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Phil Larsen
24 Mar, 2007

Apathy dominates Australian PS3 launch

PS3 Feature | A surprisingly subdued reaction to the PS3's Aussie debut.
The festivities for the Australian launch of Sony's PlayStation 3 began late on Thursday 22nd March. Since the pre-orders started coming in, retailers all over have started setting themselves up for a midnight launch. These midnight festivities have started becoming big trends for all major console and game launches. It's the symbolism of obtaining that new piece of gaming goodness as soon as physically possible that is appealing - rather than people being physically unable to wait an extra eight or nine hours.

So, as expected, Sony threw a massive launch party to celebrate the PS3 going on sale. However, the situation wasn't nearly as glorious as was anticipated - a comparatively miniscule number of customers actually went to the effort of showing up.

The biggest event went down at the Myer's Pitt Street store in Sydney. Barricades were set up, security were on hand and the effervescent radio personality Lizzy Lovett was on stage ready to rev the crowd. At 9:30pm, only a showing of Casino Royale away from sales, noone had shown up to wait in the barricaded line. Still, the night progressed relatively steadily, and eventually the crowd rose to around 70 customers - with several hundred cash-strapped onlookers.

The first happy customer.

The first happy customer.
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The bigwigs of the night included Michael Ephraim, Sony Australia Managing Director, and Bernie Brooks, CEO of Myer. Their enthusiasm masked an obvious disappointment, and a few direct questions were skirted over. GameSpot AU grabbed an interview with Bernie, and asked a rather simple question concerning how the midnight launch compared to those for the Wii and 360. Bernie began with the classic diversion, "It's a fascinating question...."

It isn't really.

The PALGN staff were on hand around the country to check out various launches from assorted retailers - JB Hifi and EB Games to name just a few. The problem was, despite claiming most stores would be open at the stroke of midnight to dish out the technology, numerous locations were locked and deserted. The Brisbane CBD Harvey Norman was completely inaccessible, various Electronics Boutique stores were locked tight and - given the small number of customers who attended the biggest launch in the country - we couldn't have expected more at other locations.

Yours truly also checked in at one of the most successful EB stores in the country at midday today, and there was still a pile of unsold consoles ready to go out the back. They were selling steadily throughout the day, but the snap-it-up attitude of Aussie consumers just wasn't out in force over the last 24 hours.

Slinking in the shadows for now.

Slinking in the shadows for now.
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Plenty of sources have revealed their reactions to the launch, and it's a mixed bag. Danny Zarka, the first person to pick up the new console from Myer, said, "I'm surprised there aren't more people here, I thought the place would be packed." Meanwhile, The Age newspaper promptly published an article entitled, "Crowds go mild at PlayStation launch".

The reactions of retailers are seemingly bright. Brooks cited a figure of $2 million worth of pre-orders for the console for Myer alone. Harvey Norman is also expecting over $10 million worth of PS3 sales by Monday.

And from the Kotaku gaming forums, Digital_Sky's reaction was impressed. "Um, 80 people seems like a *lot* to me. Maybe not as much as hype-mongers might want you to think would come, but an 80-person turnout on launch night in one location doesn't exactly sound like total abject plummeting failure. 20 people, maybe, would."

Though many people are already condemning Sony to failure, a few are on the straight and narrow, taking it with politically correct optimism. From our very own forums, Andronicus simply noted, "When the price point has come down to a level that the average consumer thinks they can justify paying, then I'm sure things will pick up. And anyway, it's only been on sale for less than a day."

Apparently nothing can dampen their spirits!

Apparently nothing can dampen their spirits!
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The reaction to the PS3 launch hasn't exactly been positive, to say the least. So what does this mean for Sony? It demonstrates a lack of Australian eagerness to put down the cash for the unit, but perhaps this is not quite unexpected. The $6 million marketing campaign is now in full swing (having launched today), and the aim is to educate consumers about what the PS3 can offer beyond just gaming. The PS3 is indeed an impressive piece of technology, even touted as an investment by the Sony team, so it will take some time for Sony to pick up the consumer slack and move those units.

A Sony spokeswoman in the Sydney Morning Herald said, "The marketing tag line for PlayStation 3 is 'This is Living' and you'll see this develop with time to include broader messaging beyond gaming enthusiasts; after launch we will begin our approach to communicate with entertainment enthusiasts and beyond."

Compared to Microsoft's $1 million marketing campaign for the 360, Sony are really looking to spend money in order to make money. They have some catching up to do, and the poor reaction to the launch did little to hit the accelerator. Still, the black box is out right now, so check out our official PS3 Launch Hub for all the details on the when, where, why and how of Sony's console for 2007.

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PS3 Launch Hub

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57 Comments
5 years ago
Eyce wrote
Who would surf the net on a PS3?
Uh.. me? Right now, as a matter of fact.. *L*

Is it as good as using a computer? Heck no. But it's the best web-surfing experience I've had on anything other than a computer. Probably because it's fast, has great features, and because you can use a USB and/or Bluetooth mouse and keyboard.

I'm using a USB keyboard at the moment. Wouldn't even consider it without one. The biggest drawback is that there's a limit on how many characters you can type in a single post, which is a bit of a bu-


:laugh:
5 years ago
I have to say the Ps3 network service is pretty awesome for free. Yea it doesn't compare to the speeds on the 360 when it comes to downloading (may be the initial rush from customers to download stuff), but I found online on Motorstorm and Resistance to be PERFECT!! Absolutely perfect! And I don't think I can't say that about any 360 game i've played so far (some have come very close like Gears of War and Lost Planet...but have notcied a couple of little hiccups). It may have to do with the coding of the games or the initial number of players on each particular network but I didn't notice any lag at all. I have to admit I only tried Resistance a couple of times online and Motorstorm only once but they were both flawless (albeit i've only played 360 games online once or twice aswell). I also like how you're restricted to Aus/Nz servers at the moment because playing against other countries never runs very well anyways.

Also you can use a usb/bluetooth mouse and keyboard as well as having multiple tabs open. Way better than what the 360 or Wii can do!

Personally I think Ps3 doesn't really deserve to do well in the Pal regions. We're paying more for delayed and less powerful (see backwards compatiability) hardware....so the news that it hasn't been selling well or the initial response has been lacklustre is helping us Pal gamers imo. Sony will think twice about screwing us over next time hopefully.

And yea I caved and bought one yesterday. icon_razz.gif
5 years ago
Maikii wrote
^^^ Agree, I think despite initial sales - the PS3 is a product that is desirable - but probably a couple hundred bucks cheaper... And when Blu-Ray and HDTV becomes more mainstream. I think the biggest drawback for the PS3 is that it's a couple years ahead of it's time...
^^^
Its too ambitious I see HDTV and Blu Ray becoming nothing more than a luxury, like Foxtel, like beefy graphics cards and owning a HSV. Nice to have, but not you will lose sleep over.
5 years ago
Maikii wrote
^^^
Yep, points taken. the PS3 official launch was a dudd ...
BUt what was the expectation? It's been surrounded by negativity (rightly or wrongly) for months and it has a big price tag.

I guess will have to wait a few days before the sales figures come in, we atleast know that 70 were sold ...

I guess I'm just trying to get the whole picture, I mean 360 had a good launch but what has happened since then - did it mean anything?
This is a good subject, but it's more of a conversation around the commercial viability or percieved business value of PS3 and less about the "playability" of the product. PS3 may be very playable but if retailers do not support the product it will struggle to get to market.

Product launches are used to build confidence throughout the retail distribution network. A good launch attracts the attention of retailing management & proprietors who in turn provide valuable floorspace and resources to aid in capturing a greater share of available sales as well as investing considerable sums of money in financing inventory levels for Sony.

The Myer launch is the best example to focus on as it was Sony's official stage for the launch, it consumed a vast amount of Sony Market Development Funds, Myer store resources and media attention yet did not provide a return on this investment. The story has been echoed in various forms in other PAL territories (Virgin Megastores in London).

As the launch proved a terrible investment, participants in the distribution network (including publishers, importers, wholesalers, retailers & service providers) would be having second thoughts about how much they want to invest of their own money behind PS3.

A result of this; big retailers will now be renegotiating with Sony to remove any unnecessary risks. They have a case: as PS3 is no longer a sure bet for sales success. This means that more of the costs and risks will need to be handled by Sony - this is not good. For those who are unable to get Sony to bare a greater share of the risk - they may elect to invest funds & attention in other consumer goods currently offering a better return.

Large retailers are geared towards "pull" marketing where the vendor generates demand and pulls sales through the retailers. As such the retailers tend to get a smaller cut of the ticket price. The retailer in turn tries to leverage their own marketing mediums (EG: In-house Catalogs & mailing lists) to earn more $ as well as leveraging backend rebates.

For items that do not have any pull in the market, smaller more focused retailers train their staff to sell these items to customers on a one-on-one basis. In such situations, the vendor must offer the retailer a larger cut of the sale price in return for "pushing" their wares. Sony relies on marketing pull in order to keep as much of the retail price for themselves as possible - so the idea of them now fighting in the trenches with a push approach or compensating larger retailers - neither will be very healthy for Sony's business.

The main thing that will effect PS3 users moving forward (unless something dramatically changes) is a lack of peripheral options & niche titles. The other is price - less volume & higher cost channels always means higher costs to the consumer.

As for small publishers & importers - some may now not want to handle niche PAL titles or third party peripherals for PS3 and instead focus on Xbox 360 or Wii or something else.
5 years ago
Damn Cookie that was an informative post, never realised that about retail distribution.

Back to the launch I think something else that may be a factor, is not just the public waiting to see who will win out of Blu Ray and HD DVD (and we all know PS3 is built around the Blu Ray) but that Holographic media is just on the horizon as well making both HD DVD formats already obsolete. Forget 40g or 50g capacity, HVD has a capacity of 3.1 Terabytes, of course do we actually need that for a game, not really but we didn't need 50GB either.

http://en.wikipedia.org/wiki/Holographic_Versatile_Disc
5 years ago
Rob, I don't think the format war would've had anything to do with the launch - whether Blu-Ray wins or not, it is still the official format of the PS3 and that's that.

If BD (should be BR) loses, it will just be used as the format for PS3 games. What's the difference? They're not going to change the format.
5 years ago
Jim Dash wrote
If BD (should be BR) loses, it will just be used as the format for PS3 games. What's the difference? They're not going to change the format.
Quite true. However, it will be a huge boon for Sony (and possibly PS3 owners as well) if BD wins, manufacturing costs will go down over time, which means that the games may get cheaper as well as PS3s getting cheaper because of easier/more const effective production of blue laser diodes and parts. If BD doesn't win, it will be solely for the PS3, and there will be a lot of people in the world who don't have a PS3 as compared to those who would be buying HD-DVD movies, so manufacturing costs would stay fairly high since they are only being manufactured by Sony, and there would be a relatively low demand (as compared to HD-DVD).
5 years ago
Don't hold your breath Adam, if BD wins the prices will take a long, long time to go down. Currently having both formats alive is a win for consumers as HD-DVD will undercut BD's prices where-ever possible, then if either one loses they can't suddenly jack up their prices due to public outcry.
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