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Covers of gaming magazines are riddled with stories proclaiming the supposed demise of the PlayStation 3. This past year, nearly every major publication (EGM, GamePro) and even the niche ones (Hardcore Gamer, Play) are surmising over the potentially self-destructive road Sony has taken with its newest console iteration. Whether the topic relates to the forced implementation of the Blu-ray format or the lack of new software, there certainly appears to be no end to the death knell conversation surrounding the PS3. To be fair, a due amount of the criticism is justified; Sony has — for better or worse — made this generation’s console more about its bid to win a format war than about producing new games. And, as is common with market leaders in this industry, it has turned an almost Nintendo-like stance on its third party developers — preferring to have its brand demand respect rather than reaching out and assisting in deciphering what some publishers are declaring the most complex programming system since the Sega Saturn.

But these types of follies are by no means anything new, and although the Nintendo Wii has trounced the PS3 in the first round of competition, it’s hard to say whether this trend will continue — in fact, I think more signs are beginning to point towards Sony retaking a substantial piece of the pie in the next twelve to eighteen months. What are some of these key signs? Read on, gamers:

Post-Halo Syndrome: No one doubts that Halo 3 will sell systems but whether the third outing by Master Chief will bring in hordes of new 360 players remains a BIG question mark. As sequels go, there are probably no safer bets than Halo 3 but with the sheer flood of FPS games and look-alikes on the market, sales for Bungie’s core title might not meet the bombshell expectations some analysts are projecting. Most consumers do equate XBOX with Halo, but will new consumers be willing to pay over $300 just to play it? Microsoft certainly needs them to. The 360, despite a steady stream of purchasers, is not particularly “hot” amongst gamers — and the release periods both before and after Halo look like a casual/moderate gamer’s nightmare: that is, a desert of nothing. While we’ll see what Microsoft has up its sleeve at mini-E3, thus far 360 fanboys have to be disappointed by the lack of capitalization by Microsoft on Sony’s missteps. And sadly, there isn’t much to get excited about, either. While a few third party games have defected to 360, games like ‘Beautiful Katamari’ probably isn’t going to save the console from the reaper in countries such as Japan.

Third Party Loyalty: Yes, Kutaragi is out, but that doesn’t mean Sony’s lost its allegiance with core Japanese developers. While I do think MGS4 will eventually hit the 360, I think we’ll see something similar to the delayed release of MGS2 Substance. There is no way Final Fantasy XIII will show up on the 360 — though if the franchise does defect, expect to see more sidebar titles pop up on the Wii/DS first. SquEnix is too tied to Sony’s castle to move this title to its direct competitor. This doesn’t mean SquEnix won’t release 360 games, however. I expect new titles such as The Last Remnant to be cross-platform releases; it’s a business, after all, and SquEnix needs all the help it can get to establish a name for itself outside FF and Dragon Quest. While I realize a lot of gamers get all up in arms about the PS3 losing exclusives, I think many are asking the wrong question. It’s not so much about losing 3rd party exclusivity as it is how well do the PS3 and 360 stack up when the 3rd parties are no longer an impact?

First/Second Parties Wrap Up: Sony’s core teams are FINALLY bringing out some of the games that will help define its system in the eyes of consumers. Two of the biggest games coming soon are HEAVENLY SWORD and insomniac’s UNCHARTED. Both not only look stellar, but also potentially different enough in style and direction to cast the PS3 as a console of choice. Sony’s knack for the cinematic should be lightyears ahead of Microsoft’s and I suspect we’ll get a nice view of that when these two gems ship. I admit though that while UNCHARTED will probably play like a dream, I still have some doubts over Ninja Theory’s gameplay design for HEAVENLY SWORD — though even it merely mimics God of War’s schema and innovates on nothing more than graphics, Sony still has a heart-stopper heroine it can flaunt in front of its core male demo.

Whether Sony’s first parties are better than 360’s is arguable — though I’d say PS3’s are probably better. Microsoft seems to be loaded with critical guns but not commerical ones. Lionhead and Silicon Knights are no Sucker Punch and Insomniac; and Rareware is nothing more than a shadow of its former self. Sure, 360 has Bungie but after Halo, Bungie might be a one-trick pony.

Price Gap Probably Gone: CEO Stringer made it clear that the PS3 needs a price refinement and CEOs don’t go around saying things like that unless they’re serious about doing it. Although sales of the PS3 are slow, a huge barrier to entry right now is the price tag. When PS3 can hit the $400 price mark, it’s likely to sell thousands more than the 360 per month. If the price difference becomes marginal — something I suspect will happen in the next two to four months, Microsoft might be surprised to find how quickly the ratio of 360 to PS3 units flip over. Will the PS3 be the market leader by the end of 2008 — probably not; I think the Wii will keep its lead for one more year. However, by the end of 2009, PS3 should have surpassed the Wii as the console of choice for gamers.

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