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Sony Ships 2 Million PS3s, May Still Miss Goal

Despite the news (at Gamasutra) that Sony has already shipped 2 Million PlayStation 3s, Next Generation reports that analysts are still doomcasting Sony's early next-gen efforts. The Japanese investment firm Nomura is now saying they expect Sony to be able to ship approximately 4.5 million PlayStation 3 units by the end of the fiscal year in March. This is only 75% of the company's stated goal. From the article: "Despite early manufacturing issues and a subsequent European delay, Sony has maintained that it will still ship 6 million PS3s worldwide by the end of its fiscal year. The company recently said that it met its goal to ship 1 million units in North America by the end of calendar year 2006. NPD Group reported last week that the console sold 490,700 units in the US in December, with 687,300 sold life-to-date in the region." I think it's still a mite early to say what's going to be happening in March, but there are a lot of unhappy investors listening to these reports right now.

29 of 173 comments (clear)

  1. BFD by supabeast! · · Score: 4, Insightful

    Sony needs to worry less about shipping PS3s and worry more about selling the ones that are already out there. If some really cool games don't ship this year the PS3 could just end up as another expensive game system nobody could justify buying.

    1. Re:BFD by AKAImBatman · · Score: 2, Interesting
      If some really cool games don't ship this year the PS3 could just end up as another expensive game system nobody could justify buying.

      To a certain degree, the same is true of the Wii. We're halfway through January now, and the majority of games on the horizon are Virtual Console games. That means that the hefty Gamecube library (of games most Wii owners haven't played) is holding up the value of the console. If the demand for the console wasn't keeping morale so high, you'd already be hearing grumbling about when new games will be coming out. The $250 price tag certainly wouldn't be convincing consumers to buy it just to play Gamecube games.

      The only difference is that Nintendo managed their launch a lot better with greater supply, lower price tag, and a wider variety of cool games. Sony is scrambling only because they mis-managed their launch with a poor game selection, high price tag, and low availability. Things will get interesting next Christmas when both consoles have well-stocked libraries and lower price tags. Don't think for a minute that Sony isn't going to flex its market muscle and deep pockets at that time.

      That being said, I think of lot of the PS3's eventual muscle will be deflected or absorbed by the XBox 360. Which would leave the Wii in a much better position. My only message to Nintendo is this: Don't get cocky!
    2. Re:BFD by Branko · · Score: 2, Insightful

      SDK is hardly available

      And if PS2 SDK is any indication, it will be of less then ideal quality.

      This is exactly why MS has a chance at beating Sony in the next-gen console war. Multi-threaded programming is hard as it is, but Microsoft is at least providing developers with tools that do not make it even harder.

    3. Re:BFD by AKAImBatman · · Score: 3, Insightful
      Sony's pockets aren't that deep at the moment.

      They're still far deeper than Nintendos. Even if they don't have the cash reserves, they have sufficient credit to do nearly anything they need to do.

      Personally, I hope the entire executive staff (also known as "pond scum") are evicted from their positions and replaced by a newer, more consumer-friendly bunch, but I don't think that's going to happen. At least not for a while. Which means that Sony will continue with their age old strategy of attempting to steamroll the competition.
    4. Re:BFD by GeckoX · · Score: 3, Interesting

      Yep, this is par for the course for a new Sony console. The only thing that _might_ make this fail is the other consoles. As for this release though, there are never many great games available when a new sony console comes out. This is for a number of reasons, but most revolve around the more complicated system they always end up putting out. It takes a couple of years to learn how to squeeze everything out of a new piece of sony kit.

      There are always a certain number of people that buy a new PS immediately, but they've never had a console that just flew off the shelves at launch. They're like the locomotive in the industry, take a long time to get moving, but once they are look out. Prices fall, footprint reduces, games come out in droves, sales grow and grow and grow.

      IMHO, all we can tell at this point about the current state of the consoles is this:
      a) It's too early as usual to weigh in on Sony, but the indicators show similar success to previous launches.
      b) MS is in a typical holding pattern. Picking up more sales due to the timing of games being available and specifically, a couple games that the japanese market is actually interested in.
      c) The Wii is off to a great start...time will tell, but unless they screw up the games coming down the pipe in the future, it should be Nintendo's most successful console to date.

      Don't expect much to change for at LEAST another year. Now taking bets on how many articles on this subject we'll see here within that time...I think we're already well over half a dozen ;)

      --
      No Comment.
    5. Re:BFD by twistedsymphony · · Score: 3, Insightful
      They will ship a few "cool" games this year. They mainly still only have their core franchizes however. Nothing much on the lines of new ones. My guess is that if they can get FFXIII (yes, we really are up to 13) out relatively soon they should see a nice boost in sales, combine that with other things like Devil May Cry, Dynasty Warriors, etc etc, and they might stil lhave a shot.
      I agree that FFXIII would deliver the much needed boost however isn't that game more of a 2008 release? considering FFXII was just recently released XIII probably wont be out for at least another year, probably even longer considering it's a generation jump. And then comes the question if it would still be a PS3 exclusive if the sales haven't improved enough by that point. Devil May Cry would certainly help but that's another one rumored to be going cross platform, Capcom is making kissy faces with MS right now after the success of Dead Rising and the good response so far of Lost Planet (which is based on the same engine and DMC4 BTW). Dynasty Warriors is a full fledged cross platform title now, and has already enjoyed 2 released on the 360. Their best bets are MGS4 and Tekken6, but even those probably wont see light until about November and it's doubtful if even those titles could move a $600 console without a solid library to back them up.
    6. Re:BFD by 0kComputer · · Score: 2, Informative

      Your post is utter bullshit. How the hell it got modded interesting is beyond me.
      There are always a certain number of people that buy a new PS immediately, but they've never had a console that just flew off the shelves at launch. They're like the locomotive in the industry, take a long time to get moving, but once they are look out. Prices fall, footprint reduces, games come out in droves, sales grow and grow and grow.

      Yet, the PS2 initially sold well partly on the basis of the strength of the PlayStation brand and its backward compatibility, selling over 900,000 units in the first weekend in Japan - this is not the same as whats going on now.

      unless they screw up the games coming down the pipe in the future, it should be Nintendo's most successful console to date.
      I highly doubt the wii, or any console is going to sell better than the first Nintendo system did back in the mid 80's.

      --
      Top 10 Reasons To Procrastinate
      10.
    7. Re:BFD by DarkJC · · Score: 2, Informative

      To be fair..

      1. Very few failures in backwards compatibility (especially compared to the 360).
      2. Lower resolution? What? All PS2 games play at their original resolution. There's some issue with certain games but it has nothing to do with resolution.
      3. I've yet to hear reports of the PS3 overheating, except for the crappy demo kiosks, and I assume that's because they're starving for air in their closed space. No reports of PS3s overheating in peoples homes as far as I know.

      Honestly, the PS3 is a great piece of launch hardware, especially compared to the 360 which was abysmal at launch (returned 360's galore) and still tends to have many problems (I still hear stories of people who are on their 3rd+ 360, nothing like that about PS3). I'm not saying that everything PS3 is perfect, there are issues, it's just that you didn't really mention any of them.

  2. I know where they can get some by Just+Some+Guy · · Score: 2, Funny

    That's OK. There are plenty sitting on the shelf at the local Wal-Mart that they could probably ship to less apathetic areas.

    --
    Dewey, what part of this looks like authorities should be involved?
  3. Couldn't resist by rlp · · Score: 4, Funny

    So Sony's got a wii problem with their next-gen console.

    --
    [Insert pithy quote here]
  4. So what? by the+computer+guy+nex · · Score: 4, Informative

    I went to purchase the newest Warioware game for Wii last night and saw a half dozen PS3's sitting on the shelves of my local Best Buy.

    Who really cares how many consoles have been "shipped" ?

    1. Re:So what? by UbuntuDupe · · Score: 2, Insightful

      Who really cares how many consoles have been "shipped" ?

      I care -- if the console you're talking about is the Wii, which has been selling out everywhere with no end in sight.

      Luckily, I got one at launch, but what's keeping Nintendo from meeting the demand?

    2. Re:So what? by Thansal · · Score: 2, Insightful
      what's keeping Nintendo from meeting the demand?


      same thing that happens at every launch. Being able to produce enough units to satisfy launch demands would require one of two things. Either create the required number of units before hand (and just store them), or make sure your production facility can keep up with the inital demand.

      The First idea is silly, once you have units that are sale ready, you almost always want to start shipping (storing them takes money, and the only reason nto to ship is if you could drive up demand high enough to counter balance that cost, something that is unlikely, especialy if you are not going to jack the price artaficaly).

      The Second is also silly, though slightly less obviously so. If you production system can actualy churn out the number of units required, then you will end up with a production system that will go to waste once the demand dies down, and thus your inital investment required to get it up and running is really a waste.
      --
      Do Or Do Not, There Is No Spoon, There Is Only Zuul. Everything in the above post is probably opinion.
  5. ATTN: Slashdot Editors by skymt · · Score: 3, Insightful

    Please stop reporting on the numbers that analysts pull out of their hats. It's not news, it's a guess. /dev/random would be just as good as these clowns at predicting sales numbers.

  6. Shipping more? by dreemernj · · Score: 2, Insightful

    The mountain of 60 PS3's piled up inside the front doors of the local Best Buy for the past week tells me that shipping them should not be as high a priority as giving people a reason to buy them.

    --
    1 (short ton / firkin) = 89.1432354 slugs / keg
    1. Re:Shipping more? by nonsequitor · · Score: 3, Informative

      *lowers voice to whisper* Those are display boxes, they don't actually have a console inside of them.

    2. Re:Shipping more? by YU+Nicks+NE+Way · · Score: 2, Insightful

      Bingo! Give the man a carrot!

      That's called an "in-store display".

  7. 9 weeks by thatguywhoiam · · Score: 2, Insightful

    We are 9 weeks from the launch. Some perspective is needed.

    --
    If Jesus wants me it knows where to find me.
    1. Re:9 weeks by nick_davison · · Score: 2, Funny

      I hear things get significantly hotter in another 1/2 week. Patience my man, patience.

  8. Doomcasting? by 2008 · · Score: 3, Funny

    That sounds awesome. What level do I have to be to cast that spell?

    --
    I quit!
    1. Re:Doomcasting? by Kjella · · Score: 4, Funny

      That sounds awesome. What level do I have to be to cast that spell?

      Level 14 Market Analyst
      + Bonus to dexterity for rapidly being able to shift your position
      + Bonus to constitution for spouting bullshit all day
      + Bonus to charisma for being a sweet talker. Extra bonus for tech mags
      - Penalty to strength since you just talk, you don't do anything
      - You're an insult to intelligence and wisdom

      Still want to play?

      --
      Live today, because you never know what tomorrow brings
  9. Here we go again by Itchyeyes · · Score: 2, Informative

    I'm amazed at how people still don't understand the concept of "shipped" units and how it pertains to sold. The vast majority of units sold will be sold through retailers using something called just in time inventory. They monitor how much of a product they have and how fast it is being sold and and use that to calculate when they will need to order more of a product and how much of it to order. If consoles are sitting on shelves then retailers aren't ordering any more from manufacturers. There is a small amount of lag there, but over the long term the method is plenty accurate (notice how nobody is comparing shipped PS2 units to sold PS2 units even though there are probably ten times more PS2's than PS3's sitting on shelves). The margin of error is negligible.

    For console manufacturers shipped is sold. Since they have no control over the retail chain, their most accurate measurement of how consoles are selling is how many they are selling to retailers. This endless discussion over shipped vs sold is just plain ignorant. It's a perfectly acceptable method of tracking your inventory.

    1. Re:Here we go again by grogdamighty · · Score: 3, Informative

      And your post, if not ignorant, is at least as naive.

      While shipped==sold in the longterm, this is not necessarily true in the short-term. What we have here is the rather unique situation of a console launch, where console makers produce as much as they can and retailers get as much as they can to sell. At this point, made==shipped. On the other hand, if shipped != sold (or close to it) in this time period, it becomes apparent that demand is not as high as it should be - which is what is happening right now. Considering their original estimates of shipping 6 million by March assumed (as Kutaragi said) that 5 million people would buy the PS3 even if they didn't make any games for the system, it is fairly clear that a low demand (as seen in low sales) now will equate to an eventual lower shipping rate (with a lag between the launch and when retailers realize they're not selling out their whole stock).

      --
      My other sig is funny.
  10. Re:Good bye, Sony by mgblst · · Score: 2, Funny

    Yes, Segas two pronged attack of the 360 and the Wii seems to be having a great effect. It was very clever of the Sega to break up into two companies, Microsoft and Nintendo.

    Heh, I loved the dreamcast as well, but lets not get away with ourselves here.

  11. Re:Prize For Best Made Up 'PS3 On Shelves' Story by greenrom · · Score: 3, Informative
    Ten bucks off your next Xbox 360 defective unit replacement fee for the Xbot with the best and most inventive 'I saw unsold PS3s' story!

    You might want to adjust your prize. Right now the defective unit replacement fee is $0. I bought a 360 at launch in November 2005. I think it was supposed to have a 90 day warranty. Last week mine started locking up after a few minutes of playing it. I think a fan quit. Anyway, I called Microsoft and they're replacing it for free even though it's over a year old. The phone rep said that they're currently treating all 360 units as if they were under warranty no matter when the unit was purchased. Maybe they have a design defect. Maybe they're just trying to compete with better customer service. Either way, I was happy.

    I don't have a good "PS3 sitting on shelves" story, because I haven't seen any so I guess I wouldn't win the prize anyway. There really haven't been enough PS3s shipped to gauge demand. I don't think the PS3 will be the next Dreamcast. Even if there isn't enough demand at the current pricing levels, Sony will probably drop the price after doing some cost reductions. Still, I don't expect PS3 to reach the same marketshare as PS2. PS2's dominance of the market would be hard for any console to top.

  12. Re:Prize For Best Made Up 'PS3 On Shelves' Story by UbuntuDupe · · Score: 2, Insightful

    I have a better idea. How about someone post one of these:

    -A picture of an unsold Wii in a store.
    -A Wii ebay auction (not buy-it-now, an auction) ending at or below retail.
    -A PS3 ebay auction WITH ACTUAL BIDS ending above retail.

  13. Re:Games? by Anonymous Coward · · Score: 2, Informative

    You're the first person I've ever heard referring to Mario as "complicated". I will admit that it has gotten more involved and complex with the transition into 3D, but now the game itself tends to be broken up in such a way that you can accomplish small goals in ten minutes or less. That's why there are 120 stars in SM64, and 120 Shine Sprites and all those blue coins in Super Mario Sunshine. You get one, you save, you're done if you want. No level in that game takes more than ten minutes to play unless you get into the die-restart cycle.

    And those die-restart levels and the more involved ones (Super Mario Sunshine's "Yoshi's Fruit Adventure", I'm looking at you...) don't have to be completed. You can finish the game without them. It's just more challenge levels for completionists.

  14. Re:PS3 is an excellent console by poot_rootbeer · · Score: 2, Informative

    The Wiimote is interesting technology but I don't think they will have a monopoly on the design/usage of a pointing wand for very long.

    Given the number of patents Nintendo holds on the technologies and design elements of the Wii Remote, it could very well be a while before any other console has a controller that can match it.

    And even if there eventually is one, I don't know that the first-to-market phenomenon could be overcome. Today, if a publisher wants to build a game around touchscreen input, they're going to target it to the DS. If they want a game focused on spatial control, it's going to be a Wii title. I don't know what kinds of incentive the competition is going to be able to offer publishers to get them to switch away from Nintendo for those types of titles.

  15. They missed the important holiday season. by vakuona · · Score: 2, Interesting

    That is why you are likely to see lots of inventory. I for one would love to get my hands on the PS3, and I shall, but right now I do not have the cash. Had it been available before Christmas, I would probably have rearranged my spending to be able to get one. I shall get one this year.

    I am not much of a Sony fan, but I like their console. I like the fact that they have put that much effort into making the best all round console. Sales shall pick up, no doubt, especially with the inevitable price drops. The PS2 still sold strongly, and was the best seller over the holiday season. Next season, Sony won't be competing against itself, and then we will see the true picture. The lack of the library was a big issue for Sony, but next season, their library will be much more comprehensive.

    I shall not be getting the gimmicky Wii, or the Xbox. I prefer the PS3 to the Xbox, and like the fact that I can also install Linux on it. Beat that Xbox. The Wii will be killed by its longevity, or rather lack of (IMO). Sony's PS2 has had extremely good legs, and has been the best selling console, well, since the Dreamcast launch. It shall pass the baton to the PS3. At least that is my prediction.