Huge PlayStation 3 shortages predicted, Sony stock sinks

There's been a lot of speculation that Sony won't hit its PlayStation 3 launch targets for 2006 (which includes 2 million units at launch, and another 2 million units by the end of the year), but it sounds like they were dealt a pretty severe blow by Japanese brokerage Mitsubishi UJF Securities. The Japanese investment firm predicted major component shortages that would hamper sales by as much as a million units (trust us, that's a lot of units), and lowered its rating, causing Sony's stock to drop 3%. It's a harsh day in the office for Hirai, Kutaragi, and Stringer, but there's no doubt about it, and Sony's once again going to have to seriously prove itself come this holiday season.

[Via GamesIndustry.biz]

[Andy @ Aug 24th 2006 12:42PM]

Sony is really looking like it's days are numbered. If Blu-Ray doesn't take off and things don't start looking better for the PS3, they're screwed.

[TVGenius @ Aug 24th 2006 12:44PM]

Personally, I would hold out for $ALASKA, with all that oil...

PS3 = FLOP

[jiggleballs @ Aug 24th 2006 12:45PM]

ppff
who cares
everything that sony said that the PS3 would have, they backed out on, except blu ray.....yet another piece of equipment ahead of its own time for being dubbed worthy for the average consumer.

the price tag keeps on changing and only 3 months from failure...i mean launch date....i see sony either rolling back the PS3 wuntil next year, or hopefully never.

all sony products suck ass.....just overpriced plastic with SONY stamped into it.

[Conor Ryan @ Aug 24th 2006 12:47PM]

Oxymoron of the day? Positive projected sales leads to stock drop?

[NNTPgrip @ Aug 24th 2006 12:48PM]

Ribbons of Shame!

[Rob @ Aug 24th 2006 12:49PM]

This is no loss to the gaming community in my opinion. Sony can keep its $600 system. I would rather see the Wii or even the Xbox (although not a huge Microsoft fan) prevail.

Sony produces cheap garbage for mega bucks. Look at the PS2 launch for example. Many PS2's didn't even work on release. Such as mine. Had to mail it back to them and wait three weeks for a new machine. For anyone who will purchase a PS3, wait for a price drop and purchase it when the kinks are worked out.

[david b @ Aug 24th 2006 12:57PM]

i dont care if there stock drops i still want the ps3 it rocks and ( roB ) the ps3 can get the kinks worked out if there are any by firmware upgrades like the psp

[Mathew @ Aug 24th 2006 12:58PM]

Sony has too much riding on the PS3 to let it fail. The problem is that the gaming community is changing. I think a lot of those who were hard core PS1 and 2 players have either moved on to the Xbox or have kind of dropped out of gaming. For myself, I never owned a Sony system and I'm not very interested in the PS3.

The Wii however has my 31 year old inner child psyched. The price and gameplay look great and I like the idea of free online play. The Xbox360 has pretty graphics (though strangely not a huge jump over the original) and a nice interface but the games are just kind of boring to me.

[david b @ Aug 24th 2006 1:00PM]

PS3 rocks

[Desert @ Aug 24th 2006 1:01PM]

It doesn't matter, Sony has so many fanboys they don't need to sell it to anyone but them.

[page @ Aug 24th 2006 1:09PM]

I have both the DS and PSP and I loath the cheap "games" for the DS whereas I am in love with the games for the PSP. The PSP is a portable console. The DS is like two GameBoys stuck together with one being quasi "touch-able" its games more on par with freebies you get in a kids cereal box, short, limited, cheap, yet sugar coated.

Based on this experience I've had with these two handhelds if I am to buy one of these new home based consoles it will be the PS3.

[R3AL1Z3 @ Aug 24th 2006 1:11PM]

Now, what would be funny, is if sony planned this whole negative outlook on sony's future by everyone, and blew us all away with the PS3...

[Buck Naked @ Aug 24th 2006 1:15PM]

Is it me or does the PS3 look like something from Battlestar Gallactica? Like a ship or something?


Anybody......? Nobody else thinks that?.....C'mon..


Ok, sorry I guess I'm just retarded.

[Sean @ Aug 24th 2006 1:23PM]

Page,

I hope Sony is paying you to troll Joystiq and copy and paste the same comment in all Sony related topics, or else that's just pathetic.

It's ok if you like the PSP, there are a lot of people who do. Just don't feel insecure just because you are in the minority.

As for the topic on hand, if Sony misses another holiday season you can bet your ass that I would be selling Sony stock too. 2 million units is not enough to establish a good userbase especially with Xbox 360 having a installed base of around 5-9 mill and Wii set to sell around 6 mil this season. This will put Sony at a hell of a disadvantage going into 2007.

Talk about some pissed off developers when their games have such a small market to sell to going into 2007.

[Sean @ Aug 24th 2006 1:25PM]

oops I meant Engadget...my bad

[Just me @ Aug 24th 2006 1:29PM]

for the record, the Wii also has not started production. They are also rumored to have an earlier release then the PS3. Sony isn't the only one in this boat.

[boynamedsue @ Aug 24th 2006 1:31PM]

i love my ds. i play it every day.

My psp had some good games, but i hocked it after sony pissed me off after too many firmware upgrades that only served to cripple my enjoyment of the system, and advertising campaigns brewed up to make controversy.

[la @ Aug 24th 2006 1:33PM]

Its about time i was wondering where was todays down with sony article. DOWN with sony they suck.

[Shaun @ Aug 24th 2006 1:33PM]

Wii all the way...nothing more to it. Everything is not about the graphics these days and that is what Sony bases its life on. Open your eyes or get out of the way of the Wii...

[Brian Wilen @ Aug 24th 2006 1:35PM]

Let me explain the difference between Japan and American technology.

You see, when America sells a car, its sold. If there are any problems with it, they aren't fixed. A NEW Model is sent out.

The Japanese are different, when a problem is found, instead of making a completely new model, they fix it. If new problems occur, they fix and fix and fix!

So you may ask, why does this have any relevance to the PS3?

Well, Sony especially is known for this sort of trend. When they release something, it had better well damn work. It should be error free, it should be sold in numbers, and it should ALREADY BE PRODUCED BEFORE THE LAUNCH.

However, this is not happening for the PS3. I don't know if their CEO is a retard (My appologies to George W Bush for this label, it might offend him) but its pathetic. They f*cked up their own company and their PS3.

Good luck Sony

[Zadillo @ Aug 24th 2006 1:35PM]

"I have both the DS and PSP and I loath the cheap "games" for the DS whereas I am in love with the games for the PSP. The PSP is a portable console." - I think though that this is exactly the problem the PSP has. There does seem to be some small minority of users like yourself where the "portable console" concept does appeal to them, and they really want just shrunken down console games on their handheld device. But for a lot of people, these games aren't necessarily well suited to a handheld device.

I know you describe the DS games as cheap and not having much substance, but I really wonder about that. There are plenty of DS games that are fully realized and have a huge depth of options (i.e. Metroid Prime Hunters, Mario Kart DS, etc. etc.) but are still fun to play "on the go".

I think the PSP does have some excellent games, but I find that I mostly just play them at home (i.e. Valkyrie Profile Lenneth and Tekken Dark Resurrection right now), because they do require more of a time commitment, and I don't find the PSP to be as easy to carry around with me and just whip out to play a game for 10-15 minutes. The only PSP games I have that really fit that criteria are two of the original launch titles; Lumines and Wipeout. But it seems like the PSP is focusing a lot more on being that "portable console" and less of a good handheld gaming device.

[Wiilly? @ Aug 24th 2006 1:36PM]

@Just Me

Do you have a source to cite that says Nintendo hasn't started production of the Wii?

I'll be just as vague as you are and say, for the record, Nintendo has ramped up Production of the Wii to meet the high demand that Sony won't be able to fulfill. Sony IS the only one in this boat.

Now prove me wrong.

[Jack Harrison @ Aug 24th 2006 1:37PM]

I'm still going for the PS3 due to Metal Gear Solid 4 and if the system is delayed I couldn't care less. All game systems pretty much blow for the first year that they're out. I think I had maybe two or three games for the first year and a half of the PS2. There's still great games coming out for the PS2 and that'll be enough to keep me satisfied for at least another year.

[_man1c_ @ Aug 24th 2006 1:41PM]

bad news indeed. but if it pays off for SOny those stockholders will be killing themselves for not holding on to it.

[page @ Aug 24th 2006 1:44PM]

Don't start calling the kettle black Sean and no, I do not post the same comment in all Sony related topics as you have so daftly stated. I do however often comment on how the DS is inferior to the PSP. Now if that fact persists to get under your skin I propose you see a dermatologist as soon as possible.

[Just me @ Aug 24th 2006 1:48PM]

How about I post the job postings looking for manufacturing trainee's for nintendo that posted in early August indicating they have not started yet?

For someone that is so sure, you must work for Nintendo..if so please tell me what date I can begin my reservation and how much it will cost? Oh..you don't know either? ahh...

Difference between you and I....I'm a gamer..your a fanboy..I'll gladly own both.and willfully acknowledge that all 3 systems will succeed.

[sbono13 @ Aug 24th 2006 1:51PM]

hey ryan, i bet i can walk into a best buy on christmas eve and pick up a ps3...

[Sean DL @ Aug 24th 2006 1:53PM]

"or the record, the Wii also has not started production. They are also rumored to have an earlier release then the PS3. Sony isn't the only one in this boat."

Totally different boat..Nintendo isn't having production line issues like Sony is having, which is why their and many other Blu-Ray players are STILL not out/having major issues.

This is a bigger issues then not start production yet. Which is why Sony having 4 million by the end of the year is looking like mission impossible....And then if any of those palyer that are release have issues, a simple firmware update isn't going to work, then they'll have to repalce those systems out of the systems they already made.....

[WOOKIE DOOKIES @ Aug 24th 2006 1:56PM]

If they would have started production on
Aug. 17 (3 month,90 days roughly,2,000,000 consoles) before launch. this would mean they would have to produce 24 hours a day, 15 consoles a minute, or 1 console every 4 seconds.

[potato @ Aug 24th 2006 2:00PM]

Just me: Please work in manufacturing before you spout idiocy like that. Nintendo may be looking or a manufacturing trainee, but that would have nothing to do with Wii production. For one thing, all manufacturing is given to contractors, who manage their own workforces. Do you really think Nintendo hires their own line workers, builds their own lines, etc?

The only manufacturing people Nintendo would have on staff are of the consulting, oversight, and design variety. These are always in demand and may fulfill a product that is as of yet unannounced. It is far too late to bring in ANY manufacturing engineer for anything that will start production within the next year or so. That job posting you're looking at likely has nothing to do with Wii production at all.

[Jared @ Aug 24th 2006 2:01PM]

In reference to Mathew's suggestion that the 360 isn't a huge jump over the original Xbox I say this: Look at Black, one of the prettiest Xbox games to date (or PS2 for that matter-how'd they DO that???), running on an Xbox in 480p or whatever its Hi-Def equivilent was.

Then take a look at Oblivion.

Even in just 480p the draw distance, textures, normal-mapping the freaking PHENOMENAL lighting...

Or to be a more apples to apples comparison, Call of Duty 2. Smoke/paricle effects, amount of enemies on-screen at one time, improved AI...

I can go on, but what the hell are you people talking about??? It gets even better with a jump to 720p or 1080i.

[Just me @ Aug 24th 2006 2:06PM]

Actually the job posting was for Infiniam Labs. I do believe they are manufacturing the Wii. I'm not your average idiot that posts here so its cool. Everyone is wrong once in a while..But believe me that I've did my research before I post. Doesn't mean I'm right..but it does mean I'm not an idiot.

[Robotron @ Aug 24th 2006 2:09PM]

Here's your link @Justme
http://www.digitimes.com/bits_chips/a20060707PB205.html
I found a lot of info on Wii production, but they are not
announcing where it is being produced (maybe that huge shipment of missing DS systems is the reason why).
Try using a search engine next time instead of fanboy reasoning.

Back to the topic...

After my 360 experience and Sonys history (Rootkits, PS2 laser, exploding batteries, Mini-discs, etc) I would never be an early adopter for this system anyway. Maybe after a few years I'll pick one up (they'll be cheaper and the games will start to get better).

[HelpLine @ Aug 24th 2006 2:12PM]

To all you fools,

I'm so sick of hearing all you girls talk about "Sony's days being numbered". Seriously, who's paying you to say this crap. Sony owns almost half of the market right now and are making a system that does everything the Xbox360 does without having to buy all the extra add-ons. If you own a 360, take a second and add up all the money you have put into it. I bet its over $600. If not then wait til you buy that super sick HD-DVD addon that they are releasing for $200. You've been owned.

Sincerely,

Help Line

P.S. Click on my name, listen to some music, and chill out.

[HelpLine @ Aug 24th 2006 2:12PM]

oops. now you can click on my name.

[Just me @ Aug 24th 2006 2:15PM]

How do I have fanboy reasonings? I own a 360..will own a PS3..and will own a Wii...Also you found alot of "Is Wii already in production?" websites. You found nothing solid. Wanna know why? Because the info has not been officially released like you just said. They have not announced anything whatsoever.

Your computer screen must be really reflective...fanboy :P

[page @ Aug 24th 2006 2:17PM]

Zadillo,

For me, a "portable console" is a good handheld gaming device. I find I can whip out either the DS or PSP and play a game for 10-15 minutes once done either fold it or switch it to sleep and continue on return. The difference being I often find most DS games very simplistic with little to offer hence my preference for the PSP. A good example of how these two differ being Burnout Legends:

http://ds.ign.com/articles/673/673092p1.html

http://psp.ign.com/articles/650/650814p1.html

[Andir2.0 @ Aug 24th 2006 2:20PM]

Did anyone look at the stock? Where is the drop on this line? It looks perfectly normal to me. They dipped a bit because of batteries I assume but the one year projection still looks good:
http://finance.yahoo.com/q/bc?s=SNE&t=1y&l=on&z=m&q=l&c=
Hell, even 3 month is still pretty stable. A 2.77% drop in one day is not something to get fired up about. Especially with the battery scandal.

[Jiggsaw @ Aug 24th 2006 2:23PM]

Check it out - the POS3 VAPOR Edition.

http://img214.imageshack.us/img214/2186/pos3md7.jpg

[Avatar @ Aug 24th 2006 2:24PM]

The moment they said they were going for blu-ray the moment i thought "this is going to be interesting" and after Ms wisely decided not to support blu-ray and go for hd-dvd for both the xbox360-vista pc (even if it´s not out of the box) and to target online distribution, i knew sony were in for a huge fight, they could easily lose., i think that the way the PS3 is going to sell, will be very likeable 360 did but in reverse.. poor sales in usa not only because of the price but because there is no way in hell, that at the rate they are producing the they will favor USA instead of JAPAN.

In JAPAN the PS3 will cause a huge DS like riot and the japanese will actually start buying the 360 becuase there will not be not even a third of the supply needed with the PS3 for that market and because by then there will be 15 japanese targeted 360 games.

it´s just like that. that same effect happened when the DS lite sold out, for the three weeks the DS was nowhere to be seen, the PSP sales fired up.

But about sony being taken out by this inmediately?, nah, you know what is giving sony the biggest money? The sonyericcson deal, PS2 and their Laptops. they amassed almost 5billion this time, so it will take harder blow this time that when the Playstation was launched and it was the only thing that saved the company from having to sell 25% of their stock and diluting itself or worse.

[boynamedsue @ Aug 24th 2006 2:28PM]

a production line that could make ps3's as fast as sony needs them would make henry ford proud.

unless it were a production line run by jews.

[shirizaki @ Aug 24th 2006 2:32PM]

A shortage of a new console?!

OMGLOLWTFBBQM8!!!!!!!!!

Is that a surprise? Really? Look at....the entire history of the game industry. The have always been console shortages right at launch and curb around 4 months after release.

Their stock won't drop because of a shortage. If anything it'll go up.

[chief @ Aug 24th 2006 2:54PM]

Sony is heading into some big problems. The PS3 looks more and more like its going to fall into third place behind the 360 and the Wii. Blu-Ray is destined to fail. And now, all these battery recalls from Dell and Apple, with more probably coming soon. They are losing money everywhere. The only thing they have going for them is their TV's.

[wunderbar @ Aug 24th 2006 2:55PM]

I have a PSP and a DS, and while my DS gets about 10x the amount of playing time my PSP does, the PSP does have some good games. But before you say too many games for the DS are "cheap and childish" Play Advance Wars DS, Trauma Center, Metriod Prime Hunters(especially online), then wait for Final Fantasy III, and Zelda. Those are just games I threw out there. There are several other amazing games for the DS right now or that are up and coming.

PSP has Syphon Filter, SOCOM, Tekken, Valkyre with more than a couple games coming out that I plan on buying before the year is out.

I'm a huge Nintendo fan, and much prefer the DS to the PSP, but I don't start flame wars by calling the other conole childish. In fact, I praise the good the other console does.

On topic:

It doesn't matter how much the PS3 is, people will buy it. Why? Because it is called a playstation. There is an entire generation of gamers who were 14 when the PS1 came out who are about 25 now, most of whom have enough disposable income to be able to buy a PS3. For them, it is the only console they think is any good, since it is a playstation.

If sony wouldn't have been so insistant on putting blu-ray in the PS3, it would cost as much as the Xbox360 while still being(arguably) superior. The Cell processor will be an amazing processor some day, but it is not designed for gaming. It is desined to be a multimedia processor.

If not for the astronomical price tag, I would probably pick up a PS3, because for the most part, the feature set does excite me, as it stands now I'll be getting a Wii at launch, and probably getting a 360 next year.

Oh, one last thing. Neither Sony or Nintendo will have enough units at launch this year. Sony simply won't be able to produce enough. I think that North America will end up getting less than 500,000 units simply because they need to get as many as they can to Japan this year. As for the Wii, they might as well just mail one out to every home in Japan and send a bill, because everyone in Japan will buy one anyway. And in North America it'll sell too. In Canada Toys R Us is doing pre-orders for the Wii, has been for a couple months. I went to my nearest TRU about a week after they started doing the pre-orders to get my order down, and I was already the 21st pre order, in a week, about 6 months before launch.

wunderbar

[DBX00 @ Aug 24th 2006 2:56PM]

The stock price dropped because of the battery recall that will cost the company approximately $258 million, which was announced today.

[Md @ Aug 24th 2006 3:05PM]

The Wii Just got some official pricing according to the BBC online.

http://news.bbc.co.uk/2/hi/technology/5280958.stm

[Russ @ Aug 24th 2006 3:40PM]

Andir2.0, you need to take a look at the actual stock, which trades on Japanese markets during Japanese market hours (you provided a link to the NYSE ADR). This link shows the drop:

http://quote.yahoo.co.jp/q?s=6758.t&d=c&t=3m&l=off&z=b&q=c&k=c3&a=v&h=on&p=m25,m75,s

[Md @ Aug 24th 2006 3:59PM]

Yes, that's why I said "According to the BBC online."

Hey, it was new News(kinda)so I posted it.

[TheMoose @ Aug 24th 2006 4:25PM]

"If you own a 360, take a second and add up all the money you have put into it. I bet its over $600. If not then wait til you buy that super sick HD-DVD addon that they are releasing for $200. You've been owned."

Xbox 360 Premium Console Package: $400
PS3: $500 or $600

I've still got the money to buy a game or two or three, depending on which PS3 version you are comparing to. Another thing about HD-DVD, you can burn a regular DVD version and the HD version on the same disc, something that can't be done on Blu-Ray. So HD discs that are burned on both sides can be used in all DVD players, consoles, and computers. Games could be burned in the standard DVD and the HD, allowing for a single disc for both drives.

As this article is on the PS3...

I believe Sony really screwed up in deciding to go with Blu-Ray format. It is more expensvie to manufacture, the discs themselves are more easily scratched, and I don't see it really taking off, especially with players costing a minimum of $1000. HD-DVD will win the format war.

[Nakamura @ Aug 24th 2006 4:25PM]

"I'm so sick of hearing all you girls talk about "Sony's days being numbered". Seriously, who's paying you to say this crap. Sony owns almost half of the market right now and are making a system that does everything the Xbox360 does without having to buy all the extra add-ons. If you own a 360, take a second and add up all the money you have put into it. I bet its over $600. If not then wait til you buy that super sick HD-DVD addon that they are releasing for $200. You've been owned."

*yawn* WOW! EXPENSIVE STUFF! AND IT'S SLIGHTLY CHEAPER! Look, talk to the average blue collar worker. Let's say he loves the environment. Is he going to buy an on-sale hybrid car, for only two-thirds of the price? No. He's going to get some used, four year old sedan, even though it eats up gas like anything, because it's all he can afford. The average guy in the united states makes something like forty thousand dollars, and Nintendo has begun to figure out how to tap into this humongous well. The "Average Joe" well. Look at the way that Nintendo has been marketing the DS. It has a kind of urban feel, to attract, well, the urban market. Marketing works so well in Urban settings because fads come and go all the time in cities, but this is one thing that it doesn't matter if the fad goes. You've already bought a DS. It's too late. And who's going to get the PSP? Avid gamers of playstation, aka the middle and upper class. Try actually talking to the people who work at the places where you fuel your addictions, like gamestop. Nintendo has been the only company not losing money for months, because the gamecube is a nice, simple design, cheap to manufacture, and because people are buying it, and because the DS is an equally good design, relatively cheap to manufacture, and they're SELLING LIKE HOTCAKES. Who the hell is sony marketing the psp to? Squirrels with nuts? No, of course not. Weirdos, aka gamers. People who are already in the industry, who they want to keep. The people they don't need to market to. Their strategy is just absurd.

Look, here's what's happening. Microsoft and Sony are squabbling over this one acre of land that already has some farming equipment on it, because it has the equipment. Nintendo just took a look around, and realized that there are greener pastures for miles around, and is running out to stake its claim.

Hmm, in a completely unrelated comment, I know that a lot of my friends, as well as myself, are thinking less and less of graphics. They've reached a threshold, and it looks really pretty, but gameplay isn't getting any better anymore. Nintendo has a solution for that. They experimented with that stupid Donkey Kong game with the bongos, and with the DS, and now they're going to try out this remote thing with the wii. I think it looks like fun. (Besides, the madden for wii is going to be amazing. I don't personally like sports games, but I know an amazing amount of sales come from Madden, and being able to actually pass the ball with the wiimote is going to be a huge hit.)