Sony's PS3 sales in US more than double since price cut

A few of our readers were scoffing at the idea of a $399 40GB PS3. "What's the big deal," you said. This: according to Sony's CEO, Sir Howard Stringer, they've more than doubled sales in the US in the weeks since its launch. "It's the breakthrough we've been waiting for," said Stringer, "We've been holding our breath. Finally, the turning point has been passed." Prior to the October 18th price cut, Sony was selling just 30k to 40k consoles per week. Sales rose to 75,000 in the week ending October 29 rising to 100,000 the following week. Stringer also credits Wii shortages for helping the boost. Andrew House, Sony's chief marketing officer even takes a jab at HD DVD saying, "It puts us vastly ahead of where the other format is going to be in terms of an installed base in people's homes by the end of this holiday season." Perhaps, but we don't expect the boys at Microsoft, Nintendo, and Toshiba to just roll over and let this progress continue unabated now, do we?

[w @ Nov 15th 2007 7:02AM]

i agree, the wii hype is coming to an end.

in terms hd formats, i think it's all about branding, in my opinion blu-ray won a long time ago.

[TKWarrior @ Nov 15th 2007 7:43AM]

Re-reading article........

Where do you get the Wii "hype" is coming to an end in this? Last I checked, the Wii sold almost 14 million units worldwide, while the PS3 is still under 6: http://www.vgchartz.com. The PS3 still has a long way to go to catch up to the 360's market share, let alone the Wii. This won't happen until more quality exclusive titles come out next year.

I think the boost in sales has more to do with the holiday season coming and people (like myself) grabbing the 60GB models before they disappear.

And to call something "hype" in the same post as "i think it's all about branding", lol. Go back to your bridge and stop flame-baiting.

[Jay @ Nov 15th 2007 8:18AM]

TK Warrior, cut the rabid attacks on people who happen to say something with which you disagree. You complain the other guy infers something not related to the article then you yourself argue a different point from the one he was making! How old are you?

In simple terms, the past performance of "X" and the end of current/future hype about "X" are two different things. Just because something performed better previously, it doesn't mean others cannot catch up - or indeed that it itself will not perform less well in the future. Got it?

It's called rational analysis. Try it, fanboy. After you've taken out the trash and done your homework.

[TKWarrior @ Nov 15th 2007 8:44AM]

Hi Jay. You must be new here so welcome. Otherwise, if you would have "done your homework" you would have known by my previous comments on this article and in the past here on this site that I actually support Sony and own all 3 consoles. So yeah I'm a fanboy, but of competition, not of idiotic statements and flamebait.

I’m sorry if you get upset at people brining actual facts and proof to back them up to the comments section, but please don’t call it rabid attacks. Mr/Mrs. W made a wild statement not relating to the article referring to the Wii and HD-DVD, and I simply countered that statement. And I think, considering all schoolyard talk that’s here from time to time, that I did it in a way that was more tactful then the norm.

We don’t even need to get into your 2nd paragraph since I already stated how good a move this was on Sony’s part here in another comment replying to Grey Acumen earlier. So it’s ok, I know its early. Have some coffee, take a chill pill, and re-read your comment then the comments I made here. It’ll be okay Jay, everyone makes mistakes.

[FrankTheCrank @ Nov 15th 2007 8:46AM]

The Wii hype CONTINUES.

You STILL can't find one in stores. The Craigslist guys are posting found Wii's for $100 over retail.

And think of it, Wii Fit, hasn't even hit. Fat Americans are going to buy Wii Fit just like they buy exercise equipment, to later store in the other room.

[DelSource @ Nov 15th 2007 9:47AM]

@TKWarrior,

Dude, you gotta real problem! Never, EVER post a reply wich only proves the criticism some other dude has fired your way. Have some pride, man.

Hilarious........

[Lenman1 @ Nov 15th 2007 10:32AM]

I think Sony is finally doing some real television advertising here of late. I don't watch a lot of tv but over the past month I have seen several PS3 commercials. Maybe it's been there all along or maybe it's just my market but I'm just now noticing them. It's all basic advertising fundamentals. You got the money Sony so advertise your ass off!

[w @ Nov 15th 2007 10:48AM]

@TKWarrior

flamebaiting?

do you own shares from nintendo?
calm down, i am just a humble poster.

ok maybe the word i picked (hype) doesnt express exactly what i was trying to say which is normal,
since english is not my first language.

what i was trying to say is that the consumers enthusiasm surrounding the wii is slowing down as the product ages.

i am not an expert, but i am free to post my opinions, deal with it.

knee-jerk reactions are pretty idiotic too.

[teej @ Nov 15th 2007 10:58AM]

oh em gee. get a room, fanboys.

[Alan Strangis @ Nov 15th 2007 11:15AM]

Hmmm... looking at vgchartz show that all three console sales are rising at a similar rate (the PS3 marginally faster than the other two). It's still in a solid 3rd place, and if the trend continues unabated may equal the 360's weekly by mid-late December.

This is just a fluff piece meant to promote the PS3, which is fine and dandy, but using the "Wii hype slowdown" just seems wrong, because it's sales are increasing as well.

I have all 3 so I don't care, but learn to sort the wheat from the chaff.

And for my money, I've given up on the PS3 as a BR player, because I'm not gonna use a game controller or a 2nd rate proprietary remote to watch movies. I know more than one PS3 owner pissed off about the lack of IR for movie watching.

[w @ Nov 15th 2007 11:32AM]

sorry for my incorrections, i was not basing in facts, just my impressions.
guess i was wrong.

but it will happen sooner or later.

from what i know, the ps3 has a much bigger margin. two years from know sony will still be selling a lot of them. i think i cant say the same thing about the wii.

[o29 @ Nov 15th 2007 11:44AM]

You know guys, it is possible to argue a premise without resorting to these ad hominem personal attacks.

Oh wait, I forgot we're on the internet.

[Marc Federico @ Nov 15th 2007 7:57PM]

umm inaccurate?

nice try.

small increase, 15% does not equal double.

WII : 192,482 (+31%) 6,065,631
XBOX 360: 173,895 (+25%) 8,467,762
PS3 : 63,788 (+15%) 2,324,092

source:
week ending in november 10th:
http://www.vgchartz.com/aweekly.php

[ulovemikeroch @ Nov 15th 2007 8:31PM]

Mark, I love how you go on every website and try to put down Sony. Boo hoo, my sony products didn't work, boo hoo. Cry about more will ya? I don't see you bitching over Rrod, probably cause you have Microsoft's cock stuck in your mouth. Dumbass 13 year olds.

[luzzio @ Jan 11th 2008 6:43AM]

is it just me or did the avatar system lower everyones EQ by 50 points?

[Miker @ Nov 15th 2007 7:02AM]

Now if Sony can only realise they need to do the same with their Blu Ray players, everyone will be happy.

[NHAnimator @ Nov 15th 2007 8:13AM]

I agree. Release a $100 entry-level player. Take a loss per unit. Flood the market. Steal Christmas sales. Win the long term war. It would be worth the initial hit.

[boing @ Nov 15th 2007 8:21AM]

They're already taking a big loss per unit, that's half their problem.

[jason51873 @ Nov 15th 2007 9:09AM]

Do you really want Sony to own the rights to all media in the world? Do you love Sony that much?

BlueRay Wins = Sony winning its race to monopoly!

I just pray that HD DVD comes out ahead or we will all be kneeling before a giant.

[Geir E @ Nov 15th 2007 9:43AM]

Because Sony owns which other current media?

And beside, Blu-Ray is not exclusive Sony.

[cduran01 @ Nov 15th 2007 9:55AM]

Jason, who do you think is behind the current DVD format? It's Toshiba, thats why HD DVD is just a patch on the current DVD technology just to give it some more life.

Sony isn't the only company behind blu-ray, there are over 180 companies behind blu-ray with many of them equal in size if not bigger than Sony. The only reason everything having to do with Blu-ray brings up Sony is because they are the most well known and recognized brand.

[ForcedSterilizationsForAll @ Nov 15th 2007 9:55AM]

@jason51873

On the other hand, if HD-DVD wins then Microsoft is another step closer to monopoly.

[DP @ Nov 15th 2007 12:20PM]

Say what you want but Blu-ray is the better format of the two.

[Mal F4cti0n @ Nov 15th 2007 2:06PM]

DP,

What is your basis for Blu-ray being the better format?

Only thing I know is that it has more capacity than HD-DVD (50 vs 25 GB for a dual layer). What about production and manufacturing costs? Last I heard, it was a hell of a lot cheaper for HD-DVD than Blu-ray. So Blu-ray is better if you don't care about cost to the consumer?

Based on your rational; a Ford Excursion is "better" than a Toyota Rav4 because it holds more stuff. Great logic, I wish I could go through life as naive as that.

[Jimmy @ Nov 15th 2007 3:48PM]

@Mal F4cti0n,

So that you do not have to take my word or any other commenter's word for this I have posted some quotes below from Richard Casey. Richard is an Executive Producer at R&B Films, LTD. R&B has released two of the highest quality releases in HD with "Nature's Journey" and "Chronos". Officially R&B is format neutral and have released these HD productions on both formats.

"However, from a production standpoint, there is no difference in cost between HD and BD formats."

"We pay approximately 30% more for a BD Replicated Disc than we do for an HD replicated disc. To us, this is a negligible difference at this early stage of the game."
::my comment--> The cost per disc has been shown to be between $1 and $2 so the price difference he is referring to is between $0.30 and $0.60 per disk.

"We truly pushed the maximum limit of both formats with a 26mbps VC-1 Video Encode and a 96/24 DTS-HD Soundtrack for the HD-DVD and a 37Mbps VC-1 Video Encode and 96/24 DTS-HD-MA Soundtrack on the Blu-ray Disc release."

"It makes a difference when calculating Bit Budgets for each disc as well as calculating the amount of disc space available. The combined Audio / Video encode must be 30mbps or less for HD-DVD and 48mbps or less for BD."

"Also, despite claims to the contrary, I believe most professional engineers could easily hear the difference between a lossy and a lossless audio encode. So can most audiophiles. In fact, most people can hear the difference once they understand what they need to listen for. I would argue the same for video encodes. Given the right content, there are definite differences in quality at various bit rates. As the Video CODECS become more efficient, there may be a point where you can get great encodes below 20mbps that looks every bit as good as a 25mbps encode. However, at this point in time, that is not typically the case."

You can read the rest of the interview here:
http://www.hidefpreview.com/Breaking%20News.html

[shuyin198x @ Nov 15th 2007 7:04AM]

Haha let him gloat a litle. Tbh its good news for sony, good news for the wii aswell. Who doesn't like constant sold out hardware? besides consumers.

[Zero @ Nov 15th 2007 8:05AM]

Is it just me, or should Sony be happy that they're selling more consoles? It seems like they're only interested in selling Blu-Ray players...

[Grey Acumen @ Nov 15th 2007 7:32AM]

Is this referring to the same period that has already been pointed out to be an issue of people going out and buying the 60GB model, that still has backwards compatibility, while it's still available?

I recall there being various figures ranging from 70% - 100% of all sales being attributed to the discontinued 60GB model.

I have to admit, the thing that irritates me the most with these multiple SKUs thing is that in terms of keeping track of the number of units sold, people count the $399 model as being the same as the the $499($599?) model.

This makes it really hard to discern between increase of sales due to the new model being preferred to the old model, and increase of sales due to scrambling to get the old model before it is discontinued.
The former one is good, as increases in sales for this reason tend to last. The latter is bad, as sales will drop as soon as you run out of said discontinued model.

[TKWarrior @ Nov 15th 2007 7:59AM]

Agreed. This was a very slick move on Sony's part. I personally had the PS3 pre-ordered before it was released last year, but canceled it when I saw the launch library, since I personally couldn't justify dropping 600 yet when I already had a 360 and Wii.

Now, with the 60GB model being discontinued, I had to grab one before I intended on getting a PS3 since full BC is important to me and many other gamers. This not only cleans out old stock but boosts their sales before the main holiday rush. This also leaves the $400 unit wide open for those looking for a good cheap Blu-ray player.

At least I only spent 500, but a lot of us now are waiting for more quality games to justify the purchase, from a gamers POV. Even most cross-platform titles lately have been rated better on the 360. Looking forward to Ratchet & Clank and Time Crisis 4, but that's about it for now.

[scott @ Nov 15th 2007 7:41AM]

the difficulty in being able to find a Wii is a genius move. it keeps the demand really high for it and they dont have to decrease their price any because of that!

[shuyin198x @ Nov 15th 2007 7:47AM]

Not really "genius" when you consider losing potential customers to other consoles. Ps3/360.
It still amazing that after a full year of release the demand is still quite high, in some parts of the world.Retailers are taking advantage of this which sucks. €294 for the wii is not justifiable.

[alex @ Nov 15th 2007 7:49AM]

Actually if you would have taken an economics course you would realize that artificially keeping demand high by reducing supply not only hurts your total profits (because you arent selling all you could at the market price), but it provides incentives for frustrated consumers to buy other consoles, which further hurts your profits. Its important to note the difference between oversupply and the correct supply the market desires.

[scott @ Nov 15th 2007 7:58AM]

i have taken an economics course, two undergrad and one graduate. it is not keeping demand artifically high. the demand is present because people want the product, not just because the product isn't widely available to every single person. and nintendo's profit isn't being hurt by the seemingly low supply of Wii's. everytime a store gets Wiis they are sold in a matter of days if not shorter. they don't have a problem with sales like the PS3 is having. with the demand for the Wii, they can keep their price the same without having to reduce it to get people to buy it. also, the Wii appeals to people of all ages, including people in retirement homes, markets which the PS3 and XBOX 360 do not appeal to.

[scott @ Nov 15th 2007 8:01AM]

sure the Wii may lose a few customers to the PS3 or XBOX 360, but so what? the potential custmer market for the Wii is drastically huger than that of its competitors due to the fact that the Wii appeals to all types of people - including people who never gave a damn about video games in the past. the Wii can afford to have some potential customers buy PS3s and XBOX 360s because they can tap into so many markets that sony and microsoft never dreamed of their consoles being able to tap in to.

[SteveS @ Nov 15th 2007 7:46AM]

Yes, quite the "breakthrough" indeed. Who would have ever thought the possibility that lower prices could lead to more sales??? A breakthrough, indeed.

[bob @ Nov 15th 2007 8:06AM]

you said " breakthrough indeed" twice . r u really intelligent , or did u just read a sherlock holmes book ?

[FrankTheCrank @ Nov 15th 2007 8:49AM]

Pricing of the console has made a difference...but the REAL difference has been that Sony is FINALLY delivering good games.

You now can go out and pick up Ratchet and Clank, Heavenly Sword, COD4, Motorstorm, WARHAWK...and soon Uncharted, which just looks amazing.

[Jon @ Nov 15th 2007 7:56AM]

So now the disappointment level of the PS3 is double as well , Sweet ... Maybe another year from now there will be something to do with it other then watch it attract dust and watch a few blu ray movies

[Jon @ Nov 15th 2007 10:20AM]

Its funny i am low ranked , That shows that none nobody who ranked me has a PS3 , because if you did you would agree until a few games come out its worthless , i had mine since launch day and i could have waited until today to pick it up and not even known i owed the thing other then a Blu ray player

[sprint_tech @ Nov 15th 2007 11:56AM]

Jon is right. Whats the point of spending all the money on a gaming console with no games.

I mean come on...the biggest news about the PS3 lately is that it will soon be able to play divx movies and can print to a Canon printer. Woo hoo...

[Michael Chastain @ Nov 15th 2007 12:15PM]

It ALWAYS takes a year or so for really great games to show up on a system, yet every time a new console is released people buy it and complain there aren't any games. Here's a hint: Don't buy a console until the game support is satisfactory to you.

[alex @ Nov 15th 2007 8:13AM]

No, nintendo is hurting itself and its profit. even though it is making a profit on Wii, it is making a smaller profit than it would be if it resolved its supply "issues" and produced more product. It doesnt matter if nintendo is making 500 million dollars. If they could be making 600 million dollars they are pursuing an inefficent strategy. Making your own product hard to buy is quite dumb.

[Jim @ Nov 15th 2007 8:05AM]

Price wars, good for them, great for us. Bring it on, I'm waiting, (sure with an empty wallet, but I'm still waiting)

[Scaught @ Nov 15th 2007 10:37AM]

The Wii hype is over. I saw one in the store the other day. The tide is turning. BWAHAHAHAHA!!

All kidding aside, I have a Wii AND a 360 and am finally considering the PS3 due to the price drop. My wife wants to play the new Ratchet and Clank. I have to keep the lady happy.

[mlb @ Nov 15th 2007 8:18AM]

No games = no $ from me. Bottom line. I don't buy a video game console to watch movies.

[Ron Jones @ Nov 15th 2007 1:10PM]

That's exactly why I don't have a Wii, no good games for anyone older than 13...

[Jay @ Nov 15th 2007 8:25AM]

The lack of Wiis is definitely a considered strategy from Nintendo. I don't believe for a second that the PS3 and 360 appeal to the same demographic as the Wii, therefore in hyping up demand - and therefore avoiding a price drop - there is little risk of losing customers to the competition (sic). As soon as their figures go down they'll up production.

For those who disagree that the lack of supply is different, could you give a valid reason why Nintendo cannot produce enough units? It's hardly at the nadir of technology and is probably as easy to build as a clock/radio. It's not like they are waiting for quicker processes to provide blue lasers or Cell chips......

[TKWarrior @ Nov 15th 2007 9:10AM]

It’s too easy to say Nintendo is holding off supply to artificially create demand when it has been as popular as it has been. Even Nintendo themselves admitted that they had no idea it would be so popular this last holiday season.

I could believe the ‘artificial demand’ conspiracy theory if it weren’t for the fact that they sold almost 14 million unit in one year. That’s a feat in itself for any new electronic product to market, especially when considering that the X360 hasn’t sold more globally and has been to retail a full year ahead of the Wii. This is with them opening upping production and diverting consoles to the US that were intended for other markets.

The argument could be made ‘Well contract more manufactures, open more fabs”. But from a business standpoint, that will help supply for a short time until things even out, then cost the company more in the long run.

I’ve never seen arguments made for Apple purposely holding back supply when people couldn’t find an iPhone or iPod. Most I’ve seen that swear Nintendo is creating false buzz by supply are those that are fans of another console or upset they cannot find one. The Wii is hard to find because they are selling. It’s called simple economics. Deal with it.

[Jay @ Nov 15th 2007 9:40AM]

Look TKWarrior, you really must stop putting words into the posts of others and start dealing with what they say not what rantings lie in your brain. Otherwise you just come across as a silly fanboy. Where did I say "artificial"? Talk about setting up strawmen!!

Yes, all simple economics: just like increasing supply to meet demand (or decreasing supply to increase demand). There is no excuse for not producing enough Wii consoles; they are small, relatively basic and profit making. Still want to talk economics?

No Nintendo have not taken advantage of the demand yet, but that does not mean they never will!! Or perhaps there's a Wii 2 in the works?

[Yoshi Likes Boys @ Nov 15th 2007 10:19AM]

Not exactly an honor student, were we, Jay?

"Yes, all simple economics: just like increasing supply to meet demand (or decreasing supply to increase demand). There is no excuse for not producing enough Wii consoles; they are small, relatively basic and profit making. Still want to talk economics?"

This is an impressively dumb thing to say. You clearly never made it past the first WEEK of economics. Let me spell it out for you:

Yes, "increase supply to meet demand" is a sound basic principle. However, once supply is maximized within the currently available manufacturing infrastructure, if demand is still not met, the decision becomes a little more complicated. We can assume that Nintendo has its factories and its business partners' plants running at full capacity. If that is NOT ENOUGH, then the only way to increase supply further is to build more factories, or further supplement the infrastructure to support a higher manufacturing output. These kinds of modifications come with VERY HIGH FIXED COSTS, and if after 3 years of Wii production the volume is no longer necessary due to the insane demand subsiding to a more realistic level, those expenses have already been incurred and can't be reversed. Not to mention the fact that bringing in other business partners for the sake of more volume or building more plants for greater internal production creates a greater risk of a quality control lapse, and history tells us that Quality Control and Quality of Workmanship are two things that Nintendo takes VERY seriously. Microsoft has helpfully demonstrated what happens when you don't.

As TKWarrior said, in the LONG term, "increasing supply until you meet demand" is often NOT the most profitable strategy for a company, given the real world constraints. In Econ 101 it is, but that's because you're just learning about what the hell a supply and demand curve is.

Nintendo knows what they're doing. I wish I could say the same for you.