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Why the PS3's February Sales May Be Misleading
1up's Luke Smith takes a look at February's NPD numbers, and has an observation to make about what they might mean for Sony. Though the company is almost certainly not selling as many PS3s as they'd like, the console still sold more units between November and February than a supply-constrained Xbox 360 did last year ... and despite a $200 more expensive pricetag. Though the console is certainly getting off to a slow start (and really needs great software, fast), it's still keeping pace with Microsoft's console from a year ago. "What does this mean for Sony? Considering the system's higher price point, if the platform can keep pace with the Xbox 360 through the first year (while the software matures), regardless of the installed base, the system has to be considered semi-successful. A concerning statistic between the two platforms' first January and February months is the drop-off in sales for those two months. From January 2006 to February 2006 the Xbox 360 sales trailed off 36% (250K units down to 161k units). At the same point in its lifespan, Sony's PlayStation 3 experienced a drop-off of 48% (244K units down to 127K units). That drop in sales, considering the units are available at retail, is cause for concern. Yet, despite trailing off by 25% more than its supply-constrained predecessor, the system does still cost $200 more."
I want to give my take on the issue. Analysts pull numbers out of their ass, I can do that too. I will say up front that I am heavily biased against the evil ones... er, I mean, Sony.
Sony sold a whisker more units of the PS3 than Microsoft did of the Xbox 360 during the same timeframe. But they arguably should have sold piles more of them. The size of the gaming market is increasing, after all.
I personally believe what happened is that the long wait ate up a lot of Sony customers. While people were waiting for the Playstation 3, the Xbox 360 was eating up some of those people. Less of them will therefore be buying a PS3. I think the price factor might even be less significant than this issue, except in the UK, where the cost of the system is truly ludicrous.
I believe the long wait also ate up Sony exclusives. Developers were seeing that Sony was going to be last to the party and market share was going to decline as a result. Making an exclusive makes sense when you're making it for the most popular platform in the generation. It doesn't when you aren't. The battle for this generation is still very much up in the air, of course, and Sony is simply not a sure thing in this round.
Gamers follow the games. If the Final Fantasy franchise becomes nonexclusive (only niche final fantasy titles are available on other platforms) then Sony might as well bend over and kiss their ass goodbye.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Yes, the PS3 was not as supply-contstrained in December, the key selling month, and so it is slightly ahead overall for the first four months.
So what? The first four months of the 360 were disasterous due to supply. Microsoft haters delighted in pointing out that it was wayyy behind the first four Dreamcast months. As it happens, the PS3 is also well behind the first four months of the Dreamcast. (And it should be noted that it's behind in both hardware and software, whereas 360 was only behind on hardware).
Why don't you read the article. The first four months of release, not just Jan/Feb, the PS3 sold 1.06 million units to xbox 360's 1.02 million units. Since 1.06 is greater than 1.02, it seems that Sony did in fact sell more units.
Second paragraph of the article;
"During its first four months at retail, Microsoft's Xbox 360 was supply constrained but still managed a sell-through in the U.S. of 1.02M consoles through February 2006, according to NPD figures. With suffocating supply constraints during the November launch period, Sony's PlayStation 3 still outsold the Xbox 360 during the same four-month launch window with 1.06M consoles sold through February 2007."
Crappiest != least powerful. The PS2 was plagued by laser failures, faulty parts, poor case housing, and many other issues until well into its life as a console. At the time of its release, it was arguably considered less powerful than the Dreamcast (though that debate died quickly with GTA3), and its controller was (and still is) little more than a black, modified DualShock. Mind you, the DualShock was, IMO, one of the better controller designs of the time, but that doesn't make up for the initial issues with units dying, faulty lasers, having to tilt the system up onto its side to read properly, and so on. The PS2 also sold for astronomical amounts, and at a loss, despite faulty, low-quality hardware. Case in point: My father's early-gen PS2 is dying; Laser's gone. My Dreamcast, for example, still plays everything without a hitch, and was purchased in 2001 (with a lot of usage since then, including non-standard, supposedly-destructive homebrew usage (Dreamcast GD-ROM's store data inversely to CD's; Data starts from the outside in. CD-R's, while compatible, are burnt from the inside out, causing the laser head to move more often from its default position, which logically leads to premature burnout)).
Compare with today, the Wii has decent (~X-Box Classic-alike, which aren't bad) graphics, a very slim form factor, high resilience to pain (hello, wii-mote! =D Meet LCD TV), one of the best overall first-parties behind it, an innovative, if a little mundane-looking controller, an installed user base, a broadening user base, and an extremely low price tag.
Screw the rules, I have green hair!
I can say the same thing as others. I have a first run (second shipment to the store) ps2 and it has worked fine for god, 7 years now. However I can't say that about xbox. Ever try using any of the Xboxes that have the Thompson drive?
Although the xbox may be more powerful I would defiantly say that ps2 was the best console of its generation. Good controllers, good developer support, complete backwards compatibility, number 2 in graphics (over game cube), and it made more then 3 games I really felt like playing (something I can't say about game cube of Xbox)
Honestly I didn't think anyone didn't could still believe that the ps2 didn't win the previous console war. As for the next one, the ps3 has a lot of ground to cover (somewhere around 7 mill to sell) but neither the wii of the xbox360 have the numbers to be considered a true leader yet (neither have sold over 10 mill worldwide as of yet).
I'm no sony fanboy, I just go where the good games are. I haven't purchased any of the next gen consoles yet because so far none of them offer 3 titles I really want to play.
I'm only going to compare the higher-end models, since that is what the article in question focuses on. As the article points out...the PS3 is $200 more. But the question is why? And what do you get for your $200? The answer is, quite a few things. I'm also going to assume that people who are griping about the PS3's price aren't going to upgrade the feature-set of their 360 to match it.
40GB more hard disk, BluRay Disc, built-in WiFi, built-in card-reader, standard USB peripheral interface, free Internet multiplayer gaming, and interesting extras...like the new Folding@Home...or the upcoming PS3 Home.
To purchase Microsoft's WiFi adapter and their HD-DVD drive...that sets you back $300 more...so now your Xbox360 didn't just cost $400. To reach up to what you get with your $600 PS3 purchase...you have to pay at least $700 on the Xbox360. And you haven't added your Xbox Live Gold ongoing subscription costs if you are into multiplayer online or other online content.
There are poor games and brilliant games on both side of the 360 vs. PS3 'war'. Neither console had a lot of games out initially either. So, both of those are not really talking points. But the generalization that the Xbox360 is just flat out cheaper...well...that depends on what you want out of your system. If you don't want HD movies, free online play, built-in WiFi, or any of the other extras or untapped future potential of the PS3...then sure, the Xbox360 has some brilliant games out. But I know there are a lot of players like myself that want the extras that PS3 already provides, and we can pass up "Gears of War".
The small, minor, tiny little problem Sony has is that no matter how well they're doing compared to the Xbox 360 last year, they started a year later. The PS3 has to sell as many units as the Xbox 360 did last year at this time plus as many units as the Xbox 360 is selling now. And if they do that for the rest of the year, then they will be merely tied with the Xbox 360 in November. Both will be far behind the Wii, if current sell-through rates continue.
Unfortunately for Sony, they are only barely meeting last year's extremely supply-constrained Xbox 360 sales. And by failing to meet Xbox 360 sell-through figures, they are losing ground at a ridiculous pace.
Sony doesn't get to hop into a time machine and pretend the last year's Xbox 360 sales didn't happen.
Sony is 4 million units behind Microsoft, and that gap is growing every month.