Glut of PS3 in channel in USA, is this why no Blu-ray movie sales blip?

Discussion in 'Blu-ray & DVD Players & Recorders' started by StooMonster, Dec 20, 2006.

  1. StooMonster

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    According to an article by gamesindustry.biz there is a glut of unsold PS3 in channel. Tracking firm NotifyWire believe this is down to high price of PS3 and retailers forcing bundles on customers.

    Ian Drake, president of NotifyWire, believes that interest is waning for the console, and illustrates examples with comparison against sales of Xbox 360 last year.

    http://www.gamesindustry.biz/content_page.php?aid=21856

    StooMonster
     
  2. BadAss

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    If thats true then we'll see the PS3 here in the UK sooner rather than later.
     
  3. andythescientis

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    Does not supprise me one bit, i've thought for months sony were having a laugh with the price their charging for a games console. The console market has changed and matured, more 25-35s buy them than ever before. However this market is far cleverer now, and more likely to wait till after the initial mad rush (which kids can't do). While there is little software and high price the savy 25-35s won't be throwing cash at PS3s. I don't think sony get the fact that we're not the same in the US and Europe as the mad must have japanese consumer. As i've said before, sony could stick lights on a dog poo and sell it in japan, that's how their market works, we need far more than flashy lights and cool must have spin.
     
  4. StooMonster

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    Possibly, but they are in channel i.e. with retailers so they cannot be pulled back. But does mean that Sony may stop feeding retailers and concentrate on new markets, such as Europe.

    There are plenty of rumours that PS3 European launch is going to be 3/3/07 however Sony are denying this. "pure speculation" they say.

    http://www.gamesindustry.biz/content_page.php?aid=21827

    If there is a glut of PS3 in channel in USA, it appears to me that 'bundling' may be route cause.

    StooMonster
     
  5. paulfoley

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    I think what they actually need is a low priced, basic model with 5.1 analogues plus component and HDMI. They could call it the BR-A1 ?

    :rolleyes:
     
  6. LOXjet

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    I really think Sony could be in trouble with the PS3...

    Even though it's selling them at such a high price, they are loosing hundreds of $'s on each unit. Of course they make that back on sales of games, but consider the following...

    The negative press (for Sony, the PS3 & Blu-ray). The high cost. The low output of consoles. The talk of a 'glut' of consoles left already (only a month into it's life). The large amount for sale on ebay (assuming they are selling, machines are sitting around not selling games and costing Sony money). The low attachment rate (launch titles are pretty weak and few and far between). The fact that Sony has frustrated many manufacturers, developers & publishers with delays, Blu-ray and launch problems. The European situation (say no more!). The loss of PS exclusives (so lower games sales as they are shared across multiple platforms). The Blu-ray factor (if people buy it to watch films and not play games, Sony will never make that lost money back).

    Add all these up and I believe Sony have got themselves into a bit of trouble here. They are also into a catch 22... to lower the price of the console they have to sell games but they won't sell them (at a fast rate) becuase the console is too expensive to buy in the first place (for a lot of people). The 'average' consumer will wait until the price drops to buy one (and therefore buy games)... and there's your catch 22. Of course Sony could artificially drop the price early, but then they are going to loose even more money even faster.

    Looking way forward... you've also got the situation where, just as the PS3 might really come down in price and take off (3-4 years) there will already be talk of the next XBOX etc (the XBOX vs PS cycle has been broken by the year gap between them).

    The PS3 certainly won't flop but it won't dominate either... and Sony need it to dominate (as the PS2 did) to make it commercially viable long term.
     
  7. Dave2

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    This is why a console will not win a war and it was the demise of the ps3 having bluray built in.

    I dont think sony will crash and burn with the ps3 but there market share will have dropped . I dont think they will reduce the price of the console due to the fact they loose too much on it already plus it is only £250 in japan to buy which is a whole lot cheaper than the release price here.

    Microsoft xbox360 managed its console rather well in the aspect in not waiting for the hd-dvd drive and thus having a cheaper price and more of an option for the individual user to select if they would like a HD format of movies.

    With this in mind fox and disney may have second thought as to support both formats but it will not happen anytime soon maybe after a year 2008 ish.
     
  8. ani4ani

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    When this launches in Europe at an expected 595 Euros, they will probably be breaking even on the consoles. The record highs of the UK£ and Euro against the yen / dollar at the moment means converting into $ means at least they will breakeven. Analysts wreckon it costs Sony $763 to make each one - this to me, is the main reason why a European launch will not delay further. At current exchange rates, this market is now too lucrative.

    Whether the PS3 dominates remains to be seen, but people forget that the PS2 is outselling the PS3 & 360 combined twice over, each week. People quote GOW as selling a million copies in its first month, but so did Final Fantasy for a last generation console! I do think that the PS3 may struggle to sell like the PS2 has, but the PS2 is still selling at rates near its peak popularity, and this provides Sony with a good backbone support for the PS3.

    Finally, since Sony is the third largest movie studio / media company in the world, I think that people buying blu ray films will be just as acceptable to Sony as games. ;)
     
  9. Rasczak

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    It does seem that interest in the PS3 is alot less than expected...you only need to look at Ebay prices, in comparison to the Xbox 360 last year, to see the interest just isn't there. I wonder why? Is the price just too high? Is there no interest in BluRay?

    Looking on the positive side though, as a few others have mentioned, if the PS3 isn't selling in the US then hopefully the UK launch will occur in March :clap: The question is will people be interest here? Especially if it retails for £400+?

    Maybe Microsoft was spot on when they decided not to go with a next gen drive - has BluRay killed the PlayStation brand?
     
  10. StooMonster

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  11. Toasty

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    Interesting point and one that could be a potential monkey on the PS3 back. Xbox 360 is here and the original xbox is all but disappeared from shops and consumers minds, same with Wii and Gamecube. Can sony do the same with PS2? If they don't, where do games developers focus their effort? PS2 or PS3? Will the thousands buying PS2's this christmas want to buy a PS3 next year?
     
  12. ani4ani

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    I think its all falls into the Playstation brand, which means the pressure for the PS3 to absolute succeed immediatly is less, but no less desirable.

    To answer the question about ebay sells - the main reason they're not higher is simple - eBay keep cancelling the auctions! I have bid on dozens of them to disappear towards the end. The second reason [from my point of view], is that neither the US or Japanese console is really that attractive. Although I can afford to "waste" my money, with the console cost being high in any event, some people are deciding to do this once, and feel that a wait until March is probably the best thing to do. I was waiting, but couldn't resist Christmas without one. I ended up getting one off-line [cancelled by eBay - he has three more by the way] The 360 didn't attract any different price - I got mine for £480 each on eBay [launch day] and these were for real McCoy UK models which have to have more value.
     
  13. Dave2

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    What alot of people have to understand is that the ps2 was and still is one of the best consoles of its time and is still outselling both ps3 and xbox 360 , the only console that is outselling the ps2 is the nintendo DS.

    With people buying the ps2 they are probably thinking that why do we need the ps3 ? and why do we need to pay £500 more so when they can have a ps2 and a xbox 360 for the price you would pay for a ps3 ?.

    I still say the format war will not be decided on a console and will always be the case.
     
  14. Toasty

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    I agree, but the future for sony and bluray is PS3 not PS2. I believe it would be a step backwards if in a years time PS3 is being out sold by PS2. Note: I doubt this will be the case.
     
  15. ani4ani

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    I lay odds that the PS3 will launch at £325 - £350 and £399 - £425 [20 GB and 60 GB] respectively. In fact, I have booked marked this thread to come back when it happens. :D

    Although I agree that the "wars" won't be decided by the consoles - the winning format will also have the winning console.
     
  16. mattym

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    when the ps2 came out, the original playstation continued to sell, new titles came out on both machines for a while, and then slowly the ps1 releases stopped, sony should follow the same pattern, the installed base of PS2 is massive, sony are looking at a longer lifespan for the ps3, so i can see the ps2 still being supported and manufactured for some time yet.

    PS3 is still selling out, the mention of one deal being on the net for 12 hours before selling hardly points to not selling, though personally i think they shoudl be selling in the uk for £399 at most
     
  17. LOXjet

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    :D

    I reckon £350 - £399 for the lower model and £450 - £499 for the higher.
     
  18. mr_yogi

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    As far as i'm aware the UK (and probably Western Europe) is only getting the 60Gb version.
     
  19. Deleted member 92943

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    SONY can get it in their heads now that the PS3 will never be as Big as the PS2. They aren't invincable and i reckon Xbox 360 and Wii could really clean up this generation.
     
  20. ani4ani

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    You are quite probably right re Sony, but I really think the big losers here will be the 360. They are going to be squeezed between a rock and a hard place, i.e. the cheapness of the Wii and the Speciifcation of the PS3. Between them [granted mostly the Wii], they have acheived 1/2 of the 360 total sales in less than a month! The Wii has achieved in 2+ weeks [2.2M worldwide sales] what it took the 360 5 months to achieve. At this rate, by the end of February the Wii will have sold more than the 360.

    All down to opinions of course, but that's my view.
     
  21. Dave2

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    excellent points. i think i read some place that the market share for home consoles were xbox 360 37% ps3 36% wii 27% these figures were for new consoles only.

    I guess these figure have changed slightly as the wii has been doing rather well.

    But as we are going off topic slightly i think we should get back to topic and say consoles are only a very small percentage which will effect the HD format war.
     
  22. Dave2

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    The specifications of the ps3 ?

    Yes the ps3 has some technology better than the xbox 360 but not much more , the 360 has a better GPU and can output better pixil mapping etc but while the cell proccessor on the ps3 can throw out a extra terraflop this will never be used or not untill they actually learn to intergrate it into the code of games etc.
     
  23. ani4ani

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    Specifications

    Larger Hard Drive [actually a hard drive!]
    Wireless Built-in
    Card Readers
    Standard USB 2.0 Specifications allowing connection of multiple hard drives and other USB devices [including a printer]
    Bluetooth - use any headset you like.
    The ability to install Linux [user option] and run it like a PC - writing this post on it now.
    HDMI Output + Component simultaneously
    Blu ray built-in

    that is what I meant by superior specifications...although I don't get the free fan heater :)

    Even if we accept [I don't, as I can compare directly between the consoles] that the actual game play is identical, the PS3 if far higher specified.
     
  24. peterweg

    peterweg
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    Merril Lynch :D They didn't even manage to add-up the total properly, they came up with $900. That is the sort of reasearch we are supposed to trust?
    It was pure guesswork. However experts who took it apart after launch put the total cost at $768.

    Whatever the figure,l Sony will want to start selling in Europe ASAP. There is a good chance they could launch early as the manufacturing problems have obviously been sorted (from the glut of new shipments being reported)
     
  25. StooMonster

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    Merril Lynch, yeah well analysts from different houses ... some do have maths problems. ;)

    Still doesn't change the fact that even if components were only $768 some $32 cheaper; but that still doesn't include cost of manufacture, packaging, distribution, etc. so cost per console is higher still.

    Obviously Sony will want to start selling in Europe ASAP, especially with weak dollar, every extra pound/euro here makes them more yen.

    The 'glut' is not new shipments it's "in channel", and has nothing to do with manufacturing which still has problems according to everyone except Sony.

    The 3/3/07 launch rumour has the price set as £425, there is only 60GB model planned for Europe.

    StooMonster
     
  26. Dave2

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    But if people wanted all that they would go for a pc, a game console is about games am i correct ?
     
  27. ani4ani

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    Well when the question was asked of Harrision, he said "we have never commented on availability in any market of any version of the console" Given the pressure on price that Sony clearly has, it would make no sense not have the cheapest product available. Ironically, I ignored many cheaper 20 GB versions on eBay seeking out the 60 GB version. Only when I got it home did I question why?

    It has wireless, but then I use Lan. It has a larger hard drive, but then I have plugged two 500 GB drives into it anyway. It has a card reader, but I could have just as easily inserted my many portable ones in any event.
     
  28. peterweg

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    Thats ridiculous. All European PS3 will be shipped to the UK and sold there instead.

    The Euro price is 499/599. thats £335/402, $659/790. The retailers profit is only £20 so they can sell it for six times the profit in the UK perfectly legaly and without any difference in the console, warranty PSU etc.

    £330-349 or £399-410 is a more probable price range.
     
  29. Deleted member 92943

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    I think that you are right, the 360 may suffer because if the competeition. The 360 will do better than the Original as wil Nintendo with the Wii compared to the Gamecube.

    The reason i think Nintendo will do so well is because of Nintendo going back to being what they are all about.... Inovation

    As much as i don't like the PS3, it does on paper look like a very nice piece of equipment. It won't do as well as the PS2, that's for certain but i do however, because of their loyal consumers (Fanboys :D ) they will sell simular numbers to the 360. That's what will get them their sales, not the Blu-Ray player addition for sure.

    It is a tricky situatiion and where i thought the 360 would clean up because of it's 12 month advance release, i am so wrong as Nintendo have shown.
     
  30. StooMonster

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    You've forgotten to account for different levels of VAT in your calcs.

    StooMonster
     

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