Be Kaz Hirai – Fix Sony
The 360's price is putting pressure on the PS3 - can you sort it out?Published 08/10/2008 at 10:00 by Michael
It’s time to get shopping for Christmas – ok, ok, just pretend – and these are your options:
Xbox 360 Arcade – £120
Gears of War 2 – £40
Total – £160
PlayStation 3 – £280
LittleBIGPlanet – £40
Total – £320
Which are you going to pick? Well, ok, not you, because you already have a PS3, but the parents shopping for Christmas, what are they going to do?
Obviously, there are differences between a 360 Arcade and a PS3, e.g. lack of a HD and lack of free online play with the 360. But will the Christmas shoppers know or care? Will Little Johnny want a gung-ho blast-em-up that credit crunch affected parents can afford, or an experimental, cutesy platform game that requires banks to go bust just to finance the purchase?
What can Sony do to turn this around? Is a price cut all that’s needed? Is better promotion of the differences between the two systems the way forward?
Come on then, you’re Kaz Hirai for the day: What are you going to do?
Comments
Please note that all comments are the opinion of the individual author and not TheSixthAxis.
morrelli43 | 08/10/2008 10:02
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Click on that ad below this news story that says ‘A new PS3 for £44.31?’
Michael | 08/10/2008 10:07
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I can’t see Kaz doing that, to be honest.
cc_star | 08/10/2008 10:15
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Sony can’t do anything
They are not in the same stage of the development cycle to have more price drops
My idea was to have new SKU’s which add value to the high price point, and they already announced that!
The idea to include BluRay, HDD and Wifi in all models is what make the ps3 great, it is also what make it expensive
I saw another article somewhere else comparing the 360 to the iPod, where Apple have realised that huge profit margins aren’t in the initial item sale but in accessories, add-ons and extras
Where all you get as standard is an iPod and their basic headphones, you have to buy a mains charger, and nicer case etc…. The margins on these extra’s are huge
360’s are being sold at a loss, but Microsoft are paying for this loss with fee’s to play online, people buying wireless kit, HDD’s etc…
This is their business model
Sony have a different one
For the time being (especially with 360 outselling the PS3 in Japan) it looks as though Microsoft’s business plan is correct
Sony’s greatest strength (everything included, but higher unit price) is it’s greatest weakness (higher unit price means less units sold)
cc_star | 08/10/2008 10:17
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Oh, and what I would do
Advertise!
Roarster | 08/10/2008 10:21
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I’d buy a Wii. The PS3 is too expensive but the Xbox has those adverts with the kid’s brain scooped out. No way do I want that for my kids.
Gamoc | 08/10/2008 10:23
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Advertise the living hell out of everything good about the PS3 – especially LBP and the LBP bundle. I very, very rarely see PS3 ads on tv, but there are £120 360 ads that people are going to fall for simply because it’s ridiculously cheap (if also ridiculously shit).
Advertise, dammit.
crow-sama | 08/10/2008 14:12
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yeah even if a game is coming out for both 360 and ps3 I only see the advertises for the 360 version
MuggleMind | 08/10/2008 16:08
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I was shocked last night to see a Wollworths advert for PES 2009. Why was I shocked? It only mentioned the PS2 and PS3 versions! We need more ads like that.
Los Havros | 08/10/2008 19:38
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Same here, crow-sama- you’d think that the 360 had more exclusives than it did already!
And yea Gamoc- I’d do the same! I’d plaster all the TV channels with plenty of PS3 adverts. I’d also start waving some cash at 3rd party developers as the current system obviously isn’t working.
Perhaps radically, I’d throw together a 40GB PS3 bundle with LBP for £250 all in. Seriously. It would lose quite a packet, but each PS3 sold buys more games… in theory.
Whilst I was at it, I’d check out those margins on peripherals and stuff. That’s what I’d do if I were Kaz for one day.
Pixl1983 | 08/10/2008 10:25
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I would reach out to the mainstream media with marketing that explains where Sony imagines the PS3 would fit into people’s lives.
Setting the scene – an average living room of an average family. Everything centred around the PS3.
Show off each member of the family sitting in the same chair one by one then eventually being joined by the other members of the family. All doing different things: Dad watching a Blu-ray, lil’ bro playing LBP, big sis surfing the net, mum using Play TV and then all playing buzz.
Finish with showing off what the 360 doesn’t have: Free online, built in HDD, no need to upgrade and (for the love of god) tell the world that if your PS3 gets stolen Sony will trace it for the police!!
That’s the kicker. If parents are aware of this it could possibly sway them.
cc_star | 08/10/2008 11:03
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“Show off each member of the family sitting in the same chair one by one then eventually being joined by the other members of the family. All doing different things: Dad watching a Blu-ray, lil’ bro playing LBP, big sis surfing the net, mum using Play TV and then all playing buzz.”
You should work in TV advertising…If Sony don’t do that they deserve to loose billions
GamerRiley | 08/10/2008 13:40
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Brilliant idea
fredrikpedersen | 08/10/2008 15:00
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Replace netsurfing with SingStar and Itll be perfect.. the web browser on the ps3 is crap, but the SingStar thingy could work. Her and her friends, maybe boyfriend playing singstar. If that wouldnt move consoles then what would.
And to Sony, stop these fucking useless ads at football matches, go on TV instead. And their ad sucks, they had a entire long commercial running on Fifa 09 where you barely saw the Sony brand or the PS logo. STOP adverting for EA, advertise for your own games ffs!
sibbor | 08/10/2008 10:30
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I think Sony should release different Christmas packages – especially a one cheap package containing the PS3 system, a DS3 controller + the offical Bluetooth headset. And some more expensive (yet valueble) once – media package (remote controller, BD movie/-s) and a major game package.
Sony should sell the packages CHEAP during November, December and January with (sad smiley) a major loss, so more people get the PS3 system.
Also, different campaigns about the PS3 system and its’ capabilities:
* Media: BluRay, DVD upscaling, HDMI + 1080p support, PlayTV (EU at least)
* Internet Connectivity via cable or WiFi: surf from the sofa with keyboard and mouse support (incl. keyboard addon for the controllers)
* FREE Online game play with friends from all over the world – with support for voice chat via ordinary USB and Bluetooth headsets!
* The great, ever expanding game library – promoting not only first party titles or other exclusive titles, but also major multi-platform titles!
* Social stuff – talk via Skype (release it to the PS3 Sony!), talk in-game, via chat and or via…
* … Home and PlayStation Network.
* PlayStation Store: Full & demo download, Video Rental and video/game trailers, wallpapers and customizable content for XMB (themes)
Sony should fix the following before Christmas:
* Bundle the upcoming offical Bluetooth headset with consoles
* Home (+ game invites)
* Skype Support (VoIP) from XMB (the PSP has it)
* Replace NetFront browser with Google Chrome (incl. better Flash support)
dirtyhabit | 08/10/2008 10:41
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I don’t know why they dont use the “morphing” PS3 advert.
The one with the “do you want it” tune. An excellent advert that must have cost a few quid to make. Why don’t they get their moneys worth out of that?
dpb135 | 08/10/2008 10:44
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Atm if parents are shopping in sainsburys they will be picking up arcades for £99 and 60gb versions for £140. That is stupidly cheap for a machine with some great games on it.
Sony need to drop the price, end of. Im sure when LBP is out we will see some real advertising but a price drop will kick start sales as history always proves. They need to mention free online play & blu ray apart from that not much else i think would persuade a consumer to buy one over the other.
toutski | 08/10/2008 11:22
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I think you are right. Game are still selling ps2’s for £99. 360’s will be flying off the shelves coming up to Xmas at this price point.
fredrikpedersen | 08/10/2008 11:05
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I though the big Sony guy was Phil something.. :/
seedaripper1973 | 08/10/2008 11:12
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its not looking good…. all i can say is ‘advertise’ the living fuck out of what the console is capable of..i.e value for money in the long term (most people have HDTV’s now, so push blu-ray, push the free online, push the web capabilities, push HDD and wi-fi out of the box, push the music and pictures storing..and most of all…PUSH THE FUCKIN GAMES SONY!!!)
in one little soundbite…ADVER-FUCKING-TISE!
(nintendo and M$ are on the telly, more than that prick Graham Norton)
Spotter5 | 08/10/2008 11:19
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Well i would go for the PS3 because it is the better console…
betahoven | 08/10/2008 11:20
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I’m not sure Little Jonny is really part of the target market.
Eldave0 | 08/10/2008 11:38
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then why release loads of games for little jonny if the console isnt aimed at little jonny?
betahoven | 08/10/2008 13:20
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Which games are they releasing for kids/teenagers this Christmas? LBP? Maybe, but that has plenty of adult appeal too. Singstar Disney? I just think Sony want the PS3 in the living room, not the bedroom, and they’d much rather attract Little Jonny’s parents than Little Jonny himself.
fredrikpedersen | 08/10/2008 15:14
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Something that might be of interest:
http://www.computerandvideogames.com/article.php?id=198851
Sony isn’t going to drop the price for this Christmas
Barnabe Jones | 08/10/2008 15:15
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I think you hit the nail on the head with “But will the Christmas shoppers know or care?”
In my own humble opinion, I think Sony should put more of its focus in to marketing the PS3. They should make it common knowledge that the Network is free, Blu-Ray Drive, Home, Wi-fi Internet connection, etc, etc… If they can really get the word out about all of there advantages, and the value the PS3 brings to the table compared to its rivals – then they would not have a problem at all. They can leave there prices as they are, but they have to make the benefits known.
fanpages | 08/10/2008 17:47
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Xbox option: £160
Number of interested players in game title within ‘typical’ 2+2 family: one, possibly two.
Further expense incurred within a month when game has been completed, and online is too expensive when Christmas credit card bills roll in.
PS3 option: £320
Number of interested players in game title within ‘typical’ 2+2 family: four (+ Grandparents, + cousins, + Aunts, Uncles, & other extended family members on Christmas Day)
Number of games required for next year: none.
Conversation in Xbox-family home on 25 December…
“Turn that stupid shooting game off & play charades with everybody else…”
BFN,
fp.
seedaripper1973 | 08/10/2008 20:18
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good ol’ fanpages..cannae make head nor tail…
fanpages | 08/10/2008 20:56
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I’m summarise my summary:
The PS3 console & game title outlay above is initially greater than the Microsoft bundle, but “LittleBigPlanet” will appeal to a much wider audience for a longer duration. The long-term cost of ownership will be much lower.
“Gears of War 2″ may well be an improvement on the original title in the series, but it will appeal to a restricted demographic, and more game titles will be required to keep the same range of people amused.
The initial purchase price of the console hardware is relatively insignificant to the overall cost of the software catalogue to support it over the entire ownership period.
Put up the PS3 + “Resistance 2″ vs. the Xbox 360 + “Gears of War 2″ to make it a real fanboy fight
BFN,
fp.
Eldave0 | 08/10/2008 14:00
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true, but then again the 360 is pretty much the same kettle o fish. the wii is the only console truely aimed at kids really these days
fredrikpedersen | 08/10/2008 15:01
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Let’s hope it stays that way.
Eldave0 | 08/10/2008 15:03
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true that…