Analysts in Japan speculate that if Sony isn’t aggressive enough in the next generation console war with Microsoft, the company will struggle to reign as #1 console globally. Majority of analysts agree that due to high cost of machine, high cost of developing games, and late arrival of the PS3 will lead to potential loss in market share and loss of profit.

In a Reuters article, Hiroshi Kamide, analyst for KBC Securities said, “The risks are surprisingly higher than people think because unless they can replicate its 70 percent dominant market position, things are going to be very difficult for them going forward.”

Hirokazu Hamamura, president of Famitsu added, “PS3 will do very well, but it”s said that development costs will be high and it”ll take longer to make games, so it”s likely that it won”t have a full line-up of games until the end of 2006 or the beginning of 2007.”

Koichi Hariya, senior analyst at Mizuho Securities said, “Sony has to launch a new game machine every four, five or six years to maintain the game division”s strength” adding that PS3 will probably struggle to repeat the high profitability of PS1 and PS2.

A spokeswoman for Sony said the company is not concerned by its competitors. “We will launch according to our own agenda and strategy,” she said.

On the contrary to the beliefs of analysts and speculators, we, here at Ps3vault, strongly believed that Sony is being proactive in this ordeal rather than passive. Sony will take advantage of their position as #1 console in the world by heavily supporting PS2 market while highly anticipated and high tech PS3 console launch draws near.

First, Sony was able to convince some of the biggest players in media industry to support Blu-ray technology which will reign over stand alone player/recorder market. This technology will deliver next generation of High Definition content directly to consumer without any compromise.

Second, Sony will release Satin Silver PS2 slim on Novemeber 23, right after Microsoft Xbox 360 launches. This displays Sony”s commitment towards PS2 market at the same time the company”s optimism in console war despite Xbox 360 launch.

Third, Sony was able to secure exclusive deals with industry big hitters such as RockStar (GTA series) to bring grand slam title to PS3 first.

In conclusion, Sony’s proactive approaches display their aggressiveness and willingness to compete as a #1 console developer in the world. Their marketing manuvers entails many careful planning and research based on their competitions, market conditions, and new trends in this industry.

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