PS3 Profitability, Online Services Take Precedence Over Market Share
PS3 Profitability, Online Services Take Precedence Over Market Share Sure, Sony would like to increase its market share vs. Nintendo and Microsoft, but the company is now focused on profitability and rolling out key online services for PS3.
Posted by James Brightman on Wednesday, May 14, 2008
On its earnings call today following the fiscal 2007 results, Sony management indicated (as reported by Lazard Capital Markets analyst Colin Sebastian) that "chasing unit market share" versus Microsoft and Nintendo is not all that important right now.
"...the company is now more focused on achieving profitability in the PlayStation segment and rolling out online services (e.g. PlayStation Home)," said Sebastian, and consequently, "a price cut is less likely on the PS3 this year, at least in the near term."
Sebastian also seemed to be unimpressed by Sony's PS3 hardware forecast for the current fiscal year. "The company expects to ship 10M units of PS3 hardware worldwide this year, an 8% increase year over year, which is slightly lower than we anticipated given the improving momentum in PS3 sales demonstrated in the last two quarters," he said.
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Quote:
Originally Posted by blackdelsol94
Thats sweet why dont we get them??
Quote:
Originally Posted by Kabooki
Because they are trying to make us AMERICANS jealous since we ROCK!
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Well, it's like I said in the past, in the long haul, the PS3 is going to generate more Revenue for Sony as a company than the Wii or 360 will for Nintendo or Microsoft, respectively.
^^^Depends on quite a few variables, mainly how long the 360 and Wii can last. This is obviously important when you take into account how long Sony plans to keep the PS3 around... the PS2 is a prime example.
__________________
Quote:
Originally Posted by blackdelsol94
Thats sweet why dont we get them??
Quote:
Originally Posted by Kabooki
Because they are trying to make us AMERICANS jealous since we ROCK!
Mods: JDM H22a Swap, Greddy SS Header, Greddy SP Cat Back, Car Sound highflow Cat, Skunk2 Cam gears (tuned), Light weight Flywheel, AEM CAI and Short Ram (I switch for different things). ON THE WAY: JUN Valve Train, Jun High Comp Pistons and JUN Flywheel
PS2 is still selling between 150K and 200K monthly. It's what, 8 years old?
The only sources of revenue for the PS2 were hardware, software, and accessories.
With the PS3, Sony stands to profit off of:
Blu-Ray sales
PSN Content (Games, Videos, Music, Add-on Content)
Games
Accessories
Home Advertisements
Hardware
I honestly don't think there are any variables here. Both Nintendo and Microsoft have a strong history of product 'abandonment' when they introduce something new. I honestly think we'll see a new Wii console in 2011 or so, and a new Xbox announced at the same time. Sony will continue to support the PS3, and probably announce another console a year after, but their PS3 support will still be staggering and generate a lot of profit for them.
PS2 is still selling between 150K and 200K monthly. It's what, 8 years old?
The only sources of revenue for the PS2 were hardware, software, and accessories.
With the PS3, Sony stands to profit off of:
Blu-Ray sales
PSN Content (Games, Videos, Music, Add-on Content)
Games
Accessories
Home Advertisements
Hardware
I honestly don't think there are any variables here. Both Nintendo and Microsoft have a strong history of product 'abandonment' when they introduce something new. I honestly think we'll see a new Wii console in 2011 or so, and a new Xbox announced at the same time. Sony will continue to support the PS3, and probably announce another console a year after, but their PS3 support will still be staggering and generate a lot of profit for them.
its kinda hard for sony not to try hard to maintain the PS2 sales for entry level gamers, not saying its a bad thing. the price difference between the PS2 and PS3 is what $250? not everyone wants to shell out $400 for PS3 for a 8 year old kid, thus the PS2.
for Nintento, even if they maintain the GameCube, the price difference between the gamecube and Wii is such a big game that it doesnt make sense to push the gamecube.
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Quote:
Originally Posted by divinewisdom
its kinda hard for sony not to try hard to maintain the PS2 sales for entry level gamers, not saying its a bad thing. the price difference between the PS2 and PS3 is what $250? not everyone wants to shell out $400 for PS3 for a 8 year old kid, thus the PS2.
for Nintento, even if they maintain the GameCube, the price difference between the gamecube and Wii is such a big game that it doesnt make sense to push the gamecube.
I see what you're saying, and I agree, but those are both two really different situations.
Nintendo went to 'reinvent' themselves when they released the DS. That was their big turn around. Prior to that, Nintendo was in a really tough place, with multiple Gameboy revisions and poor hardware. The DS (and later the Wii) were a very very big turn around for Nintendo.
Like wise, I think the PS3 is a really REALLY big turn around for Sony. While others may see it as Sony being arrogant, etc, I saw it (and continue to see it) as Sony changing face. We've seen them embrace online, community gaming, expanded multi-media functions, and now they're reaching out to the community more than they ever did before.
I think this, for me, has been the absolute best 'generation' of gaming I have ever seen. I've been gaming since the NES, and I don't think I've ever seen competition reward gamers as much as these last two years.
I see what you're saying, and I agree, but those are both two really different situations.
Nintendo went to 'reinvent' themselves when they released the DS. That was their big turn around. Prior to that, Nintendo was in a really tough place, with multiple Gameboy revisions and poor hardware. The DS (and later the Wii) were a very very big turn around for Nintendo.
Like wise, I think the PS3 is a really REALLY big turn around for Sony. While others may see it as Sony being arrogant, etc, I saw it (and continue to see it) as Sony changing face. We've seen them embrace online, community gaming, expanded multi-media functions, and now they're reaching out to the community more than they ever did before.
I think this, for me, has been the absolute best 'generation' of gaming I have ever seen. I've been gaming since the NES, and I don't think I've ever seen competition reward gamers as much as these last two years.
different approach between Nintendo vs MS/Sony; but the good thing about this generation of system is that everyone is winning. there isnt a clear outright winner. the game industry in general has expanded and all the hardware and software companies are racking in billion$$$.
i dont think we will see the big disparity between game system as we did with the PS2/Xobx/Gamecube. we can say that the wii is the leader in terms of sales, but its almost a complementary system to both 360 and PS3.
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Quote:
Originally Posted by divinewisdom
different approach between Nintendo vs MS/Sony; but the good thing about this generation of system is that everyone is winning. there isnt a clear outright winner. the game industry in general has expanded and all the hardware and software companies are racking in billion$$$.
i dont think we will see the big disparity between game system as we did with the PS2/Xobx/Gamecube. we can say that the wii is the leader in terms of sales, but its almost a complementary system to both 360 and PS3.
Well, to most 'gamers' it is, but I think the amount of folks who bought a Wii just to play Wii Sports or on it's hype out number the folks who own a Wii and or PS3 / 360.
That said, it isn't a bad thing, hopefully the Wii can bring in fresh money from people who otherwise were never interested in games.
PS2 is still selling between 150K and 200K monthly. It's what, 8 years old?
The only sources of revenue for the PS2 were hardware, software, and accessories.
With the PS3, Sony stands to profit off of:
Blu-Ray sales
PSN Content (Games, Videos, Music, Add-on Content)
Games
Accessories
Home Advertisements
Hardware
I honestly don't think there are any variables here. Both Nintendo and Microsoft have a strong history of product 'abandonment' when they introduce something new. I honestly think we'll see a new Wii console in 2011 or so, and a new Xbox announced at the same time. Sony will continue to support the PS3, and probably announce another console a year after, but their PS3 support will still be staggering and generate a lot of profit for them.
This is true, but what you have to remember is that the PS3 is not the PS2... secondly, by variables I was simply referring to how long Nintendo and Microsoft can keep their respective consoles in the market, and at the same time how well these consoles do.
As far as that list goes, Microsoft and Nintendo make bank in all the same areas, minus Blu-ray, of course. So again, it really just comes down to how long each console can stay in the market, and also how well each respective console does during that time period.
__________________
Quote:
Originally Posted by blackdelsol94
Thats sweet why dont we get them??
Quote:
Originally Posted by Kabooki
Because they are trying to make us AMERICANS jealous since we ROCK!
different approach between Nintendo vs MS/Sony; but the good thing about this generation of system is that everyone is winning. there isnt a clear outright winner. the game industry in general has expanded and all the hardware and software companies are racking in billion$$$.
i dont think we will see the big disparity between game system as we did with the PS2/Xobx/Gamecube. we can say that the wii is the leader in terms of sales, but its almost a complementary system to both 360 and PS3.
X2. It's a much healthier market then it was last time around.
__________________
Quote:
Originally Posted by blackdelsol94
Thats sweet why dont we get them??
Quote:
Originally Posted by Kabooki
Because they are trying to make us AMERICANS jealous since we ROCK!
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