Is there honor in third place?

I ran across this article via N4G and thought it was a bit ridiculous. The author is claiming that the PS3 is really not doing that bad. Huh?

In their lifetimes, the Gamecube sold 21.74 million units, and the original Xbox 24 million. With the PS3 at 23 million, that means that it has sold the same amount as the Gamecube and Xbox in about half the time.

Ooh! Ooh! I know the answer to this one. Dreamcast! I am sure Sony never saw the day coming where their shiny new Blu-ray of wonder would get compared to the Gamecube. Good grief. There are silver linings and then there are dark clouds of mumbo-jumbo.

Lastly, there’s the issue of cost. Sony lose money on every PS3 sold. In 2006 when the PS3 launched, Sony were losing approximately $250 on every PS3 sold. But now with Blu-Ray development costs dropping (as well as Sony taking a few features out of the console), the development costs are (as of January last year) about $450. 80 GB PS3s currently cost about $400, which means that Sony is now only losing $50 per PS3. The development costs of Blu-Ray will continue to drop, which means eventually Sony will start making money off of the PS3. Until then, though, they still have sales from the PS2, PSP, and other electronics (such as TVs and standalone Blu-Ray players) to help recover their losses.

But mom! I am only a little pregnant. Something like that. The author can spin the numbers any which way they darn well please, but the simple fact of the matter is that Sony has had it handed to them the last few years.

How is this current generation going to play out? Will a $50 price cut [you know we all want to see $100, but predictably Sony will do the wrong thing] actually salvage things for Sony? Will Sony attempt to keep the PS3 on a 10 year cycle similar to the PSX and PS2? Will Sony abandon the PS3 in hopes of competing with Microsoft by simultaneously launching the next PlayStation with the next Xbox?

There are lots of questions to ponder, but no real answers right now. Maybe I will start a rumor or two later. Until then, happy Sunday!

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