"Sony first unveiled the PS3 as a mighty home-electronics product. Then, after some badgering from game companies, it shifted the position of the console closer to a game machine," Square Enix President Yoichi Wada told reporters on Friday.
"(The future of the PS3) would be tough if its marketing strategy is not straightened up," he said.
Sony's PS3 is packed with cutting-edge technologies such as
But on the downside, these state-of-the-art capabilities drove up manufacturing costs. The basic version of the PS3 retails for twice as much as Nintendo's Wii.
The high price and scarcity of strong game titles have caused the PS3 to lag far behind the Wii in unit sales since their launches late last year.
In a sign of changing fortunes of the two Japanese video game makers, Nintendo in June became one of Japan's 10 most valuable companies, and in doing so, bumped Sony off the top 10 list.