the PS3 hasnt even been released everywhere yet and considering its the most pre ordered console ever in europe im kinda thinking this article was of know use a good read but frankly time wasting.

Seriously ... where?

I stopped right there.

I don't believe anything these guys say.

People are so quick to judge the PS3 when it has only launched in 2 countries vs xbox 360's 37 countries.

I think PS3 is doing good considering all the bad press its receiving.

Aka "Cell downgraded to 2.8GHz" etc.

Not worth reading.

Blogger giving us his opinion. (yawn)

Sorry but I could careless what this guy has to say as he has no more credibility then anyone who posts on this site.

Oh and here is a news flash for you. Every new console risks losing so what? Thanks for stating the obvious.

unless I missed something he didnt mention anything about blue-ray sales. The profits on these should also be factored in since this is the number one blue-ray player out there. The fact that it is a multi-media platform not just a gaming platform should be considered.

This is the main reason I bought mine is for the blue-ray movies. The games are just a perk.

I don't really think it was downing the PS3 though. It just seemed to be a little educational bit on how things work. I found it interesting, it was information I've heard before, but just applied to something I care about: videogames.

it won't happen to this gen

Very good summation of the danger ahead for Sony.
(And for now its just a danger, allright, fanboys?)
Its a warning, not a prediction.

Worth noting:
1- PS3 is not three times more expensive to develop for than 360; according to the PS3 lead at EPIC, it is more like 80%(five times last-gen costs vs 3 times). Bad but not quite double. The key point being that Sony needs to beat 360 just to survive. Matching them (or staying close) doesn't hack it. PS3 exclusive games need higher sales to break even than 360 exclusives. Hence the shortage of PS3 exclusives.

2- The magic number, for anybody who's been paying attention, is 10 million. Historically, any console that gets to 10 million installed base survives. That is why MS has been harping from day one on the need to get to 10 million in the first year. Cause it takes time to develop games and the games you get in the first year come for free as ir were; the developers commit resources before the product ships so its a blind bet. The second wave of games, though; those are started *after* the console ships. And those won't arrive if it doesn't look like the console will get to 10 million fast enough for the developer to make money.

So, yes; it is early in the game for PS3.
Sony can still survive this.
Things can change.
But, as the recent numbers show, the trend isn't good:
- 360 has 11 million installed base, growing by 600k per month
- Nintendo has 5 million installed base, growing by 800k per month
- Sony has at most 3 million installed base growing by 300K per month, maybe 500k if europe comes up big for them. (Nintendo is just killing them in japan!)

By november, Xbox should be at 17 million, Wii at 11 (home-free!), and Sony at 8. Not bad numbers in absolute terms but half the installed base and almost double the costs does not make for profitable PS3 games.
If europe doesn't buy a zillion of those 800 PS3s...
Not. Pretty.

i dont think any of these consoles are at risk for anything

the fact is all of these companies have sooo much money to blow
the most money to blow microsoft has

It doesnt matter if the PS3 launch was more succesful than the 360 launch... at the end of the day Sony has to beat the xbox 360 of today, not the xbox 360 a year ago, so in that sense unless the PS3 outsells the 360 in a given month theres no way they're going to catch up, in fact the gap is widening

Nether has the 360, MS still has the China launch to get ready for.

As an Xbox 360 owner I get would up by fan boys mindless support for the PS3 and amused by Sony's incompenent marketing team.

However if the PS3 were to fail standards would drop as there would be no competition. We would be left with the same situation we have with Windows Vista which is ok but would be a lot better if Apple OS had more of an installed base.

Sony treats Europe like crap(leaving them without console until now) yet they still love sony,GOD thats love or stupidity.

It's funny how you talk about it being love for Sony. We don't give a sh't about Sony - we just want a ps3 to play games on and do oher things and put it next to our TV and grace it with great games.

If it was about loving Sony people would have Sony erikson phones, Sony walkmans, Sony hdtv's etc etc.

HAHA I Dont think this article is that good since as someone said the ps3 is not global yet. I am thinking baout buying the ps3 for its BR capabilities.. If I do get one Ill let someone have a free controller.. BUt the one thing I am starting to hate is theses Post Bubbles! How can 75% of people on here have 2or 3 bubbles while some people have 7-8 thats just plain dumb. The bubbles on the old site were better at least you knew their was a good reason why he lost a bubble buy now it just seems to like their using it to shut some people up and let other's talk .. It's sad really ..Funny too everyone will waste their bubbles on a topic and then the guys with 7-8 wills till be posting funny,

i didnt know the XB launched in 37 countries already. PS3 should be out like that in 1 years time too i believe.

...let's see on PS3...

"COST":
Cell + HDD + HDMI + Blu-Ray => 499$-599$...Excellent !

"INSTALLED-BASE":
Around 200 million people and 13,000 games...Superb !!!

"GAMES":
Backward compatible thousands PLUS new Within first year:
-Resistance
-MotorStorm
-FNR 3(better one)
-Oblivion(better one)
-Virtua Fighter 5
-Lair
-Havenly Sword
-MGS 4
-DMC 4
-Tekken6
-White Knight Story
-Killzone 2
and
-GT 5 demo + FF-XIII demo
ALL WITHIN FIRST YEAR...Yippy !!!!!!!

Don't worry, PS3 is doing just fine !!!

i guess the competition between the 3 consoles gets better games in the market. like xbox, playstation, or wii only titles help a console out alot..

but it sucks if an awesome game comes out on one system and not another

unless u have all 3 consoles...ehhh but thats like $1250
for all the game systems...and a nice pc would raise that by alot.

but damn it must feel good =D

200 million installed base and 13,000 games? were not talking about last generation's, its now ps2's installed base doesent count, u wanna add everything from like last decade 2? how about it ? ps3 not ps2 is in trouble keep up with the times its time to look past the hype machine

is that alot of people believe that Sony are going to fail with PS3 WHICH is utter stupidity on their behalf . Sony is the biggest electronics firm on earth and have been on top of the console heap since PS1 .I think they know better about what they are making than any one of us and certainly more than a journalist who writes any old crap for a newspaper .I`m not a Sony fanboy and have nothing against the 360 seeing as i own one but the way some of you defend the 360 is like your getting a shot thrown into you by Mr Microsoft himself and loving it. When PS3 is released all over the planet and the dust has settled i think you will find that Sony and Microsoft will come out of it all pretty even . Saying that i also feel that Sony should have made 2 PS3`s .. 1 with blu-ray and 1 with standard dvd giving the consumer the choice on spending $600 or maybe $300 for standard dvd version ...also making Europe wait 4 extra months was/is out of order seeing as its probably going to be the European market thats going to make all the difference .

Sony will not drop out. If anything they will top X-box 360 sales by 2009. Sony hasn't even released in lots of countries, also Sony may cut the price sometime by the end of the year if things go downhill. PS3 won't fail they just take longer to sell.

Considering that Wii has sold almost half of what X-box 360 sold in one year since its release I think Wii will land on top of all the consoles in sales.

I game. Let them worry about the money. Cool article anyway.

Anyone that believe's Sony will pull out of making consoles/and go bankrupt are fools.

-First of, it's theinquirer.net, which is a ludicrous source for news.
-Second, if this was true 100% of the time we wouldn't see Nintendo Wii right now.

"A $99 Xbox360 would probably have sold 25 times as much as a $400 one in 2006, but I doubt MS would be willing to eat the $420 per unit that it would have taken to do that."
-He must be a rocket scientist for sure.
-So, if it had cost $99 we'd seen at least 250 million 360 around by now.
-Talk about mass production, eh?

"So the more MS or Sony sell, the more money they make, or at least the less they lose, and the quicker they can drop the price. The more they drop the price, the more they sell. Conversely the less they sell, the longer it takes to drop costs and the longer they have to eat money on each console."
-Like I said; a rocket scientist.

"In any case, for the sake of argument, I will assume the console makers get $10 per game sold, and zero for big name exclusive games."
-After all, he -is- a rocket scientist, how could he be wrong?

"One more tidbit to toss at you, I have been told by a bunch of people that dev costs are painful on the new consoles, the 360 and PS3 specifically."
-The "bunch of people" are probably colleagues of his at NASA.

"Now, getting back to the feedback part of the circle, if you are a dev, you want to write your game for a large potential audience of paying customers."
-No one knows how to tell the truth better than a rocket scientist.

"Assuming you get $20 per game sold, and a game costs $10 million to develop, you need to sell half a million copies to break even. If you don't, well, you won't be in this business for long."
-Math must clearly be his strong point.

"Basically what it comes down to is the more units a console maker has out on the market, the more willing game companies are going to be to write for it."
-Thank you mr.Rocket Scientist, it was so obvious that I didn't even think of that!

"The company with the lower number of units gets the shaft. They become less and less desirable to write for, and less and less desirable to buy, and less able to lower costs. Higher costs means fewer sales means worse games. Negative feedback, and it hurts."
-Yes, this is exactly why Nintendo died last generation, may Nintendo rest in peace.
-Let us have a minute of silence in remembrance of what once was.

"One note here is that there does not have to be a winner and a loser, there can be multiple winners or losers. If all of the consoles reach a critical mass, they will all win. If none sell enough, they will all lose, so don't assume that one winner means another loser."
-Gather up for a family hug!

Blah blah blah, nonsense in this news-post. Sony is one of the biggest companies on the world selling consumer electronics, don't you guys think they got control over it? xD

What a waste of space this news is. And guess what? He who made the this news is a Xbox 360 player.. Eww..

you should calm down Cop. This article makes plenty of sense. His points are all good and true, the ps3 does cost too much for the average consumer at this point, and the average consumer, not the crazy gamer is who matters the most, and will determine whether the console fails or succeeds. Why would anyone who doesn't know much of ps3 choose it over a 360 considering the price. I am sort of getting worried that perhaps the ps3 may indeed fail, and production will stop, then my purchase will have been a complete waste.

Nice article, it seems to spell doom for the PS3 a little early though. We need to wait (I agree with the Sony fans on that one) Three months after launch and Sony is still getting negative press though. They get more than everyone one else that’s undeniable, the news for the PS3 is like this on all gaming sites except for pro Sony. (Just in case you try and spin this DJ here are links to other news sources)
http://www.megagames.com/
http://www.1up.com/
http://www.joystiq.com/
http://www.topix.net/videog...
http://www.totalvideogames....
http://www.gamedaily.com/
http://www.computerandvideo...
http://www.kotaku.com/
http://midwestgeek.blogspot...
http://www.ukresistance.co....
http://deadanyway.wordpress...
http://videogames.yahoo.com...
http://home.about.com/video...
http://www.sciencedaily.com...
http://www.gamespy.com/
http://www.gamefaqs.com/
http://www.google.com/Top/G...
http://inventors.about.com/...
http://en.wikipedia.org/wik...
http://www.g4tv.com/
http://www.bafta.org/site/p...
http://www.gamezone.com/
http://videogames.netscape....
http://www.videogamesplus.c...
http://www.vgmuseum.com/
http://www.avault.com/?cat=...

deepbrown
(Answers as nicely as possible for a fanboy comment) You know darn well they don’t count replacements as sales that’s just flame bait. They would open themselves up to all kinds of lawsuits, like “falsifying documents” which is a crime in the U.S. here are some examples of people getting busted http://www.lawfuel.com/show... http://caselaw.lp.findlaw.c... here is an example of companies in the U.S. that do bad things remember Enron http://en.wikipedia.org/wik... You can also check out Microsoft’s site for more legal information http://www.microsoft.com/ab... deepbrown how are you going to ask someone to answer you nicely when your whole comment was filled with deceit?

I, for one, didnt think Sony would plummet so fast. I swear, as much of a fan of XBox as I am, deep down inside I still felt that Sony would come out on top in consoles sold. This doesnt mean it will nessessarily be the most profitable, although it helps. Now I can almost GUAREENTEE that Microsoft will make a healthy profit from the 360, where Sony has a great chance of failure, at least in terms of profit margin.

What I enjoy the most is talking to Sony fanboys that USED to diss the origianl XBox for just being the platform that Halo resided on. XBox hasnt even seen Halo yet and it is doing more then fine without it.

If I would have told you over a year ago that XBox would have sold around 11 million units and have a very sucessful software lineup that netted the company not only money but rave reviews, how many of you would have believed me?

I've brought his over from the discussion on Sony Feels No Need For Price Cut.....because some rather salient points have been made already.

Well, actually...you know how politicians say read my lips
Deep Brown, I am afraid that we have exactly the same situation here. By saying there will be no fall in price soon, it could mean that something is up. Why then, does Sony feel the need to say so? Microsoft has never talked nearly so much about a fall in price...I went back to check the old articles from last year. The problem here is that Sony has done something that most folks would argue was extremely risky....they placed a consumer mainstream product in a game system which has not yet reached critical mass. But Sony, you gotta love the gutsy play unless you're betting all your money on one format.

So, the problem is that you have several dynamics at play (let's look at this carefully):

1) Blu-Ray is a new technology, and it has to be adopted to a critical mass level before it really sells to the mainstream (that means when your mom and dad say that's nice I am thinking I need or want that). Until then, it is a LIABILITY and not a NET BENEFIT to the PS3! I own a PS3, but I haven't purchased a single Blu-Ray. I rent. Why? Sheer economics and I haven't been convinced that HD-DVD or Blu-Ray won't go the way of Laser-disc (flash drive and downloading are both rising technologies). People want to see ubiquitous adoption before they jump over the cliff. If enough folks come back up and don't hit bottom, they will jump in as well...and not a moment before.

2)timmyp53 said this a while back in the post and its true, generally:

"once the manufacturing costs goes down
the price will eventually go down with it.. "

Historically speaking this is generally true with any generally accepted mainstream technology that has undergone a development and commercialization cycle. First, let's debunk the myth DVD players went mainstream as the first PS2 sold. It did NOT! DVD had no competition and was well on its way to being mainstream. I remember owning a DVD player and buying the Matrix as my first disc well before I thought a PS2 was within my budget, and even then, I was disappointed in the DVD performance as time went on. I didn't do the links. There were so many to cross-link...it is was beyond the scope of this publication. If you want to compare....just look at the price histories for each device on any number of sites...pricescan has a good one if my memory serves me well.

So, subpoint A) While the PS3 is a Blu-Ray, it is not the best Blu-Ray and future Blu-Ray players will likely make it less desireable as a player. The benefit of Blu-Ray is therefore limited to Sony pushing adoption, then high-capacity games to the extent developers push the envelope (remember this makes the games more expensive...how much more...who knows, but the games won't be cheaper...is there a buyer for such expansive games and content at $75 or $85 or more...but I would think a fully immersive Blu-Ray game of 50 Gigs right now, will be significantly more expensive and Sony won't be eating all those costs...so open your wallets wide!!!), and finally making money through its media division.
Subpoint B) What is the true cost structure and marketing plan for Sony right now? No one knows this except Sony. Let's say that Blu-Ray won the format war tomorrow. Will Sony drop the price for PS3. I don't think they would in a million years. Currently, they lose roughly $240 per machine on previous estimates...even less when removing the EE chip (sorry, Europe...you're getting screwed a little). That cost is a loss that they are willing to give up on the idea that the cost will be recuperated in some fashion. In the short-term how??? By ensuring the viability of Blu-Ray, and hopefully, with a very long-term attrition in the cost of Blu-Ray players. You see, (I own a 360 as well), MS is actually doing Sony a favor and slowing down the rate of price reduction for Blu-Ray. If there were truly no competition for the parts between manufacturers, then China already would be developing $100 Blu-Rays faster than you can spit. The development costs borne in large measure by Sony would be instantly realizable (that is unrecoverable as the cost return would need to materialize overnight!!). With the cost of the Blu-Ray drives going super cheap, a price drop would be expected post haste on the PS3...afterall, it is one of the supposed benefits and a primary reason for the units price. MS, no longer the loss-leader can and would match any price Sony throws down...this will happen anyways. In addition, you would have the added situation where Blu-Ray adopters who don't play games (way more out there than gamers in the world....let's face it, this isn't the Wii [everybody can play console] and we're just a small part of the global economy) would purchase other units and not assist unwittingly in helping to subsidize (ding, ding, ding, ding....) you guessed it, the Cell processor development costs....how much would one of those things make a PS3 cost with just a DVD drive anyways?? :-) You see there is a dual dynamic at play, and my description here is merely juvenille in nature to explain some of the forces at work.
Subpoint C) Due to combining emerging technologies, the question is how fast will each cost fall in concert with how fast other manufacturers are able to lower the cost of their Blu-Ray units?? In other words, how fast will Sony's price of the CELL / Blu-Ray fall, and how will that compare with a China made Hanspree Blu-Ray (those guys just made and now sell a $500 HDTV 1080i LCD!!!)??? I don't know that. Sony doesn't know that and neither does any other talking head or blogger!!! That is the real deal here. You couldn't know unless you know how your mom or dad will accept the technology a year or two from now.

#3 But...Sony has a huge (3 massive units!!!) media side of the house....SCE actually dwarfs the gaming unit....just check the revenues and expenditures. You will then see why they are willing to hedge their bets with Blu-Ray and throw PS3 gamers under the bus when necessary (no B/C for some, no rumble, no full-on effort for online, etc.). It (Media) is their real cash-cow!!!

Finally, if you really want to know how PS3's will sell? Ask your mom and dad what they think about Blu-Ray, check the prices of Blu-Ray at discount stores and see what your less fortunate friends think about the prospects of making the plunge. I just checked Walmart, HD-DVD $398 and Blu-Ray $898....this bodes well for PS3 sales for the time being....be very wary if the bottom should suddenly fall out for Blu-Ray players or if the price should stay very high for too long.....what the Fanboi is looking for a gradual and moderate reduction in prices which shall allow Sony to execute a price cut in due time...which I am afraid may not be this Christmas unless MS sales keep pace or Ninetendo (I own a Wii, as well) so badly outsells PS3 that they are losing exclusives at a mile a minute. As an aside, the lowest prices that I can find for next-gen DVD is HD-DVD $299 and Blu-Ray $469.95....this is dangerous territory for Sony.....keep looking at those price trends on pricescan and in the Wall-Street Journal.

Me....I am lawyer with plenty of income....I don't lose no matter what. :-) I just buy the game that I like the best on the console that I like to play it. For example, I love the Wii for baseball, golf and basketball....great fun and good exercise. MS is for driving games and flying games....gotta have rumble...without it you don't know how hard you're pushing your equipment. PS3...gotta love the FPS and fighting games. Everything else, and I mean everything else, if you're honest is a toss-up!!! I just happen to be fortunate enough that I don't have to decide. Happy Gaming!!
Agree(0) | Disagree(1) | Report | Reply

Maddens Raiders - 13 Hours ago

PM
Track
Ignore
27 - bombzombie -
well written comment. I'll have to ring the bell on your bubbles.
I agree with you on many points, especially the great "r&d - production - to market - to bottomline loop" analysis. Yes everyone continues to hone in on the hardware losses per PS3 sold; however the shiny lineup of SNE IP's is not only making the system irresistable to "'ol school" gamers, but also the SNE loyals...some of whom have been completely holding out (still clinging to the love that the PS2 emenates) until the PS3 unleashes hell gamewise. Look, PS has simply been known over the past ten years (if for nothing else) to pump out more titles (& hits) than Motown. Some games are just better on the PS3 than others. RPG's, Flight Sims, Racing Games, Fighting Games, Adventure Games, and the FPS's are starting to really get hot. This endears people to play the PS3 that have owned the PS2 and over time these people will migrate to the next level when it fits there budget, living room w/e. People are not going to overnight, completely change their tastes in games and go to an entirtely new platform. I personally thought that the 360 would have sold considerably more at this stage in the game considering its penetration into the Indian, Spanish and Australian markets where it was heavily lauded, but has still really failed to skyrocket or see steady, upward growth. I know that the games are there and still coming for the 360, but all things considered, the PS3 is looking considerably better at this stage in the game, plus there are no major hadware issues or circle of death stories with the PS3 all over the 'net that owners have to contend with in the midst of all the ballyhooed launch.

Yes the Media arm of SNE does present a cash cow with which the co. as a whole can hedge bets on it's own ingenuity with loyalists and ordinary consumers as financiers, but isn't that hallmark of a risk taker? High risk = high reward. It works for me. I take very high risks and enjoy a rewarding income.
I think SNE has wisely shifted the playing field by introducing the BD player in the PS3 to help supplant it's partnerships with the major Hollywood movie houses. Yes, it was a gamble, but really good things are difficult to obtain. This is a world where r&d costs are skyrocketeing, new science is not cheap and outsourcing to save your bottom line is the only way you can go if you want your business to survive. SNE had to deliver on the hardware and parts and they have --
They've succedded in creating a beautiful piece of hardware and AAA BD player. Now -- they MUST deliver on the games that made PlayStation -PlayStation.

Yes the UK/EU/PAL PS3's are lacking the EE and full BC that the States and Japan recv'd but the system is made to upgrade the firmware seemingly for the life of the console. This can be corrected as it was corrected for me and I can enjoy Marvel vs. Capcom 2 on the Bravia, the way it's supposed to look.

-- "what the Fanboi is looking for a gradual and moderate reduction in prices which shall allow Sony to execute a price cut in due time...which I am afraid may not be this Christmas unless MS sales keep pace or Ninetendo (I own a Wii, as well) so badly outsells PS3 that they are losing exclusives at a mile a minute. As an aside, the lowest prices that I can find for next-gen DVD is HD-DVD $299 and Blu-Ray $469.95....this is dangerous territory for Sony.....keep looking at those price trends on pricescan and in the Wall-Street Journal."

I have to disagree with you there too b.z. Despite the difference in msrp of each player type stats show that Blu-ray is still outselling HD-dvd in both dept's. regardless of the Price* How do you explain that? Secondly the pace that the wii is selling is already faster than the 360 was at the respective time and the wii will not continue to sell the way it was. Just look at January in Japan. Almost a 50% decrease in overall system sells. MS will not be able to continue to ride the Halo tour bus forever (& I hope they don't - I want comepetiton...ya know anti EA sports) and will eventually have to come out with some very innavative, hardcore, immersive adventure game to wrap in the masses. Only if they want to wrangle more traditional old school gamers. A new shiny console with more memory will not solve this long term issue. I'm not trying to be crude, but there's a reason people are predcting the PS3 to win the console war by 2010.

In summation...if people want the PS3 to fail, then they have to root and root for developers not to make any games at all for it. This is the only way it will fail. The hardware is: solid. The future proofing: brilliant. It won't go to the landfill on those merits. No...it will go if massive amounts of games are not produced for it. Like massive amounts of games were pumped out for its predecessors.

--"Thus one who is skillful at keeping the enemy on the move maintains deceitful appearances, according to which the enemy will act. He sacrifices something, that the enemy may snatch at it. By holding out baits, he keeps him on the march; then with a body of picked men he lies in wait for him." Sun Tzu (the Art of War)
Agree(0) | Disagree(0) | Report | Reply

bombzombie - 4 Hours ago

PM
Track
Ignore
27.1 - In Explanation
"I have to disagree with you there too b.z. Despite the difference in msrp of each player type stats show that Blu-ray is still outselling HD-dvd in both dept's. regardless of the Price* How do you explain that?"

It is quite simple really to generalize but very difficult to understand and analyze fully. I am not arguing that HD-DVD will be the demise of Blu-Ray or PS3...indeed quite the contrary. All I am saying, (and I think if you guys think carefully about what I am saying) you will agree, at least in theory because it of fundamental economic theory the PS3 is facing some precarious conditions to ensure its viability.

In the most basic statement, I would argue that the Supply-Demand curve of the number of PS3 sold and the level of adoption based upon early adopters does not provide the necessary historical precedent where one can declare Sony the winner and say they will win this round. If anything, I believe there will be no winner, because the number of factors aggravating the supply-demand curve also affect directly and indirectly the consumer's decision to buy hard media and machine (factors fully listed below). Further, in no way has the number of players sold reached the point of overwhelming ubiquitousness that lead to the untimely demise of the "Divx" disc which Circuit City touted so heavily....while the ratio is roughly 2.6 to 1 (approx. within reason), those sales are being made to early adopters. This group has not been historically more accurate at selecting the direction in which technology is headed. The examples are myriad and can go either way. More often than not I would venture (only by slight margin) the predictive skills of adoption by the mass consumer are not borne out by those of the early adopter whose spending habits are somewhat at a variance to the average consumer.

You see, unlike us....yes, even the one's who say we are too poor to afford a console....average middle-age male with a family is probably making $35,000 to $38,000 (per household) based on latest world rankings of per capita income[from US News & World Report] (certainly that is average and not median....and I know the difference) with a wife and 1.6 kids. That is the middle of America....and that is the demographic that Sony, Microsoft and Nintendo all want to hit. That is where the heart of 300 milllion of the wealthiest people on the whole in the world live. Quite simply, that is there pay-dirt where the oil runs rich and the dollars come easiest. They aren't worried about the rich fat cats like me, the Sony fan (to a degree) or even Japan....what I have just described to you is pay-dirt central. After all some of these very tech companies pay me $275 per hour to do their patent work. So, that known, what are the factors that affect the PS3 in terms of sales, reduction in price, and will necessarily affect the decision of middle America to buy in wholesale.

#1- Price
a) Price is driven by SNE needing to either stem loses or make a reasonable return. The biggest factors are their component prices. This is why I argue above to watch what the price of Blu-Ray and HD-DVD players and the way they behave.
1. If the price falls too fast, Sony is forced to drop prices too fast and they lose money.
2. If it drops too slowly, Sony is forced to eat crow and wait till component prices fall.
3. Sony is utilizing two entirely different consumer classes to recuperate costs on two technologies...agree...both the Cell and Blu-Ray. In an ideal world, Sony would have full control of the supply thus keeping demand just marginally to the high side where as the price of the Cell and Blu-Ray fell they adjusted prices accordingly and made a nice profit margin....but THEY DO NOT!!
4. The entrance into the market of cheaper Blu-Ray players....Sony just announced they are making cheaper ones today....is going to have an effect on Sony's ability to sell Blu-Ray to non-game players. And if I hear that stupid argument about how great a Blu-Ray player the PS3 is....I will just bust a gut laughing, because it is already yesterday's technology. The players will get lighter, load faster and become more reliable over time just like all consumer technology since the dawn of time (the wheel being the oldest example that I can think of at the moment). :-)
5. Nobody knows what the effect of a $100 Hannspree (Chinese company) brand Blu-Ray will have on PS3 sales. Will Sony be forced to drop their prices in effect conceding that much of the value of the PS3 has been discounted? Will it knock HD-DVD finally out of the market? Will Sony begin adding new features in (more HDMIs, larger HD, etc.) to maintain a higher price and establish a reasonable profit margin? I don't know, Sony doesn't know, and neither does anyone else. Only time will tell what will happen in that respect. And if folks are so confident in that 2010 prediction, then I would expect HDTVs to be flying off the shelf as well....currently though, sales have slowed down. This point can't be overstated because it cannibalizes some of the demand for the PS3 which we know is artificial...how much...nobody truly knows...but it is a factor.
Finally, how will Wii and X360 prices respond....only Sony knows what they will do and this is true for Nintendo and MS, as well.

#2 - Need

A wise business man once said this is the only thing that sells anything....it is need. Not want....but need. There are three types of need. a) Deep compelling emotional need - Everybody else (critical mass) has one on the block b) Future Pain - I want to fit in as well. Or, I am on a railroad track trussel stuck....I'll pay $10,000 for that 100 ft helicopter ride to safety. c) Gain or Advantage - In the airport, you try to sell me a black felt pen for $20. "No way buddy, I can pay $2 for one at Walmart." Bill Gates is about to leave on plane and says "Hey, I've got a $100 mill contract to sign for you. But I only sign with black felt pens." Back to the same guy selling pens, "$200 for black felt pen." Your response, "Sold!!" Those are what drive the normal consumer....

Now that Jim Ryan is gone just need to remove Herman Hulst from his position! And maybe give Shuhei the position he deserved.

This gen hasn't been the best for games, last gen consoles are still out there and now there's been talk of the PS6 and Xbox Two for a year or so. Many games this gen will be ported to next gen and the cycle will continue. The re-release of the Neo Geo AES+, games on cartridge for £70 ($95), gaming is going back in time. Gaming has gone pricing mad with the high cost of games, consoles and controllers. The men and women at the top are clueless.

It’s always interesting to hear behind-the-scenes stories like this, especially involving veterans like Shuhei Yoshida and leadership figures like Jim Ryan. That said, there are usually multiple sides to decisions at that level. It could be less about not “listening” and more about differences in long-term vision for PlayStation. Yoshida played a huge role in shaping the brand, so whatever the reason, his impact is undeniable.

If true, and I'm inclined to believe it is, it goes to show that Sony lost their way when they became more western/didn't respect the PlayStation origin story. Andrew House and Jack Tretton did great work, but they also didn't try to fundamentally change the PlayStation DNA. Ryan oversaw the death of Japan Studio and a live service direction.

I already figured this, good lord imagine if Shuhei took over instead, would've been a platinum era 😩

I miss the first three generations of PlayStation. The way they turned PS3 around, we knew they meant business. We were all worried for a bit there around launch. Eventually from 2008 they started shifting slowly. But since Yoshida was fired, it's never been the same. Still enjoy my PS5 daily. I got a backlog dating back to PS2 lol So I'm fine but new games aren't as appealing anymore.

It seems like we were thrown on to the worst timeline possible where everything is too expensive and the wrong people were put in positions that makes the world a shitty place. We could have had Shu as the head of PS but we got the shitty alternative. Same goes for everyone in power around the world. Doesn’t matter the company or country the majority of us got the shitty picks and the world is declining like never before. I do think PS can come out of this because of their studios, talent and IP but they need someone more in touch with gamers leading things like Shu was. They’re still the best place for console gaming imo but it could be much better than it is especially without the massive live service failures. The rest of the world I have a lot less hope for right now. Hopefully the pendulum swings back towards the good ole days but I’m preparing for the worst.

There goes illuminati distraction story

So now there's certifiable proof that Ryan was in fact "fired", as opposed to when it was first announced that he "retired", in order to save face.

There's another guy who recently "retired" as CEO of another large gaming company, after doing a dismantling job as lead for well over a decade.

seems legit, the business man, fires the one who has ideas to move the business forward.

Jim Ryan is the reason why we are entering year 6 since the PS5 launch and many of us don't feel like the PS5 has gotten started as yet.

I hope going forward, we will see a return to form.