Sony and Microsoft can spin the results any way they want, but Deutsche Bank analyst Jeetil Patel says that the sales are just flat out disappointing, and that in Sony's case a price cut is "critical" in order to stimulate the market.
This is going to make both sides explode.
this is flame bait for sure!!!! Let the battles begin!
"Looking specifically at the Xbox 360 situation, Deutsche Bank analyst Jeetil Patel said that there is some reason for concern. "We are concerned that either Microsoft's much publicized promise to increase supplies has not materialized, or even more worryingly, consumer demand has been lower than expected," noted Patel. "The worst-case scenario (which we unfortunately cannot rule out at this stage) is simply that consoles are not selling at these price points - it is too early to state this definitively but these early data points are not encouraging."
This same analyst said all that nonsesne above about the 360 in June of last year. 360 sales are fine now and doing better all the time! This guy is just a loudmouth with too much free time. Everyone knows Feb-August is a pretty rough time for games, even more so with a consistent flow of great games from all sides. Don't let this moron get to you guys.
Sony is seriously need a pricecut. The draught and high price is killing them.
Microsoft and Sony will eventually price cut during summer 07 i believe.
the ps3 needs a price cut and so does the 360 but the wii wtf it shouldent even be labelled a next gen console all it has different to a gamecube is a different controller.
I dissagree fans on both sides know $300 dollars and up is a price that the bulk of consumers will avoid.(Sales pick up around $250 and lower).
You are trying to tell me that all of the super dedicated won't come in here. I can see little dj saying that $600 is the perfect price for such a perfect piece of machinery. Then Mart will come in and say...see, the ps3 is too expensive, notice the 360 is beating the ps3 by 100,000 units sold. You really don't think this will happen?
Can a dog not smell another assholes, i just though sence both console's are not doing as well as they could it would look foolish to try to use this news to make one or the other look bad. I thought it would shed some light on the realalities on both sides on why price is hurting both companies, i thought this thread would be a kind of flame retardant on the 360/PS3 sales number flame battle. lol J/K
You should see some of the thoughts dj has about stuff. He has private messaged me a couple times with insane thought processes. Mart is a little on the deep side too. I personally love my little 360, but I am not going to make up crap, just to validate my purchase. I'm not going to mention that my add on wifi has a much longer range than the built in ps3 one unless I have done tests (in many variable circumstances). The problem is some children on this site just like to make up stuff just to stroke their ego. It's kind of lame. Oh well.
I bought a 360 at launch, but I'm waiting until the PS3 hits $300. And why not? If it truly has a 10 year life cycle, what's the rush?
It may be that the hard-core gamer are the early adopters, but the general public, though they may want the new systems, are simply not willing to pay the high prices.
Perceived value is a tricky thing. A Corvette Z06 outperforms cars that are 3X its sticker price, but still most people can't afford that luxury, and those that can may spend money on a boat, another house etc. And at the end of the day, after computers, HDTVs, surround Sound systems,MP3 players and new cell phones, gaming concoles may be a lower priority for people's consumer electronics dollar. Think about it - the $800 you'll spend on a PS3, a few games, extra controller and component/HDMI cables and a headset...will buy a decent sound system, a decent computer, a good chunk of a decent HDTV - things the majority of people want - more than a gaming console.
is what made me purchase a Xbox 360.
360 sold 20,000 units less than expected and ps3 sold 70,000 less than expected, with no AAA games be released, can't say I'm astounded. Also, comparing these titles to older generations is foolish, because even with inflation these consoles are vastly more expensive than previous consoles. Guess what here will be a market analysis for March console sales: THEY WILL SUCK AS WELL! March is historically not a huge selling month.
Another analysis: They need to drop 360 and PS3 sales price as this would sell more consoles, NO SH*T Sherlock, and if Watson would dig a little deeper he would see that would hurt profitability and recovering costs for 360 and PS3 respectively, so what exactly is the moron analyzing anyway? The game companies themselves, or the market? Either way he's as dumb as a post. You can't do an analysis of anything without taking into account at all times, all the involved variables.
Hypothetically, if things continue to slow then a price drop will be necessary to minimize loss and promote industry growth.
Right now Sony is losing...$280 or so on a console they sell for $600.
However, if that console NEVER sells, and sits on a retil shelf, Sony loses $880. So, if they dropped the price to $400, they would be losing $480 - not good, but better than $880 and they will have an installed base to recoup the loss on games.
This is an extreme example and the market is no where near this desperate, I think. But remember - an analyst looks at immediate earnings numbers that influence stock price - that is all they care about.
Just because the console costs $880 to manufacture and they sell it for $600, doesn't mean they lose $280 a system. Most stuff you purchase at stores have a 100% mark up. So, if..........the ps3 goes for 600, the store probably......bought it for 300. So sony actually loses $580. You have to realize that the stores have to make a profit also, right? They don't just sell it for the same price they purchase it for.
Well actually out of all 3 consoles the xbox 360 yield the most profits with about $50 going to retailers since mirosoft has reduced the manufactering cost of the xbox 360 they can sell it to the retailers for cheaper. The ps3 on the other hand is about $7 to retailers. Which is why every week Best Buy and Futureshop have a greater chunk of their gaming page deticated to xbox 360 and the second most ot DS lite. They literally only had 1 or 2 ps3 games that they would show each week and sometimes they skippedit all together. I even see xbox reps at electronic stores wearing their white/green shirts and mojority of the time the customer ends up buying the xbox 360 over the competition due to this extra service. BTW wallmart went the most extreme in my area by not even setting up a ps3 display case but inside cramming it into the psp case. It appears to me sony's budget was spent pushing blu-ray at stores instead of the ps3.
I dont think the 360 is more expensive than previous generations. I seem to remember spending alot on the PS1 (Could be wrong though, it was a good few years ago now lol)
You have to remember analysts are interested in which company makes the most money for investors not particulary which is the 'best' console for consumers.
Still feel the PS3 numbers are very low, i agree that there is a lack of games etc but i always thought that brand loyalty would allow the system to keep up with last years 360 sales.
end of the day, the gap between the 360 and ps3 is increasing and maybe a price cut would change that. even a nominal price reduction might go someway of encouraging more buyers
The PS3 is an excellent piece of hardware but the price is simply too much for a gaming console. I dont know what Sony's buisness model is this generation, maybe they are content with selling less consoles this generation as a trade off for a successful introduction of a new media format. But if the PS3 is unable to match or at least get close to the PS2 in sales that will mean a significant reduction in the total size of the gaming market which is what drives investment. It is important for Sony to find a way to make the PS3 significantly more price competative. 600$ no matter how great the games look has a dappening effect on a potential customers enthusiasm to buy any gaming console even ones made buy Sony.
I don't believe that this analyst has analyzed everything. For instance, the PS2 was said to be overpriced when it was orginally priced at $300 dollars. It took FOREVER for it to come down from $300. With the rise of fun and entertaining games for the PS3 and 360 people will find away to find the cash.
California and Seattle are both expensive places to live but people continue to move there and pay those prices for that type of lifestyle.
Sony and MS will only need to drop the prices of their console if they begin putting out games that no one wants. As long as Halo 3 comes out and Sony puts out MGS4 and FF then people will want to buy those systems. Consumers buying power is amazing for something that they really want.
I wanted a HDTV that's 6 times the cost of a PS3 and I bought it because I wanted it. I found away, you work more and save more. Some people finance it (credit cards). If you really want something bad enough you can get it. Look at nearly 10 million people who bought 360's and 2 million that bought PS3 (after only 4 months and few games).
This analyst needs only to look at the past to see that if a product makes it's self worthy of purchase in the consumers eyes, if so they will find away to get the money. I think the 360 and PS3 are doing that and I'm sure their board of directors agree so, I doubt we'll see any price cuts anytime soon.
How people say they can't afford a PS3 and then decided to buy a 360 instead. How someone can afford $400 but not $500 is beyond me. The $500 PS3 is actually worth getting if your don't want the extra stuff. I have both systems and I can care less but it just bugs me when I see that comment all the time.
on where you live...Like in my area the only PS3 unit out for purchase is 659.99+tax(760.00 after tax)when I paid 430.00 for my Xbox 360 INCLUDING taxes...so thats why comments like that are made... word of advise "before commenting make sure you have the ability to look beyond whats infront of ones nose."(as in look at the overall picture not just one small piece)
Still a difference of 100 dollars/euro make one game and an extra wifi controller for the 360.
SO if you want to have at least a game and fun for two, spending an extra 100 dollar/euro is still a lot to many people. It doesn't stop with price.
It's also price compared to the game fun you get. THe 360 has more games, better exclusives and the best versions of multiplatform games PLUS the premium online system. And it's cheaper then the competition that does less for a higher price.
THat's why the PS3 should drop the price. THey just need to. WHen the 360 get's lowered in price, the balance is totally off. Imagine a 300 Euro Premium 360 compared to a PS3 for 500 or 600 euro... It'll be slaughtered by that price difference
Gaming is getting too expensive for the casual gamers (which make up 80% of the gaming market).
The only next-gen console they can afford is the Wii...which is why it is outselling the Xbox 360 and PS3 every single day.
If the PS3 was at $299 instead of $599 the war would already be over.
I think that consoles in general won't sell as much as they did last-gen due to the high prices.
Sony is too busy making sure Blu-ray wins this format war, and is willing to take lower sales in return for the PS3's higher pricetag.
Microsoft is too busy recuperating losses from the original xbox to lower the price of the 360.
So the Nintendo Wii is the one console that is selling like its supposed to as a result of all this.
Even if the PS3 was only 299$ it would still be a "fancy" looking movie player because there list of AVAILABLE games is too weak...So I honestly dont think a comment such as "If the PS3 was at $299 instead of $599 the war would already be over." can be made because its a next-gen war between VIDEO GAME consoles(keyword video game)and the PS3 is severely lacking VIDEO GAMES and the Wii is great for the casual gamers but does not "cut it" for avid gamers.
Casual gamers would flock over and buy the PS3 until it was outsold nation wide if it was at $299, just like the PS2...remember that also started with a weak game lineup.
The reason you have trouble understanding this is because your a hardcore gamer not a casual gamer. So for you as long as the games are good you buy it.
Casual gamers on the other hand will get it as long as its dirty cheap and has decent games.
i know the price will drop later and thats when the masses will buy, but i don't really care. i'm always the first to buy the newest tech. i had a 360 three weeks after it came out, i had a ps3 two weeks after it came out, i had tivo as soon as it came out, psp on launch day.......so on and so on. i know how it is, when the price drops everyone buys. i pride myself with the lastest and the greatest, its a little gift to me, from me. all i gotta do is buy the warranties with them so when the companies make their improvements, i take mine back, say it doesn't work, and get a brand new one. hurray for me!
You really do like yourself, don't you?
It would be nice if they did do a price cut on ps3 an 360! Some people who pay child support, have 2 wait for the cut to enjoy the great systems! They need 2 put blueray aside and put the customer first, since more people buy games over movies! Just my opinion tho, living on the west coast is already exspensive! LOL.
I understand many think most analysts are "tards" and have no clue...but this guy does have part of it right. PS3 sales are very disappointing for one major reason....
They BY FAR had the largest install base of users. I mean nearly 4 to 1 to any of the other consoles from last gen based on units sold, etc. So assuming you do have that large of an install base (and I dont' argue that point do you?) then Sony (analysts too) should have a reasonable expectation of Sony getting a large chunk of that install base to upgrade to the PS3 assuming that the brand loyalty is there. After all a significant chunk of that install base has had their PS2 for over 6+ years so upgrading now would make sense.
Sony's biggest problem with the PS3 is ....it's still competing with the PS2. The PS2 still is drawing a TON of good software support plus the almost triple price of the PS3 compared to PS2 and that shift to the PS3 is just not happening that fast. Sony could have had a slam dunk if they made GOW2 a PS3 only title. THAT was Sony's killer Q1 app. Putting that game on the PS2 just gave one more reason for people to hang on to their PS2's. This is where MS was smart...there honestly are no new games coming to the Xbox and there is no reason for anyone to buy an xbox...there are tons of reasons to buy a 360 and pull that MS install base over. Sony on the other hand has given their install base plenty of reasons not to upgrade (quality PS2 titles still releasing <even from Sony themselves> and No real killer Sony exclusive PS3 app that makes you have to upgrade to a PS3). Bluray alone is not enough...this is a gaming machine first and foremost in the public eye.
They keep supporting their game consoles until they die off on their own.
Unlike the xbox and gamecube the PS2 is still alive and kicking ass!
Sony is slowly switching all their resources from the PS2 to the PS3, unlike MS, that the day the 360 came out BAM!!! xbox 1 was dead...
"Sony's biggest problem with the PS3 is ....it's still competing with the PS2"
Couldn't agree more Dlacy13g. The PS2 was and still is an amazing machine. And quite frankly, why make the jump when Sonys big games aren't even out yet. IMO
my xbox is still alive along with my daughters gamecube but the PS2 has a duff laser and so that is dead!
We live in a nation of cheap bastards who are either tight fisted or stupid with their money.
People won't bat an eye lid at spending £150 a month on Cigs, people won't bat an eyelid on spending £100 on a night out in the clubs/bars.
For someone who works in consumer electronics retail I'm sick and tired of people moaning about prices when they probably waste all their money before they enter a shop. What would you rather have? A PS3? or a thousand Cigs that will only kill you?
Sure I'm a hardcore gamer and I have my gaming needs and I couldn't give a toss if the PS3 was £5000 I will still buy one because it adheres to my needs. People just need to shut up and perhaps learn to SAVE money for a change.
I don't get payed much, infact I barely earn £14,000 a year and I have a car/flat to pay for. I don't find it a hassle having to pay for a PS3 because I have facilitated for it.
My message behind this is: People should stop wining, they price was announced ages ago - get over it. You would easily blow £425 on drugs or in a stip club than on a PS3 that would BENEFIT you alot more than some consumable fake pleasure.
N4G is a community of gamers posting and discussing the latest game news. It’s part of NewsBoiler, a network of social news sites covering today’s pop culture.