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Friday, August 24, 2007

PS3 continues to lag behind 'cheaper' rivals

The race is on for the coveted Christmas top spot in the lucrative video game console market, according to analyst firm DFC Intelligence.
Sony’s much-hyped PlayStation 3 (PS3) languishes in third place globally behind the Nintendo Wii in first place and Microsoft’s Xbox 360 in second, with price being the main differentiator, DFC claimed. In the UK a PS3 console costs more than £400, which is encouraging more people to either wait for a price cut or invest in the cheaper Nintendo Wii or Xbox 360, the analyst said.
Alexis Madrigal, analyst at DFC Intelligence, said: “In the UK Sony has been stronger than it has been in the rest of the world. While Nintendo’s console has had obvious success, Sony’s PS3 is a very strong brand among videogame consumers of many different types. The biggest issue holding Sony back is simply the cost of the console, which has priced many prospective consumers out of the market.
“If Sony can present a lower market price, the PS3 could retain the largest market share in the UK. However, we shouldn’t count out the Xbox 360. The UK is the best market in Europe for that console.”
Although DFC said it was too early to reveal exact market share figures for the latest wave of next-generation consoles in the UK, the previous 128bit generation was dominated by Sony’s PS2, with 73 per cent of the market. Xbox was a distant second and Nintendo’s GameCube was in third.
Madrigal added: “The UK games market is going to be on a growth upswing through the next few years. The biggest worry is that it has been difficult for it to maintain price points in the software market, which has been bad news for game publishers.”
Jonathan Fargher, Sony Computer Entertainment Europe representative, told CRN the vendor would not be slashing prices to win market share.
“We have no plans for a price cut in either the UK or Europe at this moment in time. We introduced the PS3 starter pack last month (CRN, 20 July), which offers the best value to our customers. We believe it is all about content on the PS3. We will be making a series of announcements and releases that we are sure will act as a great incentive for people thinking of buying a PS3.
“We admit there has not been a library of AAA titles for the console since it launched, but that is going to change. As always, our focus is not just to concentrate on our current audience, but to bring in new gaming enthusiasts as well.”

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