By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - The Reality behind a PS3 Slim

Squilliam on 04 July 2009
Slimebeast said:
Squilliam said:
I have doubts that the PS3 @ $299 will even exceed the sales of the PS3 @ $400 in early 2008. Slim model or not theres a very real saturation effect going on in the market as more people pick up consoles there are fewer people for Sony to sell to which I think is pretty obvious, hopefully anyway. The long terms effects of the original price cut measuring 6 months before and 6 months after have an elasticity of -1.08 and since price elasticity of demand drops as you cut the price further its hard to say that a price cut will be able to bring sales up to a level thats higher than 2008. So in essence unless the PS3 gets some killer app or their wand really takes off they would have probably peaked in overall sales in 2008.


That's awkward thinking Squill (marked green). How can the market be saturated when the 120 million seller of last gen so far only has sold 22 million consoles in 2.5 years this gen? And the video game console market has grown from 30 million consoles per year in last gen to 45 million consoles per year.

I agree on what you said about price elasticity and the rest though. That's something to think more deeply about.

The first 100M customers are a lot easier to pursuade to purchase you console than the next 100M. We're seeing the unbeatable Wii start to falter from its ever increasing sales, we're seeing the PS3s sales down, the Xbox 360s sales would have been down if not for the recent price drop. From here on out, especially from 2010 onwards its going to get a lot harder to maintain sales at levels we've seen in 2008 and 2009. This generation started at a blistering pace, but we could be seeing the consequences now in lower sales for the consoles as sales which would normally be had during the peak 3rd year came last year and the year before that. Once the holiday season is over what then? With the Xbox 360 ~40M the PS3 ~30M and the Wii ~70M thats over 140M consoles sold.



Tease.

Around the Network
StanGable on 04 July 2009
Slimebeast said:
Squilliam said:
I have doubts that the PS3 @ $299 will even exceed the sales of the PS3 @ $400 in early 2008. Slim model or not theres a very real saturation effect going on in the market as more people pick up consoles there are fewer people for Sony to sell to which I think is pretty obvious, hopefully anyway. The long terms effects of the original price cut measuring 6 months before and 6 months after have an elasticity of -1.08 and since price elasticity of demand drops as you cut the price further its hard to say that a price cut will be able to bring sales up to a level thats higher than 2008. So in essence unless the PS3 gets some killer app or their wand really takes off they would have probably peaked in overall sales in 2008.


That's awkward thinking Squill (marked green). How can the market be saturated when the 120 million seller of last gen so far only has sold 22 million consoles in 2.5 years this gen? And the video game console market has grown from 30 million consoles per year in last gen to 45 million consoles per year.

I agree on what you said about price elasticity and the rest though. That's something to think more deeply about.

I actually agree with Squilliam on this one. Although sales have increased compared to the last generation, you have to consider that Nintendo did create a whole new market and they are taking a vast majority of them. Also, keep in mind that most mainstream customer will buy one console only if their lifetime. As it is only the hardcore buy 2 or more consoles in each generation. 



What are you looking at, nerd?