So the gaming public has talked a lot about the price of the PS3 at release, more than $500. Most of the buzz has been overtly negative or apprehensive at best. I can understand the concern of the public, that's not a small figure considering that Nintendo has just announced that the Wii will be $250 and you can buy a decent Xbox 360 for a hundred dollars less than the proposed PS3. Have no doubt, the console wars will be waged on a price-based battlefield, but I don't believe the PS3 is starting off gimpy.
The target markets for the different consoles are (based solely on my own analysis):
- Wii: Young and families
- Xbox360: Teens and college crowd
- PS3: Xbox targets and young professionals
I have no worries that the PS3 will do just fine (though not as well as they will want). You just won't see the success of the prior Playstation generations because I think the market has grown beyond the ability for a single console taking significant share. What you'll see is the three consoles catering to their respective audiences and fighting viciously where those audiences cross over.