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Has the PS3 left it too late?
Has the PS3 left it too late?
With Sony delaying the European launch until at least March 2007 we ask if the company left itself with an impossible task of catching Nintendo and Microsoft in the race for the next-gen crown?
Black Wednesday isn't a phrase known in the gaming world - that is until Sony announced on 6/9 that it was delaying the European release of the PS3 until at least March 2007. Quite literally, hundreds of thousands of European gamers let out a collective sigh of disappointment. This was to be Sony's year - the PS3 Christmas. But a little under eight weeks before the hugely hyped November launch date, Sony pulled the plug on possibly the biggest product launch Europe has ever seen.
And the bad news didn't stop there. As a result of technical problems in the PS3's Blu-ray drive, stock allocation has been severely cut. Ken Kuturagi, head of Sony Computer Entertainment, commented in an interview with Associated Press that just two million consoles are to be shipped to the US and Japan by the end of the year - half the original forecast. But the news is worst for early adopters looking to grab a machine at launch day. Only 500,000 will be available initially - 100,000 are earmarked for Japan and 400,000 for the US. Considering the PS3 was initially scheduled to be launched at the start of 2006, the continued delays and high console price (the budget package with a 20Gb HD will retail for approx 499 Euros or 335 GBP) has turned a stuttering start into a stagger.
Microsoft managed a simultaneous global launch of the Xbox 360, Nintendo's Wii has announced a global pre-xmas launch (bundled with free games) for under 200 GBP. Sony has the most expensive machine and the kind of stock shortages that almost fails to make the PS3 a mass-market product. The men in suits are very worried indeed.
Ken Kutaragi has conceded that Sony's power as a hardware manufacturer is "in decline". Speaking to Reuters in the aftermath of the delays and shortages, the PlayStation 3 head honcho said, "If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true." When the boss say's something like that - everybody listens. Not least of all, the competition.
Microsoft is looking to seize the advantage and capitalise on its first to market status. A range of budget games have already been announced. There is also a tempting new bundle offering a free copy of cutting edge racer, Project Gotham 3 and an extra controller for the knockdown price of 299 GBP. But most importantly, Microsoft is focussing on the games. This will be the second Xmas for the Xbox 360 and the console is beginning to grow an intimidating arsenal of quality games to fall back on. Both Pro Evolution Soccer 6 and FIFA 2007 are Xbox 360 exclusives - with no look in for Wii or PS3 owners. Then there's Call of Duty 3, Gears of War and the hotly anticipated new Splinter Cell title. To name but a few.
More than a million Xbox 360s will be in British homes by the end of the year, with the company hoping to ship a whopping 10 million globally. With Nintendo's Wii offering a cut-price alternative and focussing on more 'fun' games (some of which come bundled with the console) it's becoming increasingly hard to see where Sony's new high end, expensive and ultimately, very, very late console will fit into the grand scheme of things.
Analyst David Cole from US based DFC Intelligence believes that Xbox 360 and Wii are likely to make huge gains in light of the continued delay, stock shortages and high console cost. A recent 600-page report from the well-regarded consultancy group suggests that 1) the high price of the PlayStation 3 is going to slow overall industry growth, especially for software and 2) if Sony does not change its current strategy for the PS3 the system will probably end up in third place in installed base.
A challenging time certainly lies ahead for Sony. And if a delayed European launch wasn't bad enough, the new spring launch dates coincides with the release of one particular Xbox 360 game that any of the competition would like to avoid - Halo 3. The battle of the giants is about to turn into a toe-to-toe slugfest. We'll be sure to have a ringside seat to not miss any of the action.
