You would think that the only action in town, as far as game consoles are concerned, center entirely upon the PS3, Wii, and Xbox 360. But looming in the shadows, quietly racking up impressive sales numbers is a game machine that–by industry standards–should have been retired by now. And to the surprise of many, the seven year old PS2 is still a hit, according to a story released by Reuters. American Technology Research noted, "Its continued success has not only been a surprise to Sony but to other hardware makers as well."
The PS2 was second in sales for the month of January, only trailing Nintendo’s Wii. The PS2 outsold the Xbox 360 and PS3 by margins of up to 40,000 more units. Not bad for an old timer in the game industry. The continued success of the PS2 is attributed to its relatively low cost at $130 and its extensive library of games.
But the incredible phenomenon that is the PS2’s success is also a double-edged sword. While the PS2 continues to sell well, it may be inadvertently taking sales away from Sony’s new offering. When the price differential of $130 for a PS2 is compared to the $500 or $600 price tag of the PS3 newcomers to the gaming world would certainly opt for the older (and less expensive) technology.
PJ McNealy of American Tech said as much when he stated, "Some[one] who spends $129 on the PS2 isn’t going to the store to drop $600 on the PS3," said McNealy of American Technology. "It’s a bit of a catch-22 for them right now. You want to give a reason for people to migrate to the PS3."
Sony has tried desperately to provide reasons for prospective buyers to choose the PS3, but the offer of a Blu-ray DVD player, the most powerful processor, online connectivity, a large onboard hard disk and HD graphics seems to have failed to strike a chord with the general public. This is simply because the perceived value of the PS3 has failed to connect with consumers. If Sony wants its PS3 to succeed, it will have to scrap its present ad campaign direction, in touting the PS3 as a game machine that is filled with value, and move onto a new strategy of marketing that will capture the imaginations of buyers.
