Sony Discloses Sluggish PS3 Q1 Sales, Not Shipments

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Sony Computer Entertainment Inc. parent company Sony Corp. announced its first quarter fiscal year 2007 results today, detailing less-than-expected sales of PlayStation 3 consoles at 710,000 units sold worldwide. The disclosure of actual unit sales to retailers and other outlets rather than production shipments marks a policy change for SCEI.

Despite this change, Sony CFO Nobuyuki Oneda said in an analyst conference call that the company's previous estimates of production shipments for PlayStation hardware remain as sales estimates for the fiscal year. The company now predicts it will sell, rather than ship, 11 million PlayStation 3 consoles, 10 million PlayStation 2 consoles, 9 million PSP units, and 250 million software titles worldwide by the end of March 2008.

The low number of PS3 sales for the quarter have increased Sony's inventory of the console to around 2.3 million, up from 1.9 million at the end of the previous quarter, with in-transit inventory estimated at 600,000 units, according to Oneda.

Sony Corp. subsidiary SCEI, parent company of Sony Computer Entertainment America, posted a $237 million loss for the quarter ending June 30. The deficit comes from the continued selling of PS3 consoles at a loss, and marks a 9% increase from the operating loss posted during the same period last year. Overall sales during the quarter actually increased 60.5% year-over-year to $1.598 billion, an escalation brought on by the availability of the PS3 as well as a 52% increase in PSP sales and a 16% increase in PS2 sales.

During the conference call, Oneda said the key to stopping SCEI's losses would be the upcoming introduction of a 65 nanometer process for both the PS3's main Cell processor as well as the console's RSX graphics chip. "In the migration to 65nm, Cell will be the first to make that transition. I cannot tell you when this will happen specifically, but during the peak production time," he said. "Please understand that this transition will be made, and RSX will be later. So the removal of the negative margin will be when all of these factors will come out."

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From The Chatty
  • reply
    July 26, 2007 12:27 PM

    can they honestly expect to sell 11 million PS3 units in less than a year? Seems highly unlikely

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      July 26, 2007 12:52 PM

      considering that almost all their games are also going to be on the x360, there is no real reason to run out and HAVE to have one.A few good titles, but nothing earth shattering.

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        July 26, 2007 1:14 PM

        I would have to say that a large majority of the upcoming must have PS3 titles are coming out of Sony owned studios. Microsoft really hasn't shown any must have exclusives beyond this Christmas either. That could change but right now it seems they were enjoying exclusivity simply from having the years head start. Many of the games coming out by this Christmas were in development before the PS3 SDKs were even available.

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      July 26, 2007 12:53 PM

      I was wondering the same. Had to re-read that sentence twice to make sure I wasn't seeing things.

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        July 26, 2007 1:00 PM

        Definitely not going to happen. By then the price point will be back to $599 once the 60GB models are gone and it will be the same thing again. MGS4 might come out around that time, but I doubt millions will buy a PS3 and MGS4 on day one. I can't really think of any big name games that will push the system anytime soon with so many coming to 360, those like myself, who want to buy a PS3 when it has the games will simply wait as the 360 has a library of games that include those coming to PS3 and more. In the next year Lair, Racket and Clank, and Uncharted are the only games that are exclusive and will possibly sell systems....maybe. Nintendo is going to have even more casual games to reap the masses while keeping us happy with Mario Galaxy, Metroid 3 and Brawl not to mention 3rd party games like No More Heroes and NiGHTS coming as well. The 360 will probably steel more exclusives from the PS3 making the line between them ever so thin, while retaining great exclusives as well like Bioshock, Mass Effect, Halo 3, and Ace Combat 6.

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      July 26, 2007 1:10 PM

      It's the field of dreams sales model. If we build it, they (buyers) will come.

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      July 26, 2007 1:22 PM

      I don't know if it's highly unlikely, but I agree that it's unlikely.

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