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Sony Whistles In Console Dark, Outmaneuvered by Nintendo, Microsoft

It always seems presumptuous to sound a death knell for an enormous company. So perhaps this is more a bell closing round seven of a fight, but on the gaming front, Sony is looking bad. Really bad. And because of the company's overall financial position, it will take far more than posturing to keep the console division in the game at all.

On the largely disappointing recent holiday retail front, and, indeed, in the face of the entire economy last year, the year's results, Sony was hurting, according to NDP Group's data. The top two sales spots were Nintendo's Wii and DS. Microsoft's Xbox 360 was a solid third place. But the Sony PlayStation 3 couldn't even beat the million unit mark, although the PSP just squeaked by into that territory.

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Darkseider3251d ago (Edited 3251d ago )

Here I thought we have seen all of these articles already. This article, like every other one before it, fails. Now quick! All of you XBox fanboys approve it in record time because N4G hasn't had one of these in about a week! HURRY!!!

EDIT: Like I said approved in record time! Next on the list is a Blu-Ray is dead article because we haven't seen one of those in a while. Who wants to make a bet? Any takers?

lociefer3251d ago (Edited 3251d ago )

ok seriously if you think the ps3 is dying / frying / weak / *insert another remark here* then DONT FCKIN BUY IT AND STOP WASTING NET BANDWIDTH , no 1 wants to read ur crap , keep it to yerself

jcfilth3251d ago

Looks like 360 fanboys are hard at work looking for nagative articles on the net and FINALLY after two days they found one that happened to be one of the most retarded of all.

Marceles3251d ago (Edited 3251d ago )

"Unfortunately for Sony, it probably doesn’t have the financial wherewithal to really compete on price by dropping prices to a competitive level"

LMAO...they act like Sony is Del Taco or something. I'm sure Sony is no slouch money-wise and I'm pretty sure Sony makes more of a profit in each PS3 sold than the 360 is. They're not gonna drop their price just to say they sold more to the media, they'll do it because it'll be a smart business move to gain more of a profit.

prunchess3251d ago

If you want to stop these kind of stories, don't feed the trolls (we all know who they are), do not click the link to the external site and give them a hit.

Shadow Flare3251d ago

Sony is producing the best hardware and software of this console generation. If you choose not to buy it, then fine. But you've just missed out on the best gaming experiences this generation

Anon19743251d ago

The PS3 sells 17 million consoles in 2 years vs the 13 million the 360 did in it's first 2 years. It overcomes the 360's total lead in 2 years in approx 50% of the world's market, and in the US where the 360 is king they still showed 40% year over year growth.
Sony wins the format war, their game lineup is outstanding, online hits 17 million subscribers and developers left right and center (including the world's largest publisher, EA) are stepping forward to say they make the most money off the PS3.

How can anybody in their right mind think this equals death for the PS3? I'm beginning to think the people writing these articles are simply stupid. Either that or paid shills. I really can't come to any other logical conclusion how they could overlook these facts.

Chris3993251d ago (Edited 3251d ago )

These articles are getting ludicrous. The PS3 outsold or was within a few thousand units of the 360 ALL YEAR BEFORE THE PRICE CUT. This is a fact, review the NPD data if you need a refresher.

Price parity is the only issue here, and Sony doesn't seem to worried about their cost as they are near or have already achieved profitability on the system. I'll trust the people who have had 2 successful 10 year console plans. I'm pretty sure that they know what they're doing. Thus far, they've averaged about 10 million consoles per year at an exorbitant price.

Now let's see what happens when it reaches this mythical $200 price point that MS is always referring to. Should be in about 2 years. As a side-note, imagine how dated DVD 9 and no proprietary HD will look by then.

- C

P.S. One of the biggest mistakes on MS' part as well is assuming that their system will be desirable enough to actually last a good span of years. You can have a 5-7 year plan all you want, but where are the development studios? Where is the technology to carry you there?

pippoppow3251d ago

These writers should be embarrassed. Any one that does a bit of research cannot possibly come up with such nonsense. Are these authors actually proud of the content they produce when it's like this?! To me it's nothing but a glorified forum post by a bias fan. I'm sure there are posters here that would make a more informed and overall professional article.

IdleLeeSiuLung3251d ago

Well the author makes a couple of good points here:

- PS3 is still not at a break even point
- Pricing pressure from competitors continually widening the gap
- Inability to lower price to keep up with competition due over-estimating your product demand
- Spouting 10-year plan, when there is really no significant difference between Xbox 360 and PS3. The PS2 still selling, isn't selling because it was the most powerful console of its time.

There is no doubt that some of the best looking games (KZ2) will probably come from the PS3. I expect none the less from such an expensive piece of electronic, but it is hard to turn the blind eye to the fundamental problematic issues. If Sony could drop the price, they would by now. The early life of a console set's the momentum going forward and PS3 isn't exactly at the top.

ultimolu3251d ago

Why does this need to be a race? Was Sony at the top when the PS2 first came out or did it take time for them to work their way up to the top?

Genesis53251d ago

These journalist don't overlook the facts they just don't like to use them. Because the facts make them look like they are wrong.

Anon19743251d ago

IdleLeeSiuLung said "Well the author makes a couple of good points here: - PS3 is still not at a break even point"
No, nor is it supposed to be. Right from the beginning the PS3 hardware wasn't slated to turn a profit right away. In fact, I believe they're ahead of schedule for reducing productions costs.

"Pricing pressure from competitors continually widening the gap."
Pricing pressures? The PS3 has sold 17 million in 2 years at a higher price point. The 360 only did 13 million after it's first 2 years. Again, price doesn't seem to be hampering it. It's selling faster than the 360 ever did.

"Inability to lower price to keep up with competition due over-estimating your product demand"
Sony looks set to hit their sales targets for the fiscal year. How is that overestimating demand? Again, maybe a good point if it was based on fact...but it isn't.

"Spouting 10-year plan, when there is really no significant difference between Xbox 360 and PS3."
First off the 10 year plan seems to work fine for the PS2. Second, no significant difference between the two? Come on. The PS3 is a hi-def entertainment hub and one of the best Blu-Ray players on the market. The 360 is just another games machine. The simple fact that the PS3 is selling faster than the 360 did with a much higher price point proves that consumers get it.

Again, this article tries to make some points but reality is actually their biggest detractor.

SL1M DADDY3251d ago

Wow. As a person who looks into the web for information from time to time I can at least see how much this article clearly stinks of BS. I'm not into sales much but a simple Google check shows that the PS3 is tracking with the sales of the 360. Since they both launched with a 12 month difference it is impossible to compare them any other way than to compare time frame sales and by doing so they are fairly close with the PS3 coming out on top. If the PS3 is one foot in the grave then what would that make the 360? Dead on arrival? Your article fails on so many levels. Good for you, making yourself look like a complete tool.

- Sincerely,

A Gamer.

The Lazy One3251d ago

don't actually send the author the letter. I'm sure posting it in an internet comment section will get the message across much better.

http://devcentral.f5.com/we...

Mozilla893251d ago

This is guy is a little late to the party. All the negative articles were supposed to be in a week ago.

yesah3250d ago

wanna know why theese articles keep poping up? Its because you keep giving theese unknown sites traffic. Just ignore it and ESPECIALLY dont click on the link.

pixelsword3250d ago (Edited 3250d ago )

It always seems presumptuous to sound a death knell for an enormous company. So perhaps this is more a bell closing round seven of a fight, but on the gaming front, Sony is looking bad. Really bad. And because of the company’s overall financial position, it will take far more than posturing to keep the console division in the game at all.

Console or Tombstone?On the largely disappointing recent holiday retail front, and, indeed, in the face of the entire economy last year, the year’s results, Sony was hurting, according to NDP Group’s data. The top two sales spots were Nintendo’s Wii and DS. Microsoft’s Xbox 350 was a solid third place. But the Sony PlayStation 3 couldn’t even beat the million unit mark, although the PSP just squeaked by into that territory.

As Ben Kuchera at Ars Technica puts it, “You have to dig deeper into Sony’s performance to find the positive talking points.” Frankly, I’m not sure that even financial spelunking offers any real bright points. Looking at the company’s 2008 annual report, sales, converted to U.S. dollars, were about $14.7 billion. As the company points out, that was a 26.3 percent revenue increase over FY 2007, but still with a net loss of about $1.4 billion, or almost 10 percent.

It’s difficult to directly compare Microsoft, because the division that has gaming supports general consumer marketing costs, so the paper loss probably does not accurately reflect the actual situation. But we can look at Nintendo’s six months ending September 30, 2008: about $9.5 billion in revenue, or about a 20.4 percent increase over the same period in 2007, with about $1.6 billion in net income. And the same period in 2007 also showed a positive net income. Not only is Nintendo walking away with market share, but it clearly knows how to operate efficiently.

The question of how to make console designs pay off is a critical one, because it takes time to ramp up production and drive down costs so that units are profitable. I once spoke to someone at Microsoft who said that the general model has been to create units that sell at a loss in the first three years and then turn profitable over two additional years, with royalties off game titles turning the whole thing into a long-range profitable venture.

Nintendo has shattered that model with the Wii, bringing it out in the Americas in the fall of 2006 and running profitably by the next year. That is remarkable. The underlying business model of the industry is changing. What is Sony’s answer? Wishful thinking.

Sony claims that the PS3 is a ten year system. This has to be one of the most ridiculous arguments someone in the tech industry has ever offered. Consumer electronics product lifecycles generally run in the six month range. The gaming consoles are different because they have a much bigger nut to get to break even, so they can’t turn around that fast. But ten years? The company claims that the product is ahead of the market. Odd, because it doesn’t seem to do much of anything that can’t be done by the other consoles, except maybe Blu-ray compatibility, and as we’ve seen before, that’s not necessarily something people care about.

But Sony is serious because it’s probably going to take that long to actually make a profit on the device. According to an iSuppli report, the PS3 currently costs just over $448 to build, which doesn’t include software, packaging, and royalties. In other words, after having the system on the market for about as long as Nintendo’s Wii, the company is still losing money on every sale. And the current $399 or so price tag is what retail gets. Sony will get significantly less after the retailers take their cut. Given that the unit cost used to be over $690, Sony has an enormous collective loss to overcome.

But it can’t catch up to Nintendo and Microsoft because the console is just too flipping expensive compared to a Wii or Xbox 360. Such features as built-in Wi-Fi and Blu-ray and even free online gaming are nice, but consumers clearly don’t care. Regular people don’t view the capabilities as compelling enough.

Unfortunately for Sony, it probably doesn’t have the financial wherewithal to really compete on price by dropping prices to a competitive level. The company may report its first net loss in 14 years this spring. Shareholders will clamor for restructuring. Unfortunately, CEO Sir Howard Stringer is running into strong opposition to change from old guard management.

Sony’s is also in no financial shape to develop a new system. By the time it is, Nintendo and Microsoft will have moved ahead to something grander, leaving the PS3, and Sony itself, in the dust.

Rhoic3250d ago

Dark, you do realize that you need to pretty much halve the online community numbers due to the fact that the average person has 2 accounts lulz. Also, it is not physically possible that EA is making more money on the PS3. Maybe they mean that they make more money on the playstation BRAND due to the fact that they release for all 3 platforms.. but PS3? No. Every month with an EA Sports game or ANY EA game for that matter comes out, it's always on top with the 360.

And then you're probably going to factor in "WELL THE USA ISN'T THE WORLD...DUH!" lol..

Veneno3250d ago

If ps3 drops in price, there will be a whole new batch of articles like "in a desperate attempt , sony slashes the price of the ps3. sony is doomed!"

Sarcasm3250d ago

"I'm beginning to think the people writing these articles are simply stupid. Either that or paid shills"

I'm gonna just go with... SIMPLY STUPID...

:)

acedoh3250d ago

I can't believe these articles are actually being written. They fail to mention the fact that Microsoft is cutting back 10% of their employee base. They also fail to mention that Microsofts price drop was a desperate measure to make a move for the holiday season. Which I am sure came at a loss with two games packed in. If SONY was desperate they would have did the same thing. Price drops with pack ins have always been the sign of desperation. Look at console history and you will see the same pattern.

I would also like to point out how these articles are becoming more apparent as Killzone 2 approaches. I believe this is a last ditch effort by Microsoft and their paid bloggers to stem the wave of people who will make their way from the 360 to the PS3. If you don't think their desperate then you are fooling yourself. They fear a game like Killzone 2 changing the hardcore gamers loyalty. A title like Killzone 2 has the power and will.

skimming3250d ago (Edited 3250d ago )

Chicken and egg(s) problem.

(Chicken) gamers are waiting for drop in PS3 price & better game library before console purchase

(Egg 1) Sony needs to sell more games to cover console price drop

(Egg 2) dev houses are looking at attach rate and console marketshare before devoting dev resources to PS3 games

PS3 game library is not so much an issue anymore so we're basically left with price as the main problem.

Current economic situation being what it is, the most likely scenario is that there will be less PS3 exclusives in future as Sony can't afford to purchase exclusivity.

Anon19743250d ago (Edited 3250d ago )

Rhoic said "Dark, you do realize that you need to pretty much halve the online community numbers due to the fact that the average person has 2 accounts lulz."
Says you. Sony says this takes into account sub accounts and only deals with active accounts. You arguing this is like me arguing that "360 sales aren't accurate because so many people have to buy a new console." Truth is we'll never know what those numbers are accurately - but why on earth would everyone have two accounts? That makes no sense. I don't. I don't know anyone else who does. I do, however, know people who bought a second 360 when the first died to not be sent a crappy refurbed unit.

"Also, it is not physically possible that EA is making more money on the PS3."
EA reported their revenue quarterly revenue and it looked like this. PS3 139 million, PC $86 million, 360 $81 million. If it's not "physically possible" for this to be correct you'd better get on the horn with the SEC because EA must not know how to track their own revenue.

Rhoic3250d ago

"Says you. Sony says this takes into account sub accounts and only deals with active accounts."

Yes, says me rofl. And that is what I mean. The average person has about 2 active accounts, due to the fact that they want to access different regional opportunities.

"EA reported their revenue quarterly revenue and it looked like this. PS3 139 million, PC $86 million, 360 $81 million. If it's not "physically possible" for this to be correct you'd better get on the horn with the SEC because EA must not know how to track their own revenue."

If that is true then they are not releasing their information. That or the NPDs are backwards. It's simple math, and I go by the information that is given to me publicly. Every month, any EA game that comes out is on top with the Xbox 360. And that IS a fact. Unless we've been lied to.

+ Show (21) more repliesLast reply 3250d ago
Kratos193251d ago

Neat, we haven't had a "Sony is doomed" article for a couple of days now. I was getting worried.

Nathan Drake3251d ago

Thanks to the efforts of Nineball and the Monkey that wrote this article,the Xbox faction survives another week!

Tune in next time to find out whether or not a "Bluray is dead" article made it through!

*Outro music* dun-dun du-dun-dun dun dun duuuuuunnn

*Geico commercial*

narked3251d ago

lol @ kratos haha. u made me rofl

Nineball21123251d ago (Edited 3251d ago )

LOL! Hey, I don't write this stuff, I just submit it. Both pro articles, con articles, reviews, previews, rumors..

Xbox, PS3, Wii, whatever.

If it's gaming news, I'll submit it.

Of course the author of this article is full of sh!t. I agree with that, but I'll still submit the articles. Why, because it relates to gaming... good or bad.

I'm not here to hold the hands of any fanboys for any system.

Don't blame the messenger... blame the message. Or hate the player... or something like that.

And to be honest, I'm more of a Sony fanboy than I care to admit. :-)

So, in response to your thanks... you're welcome!

Oh, and I submitted an article about Sony opening a blu-ray facility in China too. I wonder if I'll catch flack about that one.

It might offend the N4Ger's who don't want to see anything good happen for Sony!

butterfinger3251d ago (Edited 3251d ago )

Nineball, that was some BS you just spewed right there. If anything, why don't you just tell us that you are trying to post these articles to get more points or anything other than stating that this is "NEWS". This MIGHT, MIGHT, have been "NEWS" when the first article popped up, but when we continue to get the same message from different, obscure sources everyday, it ceases to be "NEWS". It then becomes FUD. Heres a sample of the crap you alone have posted on N4G.

http://www.n4g.com/News-261...
http://www.n4g.com/ps3/News...
http://www.n4g.com/News-261...
http://www.n4g.com/industry...
http://www.n4g.com/tech/New...

@ Below: "call it whatever you like" - I calls 'em as I sees 'em, and I sees some bullsh!t. Interesting how none of those said the end is near for the XBOX360 or anything really bad about Microsoft as a whole. Anothing thing I noticed was that those had some variety as well, unlike your Sony/PS3 is doomed articles which state the same things over and over yet you post each one anyways. Oh well, I guess it's contributors like you and great, insightful articles like this one, that make N4G such a great place for gamers. BTW, you are welcome for the approval. I approved it in an effort to make other gamers notice how ridiculously stupid it was, and it didn't say anything about the PS3 being finished, it was just moronic.

Nineball21123251d ago (Edited 3251d ago )

Haha... call it whatever you like. BS, FUD, whatever gets you through it.

Fine, it's gaming "opinion", not gaming news. Regardless, it's gaming related.

I submit gaming "news"/"opinion s"/"articles that threaten people's world view". I can't approve my own articles. If the users of this site don't want to see this stuff, you have a couple of options.

1. Don't approve it.
2. If it's approved, don't read the article or better yet, don't comment and raise the profile of the submission.

Not too hard to figure out, is it?

Edit: Wow, thanks for letting me know what I've submitted.

How about these as well:

http://www.n4g.com/tech/New...
http://www.n4g.com/News-262...
http://www.n4g.com/tech/New...
http://www.n4g.com/industry...
http://www.n4g.com/ps3/News...
http://www.n4g.com/xbox360/...
http://www.n4g.com/industry...

I know what it is... I just hate gaming in general!! That must explain it.

Did you ever stop to think for a second (yeah, I know... rhetorical question) that the majority of "news" out on the web leans in favor of Microsoft and against Sony?

No... that couldn't be it!

Edit @ butterfinger again:

WOW! Look up the word hypocrite in the dictionary.

http://www.n4g.com/ps3/News...

That's one of the submissions you listed above. YOU friggin' approved it! /facepalm Haha... that's priceless...

Nineball21123251d ago

"I approved it in an effort to make other gamers notice how ridiculously stupid it was, and it didn't say anything about the PS3 being finished, it was just moronic."

That is the most majestic example of spin I have ever witnessed.

And to anyone without conspiracy delusions, I think it's pretty obvious that I submit a wide range of articles/reviews/rumors/etc. that runs the gamut of gaming.

Eh, I'm done with you. It's like discussing something with a lamp post.

Fine, you win.... You've convinced me. I hate Sony and all things Sony related. **rolls eyes**

oh.. oh... maybe that should be **Trolls eyes**, eh? LOL :-)

3251d ago
The Lazy One3251d ago

people don't believe me when I tell them sony fanboys make people hate sony more than anything sony's ever done.

pumpkinpunker3250d ago (Edited 3250d ago )

people are just calling it like it is. They are in last place and losing sales month to month.

if it bugs you then why don't you apply for a job and try to turn things around.

+ Show (6) more repliesLast reply 3250d ago
3251d ago
slave2Dcontroller3251d ago

*Runs to his PS3 to administer CPR and check for a pulse

Nathan Drake3251d ago

Is....is it going to make it :'( ?

narked3251d ago

get the shock paddles!! charge to 300...

bzzzz

IT LIVESS!!!

ps. stfu about the sht already

Nicolator3250d ago

That was funny slaveDcontroller. lmao!!

slave2Dcontroller3250d ago

IT MADE IT. ITS ALIVE!! LMAO Good Times guys.

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jcfilth3251d ago (Edited 3251d ago )

"Sony claims that the PS3 is a ten year system. This has to be one of the most ridiculous arguments someone in the tech industry has ever offered."

Someone please take a PS2 and smack this [email protected] in the face!! I stopped reading there.

Darkseider3251d ago

ROFLMAO! Dude you made me laugh. +Bubble and agree for that.

Kleptic3251d ago

yeah with a new WipeOut pulse coming to the PS2 this spring...and it still selling marginally well considering its age...

maybe this guys job is whats really on the line...and not the PS3 at all...I already know what his editor said 'this site is tanking...make some shat up so we get massive hits and can appeal more to our ad investors'...that seems to make a lot more sense...too bad PS3 owners have the last laugh...

and don't tag the article...someone will copy and paste it like always...i'm too lazy though...haha...

Marceles3251d ago (Edited 3251d ago )

LOL...it's funnier because I'm sure getting hit in the face by a PS2 would hurt like hell. Alot of sharp edges :P

Leio3251d ago (Edited 3251d ago )

Hahaha nice one jcfilth xD!!

Karum3251d ago

I didn't click the link to read the article and I don't plan to but that quote and your response is amazing.

Talk about idiocy.

ascendantofrain3251d ago

LMAO that was effin' hilarious...oh the irony of being hit in the face by a system that has been around almost 10 years already and still going.

Saigon3251d ago

MS has already stated that this generation will be longer than any other in the past...

boodybandit3251d ago (Edited 3251d ago )

ROFLMMFAO! That was great jcfilth!

spectyre3251d ago

I've still got my fat PS2.

The Lazy One3251d ago

then smack him with a merlin handheld. It's been around for 30 years!

PS: the PS2 has only been out for 8 years so far.

Nicolator3250d ago

nice one jcfilth .. u made me cry from laughing so hard.

+ Show (9) more repliesLast reply 3250d ago