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Japan Analysts Offer PS3 Warning

PlayStation 3Some Japanese analysts think that Sony needs to keep its current 70% market share or they’re in trouble:

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.”

That’s not all.

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.”

Although those same considerations apply to the Xbox 360, and they seem to be doing well with launching games.

And lastly:

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.


Next Generation – Japan Analysts Offer PS3 Warning