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From Times Online
May 24, 2007

Sony upgrades PS3 in battle with Wii

80GB hard disk puts more water between high-spec PS3 and Nintendo's cheap, cheerful and successful Wii

Rhys Blakely

Sony is to sell an upgraded version of the PlayStation 3 that sports an expanded 80-gigabyte hard disk drive, as it seeks to broaden the games console’s appeal to the download generation.

The machine, fitted with more data storage space and aimed at consumers who download games and video content over the internet, will go on sale in South Korea on June 16 for 518,000 won (£280). The country leads the world in terms of high-speed internet access and teenagers there are regarded as perhaps the most tech-savvy on the planet.

At present, Sony offers 20GB and 60GB versions of the PS3 in Japan. It sells only the 60GB model in Europe - for about £425 in the UK. It is set to stop shipping the 20GB version in the US, to focus on the 60GB model.

The shift in strategy comes as Sony finds itself locked in a fierce war in the £15 billion-a-year global games console market, against both Nintendo’s rival Wii machine and Microsoft’s Xbox. The Wii, aimed at casual gamers, is estimated to be selling at twice the rate of the PS3, which is aimed at “hard-core” games fans.

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Earlier this month, Sony's games division posted an operating loss of 232 billion yen (£962 million) for last year, after the PS3 was hit by lengthy delays and cost overruns. Ahead of the release of those earnings, Ken Kutaragi, "father of the PlayStation", was effectively retired from the company by Sir Howard Stringer, the chief executive, after the PS3’s fraught launch.

By contrast, Nintendo posted a 77 per cent surge in full-year profits, at Y174.29 billion. Revenues were up 90 per cent to Y966.53 billion, boosted by sales of nearly six million Wii units in the five months since its launch.

PS2 was success because it was released around the time when dvd uptake was taking off and tvs could handle the films and games and casual gamers thought it was a worthwhile investment.

PS3 on the other hand hasn't because casual gamers are happy with dvd quality movies and wont be forking out on hdtvs on top to watch blu-ray or HD-DVD as a must. Cost of PS3 is restrictive but cost of buying a tv on top to watch HD movies makes it a no-no for joe-public at large.

Saying that, conditions may change in couple of years as no. of hd sets increase.

Awais, London,

I am very happy with my PS3. It isn't cheap, but if you keep it for 5 years, it works out to not that much per year. I looked into buying a gaming computer instead, but it was more than twice the price.

Sony needs to bring some more games to market rather than just talk about them and it will do better in sales.

Masher, Valencia,

Sony has created a great product but at a price point that takes it out of reach for many of its loyal customers. cost, backward compatability and availability during release has caused many to migrate to other systems. More drive space is not the answer, go back to a simple gaming console and make it affordable and win back your customer base.

some people do not care about blu-ray or its added cost

DJW, Johnson CIty, TN

Was looking for a PS3 for a media streamer from my server, but finding out it doesnt do that im looking at the 360 with greater interest.

Beanie, Qwerty, UK

This war isn't over yet. 3rd place isn't decided yet either. Sony has hit some rough spots since the release of the PS3, but with 30+ new games coming, many PS3 exclusive, Sony may get just what they need. (Of course Halo 3 is coming to the 360 this fall!!!)

Travis, Brighton,

I don't think that the PS3 was ever trailed as aimed at the "hard-core gamer". Indeed, most early press releases for PS3 concentrated on it becoming a "media hub" for the home, not just a geeky oddity.

"Hard-core gamers" buy high end PCs to use in their gaming, and they don't buy them in their hundreds of thousands.

Sony relies on mass sales of the PlayStation consols to recoup their costs of development and to create the market for lucraive games sales. Sony needs to shift units and the way to do that is to make the product affordable and to support the PS2 titles already owned (as they originally promised to do).

If the consumer needs to purchase an entirely new collction of games, they might as well purchase them on a different, cheaper and proven platform such as Microsoft or Nintendo.

At the moment PS3 just isn't an attractive package. and an extra 20Gb of memory doesn't change that.

Bob, Reading,

I'm not buying something at that rpice when I can get 360 and Wii with great games cheaper. This console war isn't over but 3rd place is already decided.

Myahon, Sparta, USA

before they aim for the wii, they have to beat the Game Boy Advance for God's Sake! not to mention the 360 and PS2! Wii and DS are more than double their closest competitor

samuel, Brooklyn, NY

I will not buy a PS3 while we are being charged €200 more that the US.

Its criminal.

Andy C, Kildare,

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