Sony took the hardest blow from economic turbulence, says analyst

Posted Nov 17, 2008 at 4:23PM by Glenn M. Listed in: PS3, PSP Tags: EEDAR, Jesse Divnich, Microsoft, NPD, Sony
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Looking back at the NPD results for October 2008, we already know who brought the bacon home big time. Nintendo's Wii dominates the market, Xbox 360 outsells the PS3, and both the PSP and PS3 emerge as the bottom-dwellers. Jesse Divnich, EEDAR director of analytical services, shares his study with Gamasutra.

Divnich notes that he Xbox 360 is ahead of its year-to-date growth and the PS3 year-to-date growth is ahead of its year-on-year growth, saying that "the recent Xbox 360 price reduction and the current economic downturn have acted as a catalyst for driving Xbox 360 sales. For the PS3, however, we believe that its higher price point has hindered sales."

Taking that in mind, it does not help that both PS3 and PSP are the highest priced hardware in their respective categories. "What I am suggesting, however, is that the current economic climate is likely playing a bigger role in hindering hardware sales for Sony than it is for Microsoft and Nintendo," Divnich wrote.

Click to see larger image - Image 1


Divnich leaves us with a graph, which is a theoretical representaiton of how the holiday season will turn out if the consoles receive the same boost they got last year. Divnich believes that Sony will continue to see more floor than ceiling, saying, "Sony's PSPs and PS3 will perform significantly below these markers, again, indicating that the current economic climate is having a negative impact on the most expensive hardware units in our industry."



More bad news for Sony:


Via Gamasutra

 
 
 

Comments [refresh]

by damonous - 2008-11-17 12:04
» To read this article...

...you would expect to open-up the bitmap of the chart and see the analyst projecting a landslide of sales in 360's favor (over PS3). ...But, I'm sorry: if after the analyst is going to make a big deal about how the current economy is killing Sony's hardware, all he can forecast is an additional 50,000 360 units in Nov, and only an additional 20,000 in Dec ......then I think Sony is 100% justified in their recent public statements that 'the hardware speaks for itself & is a good value'.



Now, of course PSP is a different story (compared to DS). But, I just don't see the big deal about 360's sales performance. If it can retail for almost half as much as a PS3 and yet only pull 70,000 more units during the holiday .....then who's really "winning" (considering the loss MS is probably taking in order to sell them so low)?



--If anything, if the analyst's numbers prove to be true at the end of the year ...it would only prove that 360 is old news.

by ISOHaven - 2008-11-17 12:49
» WTF!?!?!?!?!

Agreed. As of November Sony closed the initial one year gap up by 500,000 units meaning even if these numbers hold true, Sony is still in the black from the initial debit as a zero point. In other words, Sony would have still have sold more units per year then MS.



However, even with that said, these numbers don't do anything for Sony to keep closing that gap.



This race is so close, it's a tie.



Even MS ignores these numbers and starts to magically pull ATTACH RATE numbers out of thin air. As if that matters. By focusing on attach rate isn't that same thing as QUANTITY OVER QUALITY? Sound familiar to anyone? Isaac? :) Fun Times!!!! :)

by Hekynn - 2008-11-17 12:59
» OUCH!

Ouch see Sony you guys need to lower the price of the 80GB PS3 even more at least $150 for people that dont have enough cash to get a PS3.

by RexNox - 2008-11-17 13:10
» PS3 took the biggest hit...

from having lousy communication strategy.

by Silver-Tiger - 2008-11-18 00:58
» ....

It's sad, really.

I'm starting to feel sorry for Sony.



Of course they took the hardest blow from the economy crisis.

They sell the most expensive console, after all. People need to think twice if they spend 500 bucks on a new console for Christmas, when there are much cheaper alternatives.



If you think really far, the PS3's fail is George Bush's fault. HE is responsible for the recession. So again, he fails.



The price is hindering the PS3 in so many ways... It could have been the next big thing in entertainment.



And then there are the lousy devs. The PS3 could offer so much, when devs wouldn't be so lazy to skip the PS3 or make crappy ports. So you have the strongest console, but no games. The Wii is the other way around. Great games on a *****ty console. If we would have powerful console combined with good ambitioned programmers, we would totally reach a new level of entertainment. The PS2 was just a tip of the iceberg what we could reach.



Really, the best console on the market would be the Wiistation 360. And don't come me with arguments such as "no competition". The PS2 had the monopoly in the last generation. Did we really just had bad games then?

The PSone kicked the ass of the N64. No good games in sight?

Isn't proof enough? Let's look at the PC. Nobody can deny that Windows has an absolute monopoly on PCs for years now. So did that mean we only had crappy games on Windows?



Sony, Microsoft and Nintendo all disagree with me, because they wouldn't make enough money from a combined console. Why that? Combining consolea means all licenses and patents of all three companies could be combined, giving opportunity to use more efficient and still cheap hardware. First reason to be able to sell a cheap console. If they combine their ressources, they could easily subsidize the console to sell it for CHEAP. Second reason. All games would come out on one console meaning they don't have to spend money to buy all three consoles. Third reason. Now where people have more money left, they could buy more games.

Let's say all three console producers make 100 Million dollars each year. Now take one combined console. They earn 500 Million a year because everybody has more money to spend to on games. 500 / 3 makes: 166, 6 millions. Surprise, surprise, everybody earns more.

The producers earn more money and the consumers have more games to play. Everybody profits.





Let's just look at it this way before saying a "one console future" would be garbage.





Woah, I wrote a lot, hope I don't have too much mistakes, and thank you for reading my post ^^

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