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Forums - Sony - PS2 vs PS3 revenue on hardware

Before I go into fanboy mode, im a little unclear on what's going on with the PS4.  The wiki states that its being released around the same time as the Nintendo Project Cafe.  But isn't the PS3 supposed to last another 6 years?  That was half the point of the system right?  That it would last for 12 years or something where the others would need replacements in 4. 

As far as the strength of the PS3 is right now im not so sure it works in Sony's favor all that much.  I read the wiki on what's been going on these past few years and I laughed.  They friggen lost the private key for encrypting software....  There is literally no piracy protection on the PS3 anymore. Screw MGS4, FF13, Uncharted, GTA4, RE5, etc the private key is like a game which tops all those games being exclusive combined.  Pirates dream system that they can do whatever the hell they want on.  They can't even fix that, its permanately screwed.  I gotta wonder if that will affect future consoles too. Seriously Sony screws up on piracy protection EVERY TIME!!!



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theprof00 said:
dsage01 said:


This statement you made is much too simple. Your ignoring the fact that it took $813 to make a PS3 back in 2006 and it was selling at around $600. Add in what just happened with PSN and the factor that PS3 was losing money until 2009. PS2 was a success from day 1 and making profits ever since. But there's no doubt that PS3 will surpass 360 and maybe even the Wii. But making more profits than the PS2 seems impossible at the momment

I think this is the big problem everyone is having with this. Is there a point at which everyone stops reading?

When did I ever say anything about profit?

I even had an intro saying, "how far has the ps3 sunk?". It has nothing to do with sony profits, but with ps3 in the eyes of the consumer. The consumer apparently still feels that playstation is valuable, at least to the same value of ps2.

That is my point.

Okay I get it now. I never saw that in the OP though.



DarkD said:

Before I go into fanboy mode, im a little unclear on what's going on with the PS4.  The wiki states that its being released around the same time as the Nintendo Project Cafe.  But isn't the PS3 supposed to last another 6 years?  That was half the point of the system right?  That it would last for 12 years or something where the others would need replacements in 4. 

As far as the strength of the PS3 is right now im not so sure it works in Sony's favor all that much.  I read the wiki on what's been going on these past few years and I laughed.  They friggen lost the private key for encrypting software....  There is literally no piracy protection on the PS3 anymore. Screw MGS4, FF13, Uncharted, GTA4, RE5, etc the private key is like a game which tops all those games being exclusive combined.  Pirates dream system that they can do whatever the hell they want on.  They can't even fix that, its permanately screwed.  I gotta wonder if that will affect future consoles too. Seriously Sony screws up on piracy protection EVERY TIME!!!

What wiki? If you are using wikipedia for info on the ps4, then.... just leave....



"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth." -My good friend Mark Aurelius

Alright here, http://ps4info.com/ps4-release-date/ they say late 2012 there.  There are numerous sites but it all sounds sketchy because I can't find anything solid.  That's why im asking about that.  http://www.ps4playstation4.com/ps4-release-date-countdown-begins this one says the same thing late 2012

The piracy thing I know to be true because a friend of mine installed linux on his PS3.  I just didn't know how bad piracy got on the PS3. 

http://www.gamesradar.com/f/why-the-latest-ps3-crack-is-disastrous-for-sony-and-for-gamers/a-20110107111357213003

and theres a reliable link for the private key thing. Like I said, PS3 could be selling well simply because of this hack.  Its such a thorough hack that sony can't counter it in any way shape or form. 



Slimebeast said:

Bad comparison. In last gen $199 was the sweet spot but in this gen $299 is the sweet spot.

TV sets and PCs have dropped in price in the last decade but for some other electronics devices people are willing to pay a lot more money nowadays because it gets them higher value.

5 years ago people bought mobile phones for perhaps $100-$200, now they are willing to get one for $450-600.

Gaming is more important to people now than in last gen so they are willing to pay more and u get movies and other features on your consoles now, u get the whole online experience, longer life-span etc.

In last gen a console was seen as a toy. Nowadays it's seen as an essential entertainment device.

 

prove any of that with real evidence and I'll take it into consideration. ANyone can just say words and have them sound true. Wii Has sold 100% of it's consoles under 250$.



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RolStoppable said:

If you are doing such a weird comparison for the sake of showing the strength of the PlayStation brand (at least that's what I think that you are trying to say), then you should look at the complete picture. Your point seems to be that consumers still spent as much money on the PS3 as they did on the PS2 with the most significant difference being the number of consumers. It shrinked, but that was offset by higher spending of each individual. Therefore, demand for the PS3 is high and another price cut will enable it to sell 20m or more consoles in a year.

Now I am not sure why you even bother with so many numbers, you could have just said something like "80 % of all console sales happen at $199 or less" and then you wouldn't have come across as confusing.

So what is the complete picture? Doing the same comparison for Xbox vs. 360 and Gamecube vs. Wii as well and applying the same (twisted) logic as you did to the PS2 vs. PS3 comparison. The result is going to be nothing short of mindboggling.

actually, it works perfectly. More money spent on hardware for each of those, and those brands are stronger than they were. how is it mindboggling? Demand increased on both. Demand on ps3 is level with the ps2.

I don't have the data to show that X% sales happen at a certain price. I do have this top line growth, which in business is still very much important.



"Haters, if you can figure out why, then the day is yours. For me, I think it's because the playstation product, for the consumer, is healthy. And I think it will go on to sell 24M when price drops to 200$. Especially in a year as packed with hits as this one. I think their "top line growth" is just as important."

 

Fact is it wasn't healthy for the first few years.  Not until the release of the slim with price drop did PS3 actually start picking up.  Demand was pretty low the first few years and the numbers show it.  Very few people want to drop 600 dollars on a video game system even if it included Blu-ray. 



RolStoppable said:
theprof00 said:
RolStoppable said:

<lots of cool stuff theprof00 didn't care about>

So what is the complete picture? Doing the same comparison for Xbox vs. 360 and Gamecube vs. Wii as well and applying the same (twisted) logic as you did to the PS2 vs. PS3 comparison. The result is going to be nothing short of mindboggling.

actually, it works perfectly. More money spent on hardware for each of those, and those brands are stronger than they were. how is it mindboggling? Demand increased on both. Demand on ps3 is level with the ps2.

I don't have the data to show that X% sales happen at a certain price. I do have this top line growth, which in business is still very much important.

But that defeats your conclusion. You say that another price cut is going to push the PS3 easily ahead of the 360, because the PS brand is just as strong as last generation. By the same logic, the Xbox brand is far stronger than last gen, so another 360 price cut should ensure that it stays ahead for quite a while longer. Or do pricecuts only do wonders for the PS brand?

ah, I see. Yes, I do not mean to say that price-cuts = sales. I'm talking about in 3 months, ps3 will have been at 299$ for the same amount of time the ps2 was. And if we want to look at an inflation-based example with ps2 at 199$, it's still outselling it.

I don't have any evidence showing that price cuts improve sales. I have some factoids that help me to a conclusion though. In it's 4th year ps3 sales were higher than ever, ps2's highest sales were in its third year (doubling its first and second years) at a price of 199$. When it dropped to 179$ sales partially went down annually, same at 149, and same at 129.

Looking at all the data together it SUGGESTS that sales will increase. Using inflation, value has gone down some 30%, so we're looking at 260$ is the equivalent of 199$ in ps2 days.

Lastly, don't you think you're simplifying my conclusions a bit much? You know about market saturation, and price cuts (and how they're meant to maintain, not increase sales). But I do appreciate the opportunity to clarify.

Price cut demand does not equal higher sales. It CAN sometimes mean that, but that was not what I was trying to convey. I'm saying that given the equal demand and brand strength to the ps2, cutting the price in equivalence to the ps2 should produce the same sales as the ps2.



RolStoppable said:
theprof00 said:

ah, I see. Yes, I do not mean to say that price-cuts = sales. I'm talking about in 3 months, ps3 will have been at 299$ for the same amount of time the ps2 was. And if we want to look at an inflation-based example with ps2 at 199$, it's still outselling it.

I don't have any evidence showing that price cuts improve sales. I have some factoids that help me to a conclusion though. In it's 4th year ps3 sales were higher than ever, ps2's highest sales were in its third year (doubling its first and second years) at a price of 199$. When it dropped to 179$ sales partially went down annually, same at 149, and same at 129.

Looking at all the data together it SUGGESTS that sales will increase. Using inflation, value has gone down some 30%, so we're looking at 260$ is the equivalent of 199$ in ps2 days.

Lastly, don't you think you're simplifying my conclusions a bit much? You know about market saturation, and price cuts (and how they're meant to maintain, not increase sales). But I do appreciate the opportunity to clarify.

Price cut demand does not equal higher sales. It CAN sometimes mean that, but that was not what I was trying to convey. I'm saying that given the equal demand and brand strength to the ps2, cutting the price in equivalence to the ps2 should produce the same sales as the ps2.

The problem with this is that the PS brand isn't as strong as it used to be. If you have less consumers than before, then obviously your brand has weakened even if the consumers you maintained are now spending more than before. That's not even factoring in that the PS3 is available in more countries than the PS2 was at the same point in its life, so the loss in brand strength is actually bigger than the numbers in your original post make it out to be.

In this specific case, you are absolutely saying that a $100 price cut for the PS3 will increase sales drastically, anywhere between 30 to 60 % over the course of one year. And this is supposed to happen this late in the system's lifecycle. If you had said a 10-20 % increase is bound to happen, I wouldn't have much of a problem with that. And if VGC had any somewhat interesting threads at the moment, I wouldn't have posted in your thread in the first place.

@299$, ps3 customers > ps2 customers
fewer consumers, or more consumers holding off?

Anyway, I understand your point about the numbers. It's all conjecture after all. Why are you getting so upset, like this thread is a service that you've been paying for, and now regret?

20% or 60%. I just think it's interesting that at the same price, ps3 is ahead by several millions of units. I just did a simple cut and paste. If that's the end of the world, and completely noobish thing to do, then I'll take your point. I concede that I did that noobish thing.

I still think it will do it.



I think what these numbers prove is that the PS3 has about as much demand for it as the PS2, but price has always been the thing holding it back.  And being the most expensive console during a recession (a full $200 more than the 360) didn't help, either.  But now that the price is reasonable, the PS3 is really seeing the best years of its lifetime.  Once it does hit $199, sales are really going to explode.