Issue 153

PS3 - a magic number?

26th February 2007

With Nintendo and Microsoft stealing a march on the gaming market, can Sony regain ground with the PS3? Delays in releasing the long-awaited new console from the Japanese giants have allowed both the Wii and the Xbox 360 to captivate the imaginations of gamers both in Japan, and also in Europe, where the PS3's launch was set back to March.

The early signs for Sony are ominous, if reports from Japan, where the PS3 has been on release since November, are to be believed. According to one source, the Nintendo Wii shifted around 405,000 units in January of this year, compared to a miserly 148,000 PS3s. At a ratio of nearly three-to-one in favour of their fierce Japanese rivals, it already represents a massive struggle for Sony to regain their foothold in the gaming markets. That's without even contemplating how European consumers may react when the PS3 goes on sale next month, provided there are no more problems.

Initially, the PS3 was supposed to be launched almost a year ago, but it has proved to be Sony's Blu-ray technology that has been the trouble in getting the console onto the market. It was further problems with the same technology that prevented the European launch coinciding with Japan and the United States, and ultimately Sony look set to pay the price for it.

Not for the first time in the company's history, Sony have taken a punt on technology that differs from that of competitors. Blu-ray will be in direct competition with High Definition DVD and it is a brave gamble for Sony. There is a precedent, however, for Sony's convictions in backing their own technology. Some could mistake that for arrogance, and only time will tell whether they have learned from the mistakes that rendered Betamax obsolete during the 1980s as VHS took off. It is arguably the case that the markets in which Sony have dominated - both gaming and personal music - have forced Sony into a position where they are now playing catch-up. Apple and Creative have revolutionised the music industry with the MP3 player, so for Nintendo and Microsoft to be assuming the lead in the gaming market is something that Sony can't afford to let happen.

The PS3 is billed as an integrated system that allows not only gaming, but networking too. It does, however, come at a price. The base model, at 20GB capacity, is expected to cost at least £335 - and that's only being released later in the year if there's a demand for it. It doesn't compare too favourably upon the Xbox 360's 20GB unit, which costs £279.99 and, of course, the Wii which clocks in at a mere £179. It should be pointed out that there is also a 60GB version of the PS3, and that is expected to be in the region of £425.

Sony still express confidence and optimism for the new console when it comes to European shores next month, but a culmination of repeated delays, expected high costs, and compatibility issues surrounding DVD technology have left the PS3 with an uncertain future. Not for one minute would one suggest that the commercial failure of the PS3 would spell the imminent end of Sony, but a huge amount of faith has been placed in this console. Sony needs instant results from the European market if only to assure the company that there is still a place for the PlayStation brand in the gaming market. It needs to prove as innovative as the Wii, and offer something more than the Xbox 360. At face value, the PS3 doesn't seem to meet either of these two conditions, and the ultimate danger is that Sony have yet again been outgunned by their rivals.

Pete Hayman