As the first European users got their hands on the PlayStation 3 this weekend, industry analyst Ovum has warned that Sony will have an uphill struggle to convince users to move to the new console.
VIDEO: Fans wait to get their hands on the new kit
"Sony has gone from being the king of consoles, to facing stiff competition in a market where for the time being it has been side-tracked," said senior Ovum analyst Carl Gressum.
The analyst believes that the once dominant console maker could learn a thing or two from Apple on corporate communication and how to work with the press and media.
"Sony has too many outspoken executives and too little control of what they say and do. This is a challenge fit for the management of Sony Corporate," Gressum said.
Ovum also urged Sony to get costs under control and bring down the price point of the PlayStation 3.
"There is no secret that Sony is losing money on every console that is sold. Sony's hands are largely tied, but the Cell processor will be key to manufacturing execution and bringing down the cost of the Blu-ray drive," said Gressum.
The analyst urged Sony not to be so proud of its engineering skills. "Listen to market needs when designing products," he said. "Do not design products just for engineering pride. It is this trait that led to the failure of many Sony products."
Ovum's research also identified the key challenges facing Microsoft with its Xbox 360 and Nintendo with its Wii.
Microsoft needs to reduce the noise levels of the Xbox 360 for it to sell through service providers and be bundled with IPTV.
"IPTV is not likely to fly off the shelf while the Xbox hums away with its noisy DVD drive and fans," the analyst said.
Nintendo, on the other hand, has enjoyed great success with the Wii by focusing on the user experience and not hardware specifications.
"However, Nintendo needs to keep up the momentum around the controller and interface, and will need new games and compelling content that takes advantage of the user interface," said Gressum.