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Sony Hit by Drop in PS2 Sales

Posted by CowboyNeal on from the waning-popularity dept.

sdw3u writes "Falling sales of PlayStations contribute to a 23% drop in profits at the Japanese tech giant, while rival firms see profits surge." Perhaps it may be time for Sony to lower prices again, which has helped fuel another console's sales. They've also reported a 40% drop in game sales to accompany the drop in console sales. According to the article, they don't see things changing for the better anytime soon, though, and are now focusing on development of their PSP handheld system. Update: 04/27 16:08 GMT by S : A GameGossip news story has more info from Sony's conference call, noting "Sony cited expected lowered production shipments for both PlayStation 2 (from 20 million to 14 million) and PSOne (from 3 million to 1 million)... total software shipments this year (including PS2 and PSOne together) were at 254 million, ahead of its 250 million estimates."

9 of 66 comments (clear)

  1. Perhaps it is time for a drop in prices by evil-osm · · Score: 4, Insightful

    However they also have to expect that there are only so many sales out there. I mean how many PS2's does a family need? It was bound to happen. PC sales also saw a drop a few years back, no real surprise.

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    E.

    Never rub another man's rhubarb - The Joker
    1. Re:Perhaps it is time for a drop in prices by MMaestro · · Score: 3, Insightful
      It was bound to happen.

      Agreed, its called market saturation. Sony has shipped something like 20 million units they're bragging about right? Well can the market take 20 million units and then be expected to buy a couple million more with the PS3 expected in a year or two? (At the least, some info during E3). The GC and Xbox were shunned pretty much for the first year so people who ignored it then are probably making the jump now (esp. with its low price). Why replace a broken PS2 when you can buy a new system and try out different games?

  2. PS2 exclusive games... by UberChuckie · · Score: 5, Insightful

    Grand Turismo 4 and Grand Theft Auto: San Andreas are going to be released this year as PS2 exclusive games. I don't think Sony is worried at all. The only reason I bought the PS2 is to play Grand Turismo 3.

  3. Re:good news for me if they lower prices by Anonymous Coward · · Score: 1, Insightful

    Sega built a work horse when they designed the dreamcast. I think the PS2 was built more for eye candy.

  4. Mod Parent Up. by bludstone · · Score: 3, Insightful

    Yup. This is why sony cant sell anymore PS2s. Theyve already reached full market saturation. Everyone who wants one, has one.

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    1. Re:Mod Parent Up. by Pluvius · · Score: 4, Insightful

      Not quite. I know at least one person who's waiting for the price to drop before getting one. But I'd say that the natural peak for PS2 sales has passed.

      Rob

  5. Market Saturation by jbfaninmo · · Score: 2, Insightful
    Haven't they sold like 50 million of the things? Is it possible that sales are dropping off because there isn't all that many people who don't have one that want one? And considering that they don't make money off of used console sales, it's not hard to believe that profits are starting to drop off.

    Sony needs to watch itself, and not pull a Nintendo. Nintendo was on top and then got stomped by the new guy, Sony. Sony's got the oldest console at the highest price. They need to avoid becoming arrogant.

  6. My thoughts by josh+glaser · · Score: 3, Insightful

    First, Sony really needs to lower the price. Soon. The PS2 is the least powerful of all the three major consoles (it's more than beginning to show it's age) and yet it's the most expensive. This year is a big year for the PS2, with many high-profile games. I think they should drop the price to at least $149 ($129 would be better, but Sony knows they just need to match the Xbox, so...). Second, Sony should build a PSTwo. You know, a smaller, cheaper version. They should price it at $99 (generous for Sony, but here's hoping...that's also the "impulse buy" price point, and if they price it there, some PS2 owners will pick one up) and release it around Christmas. Finally, they should hurry up with the PS3. Some will disagree, to be sure, but as I said before, the GC and XB are really showing their advantages, late in the game, but age is only emphasizing the PS2s flaws.

  7. PS2 losing ground... by Anonymous Coward · · Score: 2, Insightful

    I work at a GameCrazy in suburban Chicago, and I think that one of the more major reasons for this drop in sales is the Xbox. Shoddy quality hurts them too...

    Since the XB price drop and Halo Xbox, that's all we sell. For the last 2 weeks we have only sold 2 PS2 units, and we have had multiple people come in to trade in their PS2 and game collection for an Xbox. I have personally handled about 10 of these type of customers in the past 2 weeks, a quite unprecedented amount of switchers. For some reason, the Xbox has become a hot commodity. Now, I'm not a fanboy of any current system (I sure love my DC though!), I'm just trying to report on trends. Combine this with the good chance that EA games will be Live this year, and things are starting to turn for Sony.

    Added to this is the numerous customers I have come in complaining that their PS2 won't read a certain type of disc anymore, or maybe their PS2 doesn't read any discs. Some of these customers have only had their PS2 for a year or less, and a significant amount ditch their PS2 for a different system, following the lines of older audiences going for an Xbox, and younger people going for the 'Cube.

    Yes, Sony still has the largest game library, but the 'Cube does have superior exclusives and connectivity, and the Xbox games library is gaining at a healthy clip.

    I agree with some earlier comments that Sony does need to stop resting on it's laurels, and attack the market again. FFXI did not turn out to be the killer app that Sony was hoping, and being the most expensive console in the market hurts, especially when you also have to add $25 to your console price just to save games.

    Maybe the 2 console rule is true. Maybe no company can be successful for more than 2 generations. All I can comment on is my own experience in video game sales. Take it for what it's worth.