Analyst: PS3 price bad news for publishers, industry

DFC Intelligence says steep price tag will prevent next-gen platform from rapidly building installed base--which will give developers pause.

It's been over a week since Sony revealed that the PlayStation 3 would launch in November at two price points--$499 for a stripped-down 20GB model and $599 for the tricked-out 60GB model. However, the news is still reverberating through the industry, with more and more analysts weighing in on the matter in the form of notes to investors.

The latest firm to join the fray is DFC intelligence, which predicts the PS3's steep sticker price could cost it--and the game industry--dearly. "The higher priced the hardware, the lower overall industry growth will be," read a report the company issued this week. "The video game business model has been to build an installed base of tens of millions of users in a very short time frame. A key factor in this model is relatively low cost hardware... Unfortunately, there is a sinking feeling that things may have spun out of control for Sony and thus price cuts will be slow in coming."

Indeed, DFC says that the PS3's high price will make--or has already made--many consumers side with a next-gen rival. "With a $200 price difference now announced, consumers that were sitting on the fence can feel free to go buy an Xbox 360," read the report.

Along with the price, DFC reasons that the 360's stout software lineup will be another factor possibly causing consumers to shy away from the PS3. "In terms of game software it currently looks like the Xbox 360 will be able to match the PS3 punch-for-punch in the important genres like shooting, RPGs, racing, sports, Grand Theft Auto IV and others," asserts DFC. "Will Sony's brand name alone explain a $200 price difference to the gaming audience?"

While a shrinking Sony market share will be music to Microsoft and Nintendo's ears, DFC worries it might have have long-term negative impact on third-party publishers and developers. "Hardcore video junkies may go for the PS3's Blu-ray capabilities, as $600 is cheap for a new high-end technology like Blu-ray," said the report. "But if those guys are not buying game software, that does not do game publishers any good."

1415 Comments

  • R3DN1N3

    Posted Oct 9, 2006 12:47 pm PT

    Sony sony sony....when will u Natzis learn....

  • sl33py_boy

    Posted Jul 11, 2006 11:58 am PT

    i just want a cheap ps3!!

  • CCDANMAN

    Posted Jun 6, 2006 7:55 am PT

    If the PS3 is $600, then I believe people will be buying the Nintendo Wii and Xbox 360 more.

  • GPSnake03

    Posted Jun 1, 2006 3:33 pm PT

    yeah!!

  • manserban

    Posted Jun 1, 2006 12:52 am PT

    Where do you get your info EazyMstar?

    First of all, GTA will be for PS3 also. Second, it's clearly you are a FPS fan, because you mentioned only MGS4 for PS3, when everybody knows there are tons of other great games like FF XIII, Devil May Cry 4, Assassin's Creed, Resident Evil 5, Heavenly Sword, Tekken 6 or Warhawk which uses the control motion sensitivity.

    On the other hand, XBox 360 offers mostly FPS or sport games.

    So, to conclude, if you are looking for FPS games, maybe you should get a XBox 360, but if you want the creme de la creme from every genre, get a PS3.

  • revgamer92

    Posted May 31, 2006 7:49 pm PT

    If Sony keeps taking risks like this, they may end up falling behind. Nintendo is dominating Japan already with the DS, while its a close war here in the US, via handhelds. I believe the Wii is going to also dominate Japan, whereas it will be a close match here in the US. With the Xbox 360's headstart and internet service, the Wii's intuitive controls and gaming over graphics, and PS3's hardcore graphics and its appeal to Teens and Adults wll make this war a close won. Anyway, GO Nintendo !!!

  • xa13xa17d312x

    Posted May 31, 2006 7:13 pm PT

    not a smart move from sony

  • DV2THEFOX

    Posted May 31, 2006 3:34 pm PT

    i always thinked that Microsoft would suck w/ X-BOX..so they did!..thou i wanted 2 play JET SET RADIO FUTURE so badly X3..but i shall kill SEGA for goin' w/ Microsoft...

    what i would ask SEGA for is to make a new JET SET RADIO for PS3 when it comes out..with the roxxin CelShadin,Sweet FPS (Frame Per Second)n music..but let's go back to topic..

    As you guys seen,XBOX (1st one) sucked really bad but rocked only to some small games..then boredom came and they needed 360)..PS2 was kickin' X's @$$ so badly so they gave up slowly..but now Microsoft wanted revenge with 360 with a ultra quick release n with 2 editions..now PS3 wants to hibernate their ultimate weapon for this fall (November XD) to destroy 360 XD..it's gonna happen,somehow..

    About the controller,i have to agree that the PS3 havent stole Nintendo's Wii motion thingy,but 360's middle button,but hey,we want something,right? XD..too bad the rumble got removed...it was awesome to grab the controller and put it on the pant's...CENSORED part !! X3

    So people stop complainin' and let 'em go their way..thou we want PS3's RUMBLE!!!!!!!! XD

    i wouldn't buy a 360,coz it would have the same problem as XBOX..it'll be a pain buying a PS3,but it'll be worth the wait...MGS4,DMC4,FFXIII (and maybe VII?),FFXII...well,loads of games to have fun with..

    The only thing PS3 might want to do something like one of the Wii's videos..IronSteel or something's video,where a guy aims his gun like for real,or with the sword,but with the PS3's controller =3..you'll shoot with R1 as you hold the right side of the pad =)

    Reasons to buy a PS3:

    -Hard Drive (i'll get 20GB..)
    -BluRay!,more fun..hope games have like the Soundtrack n trailers in their games
    -PS3 Controller,thou without rumble sucks
    -If the game's saves occupies only 100kb like PS2's memory card..we'll have fuuuuunn...
    -QUALITY GAMES!!!!!!!!

    The main problems are:

    -We want to play GUITAR HERO on PS3!!..but there's the controller socket problem ;__;

    -What are we going to do with our game saves from our memory cards?

    And the question:

    -Will PS1/PS2 games be loaded really fast on PS3?

  • pacosgames

    Posted May 31, 2006 6:15 am PT

    They didn't steal the motion sensing idea, look at the PS2 Controller that was designed with motion sensitivity(way back in the 90s folks...). Anyways, I agree with orielito, Xbox360 fanboys, shush for a few minutes, dont buy the PS3, so the rest of us can. I own a 360 myself, but am loyal(and saved enough) to afford all of the next gen systems. I dont see why everyone has to bicker over this, its kinda ludacris...

    But seriously, THEY ARE BOTH AWESOME SYSTEMS! Own the one you love, and dont hate the other. They have similarities and their differences, but so do we, so just deal with it. You'll have cross platform games to play on each, so in the end, some of the good content will be ready to share. If your a Halo addict, by all means, get a 360, if your a MGS addict, get a PS3, but share the love peeps!

    Aren't we supposed to be having fun? Is anyone anymore?

  • GhostStalkerX1

    Posted May 30, 2006 7:13 pm PT

    Sony will indebt them selves and when they do i will laff. Its what they get for stealing ideals and trying to show off with crap that ppl dont need or want to pay the money for. I dont think sony will servive this generation. Go sell some more TVs Sony.

  • kambion313

    Posted May 30, 2006 4:56 pm PT

    Vid game analysts are douche bags........ps3 will sell....PERIOD, the one thing i wonder is if this press is paid for by either microsoft or nintendo....thats the way i see it.

  • orielito

    Posted May 30, 2006 4:25 pm PT

    i'll make it easy for you guys ... if the fanboys ( 360 ) dont want to buy the PS3 well ... then DONT ... that way i will find on at launch .. i have all the systems why cuz i have a job and i save money .. so why are you stressing about games = ps3 the fact is that you cant afford it just leave it alone and let me buy it since i have the money ... DONT HATE AND GET A JOB AND SAVE UP THE MONEY ...

  • overcode

    Posted May 30, 2006 10:39 am PT

    It doesn't matter and everyone knows it. On the PS3's launch day stores are going to flooded with people wanting them and there will be a shortage as usual. I gotta admit I'm sick and tired of these companies (Sony and Microsoft) making 2 different models of their consoles. Just make one damn machine, wtf.

  • EazyMstar

    Posted May 30, 2006 10:37 am PT

    What you choose , HAlO3 , GTA4, GOW, PREY = xbox360
    or MGS4 = ps3 for same price ,,,,,, It's an obvious choise , In the end it all comes to the SOFTWERE not the HARDWERE ... And buying the ps3 at lounch cus of the HARDWERE is stupid , no game will be bettre Then Xbox360 Until 2-3 years ahead when developers Manage to use the full power of ps3 ( atm They cant create bettre games looking from the hardwere point ) ,,, and By the time they developers manage to use full Power of ps3 It will be bettre then x360 So dont fool yourselfs and buy a ps3 now for 600... , w8 and in 2-3 years im sure you will get it for at least the half price of what it is now.. So pople dont fool yourselfs. Mgs4 isnt worth it .

  • Gigagamer2

    Posted May 30, 2006 6:18 am PT

    these analysts change there mind every day depending if its raining or not

  • Flamerdragon

    Posted May 30, 2006 12:16 am PT

    I belive that if you want to buy a PS3, you will buy it how much it will cost. This price is fine with me. Just save money and go buy it. You will NOT regret it. PS3 fans didnt go and buy XBOX 360 because PS3 will rule the world of gaming.

  • mr111111

    Posted May 29, 2006 6:39 pm PT

    600$ is a lotta money, especially for a non-hardcore gamer, or non-hardcore sony fan for that matter...

  • djtono4444

    Posted May 29, 2006 6:23 pm PT

    plz, respect people opinion nitendo freak boys!, im buyin a ps3 period!.. i want ultra graphics, mega super games, n super gamplay, i foun myself describing ps3. am i? and btw, the ps3 graphics at e3 where at 25% of power...

  • COAdonis

    Posted May 29, 2006 5:12 pm PT

    "Sadat87
    SONY.....SONY.....SONY... they should really look into the price matter of 599$ +another 1000$ for an HDTV get maximum of ur #%@! PS3.
    what is this ?"

    why is everyone saying this???? you would have to get an HDTV to get the full visual effects of the 360 as well....... why can't people think on this matter?

    the fact of the matter is, in the near future, when the price of HDTV's go down, and more and more people start to go buy them, everyone will know that the PS3 will look much better when they have tapped into its full potential. The 360's are getting up there in finding their true potential, while the games look fantastic for the PS3 and they are just barely at 20% of what the PS3 can actually accomplish.

  • DazKurupt

    Posted May 29, 2006 3:56 pm PT

    Yup, it will be nice to have another next gen system .......finaly. $600 is steep as it gets for a console. PS3 worth every penny though. Sony and there buds do great things on them consoles. Hope they follow through this time with the online services.

  • crazy-roman

    Posted May 29, 2006 3:04 pm PT

    Im definately getting this Sit right next to my XBOX360 woooooooot

  • Solidesnake2004

    Posted May 29, 2006 1:08 pm PT


    JStanley4

    My 360 looks just as good as any of the PS3 games so I will be out of Sony's camp this time, for a while until significant price cuts are made. You lost a hardcore fan Sony.

    My Response: Its kinda funny when you say that since....THE SYSTEM IS NOT EVEN OUT YET!! nor the Games soooo....why compare already for something that has not been relased to the general public?

    In All respect you are entitiled to an opinion

  • IhateMario

    Posted May 29, 2006 12:28 pm PT

    Cool, almost everyone is from the Nintendo section.

  • aswoo

    Posted May 29, 2006 12:22 pm PT

    It's disturbing that Dell sells entry-level PCs for less than the cost of a PS3. I think Sony has already done a good deal of damage to themselves just by stating that it will be $600, considering that game developers will likely shy away from creating products for a smaller gaming base when they could go with XBOX 360 or the Wii.

  • JStanley4

    Posted May 29, 2006 7:32 am PT

    I had intended to buy a PS3 as I have had the pS1 and PS2. However, at 600 bucks, I will not be on the front lines to get a PS3 anytime soon. I don't feel that it is warranted, even for the Blu Ray tech since we still don't know if Blu Ray or HDDVD will be the winner in the format wars. Sony lost last time with Beta, could history repeat itself?

    My 360 looks just as good as any of the PS3 games so I will be out of Sony's camp this time, for a while until significant price cuts are made. You lost a hardcore fan Sony.

  • moisesarriaga

    Posted May 29, 2006 7:21 am PT

    people should make their own decisions! I mean, who cares what "analysts" think! I bet if they said everyone should buy it for $600 dollars and it was a great deal, yall would be drooling for the ps3 and say the 360 is gonna fail misserably! If you want to get next-gen QUALITY then you need to pay for it. you pay for all those $50 dollar games, so add them up and youll see you have been paying almost thousands, for some of you. I will go to gamestop reserve it and pay a few dollars a week and when it launches it will be paid for! SO JUST SHUT UP SAVE MONEY AND BUY WHATEVER YOU WANT NOT WHAT THEY THINK IS GONNA BE SUCCESSFUL P.S. sorry if i seem angry

  • redrabbit

    Posted May 29, 2006 6:51 am PT

    Personally I think Sony is going to find it difficult with such a heavy price

  • akaLogik

    Posted May 29, 2006 5:58 am PT

    guys guys chill man.... u dont know about the sony kung fu style of patience, and tru next gen......
    they are putting all they eggs in a basket and in 2 years when the eggs hatch and become baby sony chicks, the 360 will be old news... only good for online play... and shiney graphics
    for the next 2 years it will be all about graphics between sony and microsoft, until developers truly understand the power and untapped capabilites of each system, and when that happens i think that sony will have the edge...
    why?? because they covered thier bases... they got the technology and the space to put it on with thier blu-ray... then youll end up buying a new xbox 385 or some kind of add on adapter to try to do the same thing..
    i think nintendo was smart keeping to themselves and doing thier own thing, because it gives us choice!! but between the 2 giants of sony and microsoft, one of them has to fall... there isnt room for the both of them, because they are always trying to out beat the other... so thats whats going to happen, one is going to win. and until then we will suffer for it, because of exclusivity with games like halo and metal gear... if we want to play them we have to buy thier system...
    to me tru next gen is going the limit... go as far as u can go, wither it be with technology (sony) or with new ideas and enginuity? (nintendo)..... what limit did 360 push??

  • Sadat87

    Posted May 29, 2006 12:16 am PT

    SONY.....SONY.....SONY... they should really look into the price matter of 599$ +another 1000$ for an HDTV get maximum of ur #%@! PS3.
    what is this ?

  • Solidesnake2004

    Posted May 28, 2006 10:16 pm PT

    ShadowSTHU
    And what tells you that Sony is going to setle for $600
    (My Response: Well im thinking E3 announcment of the price...does that ring a bell?)
    Plus, unless you haven't noticed, the $500 PS3 won't have HDMI AT ALL, which means forget Blu-Ray movies on your super precious new 1080dpi HDTV.
    (My Response:f you have HDTV which costs more than my CPU then you'll be the person buying the $600 PS3)
    Ofcourse Sony NEVER informed anyone on that, and expected that noone finds out. This proves once again that only extreme Sony fanboys are going to purchase the PS3, unaware of the that fact, happy that their super dooper high-end console costed only $500.
    (My Response: Well if that proved your theory of "Sony Fanboys" then where is the rest of your theory? Like "MSXBox fanboys" is there a thoeory for that also?, Super Duper? well i you like to call PS3 the Superior Console go right ahead. By the way spell check)

    Indeed this is the best thing that ever happened... for Nintendo and Microsoft. I can already see Sony going on about new functions on their console, such as Arcade, controller speaker built-in and ofcourse, what else but interchangeable skins.
    (My Response: Sooo... you're a pshycik? what else can you see?)
    I cannot see rational people buying this... thing, considering how the computer industry is going to strike back with Intel's Core Duo and Ati's X1900XT (Almost out and already out respectively) being superior to the PS3 in all ways.
    (My Response: Soo you're Blind then??? and you are comparing Sony's product to only a Dual Core Processor and a Graphics Card??? ummm how about the rest of the pieces???)
    As for me, I am going to purchase both the Wii and Xbox 360. Both consoles proved to be pioneering in some way, and totally fun. I will be able to play games that will make me have fun like never before with my younger brothers and sisters on the Wii, as well as have me hanging on the edge of my seat with Xbox 360's high-definition graphics and enjoyment. Just buying the PS3 for 1 or 2 exclusive games seems stupid.
    (My Response: Yada...Yada...Yada...you have anything else to say besides being a human commercial.....i think most of us can understand your feelings towards two other systems....and Exclusive Games can mean anything to anyone...i doesn't have to be "Exclusive"because the media is telling that certain games are coming out for certain systems....maybe it might be a kiddy game that even 30 yr olds like on a certain system tha makes it "Exclusive" to them....sooo careful what u say.... People have different patterens of thinking....we know you do.

  • cyber_sonix

    Posted May 28, 2006 8:39 pm PT

    I love people who blur the facts to make it seem like sony is such a great company that will last in the gaming world for years and will triumph over ms and nintendo. The odds of that happening are razor thin to nill. The ps was a great system, the ps2 was a little disappointing. Sony had a one hit wonder and we need to leave it at that.

  • valiendocheese

    Posted May 28, 2006 5:42 pm PT

    I know it is expensive, but hey! remember it is a blu-ray player and the most powerful console, all in one package!! Plus it is also as if you had a ps1 and a ps2... I already sold my ps2 and started saving for when it comes out. Also take in mind that with this big jump into technology it will take many years for it to get old and useless. One of the most important things here that most don´t notice is what SONY is trying to build for us... They´ve spend many years of development just to bring us the best of the best, just imagine all the effort and the risks that it involves in making such a big thing. SONY is going all for all to give its followers one hell of an experience... Lets not turn our backs on them.

  • superboyjoe93

    Posted May 28, 2006 12:31 pm PT

    The price tag sucks!!!!!!! sony is going down and nintendo will rise again!

  • cihant

    Posted May 28, 2006 10:11 am PT

    $200 thats a bit exaggerated because the HD-dvd driver for the x360 is sold seperatly...
    i guess that thing will be priced about $100 which will make the consoles nearly equally priced for PS3 runs the latest technology

  • nkraptor

    Posted May 28, 2006 2:25 am PT

    also, to the previous post about ps3 isnt the sole bet of sony and they have so many other assets, their other assets are so so.
    http://gear.ign.com/articles/709/709082p1.html

    "Though the total amount of money (revenue) that flowed into Sony last year was an impressive $67.94 billion dollars, their profit margins were a slim 1.65%, figures that reveal a giant corporation barely squeezing profits out of its many disparate holdings in consumer electronics, movies, music, and videogames."

    theres a lot more in there, but i dont want to make a quote fest post.

  • nkraptor

    Posted May 28, 2006 2:20 am PT

    when such a large portion talk negative i woudlnt call it a good strategy. this is no just released movie for 8 dollars, where even bad hype means people just have to go to see how bad it is. nobody is going to pay 600 just to see how it is

    the hardcore anti sony fans are still the way. the hardcore sony fans will find some way to buy it no matter what. but us people who just want good games and dont care if it comes from microsoft, sony, or nintedo are really put on the fence about the price.

    with a job and other non game things to do. theres no time to play for all the consoles so all i want/need is 1. i still cant decide if what i see from the ps3 games is enough yet.(360 has a lot of interesting titles too) (and also some of us old timers still hold special places in our hearts from our first experience of mario brothers on the NES/famicon)

  • azzuri09

    Posted May 27, 2006 8:15 pm PT

    IT will b a huge hit...ND thnx to u guys,ALL SONY wanted is to b talked nd b published....nd thnx to the haters nd all,its working quite good...even people r having 360 ryt now, r talking bout PS3...thats wht u call strategy...

  • winfield_redfox

    Posted May 27, 2006 4:08 pm PT

    Damn sony has such an effective marketing strategy, Late

  • miiiguel

    Posted May 27, 2006 1:56 pm PT

    I couldn't care less about BD, unless there was a gaming purpose for it, but multi-language, was the reason pointed out by Sony suits, hummm, I don't care, I'm no gradute in english, but I can manage allright.
    Sony is pushing BD, because of its movie buisness, and you (Sony fanboyz), just bite the bait.

    And those comments on expanding lthe life of a console: I want a new console every 5 years!, I want a major improve using the latest technology, I don't know how can you even look at that decrepit 7 years old machine. Sheesh..., you guys seem to enjoy getting married to a brand.

    I'm going back to HD Tamriel now..., have fun with those girlish Old Heart Kingdoms, or such....

  • BlackSephiroth

    Posted May 27, 2006 12:15 pm PT

    Bah, the PS3 is genious. Blu-Ray is only holding them down. If Blu-Ray cut their costs, so Sony..

  • crshnbrn

    Posted May 27, 2006 2:56 am PT

    Only foolish, stupid people would say that the PlayStation 3 will fail, especially before its release. Sure the price is pretty high, but in the long run, it will be worth it. Sony view of the PS3 is to increase the lifespan between new consoles; instead of a new one coming out in 5 yrs, the PS3 could last 10 yrs. Consoles don't sell themselves either, sure name is somewhat important, but the games is what most people buy a console for. The PS3 will have its own exclusive games, like all systems, ones that will sell the system like, MGS4, FFXIII, GT, Tekken, and many more.

    Yeah, the 360 is great, but so far the only reason I bought it is for Oblivion, Gears of War, and Dead Rising. IMO Halo sucks......say what you want, but I'm titled to my opinion.

    As for comparing the Wii and PS3, its simply not possible. The Wii is in a completely different league than both the 360 and the PS3. Graphically the Wii is way inferior to the PS3 and 360(especially in the long run). I love the interaction with the remote though, thats cool. Mainly though, the biggest thing the Wii has going for it is being able to download and play all the old Nintendo games and the selected non-Nintendo games.

  • COAdonis

    Posted May 27, 2006 1:27 am PT

    ThatMan07:

    my bad.... I did mix up the prices beause of some accessories included at purchased. but to be honest, I don't see why anyone can't afford a PS3...... its still got 6 months to get here, which gives you plenty of saving time.....

  • IMS246

    Posted May 27, 2006 1:23 am PT

    i knew from the beginning that ps3 was goin to fail. the price. it was obvious how much more expensive it was goin to be from the 360 so dont act so surprised. besides, all playstations are peices of junk and incredibly over rated.

  • asianboi2k4

    Posted May 26, 2006 11:12 pm PT

    sony is losing their minds....go get a nintendo Wii ^_^

  • ThatMan07

    Posted May 26, 2006 9:27 pm PT

    FYI AGAIN: Does anybody know what the hell COAdonis was talking about when he said the XBOX 360 was $499, with a wired controller? Maybe he was dreaming, or just hating because he really likes Sony....and by the way, i'm not a big fan of this backwards compatibility stuff, you can't even use the old memory card, so who cares, but the free online service is nice.

  • Metakit5

    Posted May 26, 2006 9:03 pm PT

    Hmm... It's like a PC, except it can't do half the stuff a PC can, and the harddrive is smaller. Buy a PC.

  • kaito2

    Posted May 26, 2006 6:44 pm PT

    FYI: The Core 360 was $299, not $399. The Premium edition was $399, which is still $100 less than the 20GB PS3. Blu-Ray is pretty much useless on the 20GB PS3 because it has no way to output it to a TV. And the 60GB? I have over 50 games + CDs ripped for my 10GB HD Xbox and it hasn't even made a dent. 60GB is just overkill. There is no way that anyone with a 20GB 360 or PS3 should have storage problems over the life of the console.

  • vwgti3

    Posted May 26, 2006 3:34 pm PT

    Ha Ha I feel a little bad for PS3 fans.................................... NOT.. ha haaa. 500 plus the games are going to be 80-90$ tough luck PS3 fans

  • -abelito-----

    Posted May 26, 2006 12:55 pm PT

    Nintendofanbois are Ga& just like the "PEE"I mean WII=Pea!!! PEEPEEPEE Fuking urine bastards!!!

  • ThatMan07

    Posted May 26, 2006 2:13 am PT

    Alot of people don't know this, but the PS3 is actually the same price as the Xbox 360, you just gotta break everything down and it shows....its expensive but you get that blu-ray(which I don't care that much for), 60GB, with the 360 you'll have the 20GB, and you'll have to buy the HDDVD add-on which may be $200, if you want that, but the 360 price may drop this fall anyhow so I guess it doesn't really even matter, and if the price does drop I will be purchasing the XBOX 360.

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