Lazard: No Ramp In PS3 Sales Without Price-Cut, Better Lineup

In his latest report on the Q4 results of a number of major publishers, Lazard's Colin Sebastian has said the analyst group expects "solid 15 percent growth" in sales this year, and added that Sony is unlikely to see a ramp in pre-holiday PS3 sales "without a more robust title lineup and/or a hardware price cut."

"Initial F4Q earnings reports in the video game sector were positive," said Sebastian, pointing to both Activision's recent 67 percent growth and UbiSoft's 42 percent. "Based on our retail channel checks," he added, "we believe video game sales remain generally healthy year-to-date despite tougher year-over-year comps for the remainder of 2007. We continue to expect solid 15%+ growth in software sales in North America this year."

[sumfood4u]

Society needs this to happen! We gammers are your celebrities, so let's make it happen. Believe It!

[techie]

lol society

[THAMMER1]

The PS3 dose not need a price drop it is selling like hot cakes to fat kids with tape worms.

[calderra]

Sony's also losing over $200 per unit on the hardware alone. They absolutely can NOT afford a price cut.

[techie]

No they are not losing $200 on each unit. Those were costs before launch. They have not been updated. isupply are not trust worthy at all. New models are out in the US soon as well...so price drop is imminent

[ITR]

I heard they lose $130 now.

Production cuts $100.
= $30 lost

Price cut $100.

= $130 lost on each console sold.

Why the hell would they do that.
Thats a big gamble.
And then a price war could ensue afterwards..

A price cut would hurt Sony more then help them right now.
Maybe in 3 yrs.

[techie]

price cut in one territory...eg.US can be afforded because of Europe and Australia...where they would be making near on $100 per console. Think...they are losing more on Japanese consoles sold. Without the 20gb they are also losing less than they used to be...

[sak500]

@ITR. Deep is right, they are making less loss now that they do not have to pay salaries to 160 employees and also to the biggest expense, KEN.

[TheWishman]

I guess this person must be a damn game genius to say that the PS3 would get better sales with a price cut.

Hmm, well i think it is worth the price and that the games out for it are perfectly fine. So now what...?

Let me see at this point last year with the 360, i was playing PDZ and Oblivion ...at the same time this year with the PS3 i am playing Resistance and Oblivion.

I would say that is fairly even. Writers need to find better material

[Marty8370]

Just in time for holiday season, maybe even a price drop. Not too mention all the good PS3 games that are comin in the mean time.

[predator]

the general public dont know what home is so that wont boost sales

[BrainDead]

predator, the general public dont know half of the exclusive 360 games.

[Circa24]

Price cut is coming (diode costs went way down), and the lineup is coming.

Technology prices go down and libraries increase. How? Time. Same thing happens to every console. Every piece of technology.

I agree with TheWishman. The guy's an idiot.

[VirtualGamer]

Actually the guy says Sony needs to either increase its game library or reduce the price or both. Funny how so many just skip the part about increase the games line up which is exactly what Sony will be doing.

Sony is going to be adding 29 more games by the end of August so I really don't see a problem. 3 of those games are big exclusives which should definately help move units.

Ninja Gaiden Sigma
Lair
Heavenly Sword

[VaeVictus]

is Lazard?

[kewlkat007]

-The PS3 needs a Price-cut, Which will trigger a Xbox360 price-cut, and I can't imagine if the Wii's Price was Cut.( I doubt a Price-cut this year, its just way too early, regardless of laser diode stories)

The PS2s price was not drop in one year. Even if a price-drop how much we talking? -$200(would be the sweet spot)

-Well then again, SONY might not need a Price-Cut because HOME(as if) is going to be a system seller, according to some gamers. Who would buy a $600+ console for a virtual life? Just killa..

IMO, this holiday season will not be Sony's time. What a difference a much cheaper alternative and a year, makes for the other competitors.
Forget about the Games, we all know there will be great titles coming out in 08 but in late 07 nothing screams Killa.(IMO)

Believe it SONY time will be mid to late 2008. Then again where will the other competitors be.
If the Ps3's price cannot be dropped early enough, while 360 sales potentially climb to around 15-20 million, then SONY just might FOLD.

It hasn't been like this in the last 10 years...I luv competition.

[BIadestarX]

Prior to buying the xbox 360 I had no Idea what system blade, etc... All I knew is that I could play game and that it allowed me to play online. The same way... the only reason why you know about Home is because we know everything about the game industry... maybe too much for our own good. Regular joe will buy the consoles to play the games. And Home is not a game, is an interface to network people for them to play the games. No one will buy a PS3 to play Home. You would, but not regular joe.

[VirtualGamer]

Home is not something you play. Its a 3D representation of what the Playstation network will become. A place to interact with friends and family online. A place to share music, video, and socialize. A place to check out new things and discuss them. A place to meet up with friends and then go challenge each other to the latest game.

With how popular things like My Space and You Tube etc has become this will be all that and so much more and you can choose to participate or not. You are 100% in control of how much you want to partake in what this will become. Look at how popular this site and blogging has become. Why on earth would anyone want to reach out to a bunch of strangers over the internet to exchange ideas and views? Yet here we are doing just that. All of this that we do every day on this site can be incorporated into Home and the PSN network.

I am a big MMORPG fan and I have met people from all over the world playing a character in a video game. It's cool when you actually get to know the real person behind the character you play online with. What they do in real life, their thoughts and concerns, telling jokes etc. Some I have gone on to meet in person and others I have not but I am glad I have had the opportunity to get to know these people and share a friendship with them. For people who have never done something like this its seems odd and strange. My own brother just doesn't understand how you can be friends with a person you have never meet in real life. I get where he is coming from and I appreciate his view but everyday more and more people are becoming apart of this new social network that we as humans are creating. What do you do when you get together at your real life home? Share photos of a trip you recently took, perhaps play a card game while chit chatting, or go and watch the latest movie you just purchased or went out and rented. The idea is your spending time with one another. If people can just realize you can do the same things with a person thats over 1000 miles away then would that not be worth doing? Especially if it was family or close friends who ended up moving away but you want to stay in touch with?

Anyway thats how I view Home and what Sony has in store for those that want to particiapate.

[lil bush]

if the ps3 drops price, it would help extremely

[carlman23]

There's probably a huge Sony fanbase waiting 'on the fence' about buying the PS3 and would probably be tempted if there's a significant cut in price. If Sony cuts the price, they'll incur even larger losses, but the increased install base could potentially pay off in the end.

The problem is that, the longer Sony waits, the more likely it is that these fence sitters are ultimately just going to go 360 (there's definitely a tempting game line up).

In my mind, Sony's only got one option, and that's lose the profit battle in order to win the console/blu-ray war. The longer they delay, the deeper they dig their own hole.

And for all of you who claim that losing money is a bad thing, you shouldn't be looking at Sony... MS is hemorrhaging money in order to keep the Xbox 360 going. But both companies should be looking into the long term, and Sony's definitely gotta do a better job if they want to keep their market-share.

[kewlkat007]

A very logical way of seeing it, and is very possible. Bubble for you.

-SONY has more to loose, hence more pressure.(What will then do? they continue to loose Market-Share)

-MICROSOFT has been loosing Money from the start but is gaining Market-Share(The only thing thats most important to them, and Brand Name Recognition)

WII- is in the Twilight Zone. Where strange things continue to happen. Mysteriouly selling while there is nothing to be found on shelves.

[Kuest]

Plus, everyone keeps posting as if a PS3 price drop is about to happen. The fact of the matter is that its not. Just look how long it took PS2 (an established market leader) to drop.

[ReconHope]

duh

[Diselage]

I really can't see Sony cutting the price at all until Microsoft does. I know they want to try and gain ground on Microsoft a little faster but they can't be taking that much of a hit though either.