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Sony's PS3 A Sinking Ship: Sales Plummet
12/22/08(Mon)10:13 No.24551945Sony's (SNE) PS3 is dying on the shelves.
Alone
among the three major videogame consoles, sales of the PS3 are down
about 19% from November 2007, according to the latest stats from the
NPD Group. Sony was only able to sell 378,000 PS3s this November,
compared to 466,000 last year.
And the problem for Sony isn't
the recession, it's the PS3. Microsoft (MSFT) put up respectable
numbers with its Xbox 360, selling 836,000 units vs 777,000 in November
2007. And Nintendo's (NTDOY) Wii continues to dominate the market, more
than doubling sales from 981,000 to 2.04 million.
So why is the PS3 flopping so badly?
1. It's the most expensive console on the market, $150 - $200 more than
its rivals. Even if you believe the video game industry is
"recession-proof" (it isn't), a tanking economy makes consumers more
price-conscious. 2. The PS3's big bonus is its ability to double as
a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The
differences between Blu-Ray and DVD are hard to see on a TV less than
50". 3. The PS3 just doesn't have any must-have titles exclusive to
the console. "LittleBigPlanet" has generated decent buzz but isn't a
game-changer, and neither is Sony's new virtual world "Home."
There's
really only one option left for Sony to remain in the game: deep price
cuts, and not just for people with good credit. Tell yourself the PS3
has superior graphics if it makes you feel better, but a $400 console
with a mediocre game library simply cannot compete against an Xbox 360
priced at $200 in this economy. |