Analyst: Recession Could Affect PlayStation 3 Sales the Most

[PS3 News]

What happens when people are reluctant to spend money? Well, they're reluctant to buy a $400 games machine, that's what.

Blu-ray predictions are down due to the struggling economy. PS3 sales should also be affected, an obvious http://www.edge-online.com/features/recession-could-sting-mainstream-platforms made by analyst Piers Harding-Rolls.

"At the top end, the PS3 with its high price is arguably more likely to be impacted by a recession than the other platforms. This may prompt consumers to consider other consoles or wait for the PS3 price to drop."

But, sluggish sales of the PS3 won't be the only outcome of a recession economy. Credit has dried up in many areas, meaning developers of games may be forced to cancel or stall projects, before funds become more readily available.

"Where I do see an impact is with regards to access to credit for publishers that look to borrow to invest in content production. Obviously credit is less available generally so this may result in cost cutting and some projects being canceled and put on hold."

Of course, when developers and publishers can't try something new, you know what they turn to: less original IPs as investors become increasingly wary of games with ambiguous potential. More PlayStation 3 News...

[CyanCaze]

You know who Sony needs to turn to for their next console? Me of course. I know what gamers want and what they will pay for. What to do in a bad and good economy. And how to leave the stupid stuff behind.

There is no rescuing the PS3 from the Economy "This year" however. Blu-ray is just too much and too many people are struggling to get food. On top of that, people who only see the price will be buying Wii's.

Sony it self is in trouble, however they are miss understanding what they need to do. Hope that we are not left with only Microsoft as a hardcore gaming platform. *Shivers*

[sorceror]

Doing adds that directly target the competition is a risky move, because you tent to reinforce the idea that the competition has better brand recognition or is more popular. But Sony may need to do that.

Put up an ad with a PS3, then an XBox 360 w/hard drive, wireless adapter, monthly Live bill, plus a Blu-ray player. Add a little "ka-ching" cash register sound as you show each extra. Don't list actual prices, let people find out for themselves - maybe show a little bar graph with the 360's climbing higher than the PS3s.

Unfair? Not telling the whole story? Sure, but that's what ads are supposed to do. People are especially price-conscious right now, so Sony has to position the PS3 as a better overall value.


Specifically comparing yourself to the competition is a risky move in advertising, since it gives the competition some recognition. But people are more cost-conscious now, Sony has to position the PS3 as a better value.

So, a commercial showing a PS3 (include little things like the web browser and maybe a motion-control game like High Velocity Bowling - just show 'em, don't draw specific attention to 'em. Make people think, "Huh, I thought only the Wii did that.").

Next to this, show a 360. Then the hard-drive add-on (little ka-ching sound). Then a wireless controller (ka-ching). Then the Wifi add-on (ka-ching). Then a monthly Live bill (ka-ching). Then a Blu-ray player (ka-ching).

Don't show specific numbers, but show a little unlabelled bar graph, where the 360's column starts out lower but moves higher as you add the stuff.

Unfair? Not the whole story? Sure, but that's what ads are supposed to be.

[tokiskilamama]

400$ for a console it is too much, but it is a good machine. I believe that her ps3 is bandaged very well.

[b4rtsimps0n]

Originally Posted by sorceror Specifically comparing yourself to the competition is a risky move in advertising, since it gives the competition some recognition. But people are more cost-conscious now, Sony has to position the PS3 as a better value. So, a commercial showing a PS3 (include little things like the web browser and maybe a motion-control game like High Velocity Bowling - just show 'em, don't draw specific attention to 'em. Make people think, "Huh, I thought only the Wii did that."). Next to this, show a 360. Then the hard-drive add-on (little ka-ching sound). Then a wireless controller (ka-ching). Then the Wifi add-on (ka-ching). Then a monthly Live bill (ka-ching). Then a Blu-ray player (ka-ching). Don't show specific numbers, but show a little unlabelled bar graph, where the 360's column starts out lower but moves higher as you add the stuff. Unfair? Not the whole story? Sure, but that's what ads are supposed to be.

I think no advertisement will rescue the ps3 this year, unless Sony drops the price. All the mothers and fathers looking for a present this holiday season won't look at that, they just want to make their children happy with a console for as cheap as possible, so they'll walk right past the ps3 in the stores and look at a Wii or a 360. They don't look at the games available for the consoles or the extras you can buy for it to make it equal to the ps3. (mostly because they don't know anything about them)

[mrmiller24]

this is ridiculous, the recession is not only going to affect sony with their ps3, the game console market on the whole will suffer because its a income inelastic market, meaning when people have less money, its easy to cut it from their lifestyle until more money becomes available, personally i think that the whole market from hardware to software will struggle untill we all get a little more money again because people will just choose not to spend £100-£300 on a console as that will get them more important items.

its silly to single out the ps3 from the rest of the market.. companies struggle during economic slowdown - fact.

[sorceror]

Originally Posted by b4rtsimps0n I think no advertisement will rescue the ps3 this year, unless Sony drops the price.

I don't think Sony can drop the price. The PS3 has a lot of goodies in it, and the hardware itself is built better than the 360 - failure rates of PS3s have been much lower than 360s. That costs, and in a down economy Sony's going to be reluctant to sell them at a big loss. If they could drop the price, I think they would.

So, they have to go with what they have. In that case, making the "better overall value" pitch is their only hope.

[GGG20]

I don't think the recession will effect the ps3 sales.. especcially now with christmas time.. Anyone who hasn't a ps3 wants one.. further it's a damn good machine.. I think personally is much better than a xbox of wii.