Sony Posts Loss as Bravia TV, PlayStation Sales Slump

[deathindustrial]

Why would releasing a smaller PS3 at the current price point increase sales to any measurable degree? I don't understand that at all. It's not like the PS3 is getting bashed globally for being too large like the original Xbox was.

Well, myself I have seen the odd bit of grumbling on the AVS forums relating to the size / form factor of the PS3. It certainly restricts what you can do with it in your AV setup since you cannot stack anything on it plus it is comparatively huge.

Personally I think it is butt ugly but then again I did not buy mine for its looks. For the record, I think the PS2 was also pretty hideous. The PS1 has been the only Sony console so far that has escaped being hit with the ugly stick IMHO.

=)

Cheers

 

[gokickrocks]

Well, myself I have seen the odd bit of grumbling on the AVS forums relating to the size / form factor of the PS3. It certainly restricts what you can do with it in your AV setup since you cannot stack anything on it plus it is comparatively huge.

Personally I think it is butt ugly but then again I did not buy mine for its looks. For the record, I think the PS2 was also pretty hideous. The PS1 has been the only Sony console so far that has escaped being hit with the ugly stick IMHO.

=)

Cheers

i am one of those that hate that you cant stack on top of the ps3 and if the pics of the ps3 slim are to be believed, they didnt make the top flat on that either

 

[Silent_Buddha]

Well, myself I have seen the odd bit of grumbling on the AVS forums relating to the size / form factor of the PS3. It certainly restricts what you can do with it in your AV setup since you cannot stack anything on it plus it is comparatively huge.

Personally I think it is butt ugly but then again I did not buy mine for its looks. For the record, I think the PS2 was also pretty hideous. The PS1 has been the only Sony console so far that has escaped being hit with the ugly stick IMHO.

=)

Cheers

Glad to see I'm not the only one that was put off by the non-flat top of the PS3. I was really hoping the PS3 Slim would fix that, but doesn't look like it. At least the smaller size will make it easier to fit. And if the price drops enough I may finally be able to sneak it into my budget.

These financials don't give me much hope for a price cut though.

Regards,
SB

 

[Shifty Geezer]

Why? Based on what reasoning?

Aesthetics. Same reason PS2Slim caused quite a jump.

 

[Squilliam]

Aesthetics. Same reason PS2Slim caused quite a jump.

There was also the factor that from what I understood it was quite common knowledge that the PS2 had reliability issues. The slim was seen as fixing it as well, and there were quite a number of people replacing their wonky PS2 fats with slims early on as well.

 

[Shifty Geezer]

That's news to me. I only know people who bought it because it was cute

 

[RancidLunchmeat]

Exactly, there was quite a problem with the PS2 and disk read errors. I don't actually think the PS2 slim helped any, but there was some thinking that it might.

Furthermore, I'm pretty sure I bought mine at $199. I don't remember if it released earlier at a higher price point or not, but by the time I got mine it was already down to the 'magical' price point.

I still don't see how just releasing a 'slim' PS3 will boost sales at the current price point. Sure, some AV freaks complain about the fact it's not stackable but the slim won't help that and the AV freaks already purchased the PS3 anyway.

We're talking about Botox Marge and Joe Sixpack here, and the size of the PS3 isn't what has prevented them from buying it. It's the price.

MRCORBO: I understand that the PS3 slim might be good for Sony. It might decrease red ink as I said (because I'm still not sure it will increase profits, just decrease losses), but the statement was made that the slim would increase SALES. That's a different statement.

 

[patsu]

It may increase sales at least temporarily *if* some are holding back their purchase until they see the new SKU. The Slim SKU leak may have dampened existing demand.

If the Slim comes with a price drop (for old SKU), then they will fall in more people's budget. Statistically speaking, this should increase sales too (until they run out of stock, or demand dies off).

If Sony wants a surer result, they'd need to launch some campaign together with the SKU release.

 

[Silent_Buddha]

It may increase sales at least temporarily *if* some are holding back their purchase until they see the new SKU. The Slim SKU leak may have dampened existing demand.

If the Slim comes with a price drop (for old SKU), then they will fall in more people's budget. Statistically speaking, this should increase sales too (until they run out of stock, or demand dies off).

If Sony wants a surer result, they'd need to launch some campaign together with the SKU release.

The only problem with that is Sony has yet to announce a PS3 Slim, let alone a release date for one.

So waiting for one is like waiting around for a Groo, assuming you've even heard rumors of a PS3 Slim which I'm betting the majority of consumers haven't.

Regards,
SB

 

[mrcorbo]

MRCORBO: I understand that the PS3 slim might be good for Sony. It might decrease red ink as I said (because I'm still not sure it will increase profits, just decrease losses), but the statement was made that the slim would increase SALES. That's a different statement.

Not by me, it wasn't. I only said that if there was a price drop, would it be enough of one to create a long-term sales increase or would it eventually lose its impact. Examples of the latter being the 360's first price drop (which led to a sales bump for Halo3 and the holidays then fizzled out by the beginning to 2008) and Sony's last price drop (the impact of which carried through the middle of 2008 and then fizzled before the holiday season).

 

[Xenus]

Of course it'll increase sales. It's new model syndrome. If it looks different people will buy it just because it's new and looks different. It always happens but without a price drop in will only be a spike.

 

[Acert93]

It may increase sales at least temporarily *if* some are holding back their purchase until they see the new SKU. The Slim SKU leak may have dampened existing demand.

If a slim unit comes I think the only measurable increase in sales, all things being equal (price, etc) would be the new model attracts new eyes. I don't think there are a lot of people who (a) know there is a slim unit coming and (b) are holding out on a PS3 purchase until it arrives. In regards to (a) I don't even know how widely known the slim is among the general consumer public (is it even real and coming in 2009? I barely know anything about it and I wouldn't say I less in the know than average consumers) and in regards to (b) the number of non-PS3 owners who are holding out for (a) to happen would be even smaller. I don't think size, at least in the US, is the major thing holding back the PS3's sales. Software, price, services, and image are much more significant issues.

 

[patsu]

The only problem with that is Sony has yet to announce a PS3 Slim, let alone a release date for one.

I was answering to Rancid's post regarding PS3 'slim' hypothetical launch.
Of course Sony is not going to pre-announce a PS3 Slim release. It will cause inventory issues.

So waiting for one is like waiting around for a Groo, assuming you've even heard rumors of a PS3 Slim which I'm betting the majority of consumers haven't.

There has been persistent rumors about a pending Slim launch and price drop. Some people will choose to wait and see.

If a slim unit comes I think the only measurable increase in sales, all things being equal (price, etc) would be the new model attracts new eyes. I don't think there are a lot of people who (a) know there is a slim unit coming and (b) are holding out on a PS3 purchase until it arrives. In regards to (a) I don't even know how widely known the slim is among the general consumer public (is it even real and coming in 2009? I barely know anything about it and I wouldn't say I less in the know than average consumers) and in regards to (b) the number of non-PS3 owners who are holding out for (a) to happen would be even smaller. I don't think size, at least in the US, is the major thing holding back the PS3's sales. Software, price, services, and image are much more significant issues.

We are not talking about general consumer here. PS3 is still selling to the core gamer group now (plus Blu-ray folks). Besides, rumors of PS3 price drop have made it outside gamer specific magazines and sites, like this one: http://www.smarthouse.com.au/TVs_And_Large_Display/Industry/T9R5R7S5

 

[RancidLunchmeat]

We are not talking about general consumer here. PS3 is still selling to the core gamer group now (plus Blu-ray folks).

Wait, what? Then who are we talking about? Are you talking about the PS3 slim spurring measurable sales by convincing their current userbase to buy an additional unit because of the size?

If so, I don't think it's reasonable. But, if it you wanted to debate that it was, it wasn't what I was originally talking about. I was talking about the average consumer who doesn't have a PS3. And I don't believe they are waiting for a 'smaller' one, and I don't believe that any measurable number would run out to buy the new 'Slim' model at the current price point.

In this case, I don't think size matters.

 

[patsu]

Wait, what? Then who are we talking about? Are you talking about the PS3 slim spurring measurable sales by convincing their current userbase to buy an additional unit because of the size?

At its current price point, Sony is still targeting the core gamers. Some of those who want to buy now may choose to wait until they see the new SKU to decide.

If so, I don't think it's reasonable. But, if it you wanted to debate that it was, it wasn't what I was originally talking about. I was talking about the average consumer who doesn't have a PS3. And I don't believe they are waiting for a 'smaller' one, and I don't believe that any measurable number would run out to buy the new 'Slim' model at the current price point.

There are core gamers who don't have PS3 yet. If we get a price drop (e.g., for the old SKU), then perhaps more average consumers will factor in.

In this case, I don't think size matters.

Price may matter since price drop rumor is rampant. 45nm Cell may matter (noise and heat level) for the more technically inclined.

 

[RancidLunchmeat]

Okay, so I think we're saying the same things here. I just wanted to be clear.

 

[patsu]

That Smarthouse article above is right on the money on the marketing front. What Sony needs (in parallel with the actual deliverables) is marketing. Consolidated marketing effort. They are rather coy, defensive, abstract and loose compared to other companies.

 

[dobwal]

Why? Based on what reasoning?

Why would releasing a smaller PS3 at the current price point increase sales to any measurable degree? I don't understand that at all.

It's not like the PS3 is getting bashed globally for being too large like the original Xbox was.

I haven't heard a single complaint about the PS3's size, nor about the need to wait for the 'next chipset' to be released that would be more reliable (like the 360).

I don't think Joe Sixpack cares about the size of the console, they care about the price.

Reducing the size might allow Sony to drip less red ink, but I don't see how or why it would increase sales.

Simply because its a new design. Some will simply replace their old PS3 with new onew just like some replaced their 360 pros with Elites when they first came out.

You don't need Joe Sixpack to cause a short term spike in sales. Nor does a short term spike in sales require rational behavior.

 

[zed]

after only shipping 1.1 million ps3's last quarter
the 'news' is they will be shipping >3 million this quarter.
Looks like the ps3 slim (or at least a pricecut) is close

 

[RancidLunchmeat]

Simply because its a new design. Some will simply replace their old PS3 with new onew just like some replaced their 360 pros with Elites when they first came out.

You don't need Joe Sixpack to cause a short term spike in sales. Nor does a short term spike in sales require rational behavior.

And I'm taking the position that without a price drop, a new model by itself will not result in a measurable increase in sales.

The 360 had reliability issues the moment it was released, many believed the Elite that was based off the falcon chipset would improve those reliability issues. I can tell you from first hand knowledge that those beliefs were ill-placed, but that doesn't change the issue.

So the differences here are that the Elite offered a larger HDD (okay that could carry forward here), offered HDMI, and was thought to correct widely reported reliability issues. Oh, and there was no difference in form factor, only a different color.

The two situations aren't similar at all. Sure a few hundred people might run out to buy a 'PS3 slim'. But nothing that will be noticeable in NPD.