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Will PS3 Price End Sony’s Dominance?

When the PS2 and Xbox went head to head, Sony’s PS2 garnered the largest market share. They are assuming that when they release their PS3 console, they will again be the dominant player. The somewhat slow sales of the Xbox 360 seemed to point to this exact scenario. But now that Sony has announced a price of $599, will they still be able to achieve that goal?

First off, I don’t consider the $499 version as a viable option with its lack of HDMI, WiFi and card reader. So with the Xbox 360 going for $399, are people really going to plunk down an extra $200 for the Blu Ray player? It is possible that the games for the platform itself may sell the player, but it will take some coaxing to get them to pay that price.

It seems that Sony’s plan is to achieve more than just introduce a console. They want to give their Blu Ray standard a head start in the format wars by tying it to their console, and at the same time try to introduce what is essentially a media center. It seems that either their strategy will pay off, or they will pay the price in the gaming arena. I think if you watch Xbox sales over the coming months you will get a sense of their chances. If Xbox 360 sales spike a bit now that there is an established price for the PS3, that could spell real trouble for both the PS3 and Blu Ray.

Posted by Jeff


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