Sony's Risky Game

User Experience

In terms of user experience, Sony seems to have made choices that emulate both of its competitors. Like the earlier-released Xbox 360, the PS3 controller is wireless and harkens back to its predecessor. It also features a large selection button that brings up a menu. And like Nintendo, the PS3 controller has motion-sensor capabilities, but lacks the precision of the Wii's remote. Also similar to Nintendo, much of the PlayStation 3 experience has been previewed in the company's handheld, the PlayStation Portable. For instance, the PS3's menu system features rows of icons like that of the PSP.

And while the PS3 will provide a robust online experience, it is not without criticism. The PlayStation network will have a central hub similar to Microsoft's Xbox Live, with micro-transactions of a few dollars to buy game updates or mini-games, and messaging to contact other friends who are playing online. "They're taking our lead by copying features that we've had for years," says Albert Penello, Xbox's Director of Global Marketing.

What the PlayStation Network will lack is a unified hub for multiplayer gaming. Sony is once more allowing game makers to create and maintain online gaming for individual games. This may result in a more customized experience, but it creates a lack of standards. By sticking to an online gaming strategy similar to the PlayStation 2's, Sony is differentiating itself from the successful Xbox Live (over 4 million members) just to be different. "Xbox Live is growing into a very impressive service. Sony's strategy is quite different; we've yet to see the full fruits of a unified service (like Xbox Live)," says Davison.

The Challenge

Considering the climate that the PlayStation 3 faces upon its release, it's going to be an uphill battle for Sony. The PlayStation 3 is the most expensive console of this new generation. The PlayStation 3 will have the least units out in stores for the holiday sales period. The PlayStation 3 has to compete with the originality and mainstream reach of the Wii. It also has to overcome Microsoft's lead. "We're offering more games, a better experience, all at a price point that actually makes sense to the consumer," says Xbox's Penello.

What may be most damaging to the PS3 release, is its comparison with its predecessors -- PlayStation 1 and 2 -- and the fact that each sold 100 million systems worldwide. "The six-year-old PlayStation 2 currently outsells the recently released Xbox 360," notes Hirai. Yet it is unlikely that the $599 PS3 will approach the sales rate of the $129 PS2.

Considering Sony's past stumbles with proprietary formats they pushed on the market, such as the Betamax or MiniDisc, the inclusion of Blu-ray could end up hurting the PS3 more than helping it. "It will depend on the success of Blu-ray and how quickly they bring the price down for PlayStation 3," says Michael Gartenberg, Research Director at Jupiter. Gartenberg predicts that Sony's chance to capture the mainstream will come after the launch.

"The market is most certainly Sony's to lose," adds Gartenberg.