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PSP hardware shipments plummet, software up slightly

When Sony released their fiscal Q3 (Oct. - Dec. '06) financial results recently, most of the focus was on the PS3 and how the costs of its launch contributed to a massive loss for Sony's games unit. But, as the UK's Pocket Gamer points out, a massive slowdown in PSP shipments worldwide is probably just as worrying for the company.

In the three month holiday period, Sony shipped just 1.46 million PSP units worldwide, a nearly 72 percent decrease from the 6.22 million units shipped during the same period a year ago. Broken down territorially, Europe and Japan each got roughly 900,000 systems while North America saw only an anemic 10,000 PSP units shipped in the three month period (no, that isn't a typo). For comparison, Reuters reported in November that Nintendo planned to ship 1.5 million DS units to Japan in December alone.

But not all is doom and gloom in the Sony numbers. NPD data from December showed relatively healthy sales of nearly a million PSPs in North America, suggesting that Sony slowed North American shipments to let retailers sell off some of the 2 million systems shipped during the summer months. And despite the slowing hardware shipments, PSP software shipments actually rose 20 percent to 21.2 million units worldwide for the holiday season. Still, it's easy to look at this massive shipment slowdown and see the tide decisively turning towards Nintendo in the portable market share battle.

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TheMART3948d ago

Probably downcuts on PSP shipments because all their money and all their production facility has to back up the PS3.

It's a company in distress, struggling to get BluRay pushed as a format. If it fails and the PS3 fails, they're in big, big trouble. The PSP already about lost the war from the Nintendo DS although doing reasonably allright. But they won't win the war with that device.

All signs point out Sony's business model isn't right. I hope they get their act together, before they end up like Nintendo 10 years ago, or even worse, like Sega with the Dreamcast. Which isn't totally unthinkable. Their TV department also lost market share to Samsung, Philips and Panasonic.

What will save SOny?

True Gamer3947d ago (Edited 3947d ago )

Blu-ray, which will rake in Billions of dollars if it becomes the next-gen format war winner.

Also Sony is the #1 producer of LCD T.V's in the USA.

Sony also happens to be the #1 Movie Studio in the world, at least according to 2006 figures.

Lets not forget that Sony makes excellent Laptops, digital cameras, camcorders, stereo equipment, and is overall in a poll conducted recently, the number #1 most trusted brand of consumer electronics.

Conclusion: Sony isn't in trouble.

Boink3947d ago

what will save sony is listening to what consumers want.

TheMART3947d ago

False.

"Blu-ray, which will rake in Billions of dollars if it becomes the next-gen format war winner."

Blu-Ray which will take the company to go bankrupt if the PS3 fails also. It's a 50% chance they win in the end. That's a big gamble. Plus, what if people don't go to next gen by the large public? If people think DVD is enough because only 5% of all people own HDTV's?

The pioneers buying the thing don't make the profit.

"Also Sony is the #1 producer of LCD T.V's in the USA."

Link please. Plus, they can be the largest, but they lost marketshare to Panasonic, Samsung and Philips. Their costs/overhead is high and their margin is small.

"Sony also happens to be the #1 Movie Studio in the world, at least according to 2006 figures."

With 4 movies in the top 50 or so? They're large, but that won't save the whole company.

"Lets not forget that Sony makes excellent Laptops, digital cameras, camcorders, stereo equipment, and is overall in a poll conducted recently, the number #1 most trusted brand of consumer electronics."

Oh, like the laptops with exploding batteries they had to take back in millions last year? Like the PS2 with the sh!tty DVD drive that gave up on people within a very short time?

"Conclusion: Sony isn't in trouble."

Did you even look up their financial situation? Red marks already since years, Q1 2006 already 600 million dollar loss, even without the big amount of money to be used for the PS3. A multimillion dollar bankloan they had to take because they probably couldn't get shareholders to get the money. Loosing 3 billion dollars every 10 million PS3's sold. Selling at an attach rate of 1.5 per unit games sold @ launch, having free online service, thus no income there also.

Sony is a company in distress. I gave you info and details and you come up with general stuff. Try again

Syko3948d ago (Edited 3948d ago )

Dropn' Bombs on your moms'. Well said. 72% is a HUGE decrease anyway you slice it

Boink3947d ago

good concept, decent machine, if only they didn't try to force a new format on the world(umd) they might had a chance against the DS. Also the price was a bit high, but at least sony learned from their mistakes;)

gogators3947d ago

They also make good batteries, thanks for the recall Sony. I don't recall their stereo equipement being market leaders anymore, maybe they still are.

DC RID3R3947d ago (Edited 3947d ago )

*double post*

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