Controller chips manufacturer increases shipments due to Sony's demand

[Farid]

http://www.digitimes.com/news/a20070910PD201.html

Genesys Logic saw its controller IC shipments increase to a record of over 8 million units in August as a result of strong demand from the Sony PlayStation 3 (PS3), according to company sources.

...

The sources said PS3-use card reader controllers and USB hub controllers rose significantly, with Sony likely to become the design house's biggest client once more.

Although it is still uncertain whether Sony will continue increasing its orders, it is very likely that shipments will hit new highs in September and October, as August is usually not the strongest month of the high season, the sources said.

Nothing really newsworthy here, but it gives an hindsight at Sony's current manufacturing plans with the Playstation 3. The company is not decreasing the production in response to the weak, to say the least, demand.

I made this thread to bring the information to the folks who like to keep track of manufacturing/inventory data about consoles. But I also thought this did fall in line with the 399 rumour floating around. Of course I'm not certain a 399 "low-value" SKU would have a media card reader, meaning this increase in orders from Sony would be nothing but the company stockpilling parts for the usual holiday sale surge. Although, without a $399 PS3 available, I don't see the sales spike anywhere close satisfactory level for Sony.

 

[patsu]

http://www.digitimes.com/news/a20070910PD201.html


Nothing really newsworthy here, but it gives an hindsight at Sony's current manufacturing plans with the Playstation 3. The company is not decreasing the production in response to the weak, to say the least, demand.

I made this thread to bring the information to the folks who like to keep track of manufacturing/inventory data about consoles. But I also thought this did fall in line with the 399 rumour floating around. Of course I'm not certain a 399 "low-value" SKU would have a media card reader, meaning this increase in orders from Sony would be nothing but the company stockpilling parts for the usual holiday sale surge. Although, without a $399 PS3 available, I don't see the sales spike anywhere close satisfactory level for Sony.

Any way to track 40Gb HDD movement ?

 

[liolio]

So Sony is on the fence to start a price war against MS.

Interesting I will take some popcorn and cke and watch the fun

 

[dobwal]

http://www.digitimes.com/news/a20070910PD201.html


Nothing really newsworthy here, but it gives an hindsight at Sony's current manufacturing plans with the Playstation 3. The company is not decreasing the production in response to the weak, to say the least, demand.

I made this thread to bring the information to the folks who like to keep track of manufacturing/inventory data about consoles. But I also thought this did fall in line with the 399 rumour floating around. Of course I'm not certain a 399 "low-value" SKU would have a media card reader, meaning this increase in orders from Sony would be nothing but the company stockpilling parts for the usual holiday sale surge. Although, without a $399 PS3 available, I don't see the sales spike anywhere close satisfactory level for Sony.

Couldn't that strong demand come from upping production so Sony can deal with the holiday demand. Production increases should be a given at this time. Unlike Nintendo, Sony and MS has the luxury of pushing back production of their holiday lot as current production is no where near a 100%.

 

[TheChefO]

So Sony is on the fence to start a price war against MS.

Interesting I will take some popcorn and cke and watch the fun

Eaxctly what I thought when I heard about Sony's intent to raise funds for a ps3 price-drop.

Price war with MS ... hmm ...

{popcorn}

If nothing else, it will be entertaining.

 

[Arwin]

Not sure this is about a price war. I'm sure there's a plan to match price, cost and demand, even independent of any competition. If Sony keeps the PS3 at 599 forever, then not only does it decrease in value for the consumer, but it simply won't reach a large part of its audience. They must have a pretty good plan about how they are going to decrease costs for the machine, as that's what consoles are all about. They're not intended to make a profit on hardware, and they are going to follow the build cost as close as they can.

 

[TheChefO]

They're not intended to make a profit on hardware, and they are going to follow the build cost as close as they can.

Indeed, but if they are raising funds to support a pricedrop, they won't need to wait on BOM reductions.

Whether they are wanting a price war or not is irrelevant. All that matters is what the effect of pricing their product will do for themselves and for their competitors. ATM, Wii is selling all they can make, thus no matter what MS or Sony do, they can't lose sales to Wii. Wii could however lose sales to MS or Sony. probability of that seems remote at this point though due to "targeted demographic" and disparity in price of MS/Sony vs Wii.

MS vs Sony though is a different argument. They target generally the same demographic and both are in the not-so-cheap price range. Both are also selling well below manufacturing ability. Moves made by either will affect the other.

Sony dropping ps3 price will likely affect xb360 sales as well as their own and vice versa. Not a whole lot at this time as the prices are still far enough apart and games selection as well, but over the holidays, with the right moves, they will canabilize eachothers markets. Most of the good games are going to be multiplat, thus only a minority will base their decision on exclusive games.

Take price out of the equation and it's down to features and name recognition. Both points go to Sony. Thus MS will have to respond to a roughly equaly priced ps3 if it hits market.

 

[liolio]

I want to add that if sony has a system @399$ with a 40GB HDD and who actually is able to act as the best bd player of the market, M$ can't sell the 360 @349$

Shortly, if this rumour is true, the pro pack will be 299$ and the arcade pack 229$.
And sadly for Sony this place M$ prices in the "mainstream" market while 399$ is still quiet a lot.

In fact I almost thinkSony should better shaved only 50$ so M$ can chose to not react/follow.

 

[Blade47167]

I want to add that if sony has a system @399$ with a 40GB HDD and who actually is able to act as the best bd player of the market, M$ can't sell the 360 @349$

Shortly, if this rumour is true, the pro pack will be 299$ and the arcade pack 229$.
And sadly for Sony this place M$ prices in the "mainstream" market while 399$ is still quiet a lot.

In fact I almost thinkSony should better shaved only 50$ so M$ can chose to not react/follow.

Seriously doubt MS's financial ability to drop the prices anymore till at least next year. Who knows how much the warranty thing is going to end up costing them not to mention the massive amount of debt laid down by the original xbox division and its inability to have ever turned a profit even now.

If Sony can hit ~$399 MS will be in trouble.

 

[liolio]

Seriously doubt MS's financial ability to drop the prices anymore till at least next year. Who knows how much the warranty thing is going to end up costing them not to mention the massive amount of debt laid down by the original xbox division and its inability to have ever turned a profit even now.

That's why M$ only cut 50$, i'm sure they're lagging behind their scheduler as far as price is concerned.
More Sony pressure wasn't that strong when they do so.

If Sony can hit ~$399 MS will be in trouble.

Sony had already swalow huge loss (billions but I can't remenber the figure) reaching the 399$ is not trivial.
And yes it could really hurt Ms but if Sony can swallow more loss so do Ms especially if this rumors is true a 349 pro pack against 399$ is an awful situation MS will have no choice but cut 50 more dollars.

IMHO

 

[cthellis42]

Just as long as they don't need what iPod's do... I hear Apple has a contract for first pickings from all flash RAM from here 'til doomsday!

 

[dobwal]

Seriously doubt MS's financial ability to drop the prices anymore till at least next year. Who knows how much the warranty thing is going to end up costing them not to mention the massive amount of debt laid down by the original xbox division and its inability to have ever turned a profit even now.

If Sony can hit ~$399 MS will be in trouble.

MS probably has more flexibility in dropping its price than Sony has in price dropping. MS has already set aside a billion dollars as of last quarter to deal with the warranty issue so going forward it will not be a negative reflection on their earnings.

MS has only price reduced its two oldest sku by $20 and $50 dollars over the last two years, this is probably more of a reflection of Sony's high price and MS's concerns with profitability versus trying to compete with the Wii on price. Given a huge price drop by the PS3 that would negatively affect 360 sales, MS could respond in kind but with less of a hit than Sony.