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Forums - Sales Discussion - 5.5 Million PS3s Shipped

albionus said:

Something to consider, if I recall (and I'm going by memory so I could easily be mistaken) the Dreamcast and GameCube both had to halt production after they had only sold, to consumers to make it clear to certain folk, 5-6 million with 5-6 million consoles in various warehouses. 6 months in and Sony is half way to that situation.


That's so true. It's tough to cut manufacturing costs if you aren't manufacturing in large quantaties. According to these figures there are currently circa 2M PS3s in circulation that haven't found a home yet so it's fair to assume Sony have cut back their manufacturing output.

Of course, the cost of components will trend downwards anyway, but it's basic economics that the more of a product you buy the less you pay per unit.



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Ha this thread is funny. It all boils down to what Sony thinks of as customers. I know that all companies think if 'customer' as retailers. As retailer buy the product from them. We, as in you (larry, ioi, etc) and me are 'end users'. For a company like Dell or HP we can be both end users and customers as we can buy directly from them. But you cannot buy a PS3 directly from Sony, and thus you are not Sony's customer, your are walmart's or gamestop's customer. So, when Sony or MS or any other company that talks about selling anything they are talking about the retailer. 'Shipped from manufacturing base' is pretty clear to me. All of these companies have a manufacturing plant and warehousing. They are not the same building and usually not the same locations. Sony is simply saying they built and moved 5.5m units to warehouses. They also sold 3.6m units to their various retail customers around the world. Then we have NDP and other sales tracking companies that show us that about 3m end uses actually purchased a PS3 from those retailers. I mean c'mon how could it be different. Look and tally up what NDP claims for NA, then add to that what numbers came out of various sales tracking in EU, and Japan. It all comes out to about 3m, not anywhere near 3.6m. This is the same stupid arguement that people had when MS said they sold 10.4m through December of 2006. They sure did...to walmart, gamestop,amazon, etc.



SpaceJase said:

According to these figures there are currently circa 2M PS3s in circulation that haven't found a home yet so it's fair to assume Sony have cut back their manufacturing output.


1.  "Tokyo - Sony said on Wednesday that it aims to ship 11m PlayStation 3s worldwide this year, ramping up competition against its rivals after missing its recent targets." http://www.fin24.co.za/articles/companies/display_article.aspx?Nav=ns&lvl2=comp&ArticleID=1518-1783_2114249

 2. "Perhaps that's why the company chose to stick to a more conservative sales forecast of 11 million units this year."                                         http://www.businessweek.com/globalbiz/content/may2007/gb20070516_346923.htm



superchunk said:
This is the same stupid arguement that people had when MS said they sold 10.4m through December of 2006. They sure did...to walmart, gamestop,amazon, etc.

Exactly. Which is why, in early March, I could not find a 360 manufactured later than 11/06. I searched seven or eight stores. The NEWEST console I found was manufactured in 11/06. There were many even older than that.

Sony is doing the same thing.




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So thier projected sales to retailers of 11m this year pretty much right on with my predictions. 11m to retailers by jan1 2008 + the 1.5m sold in 2006 means I am pretty close with a prediction of 11m sold to end users by jan1 2008. I did say previously that my predictions are being generous to each console. I expect to be a little high.



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Do you guys reckon Sony have already agreed minimum manufacturing quotas with their suppliers and are unable to make drastic cutbacks until the terms of these contracts are fulfilled?



SpaceJase said:
Do you guys reckon Sony have already agreed minimum manufacturing quotas with their suppliers and are unable to make drastic cutbacks until the terms of these contracts are fulfilled?

1.  "Tokyo - Sony said on Wednesday that it aims to ship 11m PlayStation 3s worldwide this year, ramping up competition against its rivals after missing its recent targets." http://www.fin24.co.za/articles/companies/display_article.aspx?Nav=ns&lvl2=comp&ArticleID=1518-1783_2114249

 2. "Perhaps that's why the company chose to stick to a more conservative sales forecast of 11 million units this year."                                         http://www.businessweek.com/globalbiz/content/may2007/gb20070516_346923.htm



I think they were just afraid to post lower numbers than they already achieved. That would be interpreted as a sign of defeat if they couldn't improve their numbers. It's the same stubborn pride that led to the $600 price tag.



FishyJoe said:
I think they were just afraid to post lower numbers than they already achieved. That would be interpreted as a sign of defeat if they couldn't improve their numbers. It's the same stubborn pride that led to the $600 price tag.

No, Sony is going to lower the PS3 price by $100.00 during E3 and release SOCOM 4 and Killzone 2 in the Fall.



http://www.businessweek.com/globalbiz/content/may2007/gb20070516_346923.htm "One hope is that Sony's new games chief, Kaz Hirai, who replaces Ken Kutaragi in June, can juice the lineup of PS3 games fast enough to avoid cutting console prices. That's crucial because software developers pay licensing fees to Sony for the right to create PS3 games, so every disk and download sold adds to Sony's bottom line." That's hilarious. Is this poor guy expected to wave a magic wand and PS3 titles just appear out of thin air? It was a decent article up to that point.