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Forums - Sales Discussion - 5.5 Million PS3s Shipped

ioi said:  The remaining 1.9 million were either sitting in warehouses or en route to stores, leaving as much as $1.1 billion in inventory.


"The remaining 1.9 million were either sitting in warehouses or en route to stores, leaving as much as $1.1 billion in inventory."               http://www.businessweek.com/globalbiz/content/may2007/gb20070516_346923.htm

En route to stores = shipped to retailers = sold.



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To be fair to Larry the following is on the nail. "3.6 m of them made it to the stores by march 31,2007." Sony seems to count their sales when they fulfil them (i.e. get them into their retailers hands.) So we agree that number was 3.6M at March 31. I can't see anything which says they have had the other 1.9 Million ordered by retailers though. I mean, they have definitely manufactured 5.5 Million. I haven't seen anything to suggest those 1.9 Million have been bought by retailers.



larry said:
gentian said:
You know what, I'm going to go with the Chief Financial Officer of Sony's quote (and a financial journalists reporting of it.) They've made 5.5 Million and have sold (and shipped to retailers) 3.6 Million. Sony might conceivably think that their customers are people like Walmart, Amazon etc, not you and me.

SONY sold 5.5 m units to retailers.

3.6 m of them made it to the stores by march 31,2007.

the remaining 1.9 in accounting terms are referred as FREIGHT IN TRANSIT...which means that they are being purchased by the retailers . The purchase is considered from the the time the freight reaches the retailers/stores.


Fine, and of the 3.6m that made it to stores only around 3m were sold to customers.

Are we agreed now? 



Sir Cedric: Yes, En Route To Stores = sold (or at least ordered.) But nobody outside Sony seems to know what percentage of the 1.9 Million is ordered and what percentage has been made in the hope of future orders. It COULD be all 1.9 million (as they don't count the sale till it's fulfilled.) But it could be 0. Probably somewhere in between.



http://digg.com/gaming_news/Sony_announce_financial_results_5_5_million_PS3s_shipped_3m_sold#c6722168



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larry said:

SONY sold 5.5 m units to retailers.

3.6 m of them made it to the stores by march 31,2007.

the remaining 1.9 in accounting terms are referred as FREIGHT IN TRANSIT...which means that they are being purchased by the retailers . The purchase is considered from the the time the freight reaches the retailers/stores.


Slowest Freight Ever ...



gentian said:
But nobody outside Sony seems to know what percentage of the 1.9 Million is ordered and what percentage has been made in the hope of future orders.

"To Sony, shipped has always meant 'sold' and shipped to retailers,'" Karakker notes. "Microsoft views 'sold' as what has been sold to retailers but could be sitting on pallets in warehouses or stacked on store shelves. 'Sold' to Sony has always meant what the consumer has actually purchased."               http://www.gamepro.com/news.cfm?article_id=93548



Sir Cedric said:
gentian said:
But nobody outside Sony seems to know what percentage of the 1.9 Million is ordered and what percentage has been made in the hope of future orders.

"To Sony, shipped has always meant 'sold' and shipped to retailers,'" Karakker notes. "Microsoft views 'sold' as what has been sold to retailers but could be sitting on pallets in warehouses or stacked on store shelves. 'Sold' to Sony has always meant what the consumer has actually purchased." http://www.gamepro.com/news.cfm?article_id=93548


I don't know if I'd put too much stock into what this guy says. He's not in the upper levels of management, just a pr guy talking to a reporter. 

Oneda is one of the big guns at Sony and anything he says at an official earnings conference can have serious legal implications if incorrect. 



I want to change the subject a bit. I'm impressed they managed to make 5.5 million of these things, given the problems towards the end of 2006. At that time I don't think people thought they could get anywhere close to their 6 Million goal. I mean, Nintendo only sold 5.84 million and probably had very small inventory, so only made a few hundred thousand more of the console that is meant to be much easier to make. So Kudos to Sony for that.



who cares for karakker? just read the f***ing Sony financial report on page 5. http://www.sony.net/SonyInfo/IR/financial/fr/06q4_sony.pdf "Production shipments of hardware and software are counted upon shipment of the products from the manufacturing bases. Sales of such products are recognized when the products are delivered to customers." shipped = left the factory, either sold or unsold sold = shipped to retail And shipped to retail does not mean that it arrived at retail. This depends on the negotiated shipping conditions. Luckily, alls this will be kind of moot in a year, when 2 million systems more or less do not make a big difference anymore.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.