November '08 sales decline blamed on 40GB's successful '07 introduction

by Jem Alexander { Jan 6th 2009 at 12:00PM }

Talking to CNET, Sony has revealed why the PS3's November sales were actually lower in 2008 than in 2007, despite an upward trend for other consoles across the board. It seems that the introduction of the 40GB model and a new lower price in November 2007 was too successful, meaning that the PS3 was unable to compete with itself even a year later. What Sony forgot to mention is that the cheapest Xbox 360 is currently selling for half the cheapest PS3's price.

Sounds obvious, doesn't it? Price cut equals more sales. Maybe if Sony had done the same thing in 2008 the PS3 would have outsold its own year-old ghost (that's a racing game metaphor, not a Christmas Carol "Ghost of Christmas Past" one). Microsoft's Aaron Greenburg says in the same CNET post that the company's internal figures suggest that the Xbox 360 now has an 8 million unit lead on the PS3 worldwide, with 28 million 360s and 20 million PS3s in the wild.

Until the December NPD numbers appear we won't know the true truth, but it's fair to assume he 360 outsold the PS3 by a decent margin. Hopefully we'll see a price drop soon, so that more people can get hold of a PS3 without having to take out a second mortgage.

Tags: NPD, PS3, sales

Reader Comments (Page 1 of 1)

C-Onor @ Jan 6th 2009 12:10PM

wow that is so cool i think i might just pass out

Hashbrown Hunter @ Jan 6th 2009 12:11PM

That's ironic.

And idiotic.

hehehe I just rhymed...

Vcize @ Jan 6th 2009 3:42PM

Uh, no you didn't...

Bionic
Iconic

Those would have worked.

Hashbrown Hunter @ Jan 7th 2009 12:05PM

Wow. Way to rain on my fuckin parade man.

haha jk

Zack @ Jan 6th 2009 12:13PM

I wish they would just reintroduce the 20GB model and sell that for $250. That way, it still won't cost them quite as much if they dropped the prices across the board, but they'd be able to compete with both Nintendo and Microsoft, while being able to say that their system comes with a hard drive (unlike Xbox Live Arcade). I don't really know how much it would cost Sony to put a 20GB system together, but I doubt it would cause a big loss.

Eric E @ Jan 6th 2009 12:24PM

for sony, the difference between 20gb and 80gb HDD is nominal in bulk.
Also having 3 current HDD sizes might make it worse.

Theres not much they can do to the ps3 to make it cheaper except wait or take a bigger hit.

Also for 360 being cheaper, read my comment on 2 threads down

Levi @ Jan 6th 2009 9:40PM

The 20gb model actually cost them quite a bit more to manufacture. It had nearly twice the internal components as the current models. If they released a 20gb model, it would cost pretty much the same for them to produce, possibly more - it depends on how much 20gb laptop drives can be bought for in bulk. Sometimes, older tech is more expensive simply because it's not being manufactured as much. Take DDR vs DDR2 memory; you can get 2gb of DDR2 for like $10 when it goes on sale at Tigerdirect, but the last sale I saw for DDR was 1gb for $15. Not sure if it's the case for the 20gb laptop drives, but regardless, it wouldn't cost them so much less that they could afford to sell it for $250.

Though, that would be nice. ;)

Levi @ Jan 6th 2009 9:42PM

sry for the double post, I realized it might have sounded confusing. I meant the original 20gb model cost quite a bit moer than the current models to manufacture, and if they released a NEW 20 gb model, blah blah rest of comment blah. :P

Zack @ Jan 6th 2009 10:10PM

Yeah, I meant a new 20GB model. I realize that Blu-Ray requires a hard drive for the data to be installed on and for it to do its normal functions. That's pretty much par for the course.

But this isn't like buying something from the store. Sony does manufacture its own hard drives (you can look at the Walkman MP3 Player for an example), so they wouldn't have to rely on the market. They pretty much sweeped out the 20GB with the 60GB so they could start the big cost-cutting process.

I would see Sony introducing more models instead of cutting the price of their system, as they have been. They did the same when the first 80GB came out. It would be an interesting move to appeal to the more frugal crowd while still making enough profit to make even like their shareholders want them to do. I'm sure they'll make an announcement at GDC regarding this -- it is almost guaranteed.

Tim @ Jan 6th 2009 12:13PM

You make it sound as though Sony can ignore profit motives for market share as a long term goal. Unless they can get money from the government based on installed base like a government program or the banking or auto industry, it's a losing proposition.

Ghaleon @ Jan 6th 2009 2:18PM

They've been taking hits on the console since Day 1 already -- they really do need to spend $$ to make $$ more than ever now that 2008 proved they can't coast on brand name anymore.

nick @ Jan 6th 2009 12:23PM

And wasn't the xbox 360 released earlier than the ps3? So it would make sense that they have more counsels sold...not to mention the 360 is cheaper (making it more attractive to buyers, but not necessarily making it the better counsel).

20,000,000 is nothing to scoff at either. That's pretty damn good for a "pricey" console.

Lars @ Jan 6th 2009 4:19PM

Good points. It's also worth mentioning that 20 vs 28 is not really a vast disparity in sales figures (especially considering the lead time that 360 had). With all the doom and gloom being spouted off by the press, one would think it was more like 20 vs 8.

mikemansor @ Jan 6th 2009 12:29PM

Being 8 mil short of a console that's sold a year earlier isn't that bad, really. My question though, does MS took into account the replacement 360 due to RROD into the total figure. If not, it's much closer than what we're lead to believe.

Mo @ Jan 6th 2009 12:33PM

i completely agree. This race is much closer than anyone is letting on, and with the lineup in store for 09 im very happy. I was already happy as my ps3 is a beast :-)

*kisseshislaunch60GB*

RPMd70 @ Jan 6th 2009 3:54PM

you got it all wrong, the 8 million sold units stands for the 8 million poor people in america that can barely afford gas for their big 'ol monster trucks. *a-hyuck*

jk... maybe.. ok only a little.

Sancho @ Jan 6th 2009 12:47PM

i wonder how many of that 28 mil are people who bought replacement 360's either not knowing of the replacement plan or too anxious to wait weeks without their crapbox. i mean isnt the failure rate like 30% so far?

AltCtrlPwn @ Jan 6th 2009 1:36PM

Curious as well -- I can't believe how many times I've read someone saying "oh well screw that i'll just buy another one" when their machine dies.

Sancho @ Jan 6th 2009 6:08PM

PSN ID= Sancho45

vahdyx @ Jan 6th 2009 12:48PM

That should tell them right there! LOWER THE PRICE!!!!!

smoothsake @ Jan 6th 2009 12:50PM

Cost cutting is a last ditch effort. When you have a product that is high end you need to sell it's value proposition. Sony can't compete on price with the 360 so they shouldn't try. It will run the game division further in the red. Take a business class before writing this cost-cutting blog posts.

FeaturePreacher @ Jan 6th 2009 1:28PM

Since Sony is trying to make the ps3 profitable, why don't they finally introduce a video rental subscription service? $14.00 / month for unlimited rentals in HD or SD is a fair price I would pay.

Chainblast @ Jan 6th 2009 2:26PM

I'd also like to see the same idea applied to PSN games. Say $25/month subscription gets you unlimited access to all PSN games so long as your account is active.

FeaturePreacher @ Jan 6th 2009 2:37PM

Just as long as they maintain the option to purchase games as well. I want to own games, not have a timed license to them.

maidsandharem @ Jan 6th 2009 11:42PM

because you can watch free movies on the ps3 browser :) if you need websites just look around most are in "flash :O"

Van Faulk @ Jan 6th 2009 2:03PM

Bunk. November 07 numbers weren't very good. Under half a million. The ps3 was handily behind every major console last year. It just got beaten less badly than it did THIS year.

Google novermber 07 npd sales and the november 08 npd sales.

Instead of just mindlessly following market spin, PS3F, how about doing the 3 minutes of googling required to figure out what i did?

Hector Martinez @ Jan 6th 2009 2:10PM

Sony is just too proud to admit defeat.

Inect @ Jan 6th 2009 2:42PM

Next time read it is 28 to 20. It's close be happy that is great for everyone.

bos6268 @ Jan 6th 2009 2:46PM

Sony needs to understand that we are in a recession people don't just have 400$+ tax to buy a ps3 .

Psn id. bs6268d

ChocoDK @ Jan 6th 2009 4:26PM

Well this goes two ways in the eyes of Sony and the eyes of the consumer. Right now we are in a reccession and many people are getting laid off and cuts are were made to Sonys Electronics Division already. Right now Sony is losing money due to the reccession not to mention the fact of how much the PS3 costs to make. Although the amount it costs to make is dropping this wouldn't be a good time for a price drop. They would just be losing more money.

Although on the other hand they might gain more hardware. But you also must remember that the Wii well its just popular. And Microsoft has three SKUs on the market ranging from the $200 range to $400. That gives consumers many choices. Also the 360 arguably has a bigger library but the PS3 has a lot of multiplatform games now and many exclusives.

In the eyes of the consumer though the PS3 either goes from $400USD/CDN or $520CDN/USD (I think thats the price). Now that is a huge sum of money. Atleast with the 360 you got price point options from the low end to the higher end.

Either way though all three companies should be proud of themselves. Looking at sales figures of last gen the Gamecube sold around 22 million units (I believe), the Xbox around 24 million units and the PS2 is stills selling and is about at 140mill+ units.

The PS3 has already reached 20mill which is only 2mill behind the Nintendo Gamecube and this is only two years into this generation (in Microsoft's case three years). Either way considering Sony's price point they got a lot to be proud of.

In regards to the Xbox 360 Arcade it is cheaper to really get the Pro model if your going to buy a harddrive.

/rant

CopaceticOpus @ Jan 6th 2009 6:01PM

Sony can kick PS3 sales into high gear without even lowering the price. They just need to upgrade the media software. Blu-Ray is a killer feature, but they need to take the next step and make the PS3 THE killer media center for the living room. It has the horsepower to do it.

Some needed features:
1. Connect to a Windows/Samba share and play music and video over the network. (The current methods of networking are a pain.)
2. Play as many video formats as possible flawlessly. mkv files, subtitles, multiple audio tracks - do it all.
3. Become a Netflix capable device.

If they do this, they'll get rave reviews and become known as XBMC on steroids, and they will sell PS3's by the bucketful.

Why won't it happen? Because they'd rather try to push their own video store. Nobody is going to buy a PS3 to access the Sony video store.

Rodz @ Jan 6th 2009 9:27PM

Spot on.

I know lots of 360 owners who would buy a PS3 if it could read .mkv files and separate subtitle files.

Alex @ Jan 6th 2009 6:09PM

8 million consoles is a HUGE deal. Look at it this way. The PS3 did not sell 8 million PS3's in an entire year, so if MS does not sell another 360 for an entire year the PS3 would not close the gap. But that is a very tiny bit of Sony's problem. The real problem is that even when blockbuster "console selling" games like LBP, Resistance pretty much anything that is not MGS related flops in sales it sends a message to 3rd party developers to be careful when making games for PS3. That is where you make your money. Not from selling consoles.

Aozora @ Jan 6th 2009 6:50PM

Errr...all the Japanese games flop on 360. That should certainly scare off Japanese developers from making games for the 360.

Alex @ Jan 6th 2009 8:26PM

Actually if you knew what you were talking about you would know that if it were not for the few games that were made by Japanese developers the 360 would not sell a single 360 in Japan. Blue dragon and Lost Odyssey helped the 360 to have the best sales months ever in Japan. Capcoms Dead rising, Devil May Cry, Bionic Commando, Lost planet, etc etc, have all done unbelievably well on the 360. Trust me there is no Developer out there afraid to make games for the 360 because if it is done well it sells well.

Aozora @ Jan 6th 2009 9:13PM

>Blue dragon and Lost Odyssey helped the 360 to >have the best sales months ever in Japan.

So what??? The Xbox360 has not even sold 1 million in Japan in 3 years! And Japanese games sell much better on the PS3. That's the fact.

acedoh @ Jan 6th 2009 10:51PM

Alex I think you should double check your stats. The PS3 has sold over 19 million consoles. Just that alone would incline someone to believe that this year has sold more than 8 million consoles. Especially when you consider that at the 52 week mark they were only at 7 million. Which by process of deduction means in 58 weeks they have managed to sell over 12 million consoles. Not a bad number for any console that starts at $400...

I don't understand why some want to be doomsayers. Did Playstation beat you up or hurt you in some way? Logically people should realize that millions are waiting out on a PS3. There is a reason why so many have yet to move over to this generation. Many of these gamers are loyal to the Playstation brand and are waiting it out. Those gamers don't go onto websites to read blogs about the dying PS3... These gamers anxiouslly await games like Gran Turismo, Twisted Metal, or God of War to come.

Alex @ Jan 6th 2009 6:12PM

BTW, I think it is hilarious that when support for Netflix was first announced for Xbox every PS3fanboy ridiculed it saying it was stupid and a waste, and now a couple months later so many PS3er's would like it added to their console. Haters.

WNxThrax @ Jan 6th 2009 6:32PM

Yet the 360 STILL breaks? Not surprised 8million people own a 360's compared to the PS3 because lets face it. Look at how many 360's have broken? Friend of mine who sold his 360 2yrs ago got a new one this christmas and it broke yesterday... Red Ring of DEATH ftl.

Sony will catch up in the end. :)

Alex @ Jan 6th 2009 8:30PM

Give me one INTELIGENT reason that makes you think that the PS3 will ever close that gap. Not some Fanboy we rock you suck reason but something intelligent. Here I will help you with one way I could see the PS3 catching up. Eventually Blu-ray will become as common place as the DVD player and people might be more inclined to buy the PS3 instead of a stand alone player. You see that is a nonfanboyish intelligent reason. Can u give me one of your own?

Alex @ Jan 6th 2009 11:00PM

And for god sakes grow up and stop using the "Xbox360 was released a year sooner" excuse. The Wii was released a year after the 360 and has surpassed the 360 by millions.

Greg @ Jan 6th 2009 11:42PM

This has been irking me a lot lately. PSN/multiplayer is FREE. No charge. Xbox Live is $50 PER YEAR. If you plan on having a 360 for 4 years, guess what? You've spent the same freaking $400 you would have spent on a PS3... And that still is the basest sh*t eating model of the 360.

MAFAKKA @ Jan 7th 2009 3:16PM

STILL!! The playstation has sold more than the Xbox.. but all these !()#% news always point out that xbox outsells the PS3. ALL OVER THE WEB! And its a damn lie. Or that people dont look at the big picture.

Xbox 360 = 28m units over 38months (release Nov. 2005) = an average of 737000 units a month.

PS3 = 20m units over 26 months (release Nov. 2006) = an average of 769000 units a month.

So, to break it down for you. The playstation has the lead! The PS3 has sold more units a month than the XBOX360. But the fact is that the XBOX360 has had a ONE YEAR lead to establish themselves, and that INCLUDING a significant price cut. And they've still not managed to sell more units than Sony within the same time span.

SO..

Playstation is going strong. END OF STORY!

Doble-A @ Jan 10th 2009 7:27PM

MAFAKKA, I couldn't have said it better myself. Thank you. Oh, and thanks once again. The PS3 kills all, forget about it. Also, give it time, the PS3 will drop in price. El PS3 mata, olvidalo. Me quite.