Sony faces Wii backsplash

Cole, who runs DFC Intelligence President David Cole, thinks that the PS3 is going to be wasted by Nintendo and will even lag behind Microsoft's Xbox 360.

In a 600 page report, Cole says that Sony is handing Wii a golden opportunity by being too expensive and only geared for an elite market of gamers.

He said that Sony has gotten itself into a business model that is not conducive to the mass market video game audience. Cole thinks that the PS3 is trying too hard to be a PC and the problem with that is its prices do not come down and hardware stays the same too long.

Microsoft and Nintendo can build a solid base of video game players. DFC is predicting that the Xbox 360 and the Wii will have a larger installed base than any of their previous efforts.

Cole thinks that the company with the biggest opportunity is Nintendo which will have a lower price and better marketing.

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