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Retailers Demand PSP Price Drop

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Sintinel said: No because people actually buy games for the Xbox 360. Retailers don't make much money on hardware, they make it all on games and accessories. The Xbox 360 sells a helluva lot of both, the PSP, not so much.
Actually Microsoft doesn't make any money on Xbox360 but it isn't a problem with such impressive software sale. Each PS2 brings extra 8 $ for sony, probably PSP is also profitable. BTW in USA PSP is selling better than PS1, Xbox360 and ... DS (if we will count first 2 years period). Check this stuff. If we will assume a 5 years lifespan - PSP can reach solid 40 millions worldwide.



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Actually, MS broke even on the 360 about 9 months ago, and have been making a profit on them since a little after that. And developers and retailers don't care so much about past and future performance, but present performance. The PS1, NES, and SNES made a shit-load of money for retailers in the past, but are those games still on retail shelves? The fact is the DS is selling much much better in both hardware and software. That's the only fact that retailers care about. They can't make money on past and future sales, only present ones.



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i think, after release psp lite they definately will drop price, until that happens, there is no point of doing that,



Every 5 seconds on earth one child dies from hunger...

2009.04.30 - PS3 will OUTSELL x360 atleast by the middle of 2010. Japan+Europe > NA.


Gran Turismo 3 - 1,06 mln. in 3 weeks with around 4 mln. PS2 on the launch.
Gran Turismo 4 - 1,16 mln. with 18 mln. PS2 on the launch.

Final Fantasy X - around 2 mln. with 5 mln. PS2 on the launch.
Final Fantasy X-2 - 2.4 mln. with 12 mln. PS2 on the launch.

 

1.8 mln. PS3 today(2008.01.17) in Japan. Now(2009.04.30) 3.16 mln. PS3 were sold in Japan.
PS3 will reach 4 mln. in Japan by the end of 2009 with average weekly sales 25k.

PS3 may reach 5 mln. in Japan by the end of 2009 with average weekly sales 50k.
PS2 2001 vs PS3 2008 sales numbers =) + New games released in Japan by 2009 that passed 100k so far

I'll let you all in on a not so secret, secret: Retailers don't really make much money on new videogames, systems and accessories Videogames (in general) have very low margins for retailers and the reasons retailers cary them is because (often) have explosive sales which can be profitable and they bring a lot of people into the store. Currently I'm willing to bet that employees hate the Wii and every company loves the Wii ... it takes no shelf space, it gets a lot of people walking deep into the store to look at a shelf who will (likely) buy something else because they're there. Poor sales for a system means that it is taking up shelf space, doesn't move much volume so the low margin hurts, and it doesn't bring that many people into a store. Currently, retailers have space devoted to the PS2, PSP, PS3, XBox, XBox 360, Gameboy Advance, Gamecube, Nintendo DS and Wii and (likely) want to recaputre some of this space to use for something that will move more units or bring more people into the store; the systems which are most likely to lose space at the current time are the PSP, XBox, Gamecube and Gameboy Advance ... they will still probably have a section, but they will probably be reduced to 1/2 a booth rather than the full booth they have.



Sintinel said: Actually, MS broke even on the 360 about 9 months ago, and have been making a profit on them since a little after that.
"The PS2, meanwhile, long ago turned profitable as component prices have plunged and development costs have been written off. Even at $130 a pop, Sony earns about $8 on each PS2 it sells, compared with an estimated loss of $250 per PS3. (Nintendo is believed to break even on the Wii, while Microsoft takes a loss on the Xbox 360.)" - Source - December 28 2006



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Sintinel said: Diomedes1976 said: By the way ,seeing as it sells about as much as the X360 and it wastes much less shelves space do you think retailers will force Microsoft to price cut the X360 as well ?? I am a bit tired of all these fake news .... No because people actually buy games for the Xbox 360. Retailers don't make much money on hardware, they make it all on games and accessories. The Xbox 360 sells a helluva lot of both, the PSP, not so much.
No ? Well ,after this page the total amount of software sold for both plattforms in NA is X360 : 30 652 000 . PSP : 29 861 000 . The issue is that the PSP isnt well represented in the top ten ,but when we have many pages of data you see those filled with PSP games .In any case as you can see the PSP has sold to date nearly as much software as the X360 ,and probably with a better profit as its games need less inversion . If you want to see it worldwide the PSP sales are superior to the X360 ones ,both in hardware and in software .



Sales of this system in the US are close so I don't see why retailers would come to this conclusion. Most of DS lead comes from the 10 million lead they have in Japan over the PSP. I do agree though. At 199 it's too expensive, there is no reason for it to be that much now. Especially with Ipod coming out with video players that are going to have a comparable cost to the PSP. Considering you could have got the DS on sale over the holidays at 99 bucks I think it's time the PSP price drops. They would sell more.



kber81 said: "The PS2, meanwhile, long ago turned profitable as component prices have plunged and development costs have been written off. Even at $130 a pop, Sony earns about $8 on each PS2 it sells, compared with an estimated loss of $250 per PS3. (Nintendo is believed to break even on the Wii, while Microsoft takes a loss on the Xbox 360.)" - Source - December 28 2006
Nice info Kber.



Diomedes1976 said:No ? Well ,after this page the total amount of software sold for both plattforms in NA is X360 : 30 652 000 . PSP : 29 861 000 . The issue is that the PSP isnt well represented in the top ten ,but when we have many pages of data you see those filled with PSP games .In any case as you can see the PSP has sold to date nearly as much software as the X360 ,and probably with a better profit as its games need less inversion . If you want to see it worldwide the PSP sales are superior to the X360 ones ,both in hardware and in software .
One's been on the market for just over a year, the other for almost 2 Given your numbers the 360 averages 204166 per month for the past 15 months its been on market. PSP is at 1244208 per month over the past 24 months its been on the market. Twist numbers much? But I think the big things for retailers is not comparing the PSP to the 360 the DS, in which case the PSP is slaughtered. They likely see consoles as a longer term investment knowing that in a few years they'll be making tons in a few years but expect handhelds to make them lots of profit sooner. BTW http://www.1up.com/do/newsStory?cId=3155499, MS makes a profit on each 360



Leo-j said: If a dvd for a pc game holds what? Crysis at 3000p or something, why in the world cant a blu-ray disc do the same?

ssj12 said: Player specific decoders are nothing more than specialized GPUs. Gran Turismo is the trust driving simulator of them all. 

"Why do they call it the xbox 360? Because when you see it, you'll turn 360 degrees and walk away" 

Diomedes1976 said: Sintinel said: Diomedes1976 said: By the way ,seeing as it sells about as much as the X360 and it wastes much less shelves space do you think retailers will force Microsoft to price cut the X360 as well ?? I am a bit tired of all these fake news .... No because people actually buy games for the Xbox 360. Retailers don't make much money on hardware, they make it all on games and accessories. The Xbox 360 sells a helluva lot of both, the PSP, not so much. No ? Well ,after this page the total amount of software sold for both plattforms in NA is X360 : 30 652 000 . PSP : 29 861 000 . The issue is that the PSP isnt well represented in the top ten ,but when we have many pages of data you see those filled with PSP games .In any case as you can see the PSP has sold to date nearly as much software as the X360 ,and probably with a better profit as its games need less inversion . If you want to see it worldwide the PSP sales are superior to the X360 ones ,both in hardware and in software .
Not so sure about the europe ones. But the reason the psp isn't well represented in the top ten is because for a while they pushed it's media features and not the games.