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Smashchu2 on 27 May 2010
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Wonktonodi said:

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Smashchu2 said:
Wonktonodi said:
Smashchu2 said:
thismeintiel said:
@ smashchu

The article you posted mostly proves me right. Their source says that a defensive strategy was "partly" the reason. Then he goes on further to explain how much MS could profit with the X-Box brand if they were to defeat and drive Sony out of the console market. On a smaller note, this is from the mouth of an analyst, not a MS exec.

You can post definitions from Wikipedia all you want, but that doesn't refute the fact that demand for the PS3 was higher. This latest fiscal year, Sony shipped 13 mil consoles, 3 mil more than the previous FY. If demand had stayed the same, 13 mil would have been more than enough. But, even with 3 mil more consoles shipped, it wasn't enough to keep a steady supply in stores.

As for the shortages on Amazon, they only just got those a day or 2 ago. When I posted my first message on here a day before that, they were only selling them from Target. It had been like that for weeks. And before that, they were selling them from WWD. Amazon themselves got a shipment more than a month ago and were out within a week or 2 (during that time PS3 was #1 in sales in the video game category), and were sold out until now.
  • It was someone interviewing a Microsoft excecutive. The 360 is a defensive strategy
  • Oh Geez, you've got to be.......look, the fact is that demand is not increasing becuase price is decreasing. Think of it this way. Consumers don't want it more. They've always had this current demand for PS3s, but they could not realize it due to price barriers. When Nintendo releases software like New Super Mario Wii, people want Wiis more and will be willing to pay the same price for a greater quantity. All Quanity Demanded is the quanity sold at a set price level. When you lower price, you increase the quantity and this is quantity demanded. So far, Sony has never had an increase in demand
  • They had stock since your first post. I checked.

Nah, I think it's just an excuse for PS3 not lightin' up the charts like the industry wants and expected.   I do believe that there were definitely shortages created by holiday demand.  But for us to be well into May (almost June) and Sony still can't keep up with "demand" is a little too ridiculous.  The industry is just being apologetic towards Sony like it usually is.

It's hard to refute that when we see it all the time. Analyst bend the truth to make it look better then it is (Malstrom has pointed out a lot of them).

demand is fluid.  There is not simple set number for what the demand of a system is.  People can make graphs and do supply and demand curves but those are estimates for a moment in time.  To act like the demand line is rigid and that the price change is the only reason more sel ignores any other factor that can change demand.

Advertising changens it

the state of the economy  changes it

more adaption of blue ray changes it

it's not something you can just say it's the same or it's different.  You can think that most of the change in how many people buy is soley because of the change in price but that would be missing everytihng eles.  Maybe this year games that people have been wating for came out. and the demand goes up.  

The idea that people think gamestop would lie about being short of stock to make it look better for sony seems way out there than compair to the idea that demand for the product went up a little more than Sony expected so they are a little short when they are switching from one chip type to another. 

Well, you know there are formulas for everything, including demand curvers. You are right, that they are estimates, but you can look at sales and see what is going on.

PS3 has only had two jumps outside of Christmas (which everyone gets a boost). The first was the first price cut, the second was the slim release. Both were reductions in price, which points to an increase in Quantity Demanded, and not a increase in demand (a shift). None of what you mentioned has any proof of making a substantial change. Evicence would suggest it's not adoption of Blu-Ray becuase sales would decline over time until another price cut.

The idea that people think gamestop would lie about being short of stock to make it look better for sony seems way out there than compair to the idea that demand for the product went up a little more than Sony expected so they are a little short when they are switching from one chip type to another.

The Game Industry kisses Sony's ass, going as far as to cover up blunders (no talk of the PSP Go at all) or word things that make it in Sony's favor. These are professionals doing it too. It would not be crazy to think that Gamestop over stated a shortage or was talking about it in a way that made it look good for Sony. Also remember that no one talks about New Super Mario Bros Wii despite it sold 10 million in 2 months (hard to ingore).

(moved them into my post)

rediction in price makes a jump because it's a huge shift other changes in demand can really only be mesured well after the fact.  Or once you can compair it to itself instead of just the price cute so like a year after the price cut.  Even then there are as I said many things that effect demand.  I was listing a few.   Just to try and get you to stop saying that there is no difference in demand like it is a fact. 

Not sure what you are getting at here. You might want to use more comma and periods in the future. The truth is that if a reduction of price making a blip is not a demand shift, it is a change in quantity demanded.

You can use weekly sales as a measure of changes in demand/quantity demanded. If there is a large jump out side of big buying seasons or sales over time start to rise, then something happened to the product. Two big jumps are price cuts, which leads me to beleive that it is changes in quantity demanded. After the first price cut, sales start to fall, making me beleive nothing else is at play.

I have statisticx 9.0 on my computer, so maybe I'll bust out some regresion analysis on the system over time.

One other way of mesuring demand of things is seeing how well it sells second hand or used.  When the wii was really in demand and almost always sold out everywhere it would sell more on the second hand market. It's not as bad as it was for the wii in terms of how big the mark up is. But very often now there is mark up for the ps3.  Currently to get it on amazon it would cost you 369.95 plus 29.95 to get it through Woldwide Distributors. So the demand is higher than the supply to a point. 

Not exactly. First, a sale on the second hard market is also a lose of a user on the first hand market. While it depends on the product, usually you sell a product off if you don't like it or it serves no purpose for you. If someone sells a 360 and someone else buys it, there was no change in the total number of net 360 sales. A good way to look at it would be to take total sales and minus out used sales/outstanding. This would give you a net realizable sales.

Also, if demand for the system is high, then everyone wants to get one. This means more used sales as well. Quantity demanded jumps may be different, depending on how much the system is sold for on the second hand market. Price drops aren't people wanting the system, just that now there is fewer hoops to jump in to get the product. So the used market wont naturally just increase with it. It will demand on what happens in that market.

I think you really have a wrong perception if you think the game industry kisses sony's ass.  They might not talk about the psp go but it's not like they are making ton's of games for it either.  Gamestop also mention wii being supply constrained as well.  Is it really hard for you to believe that demand for the ps3 is higher than what it is selling currently since there was a lot of big software released earlier this year.  Since they are selling less than both the wii and the 360 in the US an supply constrained I think that would be pretty much saying sony is having a big blunder and not covering it up.  Sony isn't makeing enough to meet demand while the other console makers aren't haveing the problem and selling more.

You have no idea. The fact that they ignore the PSP Go is a huge brown nose. Why point out that Sony's new endevor fail miserably. Good analysis would point that out and give reasons for and maybe tell others what not to do. Here they just ignore it. Of course, were the same thing to happen to Nintendo, they would plaster it everywhere. They also always put PS3 in a good light or as if it is doing amazing despite it's sales are lagging behind the others month after month (this has changed WW, but remains the same in the US last time I checked.) Look at a lot of reports and you'll always see them ignore the bad and praise the good. Example'

But let them spin away from the bigger story which is the disintegration of the Core Market. Final Fantasy XIII, where did it go? Gone. These games come out and then they disappear.

If this Industry had any sense of objectiveness, they would all be commenting on the sales of Super Mario Brothers 5. After all, they were having orgasms over the sales of Modern Warfare 2. Now that Modern Warfare 2 is fading away and Mario 5 keeps going, you would think they would comment on that. After all, Mario 5 is a 2d sidescroller where we were told that 2d sidescrollers could not sell. We were also told that the ways of the 2d sidescroller were lost to time, that people like me had to get used to ‘FPS galore’ rather than play games that resemble anything on the NES or SNES.

@epicurean:The reason I said that is it seems like girls gosiping. "OMG, did you see Wendy's dress!" "I know right!" That stuff. I'd rather have people say stuff to me dirrectly. Otherwise, you make good points.