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January 23, 2009 6:00 AM PST

PlayStation boss: Sony rules in consoles. Say what?

by Matt Hickey
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If there's one word that often fits Sony, it's "hubris." Sony Computer Entertainment America President and CEO Kaz Hirai likes to talk big, but I'm a little worried about what world the head honcho is living in.

Kaz Hirai

(Credit: SCEA)

Kaz declared in the February issue of Official Playstation Magazine --in the same article he says the Xbox 360 "lacks longevity"--that he believes Sony is the "official industry leader" in the gaming console market. How does he reach this conclusion? After all, the PS3 is in third place, according to data from research firm The NPD Group.

"This is not meant in terms of numbers." Oh, well then. "Or who's got the biggest install base." Um, Kaz? "Or who's selling most in any particular week or month." Aren't those the indicators people look to when considering leadership?

"But I'd like to think that we continue official leadership in this industry," Kaz said. And I'd like to think I'm next up on the Amy Adams crush list, but that doesn't necessarily make it so.

He's got no kind words for Nintendo's Wii, either, basically dismissing it as a non-competitor. But Kaz, whether or not you like it, you're in a three-horse race. The Wii, Microsoft Xbox 360, and PlayStation 3 are all good consoles that go in very different directions. And we're all for rattling sabers. Both of those are good things for technology and for gamers; not only do they force the console makers to constantly one-up each other, but they give the users far more choice.

But that old adage is true: Actions speak louder than words. When you overtake Microsoft in sales, Sony, I'll start listening. In the meantime, feel free to preach to your choir.

With more than 15 years experience testing hardware (and being obsessed with it), Crave freelance writer Matt Hickey can tell the good gadgets from the great. He also has a keen eye for future technology trends. Matt has blogged for publications including TechCrunch, CrunchGear, and most recently, Gizmodo. E-mail Matt.
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Add a Comment (Log in or register) Showing 1 of 2 pages (77 Comments)
by umbrae January 23, 2009 6:27 AM PST
Just shows how diluted Sony is. When will they realize the Jedi Mind Trick doesn't actually work.
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by tipoo_ January 23, 2009 7:12 AM PST
LMAO
by Argyll January 23, 2009 6:41 AM PST
He's lying like all corporate idiots. You want to see who's in first place? Walk into any Walmart or similar type store and see how many of the different consoles are available for sale.

Playstations II and III - plenty.
Xbox 360 - plenty.
Nintendo Wii - "We've got 60 on order and get two or three a week." Which they sell in 5 minutes flat! Leaving no Wii's.

Wii is the leader! When you can't keep a two year old product in stock because of limited supply and high demand - that's the leader!
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by myles taylor January 23, 2009 7:17 AM PST
I don't think that's really an indication. I mean, it's close but not quite. I believe the PS2 is still the most popular console out there, both in sales and in install base.
by socioAnarchist January 23, 2009 8:01 AM PST
Your argument is null. You are basing your validation for a winner on a select market of individuals - budget minded consumers with children shop at Walmart. 'They' are not looking to expand their budget to spend $500 plus on a gaming console. You need to be looking at the over all numbers in console sales to make that judgment and then take into account system features, expansion, life expectancy, game play and consumer satisfaction. An individual in the market for a Wii will not be looking at the PS3 or xBox as an alternative - the game play is completely different. I agree with Hirai that the Wii is not in (full) competition with the PS3 or xBox. The Wii is selling a game experience not a game console. It's graphics, system and core features are limited and will need more revisions in the future to keep up with growing trends in consumer needs.

Each console has a targeted market and play - as an owner of all three systems I can say that the PS3 is by far the superior system in aesthetics, features, game play (online) and function. I cannot tell you how many time I hear xBox friends complaining that they have to send their paper weights back for service.

Microsoft plunges inferior hardware and software programming (I am a Software Eng.) down the proverbial toilet pipe to the consumer and (unfortunately) makes up for this with its hype marketing, word of mouth tactics and budget(esque) prices that produce sale numbers that keep them in the running.

The Wii is a 'Snap Bracelet' trend to save an faltering business model - not a keystone to build an empire on.

*Insert Debian between lobes; smile!
by ibeetle January 23, 2009 8:18 AM PST
Like others have said your post means nothing. Yesterday I was in GameStop. Wii's stacked to the ceiling. Playstation 3 sold out. Xbox 360 (Arcade Edition) sold out.
One retailer at a giving point in time on a given day is not an indication of a systems health in sales. These systems are sold world wide and all three companies have International divisions. All that matters to these companies is how much money they are making and how many years out of a system they can get.
by celticbrewer January 23, 2009 10:09 AM PST
Indeed, the number mean nothing. You can go to one site that says ConsoleA outsold the rest last month and another says it was consoleC.

Sales figures don't mean anything compared to actual consoles alive and in use. And installed base is not a scientific number.

You've got 3 different consoles for 3 different types of people. Why does everyone have to pick just one?
by VOR75 January 24, 2009 6:19 AM PST
GO to any site? Yeah right... NPD is the only official thing in the US for tracking sales. Most sites list NPD which even MS,Sony and Nintendo use. NPD shows the Wii to be the number one console. Anything else is just fanboy ignorance. Every gen is judged based off of console sales. NO reason to change it now jsut because the majority of Sony fans are crying 12 year olds that cant stand to be in 3rd place and feel first place should just be given to Sony just because.

Wii's are sold out in every store across the globe. Sure you can find a few here and there but its not like what you guys want to claim..I mean do any of you even stop to think about what you are saying... One minutes its Wii demand is artificial they are faking demand.. The next you claim that Wii's are on every street corner stacked up 100 high just to try to say it isnt number 1...
by mirimiri77 January 24, 2009 8:41 PM PST
whoever got insulted from Kaz statement personally i think is ignorant.let sony say whatever they want u r happy with ur console ok .
by -fjtorres- January 23, 2009 6:43 AM PST
Yes, Sony *is* dilluted; they are fighting two many wars against too many opponents and losing them all.
They are also seriously *deluded* if they think declaring themselves "official" anything means anything anywhere.

What's that old line: "Better to remain silent and be thought a fool than to speak and confirm it?"
A console that just had two back-to-back months of year-to-year declines in sales *at the peak selling time of the year* is hardly leading anything except, maybe, a retreat from the mass market.

This stopped being funny and moved into pathetic; to think people's livelihoods depend on idiots like that...
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by sparrowhyperion January 23, 2009 6:51 AM PST
Maybe if Sony got off it's high horse, stopped deluding itself, and priced the PS III so you don't have to be a corporate CEO to afford one, they might catch up. The Sony PS3 is the luxury car of consoles. Too bad so few people can afford a Cadillac in these times, and have to settle for a Kia.

WAKE UP SONY!!!
Reply to this comment
by myles taylor January 23, 2009 7:20 AM PST
Well I wouldn't say that losing more money per console is what Sony needs to do right now. What they need to do is get the costs lower. They are currently losing money on every console they sell.
by mirimiri77 January 24, 2009 8:30 PM PST
perhaps you should wake up and work more if you want to buy ps3 ,nobody obligates you to buy ps3,if you cannot afford it then buy a wii
by camp88 January 23, 2009 7:04 AM PST
Perhaps I've misread the Sony Exec's statement but he didn't say PS3, he said Sony is the leader.

That's not semantics if one includes the PS2, so . . .

Is Sony the leader when one looks at PS2 and PS3 combined? This gets back to the issue of longevity, that fewer gamers are using older MS or Nintendo products and that PS2 machines still contribute greatly to Sony's position in the industry, particularly in terms of an installed base.

In other news, XP may be the leader when it comes to installed operating systems.

The difference here may be that PS2 owners are still purchasing software in significant numbers.
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by Renegade Knight January 23, 2009 10:17 AM PST
Good Summary.
by Roy_Hobbs January 23, 2009 7:07 AM PST
You have to be a CEO to afford $399? The economy might be bad but come on, it $399
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by ibeetle January 23, 2009 8:25 AM PST
I know you are trying to make a anti-Sony comment but you do know that the XBox Elite (with no wireless network capabilities and no high definition disc playback) is the same $399.
If you compare the Arcade Edition to the Playstation 3 that is like comparing the stripped down $18,000 economy edition of the Jetta to the $25,000 luxury edition of a similar car.
by Inconnux January 23, 2009 8:28 AM PST
When I went out to buy a console I looked at a number of factors.
#1 price - at the time the Wii was by far the lowest (although xbox360 arcade is now)
#2 games - for my family Nintendo rules in family friendly software and has enough 'hardcore' titles to keep me happy
#3 innovation - I detest the old console controller for 90% of games. The Wii has been a huge innovator with their new controller.
#4 Online play. Wii has online that I don't have to pay for.

Sony lost out on every category that I was looking for. PS2 was a good system, but Sony really blundered badly with the PS3. Perhaps they need to rethink their strategy because they are getting Dominated in this generation of consoles. They kind of remind me of EDO or Sega.
by Notoapplefanbois January 23, 2009 9:33 AM PST
The elite's $399 in the US? we get it for £220 in the UK which at current conversion is about $280 but that's just because of a weak £.

Also with the Elite you get triple the storage of the ps3 that costs $399 and you can dl some HD movies off xbox live which is cheaper than buying the Blu-ray so value for money wise they lie about the same with maybe the Xbox a bit further in front because of the choice of games.
by mirimiri77 January 24, 2009 8:26 PM PST
no,u dont have to be a CEO to afford $399.U just need to stop being lazy and work regularly.do u have any idea why ps3 cost that much?dont speak b,****.there,s a saying in my country-when u sleep,strech your legs as far as the blanket goes,otherwise your feet will feel cold.....meaning if you cant afford to buy ps3 ,you have to just buy wii if you can afford that .if not than u are destined to live a cheap life.....
by grilledcharlie March 1, 2009 7:39 AM PST
@ ibeetle
I own both an XBOX 360 Elite and a PS3. The Elite came with a bigger hard drive, an XBOX Live headset, an HDMI cable, component cables, an ethernet cable, a controller, Netflix integration, original XBOX game backward-compatibility, and 2 very respectable games (Marvel: Ultimate Alliance and Forza 2). My PS3 came with a bluray player (main reason I even bought it), a controller, a laughably short charge and play cable for the controller, and no joke, a/v cables. No HDMI or component cables for an HD gaming system/bluray player? Seriously?
You're right about the XBOX Arcade Edition though. It is stripped down. However, that economy edition of the Jetta as you put it will still get you to the party. My 11 year old cousin bought the Arcade version because he has very little money. He was able to add on a bigger hard drive and other features as he could afford it.
by ewsachse January 23, 2009 7:10 AM PST
Sony is stretched to far over too many product lines.

I really like their Alpha DSLR line, but that is mainly because they took over Minolta, my favored SLR camera from the film era. Sony puttered around with their DSLR's for a few years, but they are finally releasing some innovative DSLR's and accessories.

However, their video games - I would never buy one of them. When the PS1 was out, I made the choice of the Sega Saturn. Lost out on that choice. When the PS2 was out, I was strictly a PC gamer. With the PS3 out, I chose the Xbox 360. Price and available games were a huge factor, and the 360 has more of the type of games that I like to play.
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by celticbrewer January 23, 2009 10:13 AM PST
"Sony is stretched to far over too many product lines."

Yeah, you're right- and Microsoft only produces game consoles.
by DrtyDogg January 26, 2009 3:34 AM PST
@celticbrewer: no but nintendo does.
by grilledcharlie March 1, 2009 7:44 AM PST
@celticbrewer
Microsoft is stretched even further than Sony. The difference is that Microsoft is making money hand over fist, while Sony has been purging money.
by PunkCityKid2 January 23, 2009 7:20 AM PST
Wii is intentionally under produced by Nintendo. You cannot use the lack of availability as a reason for superiority when a company doesn't produce the same supply. It's artificial demand.

People who complain it costs too much should look at the companies manufacturing cost. To make a PS3 costs Sony $480. It is a superior quality machine with free network access. Hands down the better console of all three. Not even going to go into playstation's commitment to their devices, b/c history speaks for itself. Go buy your Sega Saturns...i mean xbox 360's haha
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by Inconnux January 23, 2009 8:31 AM PST
It costs too much for a Gaming console, regardless of manufacturing costs. It went with an 'all in one' package instead of focusing on being a good platform for games! Fancy graphics do not equal good games. Even if Nintendo is intentionally under producing the Wii, the Wii is dominating both other platforms combined.
by Renegade Knight January 23, 2009 10:21 AM PST
@Inconnux

It's a good platform for games and it's also an all in one. This wasn't "instead". The 360 is playing catch up in the "all in one" dept. Both do good at games. That said Sony's interface for using the "all in one" parts is horrid. The 360 may have a better interface for the less things it can do. Tha'ts not really an improvment.
by socioAnarchist January 23, 2009 11:41 AM PST
@Inconnux
The Wii maybe dominating based on a perceived supply demand model that is being self-throttled by the business developing the console, but once the luster of "oh, we can't get one because the Wii is sold out" (i.e. business limits supply) people will stop paying attention and move to better core featured systems. The Wii is the Apple Pippin of the late 2000's - Yes I pulled the Apple Pippin out.

The PS3 is built with the intention of being a lasting system - they may not be beating up xBox right now, but as MS tries to play catch up PS3 is still selling a far superior system on components. The price tag is an investment in higher-end hardware that is less restricted by limits and can deliver superior gaming experiences in the future - allowing more avenues of product development for game / system developers.

http://kotaku.com/5117096/playstation-3-still-selling-at-a-loss-but-a-much-smaller-loss

http://www.engadget.com/2006/11/16/sony-losing-mad-loot-on-each-ps3/

Sony's intention is to build and deliver a system for you to grow with - unlike xbox (and MS mantra); hastily develop, quickly build, release, roll back to previous version, offer refund, take off shelf.
by VOR75 January 24, 2009 6:14 AM PST
Sorry but anyone who thinks WIi demand is artificial it totally clueless. They make 2.4 million consoles a month. They sale 2.4 million consoles a month. That is higher demand than any console in history has ever seen. You cannot fake that kind of demand. Just another 14 year old proving Sony fans are the most ignorant of all gamers. Sony had supply issues with the PS2 and even its demand was not as high as Wii.. Oh but I bet you never had an issue when it was the PS2 that was sold out.. I also bet you cry over the shovelware on Wii, while forgetting that 90% of those games were on PS2, and if PS2 owners didnt buy shovel ware games those developers wouldnt be here today to put them out on Wii.
by ktaylor100 January 23, 2009 7:27 AM PST
Agreed!
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by -fjtorres- January 23, 2009 7:33 AM PST
Hey! Mr Hirai reads this blog! And posts under multiple names, too. :-)
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by elllroy January 23, 2009 7:42 AM PST
maybe he meant by revenue? it is possible that sony has the highest revenue of the 3 because of the high asp?
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by JustinMadill January 23, 2009 7:46 AM PST
Intentionally under produced? Typical Sony fan boy disregarding any other news. If you had bothered to actually research you would know that Nintendo month to month makes new sales predictions and bases their production on those numbers. They have been doing this since last January and every month they underestimate themselves.

As far as the PS3 costing $480 that just shows how desperate Sony is right now, they have not yet taken the time to refine manufacturing processes to lower the cost but i also believe that they have yet to make a single dollar off the actual console.

Nintendo on the other hand is making a killing at roughly $100 profit off each console, sure they don't hit the same gaming market but Nintendo's business plan works and they have ensured that they are here for the long run.
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by mirimiri77 January 24, 2009 8:38 PM PST
guys i dont understand why you have to ***** for others consoles if you are happy with ur console thats it.how do you know how much money sony make on every ps3 and its not up to us to know.my God i guess playing to much videogames damages the brain .dont forget to relax every hour of playing video games.
P.s i have ps3 i love it i am happy ,i dont care how much sony earnes on every console and i dont care what the otherconsoles do,when i wont be happy with my ps3 then i change into the better console period.and again spend more time with friends outside in society rather than in compiuter or whichever console you own.dont take it personly.i never comment.i just replay comments
by erictbar January 23, 2009 7:58 AM PST
I think camp88 could be right. I did not read the original article, but in this article he says that Sony is the leader, not the PS3.

Sony is still selling PS2s, but more importantly has a very large installed base (I still have a PS2 with FireWire, which I believe was the first model). It is possible that these droves of PS2 users are still buying PS2 accessories and games.

Though if you only compare the current generation of consoles, they are dead last in terms of sales. In terms of quality, I think they are a great choice if you want fantastic graphics and also need a BluRay player, and can afford one.
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by Prince2k3 January 23, 2009 8:05 AM PST
Yeah I can see how people can just only look at the ps3 since its there newest system but Sony is still selling ps2 and psp too. if you combine all their system that they sell then its a different scene. And if you look at ps3s sales microsoft was losing its gap until they lowered the price of the xbox, which had a year headstart it should have blown away the ps3 in sales IMO. In these times cheaper products wins and I hope Sony realizes that. I know there trying to justify their brand and all but making a sales is just as important and Kaz I'm sorry to say you don't rule in consoles Nintendo does all ways has and all ways will.
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by dsldust January 23, 2009 8:13 AM PST
It puts a smile on face to listen to anyone even try to compare the Wii to the PS3, the two units are from two different worlds and are marketed to two totally different genres. The Wii is for kids, period. There is not a true gamer out there that would pick a Nintendo Wii over a PS3, even at the price difference. The truth is, you get what you pay for.

Now, when are the 360 fans going to actually step into the realm of reality? The 360 fans only argument is that the PS3 is too expensive. The PS3 80GB is available for $399.00, which is $100 more than the XBOX 360 currently available; however, your PS3 includes a bigger HD, Blu-Ray player, and WiFi. The HD player alone for the XBOX is $100 and the Wifi will set you back another $50.00 minimum, so who is getting the better deal again? Now if those things don't matter to you then by all means spend the $150 and get the arcade version XBOX and you truly stayed within your means, but if the all-around system is what you are looking for think before you speak because that $399.00 PS3 price tag ain't quite as bad you think.
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by Ugotownedo January 23, 2009 9:45 AM PST
No, 360 fans also have another argument: Games. I'm not saying PS3 doesn't have any games, I'm saying that the 360 has a lot more. And that's what a console is for: games.

Yes, I'll agree that the accessories are overpriced. "The HD player alone for the XBOX is $100?" Did you honestly just mention an HD player? When will YOU step into the realm of reality buddy? Everyone knows that Microsoft wasn't serious about HD-DVD in the first place, they just temporarily supported HD-DVD to delay Blu-ray's format win. The HD-DVD doesn't cost $150, it's costs like $50 because it's discontinued.

And what the hell's an HD player? It's either HD-DVD, which nobody cares about (including Microsoft), and there's Blu-ray, which the 360 does not have. So technically, there's no price for an "HD player," seeing as there is none!

The PS3 is definitely a better value, but most consumers just want something that can play games, and don't want to pay more for something that they don't really need, especially with the economy and all.

Example:

"Hey Jim, I just got a new Toyota Corolla."
"You idiot! For only 50% more of the cost, you could've had a Camry, with a more powerful engine, better handling, and more features!"
"Yeah, but I just want a good car. I don't nee-"
"Idiot!" *walks away*
by celticbrewer January 23, 2009 10:23 AM PST
"The Wii is for kids, period"

what the hell are you talking about? The majority of wii owners I know are late 20's and early 30's. But, now, even their parents are buying them. Do you think 13 year olds give a crahp about wii fit? Who's buying all of those, then?

It'd be much easier to pidgenhole the Xbox crowd into an age bracket than wii, or even ps3.
by Madmanonfire January 23, 2009 4:50 PM PST
Dsldust must be living under a rock if he's still using those age-old foolish arguments. A real PS3 fanboy.

As for the article, Kaz must be living in the past in his glory days of the PS2. They just made a bad move with the PS3 and they're suffering for it.
by ibeetle January 23, 2009 8:14 AM PST
Misleading headline and hook
Complete c|net nonsense. In a different time the person who wrote this article would have been fired.

All Sony is saying is in the long run... two or three years down the road; in the end the Playstation 3 will do better than the XBox 360. And they are right. The Japanese plan 10 years ahead. Microsoft will be releasing the Xbox replacement next year. Sony and Nintendo will be lowering the prices on their units.

Hey c|net why don't you ever have articles about how Microsoft counts replacement XBox units as sales? And that an estimated 4 million XBox 360 units were never really sold from retailers but are replacement units from previous models red rings of death.
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by Zoobie January 23, 2009 9:07 AM PST
There is no Xbox 720 in 2010. Who's asking for it?

MS Investors--nope. They'd rather see MS sell the 360 at a profit, than a 720 at a loss.
MS Management--nope. They want to keep investors happy. MS will time their next console to come out 1 year before PS4, and will be happy to generate a profit in the medium term. The biggest watch-out will be if Wii HD becomes a reality, in which case a 360 motion-control unit might emerge.
Developors--nope. I keep seeing earnings releases from developers who are struggling financially to make a profit this generation. Sure, there are the mega-hits, but average selling games don't always turn a profit.
Mass market consumers--nope. A lot of people still haven't bought into current generation HD units and spent money on the Wii instead. I believe a lot of those people will buy a 360 or PS3--but the price still isn't at a mass adoption level (although the arcade version is close).
Early adopters--finally, yes. This group can't wait to get their hands on something new and will always push for sooner rather than later. Unfortunately, no one else is ready to jump with you. Be patient!
by cmstratton January 23, 2009 8:16 AM PST
Can't blame him for talking a big game - he's Sony's leader - he needs to. And totally agreed the PS3 is WAY behind in terms of sales and install base, which are the measures the business world uses to declare a market leader. That said though, if you look at the technology behind the gaming systems, I'd have to argue the PS3 has the most advanced technology architecture. Unfortunately that's not translating into sales. Maybe it went too far in terms of horsepower and priced itself out of the market lead.
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by aaroberts January 23, 2009 8:54 AM PST
The most important point is that if Sony is deluded into believing it's own press than it's not listening to its customers.
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by NeoAtreides January 23, 2009 9:12 AM PST
He's going back to the "power" of the system and R&D, which is impressive. But Sony has had plenty of "powerful" machines in many different types of electronics, and still failed with many of them.

I don't think it's pricing so much as support. They have pulled so many features from the new models that, should my 60GB break, I might not replace it with a new one. Third party developers are typically releasing bonus content for XBOX 360 (Fallout being a HUGE example-2 full add-on expansions planned). Between Sony stripping the thing and all the best bonus content going to 360, I might bow out of console gaming altogether.

The only reason I haven't bought a 360 is that I don't want to put down so much money for a console that self-destructs in 18 months or less.
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by tek-ed January 23, 2009 9:40 AM PST
Hmm...I have both the Wii and the Xbox. I see no reason to even look at the Sony PS3 (or any other Sony branded item for that matter, ever since they <Sony> decided that destroying personal computers with their badly written root-kit was a good corporate citizen thing to do)
And I think he is wrong to dismiss the Wii. It is doing everything that the other consoles do and is some cases better!
If the Sony chief thinks that the Playstation is better, then he needs to tell us *HOW* it's better. Instead of comparison charts that list stats and facts, tell it from a gamer standpoint!
And speaking of gaming...isn't this the whole reason to have a gaming platform? Honestly, I find the games for the PS3 to be lacking and boring. The game styles for this platform seem cartoony and with child-like themes. Plus, the lack of a haptic controller severly limits the playability of most games.
I love the Wii and how you interact with the applications. I have no gripes for the Wii. I love my xbox, but only for the games. The console is ugly and extremly noisy. And I have to replace it every 8 months or so due to the red-ring of death. (lucky it's covered by warrantee) ..but I love the games. The games for the Xbox360 seem more "grown-up"! Xbox gets it. Gaming isn't just for kids...in fact a recent (don't have the page, but a quick google search will verify this) study has shown that the gaming platforms are dominated by the 22-34 age range of young male adults! And the haptic controller. This is a great controller...
Ed
web/gadget guru
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by mirimiri77 January 24, 2009 8:48 PM PST
as for the record the Wii is the one that looks cartoony and childish console its a reality .period
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