PS3 speculation & funding

Razor05 · 05-01-2006, 08:52 PM

Just read this stuff from GameTrailers.com:

Sony: PS3 Will Sell Faster Than Xbox 360
Apr 27, 2006 @ 5:15pm

Summary:
Sony expects PlayStation 3 to sell more, faster than Microsoft's Xbox 360, the company said today

Full Text:
Sony expects its upcoming PlayStation 3 console to be out of the starting gate more quickly than Microsoft Xbox 360, it said Thursday.

Sony, which recently pushed back the launch of its console to November, said it expects sales during the first four to five months after launch to be about 6 million units. Microsoft, which launched the Xbox 360 in November last year, expects sales to hit between 4.5 million units and 5.5 million during about the first seven months.

Sony has spent about $425 million during the past year on development and launch preparations for the PlayStation 3, said Nobuyuki Oneda, Sony's chief financial officer, at a Tokyo news conference.

"After the introduction of the PS3 we will focus our efforts on expanding the platform as rapidly as possible," Oneda said. "We will also attempt to lower the manufacturing costs by reducing the number of parts used in hardware and reducing the costs of the semiconductors and other key components. By so doing, we aim to bring the PS3 business to profitability at the earliest possible time."

During the fiscal year just ended, Sony shipped 16.2 million PlayStation 2 consoles. The number is slightly higher than the year earlier but Sony expects this to fall rapidly during the current year as customers favor the soon-to-be-launched PlayStation 3. Sony said it predicts about 10 million PlayStation 2 consoles will be sold this year.

The handheld PlayStation Portable device did well during the year, but again Sony expects sales in the current year to decline. The PSP, which was launched in Japan in late 2004, shipped 3 million units in its first few months on sale. In the following 12-month period shipments were 14.1 million units, Sony said Thursday. For its current fiscal year, from March to April 2007, this is expected to drop to 12 million units.

Software shipments for the PlayStation consoles hit 267 million units, which is just below the previous year's total. Within this, PlayStation 2 software shipments dropped 12 percent, and PlayStation Portable software shipments jumped more than 600 percent.

Overall, Sony's game business saw sales increase by 31 percent to 959 billion yen, while the division's operating profit sank 80 percent on PlayStation 3 start-up costs, to 8.7 billion yen.

PS3 Sets Sony Back $870 Million
Apr 27, 2006 @ 4:04pm

Summary:
High PS3 production costs force Sony to project a massive loss for the current financial year

Full Text:
Reuters is reporting that Sony is already in a deep hole as a result of the PlayStation 3. Its game division is expected to post a loss of 100 billion yen, approximately 870 million dollars, in the current business year.

The loss is said to be a direct result of PS3 start-up costs. As we've previously reported, Sony is expected to lose $300 to $400 on each PS3 unit sold, and that's if the console debuts at $399, as industry analysts are expecting it will.

Most gaming companies take an initial loss with system hardware, but with the pricey nature of the PS3 Cell processor and the inclusion of Sony's new Blu-ray media format, the expected loss looks to be massive.

Cygnus · 05-02-2006, 11:30 AM

PS3 will have huge demand. I just seriously doubt sony will be able to meet the demand or ship as many as they claim. From what I read sony is still shopping for PS3 parts, having problems fitting everything in PS3 case, and the PS3 won't start being made until June. Besides (as M$ learned the hard way) there is always a learning curve when building a new console. Thus I will be shocked (and awed) if Sony ships any where near 6 million PS3s in 4-5 months after launch.

tanaka · 05-02-2006, 12:07 PM

I believe the anticipation is higher for the P$3, but $ony will have to have a competitive price for anyone besides extreme sony fanboys to bite at it.
500$ or more and it won't sell like Sony hopes it will.
If the P$3 is 400$ or less, it will fly off the shelves and it will be a supply issue.

360kid · 05-02-2006, 12:46 PM

It will all come down to price and who can get theirs lower first. I saved and waited a long time in order to be able to get my 360 on launch date. Still mostly hardcore gamers are the only ones with a 360 despite many desiring to have one, but either can't afford it or aren't willing to pay that much. I suspect it will be the same case with the PS3, only the hardcore gamers will buy them until they come down in price. Demand and desire mean nothing if it's just to expensive for the average gamer. I will go out on a limb and say the ps3 will sell far more units in the consecutive years than they will on launch. I really just feel for the average gamers who just want to play some games in thier free time and not have to spend $500 bucks just to get off the ground.

mahmer · 05-02-2006, 12:53 PM

Quote:

Originally Posted by tanaka

If the P$3 is 400$ or less, it will fly off the shelves and it will be a supply issue.

I totally agree that at that price point, PS3 will sell like crazy, but with all of its technological specs, how can it be priced so low? I would be more surprised if I woke up with my head sewn to the carpet than if the PS3 is under $500. I am so crazy interested to see how this whole thing shakes down. E3 will shed some more light on the subject, but I expect Sony to remain cagey in regards to price until closer to November.

IMpoor · 05-02-2006, 01:09 PM

Sony will have a similiar supply and demand issue that microsoft had. 3 weeks ago I saw a shipment of about 100 in Frys. The next day I went back there and all the 360s where gone. I know you can get them online pretty easily but being able to walk in and buy a XBOX360 is still not that easy. Microsoft would have sold this many units if they could have produced them at launch. This will be similiar with Sony according to everything I have read recently. Thats my prediciton.
If Sony can actually get 6 Million units out at launch and make it under $500 this will be the cheapest Blu-Ray player so even a non-gamer would buy it if they have a HDTV. They will sell them out for sure.

tanaka · 05-02-2006, 02:07 PM

As I've stated before, I predict that the ps3 will be 599.99.

Cygnus · 05-02-2006, 04:13 PM

IMHO, PS3 will be $499. There is a chance that it could be $399, if Holllyweird gives sony money to cover the huge losses on PS3 price.

Quote:

Originally Posted by tanaka

As I've stated before, I predict that the ps3 will be 599.99.

fifasf · 05-05-2006, 08:47 AM

From what I heard from nmy Sony rep, It will cost Sony $800 a machine to produce but what Sony is going to do is grab there ankles and sell it for around $500 . Take a hit on the units themselves, but here's the best part, make it up on software. That's games.........that means the games HAVE got to be more money than 360's games. If people spend that kind money they are nutts! I own 360 , it's great , I am into A/V gear , I cxould care less about a Beta...I mean Blu ray player in my machine, and the whole 1080P over 1080I thing is a joke too, There is hardly any difference in video quality side by side. Also he said they are only going to have under a million machine upon release in the US, which is less than what 360 had,m I heard that from my game stop dude. Sony is setting them selves up for A dissaster

Cygnus · 05-05-2006, 10:04 AM

There are also a rumor that IBM is having problems making the Cell. Thus if PS3 is ready this year, it prob will be available via expensive bundles only.

http://www.theinquirer.net/?article=31443

SOURCES CLAIM that yields of the Cell microprocessor for the
Playstation 3 are not good. A process mole tells us that the Cell
yields are far enough below par that the amounts of good dies off the
test wafers are "horrible".

The problem is that IBM and Sony designed the chip for some very
aggressive process technologies that did not materialise in the way the fab boys were expecting. Because of this, we are told Sony is
scrambling to get yields up before it has to make them for real, a fast
approaching deadline.

Will it get it done? Who knows. Will it be able to make enough to
satisfy initial demand? Not a chance. Then again, in consoles, what
else is new?

05-01-2006, 08:52 PM	#1
Razor05 HD = 65 beautiful inches Join Date: Jun 2005 Location: Canada Posts: 3,296	PS3 speculation & funding Just read this stuff from GameTrailers.com: Sony: PS3 Will Sell Faster Than Xbox 360 Apr 27, 2006 @ 5:15pm Summary: Sony expects PlayStation 3 to sell more, faster than Microsoft's Xbox 360, the company said today Full Text: Sony expects its upcoming PlayStation 3 console to be out of the starting gate more quickly than Microsoft Xbox 360, it said Thursday. Sony, which recently pushed back the launch of its console to November, said it expects sales during the first four to five months after launch to be about 6 million units. Microsoft, which launched the Xbox 360 in November last year, expects sales to hit between 4.5 million units and 5.5 million during about the first seven months. Sony has spent about $425 million during the past year on development and launch preparations for the PlayStation 3, said Nobuyuki Oneda, Sony's chief financial officer, at a Tokyo news conference. "After the introduction of the PS3 we will focus our efforts on expanding the platform as rapidly as possible," Oneda said. "We will also attempt to lower the manufacturing costs by reducing the number of parts used in hardware and reducing the costs of the semiconductors and other key components. By so doing, we aim to bring the PS3 business to profitability at the earliest possible time." During the fiscal year just ended, Sony shipped 16.2 million PlayStation 2 consoles. The number is slightly higher than the year earlier but Sony expects this to fall rapidly during the current year as customers favor the soon-to-be-launched PlayStation 3. Sony said it predicts about 10 million PlayStation 2 consoles will be sold this year. The handheld PlayStation Portable device did well during the year, but again Sony expects sales in the current year to decline. The PSP, which was launched in Japan in late 2004, shipped 3 million units in its first few months on sale. In the following 12-month period shipments were 14.1 million units, Sony said Thursday. For its current fiscal year, from March to April 2007, this is expected to drop to 12 million units. Software shipments for the PlayStation consoles hit 267 million units, which is just below the previous year's total. Within this, PlayStation 2 software shipments dropped 12 percent, and PlayStation Portable software shipments jumped more than 600 percent. Overall, Sony's game business saw sales increase by 31 percent to 959 billion yen, while the division's operating profit sank 80 percent on PlayStation 3 start-up costs, to 8.7 billion yen. PS3 Sets Sony Back $870 Million Apr 27, 2006 @ 4:04pm Summary: High PS3 production costs force Sony to project a massive loss for the current financial year Full Text: Reuters is reporting that Sony is already in a deep hole as a result of the PlayStation 3. Its game division is expected to post a loss of 100 billion yen, approximately 870 million dollars, in the current business year. The loss is said to be a direct result of PS3 start-up costs. As we've previously reported, Sony is expected to lose $300 to $400 on each PS3 unit sold, and that's if the console debuts at $399, as industry analysts are expecting it will. Most gaming companies take an initial loss with system hardware, but with the pricey nature of the PS3 Cell processor and the inclusion of Sony's new Blu-ray media format, the expected loss looks to be massive. __________________ Panasonic TH-65PZ850U Sony KDL37XBR6 Panasonic TH-37PX50U Cambridge Audio Azur 640R & 740C Paradigm Studio 60's, 20's, CC-590 & Seismic 12 Panasonic DMP-BD35 Toshiba HD-XA2 & A35 Motorola VIP1200 Monster HTFS1000, PB2100 AA 1154a MW2 LE Xbox 360 & Halo3 LE + HD-DVD GT: Razor59 Sony PS3 slim GT:Razor_59 Sony PSP

05-05-2006, 08:47 AM	#9
fifasf DLP and plasma rule Join Date: Apr 2006 Location: nj Age: 29 Posts: 33	From what I heard from nmy Sony rep, It will cost Sony $800 a machine to produce but what Sony is going to do is grab there ankles and sell it for around $500 . Take a hit on the units themselves, but here's the best part, make it up on software. That's games.........that means the games HAVE got to be more money than 360's games. If people spend that kind money they are nutts! I own 360 , it's great , I am into A/V gear , I cxould care less about a Beta...I mean Blu ray player in my machine, and the whole 1080P over 1080I thing is a joke too, There is hardly any difference in video quality side by side. Also he said they are only going to have under a million machine upon release in the US, which is less than what 360 had,m I heard that from my game stop dude. Sony is setting them selves up for A dissaster __________________ A/V guru.. favorite brands: MItsubishi, Denon, Martin Logan, Pioneer Elite. Brands I dislike, Bose, Sony......Tweeter/nj employee for 4 1/2 years and love a good debate about a/v equiptment.

05-02-2006, 11:30 AM	#2
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,834	PS3 will have huge demand. I just seriously doubt sony will be able to meet the demand or ship as many as they claim. From what I read sony is still shopping for PS3 parts, having problems fitting everything in PS3 case, and the PS3 won't start being made until June. Besides (as M$ learned the hard way) there is always a learning curve when building a new console. Thus I will be shocked (and awed) if Sony ships any where near 6 million PS3s in 4-5 months after launch.

05-02-2006, 12:07 PM	#3
tanaka Paradigm Studios' Babey! Join Date: Jan 2006 Posts: 210	I believe the anticipation is higher for the P$3, but $ony will have to have a competitive price for anyone besides extreme sony fanboys to bite at it. 500$ or more and it won't sell like Sony hopes it will. If the P$3 is 400$ or less, it will fly off the shelves and it will be a supply issue.

05-02-2006, 12:46 PM	#4
360kid Life Is Expensive Join Date: Apr 2006 Posts: 838	It will all come down to price and who can get theirs lower first. I saved and waited a long time in order to be able to get my 360 on launch date. Still mostly hardcore gamers are the only ones with a 360 despite many desiring to have one, but either can't afford it or aren't willing to pay that much. I suspect it will be the same case with the PS3, only the hardcore gamers will buy them until they come down in price. Demand and desire mean nothing if it's just to expensive for the average gamer. I will go out on a limb and say the ps3 will sell far more units in the consecutive years than they will on launch. I really just feel for the average gamers who just want to play some games in thier free time and not have to spend $500 bucks just to get off the ground.

05-02-2006, 01:09 PM	#6
IMpoor High Definition is the definition of life. Join Date: Mar 2006 Posts: 312	Sony will have a similiar supply and demand issue that microsoft had. 3 weeks ago I saw a shipment of about 100 in Frys. The next day I went back there and all the 360s where gone. I know you can get them online pretty easily but being able to walk in and buy a XBOX360 is still not that easy. Microsoft would have sold this many units if they could have produced them at launch. This will be similiar with Sony according to everything I have read recently. Thats my prediciton. If Sony can actually get 6 Million units out at launch and make it under $500 this will be the cheapest Blu-Ray player so even a non-gamer would buy it if they have a HDTV. They will sell them out for sure.

05-02-2006, 02:07 PM	#7
tanaka Paradigm Studios' Babey! Join Date: Jan 2006 Posts: 210	As I've stated before, I predict that the ps3 will be 599.99.

05-05-2006, 10:04 AM	#10
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,834	There are also a rumor that IBM is having problems making the Cell. Thus if PS3 is ready this year, it prob will be available via expensive bundles only. http://www.theinquirer.net/?article=31443 SOURCES CLAIM that yields of the Cell microprocessor for the Playstation 3 are not good. A process mole tells us that the Cell yields are far enough below par that the amounts of good dies off the test wafers are "horrible". The problem is that IBM and Sony designed the chip for some very aggressive process technologies that did not materialise in the way the fab boys were expecting. Because of this, we are told Sony is scrambling to get yields up before it has to make them for real, a fast approaching deadline. Will it get it done? Who knows. Will it be able to make enough to satisfy initial demand? Not a chance. Then again, in consoles, what else is new?