Now I'm not going as far as saying that the Playstation 3 has take Sony back to failure in this generation of video games, but I will go as far as saying that the Playstation 3 is Sony's biggest failure since entering the video game realm. So, what makes the Playstation 3 such a failure? Is Playstation 3 really a failure? These questions all make up what Sony should be thinking about as their video game business continues to grow.
First of all, there is no doubt that Playstation 3 is Sony's slowest selling video game console. The Playstation and Playstation 2 were huge sellers, constantly selling out and becoming the number one brand in the video game market. Both systems sold well due to their massive libraries and ability to sell compelling software and making two powerful, yet simple machines.
After years of the name Nintendo being the number one name with video games, the name Playstation became the new leader and name in the video game world. The Playstation beat out the Nintendo 64 due to the consumer and developer demand for the new media in video games, CDs. This prompted developers to choose making games for the Playstation above the Nintendo 64. This helps create exclusives such as Final Fantasy VII, Tomb Raider, and other third-party titles dominate the Playstation. The system also created a new demographic that dominates video games today.
The Playstation appealed itself to the eighteen and over market. Unlike gamers from the ages of seventeen and below, these gamers had money and could provide more profit and sales for the Playstation. The system's games still appealed to the “kiddie” market by providing platforms and great RPG's. Sony also made sure the Playstation was filled with sports games which were at their prime at the time. Playstation shattered the console market with over 60 million units sold, much more than the Nintendo 64's 32 million and Sega Saturn's 10 million. The Playstation has gone on to become the third most successful and popular video game system of all time, only behind the NES and its successor the Playstation 2.
Sony's next system is probably, if not one, the most popular and successful video game system of all time. From launch to even today, the system has sold ridiculously well and has continued to gain more popularity. Just like the first Playstation, the Playstation 2 provided a new media and feature that help outsell the main competition when it first launched. Unlike Sega's Dreamcast, the Playstation 2 had DVD. DVD was becoming a mass-market product and the demand for DVD was enormous. The system launched at a viable $299 price (just like the first Playstation) which was seen as a great deal due to the inclusion of DVD support. The console went on to sell over 100 million units! The system sold due to extreme popularity and the brand name of the Playstation. The system also bested the Nintendo Gamecube and Xbox with both systems selling 45 million units, not even selling half, of the PS2's sells combined.
Playstation 2 followed PS1's exact traits that helped it dominate the sales charts. It was stuffed with third-party exclusives and boasted an incredible library. Games like Grand Theft Auto III, Metal Gear Solid 2, Final Fantasy X, Kingdom Hearts, Killzone, and the incredible sales of the Madden NFL franchise drove sales up and continued to dominate. Playstation 2 was probably the perfect example of what a game system should be.
Then came Sony's third and current home console, the Playstation 3. Just like the PS2, the Playstation 3 was highly anticipated. Many people knew that the inclusion of Blu-Ray, another new media added to the Playstation market and the new addition of a Hard drive would make it the most expensive game system of all time. Predictions pointed to a $399 to $499 price point. At E3 2006, the price and marketing strategy was revealed. The PS3 would launch with two SKU's, a 20GB HDD version for $499 and a 60GB HDD version for $599. Many people were shocked to hear this announcement and the Playstation 3's death began to happen. Things didn't help with Playstation founder and creator Ken Kutagari's controversial comments on making PS3 an ultimate home entertainment system. People only wanted the PS3 for their great games and expansive library. Also, Sony chose to hype up the next-generation HD format, Blu-Ray, which they felt was taking off like DVD back in the PS2's launch time. The PS3 went from anticipated to the laughing stock of the video game world.
With the other two systems, the Xbox 360 and Nintendo Wii selling for much less than the PS3's top $599 SKU, the PS3 was seen as overpriced and only made for the “rich” gamer. Xbox 360's main SKU sold for $399 and Wii at a very low $249. This made many consumers buy a 360 or Wii instead when they went out to buy a game console. The PS3 didn't help itself with Kutagari's continuous outrageous comments and the discontinuation of their cheapest model, the 20GB HDD $499 SKU. The PS3 to this day also lacks a massive library. Unlike Xbox 360, the PS3 is hardly filled with great marketable titles. So, what is making the Playstation 3 such a failure?
