DFC Intelligence, which provides game industry research, has released a new article citing the possibility that Sony could go from first to last place in home console market share. The article claims that despite Sony's strong brand awareness and current market position, the launch purchase price of $500-$600 combined with a lack of "killer application" game titles could hurt the company's chances of continued success.
From the report: "It is our view that the PlayStation systems have been successful not because of hit software but mainly because of software diversity and third-party support... With the PlayStation 3 the company is going after the high-end power user. It is almost as if Coca-Cola not only decided to go with a new formula, but also decided to exit the low brow soft drink business to go into high-end wines."
The research group concludes that if Sony wishes to drive unit volume in 2007, it needs to not only cut the PS3's price, but cut it drastically before there could be a new market leader.