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Sony Hit by Drop in PS2 Sales

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."

17 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 snooo53 · · Score: 4, Interesting

      No doubt. Every console has it's price point to reach different types of consumers. The way I see it for the PS2 you've got

      *Early Adopters who will pay $300+
      *Gaming Enthusiasts who will pay $200
      *Most everyone else $150
      *Cheap Bastards (like me) $25

      Coincidentally I consider myself a proud member of the last category since that's what I paid for my dreamcast. As soon as the PS2 gets into the sub $50 range I'll probably go out and get one. Advantages: I know I've got a great system for cheap. I can pick and choose the best games for cheap since they've all been reviewed and all dropped in price. Disadv: I'm 2 years behind.

      For systems like the XBox and Gamecube, they just had their price points shifted down slightly. The Gaming Enthusiasts weren't ready to shell out more than $150. As soon as they reached that point, sales surged. So while interesting, this seems like basic Demand-side economics.

      --
      The sending of this message pretty much inconveniences everyone involved.
    2. 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?

    3. Re:Perhaps it is time for a drop in prices by Merkuri22 · · Score: 3, Interesting

      Well, this gamer, while not waiting with baited breath for prices to drop (I'm getting along just fine for now with my PC games), will actually consider buying a PS2 if the price goes down. The PS2 has always been the console I knew I would buy if I were going to buy one, but it's always been just too expensive. Now while I won't wait for it to go all the way down to $25 (like a sibling post mentioned), the chances of me buying one will increase greatly if it falls below the $150 range. So there's at least one more potential PS2 waiting to be sold. ;)

    4. Re:Perhaps it is time for a drop in prices by imr · · Score: 4, Funny

      *Cheap Bastards (like me) $25
      As soon as the PS2 gets into the sub $50 range I'll probably go out and get one.

      Real Cheap Bastards wait for an emulator to be released.

  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. MS has the advantage by Mr.Dippy · · Score: 4, Interesting

    What sony needs to do is drop the price down to 160 bucks and include the hard drive and network adapter with the shiny new Final Fantasy 11. Lets see Xbox compete with its Halo bundle then?

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    -Dipster
  4. In other news by evil-osm · · Score: 2, Funny

    Olson twins shocked at poor sales of their PS2 game "Manic Mayham Mall". Sony blames Olson twins, Olson Twins blame Acclaim. Acclaim blames "Ralf" Acclaims the cuddly mascot, for peeing on the original game specs.

    Sony: "Olson twins Bad!"
    Olson Twins: "Acclaim Bad!"
    Acclaim: "Ralf Bad!"

    Bet this is exactly how it all happened.

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    E.

    Never rub another man's rhubarb - The Joker
  5. I don't own any consoles by spaeschke · · Score: 2, Funny

    But I've played all three, and I can certainly understand why they're dropping. You just don't get the bang for your buck that you get with the XBox (better hardware, better controller, better price, etc) or the exclusive titles that you get with the Gamecube. Nintendo's learned through harsh reality that you have to stay nimble in this business, Microsoft has never forgotten that, and it now looks like Sony's in need of a reminder of this truism. They've been resting on their butts and now it looks like they're starting to get bitten on them.

    1. Re:I don't own any consoles by kisrael · · Score: 2, Interesting

      take it from a Gamer thats been Gaming since the Atari 2600(a lifetime of gaming as i'm only 23)
      Take it from a gamer who has JoustPongwritten a published homebrew game for the Atari 2600....the PS2 controller sucks.

      I mean, it is a subjective opinion. Apparently some people like the thumbsticks' position, but other people think it SUCKS. I always thought the shoulder buttons were too difficult to insitinctively tell apart as well.

      I find GC and Xbox as totally ergonomic. And the dualshock always seemed reasonably sturdy. Though maybe not hurlworthy, I dunno.

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      SO YOU'RE GOING TO DIE: The Comic for Dealing with Death
  6. 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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    no .sig
    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

  7. 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.

  8. Re:good news for me if they lower prices by Anonymous Coward · · Score: 2, Informative

    http://www.techtv.com/xplay/features/story/0,24330 ,3516150,00.html

    ps2 disk fix on tech tv

  9. 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.

  10. PS2 Customer since Rollout by demo9orgon · · Score: 4, Interesting

    Playstation2 isn't worth $200 any more. I like the system, but over time I've experienced life with a planned-obsolecense hardware model which is intentionally made to keep owners touching base with the company. Am I paranoid, sure a little, but when you clean the dust out of your game console (a fan is a dust magnet)and suddenly the DVD/CD-ROM doesn't work any more and nothing will correct it you end up paying $75 and getting it "serviced".

    Anyone else have this experience? I think there's legions of "Serviced" Playstation2 owners who have been 0wn3d by that crappy DVD/CD-Rom drive but nobody is publishing numbers.

    I think the GameCube has much greater value, even though the controller is crap (SSX3--the "Y" button is a nightmare), the hardware is better and the software is worth the $$$. I wish someone would develop a Playstation2 style controller for the Gamecube. That would be a money-maker. Think I'll go check Lik-Sang.

    I've rented and beaten 90% of the games I've played on the Playstation2, other than that I have a meager library of PS1 titles and used Playstation2 games. I have only two games I've ever purchased for the Playstation2 at "new" price levels.

    My console has been in the shop twice (once every 18 mo.) and when it came back last time the controllers no longer recieve a "vibration" signal, so there's something wrong inside of it. Didn't find this out until I was out of warranty again. This recently influenced my purchase of SSX3 for the 'Cube instead of my Playstion2. My inability to purchase a "single" multi-tap and play both PS1 and Playstation2 games was another sour note. Nothing like being gouged. Customers don't appreciate $40 purchases for hardware which shouldn't be seperate. The ability to play 4 player games without being boned also influenced my purchase of "Double-Dash"...I would have rather played "Crash Team Racing" for the Playstation1 on my Playstation2--what happened to CTR for the Playstation2 is an abomination and I feel for anyone that purchased "Nitro-Cart".

    Before I pay $200 or more for another game console it's going to be more than just a DRM device, it had better talk across the 'net without requiring a bolt-on card, use a memory card bigger than 8mb (what a freakin' joke!!! Nyko makes a 64mb memory card for the 'Cube!!!), have some kind of secondary storage (memory stick or HD), do PVR duties, and use a DVD/CD-ROM which is top-loading (THIS CANNOT BE STRESSED ENOUGH!) like the Playstation1 or the 'Cube, or be something which can be easily swapped out for something that works. The DVD/CD-Rom for the Playstation2 is a showstopper--it sucks sucks sucks.

    If Sony can fix these issues, I'll be interested.
    If they can't, screw-em. I'll wait several years and buy one for $50.
    And The X-Box isn't an option.
    Why? I refuse to do business with a blatantly criminal, "Daddy Warbucks", development-house buying company.
    They have a warchest of billion$, other people can feed the monopoly monster.

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    Every new form of media has it's own Requirimento
  11. 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.