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Forums - Sales Discussion - Sony and the PS3. How bad is it?

I pretty much already knew most of the information posted by the TC. Even though the PS3 had a better year in 2008 in hardware and software, the competition destroyed them overall. So 2008 was not the year of the PS3. Even though it has some decent exclusives like MGS4 and LBP, many of these exclusive didn't sell well once they were released. Motorstorm PR and Valkyrie Chronicles sold poorly to start. Resistance 2 going up against GeoW2 was outsold almost 3:1 in it's first 2 weeks. Even LBP had a slow start, but seems to be finally gaining some momentum.

Whether 2009 will be better for the PS3 is question. Yes, they have some nice exclusive on the way, but they had some great exclusive this year as well and it didn't make much of a difference. With Killzone 2, White Knight, InFamous, GT5 and the FF XIII games on the way, 2009 should be bright for the PS3. The only thing that will probably hurt it is the high price for the console and the surge of support for their competition.



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Sony will have lost like $4 BILLION on PS3 by the end of 2008.....that is fucking SAD! Go Blu-Ray lol



PREDICTIONS:
360 will outsell PS3 YTD for 2008. (CHECK!)
360 will have the best showing at E3 & TGS in 2009
2009 will be another year for the 360 over PS3
End OF 2009 SALES :: 360 - 40M;  PS3 - 30M; Wii - 70M

Well yet another statement from Sony saying no price cut.

http://www.maxconsole.net/?mode=news&newsid=34713

"No, we are not going to go down in price on PS3 – neither are we going to go down in price on PS3 in spring time either. Absolutely not, whatever you might have heard to the contrary. Our strategy is very much value added."

Their plan is the best way for their economy, adding value is cheaper then cutting price. But I doubt that lager HDD adn betetr bundles will boost sales to much over a lon period.

In my case i wrote that i think we will see a short surge due to KillZone 2 but as most game that surge won't last.

If the sales between PS3 and 360 still goes to 360's favour throught the Q1 (end of Sonys fiscal year) they are more or less forced to cut price.

Maybe they will wait until Q3 which would be the best in economic terms but the first 6 months well be a period of big pain and both users, potential consumers and media will bash them for it like they have already begun.

Short to say, not easy being in charge of PS3 right now.



Predictions for 2009:

360: 39-42 PS3: 31-34 Wii: 67-70

Future projection

Wii will hit 100 million before christmas 2010 (made december 2008)

NDS Family will have sold and shipped more then PS2 at the end of 2009 (made january 2009)

Personally, I think Sony pulled a Sega Saturn on this one... Too much power, too high of a price, not enough sales.



Reasonable said:
Sony made, IMO, a number of 'mistakes' or strategic errors, which resulted in PS3 struggling as it has (vs comparison with PS1/PS2).

These are:

1) it figured Nintendo wasn't its main competitor, when in fact it still was (check out the Source's 100 weeks analysis to see its the Wii, not the 360, that's really hurting PS3)

2) it figured all it needed to keep 360 down was to focus on some similar games and offer a free PSN service for basic online MP - hence the initial focus on teen/mature shooters, etc. for the console

3) it figured that since Nintendo wouldn't get developer support (apart from its own first party) and that 360 would only get Western shooters, it would automatically get the Japanese developers and a broad catalogue of titles to encourage a rapid transition from PS2 to PS3 - this would be helped with full BC

4) it figured HD TV and BR uptake would be stronger, and that the PS2 would support PS3 during an initial, high price, luxury item phase before they got the costs down to where the PS3 could drop in price or the 'must have' factor would drive consumers to get one

5) it produced a great, multi-purpose console but didn't consider that MS were (admittedly too hastily) assembling a console that while not as good from a multi-purpose media point of view (mainly due to lack of inbuilt HD player) was a good games console and where using their money to ensure the console had a lot of titles (more than it would warrant on Xbox sales and then brand position anyway). One of these efforts hit major paydirt - Gears of War.

6) it missed the fact that Xbox had started gaining momentum as an alternative platform for PC gamers, and a much cheaper one at that. The 360 took this too another level with Live improvements and a strong focus on delivering a PC like shooting/online MP experience. In fact, again looking at Source's data on this site, what was missed was 360 was selling to a new type of console gamer (more I'd argue than Wii in a way) - a gamer much like certain PC gamers, who wanted top notch graphics and fast, violent online play with clans, leaderboards and a strong sense of online competitive community. BTW Achievements were the feather in this crown IMHO.

7) It linked the PS3 with BR - and took it right into a format war with Toshiba. How many potential early owners were worried their super expensive console might sudden be stuck with a dead format I wonder? A fair few I'm sure.

8) Sony didn't launch with 'their ducks in a row' - i.e while they had this home entertainment hub on their hands, they had no aligned strategy to leverage their TV, Media and Content to the max to deliver a clear message on the console's offer and why you should want one



The result is obvious to me:

a) 360 took of within its demographic, particularly in the US. Easier to develop for, and with the promise of big sales for the right game, it drew the big Western developers like a moth to a candle.

b) Wii took off and was an instant hit with the family market, something the PS3 couldn't be as it was at launch too expensive, required an HD TV to get the best out of it, was linked to BR and the idea the format would fail, and simply didn't have the family games it needed to succeed.

c) PS3 launched with a lot of 'weights' around its ankles - it was expensive, their was the fear the BR it contained would become a dead format, it didn't have games, it was difficult (and expense) to develop for, it lost BC early on when it because clear the Wii was off and running and the PS3 was becoming locked into a bigger fight with 360 than anticipated, it lost local developer support with the BC and poor sales, with many titles selling better on PS2 and some games (still actually) coming out on PS2 rather than PS3.

d) MS quickly saw a chance to pounce and pulled out its wallet and/or strategy team to get timed exclusives and former Sony exclusives on the 360 - this further delayed uptake of the machine and increased perception (again particularly in the US) that the 360 was a true alternative to the Playstation brand.


And we are were we are - the recession will hurt all companies (likely MS included but they have the cash to ride it out) and has put price front and centre for many consumers, just about the worst scenario for the PS3, while the Wii is looking unstopable and MS firmly entrenced with money to spare to keep up the pressure.

Pity, because if you have and HD TV and want to buy BR movies and play games (including online MP) the PS3 is the better overall choice - and arguably still a cheaper one that the 360 plus a separate player. But while I think Sony will claw back what they can, this generation has clearly gone anything but as planned for them.

Nicely put,

 I just think sony bet too much on the famous& loyalty of the playstation brand. (have they yet to forget) nintendo can easily pull in the casual they have the franchises and history behind them. and Microsoft they should have seen them coming a mile away with the xbox1 (with them introducing xbox live). If sony would have plan out the design of the PS3 to rival a total different experience than the other two, or build it up to that I believe they could have had a better outcome.



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I know Sonys masterplan ;)
It is just a thought, but who knows.. here we go:

I think next gen all console producers will try to match those requirements

motion controls
HD graphics
online entertainment
newest standard of discs (lets say... BluRay)

in a nutshell: Wii controller + Xbox online + PS3 Bluray + HD


So most of us think next Xbox will rollout in 2011. I dont think they will emphasis on better graphics or more power, as seen in this generation -> it doesnt work as good as -> motion controlling/ casual gaming.

Next wii must improve its grapical power to stay competitive (because motion controlling will be offered by all three parties)

Next playstation is still the ps3... u know 10 year plan!!!!
All they have to do is to develop a good and working motion controlling unit -> isnt there a thread of patented ps3 version of the wii controller (including usage of the PS eye?)

Most of you will probably say: No way, all ps3 games would have to be playable with two different controllers (dualshock and motion controller)....You are right, but... With a storage monster like bluray...think again...

And what if the blurayconsortium including sony says: bluray is for playstation only (not for Xbox3, not for Wii2)?


its the year 2012:

Cheap HD TVs are available and the most normal thing to have, serious estimations when blueray will overtake DVD can be done.

PS3 is the cheapest console on the market (new xbox and wii have been released = more expensive than ps3)

Ps3 offers as the only console the new standard for video discs, has a more advanced motion controlling unit than the current Wii (incl. ps eye), still nice graphical power (not as good as the new xbox of course) and a good working online UNIVERSE (fully evolved PS Home).. and sells like hot cakes for the rest of their 10 year plan (even better than ps2, lol)

But with all that financial crisis stuff... maybe never gonna happen ;)


Cheers and
merry xmas





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PalmiNio said:
colonelstubbs said:
Are people just making accounts to come here and throw out some supposed bad things about sony?

Well if you disagree with me so tell my why then. It is a case, not fiction och bashing.

It's not like I can write a case and say everything is all good, this is pure finance and the numbers that i find is not positive. But if you have source saying something else please post it. I need fact about my case and it's hard to find.

 

 Welcome aboard. I'm not sure how much your analysis will hold up under scrutiny (though I look forward to seeing it), but a calm, reasoned analysis, regardless of where it leads, is always wecome.

 

 



Qhy oh why would the BR consortium not allow the next wii or the next xbox to have a BR drive! That makes no sense at all, If all the next gen consoles had BR drives then it would increase the formats popularity further and thus make them a lot of money.

Sony is not the only member of the BR consortium and even if they were they would allow the competition to use their technology (why wouldn't they want to get a slice of every console sold?). Thinking that Sony will cockblock microsoft is very stupid indeed as microsoft could block sony from using windows on their laptops and their laptop sales would die. If sony had that attitude everybody loses.



Good post Palminio,

Going forward a few factors are key for Sony.

Yen. As the dollar continues to erode the problem for Sony keeps getting worse. Many long term international contracts for companies are done on the dollar so it's value is critical to Sony. I'm not strictly speaking PS3's MSRP or price cuts but manufacturing/packaging/shipping/distribution/suppliers contracts and so forth that could be based off the dollar. Couple this with Sony generally operating on very low margins as is, you're in for some harsh times. Thus you're already seeing the first stage of Sony's reduction plans in action.

PS2 sales slowing. The PS2 is a profit center for the gaming division. As it fades away, it can't cover up for the PS3 as needed. The PS3 losses are more exposed and inturn, this exposure is highlighted to stock holders who can often overreact and want drastic changes.

Poor Software sales on the PS3. The PS2 was a software powerhouse. What they lost is hardware, they made up with selling a ton of software and the royalties associated. The PS3 software sales are not PSP piss poor but they're clearly not enough to offset the losses.

Poor accessory sales. While we can talk "value" all day, from a business standpoint, having everything enclosed in one box and selling for a premium isn't a great idea. Being able to sell harddrives, wireless adapters, memory cards and such as standalone accessories can be a key to lowering the core hardware prices while offsetting the losses with high accessory sales. Sony was forced to add all this 'value' to justify the high cost of entry. We know that wireless adapters and HDD's are not excatly cost leaders yet lead to high profit returns. However, having such items removed makes the sales pitch for a high priced PS3 become even more bleak.

Overall, the PS3 has been a perfect storm of market conditions and poor strategy (regardless of market conditions). Still, no need to dwell on what has passed. For Sony, going forward, the goal should be to minimize the losses and just ride out this generation. They're not in a financial position to fight it out and their poor initial choices have handicapped their options for market adaptation.



sirvice said:

And what if the blurayconsortium including sony says: bluray is for playstation only (not for Xbox3, not for Wii2)?

 

There will be nothing stopping Nintendo or Microsoft from using BluRay technology. The BR format isn't owned by Sony, they are just one of the keymembers that collects money from licensing.

When the next generation start BR will a much broader standard then today and as a strategy for becoming standard consortiums allways accepts new member with ease.

A BR-player in the next Xbox and Wii will only generate more money to the keyplayer.

Since Microsoft allready are working together with BR on diffrent levels they won't stop them. Like BR movies using MS backed technology VC-1.



Predictions for 2009:

360: 39-42 PS3: 31-34 Wii: 67-70

Future projection

Wii will hit 100 million before christmas 2010 (made december 2008)

NDS Family will have sold and shipped more then PS2 at the end of 2009 (made january 2009)