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Sony exec talks about PS3, and why the Wii is an "expensive niche console"

July 14, 2008 in News comments 31

Wedbush Morgan Securities analyst, Michael Pachter, recently talked about the Playstation 3 and what Sony needs to do to get the PS3 out of last place in sales.
Try telling that to Sony Chief Executive Officer Howard Stringer who tells us why he doesn't consider the Wii a competitot, why PS3's price will remain unchanged, and why he believes the Wii is just an "expensive niche console" in comparison to the PS3...

Microsoft will keep the price of the new machines unchanged at $349 and drop its 20-gigabyte consoles to $299 while supplies last. That compares with a $399.99 price tag for a 40-gigabyte PS3 and $249 for Nintendo Co.'s top-selling Wii.

"This battle for second place is quite relevant," said Wedbush Morgan Securities analyst Michael Pachter in Los Angeles. "They lose revenue stream for years ahead based on what people buy."

Wii isn't a rival to the PlayStation 3 because it doesn't offer the broader features of the Sony console, including the ability to watch movies and access the Internet, Sony Chief Executive Officer Howard Stringer said in an interview.
"I've played a Nintendo Wii," Stringer said last week at the Allen & Co. media conference in Sun Valley, Idaho. "I don't see it as a competitor. It's more of an expensive niche game device. We're selling a lot of PlayStation 3s now and it's still the best way to buy a Blu-ray player."

Sales also were harmed by the console's initial price of $599 and the quality of games available. Developers needed about a year to learn how to create for the PS3, which uses nine processors to create high-definition graphics. Sony introduced its $399 model in November. There are no plans to lower the price again in response to a Microsoft action on the Xbox, Dille said before Microsoft's announcement yesterday.
"The price has been addressed," Dille said. "We are at $399 and I think that's right in the wheelhouse for a lot of people, especially those who have high-def in their homes."
Miss Razz via bloomberg.com »
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  • 3
    Sakuraba Neku Jul 14, 08
    quote
    Wii isn't a rival to the PlayStation 3 because it doesn't offer the broader features of the Sony console, including the ability to watch movies and access the Internet
    Wat.
    • 0
      Cruxis Mana Jul 14, 08
      I think he's referring to the fact that you have to pay for the Wii Internet Channel.
      • 0
        Gillies2006 Jul 15, 08
        You didn't have to pay for that if you downloaded it earlier.
  • 9
    Akira_EX Jul 14, 08
    Wii is expensive and niche?

    What does that make the PS3?
    • 1
      Zero and X Jul 14, 08
      It means the economy is worse than we thought.
    • 0
      redneonfish Jul 15, 08
      If you take the PS3 for what it's supposed to be. A home entertainment system, and not just a games console. It's fairly cheap for what it is.
  • 0
    BlackLabel Jul 14, 08
    Cheap? I mean if you think about it Nintendo are charging you $180 or whatever the going rate is for a Wii, this is essentially a repackaged Gamecube a system you can buy now for $20, that makes the controller the expensive part of the console. Atleast with the Playstation 3 they can back up why it costs so much i mean if you think $300 is alot then find out how much it costs Sony per unit. They could charge us $900 for the Playstation 3 and they would only then be breaking even on what they spend, overall i kind of agree with this that the Wii is expensive for the average use that people get out of it.
    • 4
      Akira_EX Jul 14, 08
      Development costs mean nothing to the consumer.
      • 0
        BlackLabel Jul 14, 08
        They do if they do research i mean i wouldn't have bought a PS3 without research, its too expensive for that and i would like to hope that the consumer would know what they are buying and what a bargain they are getting.
      • 0
        Slumpy monkey Jul 14, 08
        Yes it does, As long as the price is justified people will buy it.


        Why do you think people pay big prices for quality food in restaurants? Because they know it has good quality ingredients and it takes skill to prepare and make it.
  • 1
    DusktoDawn Jul 14, 08
    And the Ps3 stands about $1000 a console in other countries. >.>
  • 0
    Red 9* Jul 14, 08
    Wii? Niche? Tell that to the millions of soccer moms and elderly people who own it.
    • 0
      Seproth Jul 14, 08
      Uh, did you miss the point? That is the niche. Soccer moms, elderly, and general non-gamers. That's their market, and it's a niche.
      • 0
        Red 9* Jul 14, 08
        Hmm, no I didn't realise that. Good point. Maybe Sony's not far off the mark.
      • 0
        ali3n Jul 14, 08
        Where as aiming for 'hardcore gamers' simply appeals to the entire world?
        • 0
          Seproth Jul 14, 08
          Well appealing to gamers, on a machined specifically made to play games, isn't considered a niche.
        • 0
          ali3n Jul 14, 08
          Somewhat true however simply aiming for 'gamers' alone is a niche in it's own way because 'gamers' for the most part are quite a small part of society.
        • 0
          Seproth Jul 15, 08
          Not really 63% of Americans according to this report.
        • 0
          ali3n Jul 15, 08
          America is not the only country in the world.

          Besides read the article itself, it's talking about the boom of so called 'casual gamers' due to the Wii and the DS not the number of 'hardcore gamers' or whatever it is that you want to call them.
        • 0
          Seproth Jul 15, 08
          Oh really I wasn't aware. I'm sure Europe is similar. Japan is probably a higher percentage.

          Sony is almost as big as Nintendo in Japan and it's not only for hardcore gamers. Which is where the argument comes from in the first place. He's claiming Sony is really a games console where Wii is just in a niche, and it's expensive at that, if you're only going to play Wii sports or Wii fit.
        • 0
          ali3n Jul 15, 08
          Yet only the 'hardcore gamers' seem to buy it and and they criticize Nintendo for appealing to a different market i.e. not appealing to the 'hardcore gamers' from the get go. That is pretty hypocritical.

          The figures for Europe will be quite different depending on where you ask. Besides take the whole world into consideration like I asked you to and you will see that 'gamers' are pretty niche.
        • 0
          Seproth Jul 15, 08
          Fanboys criticize other consoles no matter what. It's best not to listen to them. This is Sony, they're trying to sell their system it's not a surprise, and it's not hypocritical. It's business.

          Of course if you take the whole world into consideration. You have third world countries, with tons of people, but if you count them lot's of things are niche. Hell, food is a niche product in some countries.
  • 2
    Armed Rebel Jul 14, 08
    Sony execs are delusional, apparently.
  • 0
    Demonfurby Jul 14, 08
    Lol, Sony are just a bunch of bitter douches
    • -1
      Red 9* Jul 14, 08
      Spoken with true fanboyism.
    • 1
      Remino52 Jul 15, 08
      I honestly think Playstation was only good for it's Square Enix influences. I like virtually everything about the wii though.
  • 4
    RabidChinaGirl Jul 14, 08
    Wow, every time I read an interview with Stringer, he seems to be going out of his way to belittle competitors. Horrible rep for Sony, way to sound like a pompous jerk.
    • 1
      Red 9* Jul 15, 08
      Which is ironic for Sony because they don't really have that much to brag about.
  • 0
    Jaw Knee Jul 15, 08
    Michael Pachter must've had one helluva night in Vegas.
  • 1
    Demonfurby Jul 15, 08
    quote
    Spoken with true fanboyism.
    You break my heart
  • 0
    Zeon I Jul 15, 08
    The Wii isn't a niche, it's more of a Kareoke Machine. The PS3 is a niche that they packed full of shit to jack the price up sky high. :/

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