PS3 sales numbers

[digitalwanderer]

Sony Discloses Sluggish PS3 Q1 Sales, Not Shipments

Sony Computer Entertainment Inc. parent company Sony Corp. announced its first quarter fiscal year 2007 results today, detailing less-than-expected sales of PlayStation 3 consoles at 710,000 units sold worldwide. The disclosure of actual unit sales to retailers and other outlets rather than production shipments marks a policy change for SCEI.

Not sure if this has been posted or not, but figured if it has then some nice mod will nuke it for me as flamebait.

 

[digitalwanderer]

The low number of PS3 sales for the quarter have increased Sony's inventory of the console to around 2.3 million

So Sony is sitting on 2.3 million PS3 when they've barely sold 700K?

Oh man, oh man-oh man-oh man!

Anyone else see a dramatic price drop coming to the PS3 soon whether Sony wants one or not?

 

[dobwal]

So Sony is sitting on 2.3 million PS3 when they've barely sold 700K?

Oh man, oh man-oh man-oh man!

Anyone else see a dramatic price drop coming to the PS3 soon whether Sony wants one or not?

This is what probably spurn the $100 price drop for the 60Gb PS3, which I believe makes up the majority of that 2.3 million inventory.

 

[Shifty Geezer]

The fact Oneda is still expecting 11 million PS3 to sell by year's end means they're factoring in a substantial price drop.

 

[RobertR1]

Is Sony claiming that they'll ship 11million PS3 for the 07 Fiscal or by the end of 07 Fiscal they will have shipped a total of 11million from launch date?

 

[Zaphod]

So, Sony will have to sell 160% as many consoles every month for the rest of the fiscal year as they did for the whole first quarter? A tall task indeed.

Low sales from Sony and into the channel could indicate a lack of confidence in the console by retailers not wanting to be stuck with inventory they don't think they'll be able to move.

 

[Shifty Geezer]

Let's spot the person here who doesn't follow links...

Sony CFO Nobuyuki Oneda said in an analyst conference call that the company's previous estimates of production shipments for PlayStation hardware remain as sales estimates for the fiscal year

11 Million sold by Apr '08. Not that great, really.

 

[Carl B]

EDIT: Well, there might as well be a thread on it since it is from the financial report. But Digi, man - c'mon do some searching before thinking you've made a discovery!

 

[Zaphod]

11 Million sold by Apr '08. Not that great, really.

Why 11 Million by April '08? The numbers for the other consoles are obviously not LTD, so shouldn't it rather be 11 Million sold in fiscal 07?

Those 11 million plus whatever they sold in fiscal 06 minus consoles sitting on store & distributor shelves at that date should give us their projected installed base per April 1 2008. That's about the same as (or possibly more than) Microsoft had at the same point (~71 weeks) in the 360 life cycle. Which, while perhaps still disappointing by pre-launch expectation standards, isn't too bad if they can pull it off.

 

[Shifty Geezer]

Why 11 Million by April '08? The numbers for the other consoles are obviously not LTD, so shouldn't it rather be 11 Million sold in fiscal 07?

Same thing, isn't it? FY07 for Sony ends Apr 1st/6th or thereabouts doesn't it, in which case they have until the beginning of April to sell 11 million units.

 

[22psi]

How does this compare with the 360 anyone?

 

[Zaphod]

Same thing, isn't it?

I mean it reads like they say they'll sell 11 million units from 1 April 2007 through 31 March 2008. In addition, they've sold a number of consoles in fiscal '06 from November 11 2006 - March 31 2007. Your wording made me wonder if it were (you meant) 11 million units LTD by the end of fiscal '08.

 

[digitalwanderer]

Just for the record, I liked the original thread title better.

 

[Zaphod]

How does this compare with the 360 anyone?

"Since the Xbox 360 console was launched in November 2005, we have shipped approximately 11 million units." -Microsoft, Quarterly Report For the Quarterly Period Ended March 31, 2007.

As I read it, these new estimates by Sony have them expecting to do somewhat better than MS worldwide (at the same point in the life cycle) by approximately the exact number of consoles Sony managed to sell (not ship) during fiscal '06. Which, in some ways are good news (they're expecting to do better than the competition), and in some ways bad news (they're not catching up).

 

[mrcorbo]

The fact Oneda is still expecting 11 million PS3 to sell by year's end means they're factoring in a substantial price drop.

Does this conflict with their other stated goal of making PS3 sales profitable within the same time period or is it expected that they will be able to reduce production costs significantly enough to enable both?

 

[dobwal]

Same thing, isn't it? FY07 for Sony ends Apr 1st/6th or thereabouts doesn't it, in which case they have until the beginning of April to sell 11 million units.

Well, I guess we should expect massive price drops in the near future as they have 9 months to push 10+ million consoles. They going to have start moving at Wii like levels to make that target by the end of fiscal 08.

Im of the opinin that 11 million LTD by end of March 08 their target as 11 million sold during fiscal year 07 seems a little too optimistic.

 

[dobwal]

Does this conflict with their other stated goal of making PS3 sales profitable within the same time period or is it expected that they will be able to reduce production costs significantly enough to enable both?

I wonder how much flexibility they have to price drop due to the fact they are still seeing losses last quarter due to sales of the PS3 at their original price points.

I do think Sony will see profits in their division next quarter as they basically going to sell a ton of 60 Gb PS3 whos cost were recorded in the previous quarters but whos revenue will be recorded this quarter. Its almost like the MS scenario where they recorded that 1 billion dollars charge for future repairs.

 

[one]

MGS4 Pack (80GB + game) = $499

A practical price drop that leads to 3 million sales worldwide!

 

[Arwin]

I think somewhere a sony guy recently pretty much said that they don't expect to gain on the competition until a few months into 08, but then they expect things to take off seriously. Could be right, could be wrong in all sorts of different ways. But it's interesting. Probably a combination of having the right titles out, and having completed the most important cost reductions.

 

[dobwal]

MGS4 Pack (80GB + game) = $499

A practical price drop that leads to 3 million sales worldwide!

MGS4 will barely push 3 million units itself, nevermind 3 million PS3es.