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CNN Money :Sony's PS3 A Sinking Ship: Sales Plummet

H

Hammerhai

Member
Sony's PS3 A Sinking Ship: Sales Plummet
By Eric Krangel
December 12, 2008: 09:21 AM ET
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(alleyinsider.com) -- Sony's (SNE) PS3 is dying on the shelves.

Alone among the three major videogame consoles, sales of the PS3 are down about 19% from November 2007, according to the latest stats from the NPD Group. Sony was only able to sell 378,000 PS3s this November, compared to 466,000 last year.

And the problem for Sony isn't the recession, it's the PS3. Microsoft (MSFT) put up respectable numbers with its Xbox 360, selling 836,000 units vs 777,000 in November 2007. And Nintendo's (NTDOY) Wii continues to dominate the market, more than doubling sales from 981,000 to 2.04 million.

So why is the PS3 flopping so badly?

1. It's the most expensive console on the market, $150 - $200 more than its rivals. Even if you believe the video game industry is "recession-proof" (it isn't), a tanking economy makes consumers more price-conscious.
2. The PS3's big bonus is its ability to double as a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
3. The PS3 just doesn't have any must-have titles exclusive to the console. "LittleBigPlanet" has generated decent buzz but isn't a game-changer, and neither is Sony's new virtual world "Home."

There's really only one option left for Sony to remain in the game: deep price cuts, and not just for people with good credit. Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy
 
A

AmMortal

Banned
Well hotdarnit, price cuts are coming afterall.

£150 PS3 or bust

This thing would sell like hot cakes, up in this bitch.
 
M

maxax

Junior Member
Hammerhai said:
Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy
Click to expand...

Somehow, in Europe it can.
/SDF
 
K

Keyser Soze

Member
girl-global-escapes-complaint-fraud-scam.jpg
 
Y

YagizY

Member
Hammerhai said:
2. .....The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
Click to expand...

While I agree with most of the things said in this article, I find the statement above to be an article-crusher because of how stupid the statement is.
 
S

spwolf

Member
Tideas said:
no must have exclusives? hmm, i guess the dude forgot about R2, MGS4, GT5 Pro, etc etc
Click to expand...

dude says that the problem is not recession and then lists #1 problem as being too expensive in recession :D
 
T

titiklabingapat

Member
This might sour shareholder expectations just because it appeared on a mainstream news site.

Maybe CNN trolling will force Sony to take a second look at a price cut after all?
 
Forsete

Forsete

Gold Member
Hammerhai said:
Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy
Click to expand...

Butthurt somehow? :lol
 
V

VGChampion

Member
Hammerhai said:
2. The PS3's big bonus is its ability to double as a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
Click to expand...

I've been playing Blu-Ray's on my 37" HDTV recently and have no problem seeing a difference. Normally I'm on a 50" and it does look better but that's because that one is a 1080p. Maybe these journalists should do some research themselves before writing stuff down.
 
D

djkimothy

Member
YagizY said:
While I agree with most of the things said in this article, I find the statement above to be an article-crusher because of how stupid the statement is.
Click to expand...

I agree, all his points are valid cept that one.

But that's not the point of the article. Sony is grabbing defeat in the most spectacular way. I honestly don't understand their current strategy right now.
 
V

v0yce

Member
Hammerhai said:
So why is the PS3 flopping so badly?

1. It's the most expensive console on the market, $150 - $200 more than its rivals. Even if you believe the video game industry is "recession-proof" (it isn't), a tanking economy makes consumers more price-conscious.
2. The PS3's big bonus is its ability to double as a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
3. The PS3 just doesn't have any must-have titles exclusive to the console. "LittleBigPlanet" has generated decent buzz but isn't a game-changer, and neither is Sony's new virtual world "Home."
Click to expand...

He forgot...

4. Games have no "heart."
 
T

Tideas

Banned
djkimothy said:
I agree, all his points are valid cept that one.

But that's not the point of the article. Sony is grabbing defeat in the most spectacular way. I honestly don't understand their current strategy right now.
Click to expand...

defeat is when they lose money with the PS3. they will if they drop the price.
 
S

snatches

Member
VGChampion said:
I've been playing Blu-Ray's on my 37" HDTV recently and have no problem seeing a difference. Normally I'm on a 50" and it does look better but that's because that one is a 1080p. Maybe these journalists should do some research themselves before writing stuff down.
Click to expand...

It really depends on living room size. In middle america people sit like 15-20 feet from their TV's. Not everyone lives in a San Francisco condo.
 
K

Kaako

Felium Defensor
3. The PS3 just doesn't have any must-have titles exclusive to the console. "LittleBigPlanet" has generated decent buzz but isn't a game-changer, and neither is Sony's new virtual world "Home."
Click to expand...
They're obviously just jealous that they didn't get to see The Secret PS3 Game and BBC did a while a go. CNN am bunch of playa hatin' trolls!
 
B

bardia

Member
Hammerhai said:
Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy
Click to expand...


So Halo, Gears of War, Left 4 Dead, and Fable II is the only reason the XBOX 360 has a good library then right? Because almost every other great Xbox game is ON the PS3 + their own exclusives :lol :lol :lol
 
D

Die Squirrel Die

Member
djkimothy said:
I agree, all his points are valid cept that one.

But that's not the point of the article. Sony is grabbing defeat in the most spectacular way. I honestly don't understand their current strategy right now.
Click to expand...

Isn't there current strategy based on Krazy Ken hiding in his basement tinkering away on the PS3, only to re-emerge with a console that was insanely expensive to manufacture, Sony facing mounting pressure from MS having little choice but to release it with a high price tag, despite which they still took crazy losses on it, and now trying to batten down the financial hatches until they can bring the costs down to the point where they can price it competitively and still make money?
 
D

djkimothy

Member
Tideas said:
defeat is when they lose money with the PS3. they will if they drop the price.
Click to expand...

They are already losing the mindshare battle. This pretty much happened to Apple with the Macintosh. No one is going to buy the more expensive system when a perfectly good system already exists for less money.

Not to mention that almost every TV advert has a Wii or 360 tag at the end of every major 3rd party game. At least from what I've seen.

Isn't there current strategy based on Krazy Ken hiding in his basement tinkering away on the PS3, only to re-emerge with a console that was insanely expensive to manufacture, Sony facing mounting pressure from MS having little choice but to release it with a high price tag, despite which they still took crazy losses on it, and now trying to batten down the financial hatches until they can bring the costs down to the point where they can price it competitively and still make money?
Click to expand...

Pretty much, but at least they won the high def wars. :/
 
K

Kagari

Crystal Bearer
MorisUkunRasik said:
I hope this spurs Sony to drop the price, KZ2/RES5 advert blitz with price cut would do wonders.
Click to expand...

They're obviously going to drop the price. Probably in March.
 
G

GSG Flash

Nobody ruins my family vacation but me...and maybe the boy!
reilo said:
This was written by a paid staffer for CNN? Really?
Click to expand...

It wasn't a CNN writer, it was some guy named Eric Krangel from http://www.alleyinsider.com/ and CNN borrowed the story from them.

I've already sent an email to Mr Krangel about his inaccurate and amateur looking article.
 
Alcahest

Alcahest

Member
Hammerhai said:
2. The PS3's big bonus is its ability to double as a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
Click to expand...

dope is bad.
 
P

Ponn

Banned
His wording might be off and to the extreme but generally he is right and Sony should be sitting up and taking notice and cutting that damn price. Then again it is Sony we are talking about here so listening is not big in their vocabulary.
 
C

CoLaN

Member
Microsoft console came on the market with faulty hardware, but it seems no one cares anymore. Yes, one died on me and i will never let that pass. You pay less, you get less.

Don't get me wrong, Live and 360 library are nice, i enjoyed Gears and many other games, but what happened should be always reported in every article that talk about those things.
 
Clinton514

Clinton514

Member
GSG Flash said:
It wasn't a CNN writer, it was some guy named Eric Krangel from http://www.alleyinsider.com/ and CNN borrowed the story from them.

I've already sent an email to Mr Krangel about his inaccurate and amateur looking article.
Click to expand...

Krangel is a pretty deep character:
And you can also get a lot of surprisingly good games for the iPod touch either free or dirt cheap
Click to expand...

http://www.alleyinsider.com/2008/12/not-just-the-ps3-sonys-psp-sales-stink-too-sne

Face-palm?
 
M

MorisUkunRasik

Member
Alcahest said:
dope is bad.
Click to expand...


that's so inaccurate CNN should be embarassed. I have a 32 and 42 inch in my home and there is an abruptly obvious difference even when I'm watching blu rays in my room on my 32 inch.
 
T

Tom Penny

Member
It's not a very difficult thing to grasp. If they don't want to price drop they aren't going to boost sales. They should know that they have already reached their maximum sales potential at the current price point and thus they should be lowering the price. I'm sure they have some magical business model that supports what they are currently doing.
 
M

MorisUkunRasik

Member
Clinton514 said:
It wasn't a CNN writer, it was some guy named Eric Krangel from http://www.alleyinsider.com/ and CNN borrowed the story from them.

I've already sent an email to Mr Krangel about his inaccurate and amateur looking article.

Krangel is a pretty deep character:
Quote:
And you can also get a lot of surprisingly good games for the iPod touch either free or dirt cheap

http://www.alleyinsider.com/2008/12/...-stink-too-sne

Face-palm?
Click to expand...

Ipod touch = DS killer confirmed.
 
D

DeaconKnowledge

Member
The most important part of this article is when he correctly states that sales of the PS3 are DOWN YoY. Cry butthurt and fanboy all you want, but the plain truth is that people aren't buying the console.
 
C

camineet

Banned
Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy
Click to expand...


OUCH :lol
 
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