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Forums - Sales Discussion - Predict the effect of the 360 price drop. Will it be outsell PS3 again?

megaman79 on 03 August 2008

The Wii is like jesus. Everybody wants to touch it no matter the cost. Wii touch everyone like jesus



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

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reask on 03 August 2008

Sonys problem is the longer this goes on makes it more difficult for them to catch up.
I predict a ps3 price cut.
They have no choice really.



 

 

 

 

NJ5 on 03 August 2008
reask said:
Sonys problem is the longer this goes on makes it more difficult for them to catch up.
I predict a ps3 price cut.
They have no choice really.

No price cut before 2009. It's pretty clear.

Here is what Sony said to investors:

SINGAPORE -(Dow Jones)- Sony Corp. (SNE) Chief Financial Officer Nobuyuki Oneda said Friday the company has no plan to reduce the price of its Playstation 3 game console.

"Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," Oneda told investors at a Nomura Asia Equity forum in Singapore. "Our plan is not to reduce the price."

Source.

Furthermore, they said they only expect to achieve profitability towards the end of the current fiscal year (i.e. close to March next year). Emphasis mine:

The minimum, I mean, at least over 10 million units has to be sold to create a platform. So therefore fiscal '07 even though that our cost of the hardware is much higher than the price itself, we have to sell close to the 10 million sets in fiscal year '07, but this year, our strategy is that we should focus more Internet-related service operation to increase the... to increase the internet operation, to increase the software rather than drastically increase the quantity by adjusting the prices. If you consider the long life, long lasting lifetime of the PS3, this year we don't think it is a time to aggressively sell the hardware quantity this year. That's our strategy for this fiscal year.

Source.

Sony's investors are not going to put up with more big PS3 losses.

 



My Mario Kart Wii friend code: 2707-1866-0957

reask on 03 August 2008

@nj5
I Know they said that but with ms getting so aggressive will they have any choice really?



 

 

 

 

NJ5 on 03 August 2008

@reask: They will do bundles and some promotions like that, but doing a price cut would get them in trouble with their shareholders, especially given that Sony isn't having a great fiscal year so far. Their cellphone division didn't post any profit, and their Electronics division saw its profit cut by half (if I remember correctly). Their movie division doesn't have any blockbuster either, or do they?

It's not the time for Sony to be aggressive... They are going to win in Europe vs the 360, so that should enable them to, at the very least, not lose ground against it. The PS3 is not in trouble anymore.

 



My Mario Kart Wii friend code: 2707-1866-0957

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Rath on 03 August 2008
reask said:
@nj5
I Know they said that but with ms getting so aggressive will they have any choice really?

They don't really have the luxury of being able to drop the price. As a whole Sony's financials aren't at their best and the PS3 needs to start turning a profit quick sharp.

 



obieslut on 03 August 2008

A 360 price cut.

the ps3 is going to lose some sales and the 360 is going to gain some, but what people have got to remember is that people are willing to spend more money around xmas time so the price of the ps3 is not really going to matter that much compared to how much it matters outside of the holiday season



reask on 03 August 2008

Yes but Remember that 75 percent of the units sold at $199 or less in the last generation.

Sometimes the market dictates what you do.



 

 

 

 

NJ5 on 03 August 2008

@reask: The market dictates what you should do, but shareholders can just as quickly dictate that Sony has to sell/downsize their games division if it loses too much money, or that Sony's board has to be replaced by a more fiscally conservative one.

I'm not saying it's absolutely impossible for a price cut to happen, I'm just saying it's very unlikely, and not something we should expect. They'll probably do some attractive bundles, perhaps with movies as well as games. If the PS3 sells 4 million units during Christmas, even a $50 price cut means an additional $200 million loss, which is not money they have the luxury to lose now.

 



My Mario Kart Wii friend code: 2707-1866-0957

libellule on 03 August 2008
misterd said:
libellule said:
Hawkeye said:
Uh, both this week and last week PS3 lost by about 25K units. I predict that the gap will narrow and PS3 will win again, until the September price cut. At that time, Xbox 360 will outsell PS3, and then after the initial spike, the two systems should sell on par for the holiday season. I don't think PS3 will pass Xbox 360 this gen, but it will be close. It doesn't matter though; they will both share alot of games, and exclusives will go to whoever offers the bigger moneyhat.

 

 ==> I m fixing ur post ;))

"After the initial spike, PS3 will outsell AGAIN the Xbox360 WW during Xmas sales because it is still the cheaper BR player in NA, because Elite is still too expensive, because PS3 80gb > Premium 60gb, and because Arcade will not be able to compete with the Wii that possess too much appeal for the casual crowd compared to the Xbox360.
Overall, the PS3 should be 4.5-4M behind the Xbox360 at the end of this year 08." (WITHOUT PS3 price cut ofc)

(bundling LIPS + BanjoKazooie will not change anything to the poor appeal of the Arcade)

Actually, if the cheapest PS3 stays at $400, we could see some BR players under that price come the holidays, and we still don't know how many people are feeling the need to make that jump to BR.

==> This xmas PS3 will be the typical HD toy to buy for Xmas when people can afford to buy more expensive

product : good games + HD movie

Sure, it costs more but it is also newer and u have the BR player ...

  The PS3 80GB may be > than 60G 360, but it's also $100> too.

==> BR player + wiifi + 80gb + dualshock3 it is enought to consider Xbox360 as outdated particularly since PS3 has good games NOW

I'm not saying the PS3 won't be the 360 - just that I suspect it'll be a closer call than many expect.

 ==> that I agree but remember Arcade had some problem to compete with Wii in term of value.
And, more important, for casual, Microsoft has NO brandname compared to Wii.

Indeed, if Wii' stock are sufficient, I expect Wii to insanely freeze Arcade sales

(LIPS+BK are just not enought to catch the casual vs Wiifit+Wiisport+Mkart+Brawl)

I also dont expect MS to introduce BR player or X-mote : they would have announced it at E3 (they have already announced their whole line-up for Xmas (as Sony and opposed to Ninty))
 

 

 



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