It's not Armageddon.
19 Aug 05

Now that I've told Microsoft what I think they should do, I'd like to the look at the broader market implications before dropping this topic in the abyss. Some have suggested that this move opens the door for Sony to follow suit. I disagree. I think it opens the door for Sony to explore a broader launch price range, but I don't think Sony is going to launch multiple units.

Sony has been consistent in their console strategy from the beginning. They launch a base model with some available upgrades. They add a few more upgrades down the line. Then they launch a smaller, streamlined version. It's been a winning formula for them.

I also think Sony definitely doesn't want to confuse consumers. They're going to claim their console is the best. There's no confusion, just buy the best. I've mentioned before that Sony has too many eggs riding in the PS3 basket to risk dropping it. That's why I think they'll stick with the $299 price. It's safe and what people expect. I doubt you'll see a component cable pack in. I'm sure we'll see some new accessories. Otherwise, I just see Sony playing it safe.

In the opposite camp, Nintendo is doing nothing similar to playing it safe. They've told us nothing substantial about their next console. They have a super secret controller that's not done, but is the key to the Revolution. They are going wireless and releasing the back library of Nintendo games for sale. They're not supporting HDTV's. Yet, they'll give us a couple of must have masterpieces, and we'll forgive them. I'll guess they'll stand pat with their $199 launch price from the Gamecube. Oh, and they'll probably release more colors later.

That's just a long winded way of saying I don't think Microsoft's move will impact the rest of the market. There is time if this idea suddenly becomes wildly popular, but I don't expect it.

Jason