November '08 sales decline blamed on 40GB's successful '07 introduction

Talking to CNET, Sony has revealed why the PS3's November sales were actually lower in 2008 than in 2007, despite an upward trend for other consoles across the board. It seems that the introduction of the 40GB model and a new lower price in November 2007 was too successful, meaning that the PS3 was unable to compete with itself even a year later. What Sony forgot to mention is that the cheapest Xbox 360 is currently selling for half the cheapest PS3's price.

Sounds obvious, doesn't it? Price cut equals more sales. Maybe if Sony had done the same thing in 2008 the PS3 would have outsold its own year-old ghost (that's a racing game metaphor, not a Christmas Carol "Ghost of Christmas Past" one).

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Captain Tuttle3507d ago (Edited 3507d ago )

That's a new one.

Dlacy13g3507d ago (Edited 3507d ago )

And based on their logic of the success of the 40GB sales and introductioin....why did they kill of that sku? I mean if it was so successful you would think it would be their leading sku, but instead they kill it off? Yeah..just doesn't make sense.

PirateThom3507d ago

Because, they didn't kill it off as such. The 80GB is the same console, with a bigger HDD, for the same price as the 40GB. The offered more HDD for the same price.

Fishy Fingers3507d ago (Edited 3507d ago )

I'll explain. Nov 2007 Sony introduced the 40gb at a lower price. Later instead of cutting the price the SKU received a HDD upgrade to 80gb.

Now, which of these would you say is more like to propel sales, news of a new lower priced SKU? Or news of a larger HDD SKU? The price obviously, I think that's what Thom was implying.

Captain Tuttle3507d ago

Well obviously Sony thought that an 80 gig hard drive would increase sales, why would they do it otherwise? To be nice to their fans?

Fishy Fingers3507d ago (Edited 3507d ago )

Isn't that obvious? They couldnt afford to cut the price again. Upping the HDD will be attractive to new customers but at the same time only cost Sony a few $$$s per SKU.

If Sony where to cut the price by $5, not very tempting, doubling your storage, not incredibly tempting, but more so than a $5 saving and it's also practical for the consumer.

Pretty logical. You cant keep cutting the price when your already lossing money on every unit, you have to find other means of drawing in new custom, even if they're not as successful.

+ Show (4) more repliesLast reply 3507d ago
sak5003507d ago

LOL, you can find this in the SDF manual page 230. How to cover up declining sales..

Fishy Fingers3507d ago

Year on year they're actually up by quite a large margin. Only in November I believe 2007 out performed 2008, one month. Still I'm sure thats the month you'll be referring to in future and not the other 11 ;)

Fishy Fingers3507d ago

Ha that's a strange excuse. When really it's mainly down to the 360s price cut. To the average Joe, they probably struggle to justify the high price and just pip for the 360 which is understandable.

Cut the price significantly and the PS3 will see monumental success IMO.

King_many_layers3507d ago

I agree with you.

I wonder what the case would be if the PS3 was the same price as the 360's lowest ( obviously not happening for a long while )

but I wonder how things would be. hmmm

xg-ei8ht3507d ago

M$ wrote the book on excuses. BS sales and How to talk out of your a-hole.

And then came windows vista

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