PS3 Preordering

[bobbyi]

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I'm pretty sure Nintendo isn't all that happy about Gamecube or N64, but it's still around and Nintendo is a much smaller company.

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Nintendo also has the handheld market to keep them afloat. I love my DS.

[The DaveR]

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I doubt it will kill Sony, but you can go ahead and wish it. Sony is a huge company. Even if this gamble fails, they will still survive. Personally I already have a 360, and I will get a PS3 eventually (doubtful this year due to the shortages) but I want to get some sort of HD quality disks for my new 1080p TV. I could honestly care less if it's a Blu Ray or a HDTV as long as it works well and looks good.

IF this kills Sony, so be it. But this has been said over and over about a lot of consoles. I'm pretty sure Nintendo isn't all that happy about Gamecube or N64, but it's still around and Nintendo is a much smaller company.

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It's a big company that's made up of some pretty ridiculous parts. Sony's businesses include consumer electronics, computers, movie production and financial services. A couple of those have already been sucking wind for a few years.

I don't blame you for not believing me though, it is a weird thing to imagine. The thing most people fail to see is that the problem isn't that they won't generate enough interest, it's just that they start themselves in such a big hole that it's almost impossible to climb out. Look at the estimates from Merrill Lynch and the math in that article I linked.

Edit: To be clear I am not saying that Sony will go bankrupt, but it will get significantly smaller. Also, I don't know why you think I'm "wishing" Sony fails. I don't really care either way.

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But they could come to market with a $2 BLN convertible bond issue tomorrow if they wanted.

[Dire]

I was considering purchasing a few to ebay, but decided against it. What sort of profit are you all expecting? It looks to be near $1000 for the noncrap system, extra controller and a couple of games. I think that's above the average gamer/parent's expendable funds especially around christmas. I didn't see the profit significantly exceeding my hassle/opportunity costs.

[talentdeficit]

thedaver,

and do what with the money? sony's problem isn't liquidity, it's problem is that no one wants to buy it's products anymore. the trinitron, vaio, walkmen, minidisc and cybershot lines are all struggling in the current market, and the ps3 and bluray look poised to fail miserably. sony makes it's money by being ruthlessly proprietary with it's accessories, which was fine when everyone bought sony electronics. no one buys sony anymore though.

[The DaveR]

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thedaver,

and do what with the money? sony's problem isn't liquidity, it's problem is that no one wants to buy it's products anymore. the trinitron, vaio, walkmen, minidisc and cybershot lines are all struggling in the current market, and the ps3 and bluray look poised to fail miserably. sony makes it's money by being ruthlessly proprietary with it's accessories, which was fine when everyone bought sony electronics. no one buys sony anymore though.

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Who knows? The point is the strategic horizon for companies is much shorter than people tend to anticipate, and I doubt many people think Sony is in any serious risk of default. The article was a worst case scenario given zero liquidity available to Sony. Obviously that's not realistic.

[Kneel B4 Zod]

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and this PS3 thing, at first blush, looks like a major price point / consumer targeting blunder (the premium console, wtf).

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I think this is right. I'm a video game fan with more disposable income than Joe 6 Pack (although I'm far from rich), yet I really cringe at the PS3 price tag. I'm a value guy, and the Wii at $250 or whatever seems like it will be a superior value.

WRT to the Sony corporate strategy - they've made a lot of blunders, but they obviously believe that that being a supplier of commoditized good is not where they want to be. Leave that to any number of Chinese sweatshops. They only need to be right some percent of the time for this to be correct..I think the problem has been their products, not their strategy, although that's probably a topic for a 400 page book.

[4 High]

2 Points.

1. Sony as a company is dying. I believe the Playstation arm of the company was one of very few, if not the only to post a profit in recent years, they NEED PS3 to succeed.

2. Out of all 3 of the console makers, Nintendo knows how to make money the best. They almost never take a hit on console sales, make huge profits on games and accessories. They know how to do gaming profitibly.

[dtemp]

On a slightly different note, is there any speculation when xbox 360 is going to cut their prices? I want Dead Rising so bad but with two new systems coming out and the holiday season, the price has to drop fairly soon right?

[onthebutton]

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2. Out of all 3 of the console makers, Nintendo knows how to make money the best. They almost never take a hit on console sales, make huge profits on games and accessories. They know how to do gaming profitibly.

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I'm not a business guy, but I'm pretty sure some of this isn't right. You're comparing Nintendo's ability to "make money the best" to Microsoft? I doubt that's true. Second, the Wii is forecast to be very popular and profitable. However, Nintendo hasn't made a cent off of it yet.

[onthebutton]

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On a slightly different note, is there any speculation when xbox 360 is going to cut their prices? I want Dead Rising so bad but with two new systems coming out and the holiday season, the price has to drop fairly soon right?

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I've heard they'll drop it the week the PS3 hits stores.