Why the Playstation 3 can't lose

THERE'S A point where a company becomes so big and successful that it starts to trip out on the power and do some really stupid things. There must be a chapter in the Company Success Manual entitled "Crapping on Your Customers" because they all seem to do it at one stage or another. Microsoft, over the years, has elevated the process to an art form but has shrugged off any permanent negative impact due solely to the fact that the world now relies on its software. Regardless of how offended customers get, they're screwed because they're too far in: reluctant junkies.

Apple, which has gone from being the cherished industry underdog to digital music Godfather, has snorted once too often from the carefully cut lines of power. The MiniStore data collection scandal, anyone? Now, the French government now has Monsieur Jobs spluttering latte over his carefully crafted ‘blue collar' image after voting that Apple should open up its DRM technology to rivals. Sacre Bleu! Apple's response? We'll pull iTunes from France - maybe.

And now we come to Sony. Sony is no stranger to the arrogance that comes with lots of power. Remember last's year's spyware DRM rootkit that installed itself secretly on PCs to protect the precious copyright of newer Sony music CDs? Fortunately, consumer pressure and outrage prevailed. And now we have the PS3, which has had more false starts, delays and changes to bury a lesser offering but, which will still win out in the end. In all cases of corporate arrogance, there is no excuse for trying to con or bully customers. A company can raise its metaphorical hands, shrug and meekly apologise but it does not exonerate the behaviour.

I mean, can we truly be expected to believe that an attempt to install a covert piece of spyware on our PCs was an oversight or poor judgement? It was arrogance, plain and simple. The more successful the product, the more arrogant the company can become and get away with it.

This is why the PS3 can't lose, despite how much crap Sony shovels on its devoted customers. It knows that there is a huge installed base waiting for the PS3. Some may dabble with the Xbox 360 but there are millions of PS devotees just weathering the PR storm and prepping their sleeping bags. Sony knows this. Despite the threat of the Xbox 360 or the lesser one from the Nintendo Revolution, Sony has ignored it all, steadfastly screwing with product details, games developers, launch schedules and potential pricing.

There was the Blu-ray or No-Ray drive problem, opening and closing launch windows before Sony finally settled (for the moment) on a November launch date, scary pricing rumours and now, the inclusion of a HDD. That's right, your PS3 which exists somewhere in time, will come with a 60GB HDD as standard. All of this is good, but surely it can't be the end of the surprises. General estimates hold that Sony ,before including a HDD, was going to take a major hit for the first few years on the price of the PS3.

One thing was certain: Because of the inclusion of an expensive Blu-Ray drive and chips, it was going to cost a lot more than the Xbox 360. At the top end, the Xbox 360 premium package ran at $400. Some estimates put the retail cost of the PS3 at an optimistic minimum of $500 and most likely $600-$700. Some analysts have pushed that to $900 - based on reported component costs - which I think is a mite suicidal, even for a company as egotistical as Sony. Those prices held as true as speculative prices could until yesterday's confirmation of a 60GB HDD as standard, with bigger drives being offered as options. Now, the ballpark figures are set to be re-jigged and re-guessed once again. Sony is no rush to reveal pricing because, and this is key, it knows people will pay whatever it asks.

Within reason of course, but Sony is damn sure that it can squeeze a few hundred dollars more per console from users than the Xbox 360 and still dominate the market. And what's more, the analysts tend to agree.

The bottom line is that Sony is no longer really selling a console, is it? Blu-Ray drives and HDDs? C'mon, Sony is positioning this baby as the heart of your gaming, Internet gaming and high-def movie watching future. After all, even if it loses a few extra percentage points to the Xbox 360 and Revolution, it doesn't matter in the big scheme which involves making Blu-Ray drives and HD movies the dominant format.

The fastest way to do it is via the PS3. The knock on effects of that to its other divisions - PC drives, standalone burners, consumer recorders, HD movies etc. will more than make up for it. There are new stats out there this week from In-Stat that predict Sony will hold 50 per cent of the console market through to 2010.

However, you don't need stats to see why that will be. The PlayStation fan base has taken a lot of crap in the past couple of years. As gamers go, those waiting for the PS3 are strung out but they didn't desert the fold. Just look at those Xbox 360 sales figures which are good but do not reflect any mass desertion. With the guarantee of a 60GB HDD thrown in now, those users have one more reason to suck it up and wait it out. After all, most will need all the time they can get to save up enough cash to afford the damn thing. µ

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