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Forums - Sales Discussion - Official: 360 vs PS3 gap now 2.88m

Booh! said:
landguy1 said:
Booh! said:
landguy1 said:
Booh! said:
 


Sales of hardware (PS3): http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html .

Shipments  of hardware(PS3): http://www.scei.co.jp/corporate/data/bizdataps3_e.html .

Sales (PSP) : http://www.scei.co.jp/corporate/data/bizdatapsp_sale_e.html .

Shipments (PSP): http://www.scei.co.jp/corporate/data/bizdatapsp_e.html .

You just proved my point...  Sony does not disclose actual sales any longer, only shipped units.  They are not the same.
They don't disclose the terms of the sales(of course) they just call all units as sold.

Quite the opposite, but you'd have said that I proved your point anyway.

For those too lazy to follow the links, Sony reported shipments until Q4 2006  (31 March 2007) and started reporting sales of hardware since mid 2006. The numbers that are now provided by Sony are sales of hardware.

No, I agree that they state them as sales.  My point from the begining has always been how you calculate that number itself.  This is really a matter of how they do their accounting VS. how they make a general reporting of sold units(again, without disclosing the real terms of the sales).  I have NO expectation that Sony or any company would publicly disclose their terms to their suppliers or to their resellers.  That's why the debate of sell through matters.  If a company ships a bunch of units to retail(example), accounting wise they mark them as sold units.  Now, on their balance sheet they move it to another line that is now waiting for payment.  So, they officially call them sold, even though they are not yet paid for(standard practice for any manufacturer).  The only reason that i even started this whole thing about it mattering about sold to consumer relates to the actual income from those sales coming later(even though accounting wise - the manufacturer can claim the profit right away).  So, all the way back to the top on this is that even though sony(or M$ for that matter) claims to have shipped/sold 6.3 million units that quarter, that doesn't mean that they have seen the income from them yet-which is what really matters from an investor point of view.  True enough, that in any case for any of the consoles this generation, the units would be sold through to the consumer by the end of the next quarter anyway.  


Not really, shipped means shipped, sold means sold. The different account method was introduced by Sony in 2007 when PS3 was sold at a loss: counting sold units instead of shipped ones meant to delay by a month or two the loss derived from the sales of units, by delaying the formal delivery of the units to the retailers (and so their devaluation from the production price to the lower selling price).

Nintendo (for example) could not count sold units the same way Sony does, because in some countries Nintendo delivers its products through third party distributors.

Seeing as how we are debating accounting methods, we will continue to disagree even though we are actually agreeing.



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landguy1 said:
Booh! said:
landguy1 said:
Booh! said:
landguy1 said:
Booh! said:
 


Sales of hardware (PS3): http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html .

Shipments  of hardware(PS3): http://www.scei.co.jp/corporate/data/bizdataps3_e.html .

Sales (PSP) : http://www.scei.co.jp/corporate/data/bizdatapsp_sale_e.html .

Shipments (PSP): http://www.scei.co.jp/corporate/data/bizdatapsp_e.html .

You just proved my point...  Sony does not disclose actual sales any longer, only shipped units.  They are not the same.
They don't disclose the terms of the sales(of course) they just call all units as sold.

Quite the opposite, but you'd have said that I proved your point anyway.

For those too lazy to follow the links, Sony reported shipments until Q4 2006  (31 March 2007) and started reporting sales of hardware since mid 2006. The numbers that are now provided by Sony are sales of hardware.

No, I agree that they state them as sales.  My point from the begining has always been how you calculate that number itself.  This is really a matter of how they do their accounting VS. how they make a general reporting of sold units(again, without disclosing the real terms of the sales).  I have NO expectation that Sony or any company would publicly disclose their terms to their suppliers or to their resellers.  That's why the debate of sell through matters.  If a company ships a bunch of units to retail(example), accounting wise they mark them as sold units.  Now, on their balance sheet they move it to another line that is now waiting for payment.  So, they officially call them sold, even though they are not yet paid for(standard practice for any manufacturer).  The only reason that i even started this whole thing about it mattering about sold to consumer relates to the actual income from those sales coming later(even though accounting wise - the manufacturer can claim the profit right away).  So, all the way back to the top on this is that even though sony(or M$ for that matter) claims to have shipped/sold 6.3 million units that quarter, that doesn't mean that they have seen the income from them yet-which is what really matters from an investor point of view.  True enough, that in any case for any of the consoles this generation, the units would be sold through to the consumer by the end of the next quarter anyway.  


Not really, shipped means shipped, sold means sold. The different account method was introduced by Sony in 2007 when PS3 was sold at a loss: counting sold units instead of shipped ones meant to delay by a month or two the loss derived from the sales of units, by delaying the formal delivery of the units to the retailers (and so their devaluation from the production price to the lower selling price).

Nintendo (for example) could not count sold units the same way Sony does, because in some countries Nintendo delivers its products through third party distributors.

Seeing as how we are debating accounting methods, we will continue to disagree even though we are actually agreeing.


I disagree, we will continue to agree about disagreeing.



FinalEvangelion said:

Seriously, how many times are we going to hear about Sony overshipping or stuffing the channels everytime their quarters are better than people expected?

Meh, not any worst than the weekly "PS3 undertracked" claims.

(below is not directed to quoted post)

People like to cherry pick stuff to argue; especially things that will help their claims. Funny thing is when the discussion changes slightly to benefit something else they do not favor, they will flip flop.

Sony shipped more than MS; kinda obvious. They did sell more systems. Official gap,  depends on what numbers you want to argue.



TheNoobHolocaust said:

Seeing as how we are debating accounting methods, we will continue to disagree even though we are actually agreeing.


I disagree, we will continue to agree about disagreeing.

What you said....



Good numbers, I think the gap will close up heaps this year. And hopefully we will see a ps3 price drop.



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thismeintiel said:
Michael-5 said:
FinalEvangelion said:
thismeintiel said:

Good grief, how long is this thread/argument going to last?  How many times are we going to hear about channel stuffing?  Doesn't it wear any of you out having to make that excuse, as well as find justification for it, each quarter?  The cold hard face that none of you want to face is, SONY CANNOT STUFF THE CHANNEL 4 QUARTERS IN A ROW.  Yet, some of you still make the argument.  This is because of the other fact that Sony does not control how many PS3's stores have.  Retailers are in charge of their own stock, which includes how much they order.  Even if it's around the holidays and Sony is offering some special deal, retailers are still in charge of what they order.  If if they have millions of PS3's in their warehouse's collecting dust, as some of you seem to think, they will not order more.  And the only time they will return a product is if they and the seller make a special deal where if x amount of product is not sold, the seller will buy it back.  First of all, that's not going to happen to any console this gen, as they are all still selling pretty well and warrant new shipments.  And second, a retailer never wants to go through the trouble of shipping them back (and I would imagine the seller would require the retailerr to cover the cost of shipping.)  They would rather push the console out the door, which leads to the sales of games and accessories for that console, as that's where they make most of their profit.

You know, at first I was hoping that Sony would outship MS by a 1 or 2 by the end of this year or sometime in 2012, just so there would be no need to have threads like this anymore.  Unfortunately, I'm starting to see that even if PS3 outships the 360 by 5 mil, there will still be this argument.  And it will probably just start up again once the 720 and PS4 is released.  Oh well, I suppose.  That's just how the world turns.

Totally agree.

 

I demand a logical explanation from some folks on how Sony can overship / stuff the channels for 5 quarters in a row (since the slim).  My guess is I won't be getting any responses.

Don't think Sony is over-shipping, but MS needs to ship more. I think shipped figures can be misleading because the 360 sold a lot better then MS expected last fall, and shipped 360's aren't much more then units sold.

MS, just like Sony, can only ship as much as retailers are willing to buy.  Now, there may have been 360 shortages in early Jan for America, but if VGCs numbers are any indication, it looks like they have sorted them out in the past few weeks.

VGC says Sony shipped 2.30 million more PS3's in 2010 then 360's, but the difference in units sold is 790k. Shortages started mid december, and MS asked retailers to sell their January/February stock in order to meet holiday demands. Thus the week ending January 1st we already see shortages significant;y affecting sales.

MS can only ship as much as retailers are willing to buy, correct, but if they can't ship as many units as retailers request, then the difference in the number of units shipped will be misleading.

Sony outshipping 360's despite not selling as many PS3 units can only be attributed to two factors. An expected major jump in hardware (1.5 million if they were to sell as many units in relation to units shipped as MS), or MS experiencing shortages. Since MS specifically have outspoken and sent a message to reatialers about shortages, and seeing the holidays ending, I think the second case is in reality whats happening.

So if you add 1.5 million (as stated above, the difference in the number of PS3's shipped - sold compared to MS) to the number of shipped 360's. Then the shipped difference would be 4.38 million, which would imply MS is growing the gap between the 360 and PS3, and this is verified by stronger 360 hardware sales, despite the ongoing shortage (MS said until at least February, 360's will still be seeing shortages).



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Michael-5 said:
thismeintiel said:

MS, just like Sony, can only ship as much as retailers are willing to buy.  Now, there may have been 360 shortages in early Jan for America, but if VGCs numbers are any indication, it looks like they have sorted them out in the past few weeks.

VGC says Sony shipped 2.30 million more PS3's in 2010 then 360's, but the difference in units sold is 790k. Shortages started mid december, and MS asked retailers to sell their January/February stock in order to meet holiday demands. Thus the week ending January 1st we already see shortages significant;y affecting sales.

MS can only ship as much as retailers are willing to buy, correct, but if they can't ship as many units as retailers request, then the difference in the number of units shipped will be misleading.

Sony outshipping 360's despite not selling as many PS3 units can only be attributed to two factors. An expected major jump in hardware (1.5 million if they were to sell as many units in relation to units shipped as MS), or MS experiencing shortages. Since MS specifically have outspoken and sent a message to reatialers about shortages, and seeing the holidays ending, I think the second case is in reality whats happening.

So if you add 1.5 million (as stated above, the difference in the number of PS3's shipped - sold compared to MS) to the number of shipped 360's. Then the shipped difference would be 4.38 million, which would imply MS is growing the gap between the 360 and PS3, and this is verified by stronger 360 hardware sales, despite the ongoing shortage (MS said until at least February, 360's will still be seeing shortages).

What it seemed you are suggesting is that MS needs to just ship more consoles to help pull away from Sony.  What I am saying is that retailers have to order those consoles for MS to ship them, just like Sony.  Yes, MS started having shortages in January due to increased demand during the holiday season, but it was not a WW issue.  Only in a few regions, and mostly America.  But the shortages that MS were seeing in Jan will not affect 2010's results.  If anything it helped them because they had to ship more from their projected Jan shipment.  Plus, since MS was expecting the shortages to be straightened out by Feb (and the weekly sales in America suggest they pretty much already had by the end of Jan) then the only thing it will affect is seeing a larger shipment number in their Jan-Mar financial report.  Again, that increased number is not going to be a mil or more than what Sony posts in its financial report.



thismeintiel said:
Michael-5 said:
thismeintiel said:

MS, just like Sony, can only ship as much as retailers are willing to buy.  Now, there may have been 360 shortages in early Jan for America, but if VGCs numbers are any indication, it looks like they have sorted them out in the past few weeks.

VGC says Sony shipped 2.30 million more PS3's in 2010 then 360's, but the difference in units sold is 790k. Shortages started mid december, and MS asked retailers to sell their January/February stock in order to meet holiday demands. Thus the week ending January 1st we already see shortages significant;y affecting sales.

MS can only ship as much as retailers are willing to buy, correct, but if they can't ship as many units as retailers request, then the difference in the number of units shipped will be misleading.

Sony outshipping 360's despite not selling as many PS3 units can only be attributed to two factors. An expected major jump in hardware (1.5 million if they were to sell as many units in relation to units shipped as MS), or MS experiencing shortages. Since MS specifically have outspoken and sent a message to reatialers about shortages, and seeing the holidays ending, I think the second case is in reality whats happening.

So if you add 1.5 million (as stated above, the difference in the number of PS3's shipped - sold compared to MS) to the number of shipped 360's. Then the shipped difference would be 4.38 million, which would imply MS is growing the gap between the 360 and PS3, and this is verified by stronger 360 hardware sales, despite the ongoing shortage (MS said until at least February, 360's will still be seeing shortages).

What it seemed you are suggesting is that MS needs to just ship more consoles to help pull away from Sony.  What I am saying is that retailers have to order those consoles for MS to ship them, just like Sony.  Yes, MS started having shortages in January due to increased demand during the holiday season, but it was not a WW issue.  Only in a few regions, and mostly America.  But the shortages that MS were seeing in Jan will not affect 2010's results.  If anything it helped them because they had to ship more from their projected Jan shipment.  Plus, since MS was expecting the shortages to be straightened out by Feb (and the weekly sales in America suggest they pretty much already had by the end of Jan) then the only thing it will affect is seeing a larger shipment number in their Jan-Mar financial report.  Again, that increased number is not going to be a mil or more than what Sony posts in its financial report.

too bad, this debate always comes down to shipped vs. sold.  I thought that the VGchartz number was based on sold to consumers, and that is what we are debating.  Yet half the numbers in here are the shipped to retailer numbers.  

To thismeintiel's point, I don't think this is about M$ just shipping more units and that makes the difference up.  I think that it is more related to the fact that the actual number of units sold to consumers are one # and the Shipped to retail/resellers is another.



thismeintiel said:
Michael-5 said:
thismeintiel said:

MS, just like Sony, can only ship as much as retailers are willing to buy.  Now, there may have been 360 shortages in early Jan for America, but if VGCs numbers are any indication, it looks like they have sorted them out in the past few weeks.

VGC says Sony shipped 2.30 million more PS3's in 2010 then 360's, but the difference in units sold is 790k. Shortages started mid december, and MS asked retailers to sell their January/February stock in order to meet holiday demands. Thus the week ending January 1st we already see shortages significant;y affecting sales.

MS can only ship as much as retailers are willing to buy, correct, but if they can't ship as many units as retailers request, then the difference in the number of units shipped will be misleading.

Sony outshipping 360's despite not selling as many PS3 units can only be attributed to two factors. An expected major jump in hardware (1.5 million if they were to sell as many units in relation to units shipped as MS), or MS experiencing shortages. Since MS specifically have outspoken and sent a message to reatialers about shortages, and seeing the holidays ending, I think the second case is in reality whats happening.

So if you add 1.5 million (as stated above, the difference in the number of PS3's shipped - sold compared to MS) to the number of shipped 360's. Then the shipped difference would be 4.38 million, which would imply MS is growing the gap between the 360 and PS3, and this is verified by stronger 360 hardware sales, despite the ongoing shortage (MS said until at least February, 360's will still be seeing shortages).

What it seemed you are suggesting is that MS needs to just ship more consoles to help pull away from Sony.  What I am saying is that retailers have to order those consoles for MS to ship them, just like Sony.  Yes, MS started having shortages in January due to increased demand during the holiday season, but it was not a WW issue.  Only in a few regions, and mostly America.  But the shortages that MS were seeing in Jan will not affect 2010's results.  If anything it helped them because they had to ship more from their projected Jan shipment.  Plus, since MS was expecting the shortages to be straightened out by Feb (and the weekly sales in America suggest they pretty much already had by the end of Jan) then the only thing it will affect is seeing a larger shipment number in their Jan-Mar financial report.  Again, that increased number is not going to be a mil or more than what Sony posts in its financial report.

No you misunderstand, I'm not sugesting MS will pull away more sales then Sony, I'm saying that if you look at shipped consoles, you would infer the gap in sales is smaller then it actually is, and that thats because of shortages on the 360.

MS is selling to retailers every console they make, and for a month, they couldn't even meet demands. Thus the PS3 shipped number should be higher in proportionto sales.

Those shortages definatly affected shipped consoles in 2010. Sony did not sell every console they shipped in 2010, MS did. Ontop of that, sales were reduced, just like in the case of Wii launch in 2006, because not all locations were able to maintain an inventory. Severe shortages started just after christmas, meaning MS barely had enough consoles to meet holiday demands. Not was MS not able to meet demand in the final week of 2010, retailers were't able to meet demands, thats why 360 droped from a 120% of PS3 sales, to 80%. So shortages will definatly affect units shipped in 2010.

Basically, Ms didn't expect that Kinect would boost sales as much as it did. So they didn't initially ship as much as Sony. When Kinect released, 360 sales jumped significantly, and the number of consoles in retailers hands all started becoming sold out. MS quickly produced more consoles, but wasn't able to meet demand. So despite outselling the PS3 in the second half of 2010, the number of shipped units is low because MS simply didn't expect to sell so well and sold out. Retailers still want 360's, but the problem is that MS cannot produce them fast enough.

Sony on the other hand had a high goal of selling 15 million PS3's in the 2010 fisical year. They produced PS3's accordingly and shipped to demand. MS just didn't 360s and when the holidays hit they were unprepared. Thats what shortage is, not being able to meet demands.

LOL at only a few regions. The US and UK make up more then 50% of the global video game market, and 70% of the 360 market. Shortages in 70% of the effected market is hardly a few regions.

So in summary, my point is that judging the gap between PS3 and 360 by units shipped is misleading. Although MS is now meeting basic console demands, retailers still have low inventory's, where PS3's are stocked up since there was no PS3 shortage. You have to judge the gap by units sold.



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Anything is still possible especially a long term race like this one.

But still in any case microsoft can still give themselves a good pat in the back for doing a good job so far when people expected them to stay a permanent 3rd this gen.