Sony dominance in game consoles at risk, research firm says

Iria · May 17, 2006, 11:27 PM

Source: DigiTimes
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Sony is placing a serious bet that its inclusion of a Blu-ray drive in the PlayStation 3 will entice consumers to pay a premium price for the new console, despite lower cost alternatives from both Nintendo and Microsoft. However, according to ABI Research, Sony's console pricing strategy is fraught with risk, and may ultimately jeopardize its market leadership position.

"Asking consumers to pay US$500 to US$600 for a game console, when most have yet to purchase an HDTV, will give many current PlayStation 2 owners reason to consider the competition," said Michael Wolf, principal analyst with ABI Research's broadband and multimedia research practice. "Sony has clearly hamstrung itself with a box that is expensive to manufacture, and these costs are driving a retail pricing strategy that places a high financial burden on the consumer

May 17, 2006, 11:27 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 87	Sony dominance in game consoles at risk, research firm says Source: DigiTimes __________ Sony is placing a serious bet that its inclusion of a Blu-ray drive in the PlayStation 3 will entice consumers to pay a premium price for the new console, despite lower cost alternatives from both Nintendo and Microsoft. However, according to ABI Research, Sony's console pricing strategy is fraught with risk, and may ultimately jeopardize its market leadership position. "Asking consumers to pay US$500 to US$600 for a game console, when most have yet to purchase an HDTV, will give many current PlayStation 2 owners reason to consider the competition," said Michael Wolf, principal analyst with ABI Research's broadband and multimedia research practice. "Sony has clearly hamstrung itself with a box that is expensive to manufacture, and these costs are driving a retail pricing strategy that places a high financial burden on the consumer