I hear rumors that in far of lands wild PS3′s roam free, bringing joy and happiness to children and adults alike.

In this world, Sony had not managed to make every possible business error imaginable and had actually built a product that was both affordable and entertaining enough to achieve mass appeal. Unfortunately for everyone’s favorite consumer electronics company, this world is merely a figment of one bloggers overactive imagination.

Wii Will Not Be Moved

That being said, it looks like the winds of change are on the horizon. Chief Executive of Sony, Howard Stringer has recently spoken out about his product. Stating that the Wii is outpacing PS3 sales as a result of a, “very good business model”.

The PS3 has fallen 500,000 units short of its shipment target and is going to cost Sony’s game division about 500 Million dollars. Most of the problem is associated with a very limited game selection and a $600 price tag.

Bring On The Price Cut

It looks like production costs are starting to go down which has led to the rumor of the moment, a $100 price cut in time for Christmas. Stringer won’t go into details, but in an interview with the Financial Times he says, “That [price cuts] is what we are studying at the moment. That’s what we are trying to refine.”

Web 2.0 Roundup

Great, they are cutting the price. Will that be sufficient to increase the installed base enough to compete with the Wii? I doubt it. If I were to advise Stringer in how to fix this little blunder, it would go something like this.

Divorce Blu-Ray from the PS3. The reason that they are selling every PS3 at a loss is because they have been completely obsessed with making the console Blu-Ray ready. Lets face it, even now Blu-Ray is little more than vaporware and when PS3 came out, Blu-Ray was an afterthought. Offer a cut-rate unit without the Blu-Ray crutch, and what your sales sky-rocket.

Support Your Developers. Playstation consoles have been traditionally difficult to program for. What Sony must realize is that one of the major appeals of the PS2 was that it had a huge library of content. Sony needs to put resources into their software developers to increase the amount of original content being generated for their system.

Re-Brand. A lot of damage has already been done, and the PS3 is seen by many as a joke. It’s time to sink some money into the Sony advertising machine and come up with a campaign to reinvent the system. If you ever want to regain traction in the market, people will want to see a new, vibrant, more interesting PS3 instead of the tired, waste of half a grand it currently is.

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