PS3 sales down 80 per cent in week two - Page 6 - AVS Forum
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post #151 of 155 Old 04-20-2007, 10:44 AM
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Quote:
Originally Posted by plasmalover View Post

They make up the difference with the continue dominance of the PS2. The PS2 for march had better numbers than the Wii and 360:

From NDP:

HW Sales

PlayStation 2 280K
Wii 259K
Xbox 360 199K
PlayStation 3 130K
GameCube 22K
Xbox n/a

Sony can take the losses from the PS3 until it gains enough market share to generate profit on its own. However, MS does not have that luxury as they totally discontinue the Xbox. Also MS lost a total of $5.1 billion from Xbox to Xbox360.

"Financial analyst Roger Ehrenberg has written a thorough article regarding the Xbox 360 in which he concludes that the Microsoft's venture into gaming has been a disastrous endeavor for the company."

When will MS own up to the Xbox bomb

Meanwhile, SNE stock is on 5 year highs with analysts predicting profitability from Playstation 3 this year. SNE stock has been on a tear the last two years, gaining almost 30% in the process while MS has been stuck for 5 years straight.

Even though PS3 sales have not been super spectacular, it is hardly a failure and it will pick up steam in years 2 and 3. Sony has a well thought out 10-15 year plan for the PS3 and I think they will stick with it. Whereas, short term thinking by MS concerning the Xbox has cause them to release a major update in 1.5 years and possibly another in 1.5 years just to match what the PS3 has right now. Along with a host of hardware failures, HD-DVD add-on issues, systems with fundamental differences, etc.


I find it hard to believe that in that 10-15 year plan they said to kill off the 20gig in 6 months time. Their actual plan was to sale more then what they have been on a month to month basis just like they said it was supposed to the last 2 E3's. Stratigies don't always go as planned. The 20gig was an example of that IMO.

The 5.0 is here
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post #152 of 155 Old 04-20-2007, 10:53 AM
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Hmm I own a Kia as well as three other vehicles. No porsche in my future.
I went with the cheapie Samsung BD-P1000 refurb deal. I have a faily elaborate sound system and use front projection in my living room.

The PS3 seems an Ok deal, I heavily considered one.
I'm not a gamer at all, zero, zilch, nadda. In the end I like the Kia and the Samsung BD player.
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post #153 of 155 Old 04-20-2007, 11:15 AM
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Interesting article. It's strange that it questions MS for going so "high end" with the 360, when the PS3 is more of a "Cadillac" in a lot of ways. I also didn't find he adequately justified his rationale for focusing only on the Japanese market.

He also avoided what I feel is one key difference between MS and Sony the game market. MS relies almost solely on the licensing fees to recoup losses from selling consoles below cost. Since Sony has it's own game software (and movies for Blu Ray), I think it's in a better position to recover these costs. They are able to count the full sale of the game toward revenue, rather than just a small portion (licensing fee). If MS is losing more money from it's XBOX venture than Sony is from the PS venture, I feel that would be the main reason. A game console is more closely tied to Sony's core business and it's other established arms. MS is a software company trying to market a hardware product that they don't make most of the sellable software for.

We'll see what happens in the future, but it was a good article to read. Just a strange perspective with some interesting choices for supporting his arguments.
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post #154 of 155 Old 04-20-2007, 01:44 PM
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Quote:
Originally Posted by yakkosmurf View Post

Interesting article. It's strange that it questions MS for going so "high end" with the 360, when the PS3 is more of a "Cadillac" in a lot of ways. I also didn't find he adequately justified his rationale for focusing only on the Japanese market.

He also avoided what I feel is one key difference between MS and Sony the game market. MS relies almost solely on the licensing fees to recoup losses from selling consoles below cost. Since Sony has it's own game software (and movies for Blu Ray), I think it's in a better position to recover these costs. They are able to count the full sale of the game toward revenue, rather than just a small portion (licensing fee). If MS is losing more money from it's XBOX venture than Sony is from the PS venture, I feel that would be the main reason. A game console is more closely tied to Sony's core business and it's other established arms. MS is a software company trying to market a hardware product that they don't make most of the sellable software for.

We'll see what happens in the future, but it was a good article to read. Just a strange perspective with some interesting choices for supporting his arguments.

I'm wondering what's microsoft's cost per console & accessories and if they're generating a profit. The thing is that they're a software company. We know that toshiba makes their hd-dvd add-on drives. Who is making their consoles. If it's outsourced to a chinese company or someone else, this could be a reason why they're slowto address their console's QC issues. Perhaps they don't have very much control over it?

Sony pay me 10 beeeelion dollars to plant blu-ray seeeeds.
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post #155 of 155 Old 04-21-2007, 01:33 PM
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I believe MS started earning a $75 profit on each system back in November. Probably higher than that by now.
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