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500°

Where Sony went wrong

As noted in the latest issue of Business 2.0 Magazine, the eagerly-anticipated PlayStation 3 has already lost this round of the console wars to its Japanese rival, Nintendo's Wii. Since late last year, when both consoles were released, the Wii has consistently outsold the PS3 in every major market. Sony's PS3 is packed with costly gee-whiz features that turned out to be a drawback to consumers faced with choices. Nintendo's Wii simple, elegant design and low price are two reasons it's consistently outselling the PS3.
For Nintendo, the number 3 company in the videogames business, it's a David-vs.-Goliath turnaround. For Kutaragi's team, who ruled the roost of this industry for 12 years, it's a shameful final defeat.
There are a number of lessons we can glean from this -- not just for the future of videogame consoles, but the future of consumer electronics. Decades from now, PS3 vs. Wii will be remembered as a cautionary business tale: how pride, politics, and an overabundance of technology can blind you to the simple truth of what consumers want.

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money.cnn.com
Saint Sony6958d ago (Edited 6958d ago )

indeed.
+ the odd idea that everyone would want to get blu-ray.

specialguest6958d ago (Edited 6958d ago )

they should have started and ended the entire article with that one word: price.

I would say 95% of the consumers who rely on their parents to buy them a game console had been totally eliminated. I know for a fact that had this been the early 90s and the SNES was $600 or even $400, my parents would NEVER buy me that console.

MikeMichaels6958d ago

It's been out for 6 months. Wii had the early buzz and has done well, but can it sustain it.

The game industry isn't a sprint, it's a marathon. Alot can change in 5 years.

nix6957d ago

otherwise - it's done everything right!

QuackPot6957d ago (Edited 6957d ago )

Okay let's do the maths:
Per UNIT, Wii is $250, Ps3 is $600. Wii sells 6 million UNITS; Ps3 sells 3 million UNITS. By my calculation, that puts Sony ahead on cash sales even if Wii sells 7.1 million UNITS. Go figure!!! Could this all be Ps3 bashing once again? Hmmmmmmmmmmm?

Massive blunder with the Blu-ray contributing to late release and high price of Ps3.

But fact is, even without the blu-ray and a price similar akin to xbox 360 at $350, Wii still would be outselling the next gen consoles.

There's noway that Sony would sell Ps3 for $250 at release - they'd make astronomical losses on the sale of the console which wouldn't be recovered by games sales.

So the Wii will fill a niche with it's unique gameplay and price until the next gen's prices drop and/or they develop similar games and controllers. The next gen technology means they will have a longer life and will eventually pull back Wii's unit sales lead - definitely their cash sales.

So enough already with Wii rocketing sales. Hell yeah. It's only logical that they are selling well with what you get for your dollar$.
This is no longer a story. Check this space in 10 years.

+ Show (3) more repliesLast reply 6957d ago
HandShandy6958d ago

No one... except small kids will have JUST a wii on it's own! Most Wii owners alread have a PS3 or intend to get one in the future. You can't own a Wii just on it's own, that's a major drop out.

As a few people have pointed out on here - the Wii is like an expensive add on/peripheral for a major games console.

The Wii is on a different scale and aimed at a different audience than what the 360 and the PS3 are aiming at. Idiots. TWO TOTALLY DIFFERENT PRODUCTS!

TheExodus6958d ago (Edited 6958d ago )

Actually most Wii owners can't possibly own a PS3 because the numbers simply won't support your assertion: 6.4 million Wiis sold worldwide & 3.15 million PS3s, but the numbers would support your assertion if rephrased:

Most PS3 owners already have a Wii or intend to get one in the future.

But that would just beg the question: Why would PS3 owners be waiting to get their hands on a Wii?

testerg356958d ago

Not sure if the average household can afford ~$1000 for Wii and PS3 stuff. I think that even if Sony is able to lower the price, Nintendo and MS are able to counter and still make the PS3 look expensive.

castdreams6958d ago

'Most Wii owners alread have a PS3 or intend to get one in the future.'
I'm sorry, that's just not true. None of the people I know who are wii owners want a ps3, but even if I knew a thousand people who own a wii, and asked them if they intend to buy a ps3, and they ALL said yes, that would account for less than 0.0002% of all wii owners in the world. Yeah, that's 'most' of them alright. I don't like the wii or nintendo, but blind ignorance bothers me.

Ggame6958d ago

The PS3 (nor X360) is difference.

OneBubbleBastard6958d ago

thinking The Ringer would be a threat!

CrazzyMan6958d ago

if they would do that, then developers would be able make such amazing games, that nintendo could never dream about. =)

nintendo didn`t invent analog stick or rumble, BUT they made popular those features.
sony don`t make popular eye toy and that sux.

look those two:
http://www.youtube.com/watc...
http://www.youtube.com/watc...
just think how could you integrate these features in all games..
that would be wow, real next gen.

Show all comments (106)
60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

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twistedvoxel.com
-Foxtrot17d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle17d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7717d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

50°

Why the Wii is Such a Nostalgic System in 2026

The Wii is now a retro console. Let’s get nostalgic about an often maligned system.

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downupjourney.com
ActualWhiteMan23d ago (Edited 23d ago )

Crazy to think the WII is to the Switch 2, as the NES was to the WII back then. 20 Year difference.

jznrpg23d ago

My wife asks me to bust it out (heh) everyone once in a while to play bowling and tennis with the kids. There was a ton of slop on it but some good stuff as well.

Smellsforfree23d ago

Wii was great but boy howdy did it cause Microsoft to go on a dark walk with the Kinect and the disastrous XBox One launch that they arguably never recovered from.

Loktai22d ago

Not nostalgic for me.. I was there.. anyone who wasnt a little kid realized it was a gamecube with shit tacked onto it, it was the "joke" system and was well below even the switch in terms of comparing it to the latest machines at the time. The machine was well loved by young people and "casual gamers" who now remember it 20 years on, or in most cases more of its sales came in the 15-20 years ago range not right at launch- but again its not nostalgic for people who were "gamers" then really, just for those who ended up with one in their house, the games , graphics, interface and online features were archaic already in 2006.

40°

15 Years Ago, Mortal Kombat (2011) Saved Gaming’s Biggest Fighting Franchise

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.

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fortressofsolitude.co.za
italiangamer26d ago

"Gaming’s Biggest Fighting Franchise"

Press X to (seriously) doubt.

DarXyde24d ago

Underrated comment. I used to hate that game so much that any time my siblings asked me to play it, I just picked Hom and shut myself down mid-match.

Soy24d ago

And then MK1 killed it again.

DivineHand12524d ago (Edited 24d ago )

15 years went by so fast. I remember playing through the story mode at launch.