The marketplace is currently being drenched with new technology. This last month, Sony released the PS4 Slim, and earlier this month, they also debuted PSVR. Next month will be when Sony’s mid-generation console upgrade PS4 Pro will release.
Three new products in a matter of three months is a serious amount of new hardware. This is particularly true when you think about how the console market isn’t quite used to this quantity of new tech. By the middle part of next month three new pieces of hardware will be available. It all makes you wonder just how much those products are actually helping Sony.
It isn’t like each of these items cater to a massively different audience from one another. These systems are all part of the same ecosystem and the potential customers aren’t really changing. In an exclusive interview with We Write Things, Michael Goodman, who is the director of digital media strategies at Strategy Analytics, spoke about how the release of these three products in consecutive months may be hurting Sony.
“It is a little bit surprising but Sony has a lot of stuff going on at the moment. They have a lot of irons in the fire right now. They have the [PS4 Slim], PS4 Pro and PSVR that are all vying in the marketplace at the same time. I would argue that having so many products in the marketplace at the same time is actually not helping Sony because they are splitting the consumer dollar.
“If you are a non-PS4 household, I highly doubt you are going to go full boat and buy a PS4, regardless of which one, and a PSVR. There will be a couple of people who do that, but 99 percent of the marketplace is not doing that. So if you are a non-PS4 household, you are either going to go PS4 or PS4 Pro. VR is probably not on the table for you. If you are an existing PS4 household, now you have an interesting question. Are you going to go PS4 Pro or PSVR? Again, I don’t believe they are going to spend $700 plus to buy both,” Goodman said.
It is a true dilemma for gamers who are in the market for a new PlayStation product. All of this and we’re forgetting the fact that there’s the Xbox One S available now, and Project Scorpio will launch next holiday. Oh and Nintendo will be launching the Switch this coming March. Options are a wonderful thing for consumers, but Sony could be over saturating the market with these three.
Let’s say you are someone who chooses to pick up the PS4 Pro. In order to be able to truly enjoy its capabilities, you will need to have a 4KTV capable of HDR. If you don’t have a TV like that, you’re looking at a potential $900 or $1000 purchase just to be able to use the system properly. That’s quite a lot for a majority of people to invest in at once, right?
“Exactly. We see a large chunk of the PS4 marketplace, that’s where you’re going to get your PS4, PSVR upgrades. And hanging out in the background is Scorpio. Do I go PSVR now and then buy Scorpio next year? Do I upgrade to a PS4 Pro now and wait on VR? Basically, what Sony is doing is they are splitting the marketplace. It is difficult for any one of these products to scale because of the way they are splitting the marketplace.
“In the end, it may not matter to Sony. All of the dollars from these products funnel down to the same bottom line. At the end of the day, it’s good for Sony. But in terms of building scale with these products, having so many different products in the marketplace at the same time doesn’t help them,” Goodman said.
Gamers can now pick up PSVR as well as PS4 Slim. PS4 Pro is the last beast that will launch on Nov. 10. We’ll see how it all plays out in the months ahead. Stick around here at We Write Things for more on PlayStation.
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