elgatonegro
July 20th, 2006, 06:40 PM
Japanese electronics giant Sony should stay away from comparing the Playstation 3 with the ubiquitous personal computer if it is to survive the game console wars, according to game industry analysts from DFC Intelligence.
In a report, DFC Intelligence rebuffed statements from Sony Computer Entertainment (SCE) Chief Executive and the original developer of the Playstation Ken Kutaragi who said that the 600-US-dollar PS3 is more like a PC and a home theater system than just a game console.
Kutaragi claimed in previous statements that the PS3 is capable of upgrade parts, particularly the removable hard disk.
Kutaragi had even compared the PS3 with Apple, which price their products higher than ordinary computers even if these use the same parts.
However, DFC Intelligence pointed out that the problem with such a strategy is that prices of upgrade parts do not come down as fast as stand-alone game consoles, which depreciate over time.
“The big concern with Sony is not only the PlayStation 3 launch price, but the signs that Sony has gotten itself into a business model that is not conducive to the mass market video game audience,” the group said.
Likewise, DFC Intelligence noted the major difference between Apple and the Playstation brand is their share in their respective marketplaces. Apple commands barely a three-percent market share in the computer business while Playstation has a 60-percent market share in the video game console business.
We believe that under Kutaragi's techno-elite PlayStation 3 strategy, the PlayStation 3 could end up with a market share more resembling Apple products as opposed to the dominant PlayStation 2 market share.
Also, while the PS3 could be the cheapest part in a complete home theater system, there is a very small market for such devices, particularly the current market base for the Playstation 2.
The group instead urged SCE to shift the current stated strategy of going after the PC business and not for the elite but much smaller market.
In a report, DFC Intelligence rebuffed statements from Sony Computer Entertainment (SCE) Chief Executive and the original developer of the Playstation Ken Kutaragi who said that the 600-US-dollar PS3 is more like a PC and a home theater system than just a game console.
Kutaragi claimed in previous statements that the PS3 is capable of upgrade parts, particularly the removable hard disk.
Kutaragi had even compared the PS3 with Apple, which price their products higher than ordinary computers even if these use the same parts.
However, DFC Intelligence pointed out that the problem with such a strategy is that prices of upgrade parts do not come down as fast as stand-alone game consoles, which depreciate over time.
“The big concern with Sony is not only the PlayStation 3 launch price, but the signs that Sony has gotten itself into a business model that is not conducive to the mass market video game audience,” the group said.
Likewise, DFC Intelligence noted the major difference between Apple and the Playstation brand is their share in their respective marketplaces. Apple commands barely a three-percent market share in the computer business while Playstation has a 60-percent market share in the video game console business.
We believe that under Kutaragi's techno-elite PlayStation 3 strategy, the PlayStation 3 could end up with a market share more resembling Apple products as opposed to the dominant PlayStation 2 market share.
Also, while the PS3 could be the cheapest part in a complete home theater system, there is a very small market for such devices, particularly the current market base for the Playstation 2.
The group instead urged SCE to shift the current stated strategy of going after the PC business and not for the elite but much smaller market.