How Microsoft, Nintendo, and Sony can win the console war (page 3/3)

Sony, PlayStation 3

It could have been worse for Sony's PS3 were it not for the system's quiet return to acceptable public relations levels in 2007. Despite the console's high asking price and limited game library, things are looking up for the PS3. Thanks to Microsoft's "red ring of death" debacle, Sony was able to deflect some negative attention. But it will take more than a stumbling opponent to get Sony back on track. Here's what they should do in 2008 to muster a fight.

1. Lower the price to $399. You can talk great games all you want, but you have to own the hardware first to play said games, and the PS3's price point still isn't at a digestible level for most people. Without widespread adoption, Sony will be unable to drive growth and negotiate key PS3 exclusive games. Yes, a second price drop is hurtful to Sony's bottom line, but it's a crucial move in keeping gamers intensely interested in the PS3. The one sticky point is that even a $399 price point is too high for many gamers, as visible by the Xbox 360's strong but unspectacular sales. But Sony has the Blu-ray advantage, inroads in the HD movie market are sure to pump some added value into what is, all arguments aside, a beautiful piece of hardware.

2. Wow gamers with something new. Since announcing the PS3, Sony has brazenly hyped the Cell processor and Blu-ray with little to show for it. As a result, confidence in that promise is steadily declining. To make up for lost time, Sony must show consumers that the proprietary technology matters to games...assuming it really does. Whether that's super-smart A.I., unprecedented online multiplayer battles, or inventive use of the Sixaxis motion sensor is another story. In its current state, the PS3 has trouble differentiating itself from 360 and Wii outside of a handful of proven games and first-party prospects. The system needs a unique identity, and it needs it fast.

3. Revitalize the PlayStation brand. For the last 12 years, playing "PlayStation" was synonymous with playing video games. That's a testament to Sony's lasting impression as a game maker on par with Nintendo, but it's going to take a lot to restore the respect and admiration of gamers to PS1 and PS2 levels. With its strong lineup of first-party games, Sony is in as good a position as any to return to prominence. Still, the recent exodus of developers to both Xbox 360 and Wii leaves Sony in uncharted territory. What was once the master of third-party relationships will now have to stand on its own two foot to rebuild itself as a trusted and ubiquitous name in gaming.

Interestingly, Sony has become something of an underdog this generation despite its being the dominant incumbent two years ago. That is sure to foster respect from a forgiving and faithful sect of gamers. Avid Sony supporters only helps build moral, something it will need if it wishes to return to greatness. Who doesn't need cheerleaders from time to time?

Likely outcome: We suspect Sony will act on items one and (partially) number two. The PS3 will get another price drop in 2008 (maybe even a Christmas '07 surprise), and knowing Sony, they'll have something special to garner additional enthusiasm. With no guarantee on item number three, however, the PS3 could find itself the Nintendo 64 of this generation: a platform with some great games, but one that never fully reached its potential due to early misguided decisions.

We don't expect the Big Three to follow our sound advice. Why should they? But if they do, we can virtually guarantee all of their wildest dreams will come true. Likewise, gamers will find themselves in the middle of the most enjoyable console generation to date. Giddy up!

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