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Forums - Sony - PS3 in Holiday '08 'A Case Study on How to Hurt a Brand' – UBS

darthdevidem01 said:


@happy squirel

recent 3rd party game sales show there is no incentive of making them xbox 360 exclusive....I'm talking about fallout 3, Tomb raider, NFS, FIFA, PES, MAdden, COD and so on

Bang! YOU NAILED IT!!

oh wait, I thought you wrote "is no incentive of making them PS3 exclusives... ....such as Resistance 2, LBP, VC and so on"

my bad....



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Dodece said:
@CGI-Quality

At the entry level price the console would not have survived the first year. Thus Sony was forced to cut the price in many markets by a third. They did not do it, because they wanted to. They had no option either they had a radical price reduction or the console would have been one of those one year consoles that litter the console battle ground. The console did not do well for the price. It did well for having massive price cuts.

Sony did not drop the price in the 1st year of the PS3.
But, lets say the PS3 sales are a result of "radical price reductions", what do you call the 360's current situation?  The PS3 was outselling the 360 by 2 million consoles in '08 before M$'s price reduction.  Which is the same amount Sony dropped thier price.  

So what your saying is: Sony dropping price $100 = radical price reduction

                                      M$ dropping price $100 = smart business

BTW: neither the 360 or the PS3 are doing great.  They are both doing OK but a 8 million unit gap is nothing.  Especially since we are not even half way through this gen.



We are all doomed who play ps3 oh no.......................................... When will the trend die out I am getting tired of this



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kjj4t9rdad said:
Dodece said:
@CGI-Quality

At the entry level price the console would not have survived the first year. Thus Sony was forced to cut the price in many markets by a third. They did not do it, because they wanted to. They had no option either they had a radical price reduction or the console would have been one of those one year consoles that litter the console battle ground. The console did not do well for the price. It did well for having massive price cuts.

Sony did not drop the price in the 1st year of the PS3.
But, lets say the PS3 sales are a result of "radical price reductions", what do you call the 360's current situation?  The PS3 was outselling the 360 by 2 million consoles in '08 before M$'s price reduction.  Which is the same amount Sony dropped thier price.  

So what your saying is: Sony dropping price $100 = radical price reduction

                                      M$ dropping price $100 = smart business

BTW: neither the 360 or the PS3 are doing great.  They are both doing OK but a 8 million unit gap is nothing.  Especially since we are not even half way through this gen.

It's might be smart business, if you can afford it. The problem for Sony is they don't make billions of profit to hide their losses anymore.

 



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kjj4t9rdad said:
Dodece said:
@CGI-Quality

At the entry level price the console would not have survived the first year. Thus Sony was forced to cut the price in many markets by a third. They did not do it, because they wanted to. They had no option either they had a radical price reduction or the console would have been one of those one year consoles that litter the console battle ground. The console did not do well for the price. It did well for having massive price cuts.

Sony did not drop the price in the 1st year of the PS3.
But, lets say the PS3 sales are a result of "radical price reductions", what do you call the 360's current situation?  The PS3 was outselling the 360 by 2 million consoles in '08 before M$'s price reduction.  Which is the same amount Sony dropped thier price.  

So what your saying is: Sony dropping price $100 = radical price reduction

                                      M$ dropping price $100 = smart business

BTW: neither the 360 or the PS3 are doing great.  They are both doing OK but a 8 million unit gap is nothing.  Especially since we are not even half way through this gen.

Just FYI. PS3 launchs in US in Nov 2006. First price cut was in Sept 2007.

 



MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.

KatinJin said:

UBS analyst Ben Schachter has issued his post-NPD sales report. He noted that although December got off to a slow start, its final two weeks were very strong and made up for it. Also, while there has been talk of softness in the music game category, Schachter said that "the music genre, led by Guitar Hero, significantly reaccelerated y/y growth in December vs. November – driven by higher ASP's of the full band kits," adding that "concerns around Guitar Hero were overblown."

Schachter was particularly disappointed by Sony. While the PS3's unit sales were up sequentially from November (to be expected), they were down 10 percent year-over-year. Microsoft's Xbox 360 managed to double the sales of the PS3, and Schachter said Sony's PS3 performance highlights "our growing fears about the viability of third-party support for the platform."

He added, "As for Sony, holiday 2008 may go down as a case study on how to hurt a brand. Despite solid ratings for its key first-party software (Resistance 2 and LittleBigPlanet), they were not good enough for consumers to look past the high price point on the hardware."

 

http://www.gamedaily.com/articles/news/ps3-in-holiday-08-a-case-study-on-how-to-hurt-a-brand-ndash-ubs/?biz=1

 

If third parties listen to this firm, then that hurts a lot.



Another article says what we've heard 1 million times already....*YAWN*

It's NPD. Perhaps we should analyze Japanese holiday sales. Ps3 won't be "last" for once lol.



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CGI-Quality said:
@ gebx

Uuum, Resistance 2 and LBP are 1st party games developed by 2nd party developers and are PUBLISHED by Sony. Just like Gears 1 and 2 are developed by 3rd party devlopers and are PUBLISHED by M$. VC is 3rd party developed AND 3rd party published. So your logic there is flawed.

 

[insert face palm]

"1st party games developed by 2nd party developers"... that makes them 2nd party games, regardless of who published it.

And gears is 2nd party aswell.

But if you really want to get realistic, 2nd party is not technically an official term used in businesses. So both Gears, Resistence, and LBP are 3rd party.

1st Party = games developed by internal studios

3rd Party = games developed by external studios.




I think of a significant ps3 owner populace own the console just because its a cheap blu ray player. even if that number is just around 2-3 million- its a significant negative factor for sony's profits and third party developers.



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owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

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c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business