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June 29, 2007 8:51 AM PDT

PS3 is tops in Australia and a failure in the US

by Don Reisinger
Sony Playstation 3

Sony Playstation 3

(Credit: Sony)

Michael Ephraim, managing director of Sony Australia, has officially announced that the Playstation 3 is the console war king - in Australia. According to Ephraim, sales figures in the Land Down Under have shown the "PS3...outselling Wii and Xbox 360 every week, except for last week."

The recent stories like this one out of the Sony camp are becoming pathetic at best. The company who formerly touted its dominance over the video game industry is left touting a 50,000 unit sale for March and a sales lead "for every week, except for the last week." Which brings me to another issue: what happened last week? Is this a sign of things to come?

Sony has gone to the well one too many times and now it's living with the ramifications of its poor decisions. Sony may be the leader in Australia, but it will never be the leader in the United States and within a few years, will finish dead last in Japan as well. The end is near for Sony's game division and time is running out on a new plan. There is no way the company will rise to the top of the console wars, but in the United States, look for Sony to finish second.

Yes you did just read that. And just to make you a little more confused, Nintendo will finish dead last. Why you ask? It's simple: the video game industry is controlled by software developers and very few of those companies will be willing to drop the time and money it takes to develop a new control scheme for the Wii.

I know this may sound like the same old story that most Wii fanboys have been laughing at for the past six months, but as we move into the summer and the holiday season, the future is becoming all too clear.

Microsoft is leading the console wars right now regardless of Wii shortages because it offers more to the developers than the Wii or the PS3. We can talk all we want about the innovative Wii console and how it sets a new standard for the video game industry, but it is not a money-maker for software developers like the Xbox 360 is. If I was writing this ten years ago, then that argument would not only be valid, it would be true. Unfortunately, we are knee-deep in an era of cash flow dictating what we play and how we play it. And believe it or not, the Wii doesn't fit into that business model.

In order to turn a profit in this business, most developers need to take your favorite game and port it to other systems. And because the Xbox 360 and the PS3 are so much more powerful than the Wii, developers typically start their work on these consoles. Once the game is complete on say, the 360 for example, they can easily map the entire game's controls to the PS3 controller because it offers the same layout: four buttons, two analog sticks and a D-pad. For the Wii, it's not so easy. Instead, developers need to create an entirely new control scheme and some kind of interaction with the Wii functionality or else the game will be hammered by video game reviewers begging for better controls.

Now I know what you're thinking: it may be difficult, but with the number of Wiis in homes in the US, it makes sense to spend the extra time and money to port a game to the Wii. Wrong. There are a number of issues that may arise when developing and porting games and with suits dictating a release schedule and a budget that often times runs over on the original port, it quickly becomes impractical to develop a new control scheme for the Wii.

The Wii will become (or has it already?) a mini-game console that will feature big games from Nintendo and the like, but will never reach the pinnacle that Microsoft will enjoy in this generation.

So where does that leave Sony? A distant second to the Xbox 360. Over the course of the next five to ten months, Sony will be releasing a slew of wildly popular games like Metal Gear Solid, Final Fantasy and Killzone. Not only will these games help bolster sales of the system, an impending PS3 price drop will significantly increase the number of people who will choose a PS3 over a Wii or Xbox 360.

With that said, Sony has already done enough damage that it cannot recover from. Why you ask? It's simple: Microsoft obviously understood this business far better than Sony and wooed software developers. Microsoft understood that hardware doesn't drive sales and make a console king, it's the software that dictates who will come out on top. Sony on the other hand, rested on its laurels and thought an advanced (and expensive) device would be enough to run Nintendo and Sony out of the video games industry for good. Obviously Sony was wrong. By relying on hardware, developing for the console was difficult and the centerpiece of the device: its Blu-ray player, has been all but ignored by the average video game player who only wants to play Madden and couldn't care less about the high-def DVD wars.

So, in an age where money takes center stage and innovation is relegated to other forms of entertainment, the video game industry trudges on with executives claiming victories and fans screaming obscenities at each other in a Halo death match. And while some people believe their own favorite console will become the leader of this generation, time is running out. The Xbox 360 has an installed base that demands developer attention, while the Wii has the most entertaining experiences we have ever enjoyed and the Playstation 3 is nothing more than an expensive piece of machinery that has yet to prove its worth. But within a few shorts months, all of the cards will be on the table and each member of the pack will take its rightful place in order: The Xbox 360, followed by the Playstion 3 and the Wii.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Too early to determine
by r_watters June 29, 2007 10:08 AM PDT
I understand your view point and it is a valid one, but I believe that you are being a little bit to easy on the xbox 360. Yes, it does have a considerable lead on the ps3, but you have to think about how the 360 started out, it was not to smooth. It took a little while for the 360 to get games on the shelves, just like its been with ps3. And who could forget the faulty hardware the first 360s had, and its still troubling them today!

I believe that your article offers a rushed conclusion of the ps3's fate, while its still only 8 months old. Microsoft was pretty smart about releasing there console early, thus putting pressure on the ps3, but they also got and are still getting flack due to faulty hardware and other problems and inconveniences. With the release of the xbox 360 elite, and its $480 price tag, I dont believe people should still complain about the ps3's price, at least your getting everything in one nice package, instead of xbox's approach by buying all the add-ons seperately.

I couldnt agree with you more about the wii though. Sega's vice president of marketing in the United States, Scott Steinberg predicted that the sales of Nintendo Wii's will "wane" in about 2 years. I believe that it will happen sooner than that. Nintendo's market is huge, but the people they are selling games to are also not as loyal as the people Microsoft and Sony are marketing towards. For example, my little sister got a wii for christimas. When we got it, we played wii sports for hours. My family and I had a blast with it! After about a month or so, it lost its luster. The wii is inventive and just a great idea, but the creativity pool, I believe, is being over-used and is eventually going to run dry, leaving Nintendo in 3rd place, as you've predicted.

I believe that it is still way to early to start predicting champions of this console war. It has truly been interesting to watch so far, but I do believe that the true fate of the three consoles is still up in the air.
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Too early to determine
by r_watters June 29, 2007 10:08 AM PDT
I understand your view point and it is a valid one, but I believe that you are being a little bit to easy on the xbox 360. Yes, it does have a considerable lead on the ps3, but you have to think about how the 360 started out, it was not to smooth. It took a little while for the 360 to get games on the shelves, just like its been with ps3. And who could forget the faulty hardware the first 360s had, and its still troubling them today!

I believe that your article offers a rushed conclusion of the ps3's fate, while its still only 8 months old. Microsoft was pretty smart about releasing there console early, thus putting pressure on the ps3, but they also got and are still getting flack due to faulty hardware and other problems and inconveniences. With the release of the xbox 360 elite, and its $480 price tag, I dont believe people should still complain about the ps3's price, at least your getting everything in one nice package, instead of xbox's approach by buying all the add-ons seperately.

I couldnt agree with you more about the wii though. Sega's vice president of marketing in the United States, Scott Steinberg predicted that the sales of Nintendo Wii's will "wane" in about 2 years. I believe that it will happen sooner than that. Nintendo's market is huge, but the people they are selling games to are also not as loyal as the people Microsoft and Sony are marketing towards. For example, my little sister got a wii for christimas. When we got it, we played wii sports for hours. My family and I had a blast with it! After about a month or so, it lost its luster. The wii is inventive and just a great idea, but the creativity pool, I believe, is being over-used and is eventually going to run dry, leaving Nintendo in 3rd place, as you've predicted.

I believe that it is still way to early to start predicting champions of this console war. It has truly been interesting to watch so far, but I do believe that the true fate of the three consoles is still up in the air.
Reply to this comment
Wait a minute...
by genotypewriter June 29, 2007 11:38 AM PDT
Throughout your post, you have a notion that there is space for only one type of video games and there will be only one winner... I don't know whether this is because you don't know many people or because you only care about blockbuster type games that frequent the 360 and the PS3.

However, what you say about the Wii having poor ports is true. And I don't know why anyone would want to play a lesser version of a game on a Wii when they can play the better one on a 360/PS3 for around the same price. But it seems you're putting it only in to the wrong category here... first, the Wii is from a different price class which makes a big difference as to what the product is. Then it also has a good hold on market that is its genre and hardly overlaps with the 360/PS3's orientation. So you can't say the Wii will die just because it doesn't do a 360's or a PS3's job. And there's nothing wrong with a system that's popular for party games... the current sales show this so let's give some credit when it's due.

And some facts... I'm usually based in Australia and I doubt the PS3 outsells the 360. The 60GB PS3 sells for around AUD 999 (USD 850) and it's considered too expensive for it's current line up of games by the people who think at least twice. The 360 Pro version was even available for around AUD 540 (USD 460) plus its huge collection of available titles, it's clearly the current winner.

Also, I was in Malaysia two weeks ago and I couldn't even see any other console than the PS3 which was going for about USD 510 for the 60GB version.
Reply to this comment
Wait a minute...
by genotypewriter June 29, 2007 11:38 AM PDT
Throughout your post, you have a notion that there is space for only one type of video games and there will be only one winner... I don't know whether this is because you don't know many people or because you only care about blockbuster type games that frequent the 360 and the PS3.

However, what you say about the Wii having poor ports is true. And I don't know why anyone would want to play a lesser version of a game on a Wii when they can play the better one on a 360/PS3 for around the same price. But it seems you're putting it only in to the wrong category here... first, the Wii is from a different price class which makes a big difference as to what the product is. Then it also has a good hold on market that is its genre and hardly overlaps with the 360/PS3's orientation. So you can't say the Wii will die just because it doesn't do a 360's or a PS3's job. And there's nothing wrong with a system that's popular for party games... the current sales show this so let's give some credit when it's due.

And some facts... I'm usually based in Australia and I doubt the PS3 outsells the 360. The 60GB PS3 sells for around AUD 999 (USD 850) and it's considered too expensive for it's current line up of games by the people who think at least twice. The 360 Pro version was even available for around AUD 540 (USD 460) plus its huge collection of available titles, it's clearly the current winner.

Also, I was in Malaysia two weeks ago and I couldn't even see any other console than the PS3 which was going for about USD 510 for the 60GB version.
Reply to this comment
I don't believe this guy...
by camster3 June 30, 2007 2:39 PM PDT
Now, I admit that I am not a big fan of Sony, but the author claims Sony will come dead last in Japan- I believe that is Impossible. Xbox is already dead last. In over a year and a half, they have only sold 0.4 million over there, while the Wii surges near 2.5 and the PS3 approaches 1 million through only 7 months.

Just look at those figures. They're miserable for Microsoft. I can't explain it myself, but it appears obvious that the 360 is a failure in Japan, whoever wrote this article was clearly unaware. How can you talk of Dominance for the 360 when the sales are so consistantly low?

Furthermore, the author claims that software is what drives the industry. This may be true, but I can't see that overcoming the "Novelty" of the Wii. The sales are as high as they have been since launch, things can't cool down to match PS3 and 360 sales for another few months at LEAST. Besides, nor do they have much desired software on the horizon.

I think we should wait for E3. There, we will see all this "software" you've been blabbering on about. Most Wii devlopers have only begun production recently in response to its unexpected success. It's no wonder it's Nintendo left right and centre- these guys were weary of making games, in turn, many unnamed games have been announced. Something is clearly up with the Wii. Ha, guess my soppy Nintendo affection is seeping through, but seriously, I can't stand inaccurate information...
Reply to this comment
I don't believe this guy...
by camster3 June 30, 2007 2:39 PM PDT
Now, I admit that I am not a big fan of Sony, but the author claims Sony will come dead last in Japan- I believe that is Impossible. Xbox is already dead last. In over a year and a half, they have only sold 0.4 million over there, while the Wii surges near 2.5 and the PS3 approaches 1 million through only 7 months.

Just look at those figures. They're miserable for Microsoft. I can't explain it myself, but it appears obvious that the 360 is a failure in Japan, whoever wrote this article was clearly unaware. How can you talk of Dominance for the 360 when the sales are so consistantly low?

Furthermore, the author claims that software is what drives the industry. This may be true, but I can't see that overcoming the "Novelty" of the Wii. The sales are as high as they have been since launch, things can't cool down to match PS3 and 360 sales for another few months at LEAST. Besides, nor do they have much desired software on the horizon.

I think we should wait for E3. There, we will see all this "software" you've been blabbering on about. Most Wii devlopers have only begun production recently in response to its unexpected success. It's no wonder it's Nintendo left right and centre- these guys were weary of making games, in turn, many unnamed games have been announced. Something is clearly up with the Wii. Ha, guess my soppy Nintendo affection is seeping through, but seriously, I can't stand inaccurate information...
Reply to this comment
Wow, Someone is biased...
by METALGEAR330I July 1, 2007 6:45 PM PDT
This guy really doesnt know how to look at the figures or even ask developers what they are doing/want! More and more developers (3rd party of course) are choosing to create software for the PS3 than the Xbox. The only big developers that continue to publish games for the 360 are either owned by Microsoft, or have always only made games for them. Also, games aren't originally develope with the 360 in mind. It's the PS3 that comes first seeing as how it can handle more graphicaly. Games then get scaled down to the 360's level, and then even more (along with controller remaps for the Wii). I'm not saying that Microsoft will fail, but every day is a testament to the fact that Sony is beginning its uphill climb to the top once again. Microsoft got to party for a little while, but Sony is fighting the battle and making the climb up while Nintendo just creates a new type of gaming world on its own. One where everyone can easily join in the fun and have a little gamer in them. The 360 and PS3 will continue to be mostly appreciated by hardcore gamers, and or people who owned either Xbox's or PS2/PS1's.

I'd also like to thank that other commentor that pointed out the fact that the 360 is already dead last in Japan despite its year long head start. The only difference from this generation from the past that is being noted is that more and more hit games are being developed outside of Japan whereas the last gen saw all or most of its greatest games from the island Nation.

If anything will happen in the future, it's that Sony will once agaim claim its title as King, Nintendo will have succeeded again, and Microsoft will be questioning itself as to what it did wrong again.

Thank You, and Goodnight.
Reply to this comment
Wow, Someone is biased...
by METALGEAR330I July 1, 2007 6:45 PM PDT
This guy really doesnt know how to look at the figures or even ask developers what they are doing/want! More and more developers (3rd party of course) are choosing to create software for the PS3 than the Xbox. The only big developers that continue to publish games for the 360 are either owned by Microsoft, or have always only made games for them. Also, games aren't originally develope with the 360 in mind. It's the PS3 that comes first seeing as how it can handle more graphicaly. Games then get scaled down to the 360's level, and then even more (along with controller remaps for the Wii). I'm not saying that Microsoft will fail, but every day is a testament to the fact that Sony is beginning its uphill climb to the top once again. Microsoft got to party for a little while, but Sony is fighting the battle and making the climb up while Nintendo just creates a new type of gaming world on its own. One where everyone can easily join in the fun and have a little gamer in them. The 360 and PS3 will continue to be mostly appreciated by hardcore gamers, and or people who owned either Xbox's or PS2/PS1's.

I'd also like to thank that other commentor that pointed out the fact that the 360 is already dead last in Japan despite its year long head start. The only difference from this generation from the past that is being noted is that more and more hit games are being developed outside of Japan whereas the last gen saw all or most of its greatest games from the island Nation.

If anything will happen in the future, it's that Sony will once agaim claim its title as King, Nintendo will have succeeded again, and Microsoft will be questioning itself as to what it did wrong again.

Thank You, and Goodnight.
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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