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Forums - Sales Discussion - Sony ships a million PS3 per month on increasing supply of pick-up heads, says paper

Diomedes1976 on 07 March 2007

shams said: Yup... and the remaining 300k? 300k x 12 = approx 4mill. Then again, Sony already claim 4mill shipped this year... where are they? Not in the US or Japan?? Say they sell 1 mill at the end of March in Europe (on day 1). That makes about 800k in the US, maybe 400k in Japan - and 1 mill in Europe (units sold in 2007 - not total). Total 2.2mill sold in the first qrt of 2007 (and including a launch in Europe). Out of 4mill shipped. That is a lot of unsold consoles piling up in retailers and warehouses...
Your numbers are completely flawed .The correct ones are 1.05 million consoles end january for NA and some 620K for Japan end January .End february numbers would be around 1.3 and 700K ,and for end march they will be at 1.5 million and 850K in Japan ...add the 1 million for Europe and you have some 3.35 million sold ....X360 arrived at 4.5 million by september only to remember you .Besides ,if they mass produce they will lower costs by perfecting the development process and having more % of success in the making of components and consoles .



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footbag on 07 March 2007

erm ummmmm.......actually the more they produce the cheaper it is to make them..........thus the beauty of mass production....
This is usually true, but when referring to a new product that requires specific parts that are not readily available on the market; there are other considerations. In manufacturing, productivity levels also has a lot to do with manufacturing costs. Opperating a factory at 50% efficiency is less expensive to operate it at max efficiency. In the end, they only want to produce the amount they can sell immediately, because future part prices may come down. This is a newer approach to production called Just in Time inventory. It is very effective at cutting costs and is used by nearly all manufacturers today.



elprincipe on 08 March 2007

tidus228 said:erm ummmmm.......actually the more they produce the cheaper it is to make them..........thus the beauty of mass production....
As others have pointed out, this is not necessarily the case here. Think about it. Components of these consoles get cheaper to make over time and production processes are improved. This is how companies get production costs under control and are able to eventually make profits on the hardware + make price cuts. If Sony produces 4 million extra units, for example, at a certain price, but then the price to make PS3 is reduced by $100 due to components being cheaper to produce and production processes being improved, they have just screwed themselves by 4,000,000x100 = $400 million by not waiting to produce those systems until the cost of producing them was less. After all, there is no price advantage to producing more right now if they aren't being sold!



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Sintinel on 08 March 2007

I wonder why they're doing this. I mean, they can't sell the ones they've made so far, so why increase production. Unless maybe this portends of a price drop. ???



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Stromprophet on 08 March 2007

Sintinel said: I wonder why they're doing this. I mean, they can't sell the ones they've made so far, so why increase production. Unless maybe this portends of a price drop. ???
Hello? Every gaming manufacturer does this. 360 has shipped about 2 million more consoles than they have actually sold. They literally have 2 million in the supply chain right now, on boats, in stores, or in transport. I would not be surprised by this at all. Numbers picked up a little in Japan, if they keep making some descent games they could bump up to 150k-200k a month. March will probably be a little bigger in the US with all the new releases. Plus Europe is selling out. It's likely they sell out the entire launch stock of 1 million + units. So in terms of actually sold. I'm seeing 3.5 million by the end of March.



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Viper on 08 March 2007

Sony did the same thing with the PSP. At one point, they had 8 million unsold PSPs in various channels yet they reported them all as sold. EA has bitched them out for it already.



sieanr on 08 March 2007

Stromprophet said: Sintinel said: I wonder why they're doing this. I mean, they can't sell the ones they've made so far, so why increase production. Unless maybe this portends of a price drop. ??? Hello? Every gaming manufacturer does this. 360 has shipped about 2 million more consoles than they have actually sold. They literally have 2 million in the supply chain right now, on boats, in stores, or in transport. I would not be surprised by this at all. Numbers picked up a little in Japan, if they keep making some descent games they could bump up to 150k-200k a month. March will probably be a little bigger in the US with all the new releases. Plus Europe is selling out. It's likely they sell out the entire launch stock of 1 million + units. So in terms of actually sold. I'm seeing 3.5 million by the end of March.
His point is they have plenty of stock sitting on store shelves yet decide to increase current production rates. I'm betting this is due to the European launch, but a price drop could be possible.



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Stromprophet on 08 March 2007

sieanr said: His point is they have plenty of stock sitting on store shelves yet decide to increase current production rates. I'm betting this is due to the European launch, but a price drop could be possible.
360 did the same thing last year once the got production equal to demand in May. They never sold more than 300k in any month but proceeding to ramp production up to something like about 400k shipping to the US every month. Every manufacturer does that, Nintendo will do it once they meet demand. It's an inlfation of the numbers. It could have something to do with Europe, but at this point I would assume Sony has enough to meet all the demand.



HappySqurriel on 08 March 2007

Stromprophet said: 360 did the same thing last year once the got production equal to demand in May. They never sold more than 300k in any month but proceeding to ramp production up to something like about 400k shipping to the US every month. Every manufacturer does that, Nintendo will do it once they meet demand. It's an inlfation of the numbers. It could have something to do with Europe, but at this point I would assume Sony has enough to meet all the demand.
There is (way) more to it than that ... There were (roughly) 3.5 Million Nintendo DS systems sold in North America in, 4 Million in Japan and a couple Million in Europe in Q4 of 2006 ... Basically 10 Million systems in a 3 month period ... Now the DS is on the extreme end of the spectrum in sales, but most systems will sell 4 to 6 million systems in Q4 of any given year; it takes months to build up the necessary stock to withstand the christmas rush...



Stromprophet on 09 March 2007

HappySqurriel said: Stromprophet said: 360 did the same thing last year once the got production equal to demand in May. They never sold more than 300k in any month but proceeding to ramp production up to something like about 400k shipping to the US every month. Every manufacturer does that, Nintendo will do it once they meet demand. It's an inlfation of the numbers. It could have something to do with Europe, but at this point I would assume Sony has enough to meet all the demand. There is (way) more to it than that ... There were (roughly) 3.5 Million Nintendo DS systems sold in North America in, 4 Million in Japan and a couple Million in Europe in Q4 of 2006 ... Basically 10 Million systems in a 3 month period ... Now the DS is on the extreme end of the spectrum in sales, but most systems will sell 4 to 6 million systems in Q4 of any given year; it takes months to build up the necessary stock to withstand the christmas rush...
That's simply untrue. Even after the Christmas rush it M$ announced that they had shipped 10.4 million, but actual NPD data and all other available sales data AFTER christmas reflected somewhere from as low as 8 million to as high as 9 million. As I said, every supplier does this. Sony is guilty of the exact thing with the PSP. I'm sure the Wii will have over supply as well before long. It's simply an inflation tactic used by the manufacturers to artificially pump up numbers. 4-6 million, is that why 360 sold only around 2 million thru q4? They didn't need to build up that many extra systems to withstand any kind of rush.