PS2 sales slowing and slowing ....

[chaphack]

Sony is slowing and slowing..

Sony Profit Falls on PlayStation 2 Sales

Thu October 23, 2003 02:30 AM ET

TOKYO (Reuters) - Electronics maker and entertainment company Sony Corp reported a 25 percent drop in quarterly profit on Thursday, hurt by slack sales of its PlayStation 2 game console and slumping demand for its audiovisual products. Sony also had a poor performance in its movie and music divisions, while demand for its mainstay electronics goods remained weak.

It cut its full-year operating profit forecast by 23 percent to 100 billion yen, while maintaining its net profit estimate of 50 billion yen.

Sony's results were overshadowed by an impending announcement of a $2.5 billion overhaul of its electronics business, which suffered a 6.5 percent sales drop in the year ended March 31.

The fall in quarterly profit and downbeat forecast stand in stark contrast to improving results elsewhere in Asia's consumer electronics sector, including a better-than-expected 6.6 percent rise in third-quarter profit at Samsung Electronics Co Ltd

Japanese rivals Matsushita Electric Industrial -- maker of the Panasonic brand -- and Sharp Corp are expected to announce a rise in profit when they report next week. And South Korea's LG Electronics reported a 93 jump in quarterly profit earlier on Thursday.

Sony said group net profit totaled 32.93 billion yen ($302.2 million) for the three months to September 30, versus a net profit of 44.05 billion yen in the same period a year earlier. Revenues rose to 1.80 trillion yen from 1.79 trillion a year ago.

The company's profits were above an average estimate from five analysts of a net income of 12.68 billion yen.

On an operating basis, quarterly profit fell 34 percent to 33.21 billion yen and pre-tax profits fell 10 percent to 44.06 billion yen.

Shares in Sony have severely underperformed rivals since the start of the Japanese business year in April -- a fall of six percent versus a 32 percent gain in Tokyo stock market's electric machinery sub-index IELEC.

Sony's anticipated restructuring will include a cut of about 10 percent in its global work force of 161,000 and an end to domestic production of bulky cathode ray tube (CRT) televisions as the company focuses on slimmer, flat-screen TVs, local media have reported.

Sony may also announce a joint venture with Samsung to procure a steady supply of liquid crystal display (LCD) panels, in a bid to close the gap on market leader Sharp, which holds more than half of the booming LCD television market.

Chief Executive Nobuyuki Idei plans to brief reporters on details of the plan on October 28.

Sony plans to introduce new LCD and plasma display television models in the all-important October-December quarter, which accounts for about a third of the company's annual revenues and a majority of its operating profit.

 

[chaphack]

Sony's Game division, which produces both hardware and software for games, saw its sales fall to 161bn yen in the third quarter, from 250bn yen a year earlier.

Sony blamed the sharp decline on weak Playstation sales, which were dented by a dock workers' strike in the US, and which compared unfavourably with a very strong quarterly performance in the same period of 2002.

I guess PS2 saturation point is yea reaching? Bout time though, chance for the more powerful hardwares to shine?

 

[rabidrabbit]

Look and learn.
http://www.beyond3d.com/forum/viewtopic.php?t=8576

 

[chaphack]

Yep it is all the same. Cell better be BIG TIME YEYAYEA, else what DMGA said might just come true. CHOP CHOP CHOP yeay Matrix man!

 

[London Geezer]

Oh god.. Everytime you use the word "shine" i cringe...
I guess it's all about the point of diminishing returns... Sony is not really hoping to sell 20 million consoles a year until PS3...
And i don't think Sony are worried AT ALL. and if they are, their problems really are nothing compared to the situation the competition are in and have been in sinc launch really.

 

[PC-Engine]

The competition? MS has loads of cash and their software business is bringing in loads of profit. Nintendo also has loads of cash and are making loads of profit too.

 

[London Geezer]

The competition? MS has loads of cash and their software business is bringing in loads of profit. Nintendo also has loads of cash and are making loads of profit too.

Your point?
All I said is that if ANYONE is worried, then it's NOT Sony....

 

[chaphack]

actually........imo, if anyone is feeling the heat, it has to be Sony.

their current financial hohum-nono situation is well known. their sales of the flag sheet PS systems are slowing down, they have invested millions on an un-proven Cellular architecture, for the first time, their successful SCEI wing is working on 2 major products for next gen. All these going on while 2 financially healthier rivals breathing down their necks.

We all know how voliate and uncertain new console launch is going to be. It is reset time! Your current status and rep are of little help. Tough time for Sony and SCEI.

 

[notAFanB]

it's about that time for an systems reset. anyone and everyone whom wanted/afford a ps2 has one by now?

their current financial hohum-nono situation is well known. their sales of the flag sheet PS systems are slowing down, they have invested millions on an un-proven Cellular architecture, for the first time, their successful SCEI wing is working on 2 major products for next gen. All these going on while 2 financially healthier rivals breathing down their necks.

ahahahahahaha..............er sorry couldn't resist.

 

[PC-Engine]

And i don't think Sony are worried AT ALL. and if they are, their problems really are nothing compared to the situation the competition are in and have been in sinc launch really.

 

[London Geezer]

And i don't think Sony are worried AT ALL. and if they are, their problems really are nothing compared to the situation the competition are in and have been in since launch really.

isn't that the same thing as saying that IF anyone is worried, then the last one to be wirred would have to be Sony?
jesus some of u guys need to have it spelled out word by word....

 

[Deepak]

Can some post sales fig to prove this thing....

Anyway it would have been great news for MS/N but alas their sales are not increasing....so it means that the whole market has reached saturation point.

 

[jvd]

actually........imo, if anyone is feeling the heat, it has to be Sony.

their current financial hohum-nono situation is well known. their sales of the flag sheet PS systems are slowing down, they have invested millions on an un-proven Cellular architecture, for the first time, their successful SCEI wing is working on 2 major products for next gen. All these going on while 2 financially healthier rivals breathing down their necks.

We all know how voliate and uncertain new console launch is going to be. It is reset time! Your current status and rep are of little help. Tough time for Sony and SCEI.

actually chap thats billions . Ask vince , paul and panja , they like to post the amount sony is spending as if it means anything but more money they need to make back

 

[Teasy]

Anyway it would have been great news for MS/N but alas their sales are not increasing.

Actually GC's sales have increased a hell of a lot recently in the U.S and Europe (due to a price drop and a sudden stream of quality games). I remember hearing the GC sales in the U.S were 4 times higher then normal. Also in the U.K GC has been flying off the shelves from what I can see. Stores like Argos and Dixons (that had previously stopped selling it) have now restocked GC and its selling well there too now.

Of course wether GC's sales will stay at a higher rate then the same period last year is another question (I think they will). But what is undeniable is that GC sales, worldwide, have certainly increased recently.

 

[Evil_Cloud]

Anyway it would have been great news for MS/N but alas their sales are not increasing.

Actually GC's sales have increased a hell of a lot recently in the U.S and Europe (due to a price drop and a sudden stream of quality games). I remember hearing the GC sales in the U.S were 4 times higher then normal. Also in the U.K GC has been flying off the shelves from what I can see. Stores like Argos and Dixons (that had previously stopped selling it) have now restocked GC and its selling well there too now.

Of course wether GC's sales will stay at a higher rate then the same period last year is another question (I think they will). But what is undeniable is that GC sales, worldwide, have certainly increased recently.

Sales are not 4, but 10 times higher then normal
GameCube is going to outsell Xbox if MS doesn't do anything about it.

 

[cthellis42]

Large price drops tend to do that. <grins>

Everyone will pick up during the holidays, and we'll see by how much and watch where residuals go. If sales drop more than they're comfortable with, they'll drop price broadscale (and like it or not, both Sony and MS ARE competitors of each other and have to view Nintendo's price point as sales-threatening, because it certainly commands the attention of new console buyers and affecting the direction of 2nd-console purchasers) to pick up sales and ride that as far as they can...

I would expected PS2 sales to not "saturate" so much as slow down notably before now, as their rate has been appreciably higher than even the PS1, but we'll see they way they want to run it. I think a $149 holiday price is somewhat likely, and depending on what they see of sales figures before and during, they may well keep it there. It's close enough to Nintendo's price point to not be intimidating, and tends to come with bundles that makes the consumer feel they at least make up the price gap with things they may want anyway.

We also, of course, have had a bit of slowdown in proprietary, high-profile title, as developers push notable releases to the holidays to take advantage of timing, so we'll likely see sales spring back up and hold, considering the holdiay titles are starting to come out, and the Q1 2004 ones backing them up.

 

[Sonic]

So sales have slowed down. I'm sure a price drop could fix that situation in little time and have a reverse effect.

 

[LisaJoy]

Seriously, it has to happen sometime, who on earth does not already own one(or in my household, Three).

most of the sales now are replacements and extras.

 

[Teasy]

Evil_Cloud

Where did you hear that sales were 10 times higher then normal?

cthellis42

Large price drops tend to do that. <grins>

Spending loads on marketing does that too, so does paying for exclusive games/buying devs for games and giving games away. What does it matter what did it?.. fact is sales are up

 

[marconelly!]

as if it means anything but more money they need to make back

Doesn't that mean they are taking the thing seriously and want to make the product as good as they can? Whould you like better they didn't spent anything on PS3 R&D? Well, actually, you would probably like that, because that would mean the end of Sony, but that's beyond the pont.