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Forums - Sales Discussion - Why reports of the decline of the PS3 have been grossly exaggerated.

FishyJoe on 30 November 2008

Even a half billion dollar loss could potentially wipe out all of Sony's profits for the year if the electronics sales fail to deliver. Putting up a loss this year would lead to massive changes at Sony, and could potentially ouster the current leadership.

It's easy to say lose more money when it's not your money or job on the line.



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Smashchu2 on 30 November 2008
FishyJoe said:
Even a half billion dollar loss could potentially wipe out all of Sony's profits for the year if the electronics sales fail to deliver. Putting up a loss this year would lead to massive changes at Sony, and could potentially ouster the current leadership.

It's easy to say lose more money when it's not your money or job on the line.

Very good point Fishy.

One thing to mention guys is that price isn't everything. The PS2 outsold the Gamecube despite it's lower initial price and it price cuts. Wiis also still sold online for higher prices then PS3 and X-Box360s. One issue to remember is that the PS3 isn't useful to consumers. They don't care about HD when DVD works fine. Most Wii owners hardley connect their Wii online, so why is it a big deal. Sony opvershot the values of the consumers. In some ways, the best way to increase profits to reaffirm the buyers. I'll tell you the game coming out of Sony are not/will not do that.



Bitmap Frogs on 30 November 2008
Smashchu2 said:
FishyJoe said:
Even a half billion dollar loss could potentially wipe out all of Sony's profits for the year if the electronics sales fail to deliver. Putting up a loss this year would lead to massive changes at Sony, and could potentially ouster the current leadership.

It's easy to say lose more money when it's not your money or job on the line.

Very good point Fishy.

One thing to mention guys is that price isn't everything. The PS2 outsold the Gamecube despite it's lower initial price and it price cuts. Wiis also still sold online for higher prices then PS3 and X-Box360s. One issue to remember is that the PS3 isn't useful to consumers. They don't care about HD when DVD works fine. Most Wii owners hardley connect their Wii online, so why is it a big deal. Sony opvershot the values of the consumers. In some ways, the best way to increase profits to reaffirm the buyers. I'll tell you the game coming out of Sony are not/will not do that.

 

Yeah, but the demand this gen is for the wii...





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

SOLIDSNAKE08 on 30 November 2008

ps3 should have an excellent year next yera with some heavy htting games coupled with worldwide price cuts. next year should also be the year it finally breaks through in japan.



Smashchu2 on 30 November 2008
Bitmap Frogs said:
Smashchu2 said:
FishyJoe said:
Even a half billion dollar loss could potentially wipe out all of Sony's profits for the year if the electronics sales fail to deliver. Putting up a loss this year would lead to massive changes at Sony, and could potentially ouster the current leadership.

It's easy to say lose more money when it's not your money or job on the line.

Very good point Fishy.

One thing to mention guys is that price isn't everything. The PS2 outsold the Gamecube despite it's lower initial price and it price cuts. Wiis also still sold online for higher prices then PS3 and X-Box360s. One issue to remember is that the PS3 isn't useful to consumers. They don't care about HD when DVD works fine. Most Wii owners hardley connect their Wii online, so why is it a big deal. Sony opvershot the values of the consumers. In some ways, the best way to increase profits to reaffirm the buyers. I'll tell you the game coming out of Sony are not/will not do that.

 

Yeah, but the demand this gen is for the wii...

And the reason is.........

 



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Oyvoyvoyv on 30 November 2008
Smashchu2 said:
Bitmap Frogs said:
Smashchu2 said:
FishyJoe said:
Even a half billion dollar loss could potentially wipe out all of Sony's profits for the year if the electronics sales fail to deliver. Putting up a loss this year would lead to massive changes at Sony, and could potentially ouster the current leadership.

It's easy to say lose more money when it's not your money or job on the line.

Very good point Fishy.

One thing to mention guys is that price isn't everything. The PS2 outsold the Gamecube despite it's lower initial price and it price cuts. Wiis also still sold online for higher prices then PS3 and X-Box360s. One issue to remember is that the PS3 isn't useful to consumers. They don't care about HD when DVD works fine. Most Wii owners hardley connect their Wii online, so why is it a big deal. Sony opvershot the values of the consumers. In some ways, the best way to increase profits to reaffirm the buyers. I'll tell you the game coming out of Sony are not/will not do that.

 

Yeah, but the demand this gen is for the wii...

And the reason is.........

 

 

 Wii Sports!



http://www.vgchartz.com/games/userreviewdisp.php?id=261

That is VGChartz LONGEST review. And it's NOT Cute Kitten DS

Bitmap Frogs on 01 December 2008
Oyvoyvoyv said:

 Wii Sports!

 

Which will end up as game of the generation, no doubt. It turned the Wii into the monster it is today.

 





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

Zlejedi on 01 December 2008
Squilliam said:

What we're seeing with PS3 sales isn't some end of days phenomenom. All we're seeing is that the number of people who are willing and able to purchase a PS3 at the price of $400 being tapped out, and thus a pricecut is required to stimulate sales again. Thats pretty much it. Sure there are still people who will buy at that price, but the numbers of those people will decline especially after the rush this year so obviously a price cut is needed.

But how can SCE afford such outlanding expenses such as a price cut in these harsh times?

If we assume everythings in U.S dollars for a moment, and that Sony sells 10,000,000 PS3s with a price cut. At $400, they would have recieved $4,000,000,000 of revenue whilst at $350 it would be $3,500,000,000. A shortfall of about $500,000,000 (Im assuming the same number sold because I don't want to complicate things)

Killzone 2, Uncharted 2, MAG, Gran Turismo 5, God of War III, the agency.

If you could think of a reason these games will sell fewer than 15,000,000 combined on a userbase approaching the 30,000,000 mark please raise your hand and tell me. Now thats out of the way, if you assume a publisher cut of $38 per game that gives you a total revenue of: $570,000,000 minimum.

So the PS3 needs a price cut to stimulate sales, fact. The PS3 can afford a pricecut because this is likely to be the biggest year for sales for SCE on the PS3 for a while and even with a crappy exchange rate one can easily subsidise the other.

The end. What do you think?

 

 

 

 

 

I think that 500  milions loses from price cut is based on wrong logic.

The price for customer is sony price + sales channel margins. If official price is reduced by 50$ then Sony is taking less of a hit than suggest 50$ as margin is lower on 350$ item than on 400$ one.



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