Sony has finally announced the launch date for the new PS3, which is November 17, 2006. Soon after their big announcement at E3, Sony also dropped a bombshell; the prices. At $499 for the stripped down version, the PS3 becomes one of the most expensive gaming platforms in history. Did I mention this is the stripped down version? If you decide you need the top level PS3, be prepared to shell out $599 for it. There are some very notable differences between the two systems, besides the $100 price point, which include an extra 40 gigs of memory, and an HDMI port. While the $499 20 gig system is fine for the vast majority of the TVs in households right now, can the same be said for two or three years down the road? Sony knows the future is in HD, even if the average consumer does not. The real issues involving the new PS3 are the future of Blu-ray, which is just one of two competing new DVD formats, supply problems, and Sonys history of high upfront prices, followed by steep price drops. There is no question that the demand for the new PS3 is built in, and there can also be little doubt that Sonys marketing team has thoroughly researched the fallout that a high price could cause. They clearly seem to feel that gaming has developed to a point that consoles can support prices that are quickly approaching those of PCs. Has Sony finally made a huge mistake? They very well could have. Their fourth quarter release is timed to strike at the very heart of X-mas, which is certainly designed to help fuel demand, and benefits from the predisposition of parents that they need to fulfill at least one of their childs X-mas wishes. However, rising gasoline prices, and climbing interest rates are already taking their toll in the United States, which is by far Sonys largest market outside of Japan. Considering the system comes with no games, and just one controller, sticker shock could very easily set in. The $599 system, an extra controller, and just two games quickly approaches the $1,000 dollar mark with sales tax included. This assumes that those willing to take the plunge and actually buy a system are able to get one. Remember the recent Xbox 360 supply problems, or the PS2 release? Buyers who have already decided they are going to purchase a PS3 need to get onto one of the waiting lists quickly. A careful screening of the dozens of PS3 message boards indicates scalpers are preparing for a price gouging war of epic proportions. Anyone familiar with the bloody Xbox 360 wars on eBay should be prepared to lay out up to 400% above Sonys retail price. Since this is also a X-mas release, it could easily get worse. There is little doubt that Sonys PS3 is going to create a global consumer rush for the latest and greatest, but how big or small that rush is going to be remains to be seen. Everyone is going to want one, but this may be a case where keeping up with the Joneses may only be possible if Santa and his elves put in some serious overtime. |
