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Sony Vs. The Market
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Written by spoo on May 23 2006
Viewed 2639 times. 3 people liked this Blog. You can rate it below if you haven't already.
People who enjoyed reading this: cmoney2007
Im noticing the gradual, yet continual alienation of Sony and the market. Don't make the mistake of "the market" and "their market" because I could explain the differences between the two ad infinitum, but the contrasts are important. I just wont talk about them.

Focusing on the video game market as a whole, everyone from G4 to Slashdot to Time Magazine seems to think that it's made up of testosterone and beer, sweaty palms and mullets: guys in other words. For the most part it's true, but I never like making generalizations. Here's an exception: The Sony market is made up of people who buy Sony products because that's all they know. Sony is alienating both the video game market, and their own fanbase.

The PSP cost $250, so I opted to buy a used one that had a few stuck pixels, which I copied a video to my memory stick to and remedied the problem. Rumors are already flying that the PS3 will cost in the margin of $500 and $700USD. Like I said in a previous blog entry, Microsoft is playing the middleman, and Nintendo the economic underdog, which actually plays to their advantage. So what's the deal Sony?

"The cost of production is high"

Sure, combine the cost of production with obscene amounts of demand and price is going to be high. Sony, however needs to step into the 21st century and realize there are ways to curb this. If demand for a detergent is high, you can charge 20% less than your top competitor, and make more profits because of more sales. If 100 people buy a product at $30, that's more than 30 people buying a more popular product at $60. Microsoft figured this out, and it was a no-brainer for Nintendo; they have been in the console industry for a decade and a half longer than the other two. Maybe it's a thought on Sony's part that peple are GOING to buy whatever is more popular. People already missed my point in "Gaming and Status Icons" when I said gaming isn't about entertainment anymore. Having a game makes you the man. Maybe I'm wrong. Keep reading.

So what's going on? Why do I feel like Sony is fighting their market, their customers, rather than fighting their competitors? It seems Sony was doing better when they made Walkman's and CD players. Sure, the PS2 and PSP were great systems, but I remember reading a blog on this very site: both, in retrospect came up short in what consumers expected based on what Sony told us would be included. Maybe I've got it all wrong, but I feel like I'm being kicked in the shins for noticing something everyone else ignores.

-s
14:05
Comments

zero : But think of it this way. Sony expects 4 million PS3s by the end of the year. They are launching in Japan, North America, the UK, and Australia, all within a 2 week period. That's a million PS3s per territory. There will be people that will buy it regardless of the price. Sony knows that.
05/23/06  

captain : Exactly as zero says. Take Apple's recent Macbook. They're offering the exact same model, same specs, same everything, but in black instead of white for $150 more. Not because they think people will buy, but because they know people will pony the extra cash. The example is somewhat different in this case though but I think the same thing applies -- expected market demand sets the prices.

Also, consider that Sony knows a lot about the quality of games that we don't. They could be completely dissapointing, but chances are they wouldn't chance complete market suicide by pricing a console at ~$600 if they thought the difference in game quality didn't justify it.

And of course, they're a business, prices go up as years go on.

Anyway, it'll all be interesting to see how this develops in a few months.
05/23/06 Recent Blog: On and off relationship  

cmoney2007 : You know I may be new to the marketing strategies of the big businesses, but as the captain said you're always going to find people that are going to buy regardless of the price. And again you would think that you would try to sell the system for less(I mean $500-$600 who has that kind of money just lying around). Yes I know we live in the time of new generation ideas consoles and devices that change the way we live or experience new things. I can't quite see suping up a playstation 2 with a better "DVD" player and claiming at first that the system will react wirelessly with the PSP. I don't know about you but when i heard that i was amazed, i thought to myself that i had to get one after reading the specs. Then later on they decide to take microsoft's strategy of selling two systems. 20gb and 60gb yea sure a difference of 40gb not too much lost when you think of it that way. Then they silently tell you that the 20gb version is missing HDMI support, memory card readers, and it won't be able to connect with the PSP wirelessly among other things. I am a Sony fan keep in mind but the way Sony is jerkin' us around is not what i expected from them. The way they are doing things is starting to make me lose my loyalty to them.
05/25/06  

ghostblur : The PSP is hands down the best portable video game player, besides the GP2X Game System (MK2), in my opinion. I remember playing with my GBA all the time but now I can't go back to it. The graphics are just so amazing on the psp. Every-time I play Wipeout, I am just so amazed by how much more fun I have with that game than Mario Kart. The graphics have a lot to do with it. Do I enjoy having the First Season of Rome on my Memory Stick? Hell yes I do. The psp just rocks in my opinion.
08/16/06 Recent Blog: Microsoft Why?  


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