PlayStation Vita will be irresistible to many customers, even at $249.99.
Of course, that’s the Wi-Fi only system. If players want 3G, they’ll need to shell out $299.99 for the handheld, plus a monthly subscription fee to AT&T. Factor in memory cards and the undisclosed cost of games, and we have to wonder if the 3G Vita will be worth the cash.
Let’s face it, you don’t have to look far to locate a Wi-Fi connection. What’s more, it remains to be seen whether Vita’s 3G features will be worthwhile long term.
“When it comes down to it, 3G promises access to GPS, the ability to use maps, the accessibility of Near and the persistence of the party system,” said Kyle Shubel, executive producer of international software development at Sony Computer Entertainment. “We can join a group together, send texts to schedule invites and it stays live even when I’m asleep. That happens wherever you are, along with notifications that friends have been knocked off a leaderboard in real time. Those things are game agnostic. That’s never been done in our industry before.”
That’s the pitch, admittedly a good one. Some Vita owners want connectivity 24/7, and we think Sony will sell out of 3G systems at launch after the cheaper Wi-Fi version disappears from shelves.
“I expect the 3G version to be more popular in Europe than North America,” said EEDAR analyst Jesse Divnich. “I don't believe the 3G Vita functionality is inferior by any means, but rather Americans haven't taken to 3G in independent technology devices as quickly as their European counterparts.”
To that end, Sony must find ways to make this 3G Vita appealing while at the same time convincing users to switch off their 3G connected iPhones, iPad 2s and even 4G powered Androids – no easy feat when these devices offer the same amount of content Vita can muster and more.
“I think 3G is one of those nice to have features,” said Wedbush Securities analyst Michael Pachter, “but not essential for most people. 3G is essential for a phone, obviously, so we aren't offered an alternative. I think that a lot of iPads are sold with 3G because they are bought by existing iPhone customers. However, unless the user is out and about with an iPad, they don't really need 3G. We have three Wi-Fi iPads in my house, and nobody complains.”
This ultimately makes 3G a luxury, one prospective buyers may decide to live without.
“Three hundred dollars for a handheld device that doesn't do everything an iPhone or Android can is just not competitive,” said Asif Khan, CEO of Panoptic Management Consultants. “The data plan will discourage consumers that already have data plans on phones, tablets and even their home Internet service. We saw this when the iPad 1 came out and the Wi-Fi model outsold the 3G handily.”
“I don't find the 3G feature interesting or attractive, so I wouldn't buy it,” said Pachter. “I think that Sony is doing the right thing in making 3G available, and essentially charging a small premium to cover their cost. If people want it, it will be available. If not, they can buy a less expensive Vita.”
RW Baird’s Colin Sebastian agrees.
“The Wi-Fi version will offer enough functionality for most users, despite the obvious convenience factor of having 3G. Keep in mind Sony's history with connected portable devices (PSP Go), and the fact that the dedicated handheld game market remains very challenging.”
Taking this a step further, there exists the possibility of seeing 3G Vitas collecting dust on shelves. Sony will gamble that $50 is cheap enough for Vita starved consumers to settle if Wi-Fi units are unavailable, but this may only work for a limited amount of time and with a select audience. ablet users, for example, will probably turn up their noses at a 3G Vita.
Not so, says Divnich.
“Despite the aggressive growth of tablets, some consumers have shied away, and maybe the Vita could potentially sway new consumers into the market, especially those who consider themselves hardcore gamers.”
Khan has a different view.
“While I applaud Sony for trying to bring added connectivity to its games, at the current price point, it [3G Vita] will not be a massive success. Sony has not shown it can make a compelling user interface. In a world where new tablets come out from Apple and Samsung each year, how is Sony supposed to keep up with the rapidly improving hardware and graphics of their competitors?”
“It will all come down to accessibility and functionality,” said Divnich. “Sony must demonstrate a reason for consumers to turn on their Vitas instead of their smartphones. I believe Sony is making a compelling case, and it has a line-up of strong, if not standard apps.”
At least on the positive side, early pre-orders look good for both models.
“It’s about 50/50,” said a GameStop employee. “Customers have pre-ordered both the Wi-Fi and 3G systems.”
As usual, it all comes down to software. Sony and third parties must convince Vita fans that the desire to connect to PlayStation Network, even outside the boundaries of a reliable Wi-Fi connection, justifies the added cost of 3G, and it’ll take a killer app, perhaps a Call of Duty game from Activision, to make it happen.
If Sony fails to do that, 3G Vita could be a colossal bust.
Source
Of course, that’s the Wi-Fi only system. If players want 3G, they’ll need to shell out $299.99 for the handheld, plus a monthly subscription fee to AT&T. Factor in memory cards and the undisclosed cost of games, and we have to wonder if the 3G Vita will be worth the cash.
Let’s face it, you don’t have to look far to locate a Wi-Fi connection. What’s more, it remains to be seen whether Vita’s 3G features will be worthwhile long term.
“When it comes down to it, 3G promises access to GPS, the ability to use maps, the accessibility of Near and the persistence of the party system,” said Kyle Shubel, executive producer of international software development at Sony Computer Entertainment. “We can join a group together, send texts to schedule invites and it stays live even when I’m asleep. That happens wherever you are, along with notifications that friends have been knocked off a leaderboard in real time. Those things are game agnostic. That’s never been done in our industry before.”
That’s the pitch, admittedly a good one. Some Vita owners want connectivity 24/7, and we think Sony will sell out of 3G systems at launch after the cheaper Wi-Fi version disappears from shelves.
“I expect the 3G version to be more popular in Europe than North America,” said EEDAR analyst Jesse Divnich. “I don't believe the 3G Vita functionality is inferior by any means, but rather Americans haven't taken to 3G in independent technology devices as quickly as their European counterparts.”
To that end, Sony must find ways to make this 3G Vita appealing while at the same time convincing users to switch off their 3G connected iPhones, iPad 2s and even 4G powered Androids – no easy feat when these devices offer the same amount of content Vita can muster and more.
“I think 3G is one of those nice to have features,” said Wedbush Securities analyst Michael Pachter, “but not essential for most people. 3G is essential for a phone, obviously, so we aren't offered an alternative. I think that a lot of iPads are sold with 3G because they are bought by existing iPhone customers. However, unless the user is out and about with an iPad, they don't really need 3G. We have three Wi-Fi iPads in my house, and nobody complains.”
This ultimately makes 3G a luxury, one prospective buyers may decide to live without.
“Three hundred dollars for a handheld device that doesn't do everything an iPhone or Android can is just not competitive,” said Asif Khan, CEO of Panoptic Management Consultants. “The data plan will discourage consumers that already have data plans on phones, tablets and even their home Internet service. We saw this when the iPad 1 came out and the Wi-Fi model outsold the 3G handily.”
“I don't find the 3G feature interesting or attractive, so I wouldn't buy it,” said Pachter. “I think that Sony is doing the right thing in making 3G available, and essentially charging a small premium to cover their cost. If people want it, it will be available. If not, they can buy a less expensive Vita.”
RW Baird’s Colin Sebastian agrees.
“The Wi-Fi version will offer enough functionality for most users, despite the obvious convenience factor of having 3G. Keep in mind Sony's history with connected portable devices (PSP Go), and the fact that the dedicated handheld game market remains very challenging.”
Taking this a step further, there exists the possibility of seeing 3G Vitas collecting dust on shelves. Sony will gamble that $50 is cheap enough for Vita starved consumers to settle if Wi-Fi units are unavailable, but this may only work for a limited amount of time and with a select audience. ablet users, for example, will probably turn up their noses at a 3G Vita.
Not so, says Divnich.
“Despite the aggressive growth of tablets, some consumers have shied away, and maybe the Vita could potentially sway new consumers into the market, especially those who consider themselves hardcore gamers.”
Khan has a different view.
“While I applaud Sony for trying to bring added connectivity to its games, at the current price point, it [3G Vita] will not be a massive success. Sony has not shown it can make a compelling user interface. In a world where new tablets come out from Apple and Samsung each year, how is Sony supposed to keep up with the rapidly improving hardware and graphics of their competitors?”
“It will all come down to accessibility and functionality,” said Divnich. “Sony must demonstrate a reason for consumers to turn on their Vitas instead of their smartphones. I believe Sony is making a compelling case, and it has a line-up of strong, if not standard apps.”
At least on the positive side, early pre-orders look good for both models.
“It’s about 50/50,” said a GameStop employee. “Customers have pre-ordered both the Wi-Fi and 3G systems.”
As usual, it all comes down to software. Sony and third parties must convince Vita fans that the desire to connect to PlayStation Network, even outside the boundaries of a reliable Wi-Fi connection, justifies the added cost of 3G, and it’ll take a killer app, perhaps a Call of Duty game from Activision, to make it happen.
If Sony fails to do that, 3G Vita could be a colossal bust.
Source
