Sony faces production woes on PlayStation 3

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mito

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We've heard about Sony intentionally relying on more than one company to manufacture their PlayStation 3 units. Despite that, could they still be facing a severe shortage, one that may prevent them from reaching their shipment quota? Originally committing to ship 6 million units by March of next year, 4 million of which would be shipped this year, they are now saying they may only get half that:

Sony earlier said it would only be able to ship 400 thousand of PlayStation 3 game consoles to the U.S. and 100 thousand to Japan for the launch in November, 2006. During the whole calendar year 2006 the company aims to distribute, according to news reports, two million new-generation consoles, two times less than anticipated. But the company does not seem to be sure it would meet its “targetsâ€￾.
They will be only using Asustek to provide units this year, but the problem does not appear to be an inability to manufacture them fast, it appears to be a supply issue. Primarily, they are citing the inability to manufacture a decent amount of Blu-ray devices, a problem they had hoped to solve but were unable to. One problem consoles have seen the past years upon release is people hording them and reselling for much higher than retail. Given the already high cost of the PS3, lowered shipments will only amplify that problem.

http://www.techspot.com/news/23335-sony-faces-production-woes-on-playstation-3.html
 
Mito I think you're living in the past; not that this news isn't true or relevent, just that it's discussion has taken place in several threads over the course of the last several months. :)

Techspot's take on it is totally valid, but sort of behind the curve.

Anyway, I think the fact that Sony is having supply issues this holiday season is pretty obvious.
 
So which brave console company will be first to announce temporary, holiday season only, console price?

AKA PS3, $1199 MSRP until Jan 1 2007, at which time MSRP becomes $599.

I wish they would. I dont care how much people whine. People need to understand basic supply and demand..
 
So which brave console company will be first to announce temporary, holiday season only, console price?

AKA PS3, $1199 MSRP until Jan 1 2007, at which time MSRP becomes $599.

I wish they would. I dont care how much people whine. People need to understand basic supply and demand..

I sort of agree with that theory... maybe not ~$1200, but ~$1000 for a singular special edition launch model or something (throwing some serious pack-ins in) and break even on it. It's sort of these manufacturers getting the shaft by the 'middle men' charging what the public is really willing to pay for a tight supply. The initial consoles are the ones that cost the most to make, are the ones that are fought over the most, are the ones where all the gouging is; raise the price and hedge against all three.

But whatever, not the world we're living in. :)
 
I'm betting they are not even going to have that $49,900 PS3 core SKU in Japan at launch. They will just send all the core units to the US at least for the 06 fiscal year.

I expect only the Premium SKU will to be available, and since it's "open pricing" on that model, I fully expect them to be sold for $100,000+ (more than 1 grand in USD)

The supplies are low enough and demand high enough for the system to sellout even with insane prices. This way Sony does not lose as much money per unit, and that initial price drop that seemed unnecessary makes more sense.

But even so, it's going to be damn near impossible to score a PS3 in Japan this year. :(
 
Well, Japan is supposed to get a million PS3's by year-end same as US is, so however bad it gets, it won't be as bad as only 1/10th that. And does that open-pricing model benefit Sony at all? I'm not even sure how that works, but it seems like the retailers would be the ones able to increase their margins in that situation.
 
I'm betting they are not even going to have that $49,900 PS3 core SKU in Japan at launch. They will just send all the core units to the US at least for the 06 fiscal year.
It would be in Sony's best interests to make almost exclusively the 60GB versions. Those are I guess 80$ more profit/smaller loss per unit than the 20GB version.
 
So which brave console company will be first to announce temporary, holiday season only, console price?

AKA PS3, $1199 MSRP until Jan 1 2007, at which time MSRP becomes $599.

I wish they would. I dont care how much people whine. People need to understand basic supply and demand..

But that's a slippery sloap that invites planned shortages and price gouging.

I mean, just imagine next gen when the console makers are announcing 10 million units at launch, and then just 2 months to go they say they will only be able to ship 25% of that so the initial price will be $1,500 until the first 5 million are sold, then it will drop to $750 until all of the supply issues are worked out, and then finally settle down to the originally announced price.

I understand supply and demand very well, and what you propose invites maket manipulation of the supply in order to increase the profits of the manufacturer. Not exactly a situation I would promote.
 
holy ****

A new mario game?! Jeez cthellis42, you should start a new thread on the main page so that everyone knows, not just bury it in this thread.
 
I hear next week an exective of a company is going to release information to the press where they play up their own machine and strategy while playing down their competitions', wholly bereft of analysis or context!!!
 
I hear next week an exective of a company is going to release information to the press where they play up their own machine and strategy while playing down their competitions', wholly bereft of analysis or context!!!

Crikey!!! whatever next?!!?!! all I need to hear now is that the venerable L'inq will pass off baseless speculation from a far-east forum as breaking news and I will be ready to be knocked over by a feather!!!!
 
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