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Well, it seems like today is the day to weigh in on concerns over Sony’s place in the industry, what with all the discussion over price cuts and lack thereof, and the statements made by Tretton. So, here goes:
I think the price cut is a distraction from bigger problems. I honestly think it isn’t price that’s really killing Sony right now, it’s the absolutely atrocious marketing strategies Sony’s been utilizing. Their attempts to market their console and their games have had more stops and starts than a traffic jam in New York City during rush hour, and it’s almost as frustrating, too. Instead of focusing on the differences between themselves and their competitors, Sony decided instead to play up their ability to best their opponents in the hardware department. Sony has repeatedly failed to recognize the beauty of the marketing strategies of Microsoft and Nintendo. Microsoft’s aggressive expansion into the consumer base allowed them to absolutely destroy Sony on the software front; it doesn’t matter if the PS3 is a more powerful system or not (which, frankly, I don’t think it really is, and if it is it doesn‘t matter nearly as much as Sony wants it to) when every home has an Xbox 360 and they have essentially the same games. Nintendo’s brilliant strategy of offering something different allowed them to slip into previously untouched markets. Sony’s initial marketing strategy was a complete disaster. It basically consisted of “Wait for us, we’ve got better hardware.” Some waited, but others recognized the value of the 360 early, with its quickly expanding library thanks to its lightning fast explosion into the consumer base. And while Sony was still working on their console, Microsoft had already begun the second stage of its marketing plan: get more developers working on their framework and producing games. Microsoft had done the inconceivable; they had gotten their console into so many households that most games that might have been exclusives instead go multi-platform in order to take advantage of the massive install base of the Xbox 360. Remember how Assassin’s Creed was a PS3 exclusive, and then it wasn’t? Or Final Fantasy XIII, perhaps? Now, rather than admit or realize they’re actually in trouble, Sony has the sheer audacity to expect that their hardware will still come out on top because it’s “better”. Then, in a not-so-quiet fashion they start stripping down PS3s in order to cut the cost of making them. For me, this was basically like Sony screaming “Oh God, oh God, we screwed this up, but we can fix it!”, just without the honesty of actually saying it. It was in this interim between terrible marketing that Sony had its one brilliant ad campaign. It reminded me why I was interested in the PS3, and why I still had a little inkling of hope for Sony: Metal Gear Solid 4 was on the way. Remember this ad? I thought this was where it was going to turn around for Sony. They’d finally caught on and began to advertise the PS3 primarily as a game system, only gently touching upon the concept that the PS3 could be a multimedia platform of monolithic proportions. It was like somebody smacked Sony over the head with a 2x4 and the amnesia finally cleared up. There’s the Sony I know and love, it’s still in there! It was during this interim that I finally got a PS3; the 80GB model, packaged with MGS4. That’s right, I bought the PS3 for ONE GAME, and the potential promise of another in Killzone 2. Since then my library has expanded to include Valkyria Chronicles, Resident Evil 5 (didn’t feel right to be buying that on the 360), Dead Space, Street Fighter IV, and a few others. Then they got conked on the head again and dove headfirst into the miserable joke that has become of Home. Sony’s attempt to market Home as a reason to buy their console is just flat out ridiculous. It’s gone from being a little sideshow to becoming Sony’s main “draw” for the online community; it’s a great big joke that everybody seems to get, except for Sony. From there Sony moved to their networking campaign, PSPs on the go, in the hands of every trendy kid on every street corner, Playstation Network providing movies and demos and games. Oh no, Sony! No, no, no! Don’t tell me I need to spend another $150 to $250 to get the most out of your service! And still Sony has the audacity to claim that the PS3 will conquer because they’re committed to a decade of service. So when we’re buying the next Xbox, and Microsoft’s still got a leg up on Sony, that’s when the PS3 will really start to kick into gear? In the end, I love my PS3. I love everything it can do. I can seamlessly go from direct connect to wireless at the press of a few buttons, thanks to internal WiFi. My model can do backwards compatibility. My controllers don’t need batteries. The PSN store is easier to navigate than Microsoft’s Xbox Live Marketplace. There’s no hidden extra charges thanks to a wacky, self-determined currency. The cost of the PS3 isn’t the problem; Sony’s schizophrenic ad campaigns and marketing strategies have confused the consumer base so much that people don’t know what the identity of the PS3 is. Does it cure cancer, Sony, or does it play videogames? I think, price cut or not, the real problem is that Sony hasn’t figured out how to market its console yet. I think this problem is driven by Sony’s inability to recognize that it is no longer the top dog, and it’s only getting worse with every day that they have the sheer gall to claim that the battle hasn’t been fought yet. The battle’s been fought, Sony, and you’ve lost. You’ve lost hard. And the war’s not over yet, though it soon will be if you don’t recognize what’s happening to you, and why.
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This is true of pretty much everything ever. Speak to people in the terms that they care about in the context that they care about. Sure, your hardware is "more powerful", but that doesn't mean a got-damn thing without a wealth of demonstrably superior, exclusive titles.
Your argument/assessment might not cover EVERY aspect of why PS3 sales are allow, but I most definitely agree with what you highlight as the biggest reasons Sony's dropping the ball.
Good read though, thank you :D
Now look, I'm the first one that wants a price cut so many others can pick up a console and enjoy some of the great games that have come out over the past few years, so don't get me wrong. But my point is that the PS3 NEEDS a redesign, it needs CHEAPER hardware, CHEAPER manufacturing, and possibly LESS features. This is where the PS3slim comes into play, if they can make slimmer console cheaper, which is cheaper to build and ship, plus possibility of less features (no wifi, or something), then they could put out a system that is cost realistic.
So, you're right, we do need a cheaper ps3, but the cost of the current one fits the bill, you're getting a good deal when you add up all of the features, but 399-499 is a huge amount of money, and we are in a recession, and times are hard for some people. The slim needs to come out for the ps3 to sell well, but otherwise at least think about WHY the price is what it is, and why they CANT lower it, they are a business, they have to make money. Just look outside the box, and try to see things from their shoes.
Thanks for reading! I wasn't sure anybody would be interested.
@Funran,
I'm not sure you actually read what I had to say. I don't care about the price of the PS3, whether it stays where it is or drops, it doesn't mean a thing to me. I paid $500 for my PS3, and as far as I'm concerned, every penny of that was worth it. As far as I'm concerned, Sony's biggest problem is marketing, not pricing.
I disagree on a couple things though. I think the 10 year plan is meant to work out like the PS2, where they continue to support it for 10 years. It may not require the PS3 to be the one and only system for a decade.
Having the PSN also service the PSP doesn't necessarily cut into the available PS3 content. There aren't a finite number of addition slots every week and notices about cut PS3 content to accommodate PSP updates. The presence of stuff you can't use hasn't robbed you of things that you can. I guess it's a more positive statement of the same thing, but whatever.
Like you said, Sony's biggest problem isn't pricing...it's marketing.
I guess I got a bit out of line on the PSP thing. To be completely fair, those were more PSP ads than Sony ads, as well. I love my PSP, too. Right now I've got more games for my PSP than I do for my PS3, not that that's a bad thing.
I suppose my problem with that was more that Sony seemed to have semi-abandoned advertising the PS3 itself in favor of advertising their network with Home/etc.
I've had a PS3 just after it's launch, and I too think their marketing strategy is rubbish, hence why I never see PS3 averts on TV unless it's bundled with a phone, but I defintely think it's worth the price.
Sony just need to get their act together. If it were up to me, I'd get most of the PS3 owners on Dtoid to march on down to their headquarters and sit down and tell them what they are doing wrong. Honestly, that would work (if they listened) :)
But anyway I think some time this summer I will sit down and analyse the facts and the figures and the research and get a long blog out of the way about what should be done with this situation.
Good blog anyway :)
I'm glad I bought a launch PS3... even at the outrageous price of $700. Canadian dollars I feel I definitely got my money's worth... and I still have 4 USB ports, close to full backwards compatibility and I've had no problems with it. I suspect that the calls for a lower priced PS3 will result in some form of cuts... though I have no idea what they could cut (they've already cut BC and some of the ports to lower the price). Maybe they could cut the HDD and have people save to flash drives or have to buy a special PS3 HDD "add on" unit, or a wifi add on unit - I just suspect it would result in a gimped unit, which seems to be what people want (especially as many seem to want it primarily as a secondary system).
A good read... but in a way it will be sad if they give in to public pressure and bring out a gimped lower priced PS3. People really won't know what they were missing out on for the extra few dollars.
The marketing is really, really bad... but I don't know that it will make much of a difference at this point. I suspect a bunch of Sony execs are already sitting in a room somewhere designing a cheaper PS3 Slim unit or some such thing.
:(
I'm not sure how else everyone would feel about it, but after all, Sony is selling the PSP3000 and Go simultaneously so it's not impossible.
Personally, I don't have a problem with the price point, but I do have a problem when they took out the backwards compatibility. I'm sure this isn't a big issue to some, but I only have space for either the PS2 or a still far-off PS3. Since the majority of games I still play are PS2, I don't see any reason to get a PS3 since I missed out on the first batch that had it as a feature. Removing BC was a piss-poor move on Sony's part to keep their PS2 sales as high as possible. It's a smart business move, but it gives a person one less reason to consider the PS3 purchase.
I don't know if you can still find them this way, but the 80GB models that came with MGS4 (NOT the new MGS4 & KZ2 package) were backwards compatible. Mine works just fine.