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Megacorps are bad for gaming; Sony, EA, Activision, MS, and their ilk
Topic Started: Oct 24 2006, 09:29 AM (6,748 Views)
sheath
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I'm going to have to make a new dancing on PS3's pic. Mark my words, PSthree + same price as 360 Elite = same as PS3 sales. That is to say that they'll have a spike, but then Halo 3 Wanker Fight and that new GTAIV add-on level them out to where they were before by Christmas. Remember what the Genesis 2 did for Genesis sales in 1993? Nothing. That's because nothing stops a downward curve in an economic slump, period.

This is a pretty good article. Here's my question, if the price cuts are going to increase both PS3 and 360 sales, but not software sales, what has really happened?

http://www.gamedaily.com/articles/news/will-ps3-price-drop-make-a-difference/
Edited by sheath, Aug 18 2009, 05:32 PM.
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sheath
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Another analyst says Sony'd price cut won't make a difference. Why? Because it isn't a price cut below the competition, it's a price cut that the competition has always been at.

http://www.gamesindustry.biz/articles/sony-and-microsoft-financially-exhausted-from-price-wars

Colin Sebastian, of Lazard Capital Markets:

"Cowan and Company's Doug Creutz said that although the price drop will benefit Sony, it's not expected to have a wider effect on the videogame market in the US due to Microsoft's Xbox 360 already catering to the hardcore gaming consumer.

'Although we think the PS3 price cut could help resuscitate demand for the platform and drive some additional software sales, we note that there is already a USD 299 core gamer focused platform on the market: Microsoft's Xbox 360 Pro.

As such, we do not expect the impact of Sony's price cut on overall hardware and software sales to be as significant as the impacts from price cuts on the PS2 in the last cycle.' "
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Belpowerslave
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Though I don't discount his thoughts, I just don't agree with them. Price has been the main thing stopping the casual Sony fan(and even a few of the hardcore) from getting a PS3, this $100 price drop is going to allow them to now go for it. Add in the Blu-Ray crowd and that's a double whammy.

The main problem here is that MS really has nowhere to go. They can drop the Pro down to $249...but that's it. This rumor of simply discontinuing it is bad news, I hope it's not true. It'd mean the MS is back to the $299 and $199 price standpoint. No one buys the Arcade unit I don't think, so they're going to head to head with Sony at the $299 price point. MS's position, up to this point, is a direct result of a much lower price point...when MS looses that, I think their position is in trouble.

We'll have to see how it goes...but I can see Sony quickly making up the 8 million units they lack between them and the 360. That's really what scare me, and what should scare you as well. If the PS3 even gets within just 2 million of the 360, the Sony hype machine will take over. Media houses, both in print and on the web, will sit there and start working for Sony again, the fanboys will start their campaign all over again...which all leads to the perception of the PS3 being the better machine...and once that gets in to the minds of the dumb-ass public, it's over for 360. We'll be right back to where we were in 1995 and then again in 2000, with all things Sony being hyped as the "best ever" and anything else "shitty". Natal won't even get a chance to shine...

Bel
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sheath
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Sony's investors don't even buy into the hype. I suspect that Ubisoft and EA are glad that the price dropped because people might have an extra $60 for one of their games. Odds are the same people would have paid $400-500 anyway.

http://www.gamesindustry.biz/articles/ps3-announcements-fail-to-halt-sony-stock-slide

PS3 announcements fail to halt Sony stock slide

Despite a seemingly strong positive reaction from the industry following Sony's long-awaited announcement of a price cut for the PlayStation 3 - and the impending launch of the PS3 Slim - shares in the Corporation continued to fall yesterday, continuing a steady descent from their two-month peak at the beginning of last week.

The stock closed down by 1.4 per cent today on the Tokyo Stock Exchange to sit at JPY 2445 (USD 26.02), declining yet further from its peak of over JPY 2770 (USD 29.48) on August 10 - a drop of around 12 per cent in total.

Investors took exception to the price cut announcement - despite the likelihood that the move will spur console sales for the company globally - with a 3.9 per cent fall in the price coming on Wednesday, the day after the press conference reveal in Cologne.

There is some agreement that if the Western markets, particularly the US, UK, France and Germany, continue to show some signs of macro-economic recovery in the next few months the USD 299 / EUR 299 / GBP 249 price points should fuel sales spikes.

However, if recovery stalls and consumer spending falls apart once again, its numbers are likely to be somewhat less spectacular.

Ubisoft CEO Yves Guillemot and EA Games president Frank Gibeau both told GamesIndustry.biz this week that they believed the price cut was a very good move for the market.
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sheath
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I don't mean to beat this so heartily, really I don't. I see what you're saying, Sony's reputation as a company is still pristine with the general public. Even my former roomate, who is usually very even headed, bought a Bluray player for his new 50" Toshiba HDTV. This is after he heard my rant about Netflix and HD content streaming. People want to believe the consumer products salespeople at Best Buy, especially when they get the idea of "going all out" in their heads. This isn't going to change with people, and as long as Sony can maintain that company image of "our stuff is just better, even if you don't know why" Sony will never go away.

One of the things I figured out early in the Dreamcast days was that Sega's reputation was at best "underdog" and at worst "generic brand". Smart consumers would Sega it because they were smart and liked to make smart purchases, and the general public would buy it because their smart friend did and they had "fun". It was really only after the consumer rejected three Sega consoles that the media's stupid diatribe started to be accepted as fact.

Fast forward to 2009-10 and we have Sony being reported by every media type as having been out of touch with reality for years. I even heard this at a christian leadership conference a couple of weeks ago. Sony is actually in the top five most out of touch companies today according to advanced strategic planners for the Industries. The main point I am trying to make is that Sony got away with this crap when they were relatively "new" to the videogame industry, and then they got lucky with the DVD revolution. The main issue is that in October 2008 the entire world economy changed, forever, and Sony's product lines are out of touch with the new reality.

Frugality is going to be the order of the day in the future, and the first company to offer that plus entertainment will be the new "nintendo" or new "playstation" in video games.
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Belpowerslave
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sheath
Aug 21 2009, 11:36 AM
Frugality is going to be the order of the day in the future, and the first company to offer that plus entertainment will be the new "nintendo" or new "playstation" in video games.
I agree, this is why I find the price drop so devastating to the 360 and Wii. The PS3 now offers the shitty Blu-Ray experience along with gaming...at the same price the 360 only offers gaming for, and only $50 more than the Wii does, again only offering gaming.

Honestly, if MS were serious about delivering a deathblow to the PS3, they'd go ahead and OK the external Blu-Ray drive for the 360. Then, people who wanted a Blu-Ray player and a gaming system would have a choice...and with the 360 being the media's current favorite, people will just blindly go for it(because that's what they're being told is "the best") instead of just grabbing the PS3 because it's the only one that plays BR as well as games.

I think MS needs to do this now too, before Sony gains any momentum with the price drop...

Bel
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sheath
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I think $300 might be the okay starting price for a next gen HD console, but for a four year old console it's just too much today. Analysts might be right that the consumer will put up with this crap for ten years instead of five now. But they are definitely right that consumers are going to jump at perceived value for cost second only to "cheap". Sony has that with the elitists thanks to Bluray and Bestbuy's undying loyalty to it. Fortunately, most people don't have a couple of thousand dollars to waste on a totally system upgrade, and don't know how to buy used HD equipment.

It has already been discovered that the vast majority of gamers this generation aren't even playing their HD consoles on HDTVs. I think Epic was the one who revealed that fact. So it's only going to take, oh, about as many PS3 owners as there already are to convince the general consumer, *which doesn't have HDTVs/Tuners, that the "jump" to PS3 isn't a big deal. Whereas the jump to DVD from VHS was noticeably huge in every respect.

Combine that with Netflix and instant load HD movies and TV shows for XBOX Live Gold members and there really isn't a value proposition in favor of the 360. Now, whether or not Best Buy will let their flock know that I don't know.
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benstylus
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Posted this on Gametz in response to someone who thinks the Sony system is currently #2 this gen instead of "DEAD EFFING LAST"), and figured y'all would enjoy it too:

I totally shouldn't have wasted my time doing this, but what the heck, it's Sunday morning and I haven't got anything better to do just yet. I pulled all these numbers from the NPD numbers posted month by month on vgsales.wikia.com. NPD's numbers may only cover the US market, but they have two important things working in their favor: 1 - they're independent, so you won't see any PR spin put on them like you would in figures released by MS or Sony, and 2 - they track units SOLD TO CONSUMERS, not shipped to retail (or to MS for repair, for that matter). There's a HUGE difference between the two.

Here's a chart I compiled of hardware sales using the NPD numbers all the way back to November 2006 (the PS3's release):

http://bensega.com/misc/chart1.gif

I've highlighted in blue the 5 months (out of 33 total) where the PS3 has outsold the 360. The only month in which it outsold the 360 by a margin in excess of 10% was in June 2008, which, not coincidentally, was the same month that Metal Gear Solid 4 was released.

Comparatively, the 360 has outsold the PS3 by at least 10% in 23 of the 33 months. What's more, in 18 of those 23 months, it outsold the PS3 by more than 20%. When Halo 3 was released, the 360 outsold the PS3 by more than a three to one ratio for two months straight (September and October 2007).

Here's the real kicker though - when you take away all the other months and focus solely on the October through December months (the crucial Holiday season), that's when the differences between the systems are the largest (not counting the spikes caused by exclusives the magnitude of Halo 3 or MGS4).

Another Fun Fact(tm) is that it wasn't until January 2008 when the PS3 hardware finally started selling better than the PS2. (To be fair, the PS2 also skunked the 360 through July of 2007 - not surprisingly just before the Halo 3 launch).

And now, what about the multiplatform games? Well, I've got a chart comparing the sales of them across both systems when they both made the top ten:

http://bensega.com/misc/chart2.gif

You'll notice the only time the PS3 came out on top in this scenario is not really even a 100% accurate comparison - it's for Sony's MLB game versus the 2K game (not an identical release on both platforms).

You may also find it queer that the chart doesn't start until July 2007... but there's a reason for that, too: No game released on both PS3 and 360 before that had high enough PS3 version sales to break the top ten.

I've got a chart for that, too. Here's a chart showing all the multiplatform games which made the NPD monthly Top Ten in sales for the 360, but not for the PS3.

http://bensega.com/misc/chart3.gif

This list is not perfect, since "The Darkness" didn't have its actual sales numbers posted, just that the 360 version broke the top ten. There were also some games like Bioshock that got released much later on the PS3, and so they couldn't have had the PS3 version in the top ten at the time. But they had the chance to outsell their 360 counterparts in the month of the PS3 release, so lets look last at the opposite chart - one showing all the multiplatform games which made the NPD monthly Top Ten in sales for the PS3, but not for the 360.

http://bensega.com/misc/chart4.gif

Good night ladies and gentlemen.

I then got a reply saying that I have WAAAAAAAAAAY too much time on my hands, to which I responded:

"As i said, it's Sunday morning. And I have a PS3, not a 360, so it's not like I have anything better to do."
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sheath
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That's awesome, I laughed out loud at the last chart.
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DarcSeven
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The price of the Elite X360's has dropped to the same price.

I think at this point, standings for each console aren't going to change.
Edited by DarcSeven, Aug 24 2009, 06:28 PM.
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sheath
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This means doom for Sony, period.

http://www.gamesindustry.biz/articles/square-no-impact-from-ps3-price-cut-until-2010

Square: No impact from PS3 price cut until 2010

Square Enix president Yoichi Wada has said that the price cut on the PlayStation 3 will not have a significant effect on the publisher until the financial year beginning April 2010.

That's despite the company releasing Final Fantasy XIII in either November or December this year.

"In terms of the impact (the PS3 cut) will have on this financial year's earnings, I don't think there will be a major difference," said Wada, according to a report by Reuters. "But I expect there to be a big impact from next year."

The Dragon Quest publisher is expecting an operating profit of JPY 25 billion and sales of JPY 180 billion for the year ended March 2010.

Final Fantasy XIII, Dragon Quest IX and Batman: Arkham Asylum are all expected to sell one million units, according to the report.
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sheath
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Even more good news for third party game publishers. Sony's marketing dollars are not going toward selling games.

http://www.gamesindustry.biz/articles/sony-to-push-playstation-3-as-total-entertainment-solution

Sony to push PlayStation 3 as a "total entertainment solution"

Sony is to focus on the PlayStation 3's Blu-ray playing and movie downloading capabilities as much as its game playing ones in a new ad campaign being rolled out ahead of the launch of its new slim console.

The company wants to "reposition" the hardware, SCEA senior vice president of marketing Peter Dille told the LA Times, in an attempt to attract new buyers from the family market as it positions the console as an all-in-one entertainment device.

"We have been a game company for years and we would never walk away from that, but research confirmed there is a larger proposition under our nose," said Dille. "We wanted to reposition as a total entertainment solution. We felt like we can really own entertainment."

Dille added that while Sony will still target the PlayStation 3 at avid gamers too, with releases such as Uncharted 2, the new ad campaign will be aimed at "moms and families" as well.

It's being launched now, he said, because more Americans are now interested in these capabilities.

One advert in the campaign describes the console as "the greatest gaming, Blu-ray playing, move downloading system around", while another features a teenager complaining his grandmother is using the console to watch films, preventing him from playing games.
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DarcSeven
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The X360 has Netflix and will have Twitter and Facebook capabilities. I think all both console's companies want to be the "total entertainment solution". But it doesn't seem like Microsoft going for the "moms and families" just yet, but I think it will happen soon.

There is still Uncharted 2, Ratchet & Clank Future and God of WarIII so there's still some games from Sony coming.
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sheath
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In the UK, one of the more competitive markets between 360 and PS3, the 360 has spiked over 40% in sales following the price reductions. Fact: if the PS3 slim was going to cannibalize 360 sales, the Elite price drop would have done nothing to stop it. So, either there is a mystery market of fence sitters who have been waiting for the PS3 to drop to $300, or the price drop isn't going to matter one bit. Either way, the 360 price drop has already improved 360 sales and PS3 sales will have to increase by 43% just to keep pace.

http://www.gamesindustry.biz/articles/xbox-360-sales-climb-43-percent-in-uk

Xbox 360 sales climb 43% in UK

Sales of the Xbox 360 Elite jumped 43 per cent during the bank holiday weekend in the UK, GamesIndustry.biz can reveal.

Microsoft dropped the price of the Elite to GBP 199 in the UK on Friday, undercutting its bitter rival Sony's PlayStation 3 by GBP 50 in the region.

"Sales of Xbox 360 are up 43 per cent," a representative for GfK Chart-Track told GamesIndustry.biz. "Essentially, looking at the price, obviously it's the Elite that's done the business with those sales."

The rep added that "it's an early start" for the Xbox 360, which dropped in price just days before Sony's slim PlayStation 3 hits retail shelves this week. "It's quite a big deal for Sony next week," added Chart-Track.
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benstylus
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Sony released a new firmware update for the ps3. The biggest difference I see? The menu now has SPARKLIES in the background. It's now 38% more appropriate for gays, but they've got a long way to go to catch up with Nintendo's dominance of the GLB crowd...
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Belpowerslave
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You're forgetting the best perk!

http://ps3.ign.com/articles/102/1020773p1.html

Causes the number one exclusive title on the system to constantly crash! That's good work!

Bel
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DarcSeven
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Number three exclusive to be exact *slapped* owww...

I'm testing a few things myself to see if any of my games have problems. Except for my internet browser which has been crashing long before the update, everything seems fine. The new XMB's pretty good to. The got rid of the old logo and replaced it with the ugly new one, though. Bastards. :D
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sheath
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ZOMG! We're all gonna die! Oh wait, look at those software numbers, nevermind the PS3 would have to sell 3000% better to approach Wii or 360 software sales.

http://www.gamesindustry.biz/articles/playstation-3-sales-rocket-1000-percent-on-slim-release

PlayStation 3 sales rocket over 1000% on slim release

Chart-Track has told GamesIndustry.biz that sales of the PlayStation 3 have rocketed over 999 per cent in the past week, shifting eleven times the number of units sold the prior week.

Sony introduced the new, slimmer SKU last Tuesday, and although Chart-Track does not reveal actual sales numbers, Dorian Bloch, director of the firm called the growth "a huge increase".

"The uplift on week 36 on week 35 is plus 999 per cent," revealed Bloch. "We don't give out the hardware numbers, but never-the-less it's a very large increase."

The boost in sales will be a pleasing early start to the Christmas season for Sony, which told GamesIndustry.bizlast month that it expected the redesign to pull in new consumers.

"I think what I've heard anecdotally is that this is the point people were waiting for - a redesigned model and, in Euros, a significant price reduction," said Andrew House, president of Sony Computer Entertainment Europe. "That's people's cue to jump into the business."

The PlayStation 3 has been remodelled earlier in the its lifecycle than the PlayStation 2. The PS2 slim, released in the 44th week of 2004, helped sales jump 310 per cent.

Chart-Track also said that last week the PS3 outsold the DS, Wii and Xbox 360 by approximately 3:1. It's the first time this year that Sony's home console has been the lead hardware format in the UK – it last held in the lead in the first week of 2008.

PS3 software sales have increased by 17 per cent in terms of units over week 35 to claim third place behind Xbox 360 and Wii, while in terms of value software sales have increased by 5 per cent to remain second behind 360 games.

The news follows a climb in Xbox 360 sales of 43 per cent last week, due to the price cut for the Elite model to GBP 199.

This week, sales for the Elite were still up in the region, said Chart-Track, an increase of 29 per cent over last week's growth.
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benstylus
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wait for a few more weeks to see how the "week on week" sales crash after this initial spike.
to quote UK:Resistance...

"No tide has turned here, it is merely a ripple in the ocean of piss that is PS3."
Edited by benstylus, Sep 8 2009, 05:37 PM.
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Groover
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Man you guys need to let this stuff go. You should enjoy the games you have.

Wishing doom and gloom for Sony doesn't make it happen. Competition is good for all us gamers.

Also what kind of math is this. PS3 sales 3 to 1 over the 360. The 360 sales that week rose 43% while the PS3 sales rose 1000%. This isn't just a price drop it is more like a relaunch. It is good to see there is some fight left in Sony to stick it out and put pressure on MS and maybe Nintendo. Remember the Wii is still $250. Sure we all know these sales can't last unless your name in Nintendo Wii but it is fun to watch none the less. Maybe MS will drop the price of Live someday or make it free.
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