The great PlayStation 3 gamble

May 20th, 2006, 01:45 Posted By: wraggster

Via PS3fanboy

Here's a very interesting analysis of why Sony has to take the PS3 to the bank, or go down in flames trying. With Sony having been king of the games industry for so long, they are having to pay heavy to keep that position. Yes, they are behind a year. And yes, the price of the console is causing some unrest.

Even so, the success of the console will dictate a huge direction for the company for several reasons.

The most basic economical concept they're dealing with is loss and profit. Sony will be spending millions of dollars trying to market and sell this system at a price that will hurt them in the beginning, but hopefully pull them through later. Should the PS3 take off with consumers, it will enable Sony to produce Blu-ray components and the Cell chip with greater efficiency. This is a huge step because the PlayStation 3 is also their entry into the next-gen DVD war. And with the Cell processor poised to be the cornerstone for other Sony consumer electronics, the success of this upcoming console is a do-or-die scenario.

Clearly it is not all about the games anymore.

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