Forums - Sales Discussion - PS5 Revises down production - *Update* Debunked

WoodenPints said:
So now that is debunked we are back with the 10m produced consoles by March 2021 which is slightly short of what they produced for the PS4 in the same period and still a good number.

That was also rumor, there is no official projection from Sony.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

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Produced does not equal shipped
Produced means either already having been shipped or prepared for shipping
Shipped does not equal sold
Shipped are consoles either waiting on shelves to be sold or those that have already been sold
Produced > Shipped > Sold

At least this is my understanding.

Last edited by badskywalker - 5 days ago

badskywalker said:

Produced does not equal shipped
Produced means either already having been shipped or prepared for shipping
Shipped does not equal sold
Shipped are consoles either waiting on shelves to be sold or those that have already been sold
Produced > Shipped > Sold

At least this is my understanding.

True, but produced to shipped would be couple days or at most like couple weeks difference. So produced means almost the same as shipped very shortly. Even shipped to sold is quite close as well, couple months difference usually.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

DonFerrari said:
WoodenPints said:
So now that is debunked we are back with the 10m produced consoles by March 2021 which is slightly short of what they produced for the PS4 in the same period and still a good number.

That was also rumor, there is no official projection from Sony.

hmm I thought that was an official projection, I guess when everyone runs with it so much you just end up thinking it's fact.



WoodenPints said:
DonFerrari said:

That was also rumor, there is no official projection from Sony.

hmm I thought that was an official projection, I guess when everyone runs with it so much you just end up thinking it's fact.

I think the closest we got from an official reveal was the 5M for the end of year. Don`t remember the origin quite fully, but was someone from Sony saying it, so not an annonymous source. Will try to find it.

Yep looked around, but the 5M was also "sources within the industries"



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

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Marth said:

Production shipment is a shipment from chip production to device assembly.

No, this is shipping components. You are a little confused here (and there and everywhere...)

Production shipment is shipping the product. Where and when and why the components are produced and shipped is privvy to the manufacturer of the product, not the manufacturers of the components.

Nowadays, everyone tries to follow the "Just in time" philosophy. This means components are shipped to the assembly plant when they are needed (this saves a lot of expensive storage costs). The downside of this philosophy is that it can stall your entire production (we have seen that a few years ago when an earthquake/flood in Malaysia stopped/seriously limited  the supply of hds to the console assemblers).

As for that Bloomberg bullshit article, I told it early in this (and in another thread) that it is bullshit.



When did mass production begin?



Otter said:
When did mass production begin?

We don`t have real info on that. But possibly around June/July.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

DonFerrari said:
badskywalker said:

Produced does not equal shipped
Produced means either already having been shipped or prepared for shipping
Shipped does not equal sold
Shipped are consoles either waiting on shelves to be sold or those that have already been sold
Produced > Shipped > Sold

At least this is my understanding.

True, but produced to shipped would be couple days or at most like couple weeks difference. So produced means almost the same as shipped very shortly. Even shipped to sold is quite close as well, couple months difference usually.

Well it kind of depends on orders from retail stores, whether they choose to air freight it or ship it by boat (PS5 has chosen the former for launch), if stores do not sell fast enough, then there is a backup of production and space, which leads to decreasing production. I'm not saying that this will occur for the PS5, I'm just saying that it is possible for produced to be very different form shipped. I actually doubt the PS5 will suffer from slashing of production or overproduction, but I'm also pretty confident that it won't do as well as some people claim. I've seen a couple claim 20 million in its first year, which would be very interesting, but doubtful.



badskywalker said:
DonFerrari said:

True, but produced to shipped would be couple days or at most like couple weeks difference. So produced means almost the same as shipped very shortly. Even shipped to sold is quite close as well, couple months difference usually.

Well it kind of depends on orders from retail stores, whether they choose to air freight it or ship it by boat (PS5 has chosen the former for launch), if stores do not sell fast enough, then there is a backup of production and space, which leads to decreasing production. I'm not saying that this will occur for the PS5, I'm just saying that it is possible for produced to be very different form shipped. I actually doubt the PS5 will suffer from slashing of production or overproduction, but I'm also pretty confident that it won't do as well as some people claim. I've seen a couple claim 20 million in its first year, which would be very interesting, but doubtful.

Sure would be true.

But for a succesfull console like PS4, Switch and we hope PS5 as well (at least I do) the production is shipped very fast and also sold as soon as hit the stores.

20M in first year is sure very unlikely (could happen? perhaps 1 chance in 10 thousand), but yes it is possible for a console production to outpast demand from retailers and then production needing to be reduced (we could say that whenever a console manufacturer revise down the forecast is that their production forecast was outpacing the demand so they had to reduce so they won`t have big inventories and needless expesnses).



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994