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Forums - Sales Discussion - PS3 price cut coming soon??

jman8 on 27 March 2007

If Sony's smart, they'll hold off on the price cut as long as possible and instead focus on rejuvenating the PSP, which sounds like the strategy they're going for if the redesign rumors are true. If they can get their PSP business rolling healthily and maintain PS2 sales, those two products could prop up the entire gaming division as they work on cost reducing the PS3. The PSP's got a strong line up for the year (God of War, Wipe Out, Crisis Core, Jeanne d'Arc), so all Sony really needs is a strong redesign/price cut to get people excited about the system again. Pretty easy if you ask me especially considering current sales aren't terrible to begin with.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.

Around the Network
Stromprophet on 27 March 2007

jman8 said: If Sony's smart, they'll hold off on the price cut as long as possible and instead focus on rejuvenating the PSP, which sounds like the strategy they're going for if the redesign rumors are true. If they can get their PSP business rolling healthily and maintain PS2 sales, those two products could prop up the entire gaming division as they work on cost reducing the PS3. The PSP's got a strong line up for the year (God of War, Wipe Out, Crisis Core, Jeanne d'Arc), so all Sony really needs is a strong redesign/price cut to get people excited about the system again. Pretty easy if you ask me especially considering current sales aren't terrible to begin with.
Once again. How is the PSP unhealthy? It's already profitable, every PSP they sell is under cost and all the software is free cash flow money. It's already on course to outsell both GC and Xbox and no one thought those consoles were completely useless, even though they got crushed.



jman8 on 27 March 2007

Stromprophet said: jman8 said: If Sony's smart, they'll hold off on the price cut as long as possible and instead focus on rejuvenating the PSP, which sounds like the strategy they're going for if the redesign rumors are true. If they can get their PSP business rolling healthily and maintain PS2 sales, those two products could prop up the entire gaming division as they work on cost reducing the PS3. The PSP's got a strong line up for the year (God of War, Wipe Out, Crisis Core, Jeanne d'Arc), so all Sony really needs is a strong redesign/price cut to get people excited about the system again. Pretty easy if you ask me especially considering current sales aren't terrible to begin with. Once again. How is the PSP unhealthy? It's already profitable, every PSP they sell is under cost and all the software is free cash flow money. It's already on course to outsell both GC and Xbox and no one thought those consoles were completely useless, even though they got crushed.
I actually own a PSP and absolutely love it, and you're absolutely right about the sales. I just think the DS shows that the handheld market is huge and the PSP definitely has room to improve. Because it would be relatively easy to improve, I think Sony ought to take the steps to do so in order to make up for the loss on the PS3. In fact, this is probably their plan. The redesign/price drop would also help improve many people's perception of the system, which is just as important as current sales numbers because good perception can lead to future sales.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.

stof on 27 March 2007

Stromprophet said: Once again. How is the PSP unhealthy? It's already profitable, every PSP they sell is under cost and all the software is free cash flow money. It's already on course to outsell both GC and Xbox and no one thought those consoles were completely useless, even though they got crushed.
Mainly because it hasn't lived up to Sony's expectations. Sales have been down - the 2006 holiday season saw Sales down 72% from last years! - and the company has cut their targetrs for the system at least once ( I think twice but I'm not sure). Now when a system declines like that, it's just not good. Now that doesn't mean the system isn't still selling or that it's profitable. But it is doing quite poorly compared to Sony's expectations for the product.



I'm a mod, come to me if there's mod'n to do. 

Chrizum is the best thing to happen to the internet, Period.

Serves me right for challenging his sales predictions!

Bet with dsisister44: Red Steel 2 will sell 1 million within it's first 365 days of sales.

jman8 on 27 March 2007

Mainly because it hasn't lived up to Sony's expectations. Sales have been down - the 2006 holiday season saw Sales down 72% from last years! - and the company has cut their targetrs for the system at least once ( I think twice but I'm not sure). Now when a system declines like that, it's just not good. Now that doesn't mean the system isn't still selling or that it's profitable. But it is doing quite poorly compared to Sony's expectations for the product.
SHIPMENTS were down 72% but SALES were about the same as last year. As for what Sony's expectations were, i have no idea about that.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.

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FishyJoe on 27 March 2007

Don't forget they totally botched the UMD format and took themselves out of the game as the portable media player of choice. They were so focused on the failed UMD format, they let apple pretty much own the portable video market. A multi-billion dollar opportunity again lost to Apple. First with music, then with video. It's amazing how they repeated their stupidity not once, but twice with mini-disc and UMD.



stof on 27 March 2007

jman8 said: SHIPMENTS were down 72% but SALES were about the same as last year. As for what Sony's expectations were, i have no idea about that.
Your right, it was shipments, but Sales still declined. Just look at the hardware weekly/monthly charts for NA and Japan. In both cases, each holiday period sees a decline in PSP sales. With most succesful systems, sales increase from one holiday period to the next. As for expectations, Sony cut their targets. I know this isn't the best source, but it's all I can find right now. - Sony today cut their profit outlook by 62 percent, blaming battery recall costs, the Japanese Playstation 3 price cut, and weaker than expected sales of their PSP console. According to a Reuters report, Sony reduced its profit target for the year to 50 billion yen from previous estimates of 130 billion yen. In addition, Sony reduced its PSP shipment target to 9 million units, down 25 percent from previous estimates. While Sony has seen the PSP console fail to meet sales projections, Nintendo has raised their sales target over the same period, making Sony’s assertions that they are holding their own in the market suspect. Linky



I'm a mod, come to me if there's mod'n to do. 

Chrizum is the best thing to happen to the internet, Period.

Serves me right for challenging his sales predictions!

Bet with dsisister44: Red Steel 2 will sell 1 million within it's first 365 days of sales.

jman8 on 27 March 2007

They never stood a chance at being the media player of choice considering the PSP has 0 internal memory. Sony was trying to pave a new way with UMD rather than taking the ITunes approach, and i'm damn near positive it would've worked if UMDs were $10 instead of a ridiculous $20+. Now with memory costs being somewhat reasonable (i bought a 4gb memory stick today for $66), Sony'll probably go down the ITunes path. If they don't price themselves out of the market again, movie/music downloads will work and help sell systems, which will allow them to offset PS3 losses.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.

jman8 on 27 March 2007

stof said: Your right, it was shipments, but Sales still declined. Just look at the hardware weekly/monthly charts for NA and Japan. In both cases, each holiday period sees a decline in PSP sales. With most succesful systems, sales increase from one holiday period to the next. As for expectations, Sony cut their targets. I know this isn't the best source, but it's all I can find right now. - Sony today cut their profit outlook by 62 percent, blaming battery recall costs, the Japanese Playstation 3 price cut, and weaker than expected sales of their PSP console. According to a Reuters report, Sony reduced its profit target for the year to 50 billion yen from previous estimates of 130 billion yen. In addition, Sony reduced its PSP shipment target to 9 million units, down 25 percent from previous estimates. While Sony has seen the PSP console fail to meet sales projections, Nintendo has raised their sales target over the same period, making Sony’s assertions that they are holding their own in the market suspect. Linky
In NA, November+December sales were down by 150,000 units or about 10%, which isn't terrible. I do agree that successful system sales ought to increase every year, but the drop in sales isn't enough to say the PSP is unsuccessful (especially considering Jan+Feb sales are up by 50,000). Basically, the PSP is in an in between stage where we can't tell at all what the future will hold; it is simply doing OKAY. I think a few easily implementable improvements will give it some solid momentum that will make sales "successful." Certainly improvements wouldn't hurt the system.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.

Halo kills on 27 March 2007

Production cost is way to much for them to drop the price so its risky but possible if sony want to stay in the nex gen race