Originally Posted by WickyWoo
It's not that demand is drying up, it's the production is finally meeting demand combined with after Christmas bills, and massive returns by system scalpers (as many as 7 per store).
Retail traditionally craps in January, surges will be back for the president's day sales, and then again when the college kids have their summer job money
Production start for the PS3 can be traced back as far as Mid July, and as much as Sony says that they managed to iron out ALL of their production problems, I doubt it. I don't think any other manufacturer has done what Sony did for the holidays. Instead of a several week delay in getting more units via surface shipments Sony sent God knows how many PS3's via AIR, which is incredibly expensive. Unfortunately for Sony that brief 1-2 week period KILLED most of the hype and the fact that PS3s were not as rare as everyone anticipated (I picked up mine on december 23rd with no hassle) killed the buzz, big time.
Now everyone is saying that it's not "lack of demand" but an overproduction!
lol, yeah right.
The fact that the Japanese sales are extremely tepid should be the ultimate barometer for the overall short-mid-term health of the PS3. The Japanese are very loyal (and traditionally have been fanatical to Sony's previous offerings) and also love gadgets and electronics. For the PS3 not to sell out is not good news for Sony.
Everyone also keeps on thinking that sales in Europe are going to be gangbusters, but also forget that the Europeans are going to be paying the most for the PS3 and they are already pist at Sony for shafting them in the initial launch AND, most importantly, the PS3 hype has been deflated by the North American/Japanese launch and the incredible (real) complete sell out of the Wii in Europe.
Ultimately, I am angry with Sony for sacrificing it's incredibly profitable games division just to shove Blu-Ray in everyone's face. Face it everyone, if it were not for the choice of putting the Blu-Ray in the PS3 (a decision that was made early on according to game developers), then we would not have this stupid format war, as Sony most likely would have come to some kind of compromise with the HD DVD camp and the new "HD" format would have had time to progress naturally to be incorporated in the NEXT generation game systems.
As it stands now, Sony -may- win the "HD" format war, but at such an incredible cost it may ruin them.
Don't think so? Sony is a big corporation you say?
Well, Sony's greatest profit and revenue has come from the Playstation line. They also enjoyed being the market leader for almost 10 years. They had clout and power. Both of which are now almost totally gone in one fell swoop. Sony now only LOSES an incredible amount of money on each PS3 sold; money that will take an incredible amount of game and BR sales just to BREAK EVEN. The worst part is that the PS3, as it stands right now, is considered to be an overpriced system with no good games, let alone games worth the $600 price tag. No "breakout" games for the PS3 are coming out till December 2007, and then they will still be in short supply. In the meantime, for an entire YEAR, Sony has to build it's brand on lackluster games, extremely few exclusive games, a very high price tag, and the constant comparison to the 360, which in the games so far released on both the 360 and the PS3, there has been no difference, or a difference in favor of the 360.
So by the time interest builds up again for the PS3, it will be deflated by an obvious price drop by the 360 (and most likely the Wii as well) as well as HALO 3.
You see, the PS3 cannot be anything BUT a success. If it is anything less than a total success, it will fail. There is simply too much money tied up in the PS3 for it to fail. If it fails, it will bring down Sony.
Sony can only bring down production costs by PRODUCING more PS3s. If demand is not there, Sony cannot afford to stockpile systems until the demand is there due to the high cost of production.
Sony's strategy for the PS3 was for it to sell 100 million systems over the course of the next five years. Something I don't think will be possible now.