Another headache for Sony: falling PSP sales

[wraggster]

News via ITworld

As if the laptop battery recall and stumbles towards the launch of the PlayStation 3 weren't enough for it to deal with, Sony Corp. said this week that shipments of its PlayStation Portable (PSP) handheld game device are well below expectations.

Sony Computer Entertainment Inc., the unit of Sony responsible for PlayStation products, expected sales this year to be below 2005's levels, but they now appear to be falling much faster than initially anticipated -- and much sooner after the launch than was the case with the PlayStation and PlayStation 2 consoles.

The PSP was launched in Japan on Dec. 12, 2004, and 3 million units were shipped by the end of March 2005, according to figures from Sony. In the financial year from April 2005 shipments jumped to 14.1 million units as the machine went on sale in North America and Europe. For the current fiscal year, from April 2006, Sony initially said it expected shipments would decline to 12 million units, but this week revised that figure to 9 million units.

Part of Sony's problem has been strong competition in Japan from Nintendo Co. Ltd. and its Nintendo DS handheld. The DS has differentiated itself from the competition with a unique double-screen layout, a touch-sensitive panel and an innovative software lineup.

For example, the "brain training" game has proved particularly popular with businessmen in their 40s, 50s and above because the software presents a series of puzzles that are said to stimulate and improve brain functions. That's helped expand sales of the handheld to a group of people that have never been gamers before.

"If you look at the availability of software, there are a lot of games for the PSP but are not particularly successful," said Hiroshi Kamide, director of the research department at KBC Securities Japan. "You don't see any million-seller games for the PSP but you do hear about them for the Nintendo DS."

The latest game software sales rankings in Japan bear this out. Seven of the top ten titles for the week from Oct. 16 to 22 were Nintendo DS titles. The most popular PSP title ranked at number 19, according to data compiled by Media Create Co. Ltd.

"The big problem is that while it's a wonderful-looking machine with a great display, the games are not so different from those you play at home on the PlayStation 2. Most of the software is knock-offs of PlayStation 2 titles and that won't do Sony any favors," said Kamide.

It's a point with which Sony appears to agree.

"Clearly on the software side, any real killer title will galvanize the sales. There have been a number of titles that have been terrific, but not the one title that defines the product," said Robert Wiesenthal chief financial officer of Sony Corporation of America, in a conference call with financial analysts Thursday.

The quick drop in shipments of the hardware is also out of line with the pattern established after the PlayStation and PlayStation 2 went on sale. The PlayStation didn't register a drop in shipments until its fifth full year on sale, while the PlayStation 2 managed to avoid a slide in shipments until its fourth year on sale. Shipments of the PSP are dropping in only the second full year since release.

To stoke demand, Sony will be looking at how to widen the device's appeal beyond hard-core gamers.

"We are preparing the wiser use of the PSP for the future and also the releasing of a number of software [titles]," said Takao Yuhara, Sony's head of investor relations, during the conference call. "We are always looking at the PSP business expansion."

The PSP includes a number of additional functions such as a Wi-Fi adapter and Web browser, and in recent months Sony has added new features such as GPS (global positioning system) through an add-on GPS receiver, and the ability to subscribe to RSS (really simple syndication) feeds.

[Anger]

Hmmm am i the only one not wondering why its happening?

lik-sang = dead due to sony.
sony sales slow and profits fall = due to death of lik-sang. (at least in part)

i think this is the tip of a very large axe shaped iceberg hanging over sonys neck.

[emuking]

killing lik-sang kills most psp sales so it was obvious sony would be screwed if they shut down lik-sang and they did, sony is so incredibly stupid, R.I.P sony or at least till you rise from the dead again like always

[Adrenalin]

Hmmm am i the only one not wondering why its happening?

lik-sang = dead due to sony.
sony sales slow and profits fall = due to death of lik-sang. (at least in part)

i think this is the tip of a very large axe shaped iceberg hanging over sonys neck.

!!!

[Makaveli777]

This sucks I want things for ps3 to be the best they can because Im really looking forward to it. I also want a Wii but ps3 is what I want my traditional system to be not xbox 360.

[Cap'n 1time]

liksang may do alot for parts of europe, but i dont see how killing liksang would damage sony on a global scale, but who knows.

[meanguns]

Hmmm am i the only one not wondering why its happening?

lik-sang = dead due to sony.
sony sales slow and profits fall = due to death of lik-sang. (at least in part)

i think this is the tip of a very large axe shaped iceberg hanging over sonys neck.

Hey Sony! Guess What’s up? You’re so screwed!

I won't be buying a ps3 due to link sang! There seems to be a lot of pissed off people out there! HUH? Sony!

I am just one of those people who are boycotting your products, I was thinking of buying one of your big screen TV’s but that definitely is not going to happen now!

Now lets talk about what you can do to increase sales, what will work and what won’t. Consider this, I bought a PSP so I can play older computer games on the Go like Commodore 64 and Apple stuff. Stuff I liked when I was a kid! In addition to playing these games I bought quite a few UMD’s just because I already had your PSP system.

Unfortunately for you I can’t play all of the UMD’s out there because I won’t sacrifice the reason I originally bought the PSP for! I won’t update it ever!

Wannna sell PSP’s Sony? Let us do what we want with the system. Let us use it’s full potential, and allow others to do the same! Stop what you are doing and allow the downgrading of the PSP allow homebrew to work on all PSP’s.

Take it from me, You won’t stop what’s going on but, sometimes it’s better to befriend your enemies in some cases than to try to destroy them. Join us and allow link-sang back into business and forgive and forget. Allowing homebrew and opening up new business avenues will only increase sales of the PSP propelling the system to new unexpected heights!

What you did to link-sang is nothing less than a shame, although, what we do or say won’t put you out of business, believe me you, it will hurt you! This is just the beginning, I promise!

[the_eternal_dark]

It's no surprise that sales are down. Where are the good games? I forgot, most of them are available here for free! Sony, just release a NEW Resident Evil for the PSP and have it tie in to a PS3 version, or better yet, do a Gran Turismo game with that functionality. This could be Sony's ticket to get back into the market big time, their own version of Pokemon so to speak.

Sony never listens to us though.

[animekid4]

www.sony.justgotowned.com

Hey Sony! Guess What’s up? You’re so screwed!

I won't be buying a ps3 due to link sang! There seems to be a lot of pissed off people out there! HUH? Sony!

I am just one of those people who are boycotting your products, I was thinking of buying one of your big screen TV’s but that definitely is not going to happen now!

Now lets talk about what you can do to increase sales, what will work and what won’t. Consider this, I bought a PSP so I can play older computer games on the Go like Commodore 64 and Apple stuff. Stuff I liked when I was a kid! In addition to playing these games I bought quite a few UMD’s just because I already had your PSP system.

Unfortunately for you I can’t play all of the UMD’s out there because I won’t sacrifice the reason I originally bought the PSP for! I won’t update it ever!

Wannna sell PSP’s Sony? Let us do what we want with the system. Let us use it’s full potential, and allow others to do the same! Stop what you are doing and allow the downgrading of the PSP allow homebrew to work on all PSP’s.

Take it from me, You won’t stop what’s going on but, sometimes it’s better to befriend your enemies in some cases than to try to destroy them. Join us and allow link-sang back into business and forgive and forget. Allowing homebrew and opening up new business avenues will only increase sales of the PSP propelling the system to new unexpected heights!

What you did to link-sang is nothing less than a shame, although, what we do or say won’t put you out of business, believe me you, it will hurt you! This is just the beginning, I promise!

I PLAYED MY SMASHGPSP MORE THEN I PLAYED UNTOLD LEGENDS!!!!!!SONY IF YOU CANT BEAT A BUNCH OF COOL NERDS(double negative)THEN GOSH
YALL SUCK!!!!I GOT A DS AND I STILL PLAY IT MORE THAN MY PSP....ALTHOUGH I HAVE BEEN PLAYING MY PSP MORe THIS MONTH SINCE I GOT EMUS!!!!IN YO FACE!!!!!!!!(i am currently hooked on co-co=cola)

[Anger]

liksang may do alot for parts of europe, but i dont see how killing liksang would damage sony on a global scale, but who knows.

well the way i see it is this. sony released traditionally in japan first, then usa then finally us euros. now i know there doing it differently this time but when the psp was launched the stock sold out instantly - i would say most likely because of pre-orders and overseas suppliers selling the console to the desperate people that live abroad and cant officially get one. i was one of them. now lik-sang is gone, there new 2 zone strategy might just offset the extra sales they will now lose because of the ruling, but it will still affect the sales while sony still neglects at least one zone. now thats not to say there isnt other overseas resellers but they will be afraid of that almighty ruling in sonys favour. maybe im wishfull thinking but i really would like to see sony lose a huge amount because of lik-sang sales - that would be justice.