Why The PlayStation 3 Reveal Ended Up Being A Big Flop

The PlayStation 3 was poised to be one of the greatest consoles ever released. Its predecessor, the PlayStation 2, was the best-selling console ever released onto the video game market. Sony had big shoes to fill for its next-generation console but was blessed with the success and reception of the PlayStation 2. The company had some massive traction going into the release of the PlayStation 3.

The PS3 was expected to hit the ground running. Sony had already amassed a number of exclusive titles that were expected propel the console to success. God of War, Kingdom Hearts, The Last of Us, and the Uncharted franchise had captured the minds and hearts of modern gamers. The PS3 was sure to be a massive hit, and Sony was sure that they would hit their intended sales target.

If Sony was coming in with so much previous success, then how is it that the PlayStation 3 flopped upon reveal?

There's no mistake about it: The PlayStation 3 revealed itself to be one of the most expensive consoles of all time. The $599 price tag was a huge turnoff for the average casual gamer. There was a cheaper version of the PS3, but nobody wanted the vanilla version console — they wanted all the highly desirable features. The price point was just a little too steep for most people — gamers didn't want to feel the pain of overpaying.

The PlayStation 3 indeed had some highly desirable new features and new hardware and even sported backward compatibility. Still, $599 was way too much, especially when compared to the PlayStation 2, which sold for a solid $299. Ironically, as reported in 2006 by Eurogamer, Sony Computer Entertainment president Ken Kutaragi actually felt the console was too cheap. "Is it not nonsense to compare the charge for dinner at the company cafeteria with dinner at a fine restaurant?" he mused. Kutaragi was a firm believer that the price was a reflection of the quality experience that would be delivered to the players. 

In the end, the PlayStation 3 was a victim of its outrageous price tag.