All eyes are on the high-profile console launches as the holidays draw near, and Sony's (NYSE:SNE) PlayStation 3 confirmed one snag (PS3's inability to play games for older versions of the PlayStation) as the console launched in Japan.
Now, it's not quite as dire as it sounds. Reportedly, only about 200 of the 8,000 titles available for PS and PS2 are having compatibility problems with the new system. Today a Sony spokesperson said online software upgrades will fix the glitches, which the company is trying to address as soon as possible.
However, dire or not, given Sony's many quality issues this year (and those were a big reason that I called Sony out as my Halloween Trick last month), the last thing Sony needs is negative press coverage right now. Casual gamers considering the PS3 might let such negative news sway them toward the video game console options, such as Microsoft's (NASDAQ:MSFT) Xbox and Nintendo's Wii.
This may not be that big of a deal, but there are still some points to be made. Compatibility with the older games was one of the elements touted as a differentiator for PS3, so it seems ironic that it would be one of the glitches right out of the gate. Meanwhile, Gamestop's (NYSE:GME) shares got hit not too long ago, when an analyst mentioned that PS3's backwards compatibility could be a potential threat to the retailer's sales, which seems a little silly on many levels (and even more so now).
Meanwhile, who can forget all the instances when Sony has communicated one thing and then had to retract later, such as repeated product launch delays (including PS3)? This just feels like more of the same. A Foolish reader who also happens to work for a video game developer recently pointed out that the PS3 can be more difficult to develop for than the Xbox 360 (and he's heard rumors that the PS3 software development kits, or devkits, are more expensive too). That's certainly interesting food for thought.
I have no doubt that there is a PS3 craze brewing for the holidays -- despite the console's already-high price, bidding for the consoles, which will be incredibly scarce at first, has already gone so crazy on eBay (NASDAQ:EBAY) that the company has restricted who can sell them. However, I still have a question that many people have -- whether the pricy console will make it with anybody other than the true, hardcore-gamer PlayStation loyalists. And that's why a dose of negativity about the PS3 at this crucial time isn't exactly a heartening sign for Sony.
- Rick Munarriz asks: Coffee, Wii, or PS3?
- A Foolish Trick: Sony
- Revisit Sony's most recent quarterly results.
Gamestop and eBay are Stock Advisor selections. Microsoft is a Inside Value recommendation.
Alyce Lomax does not own shares of any of the companies mentioned.
