While the site is under construction, a copy of my editorial"The Fall of Sony: From #1 to (Barely) #2", on it is still around at http://www.gamer20.com/features/347, here's the basic gist:

"What’s ironic is that it was Microsoft who trumpeted the strategy with the original Xbox that inspired the strategy of the PlayStation 3. Rather than release slightly worse hardware at a lower price, Sony invested millions into its Cell processor technology and all of the other components that caused the PS3 to retail as high as $599 at one point. Sadly, even with the high price Sony was still selling them at a loss.

What’s unfortunate for Sony from a business perspective is that it got so caught up in a graphical penis-measuring contest with Microsoft, that it lost sight of the fact that it didn’t need a multi-core, 8 SPE pixel generating doomsday device. That’s not how it won the last console war and it’s why that even in the event they stay on course to take the #2 position behind Nintendo, they will still have lost this generation.

Now it’s reasonable to assume that at least a fair percentage of the 140 million PS2 owners were “light” owners, buying the occasional game here and there, but in this generation have opted for the Wii to fulfill those gaming needs. What Sony did, however, was totally alienate that consumer, and now it’s feeling the pain. "

While the site is under construction, a copy of my editorial"The Fall of Sony: From #1 to (Barely) #2", on it is still around at http://www.gamer20.com/features/347, here's the basic gist:

"What’s ironic is that it was Microsoft who trumpeted the strategy with the original Xbox that inspired the strategy of the PlayStation 3. Rather than release slightly worse hardware at a lower price, Sony invested millions into its Cell processor technology and all of the other components that caused the PS3 to retail as high as $599 at one point. Sadly, even with the high price Sony was still selling them at a loss.

What’s unfortunate for Sony from a business perspective is that it got so caught up in a graphical penis-measuring contest with Microsoft, that it lost sight of the fact that it didn’t need a multi-core, 8 SPE pixel generating doomsday device. That’s not how it won the last console war and it’s why that even in the event they stay on course to take the #2 position behind Nintendo, they will still have lost this generation.

Now it’s reasonable to assume that at least a fair percentage of the 140 million PS2 owners were “light” owners, buying the occasional game here and there, but in this generation have opted for the Wii to fulfill those gaming needs. What Sony did, however, was totally alienate that consumer, and now it’s feeling the pain. "

While the site is under construction, a copy of my editorial"The Fall of Sony: From #1 to (Barely) #2", on it is still around at http://www.gamer20.com/features/347, here's the basic gist:

"What’s ironic is that it was Microsoft who trumpeted the strategy with the original Xbox that inspired the strategy of the PlayStation 3. Rather than release slightly worse hardware at a lower price, Sony invested millions into its Cell processor technology and all of the other components that caused the PS3 to retail as high as $599 at one point. Sadly, even with the high price Sony was still selling them at a loss.

What’s unfortunate for Sony from a business perspective is that it got so caught up in a graphical penis-measuring contest with Microsoft, that it lost sight of the fact that it didn’t need a multi-core, 8 SPE pixel generating doomsday device. That’s not how it won the last console war and it’s why that even in the event they stay on course to take the #2 position behind Nintendo, they will still have lost this generation.

Now it’s reasonable to assume that at least a fair percentage of the 140 million PS2 owners were “light” owners, buying the occasional game here and there, but in this generation have opted for the Wii to fulfill those gaming needs. What Sony did, however, was totally alienate that consumer, and now it’s feeling the pain. "

PS3 Hardware May Finally Be Profitable in 09; Price Cut Possible?
http://blog.gamer20.com/2008/12/ps3-hardware-may-…

The big problem is that it's kind of hurting them in the overall console race. I wrote about it in-depth in another article here on Gamer 2.0:

The Fall of Sony: From #1 to (Barely) #2
http://www.gamer20.com/features/347