Right. With what Sony has said. But the point that most of us are trying to get across is that from the consumer's perspective it is a bad move to pull stuff like this, and you keep implying that it is somehow positive. I am asking you to state one negative thing you could possibly see resulting from this in the market because there are a bunch. This isn't a smart move for Sony. Let me start the ball...
The videogame industry model has always been based on hardware makers grabbing royalties from 3rd party software or making a crapton on their own good software sales. That way, they can take a hit on their hardware in some fashion.
So now, Sony wants users to be able to upgrade their videogame hardware like a computer. They can use it for PS3 games, or they can use it to surf the web and store data like a computer. They can also use it to play blu-ray movies. Let's look at some consumer break downs.
Gamers
We've got gamers...who just want to game. They want to invest in $50 purchases every now and then to entertain themselves or they want to buy them more frequently. Either way, they want to game. But to game with Playstation 3, they need to invest $500 at least, $600 if they want all the features. Already there's mixed signals from Sony from a consumer perspective. Which do I buy? So now we've got at least a $500 barrier to entry before a gamer can play even one game. Tack on a game, and you are at $550 possibly $560. The demand curve is taking some major hits on the software side. For gamers, Sony cannibalizes the value of the software by making a huge hardware cost. The software becomes less valuable because it is harder to attain. Gamers buy less of it because they can afford less of it. And the reason? Because gamers were forced to buy into Sony's next gen dvd format, a format that might not have value to them because they game to game and not to use an HDTV to play movies or see a clean image. Increased storage? Sure. But a gamer isn't going to scream the benefits of Blu-ray because of its increased storage. It will scream the benefits of the good games that take advantage of that storage. So to a gamer, Blu-ray isn't an exact fit in terms of adding value and cannibalizes the gamers software more than it enhances it. Additional hard drive space and memory upgrade? From a console gamers perspective those are things which really don't have a lot of value because a hard drive doesn't necessarily complement software, and memory is just representative of another barrier to software.
Does a gamer value the PC aspects of Playstation 3? Perhaps. Internet browsing is definitely a benefit. The thing doesn't seem to be able to word process and it doesn't have Windows, the most recognized operating system in the world on it. But wait. I already bought a PC for all this stuff anyway. So as a gamer, does this aspect add value for me? No not really. I'm not sure I would say it takes away from the value of the PS3, but I wouldn't say it adds anything as I already have a computer with all my files etc. Online gaming benefits me, but its nothing hideously new that I can't find on a 360. These things I didn't ask for, but I am paying for them. And my PC does a lot of them a lot better, especially upgrading if I want to go that route and invest in it.
I'm a mass market gamer and I came to the store to get Playstation 3, the next-gen gaming machine that is going to improve my experience ten fold. But I have to pay $500 for it? Wait $600 for all the features? Wait almost $800 when retailers force me to buy games with it? Hmm. Maybe I'll wait a year...or two to get it.
PC User
Basic vs. PC Gamer
Basic
I'm a basic PC user and I want to type documents, print, use e-mail, use Excel to do some calculations and other Microsoft programs to do some other things.
Case 1 - I already have a computer I want to upgrade and I'm not interested in a PS3 (most people already have computers)
Case 2 - Looking for a brand new computer, my old one has too much crap, I can't build it
Case 2
Wait, you say I can buy the Playstation 3 to do most of these PC things? Hmm. How much does it cost? $600? Sounds less than a computer, sounds like a good deal if it is more advanced. Wait, it doesn't come with a monitor, I have to purchase it? Wait, I have to get keyboard and mouse too? Okay. That's pretty rational. Wait, I can't upgrade most of the things within it if I want to in the future? Hold on a second, it uses an operating system that isn't windows? Sony doesn't have access to Microsoft Office so I won't know how to use all those programs (assuming they are available on PS3)? What you say? It plays videogames. I'm not interested in those same old things, I'm a person from the mass market of PC users who doesn't game but uses PC for life things. Wait, actually. I've never heard of the Playstation 3's PC capabilities because I'm a normal PC user and I don't pay attention to the videogame industry or the videogame section of retailers, where Playstation 3 will likely be stored. This doesn't seem like it is up my alley. I would prefer a normal PC that I am used to.
PC Gamer
Wow, a really powerful PC for $600 with lots of bells and whistles. I can upgrade my hard drive in the future. I have a monitor I can connect to it. I can use the internet. Hmm. Linux sounds good, but wait...as a mass market PC gamer (if there are any left), I would rather use windows. And wait...I already invested in a $2000 desktop with tons more bells and whistles last year. I bought it because my family uses the computer for all its other uses and I use it for games. So it has both power and functionality. My family wouldn't necessarily understand linux, or non-microsoft programs easily. They are dumbcakes but they are like most Americans at least. I don't know if such a drastic switch is worth it. Wait, I can't upgrade it either in most ways? It plays pretty Blu-ray dvds, that's nice, but I'm not a fan of movies...I'm a PC gamer looking for the best PC hardware and the best games. What's that? The Playstation 3 will be outdated relatively soon in terms of processing power and graphics? Can I upgrade those things? Wait, I hate consoles anyway so I never even heard about this and continued to buy my ridiculous PCs. I think I'm going to stick to what I am used to...PCs.
Obsessive compulsive Tech DVD Watcher
Playstation 3 is so cool! I already have an HDTV and I am going to buy it to watch Blu-ray's prettiness. I'm not really representative the population out there, most of whom don't buy tech just because or don't own an HDTV. I'll pay $600 for that blu-ray player though. But wait, is Blu-ray the definitive standard? Is it going to win the war of next-gen dvd formats? Is it risky investing in a blu-ray player just because? Probably not, I'm tech obsessed. But do I help Sony attain economies of scale? Not really, I represent a small portion of the population.
Obsessive compulsive DVD watcher
Hello! I love DVDs, I have like 1000 of them and I love watching them over and over while eating popcorn and making out with my girlfriend/boyfriend/cow. I will keep buying DVDs because I love them and I will keep adding to my collection. What's that you say? I can watch my DVDs in better resolution etc., with Blu-ray? What's blu-ray(because most of us haven't heard of it)? Oh....so its the latest tech and the Blu-ray dvds are superior in quality. That sounds great. I can play my Dvds on the blu-ray player, right? Awesome. This sounds better and better. How much do I have to pay for it? $600? Oh, and I need an HDTV too (most of us don't have it)? That's a pretty heavy investment just for my Dvds to look nice on screen. I think I'll pass. But wait, it plays videogames too? That sounds great, its a benefit, but I really love DVDs and I'm not much of a gamer.
Hybrid of EVERYTHING
By definition, if someone is interested in all these functions, there can be no more than 25% of the population that would invest in a PS3 as a result because HDTV hasn't reached more than that number of the population. But the figure of people who would purchase it is likely much less, as some might not be interested in paying $600 just to increase the screen quality even if they have an HDTV. Also, many of the HDTV users don't necessarily play games. Etc. ETc. Is there REALLY that much unquestionable potential here? Hmm.
I have likely missed a group of consumers who would PERHAPS be interested in this things. If so, please add. But one must admit...with all these options for each group of consumers to reject the Playstation 3 as the best way for them to do their respective activities, is there not incredible risk and therefore might it be a mistake for Sony to be tacking on bell after whistle and making things more complicated and super-hybrid like? I say yes.
Still editing....
IF Sony were inventing the PC or the games machine for the first time, this strategy might work because it would be so new that adoption rates would be ridiculous. But both industries are incredibly well developed (especially PC) and very saturated (Especially PC).
Videogame Industry
Oh and wait, then there's the videogame industry, the thing off of which the Playstation brand was built and the area where it is most known. Hold on a second...what if users don't adopt this monstrosity of a machine? $500 or $600? $60 games? 3rd parties have to work HOW hard to make the games look next gen? If the users aren't there, where are their profits coming from? The console industry has always excelled at focusing on games. It is why it has worked because it is usually ahead of PC in terms of pure gaming bliss. But if it loses that focus, will it continue to hold up? Is there risk here too?
Conclusion
I'm not saying the Playstation 3 is going to flop. I am saying that Sony is taking risk after risk branching into all these ridiculous areas. You figure they would expand things one at a time, but they are exploding with all these PC comparisons console hybrid of death that you can do everything and anything with but there are limitations so can you really? It is really quite a risky bet, one which could go wrong in so many ways because Sony isn't the best of the best at a lot of these areas such as internet browsing system creation and stability etc. And what I am saying, Gofreak, is that yes...there are potential negatives to these things that Sony is doing. And I think they should be recognized.
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