PDA

View Full Version : Is Sony's PS3 Really a Sinking Ship?



wraggster
December 15th, 2008, 23:29
CNN has declared Sony's PS3 "a sinking ship" riffing off last Thursday's "plummeting" NPD sales results. CNN bases its gloomy diagnosis on Sony's sales plunge of 19 points, compared to sales in November 2007. That's a fair criticism, but it isolates a superficially negative statistic while ignoring the fact that this November only included two days of post-holiday sales (11/28 - 11/29) compared to last year's eight total (11/23 - 11/30). I'm speculating here, but if you could adjust for that difference, it's very likely PS3 sales would have increased, however slightly, year-over-year.

What's more, Sony rightly points out that the PS3 has seen hardware sales grow 60% year-to-date. I realize the PS3 wasn't selling well in 2007, so that figure's less impressive than it sounds, but growth is growth, any way you slice it. What's more, look at PS3 and Xbox 360 units sold in total worldwide, and Sony pretty much throughout 2008 has actually been playing catchup.

Then there's the PlayStation brand overall, which when you factor in the PSP and PS2, topped 1 million units, more than the Xbox 360's 836,000. The PlayStation brand has in fact pretty easily muscled past the Xbox brand practically every month since the PS3's launch. Sony's margins on the PSP and PS2 are almost certainly better than the PS3's, so which company's actually been more profitable in overall unit sales is less obvious than it seems.

On the other hand, CNN's whacking the nail on the head when it raises the problem of the PlayStation 3's price. The recession's been on well and long enough for Sony to have reacted by now, and yet it's stubbornly clung to that $400 entry point. Had it dropped the PS3's price to $300 or even $350 it's a safe bet October and November's numbers would've tallied much more favorably. Both Microsoft and Sony have a solid stable of exclusives, and both have interesting companion services, but it's price and not NXE/Netflix or PlayStation Home that's deciding the battle at the moment.

Quick points...

CNN's right that the video-game industry isn't recession proof. Nothing is. The rest of us saying as much merely mean "recession-proof-so-far," which it clearly is compared to other ebbing economic indices.

CNN says the differences between Blu-ray and DVD are hard to see on a TV less than 50". I suppose that'd be true if your eyes are somehow genetically fixed at 720 x 480 (NTSC). For the rest of us, Blu-ray at even 720p (1280 x 720) with all its other commensurate upticks in sample rates and color quality is shockingly better than the visuals output of the average DVD.

And finally, "the PS3 just doesn't have any must-have titles exclusive to the console." Really? I guess CNN's not familiar (or perhaps just not partial to) exclusives like Metal Gear Solid 4, Uncharted: Drake's Fortune, Ratchet & Clank Future, Wipeout HD, Valkyria Chronicles, the original Resistance: Fall of Man (twice the game the sequel is, in my opinion), and MLB 08: The Show. When you're talking new unit sales, you count the whole history of notable exclusives, not just the last month or two of holiday attention-grabbers.

http://www.pcworld.com/article/155483/is_sonys_ps3_really_a_sinking_ship.html

jvabbdac
December 16th, 2008, 01:33
Its All bs !!! People must stop thinking is all truth on CNN, News even Times ! Micro$oft is a big monopoly company ! Times and times MS go back to the court ! I rate M$ !!!

silverstein101
December 16th, 2008, 02:24
psh, CNN's dumb anyways

DCergo
December 16th, 2008, 02:57
CNN didn't write the story, they just picked it up from a tech blog, it's by a loser named Eric Krangel (alleyinsider.com or something like this) who has a hard-on for writing anti-Sony stories.

vypher
December 16th, 2008, 06:43
I'd have to agree that this article is BS. I love my PS3!

Justise
December 16th, 2008, 10:16
Despite owning a 360, I still belive that the article is BS.
I agree that Micro$oft is a big fat monopoly company! I dont like the way they work in many ways...

almcchesney
December 16th, 2008, 17:46
i like how they say no exclusives while next years linup for the 360 is looking bad, compared with the ps3's infamous, killzone, MAG, God of war 3, just to name a few. and also you must remember that microsoft gets to add 1 to the tally for EVERY 360 that is broken and replaced through warrenty, it isnt as bad as it used to be but working for gamestop there are still a ton of red ringed/broken 360's being replaced, that probably accounts for at least a quarter of tallied sales.

mib_
December 16th, 2008, 20:16
Two points:

1. Everyone's waiting for a price drop. The PS3 still costs £300 in the UK and the x360 is £130.

2. I see 360 adverts several times a night on TV. I've never seen a PS3 advert. That's right, NEVER.

Napalm-Death
December 16th, 2008, 21:22
The writer of this stupid article reminds me of an Xbot that I used to talk to. -__-;;

Stone Temple Pilots
December 17th, 2008, 03:31
Yeah I went to SA and I read this guy's articles on the PS3 and they're all basically hating on the PS3. He might have something against Sony, but his articles aren't as absurd as some of the comments left by people on SA. Hahahaha.

Eviltaco64
December 17th, 2008, 05:56
The main problem with the PS3 is the high price. Note that sales started going down when Microsoft started whoring the 360 at $199. Then they step in and say it's rival is a "sinking ship".

If Sony wants to get somewhere, they need to drop the price, and if they need to make some more modifications to the hardware to do so, then so be it. I'm getting a launch model anyway. :P

jamotto
December 17th, 2008, 06:11
If Sony wants to get somewhere, they need to drop the price, and if they need to make some more modifications to the hardware to do so, then so be it.

Sony has cut every feature that was expendable already.

Eviltaco64
December 17th, 2008, 06:42
Sony has cut every feature that was expendable already.

You have a good point there, but they could sadly remove more. They could probably have a core model with no wi-fi, a completely black trim, less USB ports, etc, like if someone were to rape a launch 20GB PS3 and put it on the shelves for $299. It'd also be great if they brought PS2 BC back by means of complete emulation on newer models. I actually know a few people that already avoided getting a new PS3 because they don't have any PS2 BC.

F9zDark
December 17th, 2008, 23:35
Sony has cut every feature that was expendable already.

I think the biggest issue is profit margins. Sony has lost so much money on the PS3 that they cannot afford to keep losing money. So any price cut needs to be accompanied by a cut in the cost of manufacturing.

However, if Sony actually ADVERTISED the system, ADVERTISED its killer games, ADVERTISED all the reasons WHY its a better value (for a long time, it was in fact the BEST value for a console).

They have done NONE of these things.

However, the Console money making scheme has LONG BEEN "Sell at a loss, make it back with games and accessories."

Sony barely sells their own accessories. JUST NOW we're getting a Sony headset. Where are the Sony-made thumb-keyboards, Bluetooth mice and keyboards?

I love Sony and all, but shit, if you really ask me, Sony has done very little to actually earn any money on the PS3.

How much does it cost to make a BT keyboard complete with Sony XMB hot buttons, a new quick to make update to support it, etc? Probably no more than 30 bucks. And how much would they sell it for? 80, like most other BT keyboards out there.

My point is, Sony isn't following the general console selling strategy. Lose money on the system, make it back with games and accessories.

DPyro
December 18th, 2008, 01:08
You have a good point there, but they could sadly remove more. They could probably have a core model with no wi-fi, a completely black trim, less USB ports, etc, like if someone were to rape a launch 20GB PS3 and put it on the shelves for $299. It'd also be great if they brought PS2 BC back by means of complete emulation on newer models. I actually know a few people that already avoided getting a new PS3 because they don't have any PS2 BC.

There will be no raping of PS3's in this thread :rolleyes:

JLF65
December 18th, 2008, 07:15
The main problem with the PS3 is the high price. Note that sales started going down when Microsoft started whoring the 360 at $199. Then they step in and say it's rival is a "sinking ship".


Isn't it nice to have a monopoly to fall back on to make up for the hundreds of millions MS is losing on hardware sales of the 360? :rolleyes:

For anybody else, this is called "dumping" and is illegal. For MS, it's business as usual. Isn't nice to have bought politicians to fall back on? :mad:

Qmark
December 18th, 2008, 07:45
The simple truth of the matter is that Sony Console Syndrome is very real.

PS1 didn't sell much at all until FF7, and PS2 was a disaster its first couple of years. PS3 will find its place eventually.

F9zDark
December 18th, 2008, 22:24
The simple truth of the matter is that Sony Console Syndrome is very real.

PS1 didn't sell much at all until FF7, and PS2 was a disaster its first couple of years. PS3 will find its place eventually.

Disaster? I wouldn't quite put it like that. PS2 won its generation, almost hands down, and is still kicking ass in sales considering its age (then again its price also makes a difference).

Hell, if I was an exec at Sony, I'd continue to support the PS2 with new games right now. Considering its price, its the best contender against the Wii at least, and its a console that Sony can earn considerable profit on.

Sell the PS3 at a loss, make it back with the PS2.

jamotto
December 19th, 2008, 00:48
I think the biggest issue is profit margins. Sony has lost so much money on the PS3 that they cannot afford to keep losing money. So any price cut needs to be accompanied by a cut in the cost of manufacturing.

Totally Agree.


However, if Sony actually ADVERTISED the system, ADVERTISED its killer games, ADVERTISED all the reasons WHY its a better value (for a long time, it was in fact the BEST value for a console).

They have done NONE of these things.


Even though the quality of the adverts is entirely subjective, looking at the raw numbers the ps3 has had around 549 averts which is 274.5 adverts a year, the ps2 has had 2246 adverts which is 280.75 adverts a year so my conclusion is that they have been advertising the ps3 about as much as the ps2.






Sony barely sells their own accessories. JUST NOW we're getting a Sony headset. Where are the Sony-made thumb-keyboards, Bluetooth mice and keyboards?

Sony starting moving away from Sony branded accessories with the ps2 the ps3 is only a natural continuation of that for better or worse.