buying, one of the best CE values in a long time. I can only hope I'm lucky enough to grab one at launch.
More grease to your elbows.
post #10 of 203
Quote:
Originally Posted by bullgates
If not, i'm sure you can get one off ebay for $1500
yeah, no kidding. It's going to be one crazy time. MSRP for me, if not I'll wait.
post #11 of 203
Quote:
Originally Posted by briankmonkey
yeah, no kidding. It's going to be one crazy time. MSRP for me, if not I'll wait.
IOts not that big of a bargain. Have you seen the PS3 games??? Most have yet to even come close to current 360 stuff, none are going to top halo 3 or gears of war. Your buying the wrong consoles imo. Wii also looks to be a better game console, some of their launch titles are console sellers imo. Dont have any of those for sony on the horizon for a long time.
post #12 of 203
that writer has no idea what he's talking about. doesn't he realize you're paying for potential? duh. ;)
post #13 of 203
Don't forget the Wii will be no more than $250. So that will be less than half the price of the PS3, and will probably be bundled with some kind of game.
post #14 of 203
Quote:
Originally Posted by gatti-man
IOts not that big of a bargain. Have you seen the PS3 games??? Most have yet to even come close to current 360 stuff, none are going to top halo 3 or gears of war. Your buying the wrong consoles imo. Wii also looks to be a better game console, some of their launch titles are console sellers imo. Dont have any of those for sony on the horizon for a long time.
I have a xbox 360 and 0 games for it. I bought it for SF2 online and gears of war. Both arent out, while SF2 was promised MONTHS ago. All the other games are crap other then perhaps Battlefield, but i only play the free online demo and that is more then my fill for the game without getting bored. I still play PS2 way more then the 360. Sony just has all the top titles and franchises. And GTA is a joke in my eyes, i never liked a single one of them, so thats no skin off of my back.

you have to remember, most japanese developers dont like the xbox 360. And the Wii is a peon in the powerhouse dept. So they can either make crappy looking games with awkward controls (Wii) or go with the PS3. Its a no brainer. All the top tier next gen games WILL be on ps3, other then Gears Of War, but im almost posotive it will be ported over to ps3 at some point since epic wrote the unreal engine for ps3 already.
post #15 of 203
Quote:
Originally Posted by blitz6speed
I have a xbox 360 and 0 games for it. I bought it for SF2 online and gears of war. Both arent out, while SF2 was promised MONTHS ago. All the other games are crap other then perhaps Battlefield, but i only play the free online demo and that is more then my fill for the game without getting bored. I still play PS2 way more then the 360. Sony just has all the top titles and franchises. And GTA is a joke in my eyes, i never liked a single one of them, so thats no skin off of my back.

you have to remember, most japanese developers dont like the xbox 360. And the Wii is a peon in the powerhouse dept. So they can either make crappy looking games with awkward controls (Wii) or go with the PS3. Its a no brainer. All the top tier next gen games WILL be on ps3, other then Gears Of War, but im almost posotive it will be ported over to ps3 at some point since epic wrote the unreal engine for ps3 already.

You bought an Xbox 360 so you could play a demo? Each post you make gets more and more ridiculous.
post #16 of 203
Quote:
Originally Posted by blitz6speed
you have to remember, most japanese developers dont like the xbox 360. And the Wii is a peon in the powerhouse dept. So they can either make crappy looking games with awkward controls (Wii) or go with the PS3. Its a no brainer. All the top tier next gen games WILL be on ps3, other then Gears Of War, but im almost posotive it will be ported over to ps3 at some point since epic wrote the unreal engine for ps3 already.
You're right, most Japanese developers aren't developing for the 360. So American developers will develop for the 360. Shockingly, not everyone in the world feels the need to play Final Fantasy XIII.

And the Wii isn't going for graphical power but immersive gameplay, and from every single report I've heard, it works. Now, the PS3's half-assed motion sensitivity is another matter. Every report I've heard says it feels awkward and cumbersome.

As for exclusive games for the PS3, well, it's more expensive to make games on the PS3 than it is on the 360 or the Wii. So I would actually expect the PS3 to have the absolute bare minimum amount of exclusive games.
post #17 of 203
Thread Starter 
Quote:
Originally Posted by bullgates
You bought an Xbox 360 so you could play a demo? Each post you make gets more and more ridiculous.
I take them with a grain of salt myself :rolleyes:
post #18 of 203
Quote:
Originally Posted by gatti-man
IOts not that big of a bargain. Have you seen the PS3 games??? Most have yet to even come close to current 360 stuff, none are going to top halo 3 or gears of war. Your buying the wrong consoles imo. Wii also looks to be a better game console, some of their launch titles are console sellers imo. Dont have any of those for sony on the horizon for a long time.
Yes, I have seen some of the PS3 games and I disagree with you. Some look very good, some amazing as well as some not so good. I can't wait to get my hands on them :) My tastes don't match with yours, to each his own :p Sony consoles have had the largest selection of games by an insane margin the last two generations. There is way too much coming for the PS3 (over 250 announced games already) for me to pass up :)

I've seen gears of war as well. While it looks pretty good it needs work on its framerate. Halo 3 had a teaser trailer with zero gameplay. I can only hope its closer to Halo:CE in terms of gameplay instead of Halo 2. Either way I'll probably be picking it up though. Gears of War most likely as well as it looks fun. Hopefully there will be a demo on live for gears soon to try out.

I'll be picking up the Wii as well, got to have my Zelda fix and Mario fix as well as others :D

If you want to limit your library immensely by not have the PS3 that's your choice :cool:
post #19 of 203
Quote:
Originally Posted by briankmonkey
I'm buying, one of the best CE values in a long time. I can only hope I'm lucky enough to grab one at launch.
I bet Sony is hoping you don't. They need strict gamers to migrate to BD movies for their strategy to work. If the only buyers of the PS3 are already sold on the BD movie format, they will be paying the PS3 subsidy for nothing.
post #20 of 203
Quote:
Originally Posted by CPanther95
I bet Sony is hoping you don't. They need strict gamers to migrate to BD movies for their strategy to work. If the only buyers of the PS3 are already sold on the BD movie format, they will be paying the PS3 subsidy for nothing.
I highly disagree. Buying both will still help them. Its not one or the other for me. I think I'm the type of customer Sony wants very much. First and foremost I'm buying for games, and if my PS2 purchases are any indication I will be buying quite a lot of PS3 games. There's already quite a bit that was shown at E3 as well as other announced titles so I'm not worried (well aside from being able to actually get one at launch which I'm not optimistic about).
post #21 of 203
Quote:
Its not one or the other for me.
How demanding will you be of the PS3's PQ for movie playback? If it isn't as good as that of a standalone player, will you be satisfied?
post #22 of 203
Quote:
Originally Posted by RobertR
How demanding will you be of the PS3's PQ for movie playback? If it isn't as good as that of a standalone player, will you be satisfied?
As long as it does good job (which I'm guessing it most likely will) I'll be happy. If it's missing extra features like 64x fast forward, super smooth looking fastforwarding, frame by frame advanced and other things non-essential but nice to have features then I'll be fine with it. I'm not going to be overly critical of it, while be underly critical of a standalone blu-ray or HD-DVD player.

Obviously if it has issues with constant studdering (if its hardware related issues and not software) or something then I will not be happy with its performance. This is unlikely to be the case.
post #23 of 203
Obviously the price of the PS3 will turn many people away. Anyone who doesn't think that or didn't realize that apparently wasn't thinking in the way the avg person does. Not like everyone is hankering to plop down 5-6 hundred for a game system.

IMO, the PS3 will be pretty minimal in factoring into this HD movie format jig.
post #24 of 203
Quote:
Originally Posted by briankmonkey
I highly disagree. Buying both will still help them. Its not one or the other for me.
If you're buying BD movie titles anyway, what is the incremental gain of having a subsidized PS3 player in your home? If the net result is only PS3 game software gains in your household, the BD player capability of the PS3 added nothing to Sony's bottom line, and had no impact on the "format war".

You're a Greek soldier who managed to slip through the gates the night before, but forgot to cancel your reservation inside the horse to free up that space for someone else. ;)
post #25 of 203
Quote:
Originally Posted by BillP
It's funny. Sony thought what a great marketing strategy it was to get BD into millions of homes of people buying PS3 for the games (the trojan horse strategy). Since the PS3 is overpriced compared to other gaming systems, and since stand-alone BD players are overpriced compared to HD-DVD, most will buy the PS3 for BD, which ends up 1) reducing overall sales dramatically (more people want a gaming console than a BD player), 2) increasing their losses (gaming consoles tend to lose money, which the company makes up with sales of the games, but if people are buying it for BD, there won't be the games sales), and 3) reducing sales of more expensive stand-alone BD players, including their own, which again loses them money. If PS3 sales are sluggish, this could end up being one of the worst marketing decisions in history. IMO, they should have offered a $400 PS3 without the BD capabilities.
I totally agree.
post #26 of 203
Quote:
Originally Posted by CPanther95
If you're buying BD movie titles anyway, what is the incremental gain of having a subsidized PS3 player in your home? If the net result is only PS3 game software gains in your household, the BD player capability of the PS3 added nothing to Sony's bottom line, and had no impact on the "format war".
Maybe I'm not following your point fully. I wouldn't be buying BD movies without a PS3 at that point as standalones players are simply more than I'm willing to pay. I'm buying the PS3 first and foremost for gaming, I would have done so even without blu-ray movies being available. The fact that blu-ray movies will be available however will most likely lead to me buying a few on top of all the games I will be purchasing. If it were a different scenario, say stand alone players only costing a couple hunder then yes things would be quite different. I personally don't expect that to be the case though come this November.

What type of person does Sony want to buy their PS3 in your mind?

edit:
Quote:
You're a Greek soldier who managed to slip through the gates the night before, but forgot to cancel your reservation inside the horse to free up that space for someone else.
unfortunately I didn't jump on the pre-order which is why I'm not optimistic about getting one in November. I'll make an effort early in the morning at Fry's other than that I'll wait if needed.
post #27 of 203
I thought gamers took the attitude that money was no object. Has Sony finally hit the limit of what the market can bear?
post #28 of 203
Quote:
Originally Posted by briankmonkey
Maybe I'm not following your point fully. I wouldn't be buying BD movies without a PS3 at that point as standalones players are simply more than I'm willing to pay. I'm buying the PS3 first and foremost for gaming, I would have done so even without blu-ray movies being available. The fact that blu-ray movies will be available however will most likely lead to me buying a few on top of all the games I will be purchasing. If it were a different scenario, say stand alone players only costing a couple hunder then yes things would be quite different. I personally don't expect that to be the case though come this November.

What type of person does Sony want to buy their PS3 in your mind?
If your preference for BD movies is only because you will have a PS3 anyway, then you would be the target candidate for the PS3/BD strategy. I was under the impression from your posts that you were sold on BD over HD-DVD in the movie format war regardless of the tie-in with video games.
post #29 of 203
Quote:
Originally Posted by CPanther95
If your preference for BD movies is only because you will have a PS3 anyway, then you would be the target candidate for the PS3/BD strategy. I was under the impression from your posts that you were sold on BD over HD-DVD in the movie format war regardless of the tie-in with video games.
edit: As for your impression of me. I'm not sold over either as I don't own either. Prices are too high for the hardware and software on both formats at this point as well as the extremely limited software selection. That doesn't mean I'm not interested, I surely am. I'm just not willing to pay early adopter prices for generation 1 products.

I do have preference over DVD of course. BD over HD-DVD, nothing at this point has made me want one over the other. If you've read more of my post you'd know I want to get a HD-DVD add-on for my 360 as well depending on a few factors. As I've said before I wish HD-DVD was standard in the 360 to begin with.

Yes, this is the HD-DVD forum but the topic was about PS3 (not sure why its in the HD-DVD not that I care). Am I only supposed to talk positively about HD-DVD's and not positively about my excitement for the PS3 and blu-ray here even if the topic is clearly about PS3?
post #30 of 203
Quote:
Originally Posted by briankmonkey
Yes, this is the HD-DVD forum but the topic was about PS3 (not sure why its in the HD-DVD not that I care). Am I only supposed to talk positively about HD-DVD's and not positively about my excitement for the PS3 and blu-ray here even if the topic is clearly about PS3?
Not sure how you got that from what I posted. I never questioned your motivation for PS3, or suggested that it was a bad deal for anybody. My comments were confined to the type of customer Sony is looking for with their PS3 strategy. Like I said before, as an undecided (format war) that will be buying a PS3 anyway for gaming, you are exactly the target Sony is looking for.

Those that have a preference for BD over HD-DVD, or are buying the PS3 strictly as an inexpensive BD movie player - are not the kind of customer Sony is looking to snap up the PS3.
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