PS3 Gains Steam: Back in the Race

I'll give credit where it's due, and Sony deserves some for taking its struggling PlayStation 3 gaming console, and injecting new life into it by dropping prices. Since the company chopped the price of the 80 GB unit to $499 and introduced the $399 40 GB version, demand for the PS3 has magically increased. According to PC World, combined sales at the top 10 retailers in North America have increased by a whopping 192%, and have more than doubled overall. Reports also indicate that the PS3 outsold the Wii in Japan during the month of November.

Kudos to Sony for biting the bullet, and making a move to help remind gamers that the PlayStation 3 is still out there. However, as PC World points out, these drastic measures mean Sony will be losing money from every PS3 sold. The report says that Sony hopes to offset these losses by increasing market share and adding new game titles. However, just recently, the company slashed the price of its developer kit to help attract more third-party titles for the console. Can a healthy profit still be made by games offered at half the development cost?

The PS3 won't appeal to the same, growing "family" market that is eating up the Nintendo Wii. The "serious" gamers were enjoying Microsoft's Xbox 360 a whole year before the PS3 even saw the light of day. Those who really wanted the PS3 sat in line for hours, and even days, to be one of the first to snag it. Obviously cutting the price by about $150 opened up a new group of customers that were just waiting for more affordability. But can the PS3 keep it up? The holiday shopping season will be a prime indicator of its likely market position for 2008.

Nevertheless, congrats to Sony for managing to generate new interest in the PS3. The three-way console race just got a lot hotter!

Lines Form for iPhone?

You never know what to believe, but sources on the ‘net claim that line-ups are already forming outside of the gorgeous New York City Apple store, as anxious customers await the launch of the much-anticipated iPhone. The device won’t actually hit stores until June 29 – three days from now!

I’m getting a case of déjà vu, as we saw a similar situation mere months ago when the Sony PlayStation 3 and Nintendo Wii gaming consoles hit the market. Will the hysteria turn into disappointment once consumers shell out the $500 or $600 the unit will cost? Or will people by praising Mr. Jobs for providing them with the phone/music and video player/digital camera/Internet browser that they’ve been waiting for all their lives? One thing's for sure: Jobs certainly knows how to create hype around a product!

When it comes to pricing plans, sources say that they will cost anywhere from $60 to $100/mth (on top of the actual iPhone purchase price, of course); and, in an interesting twist, customers can sign up through iTunes rather than in-store. Mac fanatics everywhere are undoubtedly clasping their hands and gritting their teeth in delight right about now.

So far, the only negative comment I’ve heard about the iPhone relates to the difficulty one might have in locating one for purchase. I’m not convinced of its leader status just yet (after all, I don't even own an iPod!), but I’m willing to keep an open mind. As for us Canucks, hold tight, because there’s still no confirmation that the device will even see the light of day north of the border.