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Forums - Sales - PS3 Generates 40% of Software Sales in the Middle East

Didnt know China have consoles banned? Why? Because not long ago only Japan was making them?



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postofficebuddy said:
Immortal said:

I can't see why Sony wastes its time like this. Overall, the profit margin must be very small in developing markets like these. Whenever they become worth distributing to, if Nintendo or any other competitor has a more appealing product than Sony (as is the case with the Wii and the PS3), it will just rush in and take over the markets. What's invested here could more profitably be invested in the developed countries where the video game market hasn't achieved its full potential.


PS2 has sold over 5 million in the Middle East and another 5 million in Brazil. You think that's not worth-wile? Nintendo simply doesn't have the infrastructure necessary to expand into those markets. Why do you think the DS has sold such a small amount in comparison despite beating the PS2 in the rest of the world?

User base wise, of course. That's enormous. But what about the software sold? And the profits? Honestly, selling to developing markets requires you to reduce the profit made on each unit severely. That 10 million probably doesn't amount to as much in profit as 1 million consoles sold would in the US, for example. And by the way, I realize that Nintendo doesn't have the infrastructure to expand there. That's what I meant by "worth distributing to". 5 million Wiis sold in Brazil wouldn't bring enough profit to break even on the cost of distributing them over such a large territory. With Sony, I'm guessing that the established distribution system for its other products is used for the PSs and it just adds on to the overall profit.



 

“These are my principles; if you don’t like them, I have others.” – Groucho Marx

OntheEdgeofthemirror said:
Immortal said:

I can't see why Sony wastes its time like this. Overall, the profit margin must be very small in developing markets like these. Whenever they become worth distributing to, if Nintendo or any other competitor has a more appealing product than Sony (as is the case with the Wii and the PS3), it will just rush in and take over the markets. What's invested here could more profitably be invested in the developed countries where the video game market hasn't achieved its full potential.

Sony has been selling to more developing markets then anyone else for a long time now, so ps2 has a strong standing, though with ps2 piracy was rampant but with the ps3 piracy is non-existent, so Sony managed to turn several countries that were almost exclusively pirated software into ones that bought legitimate software, and since the other two major companies don't waste their time as much and are much easier to pirate ps3 is the most appealing product, most of the countries don't have live, and paying a year for online would be horrible, and without the hype and advertisement wii isn't really catching on, and even if it did, they would probably just get a move now, so Sony pretty much owns dozens of countries which are constantly growing, not to mention the ps3 will help them establish blu ray disks in those areas and HD-tvs as they grow, so all and all it's worth it in the long run

Microsoft and Nintendo aren't really trying to do much in those markets then, are they? When they do (and I'm talking much later, when this brand loyalty might give Sony a serious advantage and India and Brazil are the second and third largest economies of the world), if they have a product that the rest of the world likes more than Sony's, I seriously doubt Sony's devotion to these markets will pay off.



 

“These are my principles; if you don’t like them, I have others.” – Groucho Marx

Immortal said:
OntheEdgeofthemirror said:
Immortal said:

I can't see why Sony wastes its time like this. Overall, the profit margin must be very small in developing markets like these. Whenever they become worth distributing to, if Nintendo or any other competitor has a more appealing product than Sony (as is the case with the Wii and the PS3), it will just rush in and take over the markets. What's invested here could more profitably be invested in the developed countries where the video game market hasn't achieved its full potential.

Sony has been selling to more developing markets then anyone else for a long time now, so ps2 has a strong standing, though with ps2 piracy was rampant but with the ps3 piracy is non-existent, so Sony managed to turn several countries that were almost exclusively pirated software into ones that bought legitimate software, and since the other two major companies don't waste their time as much and are much easier to pirate ps3 is the most appealing product, most of the countries don't have live, and paying a year for online would be horrible, and without the hype and advertisement wii isn't really catching on, and even if it did, they would probably just get a move now, so Sony pretty much owns dozens of countries which are constantly growing, not to mention the ps3 will help them establish blu ray disks in those areas and HD-tvs as they grow, so all and all it's worth it in the long run

Microsoft and Nintendo aren't really trying to do much in those markets then, are they? When they do (and I'm talking much later, when this brand loyalty might give Sony a serious advantage and India and Brazil are the second and third largest economies of the world), if they have a product that the rest of the world likes more than Sony's, I seriously doubt Sony's devotion to these markets will pay off.

Again establishing blu ray in those countries alone would be worth the effort, it's not like it's costing them anything they are making a profit, and the loyalty carried from ps2 to ps3 even with the larger price, I think it will give them a massive advantage, that it would take years for MS or nintendo to even get a piece of 



Loyalty carried them? It's too early to say that. PS3 numbers aren't even approaching PS2 numbers in these countries yet. Also, the whole "it'll take ages to establish a new brand" seems logical, but never works. All SNES Americans and Japanese jumped onto the PS1. Likewise, Europeans supporting Sega abandoned their favoured console manufacturer easily. This gen, plenty of PS2 owners went for Wii and 360 instead. Considering Nintendo had moved next to nothing in Europe till now, you'd the Wii would bomb there, instead, it's proving to be the Wii's biggest region for plenty of weeks.



 

“These are my principles; if you don’t like them, I have others.” – Groucho Marx

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Immortal said:

User base wise, of course. That's enormous. But what about the software sold? And the profits? Honestly, selling to developing markets requires you to reduce the profit made on each unit severely. That 10 million probably doesn't amount to as much in profit as 1 million consoles sold would in the US, for example. And by the way, I realize that Nintendo doesn't have the infrastructure to expand there. That's what I meant by "worth distributing to". 5 million Wiis sold in Brazil wouldn't bring enough profit to break even on the cost of distributing them over such a large territory. With Sony, I'm guessing that the established distribution system for its other products is used for the PSs and it just adds on to the overall profit.

Why does selling to developing markets require you to reduce profit severely?  They aren't selling them in the slums of Rio for 10 Reals, they're being sold to the people with money.  Iirc, according to users of this site from Brazil, it's actually cheaper for them to import consoles and games from other countries(like the USA).  So I guess they make a similar amount of profit there as in other markets.



Nomad Blue said:
Immortal said:

User base wise, of course. That's enormous. But what about the software sold? And the profits? Honestly, selling to developing markets requires you to reduce the profit made on each unit severely. That 10 million probably doesn't amount to as much in profit as 1 million consoles sold would in the US, for example. And by the way, I realize that Nintendo doesn't have the infrastructure to expand there. That's what I meant by "worth distributing to". 5 million Wiis sold in Brazil wouldn't bring enough profit to break even on the cost of distributing them over such a large territory. With Sony, I'm guessing that the established distribution system for its other products is used for the PSs and it just adds on to the overall profit.

Why does selling to developing markets require you to reduce profit severely?  They aren't selling them in the slums of Rio for 10 Reals, they're being sold to the people with money.  Iirc, according to users of this site from Brazil, it's actually cheaper for them to import consoles and games from other countries(like the USA).  So I guess they make a similar amount of profit there as in other markets.

Mind you, I may sound all high and mighty, but I don't actually know anything, :P. I'm just guessing here.

Anyway, countries like Brazil and India probably don't even have that many people to sell consoles to at the same rate as the US or Europe. I recall that PS2s were sold around the price of 5000 Rs. in India quite recently. That's a little over 100 dollars. And it's around such a price point that PS2 flourished. I doubt they make as much money off that as they did off the PS2's prime years in US sellling at 300 bucks. The reason Brazillians import is probably because of taxes. I don't know in which thread, but I recall someone mentioning ridiculous taxes on video games in Latin American countries.



 

“These are my principles; if you don’t like them, I have others.” – Groucho Marx

Sony has more acess to those areas Nintendo or Microsoft can't reach.



Above: still the best game of the year.

OntheEdgeofthemirror said:
stopstopp said:
fallen said:
boredoutofskull90 said:

Sony owns pretty much all of the developing countries markets its one of the reasons why VG chartz always undertracks ps3 100 small markets adds up, VG pretends they don't exist rather then just taking an guess (aka estimate) and it's not like they haven't already admitted all the numbers are more or less guesswork, so why are the so afraid to give ps3 numbers it probably has, are they not allowed to go over or something, they were over on 360 tons of times anyways yeah 


the only people who release numbers saying ps3 sells so good is sony. see any problem? not npd not chart track not gfk, not media create not vgchartz...

 

Oh btw the article is wrong, there is piracy on Ps3 now...


Unless you are referring to hte PSjailbreak, which was patched, I have no idea what you are referring to in terms of piracy.

jailbreak can kinda be used for piracy, it works on older versions and can even downgrade to them, so theoretically you can use it to play burned of anything but new releases but with the large file size combined with the fact blu rays are expensive for the average person and almost no1 has a blu ray burned and the fact you can't go online almost no1 pirates games for ps3, you need a strong internet connect to download it in the first place, a good blu ray burned, blu ray disks, jail break and can't go online, the sum of it is it's just not worth the hassle with wii and 360s right there not to mention pc so piracy is currently kinda possible on ps3 no1 bothers 


Uh... you don't need to burn the games on a blu-ray disc... in fact, a burned blu-ray disc doesn't even work on the PS3 even if it's been jailbroken.

You either download a game and copy it directly to the PS3's internal HDD, or to an external HDD (not all games work on external HDDs as far as I know). Some people are even selling DVDs (yes, DVDs) with the "backed up" games so people copy the files to their PC and then copy them to their PS3 without downloading anything.

There also are people selling PS3 "PLUS" Jaibreak "PLUS" 500GB/1TB external HDDs full of games... and the number of people selling these "bundles" (LMAO xD) are increasing  waaay too fast.

I don't know if this happens in the middle east too...

But yeah, piracy on PS3 is till not at 360's level... at least not yet xD

 

EDIT: I forgot the "plus" symbol doesn't work anymore on this site... so I changed the plus symbol for the word plus in it's place.



A banner stolen from some site xD

Release Final Fantasy Versus XIII nowwwwwwwwww!!! lol :P

Jdevil3 said:
OntheEdgeofthemirror said:
stopstopp said:
fallen said:
boredoutofskull90 said:

Sony owns pretty much all of the developing countries markets its one of the reasons why VG chartz always undertracks ps3 100 small markets adds up, VG pretends they don't exist rather then just taking an guess (aka estimate) and it's not like they haven't already admitted all the numbers are more or less guesswork, so why are the so afraid to give ps3 numbers it probably has, are they not allowed to go over or something, they were over on 360 tons of times anyways yeah 


the only people who release numbers saying ps3 sells so good is sony. see any problem? not npd not chart track not gfk, not media create not vgchartz...

 

Oh btw the article is wrong, there is piracy on Ps3 now...


Unless you are referring to hte PSjailbreak, which was patched, I have no idea what you are referring to in terms of piracy.

jailbreak can kinda be used for piracy, it works on older versions and can even downgrade to them, so theoretically you can use it to play burned of anything but new releases but with the large file size combined with the fact blu rays are expensive for the average person and almost no1 has a blu ray burned and the fact you can't go online almost no1 pirates games for ps3, you need a strong internet connect to download it in the first place, a good blu ray burned, blu ray disks, jail break and can't go online, the sum of it is it's just not worth the hassle with wii and 360s right there not to mention pc so piracy is currently kinda possible on ps3 no1 bothers 


Uh... you don't need to burn the games on a blu-ray disc... in fact, a burned blu-ray disc doesn't even work on the PS3 even if it's been jailbroken.

You either download a game and copy it directly to the PS3's internal HDD, or to an external HDD (not all games work on external HDDs as far as I know). Some people are even selling DVDs (yes, DVDs) with the "backed up" games so people copy the files to their PC and then copy them to their PS3 without downloading anything.

There also are people selling PS3 "PLUS" Jaibreak "PLUS" 500GB/1TB external HDDs full of games... and the number of people selling these "bundles" (LMAO xD) are increasing  waaay too fast.

I don't know if this happens in the middle east too...

But yeah, piracy on PS3 is till not at 360's level... at least not yet xD

 

EDIT: I forgot the "plus" symbol doesn't work anymore on this site... so I changed the plus symbol for the word plus in it's place.

Oh so thats how it works, still jailbreak is relatively new and already can't go online or work for any new releases, and HDD that big still cost alot of money, it's not like 360 or wii where a person can just pick up a game for 2 bucks so that would hurt piracy alot, and most people in those countries still don't have the speed to download games