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Forums - Sales Discussion - Why reports of the decline of the PS3 have been grossly exaggerated.

What we're seeing with PS3 sales isn't some end of days phenomenom. All we're seeing is that the number of people who are willing and able to purchase a PS3 at the price of $400 being tapped out, and thus a pricecut is required to stimulate sales again. Thats pretty much it. Sure there are still people who will buy at that price, but the numbers of those people will decline especially after the rush this year so obviously a price cut is needed.

But how can SCE afford such outlanding expenses such as a price cut in these harsh times?

If we assume everythings in U.S dollars for a moment, and that Sony sells 10,000,000 PS3s with a price cut. At $400, they would have recieved $4,000,000,000 of revenue whilst at $350 it would be $3,500,000,000. A shortfall of about $500,000,000 (Im assuming the same number sold because I don't want to complicate things)

Killzone 2, Uncharted 2, MAG, Gran Turismo 5, God of War III, the agency.

If you could think of a reason these games will sell fewer than 15,000,000 combined on a userbase approaching the 30,000,000 mark please raise your hand and tell me. Now thats out of the way, if you assume a publisher cut of $38 per game that gives you a total revenue of: $570,000,000 minimum.

So the PS3 needs a price cut to stimulate sales, fact. The PS3 can afford a pricecut because this is likely to be the biggest year for sales for SCE on the PS3 for a while and even with a crappy exchange rate one can easily subsidise the other.

The end. What do you think?

 

 

 

 



Tease.

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The PS3 needs a pricecut. Yes. Sony need to decide what they want- money, or victory (2nd place)



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lol at the userbase approaching the 30,000,000 mark comment. It's going to happen but when it's just over half way there, you should probably have picked a smaller number.



This thread is basically...

 

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colonelstubbs said:
The PS3 needs a pricecut. Yes. Sony need to decide what they want- money, or victory (2nd place)

Sony is in a tough situation at the moment. $50 may not seem like alot to you and me but over a million consoles it works out to be alot of money. If they want second place they will pay dearly for it.

 



 


 

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We'll definitely see a price drop come March.

I figure they'll probably drop the price by $50 in March, then drop it by another $50 around the end of the year.

A $50 price cut should help spur sales for awhile, in Europe at least. Remember the 360's $50 price cut in NA at the end of last year? Sales were up for the entirety of 2008 compared to 2007.

In NA, a small price drop like that might do little more than the 360's price cut in Europe at the beginning of this year.



500 million dollars is almost 5% of Sony's cash reserves. Not insignificant.

The only reason why $500 million seems little is because they have been bleeding ridiculous amounts cash. Some of us became desensitized to these numbers.



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March is when Killzone 2 is released?



Killzone hits in February.



twesterm said:
lol at the userbase approaching the 30,000,000 mark comment. It's going to happen but when it's just over half way there, you should probably have picked a smaller number.

 

 I think he meant after the assumed 10 mil sold next year.