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

Forums - Sales Discussion - NPD Gamasutra article (interesting facts on Sony)

Ping_ii on 20 January 2010

@Slowmo

WOW nice clear explanation thx. =)



Around the Network
mario64 on 20 January 2010

Well of course PS2 and PSP revenue are declining, those are old consoles. PS3 revenue is on the rise though and shows no signs of slowing down, so overall things now look good for Sony.

Focusing on one country, the one where Sony is the least successful, doesn't help that much to understand the big picture though.



NJ5 on 20 January 2010

The "razor and blades" model has to be pulled off with great precision, no mistakes. Otherwise you end up cutting yourself.



My Mario Kart Wii friend code: 2707-1866-0957

jneul on 20 January 2010
slowmo said:
Kavitron said:
so what this is article is essentially saying psp and ps2 sales need to increase to stop sony losing money


No its saying that the inevitable decline in PS2 sales combined with the poorer PSP performance has taken a large amount of profit from them which would have hidden losses on the PS3 side in the past.  What you might hypothesize from the article is Sony would need to decrease costs further on the PS3 and continue to push PSP sales and further revenue from PSN. 

Sony cannot do anything to increase PS2 sales anymore, its in a natural decline given its age.  The PSP can be saved with some more aggressive pricing and marketing but its on a slippery slope still.  The PS3 market is reasonably healthy and provided they can turn a profit soon then will no longer be the huge drain it has been in the last few years.  Its not a complete doom and gloom article, it just highlights some things that might dictate what Sony could do if they aim to be profitable in the near future.

 

that is a brillaint explanation and very non biased



it's the future of handheld

PS VITA = LIFE

The official Vita thread http://gamrconnect.vgchartz.com/thread.php?id=130023&page=1

totalcluedo on 20 January 2010
NJ5 said:
jneul said:
WilliamWatts said:

One interesting thing I found out because I was bored and listened to Major Nelson was that their number one accessory for the Xbox 360 were points cards for online. I expect that they are thereby increasing the money they earn per console which explains the relative stability of their earnings next to a fall in relative market share next to the Wii and PS3. Thats a lot of Arcade games sold, and they outnumbered Live cards and controllers haha!

Looking at Sony well its going to be a tough 6 months and my prediction is that as soon as the financials are in everyone is going to be calling them epic fools etc. Personally them cutting the price to $299 was absolutely needed and likely had they not done it they would have lost more money from a weak overall market position in the console market between now and the next generation and beyond. Once people stop taking you seriously you've got an uphill battle to get their respect back. So any losses they make are probably justified but they'll still look like monkeys doing it. However they will be less of a monkey in the longer term because of that move.

please get your information right, they reduced the cost of making the PS3 with the PS3 Slim, and passed on some of the savings to the customers, with that being said, they are definately losing less money on every PS3 Slim that is sold now, they are in a stronger position now to start breaking even and making a profit on the PS3.

When the finance comes in you have to remember it is based on the fact theat hey was selling the old PS3 phat for most of the year at a greater loss, only since the PS3 Slim came out they have managed to reduce losses going out, so it will probably be bad news again, unfortunately.. Now next year they should at least break even, I hope

The problem is that the improvements on PS3 profitability have to counter PS2's decline before they can push SCE into profit.

While the PS2 doesn't have much more to decline, one of the issues now is the declining software market in USA (NPD said software revenue was lower in 2009 than 2008, didn't they?)... I don't know if it's affecting Sony much, but if it is that will be a real problem.

 

Sony predicted PS2's decline in there financials. Would of been taken into account.



Around the Network
NJ5 on 20 January 2010
totalcluedo said:
NJ5 said:
jneul said:
WilliamWatts said:

One interesting thing I found out because I was bored and listened to Major Nelson was that their number one accessory for the Xbox 360 were points cards for online. I expect that they are thereby increasing the money they earn per console which explains the relative stability of their earnings next to a fall in relative market share next to the Wii and PS3. Thats a lot of Arcade games sold, and they outnumbered Live cards and controllers haha!

Looking at Sony well its going to be a tough 6 months and my prediction is that as soon as the financials are in everyone is going to be calling them epic fools etc. Personally them cutting the price to $299 was absolutely needed and likely had they not done it they would have lost more money from a weak overall market position in the console market between now and the next generation and beyond. Once people stop taking you seriously you've got an uphill battle to get their respect back. So any losses they make are probably justified but they'll still look like monkeys doing it. However they will be less of a monkey in the longer term because of that move.

please get your information right, they reduced the cost of making the PS3 with the PS3 Slim, and passed on some of the savings to the customers, with that being said, they are definately losing less money on every PS3 Slim that is sold now, they are in a stronger position now to start breaking even and making a profit on the PS3.

When the finance comes in you have to remember it is based on the fact theat hey was selling the old PS3 phat for most of the year at a greater loss, only since the PS3 Slim came out they have managed to reduce losses going out, so it will probably be bad news again, unfortunately.. Now next year they should at least break even, I hope

The problem is that the improvements on PS3 profitability have to counter PS2's decline before they can push SCE into profit.

While the PS2 doesn't have much more to decline, one of the issues now is the declining software market in USA (NPD said software revenue was lower in 2009 than 2008, didn't they?)... I don't know if it's affecting Sony much, but if it is that will be a real problem.

 

Sony predicted PS2's decline in there financials. Would of been taken into account.

 

Internally yes, but they don't publish those forecasts. They publish forecasts for the revenue and income of Sony as a whole, not for each division.

 



My Mario Kart Wii friend code: 2707-1866-0957

magik10 on 20 January 2010
mario64 said:
Well of course PS2 and PSP revenue are declining, those are old consoles. PS3 revenue is on the rise though and shows no signs of slowing down, so overall things now look good for Sony.

Focusing on one country, the one where Sony is the least successful, doesn't help that much to understand the big picture though.


It's amazing that in a thread with a lot of sound discussion and analysis, you can't help pull some retarded fanboy crap. Do you work for Sony? own stock? or are fiscally impacted in respect to their performance? If so, I can understand the fevor on needing to put a positive spin to make yourself feel better but none of the options apply, why not take this time to learn something vs spouting the same useless fanboy trash that smears 95% of this site?

 



mario64 on 20 January 2010

@magik10 : Mmmm what is this meltdown ? Sorry if I offended you, I just pointed facts, which is "NPD is US only" which doesn't give any indication on the worldwide status. I don't see what is fanboyish in reminding people NPD is US only and therefore not so relevant.

On a worldwide scale, Sony PS3 is now very successful since it sells a lot more than its cheaper competitor (millions more in recent months).

Making less and less profit on older models is obvious. Wow I'm so fanboyish when I say all that !

The more PS3 sells, the more PS3 profit will of course make up for that lost profit in PS2... Same thing as the PS1/PS2 transition actually.

If you can't stand people opinions, why do you come in a forum ?



magik10 on 20 January 2010
mario64 said:

@magik10 : Mmmm what is this meltdown ? Sorry if I offended you, I just pointed facts, which is "NPD is US only" which doesn't give any indication on the worldwide status. I don't see what is fanboyish in reminding people NPD is US only and therefore not so relevant.

On a worldwide scale, Sony PS3 is now very successful since it sells a lot more than its cheaper competitor (millions more in recent months).

Making less and less profit on older models is obvious. Wow I'm so fanboyish when I say all that !

The more PS3 sells, the more PS3 profit will of course make up for that lost profit in PS2... Same thing as the PS1/PS2 transition actually.

If you can't stand people opinions, why do you come in a forum ?

US is the biggest gaming market. You can't just go "but but but WW!!!!" to make yourself feel better anytime you see negative news in one territory or another. Anyone can see the spin and angle you're taking.

 



slowmo on 20 January 2010
mario64 said:

@magik10 : Mmmm what is this meltdown ? Sorry if I offended you, I just pointed facts, which is "NPD is US only" which doesn't give any indication on the worldwide status. I don't see what is fanboyish in reminding people NPD is US only and therefore not so relevant.

On a worldwide scale, Sony PS3 is now very successful since it sells a lot more than its cheaper competitor (millions more in recent months).

Making less and less profit on older models is obvious. Wow I'm so fanboyish when I say all that !

The more PS3 sells, the more PS3 profit will of course make up for that lost profit in PS2... Same thing as the PS1/PS2 transition actually.

If you can't stand people opinions, why do you come in a forum ?


The PS3 isn't in profit so the more PS3's sold do not equal more profit, that is kind of the point of this thread which you've missed.  More PS3 sales doesn't equal more profit at the moment. 

I think it was more the remark being regarding Sonys weakest region not your opinion, if you have such an issue with that fact then you should have not entered the thread to start with perhaps.