January 30, 2007 - Everyone and their DS-playing mom knew this already, but Sony has at last admitted to not making its worldwide shipment targets for the PlayStation 3 in 2006. As part of its third quarter financial report covering 10/2006 to 12/2006, the company announced today that worldwide shipments in 2006 for the new hardware capped off at 1.84 million units, short of the promised 2 million.
North America got most of those units, at 1.03 million. Japan got 810,000 units, with numbers climbing up past a million in the first few weeks of January.
The company is still aiming for 6 million units shipped by the end of March. By then, the PS3 will have launched in Europe.
Other Sony gaming hardware saw declines compared to the same period in the previous year. The PS2 shipped 4.11 million units, down by 23% from last year's 5.36 million units. The PSP shipped 1.76 million units, down by 72% from last year's 6.22 million units.
In software, PS3 saw shipments of 5.2 million units for the year. PSP saw an increase of 24% over the previous year, hitting 21.2 million game titles. PS2 dropped 16% from the previous year, with 78 million games shipped.
All the lowered shipments along with the PS3 launch caused some dark figures for Sony's games division. While sales for the quarter rose 5.6% from the same period last year to 442.8 trillion yen, operating profits dropped sharply from a gain of 67.8 trillion yen last year to a loss of 122.0 trillion yen this year.
The company expects to stop taking losses on PS3 hardware in the next term, Sony CFO (chief financial officer) Nobuyuki Oneda announced at the financial briefing. One means of doing this will be through smaller chip sizes. The company has already started manufacturing CELL chips using a 65 nanometer process, Japan's IT Media reports.
Even with a turn in fortunes on Sony's hardware losses, don't expect a price drop any time soon. Oneda said that Sony is not consdering a price drop right now, although something could be possible in 2 or 3 years.
In response to that massive drop in PSP shipments for the quarter, Oneda said that Sony will not be giving on the platform, repeating past promises that a number of ideas are under consideration.
PS2 dropped 16% from the previous year, with 78 million games shipped.
did anyone overlook this figure? did you know that as of November 2006, the PS2 still outsells its competition, the GameCube, Xbox, and Xbox 360 in North America, Europe and Japan, and the PlayStation 3 and Wii in North America (Playstation 3 not released in Europe)?
why would anyone think the PS3 won't be as successful as the PS2 with many more times the capabilities of its predecessor? :??
thanks for the education, i was referring to past vs future and its importance on how the PS3 will play out in the long run when looking at how well the PS2 did.... do you know what the term "market trend" means, or am i the only business management and marketing graduate here?
btw, market trend analysis IS based on speculation, but seeing how "any person knows that distinction," it goes without saying that from the same company that produced the PS2 and made it a world-wide leader for the past 7 years, they'll put even more time and effort into this system to make it even better, even more crushing than being able to outsell every single one of its competitors 7 years from now.... since i don't know the future and can't state a fact, i'm opening up the discussion based on FACTS stated about a similar system built by the same company - two very similar animals in my opinion....
1. They used technology that was not available elsewhere. (The PS3 was the first unit to utilize the cell processor if I am not mistaken)
2. They left developers out of the loop by not sharing the tools needed to code games on the PS3 until the last minute.
3. They opted for complexity/power over simplicity/efficiency when designing their system.
4. They spent more time on making 1 minute demos for tradeshows then using the 2.5 years on making a really good game.
The advantage Wii has going for them is that they are using older technology. Developers are comfortable in making games for it seeing how the XboX, GC and PS2 have been out for a while.
The XboX 360 is doing good because like the PS3 they had a rocky start but developers have had time to get comfortable with the system.
The PS3 will have a slow start for a while I believe. Developing for the system is too taxing in my opinion. It's not as simple as telling yourself, You have this much memory, this much cpu yada yada yada. Now you gotta play with cores and timings etc. Sheesh!
I'm pretty sure if ninendo were to have released their snes today for the first time retailing for 59.99$ and games were set at 9.99-14.99 they'd own the gaming industry.
These games today are so complex that even adults are being dumbfounded when they are playing them.
Focus on gameplay. I could care less that the blade of grass has a fricken lady bug on it when i'm running around shooting my friends.