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Sony's president feels that the Xbox could force the company's hand in releasing its PS3 console earlier than intended.

In a recent interview with The Financial Times, Kunitake Ando, president and CEO of Sony, said that the Microsoft Xbox, which comes with a hard drive and Ethernet adapter out of the box, could force the company to transition to the PS3 earlier than intended. "The biggest threat to the PlayStation 2 is that the Xbox changes the industry's life cycle," said Ando, who feels that it is unclear whether the current PS2 business model is sustainable and that its console life cycle could be reduced to three years as a result. Although sales of the PlayStation 2 console remain strong, Ando said that the company is still in the process of recuperating its high front-end chip manufacturing costs.
Given his comments, it is not surprising that Ando feels that Microsoft has replaced Nintendo as the biggest competitor for his company's games division. "Nintendo's GameCube has been a disappointment in Japan, they have sold only a third of what they had hoped," he said. "The PlayStation 2 is viewed by gamers as the games console to own." Ando further stated that although there was interest within Sony to enter the handheld business to compete directly with Nintendo's Game Boy Advance, Ken Kutaragi, president of Sony Computer Entertainment, requested that the company remain out of that market in order to focus its efforts exclusively on the PlayStation 2.

Despite Ando's comments, a majority of industry analysts feel that the PlayStation 2 has strong sustainable potential to become the market leader among the current generation of consoles. A recent report by the International Development Group forecasted that the PlayStation 2 installed base would grow to 34 million by 2004 in North America, from its current base of 7.2 million units. IDG further projected that the Microsoft Xbox would reach an installed base of about 20 million units in North America by 2004, while the Nintendo GameCube would reach a base of 18 million units in that same period.

Research for and development of the PlayStation 3 is already under way. Sony has partnered with Toshiba and IBM, as part of a combined $400 million, five-year investment, to develop the technology for the PS3. Production of the chip, at last report, was slated to begin in 2004. According to Sony, the new chip design will be fundamentally different from what the company has used in the past and will have a greater focus on delivering communication and broadband services.

Source : Gamespot
http://gamespot.com/gamespot/stories/news/0,10870,2824614,00.html
 

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it became harder to decide w/c console to buy :evil:
BTW great news!!!! i think sony will try plan B coz plan A fail!!! :D :D :D
 

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Too bad :( .Now I have to reply to queries about whether ps3 can be emulated and also about fake ps3 emulators available on the net. ;) j/k

Neway with the console war hotting up it will really become difficult to decide which one to buy.(Not for me coz I am not going to buy anything in near future).
 

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The only reason he's saying this is because Sony hates Microsoft. Xbox does NOT pose a serious threat to Sony. Do some research on various things Sony executives have said in the past, and you will see what I mean. What happens in America is irrelevant, only the Japanese market matters. A small price drop to better compete - especially in the United States - is much more likely to be the case.
 
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sony dropped the ps2 price in europe with 30%, and with a reason: xbox and gamecube wont be here till march next year. Sony has an ENORMOUS advantage in the european market.
 

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For now , but the release of the PS3 could take Microsoft and Nintendo out of buisnes for ever ! now i'm just happy that the PS2 price keeps on droping !
 

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Bull shit.....!......I am not buying a PS2..........!........no console........damit man......!

Ali
 

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Originally posted by Ali
Bull shit.....!......I am not buying a PS2..........!........no console........damit man......!

Ali
Even if the PS2 would cost 100 US Dolares ? I would reconsider if the price would really get low !
 
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I doubt that the price on the PS2 will drop to $100 US dollars. If it did, Sony would really be losing money. I think a more realistc drop would be from $399 (US) to $300 or $325. Remember, Sony is a "household" word and people are not going to abandon Sony just because of a new console. Also PS2 has lots of new titles coming and many established ones already out, to keep people haapy and satisfied w/their investment. People are wary of Microsoft's policys and practices, so I think that they will "sit tight" and wait and see what the X-Box really can do.
As for PS3, in Enigma's article it said that production of the PS3 chip was slated to begin in 2004. But it didn't say when in 2004. So what does that say about how soon we may expect to see the PS3?
sincerely,
sx/amiga
 

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actually, I think that it would be a mistake for sony to release another console in just 3 years, because they would be repeating N64's story again....

N64 is an excellent console, it can still last for another 3 years for being so capable of a lot of things...

but now, nintendo will release the gamecube, without getting the full capability of N64 in their games, without knowing that it still can kick the other system's ass with ease

* this is my personal opinion, if you don't agree, is up to you....
 

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Originally posted by takmadeus
actually, I think that it would be a mistake for sony to release another console in just 3 years, because they would be repeating N64's story again....

N64 is an excellent console, it can still last for another 3 years for being so capable of a lot of things...

but now, nintendo will release the gamecube, without getting the full capability of N64 in their games, without knowing that it still can kick the other system's ass with ease

* this is my personal opinion, if you don't agree, is up to you....
isn't this the story of sega all over again.

genisis, genisis cd, 32x, saturn, dreamcast

all of the systems came out too quickly. having the 32x and saturn at the same time was the begining of the end for sega. its too bad too because some of their best games including the virtua fighters series came out arround this time. saturn and dreamcast were getting all of the snk games too. too bad it floped.
 

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There is an interesting trend in the console market (well at least over here anyways). A newcomer always seems to win the next gen console market, eg Atari,then nintendo, followed by sega and sony. Whilst I'm not saying that that the next one will be microsoft but the trend is interesting though.
 

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Originally posted by Ryos
The only reason he's saying this is because Sony hates Microsoft. Xbox does NOT pose a serious threat to Sony. Do some research on various things Sony executives have said in the past, and you will see what I mean. What happens in America is irrelevant, only the Japanese market matters. A small price drop to better compete - especially in the United States - is much more likely to be the case.
Not true, the Sega Saturn was very successful in Japan but never really caught on in the US. Before the Sega Saturn died out in the US, the Saturn actually outsold the playstation in Japan. In order for a console to be successful it has to be successful in both North America and Japan.
 
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Originally posted by Betamax
There is an interesting trend in the console market (well at least over here anyways). A newcomer always seems to win the next gen console market, eg Atari,then nintendo, followed by sega and sony. Whilst I'm not saying that that the next one will be microsoft but the trend is interesting though.
NOOOOOOOOOOOOOO!!!!!!!
;)

Uh, that's correct, I dont like xbox...

there used to be a theory about black consoles not selling well too, btw, but the dreamcast kinds messed up that rule.

I think xbox could do well in the US, but I doubt it would in japan. As for europe, I wouldnt be surprised if the ps2 had won that battle already.
 

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Originally posted by Samor


NOOOOOOOOOOOOOO!!!!!!!
;)

Uh, that's correct, I dont like xbox...

there used to be a theory about black consoles not selling well too, btw, but the dreamcast kinds messed up that rule.

I think xbox could do well in the US, but I doubt it would in japan. As for europe, I wouldnt be surprised if the ps2 had won that battle already.
well if you saw what nintendo did to zelda then you might believe it. anyways its not always true. dreamcast and jaguar never made it. the nintendo sega 8 through 16 bit wars were pretty even.
 

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I'm afraid Sony will follow on Sega's footsteps. Marter System, MS2, MS3. Mega Drive, MD2, MD3. Sure it is incredible how Sony can improve the system, though. But it may top off some old consumers.

As for now, I believe PS2 is capable of giving a very good time to everyone, and I think it will last longer than what Sony thinks. Some people still enjoy themselves with Final Fantasy Tactics on the old PSX model. I mean, lots of people still do. Some of them don't even imagine about Xbox.

That will be a good but expensive fight.
 

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considering the lifespan of the psx, i have high hopes for the ps2. if they can churn out enough games (not necessarily great ones mind you), the ps2 can have a long future. the n64 has already stopped game production for a while and the dc will follow soon.

sx: the retail value of the psx in the US is already $299, you can always get it at this price direct from sony at playstation.com.

I believe that Sony will gain a stronger foothold in the market in the long run if it can drop the console price $50-$100. Although they lose a lot of money, as does everyone else, this will surely give it a competetive edge over the $399 gamecube pack or the $499 xbox pack. And, iirc, the ps2 is the only one that can play DVDs right out of the box, which is a plus for the average consumer.

I think one the hype over the recent releases dies down, whatever console that has the greatest number of quality games will come out on top. and by the looks of it so far, it looks to me to be the ps2, then gamecube, and lastly, xbox.
 
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