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October NPD sales: the console market is all about pricing

Ars Technica writes, "The flagging economy hasn't affected game or hardware sales in the US... yet. The NPD Group has released its sales numbers for October, the first month in the all-important fourth quarter, and they remain impressive across the board. Sales are up 18 percent over last year, and year to date numbers are up 25 percent. If lower consumer spending will affect gaming, it hasn't happened yet.

Oh, and the Xbox price cut? It's starting to help. Let's look at just how much."

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Silogon3313d ago (Edited 3313d ago )

The Ps3 has needed a price cut for 2 years now. It's at an absurdly over priced price. Sony acts like the systems case was cut from rare gems. Cut the $#T Sony! It's time you own up to defeat and cut the price of your system so some consumers can feel like they've won. Your actions are not only egotistical, but they're also stupid.

Without a doubt in my mind... If the Ps3 was even 350 bucks it'd be outselling the wii. no doubt about it.

TheExecutive3313d ago

it needs a price cut but it isnt overpriced. There is enough in the system to justify 399 or 499. However, if you are just using the gaming aspect of the system it is WAY overpriced. '

I whole heartedly disagree with the statement that "the console market is all about pricing". If that was the case the PS3 would be dead in the water, which it is not. It is selling more than the 360 in the exact same time frame.

They need to have a price cut and i cant help feeling the ps3 is kinda like a beta for the ps4. The cell, bluray, and online all kinda make the ps3 both relevant and like a beta.

green3313d ago (Edited 3313d ago )

Really...So a 50 dollar price cut will make a console jump from 190,000 to figures close to 900,000 a month in sales.

Genesis53313d ago (Edited 3313d ago )

For some it's about price. For me I will pay a little more for quality and reliabilty. I just don't buy cheap electronic anything. Any cheap electronics seem to fail more often than a nice brand name one made with better quality components.

CEO OF N4G3313d ago (Edited 3313d ago )

The ps3 dose not need a price cut yet.It is the most expensive HD console in the market and it has been giving the 360 a hard time.Last month was the only time the 360 outsold the ps3 by a BIG amount since the price cuts.If sony price was £250 its sales will be close to wii sales.I know MS price cut helped but the truth is that a HD console that is that cheap should be matching the wii and it is not.But credit to MS because they are giving sony a run for there money this time around.The 360 is not going to end up like the Xbox.

SRU96003313d ago (Edited 3313d ago )

In my opinion, the lack of AAA exclusives, multiplatform games performing better on the 360 and high price tag hurt the PS3 right out of the gate.

A couple of years later and it still costs twice as much as the entry level 360, many multiplatform games still perform better on the 360 (or certainly at least equally) and the PS3's exclusives are not proving to be huge system sellers.

Sony is in serious trouble, and the struggling economy is only going to make matters worse for them.

morganfell3313d ago (Edited 3313d ago )

The PS3 may not need a price cut. You don't know and I don't know. Sony is the only one that knows if they are hitting their sales predictions and are satisfied their current plan is on track. That doesn't mean they don't want to sell more. But they may be comfortable that production costs, profits, and sales are within set boundaries. We can all surmise, we can guesstimate, but we just do not know. The price cut is constantly called for by

1 - People that can't afford a PS3
2 - People that do not work on Sony's board of directors and have no idea
3 - Self appointed industry "experts"
4 - People that are so US Centric they do not pay attention to world wide sales figures
5 - People that are shortsighted and math inhibited enough to think the 360 is cheaper in the long run

Mainman3313d ago

I dont think the PS3 will get a price-cut during the holidays.

The PS3 has a great line-up of games, it can survive the holidays without a price-cut. Remember, Sony is seeing this race as a marathon.

ultimolu3313d ago

You wanna call that overpriced? Try paying $600.00 last year. The console was a lot more expensive last year than this year. Until Sony lowers the costs of production, they can't lower the price. And if they do it now, they risk losing money.

Demand exceeds supply.

mirroredderorrim3313d ago (Edited 3313d ago )

I agree with you, partially because Blu-Ray players are coming down in price and that was the most expensive aspect of the PS3(?)

I think a Price Drop will come next year because I also think Sony is trying to ride 2008 without a price drop, at all.

That kind of thinking can go both ways. It saves money but it could also prevent you from making new money too.

In the end, think it'll work out, and for those of us who want a price-cut to initiate taking the plunge and buying one, maybe it'll work out for them, for some people, it's all about waiting patiently.

Sarcasm3313d ago

@1.6 Morganfell

I don't need to post. Everything is right in there.

Bodhi3313d ago

The most intelligent thing for Sony to do right now is hold off on a price cut before the holidays and see how much profit they get out of the holiday season. The problem with that still is that people may still think it's overpriced and not as many people would buy it because of the price.

The most logical thing to get sales and profit is to either:

A. Drop the price slightly, $50 dollars will do, or bundle the PS3 with Blu-ray movies and games to attract sales

B. Market the PS3 completely and risk losing money on marketing to reap income from sales

Sony can do well without a major price drop this holiday season, but if they don't move too many consoles, it'd be crazy not to drop the price in 2009 as the other consoles will fly by the PS3.

3313d ago
joeblk103313d ago

All you have to do is google it and there are numerous articles on this recently from reputable sources. Sony themselves reported this as recently as May. And pardon me for not being specific. They are losing money still in their gaming division. I'm not sure about the rest of the company but as most companies do they track the profitability of individual divisions. This is stuff you learn in intro level business classes but as another fanboy you probably wouldnt know anything about that. Again, this information can be found by simple searches. Microsoft has lost tons of money due to warranties yes but they have reported profits in their gaming division for the last several quarters. If you want to play the whole company game.... Microsoft is approximately 10 times bigger than Sony as a whole because of its software.

morganfell3313d ago

I love ridiculous made up comments like joes. Sony's game division knows what they are doing. That was the bright spot in Sony's latest financial. It takes money to make money and Sony isn't interested in throwing some cheap breakdown piece of crap at the public.

Mini Mario3313d ago

"I dont think the PS3 will get a price-cut during the holidays.

The PS3 has a great line-up of games, it can survive the holidays without a price-cut. Remember, Sony is seeing this race as a marathon."

Thats all well and good but the race might be over by the time they finish.

Im guessing ur talking about the "10 year" plan sony have. A console usually has a 5 year peak then fades out, so to me ten years seems a bit long. I mean u guys dont seem like ppl that play games that have 10 year old graphics.

Judging from what u say about the wii of corse.

And if u say "well the ps2 still sells". Well im sure it does but do u still play ur ps2>? Coz if u do then i wouldnt complain about the "wii" graphics.

+ Show (12) more repliesLast reply 3313d ago
belal3313d ago

just wait a bit when the pricecut comes ;) the ps3 will sell atleast 300k pr week!

The Matrix3313d ago

Obviously a system is going to sell a lot when it's the cheapest of all the consoles. Wait until all the prices are similar and then we can find the true winner.

But Microsoft made a good business move by dropping the price on the 360.

InMyOpinion3313d ago

Going from having the best selling console (PS2) to being in third place (PS3) isn't exactly "doing a great job".

Bodhi3313d ago

Jenzo, exactly right. Doing great would be Nintendo, they went from 3rd place (Gamecube) to 1st place. (Wii, DS)

Nintendo is practically swimming in money for using innovative controllers and attracting the casuals.

Microsoft was always 2nd, in this console war and the last console war. Discontinuing the Xbox may have been the right decision as it's library wasn't the strongest out there and it's hardware cost to much to produce.

Sony on the other hand went from best selling console to date (PS2) to least selling next generation console to date. (PS3) Sony is slowly picking up steam but Microsoft dropping prices and marketing left and right is making Sony's job a lot harder.

Microsoft and Sony have completely stopped trying to get up to the Wii's status in sales and are fighting each other for 2nd in the console war.

This console war is a lot more interesting then the last by far...

BYE3313d ago (Edited 3313d ago )

@Jenzo:

Doing a great job is about making profit, not selling more units for whatever it takes. And the PS3 obviously makes Sony more money than the 360 makes Microsoft.

joeblk103313d ago

Ceekay... your ignorant and an uninformed fanboy. Sony is still losing money on every PS3 sold so they cannot afford a price cut. Microsoft on the other hand is still making a slight profit on every 360 sold even after the price cut. Couple that with the larger attach rate per console, which is where the real money is, and your looking at the reason microsoft is in the black now while sony is in the red. Even the still profitable ps2 at present cannot recoup the heavy loses they are currently taking from the ps3.

Billabong3313d ago (Edited 3313d ago )

Do you honestly know that Sony is losing money of every PS3? I mean, are you 100% sure? Are you calling somebody else an ignorant fanboy when you yourself are just listening to other fanboys about Sony losing money? I mean, I don't know for sure that they aren't, but I read that a LONG time ago.. they could well be making profits now. Microsoft had to pay billions for their dud boxes, losing a lot of money in the process for that. Sony know what they are doing, they WONT drop the price until the sales of the PS3 are under what they expect - its that simple. Sony are not in any trouble, they aren't in the 'red', theyre sitting comfortably. It's not about sales numbers here, realize that.

You must also realize that Sony don't just make Playstations. If the PS3 is losing money, that comment with the PS2 not even paying for it is completely stupid. Sony are one of the biggest entertainment companies today, and you think they only have the PS2 to pay for losses?

Mini Mario3313d ago (Edited 3313d ago )

"Microsoft and Sony have completely stopped trying to get up to the Wii's status in sales and are fighting each other for 2nd in the console war.

This console war is a lot more interesting then the last by far... "

Yeh i had all 3 last gen and i gota say it really is different this time round. Its funny nobody really cared last time because no1 was interested in the cube (even tho it had great games and was completely underated), and ppl were still a bit iffy with the xbox.

But now all of a sudden the "sales" count are so important to pplz (certain fanboys at least). To me it makes no differnce i can get any game on any system because im not blinded to one console and can see that all systems have games worth buying.

Its much more interesting because sony have never been on the bottom and i really think its what they needed. As soon as they tell ppl they need to "work alot of ovetime" to own their machine they are gonna lose a few ppl. I think they lost their "casuals" and just got left with the "core"...

As mush as "core" sony fans will argue with u until they are blue in the face in denial, yes the ps2 and 1 had ALOT of casual titles (hana montanah, shrek party, singstar, buzz, eye toy, dogz, carz, horsez, DOA volleyball lol they were all there, just look at a target catalog). And they sold well, if u look at the top ten over $50 alot of those casual titles topped the charts...

Dont believe me>? Do a little research and prove me wrong....

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yoghurt3313d ago

siligon how can it have needed a price cut for 2 years? it has only been out 18 months in the UK. I agree with the executive, it is not overpriced for what it is, it is great value - however, it is overpriced for the average consumer who 1) doesn't look into what you get in comparison to other consoles 2) just want a cheap gaming only machine

I'm sure if every consumer had a comparison list of consoles + any needed add-ons + had the hardware explained such as blu-ray etc then more would buy ps3. The problem lies with Mrs Robinson goes into game/gamestop and says I want a console for my boy for christmas, and the bloke behind the counter says yep, get this, only £140 or whatever, wow, thats cheap, yer cheaper than ps3. ok i'll take it. job done.

xaviertooth3313d ago

oh c'mon, you believe this non-sense guy? don't waste your time, just move on to another thread.

Bob Dole3313d ago

He only has 2 bubbles, he can't answer you!

PirateThom3313d ago

If it was all about price, 360 would be outselling Wii.

It's not even about games, or 360 would be outselling Wii.

poopsack3313d ago

yup i hate hype, and trends, which is one of the reasons i bought a wii, besides thinking it had great games which i was wrong about. Ive basically played most wii games older iterations on gamecube and enjoyed them more on gamecube, except RE4. which i loved. but alot of people fall into this hype and trend, play wii sports for a month, and get tired of it.

ultimolu3313d ago

Exactly Thom. The 360 should be pulling Wii numbers if it was about the price. The Wii stands at $250.00 at least with no pricecut and it's killing both consoles.

Captain_Sony3313d ago (Edited 3313d ago )

"play wii sports for a month, and get tired of it. ". Yes because when anyone buys a game that game lasts forever right? That was a really stupid point when you read it a year ago and it still is a stupid point today. NO game lasts forever and WIi software sales prove its selling games. I just wish you haters would get real world experience with Wii and actually get a clue about it before you go off spouting what is obvious BS to people who already know what you are saying is false. I just do not get why people expect WIi sports to still be a fresh new game 2-3 months out when that doesnt happen with any other game.

Sarcasm3313d ago

@Captain Sony

Resistance 1, servers still packed with plenty of people playing it. Been Two years out.

Call of Duty 4, still packed since launch 2007.

Gears 1 since 2006 still plenty of people playing it.

Halo 3, still packed and probably more than ever.

I can go on with a gazillion more examples.

Fact is, the Wii does not offer ANYTHING along the same lines as those games.

Bodhi3313d ago

The key to Nintendo's success thus far is due to it's innovation in the field of console gaming. Complete motion controls and balance boards are not very common in the gaming industry, people are willing to experiment with new innovations. Wii's hardware and software are prime examples. Wiis are flying off the shelves faster then you can say, "The."

The highest selling software that the Wii has currently is anything that was bundled in with the Wii, carries the Wii name, has new innovations to it, or Mario.

Wii Sports - 32.06 m
Wii Play - 16.23 m
Wii Fit - 9.98 m
Mario Kart Wii - 9.42 m
Super Smash Bros. Brawl - 7.29 m
Super Mario Galaxy - 7.26 m

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