After reading Nguy's take on the PS3 amidst these hard economic times, I realize that there are indeed some good counter arguments to be made in Sony's favor.  So I'm taking a break from FatYoshi's Cove to offer up some insights for Sony's flagship platform.

2008 was supposed to be the year of the PS3.  Exclusives such as Metal Gear Solid 4, Little Big Planet, Haze, Resistance 2 and Valkyria Chronicles were highly anticipated.  Availability of multi-platform titles such as Devil May Cry 4, Grand Theft Auto 4, Rock Band 2 and Call of Duty: World at War ensured PS3 gamers wouldn't jump ship to Xbox 360 when they were done with the exclusives.  So how did Sony fare in 2008?  As well as one can expect of something that cost $400.  2008 NPD numbers tally PS3 with 3.7 million units sold.  In comparison, Microsoft and Nintendo moved 4.7 and 10.2 million units, respectively.  Are the numbers terrible?  Heck no.  While the PS3 may be trailing in North America, sales are ahead of the 360 in Asia and about par in Europe.  Not bad in a market where one console has universal appeal and the other with a year's head start.

There isn't any doubt that the PS3 offers incredible bang for the buck.  Blu-ray drive, hard drive and Wi-Fi are part of the standard feature set regardless of which SKU you purchase.  With that said, $400 isn't pocket change.  People don't like hobbies that have a high entry price.  For $200, consumers are able to get a Xbox 360 Arcade.  Yes, the model  is fairly barebones and it isn't even high-definition ready.  But for that mom who is shopping for her son's Christmas present, the decision is a no-brainer.  I believe Sony's goal at this point should be to cut production costs; I would be even argue that getting the machine down to $300 is necessary for survival.  In these harsh economic times, the value of the buck goes a long way.  $300 PS3 vs. a $300 360 Pro Bundle?  No contest.  Especially with the fact that Microsoft is still struggling with reliability issues whereas the Sony machines are virtually built like tanks.

If anything, it all comes to the games.  There will always be games that one cannot get on any other platform.  While Microsoft has managed to flex it's huge wallet and steal away exclusives from Sony, there are still many titles that one can't get on the green machine.  Sony first and second party titles for example.  Upcoming games in the next few years such as Gran Tourismo 5, Kill Zone 2, Uncharted 2 and God of War 3 will only be available for the PS3.  Also keep in mind that multi-platform titles like Final Fantasy XIII, Skate 2, Mirror's Edge were developed with the PS3 as lead platform.  Expect the trend to continue in 2009 and beyond as companies such as EA and Sega are expected to use the PS3 in the vast majority of game development.  Hopefully PS3 being lead platform will yield better looking games as developers learn to unlock the complicated system that is Cell.

Sony marketing for the PS3 simply sucks.  It's rare that I even see advertising and when I do, the commercial doesn't make any sense.   You need to spend money to make money and a new creative marketing team needs to show the world what the PS3 is all about.  Hype for games need to be generated half a year beforehand, not one month prior to launch.  Tout important features such as Blu-ray, PSP connectivity, PS Home and free online play.   The PS3 has plenty of value and it's up to Sony to make sure everyone knows about it.

At this point in the game, it seems Sony is more interesting in minimizing any losses by keeping the $400 price tag rather than take further losses by cutting the price on the console.  They are after all, a company that answers to its shareholders.  But if they want to revitalize their PlayStation brand, changes are going to be necessary and better happen quickly.  If they wait too long to generate new interest, Nintendo and Microsoft will overwhelm them and take away any real chances of success.