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PS3 Supply Will Continue to Be Tight, says Sony

With today's release of the March NPD data, Sony Computer Entertainment America boasted that PS3 "continues to be the only hardware console to see double digit growth both year over year (44%) and year to date (36%)." PS3 software, hardware, and peripheral sales accounted for 26% of the video game dollar share in March, which was the highest of any console, Sony said. The company also noted that the PlayStation brand made up 31% of the total video game dollar share in March.

The PS3 business was given a great boost in March by God of War III, which sold 1.1 million units for the month. Additionally, the PS3 version of Final Fantasy XIII sold nearly double the Xbox 360 version. Sony couldn't be happier with the momentum it's gained for the PS3 business, but the hardware continues to be slightly hampered by supply problems.

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LordMarius3141d ago (Edited 3141d ago )

What game are you playing at Sony? Why the shortages? Is it the yen? the weak dollar? trying to create demand? clearing out stock? a new Sku? I just dont get it

PirateThom3141d ago

Gran Turismo 5 is coming.

RememberThe3573141d ago

Do you realize how epic that statement is?

Nineball21123141d ago

As mentioned below, the weak U.S. dollar probably does come into play. It sucks for ppl wanting one in N.A., but if that is in fact what Sony is doing... it's probably a strictly business decision.

Of course, that is speculation, but it sure seems logical to me.

Sony had a very solid month in March, regardless of the hardware shortages.

blasian3141d ago

GT5 custom made PS3 skus FTMFW

Brklynty13141d ago

Its a positive/negative thing. PS3 is the most demanded console right now, but with hot games releasing it isn't good. Sony has to produce PS3s x10 now. GT5 is releasing, Move is releasing, this has to end by summer or Sony could very well lose the momentum.

Shadow Flare3141d ago

Well literally just today when coming home from work, i passed my local HMV and there where loads of signs on the window saying 'PS3 Back In Stock!!!', so i guess supply has been tight lately

Noctis Aftermath3141d ago

@blasian: don't mess with me! if they really release a custom GT5 PS3 sku i will be very tempted to trade in my slim for it.

nintendostar3141d ago

Will it continue to be tight until it outsells the 360?

HolyOrangeCows3141d ago

And yet they still managed to outsell the 360 WW all year so far.

gta28003141d ago

This blows. I've been looking for a slim and no local store has one!

blackmagic3141d ago

Sony was able to keep up with demand in 2009 when the ps3 was selling what? Over a million a month? On a brand new manufacturing line? Now they can't meet the demand of 315k a month? After they have had 7 months to iron out inefficiencies on the manufacturing line?

Sony is a hardware company. Either they are admitting that they suddenly turned into manufacturing imbeciles or they are playing the Nintendo Game where they pretend to not be able to keep up with demand, you know, for 40+ months straight! Come on Sony, don't treat us like dummies.

N4BmpS3141d ago (Edited 3141d ago )

Surprisingly a friend of mine was able to find a PS3 slim I was shocked to say the least, now he has to get a game after he finishes Uncharted: Drakes Fortune. I told him to get U2 so we could play online darn him. Oh on topic yeah keep it up Sony. I think there planning something, in secret. Are the Playstation boys gonna have a debut game/album?(The Playstation Boys are Nathan Drake, Hale, Kratos, Clank and I think Cole)

ChozenWoan3141d ago

Hey!
You forgot Sev and Rico.

gapecanpie3141d ago

Japan doesn't equal the world.

Ju3141d ago

Sony might have tightened their cost structure. Going to a build to order strategy which leaves them less space for fluctuations. That said they obviously trying to reduce the risk of being overstocked.

The other thing is, usually stocks for the Christmas season are build over the year. They cannot all of a sudden magically produce tenfold because the demand grows for 2 month of the year. That might give them some headroom to fill stronger demand over the year, but still, budget numbers can be brutal some times. I am sure, due to their economic situation, they must have tightened all forecasts, and reduced spending, especially.

+ Show (12) more repliesLast reply 3141d ago
NYC_Gamer3141d ago

sony needs to fix the hardware shortage problem....

Army_of_Darkness3141d ago

order it from canada! we have enough to go around I think, since I always see it available in stores(not that it ain't selling) I'm just saying...

gta28003141d ago

I was thinking about ebay, but then I forgot that Sony requires a purchase receipt when it comes to anything warranty related so I'm not doing ebay.

Lucreto3141d ago (Edited 3141d ago )

Sony is losing money through the weak dollar and strong yen

€299 converts to 37,730.94 JPY
£299 converts to 42,998.20 JPY
$299 converts to 27,804.79 JPY

This is a simple guide with straight conversions there are taxes and other charges which vary from region to region which will change the figures but a $100 per machine is still big.

Sony could be holding off in the US and going for more profitable regions.

ghostface3141d ago

That the same thing I was thinking.

kaveti66163141d ago

That's a really smart move by Sony. So they lose money on every PS3 sold in U.S. and make money on every PS3 sold in Europe and Japan?

I'd ditch NA, too.

Microsoft may have locked up NA from Sony this gen. Of course, Wii still dominates.

TOO PAWNED3141d ago

Cant blame them then. they are probably trying to find ways to cut cost in mean time. They said it will last until end of June or something like that, then new lighter 200grm lighter PS3 will be in stock.

Lucreto3141d ago

The only problem with my little chart is the Wii. Nintendo is also making a loss on the Wii but we don't see the same shortages as the PS3. I wonder if the Wii is making more off the software like Lets dance in the UK and wii sports and the like since they always seem to be in the top 10 all the time.

The 360 is the only one with an advantage it is pure profit from the US.

So for MS
$299 is just $299
€299 converts to $404.870
£299 converts to $461.655
27,804.79 JPY converts to $299

As above the tax and other charges can change the figures.

ReBurn3141d ago

I don't know think it's holding back supply in the US to keep from losing money. Hardware isn't where the money is, anyway. The real golden egg is software sales, not hardware sales.

If the PS3 is really selling more units in other parts of the world than they are in US then it would make sense for them to subsidize US losses with profits from other countries. The US is a very big market to cut yourself out of.

Shadow Flare3141d ago

Well there are ps3 shortages in the UK too, so i dunno if its entirely to do with rate conversion. Maybe they really do want to keep a huge stockpile for GT5's release and build up demand through shortages prior to it

Lucreto3141d ago (Edited 3141d ago )

@ReBurn

It will be the same with the software as well. If a game cost $60 and €60 converting it into Japanese Yen shows a loss of $21.28 per game. So they make more money in Europe than the US.

...

I just had a thought this could explain why Uncharted 2, Ratchet and Clank and FF XIII got collectors edition in EU and not in the US.

@Shadow Flare-

I know GT is a big game but why hold console back this early. We don't even have a date yet for release. It could be September at the earliest. If they plan to do that then June or July would be the right time not just before GOW 3.

@raztad

They are making losses on hardware and software. Sony still need to make a profit but a loss on everything due to exchange rate will not go down well. They are feeding the market but not as fast as they can. It is like the wii increased there price in the UK due to the exchange rate.

MS make losses in Japan and EU that is why there main focus is the US. Sony make it more in Japan and Europe.

RememberThe3573141d ago

If the loss is great enough they will prioritize the more profitable regions. And Thoms statement above about GT5 can't be ignored either. I'm sure there are a lot of factors involved, but that we will see the fruits of this later in the year.

The slower hardware sales don't seem to be hitting NA too poorly since the PS3 moved quite a lot of software last month.

raztad3141d ago (Edited 3141d ago )

Sorry guys but IMO your theory is not right. Sony is probably having some production issues, dont forget it's software what really bring profits home. With 3D almost here, a lot of exclusives out and BD picking steam I doubt Sony will try to save some bucks selling less PS3s in NA. It doesnt make sense.

Talking about software: Amazing numbers for GoW3, congrats to SSM, they produced an incredible game.

ReBurn3141d ago

Yeah, I get what you guys are saying. It makes sense to try to maximize profits where they can. I just don't know that it makes a lot of sense.

I don't agree that the conversion from dollars to euros is a loss on software, though. Because the cost of materials is practically nothing, so it doesn't make more sense to produce more discs for Europe than the US unless there's a higher demand there.

Also, they might not make as much off of an individual US software sale as a European software sale, but the difference between dollars and euros isn't necessarily a loss. It could be that European gamers are getting a bit ripped off. On both hardware and software. Just food for thought.

DaTruth3141d ago (Edited 3141d ago )

The tariffs are insane in Europe/UK. It's not much more of a profit!

Yeah, it's that bad! Countries all over the world complain to the World Trade Organization about access to their markets.

+ Show (8) more repliesLast reply 3141d ago
krauley3141d ago

@the beginning of next month but everytime i venture into a walmart or bestbuy in my area, no ps3s. hope to have one in stock for me soon.

eagle213141d ago

Amazon.com gets them in and out, but in stock right now. :)

gta28003141d ago (Edited 3141d ago )

Does Amazon.com ship the system with a purchase receipt? that's all I pretty much care about. As long as they provide a physical purchase receipt that I can provide as proof of purchase in case I ever need to send it to Sony. Another thing is, is Amazon.com a authorized PS3 seller? that might be a stupid question, but Sony says they only honor warranties on PS3's purchased through authorized dealers. I know Walmart, Best Buy, Target, etc..are all authorized but not sure about some online shops. Thanks to anyone who responds.

krauley3141d ago (Edited 3141d ago )

ordering blurays or games and such from amazon but a ps3, i would feel more comfortable picking one up at a local store. unless of course i have no choice or its an incrediable deal. i just dont trust ups/fedex delivery

@4.2 i think as big as amazon is you wouldnt have a hard time getting your ps3 warranty done. your gonna be able to get a legitimate reciept and thats all sony needs.

eagle213141d ago

Don't worry, just print out your receipt with your amazon order number on it. You can also save the confirmation email and just print it out if needed.

Also Note: When you order something from Amazon, everytime you click on that same product page, you will see a note at the top of the page saying you "purchased this item on Month/Day/Year" and a link to view the order. Example: I clicked on Super Mario Sunshine and it told me when I purchased (back in 2003) and I viewed the order (and could print the order if I needed.)

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