Sony’s PlayStation Vita: Falling Behind in the Handheld Gaming Race

Summary

In this article, we discuss Sony’s struggles with its next generation gaming handheld, PlayStation Vita. Despite launching last December, Sony has only sold a little over 2 million units, causing the company to drastically cut its forecasts for handheld gaming sales. Meanwhile, Nintendo’s 3DS has sold about 17 million units, and smartphones and tablets are also competing for portable gaming time. Sony’s response to this struggle is that the Vita business is a marathon, not a sprint. However, falling behind in the gaming hardware business can be deadly. Sony needs to act fast before game developers start looking for other platforms.

The Importance of a Strong Start
Nintendo’s Strategy with the 3DS
Sony’s Response
Concerns from Game Developers
Conclusion

The Importance of a Strong Start

Sony’s PlayStation Vita has struggled to gain traction in the handheld gaming market. One of the reasons for this is the lack of a strong start. Historically, successful video game consoles have exploded out of the gate. Atari’s 2600 and Nintendo’s NES were huge hits in their first Christmas season. Customers immediately understood the value proposition and loved the gameplay. Sony’s first PlayStation never had to come from behind. Even as a brand new entrant into the market, PlayStation got out ahead of Sega’s Saturn.

Nintendo’s Strategy with the 3DS

Nintendo faced a similar situation with the 3DS. It launched at a price point of $250, the same as the Vita, and just like the Vita, people weren’t buying it. Nintendo responded by drastically cutting the price of the 3DS and putting all its resources into finishing major 3DS franchises. It managed to turn things around, but at a cost. Nintendo had its first money-losing year ever because of the 3DS price drop, but it knew that in the long run, it was worth it.

Sony’s Response

Sony’s response to the Vita’s struggles is that the Vita business is a marathon, not a sprint. It has said that it will not cut the price of the Vita this holiday season. However, people are not willing to buy the Vita at its current price point. Sony needs to act fast before it falls too far behind in the handheld gaming race.

Concerns from Game Developers

Game developers are also concerned about the Vita’s future. One Vita game developer said that given how much time and money they have invested in Vita development, they are extremely concerned about their future as a studio. Game developers don’t have time to run a marathon. They need to be off to the races now. If the Vita doesn’t start out strong, they will start looking for other platforms that are sprinting to the finish line.

Conclusion

In conclusion, Sony’s PlayStation Vita is falling behind in the handheld gaming race. Sony needs to act fast before it falls too far behind and game developers start looking for other platforms. The importance of a strong start cannot be overstated in the gaming hardware business. Sony should take a page out of Nintendo’s book and consider cutting the price of the Vita and putting all its resources into finishing major Vita franchises. The Vita business may be a marathon, but it needs to start out strong to have a chance at finishing the race.