Why the Playstation 3 is Struggling in 2009

The Playstation and Playstation 2 are two of the most popular video game systems ever. The PSP is also well on its way to join the first two Sony video game systems. However, the Playstation 3 most likely won't end up doing the same. Launching in late 2006, the system has been a massive disappointment in terms of hardware sales. 2008 was a big improvement for Sony, however, as their high-tech video game system saw a big jump. Unfortunately, the surplus didn't last long as the Playstation 3 began to decline in hardware sales starting from the end of 2008. So what has led to the decreasing hardware sales of the Playstation 3? Let's examine several determining factors.

Lack of Focus
In the pasts, Sony was able to put all their efforts on one system at a time. All the game development, advertisements and game-related business decisions were centered on one system at a time. As a result, the Playstation and Playstation 2 managed to strive in their eras.

Recently, however, Sony had to multitask. The PSP first launched in late 2004. Sony followed their first handheld video game system with their third video game system, the Playstation 3. At the same time, the Playstation 2 is still selling briskly. Therefore, Sony wasn't able to put all their eggs onto one basket. Their main platform, the Playstation 3, end up suffering the most in hardware sales.

New Intellectual Properties
Aside from Gran Turismo and Hot Shots Golf, no other first-party Playstation franchise has appeared on all four Sony's video game systems: the Playstation, Playstation 2, PSP and Playstation 3. Instead, Sony chose to developed new franchise with each new system iterations. While this may result in fresher titles, the sales wouldn't be as strong for a brand new franchise when compared to well-established ones.

Sony's two biggest franchises, God of War and Gran Turismo, still haven't been released on the Playstation 3 yet. For that reason, hardware sales on the Playstation 3 have been declining.

No Price Drop
Finally, the price tag is still proving to be a great hurdle for the Playstation 3 hardware. Launching at $599.99 basically killed all the hype for the video game system. Things pretty much snowballed from there for Sony and the Playstation 3. Even at its current price point of $399.99, the Playstation 3 is still deemed as an expensive purchase for many prospective buyers.

So unless Sony wants the Playstation 3 to continue to declining in hardware sales, they need to drop the price for it for as much and as soon as possible.