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Forums - Sales Discussion - Worldwide Hardware Numbers UP for week of Black Friday

Well this thread sure went down the toilet real quick.



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OctaBech said:
Avinash_Tyagi said:
letsdance said:
kowenicki said:
@palminio

Totally agree. ONLY Ninty have pshown textbook commerciality this gen.

Sony are the worst of the three. God know how much they have spent/lost this last few weeks. Advertising through the roof and selling a loss making concole in bumper bundles to get market share.

I dont blame them, they had no choice... but its hardly textbook commercial sense.


ol. sony will make a profit this quarter.

Not according to Sony

 

http://kotaku.com/5408318/sony-outlines-gaming-turnaround-sees-ps3-profitability-in-2011

 

Sony's gaming division should start seeing profitability by the tail end of their 2010 fiscal year through cost reduction and "operational efficiencies", Sony Chief Executive Howard Stringer told a gathering of press and analysts today. 

Let me tell you that a budget is much more complicated than green and red numbers, ie. there are write-offs from previous acquirements(production facilities, game studios, development kits, internal networks,..) spread over the time these aquirements are used in the production/development and often the companies with multiple products put all these write-offs on one product, though it in theory should have been differentiated.

Another thing is the income, in this case the Blu-Ray royalties, HD-TV sales and 3D push factors aren't included in the PS3 budget, but they are there and Sony is aware of the value.

The same goes with MS, they too can put these expenses on other products to make their let's say Zune seem less flop like.

Differentiating these things is as said too complex, thus comments like "selling a loss" (from a person who can't stand bad English :o) only becomes more ignorant the more one learn about how business is conducted.

Heck chances are that most PS3 have had different production costs due to different hardware suppliers(just look at 360 drives) and being made on different factories where the employees are paid different fluctuating salaries.

In the end of the day, the best way to judge is to look at the company and it's nature, does it have a history of expanding(razor thin margins) and how is its support to the product?

That's all fine and dandy, but the point is, you don't need to know how many hairs are on the horse to know how fast it runs, the bottom line is the bottom line, Sony isn;t making money, the gaming division isn't making money, they won't be making money for a while, that's not a good thing, especially when compared to their competitors



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Avinash_Tyagi said:
Carl2291 said:
Avinash_Tyagi said:
^If MS gets aggressive next year with price cuts, what does Sony really have left to combat? Do they really want to engage in a price war with MS which they can't really afford?

MS are profiting. They wont be cutting the price in any hurry, and will likely leave the cut for when Natal launches.

Until that time, Sony have big momentum, despite being $100 more expensive.

And then again, who knows what Sony have in store for Q3/Q4 2010? We know MS have Natal, Halo, Fable.. Etc. We have no idea at all what Sony have planned.


Elite and Slim are same price. MS may be profiting, but that means they have more ability to price cut, MS is exactly the company you would expect to try and do something to put the squeeze on Sony.

So?... The most expensive 360 is the same price as the cheapest PS3.

Entry levels are what matters.



                            

Avinash_Tyagi said:
CGI-Quality said:
Avinash_Tyagi said:
^If MS gets aggressive next year with price cuts, what does Sony really have left to combat? Do they really want to engage in a price war with MS which they can't really afford?

I don't think Sony needs to worry about a price war at this point, particularly considering how well they've just done while being $100 more expensive than the 360. They need to focus on games sales and profitability. Fortunatley, given their recent marketing trends, they are probably on the right track to do just that.


By the end of the next fiscal year perhaps, but that assumes they maintain sales and profit margins, if MS cuts aggressively, and regaisn the momentum, those projections likely go out the window

Even if they cut and get some sales back
the PS3 will continue to sell because it has reached a sufficiently LOW price to be accessible for many

so MS can cut what they want, it will not change Sony faith and may even not be worth the value at the very end for their business

200$ 360 sales < 300$ PS3 sales

sony doest need to increase their sales per week PARTICULARLY since they are still losing money on hardware !

 

 



Time to Work !

:O DS is simply amazing. Wii is incredible. Ps3 great. X360 is good... psp.... oh well.

Good sales all around. DS +1 million in just one region. Wii +1 million WW. Amazing.



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libellule said:
Avinash_Tyagi said:
CGI-Quality said:
Avinash_Tyagi said:
^If MS gets aggressive next year with price cuts, what does Sony really have left to combat? Do they really want to engage in a price war with MS which they can't really afford?

I don't think Sony needs to worry about a price war at this point, particularly considering how well they've just done while being $100 more expensive than the 360. They need to focus on games sales and profitability. Fortunatley, given their recent marketing trends, they are probably on the right track to do just that.


By the end of the next fiscal year perhaps, but that assumes they maintain sales and profit margins, if MS cuts aggressively, and regaisn the momentum, those projections likely go out the window

Even if they cut and get some sales back
the PS3 will continue to sell because it has reached a sufficiently LOW price to be accessible for many

so MS can cut what they want, it will not change Sony faith and may even not be worth the value at the very end for their business

200$ 360 sales < 300$ PS3 sales

sony doest need to increase their sales per week PARTICULARLY since they are still losing money on hardware !

 

 

That makes the mistake that  PS3 and 360 don't have a shared audience, a lower price 360 will cut into PS3 sales as people going into stores will see they can get most of their games on either system



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Carl2291 said:
Avinash_Tyagi said:
Carl2291 said:
Avinash_Tyagi said:
^If MS gets aggressive next year with price cuts, what does Sony really have left to combat? Do they really want to engage in a price war with MS which they can't really afford?

MS are profiting. They wont be cutting the price in any hurry, and will likely leave the cut for when Natal launches.

Until that time, Sony have big momentum, despite being $100 more expensive.

And then again, who knows what Sony have in store for Q3/Q4 2010? We know MS have Natal, Halo, Fable.. Etc. We have no idea at all what Sony have planned.


Elite and Slim are same price. MS may be profiting, but that means they have more ability to price cut, MS is exactly the company you would expect to try and do something to put the squeeze on Sony.

So?... The most expensive 360 is the same price as the cheapest PS3.

Entry levels are what matters.

the more expensive 360 is ... 229 euros (elite+ 2 games) here in France

while PS3 is still 300 euros
at best you can buy a PS3 + game bundle for 349 euros and get back 30 euros on your 2nd controlled purchase
(so this offer doesnt change much ...)



Time to Work !

Avinash_Tyagi said:
libellule said:
Avinash_Tyagi said:
CGI-Quality said:
Avinash_Tyagi said:
^If MS gets aggressive next year with price cuts, what does Sony really have left to combat? Do they really want to engage in a price war with MS which they can't really afford?

I don't think Sony needs to worry about a price war at this point, particularly considering how well they've just done while being $100 more expensive than the 360. They need to focus on games sales and profitability. Fortunatley, given their recent marketing trends, they are probably on the right track to do just that.


By the end of the next fiscal year perhaps, but that assumes they maintain sales and profit margins, if MS cuts aggressively, and regaisn the momentum, those projections likely go out the window

Even if they cut and get some sales back
the PS3 will continue to sell because it has reached a sufficiently LOW price to be accessible for many

so MS can cut what they want, it will not change Sony faith and may even not be worth the value at the very end for their business

200$ 360 sales < 300$ PS3 sales

sony doest need to increase their sales per week PARTICULARLY since they are still losing money on hardware !

 

 

That makes the mistake that  PS3 and 360 don't have a shared audience, a lower price 360 will cut into PS3 sales as people going into stores will see they can get most of their games on either system

If that were the case a $199 xbox compared to a $399 PS3 or $299 PS3 would make no difference if your logic is less price > higher price. Considering no other realistic variables really dumbs down a complex discussion on sales trends.



Well done PS3. Wii and DS as always amazing. PSP you're dying. RIP. Expected 360 numbers.



CGI-Quality said:

Yes, you have read it wrong.

A. By telling him that he could have approached the post differently is now me showing bias?

B. I told him that I agreed a bit with his point, seems you carefully ignored that as well.

C. What Zucas was talking about DID NOT include any kind of profits. I've defended what he meant this entire time and even one of the posters, who also doesn't agree with his point, admitted to have read something wrong.

Yes, you read it wrong.

Well, it is clear to me that you're reading it your own way and trying others to do it the same way.

But then again, ignore my opinion... this is between you and him. I was just trying to state that you could be overreacting, but if not please continue.