Despite Sony's Playstation 3 quarterly sales growth doubling from
last year, the end result from this year's holiday sales doesn't bode
well according to the
Wall Street Journal.
Sony hoped the PS3 would take the number-two spot in video-game
consoles, as it currently trails the Wii and Xbox 360, respectively.
Instead, PlayStation 3 sales are down 19 percent from last holiday
season. Contrast that to Nintendo and Microsoft, which saw the Wii
double its sales and Xbox 360 sales rising by eight percent,
respectively.
Sony places a lot of hope on its videogame division as its electronics
business is suffering terribly due to the global economic crisis. Sony
projected last spring that its games division would finally make a
profit since launching the PS3 in 2006.
Earlier this month, I reported that by 2010, Sony plans to
eliminate 8,000 jobs (four percent of its global work force). This is certainly the result of a tail spin of poor electronics sales.
Here's where Sony probably went wrong.
A pricey console featuring fancy components is backfiring on them as
this recession continues to spiral out of control and people are less
inclined to drop money on the priciest gaming console. And why should
they?
An entry-level PS3 model costs at least $150 more than the Wii or the
cheapest Xbox 360, right? And although the PS3 has Blu-ray
functionality that isn't in the Wii or the Xbox 360, it's still a
bitter pill to swallow when parents just want to buy a respectable
video-game console for their kids. Besides, the cost of actual Blu-ray
players are relatively inexpensive, and you still can get one with an
Xbox 360 for cheaper than what it would cost you to buy a PS3. Dang!
We also know that Microsoft helped its sales of the Xbox 360 when it
slashed the price this past fall and bundled games, too. Nintendo kept
the Wii's price at $249 but cranked out more consoles taking care of
the shortage problem.
Let's also be frank...Sony hasn't had the great exclusive titles it
enjoyed with the PlayStation 2. Microsoft has its heavyweight giants
Halo and
Gears of Warfranchises. Nintendo's big money makers are mostly in-house games.
While Sony used to have a stronghold of exclusives, clever Microsoft
found a way to get game publishers to launch biggies simultaneous with
Sony.
Lastly, the PS3 just costs way too much to make. Last week, I told you Sony found a way to take the console which
once took $840 to manufacture, and make it for $448.73.
Granted, it still loses money on every PS3 it sells because it retails
at $399, so Sony is going to have to cut the price to help boost sales.
Let the numbers speak for themselves. Since its launch, the Wii has
sold nearly 35 million units, the Xbox 360 has sold 22 million, with
the PS3 trailing at 17 million. Let's get even more specific. Last
month, in the US, the Wii sold 2 million, consumers bought 836,000 Xbox
360's, and only 368,000 PS3's were purchased.
While Sony's best seller last month (according to The NPD) was
Call of Duty: World at War...dang again! The Xbox 360 version sold twice as much.
You guys think there's hope for the fledging PS3? I hope so...I love rooting for the underdog, don't you?