Ps3Shortage
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Sony hopes to resolve PS3 "shortages" by May
Apparently all the PS3s you see in stock don't really exist. Perhaps they're just empty display boxes, or Sony is just really quick to replace huge piles of the console; they sell out fast and get restocked even faster. But don't worry, you should be able to find a PS3 in a few months, says Sony chief executive Jack Tretton. "April or May is when we feel like we're going to catch up to demand and have product fully in stock across North America and stay there."Tretton continued by telling Reuters that the console was still out of stock in "some areas" and that the, ahem, shortages were "a testament to the fact that we've been able to manufacture and ship units on a greater pace than any previous console." Since we seemingly live in make-believe land, let's pretend Sony didn't even say this.[Thanks, Dolla Dolla]
Some interesting PS3 shortage effects
Now that the PS3 has been out on the market for a while, analysts can get a firm grasp of exactly what the shortages are doing to, both hardware and software, the various alternatives. The actual results are surprising to most of us "logical" thinkers. According to analyst groups, the biggest winner in the PS3 shortages is actually Sony. The displaced PS3 money is going to purchase PS2 software. Few are opting for an Xbox 360 as an alternative to not getting a PS3, though analysts believe the push will be enough to help Microsoft hit the 10 million goal. The biggest loser is EA, which focused too much effort on the PS3 and overextended themselves. Activision and THQ are in good positions as they focused more on the Xbox 360 and PS2. There seems to be some method behind the PS3 madness at Sony. While they are losing potential PS3 customers, either to the Xbox 360 -- the Wii is not even considered an alternative and stands by itself -- or just won't buy it at all, the money is getting filtered into the PS2 business. However, these short term gains are going to kill third party relationships as it is expected that few, if any, PS3 games will reach profitability before 2007 is over and done with. If developers chose to focus on the established Xbox 360 while waiting for PS3 shipments to rise, they may be waiting forever; the PS3 won't continue to sell without the games to go along with it.
PS3 may miss production goals ... again
Sony's press is getting worse and worse after analysts took note of the PS3 launch. As predicted, Sony missed the 400,000 goal for US launch; many analysts predicted they only reached half that amount. To add insult to injury, some analysts expect Sony to only make roughly 10% of the original 4 million promised by year's end. Ouch! In a report compiled by Bloomberg, Sony failed to ship even enough units to cover promised pre-orders to half of 150 stores surveyed. SooAnn Roberts, analyst with Kaufman Bros. (the company that surveyed the stores), is convinced that Sony may fail to ship more than 200,000 by year's end. Other analysts think Sony made 200,000 for launch and will struggle to match that number over the next month. Either way, Sony is in some serious trouble. Even with all the problems they've had over the past year, the PS3 production problems will hit home with the consumer who rarely checks up on the news lines. While a myriad of issues plague the PS3's production, the biggest killer is the decision to use Blu-ray. Will the 50GB disc capacity be enough to make up for the nearly one year delay and significantly diminished production capacity, not to mention the price?
