DailyTech - PS3 Sales Increased 135 Percent Since Price Drop, Says Sony

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Marcus Yam (Blog) - July 24, 2007 10:25 AM

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77 comment(s) - last by afkrotch.. on Jul 28 at 8:27 PM

Sales of PlayStation 3 jump-started 135 percent since price cut

In response to the latest console hardware sales numbers reported by NPD Group, Sony contacted DailyTech and other media with its own internal data on PlayStation 3 sales.

According to Sony’s data, PS3 sales have increased by more than 135 percent at the company's top five retailers since the new $499 price was announced two weeks ago on July 9.

The surge in PS3 sales helped to send total PlayStation hardware up 161 percent, software up 15 percent and peripherals by 60 percent.

"The new price on the 60 GB PS3, coupled with our very strong software showing from E3, is certainly paying dividends in terms of impressive sales across the board at retail," said Jack Tretton, president and CEO, SCEA.

Tretton continued by outlining the upcoming lineup of promising PS3 software: "This jump in sales bodes very well for us heading into the fall as we launch an impressive arsenal of hardware and software, leading off with the new 80 GB PS3 in August along with the unveiling of highly anticipated games such as Lair and Warhawk. That will be followed by Heavenly Sword in September and six more exclusive first-party PS3 games in October, including Ratchet & Clank Future: Tools of Destruction."

Overall console sales in June saw an increase across the board for all systems. PS3 sales were up 21 percent over May's figures, with 98,469 units sold at retail. Furthermore, PSP was up 31 percent year-over-year, selling 290,108 units at retail, while PlayStation 2 once again remained one of the best-selling consoles on the market, with unit sales of 270,763 for the month, up an impressive 44 percent from May.

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I got mine

By SandmanWN on 7/24/2007 10:34:14 AM , Rating: 3

Yes Sony, you did a good thing. Now try not to be a dolt and mess it up. Unfortunately I hear the 60gb PS3 is out the door soon and we will be left with a hacked up 80gb overpriced machine without the emotion engine.

I, like many other people, took this opportunity to get my PS3 before the price goes back up. And I can vouch that I had to go to several stores just to find one in stock.

RE: I got mine

By vdig on 7/24/2007 10:48:26 AM , Rating: 4

The way I figure it, there are three reasons for the increase in sale:

The first is some people find that the product is more affordable and that they are getting their money's worth with this cut.

The second is that people are hearing that this cut is only until all 60GB units are depleted. Upon reaching that point, the 80GB version will retail for the old, slow selling $599 USD price. I don't think Sony will like the sales trend after they hit that point, unless the PS3 titles start coming fast and hard.

The third is that a few of those buying know that the PS3 60GB units will be the last ones to have the PS2 chip in it. This generates a bit of fear in those that require legacy in obscure or technically hard to emulate titles, making them buy before it sells out.

In my opinion, this effect will be quite temporary, unless they decide that when the 60GB units sell out, eventually, they bring the price of the 80GB units down to the $499 price. Even then, I need to see more marquee titles on the shelves to be the lure, something where Sony can only do so much on their own.

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RE: I got mine

By retrospooty on 7/24/2007 10:59:26 AM , Rating: 3

yup, I think you hit the nail on the head.

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RE: I got mine

By HakonPCA on 7/24/2007 11:57:11 AM , Rating: 4

Also don't forget that right now you get 5 free Blu-Ray DVDs Free with any player, which of course would include the PS3

Just another reason sales might be higher right now.

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RE: I got mine

By Hawkido on 7/24/07, Rating: 0

RE: I got mine

By cubby1223 on 7/24/2007 12:07:36 PM , Rating: 2

...

but you still get the physical product, regardless if they are counted towards sales or not.

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RE: I got mine

By Hawkido on 7/24/2007 12:25:53 PM , Rating: 2

Hackon was alluding to the free movies distorting movie title sales. I believe the tracking firms are doing their best to prevent freebies from distorting this... I know Neilson (SP) only tracks sales tickets with a cost associated with the title.

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RE: I got mine

By cubby1223 on 7/24/2007 12:32:52 PM , Rating: 5

He was saying the free movies are increasing PS3 sales.

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RE: I got mine

By clayclws on 7/24/2007 1:16:21 PM , Rating: 2

Hawkido, I think you misintepreted. Hackon was saying the freebies will increase the PS3 sales...nothing to do with Bluray vs HD-DVD, or Nielsen or whatever tracking that you are talking about.

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RE: I got mine

By Hawkido on 7/24/2007 1:55:18 PM , Rating: 2

Oops my bad... I though the HD-DVD vs. Blu-Ray movie sales debate was his target.

Well, I don't know if I would buy a PS3 just because it came with 5 movies (freebies usually suck). It might change my mind of where I bought it, but not if I bought it.

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RE: I got mine

By samadhifc on 7/24/2007 7:24:24 PM , Rating: 2

quote:
freebies usually suck

You get to choose one from each catagory:
1) a. The Guardian, b. Pearl Harbor, c. Invincible, d. Chicken Little

2) a. Corpse Bride, b. Phantom of the Opera, c. Blazing Saddles

3) a. Stealth, b. Resident Evil 2, c. Underworld Evolution, d. Stir of Echoes

4) a. The Italian Job, b. Black Rain, c. Babel, d. Devil's Rejects

5) a. Kiss of the Dragon, b. Omen 666, c. The Transporter 2, d. Species, e. Hart's War, f. The Last Waltz

Personally, I'd go with 1c, 2c, 3a, 4a, and 5c but that's just my two cents. Your tastes may vary.

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RE: I got mine

By doctor sam adams on 7/25/07, Rating: 0

RE: I got mine

By augiem on 7/24/2007 12:36:08 PM , Rating: 2

I almost went out and bought one for that very reason. Future loss of PS2 compatibility is probably a major factor here. I don't want to lose access to my library of PS2 games years from now (even though I never play them! ;)

But then I thought about it... I could just buy a backup PS2 now or wait until good emulators for the PC are developed.

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RE: I got mine

By encryptkeeper on 7/24/07, Rating: 0

RE: I got mine

By Alexvrb on 7/24/2007 8:35:53 PM , Rating: 2

Excellent catch. Without showing overall sales for all retailers, its just a meaningless percentage. Not to mention that a 135% percent increase in sales isn't as impressive when the number of units being sold was pretty low.

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RE: I got mine

By ruibing on 7/24/2007 11:04:51 AM , Rating: 2

I also agree that Sony should keep this price, even for the 80GB one. I got mine this weekend from Amazon and ordered over $100 of accessories (HDMI cable, second controller) and games immediately with it (just some PS2 greatest hits I've been wanting to play for awhile like FFX, God of War, Kingdom Hearts). I won't be bringing the system to school with me so I'll get some PS3 and some more PS2 games in the winter when I come back home for winter break. I think they will end up making more money with games, accessories, and a bigger following if they can stomach losing $100 more on the system. And they should add in a mini-USB and HDMI cable (can't be worth more than $2 if they get them in bulk), then people can stop one of their complaints against the system.

I think $499 was worth it. It is basically an entertainment system. With singstar, littlebigplanet, and eyetoy, it can also be a good fun system. There's also the final fantasy, mgs, and all the good ps2 games I'll now be able to play (this is the first console I ever bought).

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RE: I got mine

By ATC on 7/24/2007 11:11:05 AM , Rating: 5

I wouldn't count on the 80gb PS3 staying at 599. Yes, with both the 60 and the 80 being on shelves at the same time, the 80 must be higher priced, but there is no way it's staying there once the 60s are gone.

The only reason Sony cannot put both at the 499 mark is because the 80 would cannibalize sales of the 60. It's as simple as that. And you're dreaming if you think Sony would publicly say that. It would be akin to MSFT announcing a date and a lower price for the new 65nm 360. That would halt sales of the current 360s.

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RE: I got mine

By zaki on 7/24/2007 11:24:26 AM , Rating: 1

i am not sure whether it was reported on this site or another, but apparently the same people that saw the 60 gb PS3 price cut coming, are now predicting that the 80 gb ps3 will also be dropped down once 60 gb stocks are depleted.

i think that is good news, as far as the ps2 hardware game emulator thing goes, i really couldnt care less- and this is coming from someone who has played ps2 games for as long as anybody else. really the whole point of the new ps3....is the new ps3.

If removing the ps2 chip means that the ps3 will cost less, then thats just fine with me, because i (like so many others) already have a half-dead ps2.

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RE: I got mine

By encryptkeeper on 7/24/2007 12:53:02 PM , Rating: 1

i am not sure whether it was reported on this site or another, but apparently the same people that saw the 60 gb PS3 price cut coming, are now predicting that the 80 gb ps3 will also be dropped down once 60 gb stocks are depleted.

It's probably better to wait and see. Even if Sony could afford to do it right away, they wouldn't want to. Dropping the 80 immediately to $499 after the 60s are gone would piss off a lot of users who jumped on the price break. I'd like to see what sales numbers this 121% increase is compared against. You can bet with Sony (or any company in this situation) that the facts of increases are twisted figures.

BTW where are all the people that were bitching about Nintendo changing it's hardware so damn much?

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RE: I got mine

By Timeless on 7/24/2007 3:23:29 PM , Rating: 2

I don't understand your reasoning here. People would be mad that Sony cut the price on the 80GB version when they have the 60GB version? What are 60GB buyers really missing that makes them mad? 20GB harddrive or retard software emulation? To me, dropping the price to $449 USD would be a better choice for the 80GB. 20GB is hardly that much more space and the 80GB buyers are stuck with a cripled PS3 that can't play some PS2 games.

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RE: I got mine

By encryptkeeper on 7/25/2007 9:16:48 AM , Rating: 2

I don't understand your reasoning here. People would be mad that Sony cut the price on the 80GB version when they have the 60GB version?

*Puts head in hands*.

Ok, let me explain this AGAIN. Say you go out and buy something for 500 bucks. Say it's a...I dunno, an LCD TV. A week later, you go to the same store again and they have a BETTER TV for 500 bucks that was 600 the previous week. Wouldn't you be a LITTLE pissed off?

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RE: I got mine

By ATC on 7/25/2007 11:36:49 AM , Rating: 2

I think what the posts you replied to were alluding to is the fact that the 80 has its advantages and disadvantages compared to the 60. The prime disadvantage being the omission of the emotion engine for PS2 hardware-backwards-compatibility. Also the extra 20gb hard drive is hardly a selling feature, what with the user replaceable 60gb hard drive - that's actually easier to replace in the PS3 than a PC!

That's partly the reason for the PS3 sales surge; people want the 60 before they're gone, plus of course the 6 free BD movies deal running now (in Canada it's 5 - same list as the US - plus one from FutureShop out of Apocalypto, POTC 1 and 2, Deja Vu and one other). It's a bloody good deal if you ask me even if you don't love the movies offered.

In essence, sure some people would feel bitter but the majority I think would prefer to get the 60. So Sony should feel little reluctance to drop the 80 into the 60 price point immediately after 60 stock is gone.

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RE: I got mine

By afkrotch on 7/28/2007 8:08:11 PM , Rating: 2

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RE: I got mine

By killerroach on 7/24/2007 12:34:47 PM , Rating: 4

quote:
And you're dreaming if you think Sony would publicly say that. It would be akin to MSFT announcing a date and a lower price for the new 65nm 360. That would halt sales of the current 360s.

No, I think the whole overheating and Red Ring of Death issue halted sales of current 360s. :)

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RE: I got mine

By ObscureCaucasian on 7/25/2007 12:07:29 AM , Rating: 2

I wouldn't say halted, I mean except for this month the 360 has consistently been outselling the PS3 if I'm not mistaken.

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RE: I got mine

By killerroach on 7/25/2007 3:14:00 PM , Rating: 2

And the RRoD problem has only really started picking up traction in the mainstream press just recently. Keep in mind, not everybody is reading the gaming blogs.

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RE: I got mine

By Griswold on 7/24/2007 12:02:50 PM , Rating: 2

The herd effect kicks in - until the 60GB sets are sold out.

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still not good enough

By thejez on 7/24/2007 10:54:10 AM , Rating: 2

Even at a 135% increase that brings their sales to ~ 232k for the month (going by junes figures) which only barely puts them ahead of the 360 and still behind the PS2... they still have along way to go imo.

RE: still not good enough

By alifbaa on 7/24/2007 11:23:20 AM , Rating: 3

If your numbers are right, it's HUGE that the PS3 is outselling the 360. We'll certainly be seeing a price drop in the 360 and the addition of HDMI when the new 360 comes out in September if this is the case. In turn, this will likely force the 80gb model to begin selling for $499 when the 60gb's run out.

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RE: still not good enough

By Korvon on 7/24/2007 11:41:14 AM , Rating: 2

"PS3 sales were up 21 percent over May's figures, with 98,469 units sold at retail."

Not sure where you got the 220k from...

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RE: still not good enough

By Hawkido on 7/24/2007 11:52:41 AM , Rating: 2

June's figures were 98.5k
Multiply that by the 120% increase and you get your 200k'ish figure.

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RE: still not good enough

By HardwareD00d on 7/24/07, Rating: -1

RE: still not good enough

By killerroach on 7/24/2007 12:51:45 PM , Rating: 2

120% increase over 98.5K... so you'd be multiplying by 2.2, which gives you a number of 238,200.

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RE: still not good enough

By phattyboombatty on 7/24/2007 2:05:00 PM , Rating: 2

The actual math is ((98.5K * 1.2)+ 98.5K) = 217K

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RE: still not good enough

By TomZ on 7/24/2007 2:30:39 PM , Rating: 2

Huh? You guys seem to have missed the forest for the trees. The article states:

quote:
Overall console sales in June saw an increase across the board for all systems. PS3 sales were up 21 percent over May's figures, with 98,469 units sold at retail

This means that June's sales were 98K and May's sales were 98K/1.21 = 81K.

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RE: still not good enough

By StillPimpin on 7/24/2007 3:35:08 PM , Rating: 2

Exactly! And those numbers represent sales figures for ALL AMERICAN RETAILERS.

The 135% increase only represents the top 5 retailers. So in order to properly see where Sony stands, we need sales figures from only the top 5.

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RE: still not good enough

By TomZ on 7/24/2007 2:36:24 PM , Rating: 2

Also, the ~230K figure that the original poster stated is based on Sony's claimed 135% increase in July, which would be calculated as 98K * 2.35 = 231K.

Sony is obviously expecting to keep the same sales rate for the entire month, which I would guess is highly unlikely (probably impossible). Pure marketing B.S. I would guess.

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RE: still not good enough

By EndPCNoise on 7/24/2007 4:15:04 PM , Rating: 2

...and just when you thought sony executives could not possibly top their aforementioned ridiculous remarks David Reeves of sony says...

quote:
"PlayStation 3, you will see, will be far and away the winner when you look at it by March '08. They really, really will"

http://www.gamesindustry.biz/content_page.php?aid=...

Borrowing the weekly numbers from ShapeGSX's post of 19,700 PS3s/wk. For simple calculations we'll call it ~20,000 units/wk.
So, 20,000 units/wk. * 1.35 + 20,000 = 47,000 units/wk for July.
47,000 units/wk * 4 weeks in July = 188,000 units total for July, or roughly < 200,000 units by conservative estimates.

Now is this starting to reek of "too little, too late" sony?

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RE: still not good enough

By Verran on 7/24/2007 11:56:21 AM , Rating: 2

I thought of that figure too, but those (the 21% and 98k) are the figures from June. This article refers to Sony's claims that their PS3 sales are up 135% since the drop.

Of course, there are two major quirks in the above assumption of 220k...

1) They are entirely based on figures that come from Sony. Sony has lied so much about everything that has to do with the PS3 that I think I'll wait and see the overall July figures before I go believing this.

2) Even if these numbers are right, who's to say they'll continue? Just like when the PS3 launched in Europe and they had one big month, but then fell right back down to last place again. Cutting the price by $100 is a start, but I don't see it as enough to push long term sales on its own.

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RE: still not good enough

By thejez on 7/24/2007 12:04:15 PM , Rating: 2

Yeah Verran is right... that was more or less my point... all this momentum from a price drop and a rumor about the $499 price being temporary spurred ona huge surge in sales... but when I did the math the surge doesnt seem all that huge... especially since I dont think it will have legs that will last beyond the month... but i guess we'll see huh...

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RE: still not good enough

By StillPimpin on 7/24/2007 3:56:41 PM , Rating: 2

You are absolutely correct. But let's look further.

According to http://www.vgchartz.com/hwcomps.php?cons1=Wii®1... sales for the week ending July 15 are 45K. Sales of the previous week, week ending July 8, were 16K. They haven't posted numbers for the week that just ended. But using this one week, we can see that Sony had a sales increase of about 29K, which is about 100% increase. Add in the numbers that we don't have and it seems plausible that they did have 135% increase over the last 2 weeks.

That being said, the 135% should only represent sales from 7/9/2007 to the day of the press release. So if vgchartz is correct, the math should look something like this (15990 * 2.35 = 37.5K.

OMG!! I feel the earth shattering beneath my butt right now!! 37.5K consoles in 2 weeks!

And those would be the numbers if we were talking all retailers and not just the top 5.

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RE: still not good enough

By StillPimpin on 7/24/2007 3:56:49 PM , Rating: 2

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RE: still not good enough

By FITCamaro on 7/24/2007 12:08:29 PM , Rating: 2

High sales for one or two months because of a temporary price drop is hardly anything amazing. The sales will be high until the 60GB models are gone because everyone is trying to get one before the less capable 80GB model becomes all thats available.

One the 60GB models are gone and the 80GB takes back the $600 price spot, their sales numbers will be in the toilet again.

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RE: still not good enough

By augiem on 7/24/2007 12:40:55 PM , Rating: 2

I think Sony's sales will go up, but only after a few really good games come out. PS3 will not stay "in the toilet" forever. It's a good piece of hardware. The major reason I don't buy one besides the price is the complete lack of games that appeal to me.

No, I haven't bought any of the "next-gen" consoles yet. And this is coming from a guy who owns every single console released (minus 3d0) since the TRS-80.

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RE: still not good enough

By Griswold on 7/24/2007 12:14:36 PM , Rating: 2

The BBC quotes a sony spokesperson with the claim of a 135% increase over the last two weeks but doesnt mention to what timeframe they compare it. Its neither may nor june though. Probably the two weeks before that or something... its sony, they will twist and bend anything out of shape to make their sales look better than they are.

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June was a 5 week period, May was a 4 week period

By ShapeGSX on 7/24/2007 11:30:46 AM , Rating: 5

"PS3 sales were up 21 percent over May's figures, with 98,469 units sold at retail. "

This is incorrect.

NPD counts sales on a per week basis, not monthly. But the tallies are reported monthly. With NPD, not all months are 4 weeks. If every month was 4 weeks, they would only end up counting 12 * 4 = 48 weeks in a year. There are 52 weeks in a year, so they need 4 months out of the year to be a 5 week period.

June is one of those 5 week periods.

If you take this into account, weekly PS3 sales were actually DOWN for June vs May, not up! This is the only valid way to measure sales for months that have a different number of weeks in them.

So in May, they sold 82,000/4 = 20500 PS3s per week.

In June, they sold 98,500/5 = 19,700 PS3s per week.

Sales didn't increase by 21% in June, they decreased by 4%!

RE: June was a 5 week period, May was a 4 week period

By mdogs444 on 7/24/07, Rating: 0

RE: June was a 5 week period, May was a 4 week period

By ShapeGSX on 7/24/2007 12:19:27 PM , Rating: 5

Read my whole post, particularly the first part.

NPD's "June" ran from the beginning of the first week in June for 5 weeks, 3rd June - 7th July, including an entire week (1st July - 7th July) that doesn't even have a single day in June. They do this in order to have their tracking periods start on a Sunday and end on a Saturday.

Forget the whole "month" thing. The section of the year that NPD calls "June" was a 5 week tracking period for NPD. The section of the year NPD calls "May" was a 4 week tracking period for NPD. That is NPD's own method for dividing up the year into weeks.

If you sell 82,000 things in 4 weeks, but during the next 5 weeks, you sell 98,500 things, when were sales better? During the first 4 weeks? Or during the next 5 weeks?

I think I had that question on one of my 5th grade exams. If you answered that question using Sony's method, the teacher would mark it as incorrect.

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RE: June was a 5 week period, May was a 4 week period

By mdogs444 on 7/24/2007 1:16:05 PM , Rating: 2

Okay, i see where your coming from. Makes sense now. You're right....on average, it really was a decrease - whether you look at it on a per day or per week, or even per month aspect - giving both identical time frames.

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RE: June was a 5 week period, May was a 4 week period

By KentState on 7/24/2007 4:42:13 PM , Rating: 2

Fiscal calendars for companies typically run in a 4-4-5 patern therefore January has 4 weeks, February 4, and March 5, then continues on in the patern. This year June has 5 months on a fiscal basis:

FiscalMth FiscalWk Start End
--------- ----------- ---------- ----------
1 4 12/31/2006 01/27/2007
2 4 01/28/2007 02/24/2007
3 5 02/25/2007 03/31/2007
4 4 04/01/2007 04/28/2007
5 4 04/29/2007 05/26/2007
6 5 05/27/2007 06/30/2007
7 4 07/01/2007 07/28/2007
8 4 07/29/2007 08/25/2007
9 5 08/26/2007 09/29/2007
10 4 09/30/2007 10/27/2007
11 4 10/28/2007 11/24/2007
12 5 11/25/2007 12/29/2007

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RE: June was a 5 week period, May was a 4 week period

By EndPCNoise on 7/24/2007 4:33:06 PM , Rating: 2

Good post as I was not aware of the variance in weeks per month. How did you know?

I would just like to add this to be fair...

XB360 May 2007: 155,000units/4weeks = 38,750units/wk.
June 2007: 198,400units/5weeks = 39,680units/wk.
Difference of < 1000 units/wk.

To be fair, XB360 sales were also stagnate.

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RE: June was a 5 week period, May was a 4 week period

By ShapeGSX on 7/24/2007 9:56:15 PM , Rating: 2

Adobe apparently uses NPD POS data somehow, and they have a document that tells you how to understand the NPD data. There is a paragraph specifically documenting the comparison of the 4 week and 5 week months.

http://72.14.205.104/search?q=cache:ZivGR9e70VIJ:w...

"Second, given the nature of the calendar, every few months a particular month will have
an extra "fifth week" of data, which typically shows up as a spike in the data. This
obviously distorts both the month/month and the year/year comparisons. "

Note the "shows up as a spike in the data" quote.

Another link, specifically dealing with video games: http://biz.gamedaily.com/industry/feature/?id=1529...
"Year-over-year comparisons aren't totally valid, however, because NPD's January reporting period this year does include an extra (fifth) week."

And here is a link dealing specifically with this June NPD data:
http://www.vgchartz.com/news/news.php?id=442

"NPD June covers sales from June 3rd through July 7th, 2007 -- a 5-week month. So if you're comparing to last month's figures, remember to add 25% to last month's data (or subtract 20% from this month's data) for a valid comparison."

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Is it enough? Not nearly enough!

By ChipDude on 7/24/2007 11:37:57 AM , Rating: 4

If you sell 1 unit and drop the price and sell 2 more next month you can claim 100% increase in sales.

Don't get fooled by the % increase, what is important is how many total units they have sold and were those sales enough.

Remember Sony has invested billions in this platform and still lose hundreds of $ on each console. They need to get volumes to probably 500,000/month before they get the volume they need that drive component cost down. THey are going to be stuck with a money losing hardware business for the rest of the year.

Second being stuck in 3rd will really hurt the creation of new titles. With smaller installed base then WII and 360 there will be very little motivation for creators to invest the tens of millions needed to develop the high performance games for the PS3 cell CPU. Its a horrible catch 22 that sony can't escape. No compelling games, far more compelling competitor products, too expensive console with no volume. Low volume results in few games that make the console less then attractive. The problem feeds on itself.

The only solution is to drop the price another couple hundred bucks to undercut 360. They have to be cheaper or the non-sony fanboi will always find the xbox360 and wii a better buy.

Sony made a huge mistake not seeing this thru their arrogance of put it out there and people would bend over and take it from sony. They are now stuck where the original xbox was.

Sony also is screwed as the blue-ray hasn't been compelling either. By Christmas blue-ray players will be at 299 or lower. Either way the only way Sony will jumpstart this thing is to be 50 bucks or lower then xbox 360.

I have a wii and xbox360, for 499 I almost was going to get the PS3 just for the blue-ray. But why, in another 6 months both HD-DVD and blue-ray players will be available for cheaper.

RE: Is it enough? Not nearly enough!

By Hawkido on 7/24/2007 12:23:26 PM , Rating: 2

Not bad points...

THe only thing I wanna point out is

If you want Blu-Ray player and a PS3 it would be silly to get both. As most people don't have 2 HDTV's (Most don't even have one)

so the PS3 will still be attractive if the BR player drops to $200 and the PS3 maintains a $499 price point (the 80 gig model will fall to the $499 point after they get the 60 gig model out of the warehouses.)

The whole price drop scenario is just smart inventory managment. They need to flush the higher manufacturing cost model out before they start with the Software emulation variant. But just in case it takes a while to get the 60 gig out they set the price of the new model to $599. Once they 60gig hit a preset low inventory percentage they will drop the price of the 80gig model (as there will always be a crowd looking for the harware compatability chip variant.

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RE: Is it enough? Not nearly enough!

By MisterChristopher on 7/25/2007 4:57:19 PM , Rating: 2

Time will change all this. Sony will be selling tons of these consoles years from now, just like they are doing with their PS2 right now. People need to settle down and be patient a bit. Sony doesn't need to beat the 360 and the Wii right now. They have the money, the time, and a product quality level that will allow the PS3 to still be desirable long in the future. They will ride this out until it becomes profitable, then they will sit back and smile while they drink margaritas.

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RE: Is it enough? Not nearly enough!

By ChipDude on 7/26/2007 4:38:20 PM , Rating: 2

This is a naive assumption and comparison to PS2 is simply not correct.

PS2 has built a virtuous cycle and its huge installed base is reason enough that game developers invest in new games and also why there still are sales becauce new gamers see the the whole package of box+games they get make it a compelling purchase.

PS3 as I've said before has the reverse cycle and its killing it. So expensive that except for the fanboi isn't worth the purchase now, few compelling games. For the smarter gamer crowd they can see the risk of plunking down even at the new price as the installed base is not enough to get the big game developers to pony up for exclusive games. Game development costs are simply too high and even harder on cell that the new games must move more volume then any developer can hope on PS3 along. Thus any hot game will most likely be avaiable on the xbox too. THus its a horribble cycle. Only breakthru is for Sony to kick back or pay for development of exclusive games.

Also, to assume that a superior technology wins is also naive. Look only at VHS vs Beta, or in CPUs at x86 vs Power or Alpha. In these case not having the virtuous circle of software etc. feeding you you will lose no matter how technically superior your offering may be. Here again Sony was naive to think people buy specs. They buy games!

What Sony with its deep pockets should have done was been bold and priced the PS3 out at launch at 399 undercutting xbox360. Sure they would have lost another couple billion but would have been assured of becoming the leader. Now they are attractive only to Sony fanbois and impatient people looking for a deal on blue-ray ( that is another battle yet to be decided ).

No Sony and Stringer really blew thus one. They went for greed and arrogance vs. assured win with guranteed money later.

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Sorry Jack

By mdogs444 on 7/24/2007 10:38:46 AM , Rating: 2

quote:
"The new price on the 60 GB PS3, coupled with our very strong software showing from E3, is certainly paying dividends in terms of impressive sales across the board at retail," said Jack Tretton, president and CEO, SCEA.

Sorry Jack, but im fairly certain that your "strong software showing from E3" did not have much to do with the increase in sales. Its all about the new price, we all know that.

My curiosity is "why" -

1)either additional people are ecstatic about the $500 price point

or

2)people that have been debating on getting one but didnt have the money right now coughed it up out of fear that it would go back up to $600

RE: Sorry Jack

By therealnickdanger on 7/24/2007 10:48:06 AM , Rating: 2

I'll bet my paycheck that it isn't reason #1. I still fail to see Sony's idea of "impressive sales across the board" when they are being beaten 2-1 and 4-1 by the 360 and Wii, respectively.

For $600, I would rather buy a 360 and a Wii combined. They have games I can play TODAY.

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RE: Sorry Jack

By Nfarce on 7/24/2007 11:19:01 AM , Rating: 3

quote:
My curiosity is "why" -

Well let me tell you why I jumped at the chance and bought one after the price drop:

1) Several of my friends have the consoles and I haven't owned a console since the N64 10 years ago. I was missing out on their gaming fun as I am strictly a PC gamer and they weren't. Plus, I wanted a portable gaming system anyway for traveling and didn't want to spend $1,800 on new gaming laptop.

2) The price drop.

3) Amazon had a free Sony BR remote and movie on top of the Blue Ray 5 free movies promo with a BR player purchase (that's a total of ~$150-$175 in freebies).

4) I've been wanting a BR player.

5) I heard about the $599 80GB version with software emulation replacing the $499 60GB version with the chip, and that was it for me.

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Sony is SMRT?

By artemicion on 7/24/2007 11:11:24 AM , Rating: 2

Pretty clever moves by Sony:

1) Portraying the price drop as temporary until the 60GB stock runs out is a pretty good idea - gets people to think that they're getting a "deal" on the hardware. In reality, it's unlikely that the PS3 will see a price INCREASE. It's just a rule of thumb that tech gadgets don't go UP in price as time goes on. Either Sony will start cranking out additional 60GB machines despite their claims, or they've got a "new" $500 pricepoint PS3 up their sleeves. But successfully convincing buyers that this might be a temporary "sale" was a great move on their part.

2) Relatedly, the move was a great recovery from slow initial sales. The PS3 was commonly regarded not only as overpriced, but also as a sort of pinnacle of gaming. The console was priced out of reach of most buyers, but it still had piqued people's interest. By reducing the price, Sony has put the seemingly "elite" console within the range of many more consumers who'll buy just for the sake of having the "sexiest" console on the market. Owning a PS3 is like owning an iPhone - it's symbolic of just how "baller" you are (in a gamer/materialistic sense), regardless of its functionality. And Sony just made it $100 easier to reach "baller" status.

3) Taking the PS2 emulation chip out is a pretty nifty idea on Sony's part too. Similar to the price cuts, it makes it seem like the existing consoles are a dying commodity. As a result, Sony has both cut production costs for future PS3s while simultaneously driving up immediate demand. Of course, that may mean reduced sales in the future, but I don't think the lack of legacy at that point will matter so much (sure it'd be convenient, but by the time legacy becomes extinct from the PS3, the last generation will be 2-3 years removed).

RE: Sony is SMRT?

By helios220 on 7/24/2007 2:15:36 PM , Rating: 3

Labeling the PS3 as an 'elite' status symbol of how 'baller' you are is incredibly subjective, the reference to the iPhone only makes that more clear.

Many people view the PS3 (and much more so the iPhone) as a symbol of needless excess and blindly giving into what ever new temptation the retail giants are so generous to throw our way.

I wouldn't pretend to be believe that everyone shares my opinion, however the word 'tool' is much more likely to come to my mind when I see someone with an iPhone than 'baller', the same for all of those who foretold the glorious coming of the PS3 like it was some sort of messiah.

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RE: Sony is SMRT?

By artemicion on 7/24/2007 3:51:41 PM , Rating: 2

Your comment is something that I intended to capture in my "(in a gamer/materialistic sense)" parenthetical, but commentary from communist Russia is always appreciated!

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Whats really funny...

By FITCamaro on 7/24/2007 2:30:30 PM , Rating: 2

Over twice as many consoles are supposedly being sold but software sales are only up 15%. So basically everyone who wanted a cheap(er) Blu-ray player cashed in and bought one. So the PS3s situation as a games console really hasn't improved too much. If those people had intended to use it for games, they would have bought at least one game. Obviously thats not the case unless no one else has bought PS3 games in that time period but new PS3 owners.

RE: Whats really funny...

By FeralMisanthrope on 7/24/2007 5:01:00 PM , Rating: 3

You're forgetting about all those people who already own a PS3 and continue to buy games. Consoles are a one-time purchase. Games are purchased continually throughout the lifespan of the console. Thus, software sales are primarily correlated with the size of the installed user-base.

Even if everyone who bought a PS3 after the price drop also bought a game or two, software sales aren't going to go up by much more than the increase the total number of consoles sold. Sony's numbers indicate about a 5-7% increase in user-base, so a 15% increase in software sales is actually pretty good.

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RE: Whats really funny...

By ChipDude on 7/24/2007 8:44:16 PM , Rating: 2

No what is funny is that all these new owners and all the existing owners can't find any games worth playing, that is why there is such a small growth in PS3 game sales.

Did you see who dominates all the top game titles? It is DS and WII

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Well duh, your product was priced to high

By IMPoor on 7/24/2007 10:49:14 AM , Rating: 2

Its got to be obvious to Sony that the price drop is the reason for increase in sales. I have a feeling that sony will sell out of the 60GB and shortly after drop the price of the 80GB to $499. Also I bet the fact that you get 5 free bluray movies with the PS3 doesn't hurt sales either. This should also help with bluray movie sales. Good Job Sony. (by the way I own a x360 and have no plans to get a PS3 so I am not a fanboy)

RE: Well duh, your product was priced to high

By Fusible on 7/24/2007 11:20:04 AM , Rating: 2

Thats a good reminder, I wonder if they'll post the free movies as sales during the promotional period. Hmmm...

But this will only help in the short term, they're only going to go back up with the new model. And most definitely a less optimal model, than the one I have now. And for $599, and just add the 80 gigs to make it look nice. I don't think so.

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RE: Well duh, your product was priced to high

By Hawkido on 7/24/2007 11:59:05 AM , Rating: 2

Most of the movie sales tracking firms don't count "Included movies" they only count "Sales Slip purchases" that's why Bill Gates bought a garage full of HD-DVD movies and gives them away by the cart load (J/K boy that would be funny!)

However, if the store listed the movies given away on the sales ticket they might be tossed in with the numbers, but neither Sony or MS have any control over that... That is stricktly up to how the retailers package and ticket the sale.

Both Camps do the 5 free movies thing. Blu-Ray has an advantage with having a game platform to give movies away with as well as a player.

I just want the format war to be over. I need to know what format to buy and WILL NOT be stuck with a loosing format. I am really leaning towards Blu-Ray as they really did a good job of cornering the best movie studios.

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Worth mentioning

By bozilla on 7/26/2007 6:23:15 AM , Rating: 2

Since DailyTech finds interesting to post PS3 and Sony sales increases with new prices, I think it's only fair that you also keep track of news like:

Xbox 360 HD DVD Player Moves to $179, Adds Five Free HD DVDs

http://biz.yahoo.com/prnews/070726/aqth069.html?.v...

RE: Worth mentioning

By afkrotch on 7/28/2007 8:27:16 PM , Rating: 2

The only problem I see (which really isn't a big problem) is the fact that those without an Xbox 360 Elite could get screwed because of HDCP. Without the HDMI, HD content wouldn't be HD. Course that's only when content providers start implementing HDCP.

Course I'm guessing by the time HDCP is implemented on all HD-DVDs all non-HDMI Xbox 360s will receive an RROD. The only problem, that is probably just a non-problem.

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O'rly?

By elpresidente2075 on 7/24/2007 10:45:58 AM , Rating: 3

Who'd have thought that the PS3's price was the limiting factor with its slow sales??

</sarcasm>

Seriously though, even though I'd never buy one (I can't bring myself to buy any game consoles), most of the people I know that would, haven't bought them due to the astronomical price. Maybe now that sales have doubled (did I read that right) with a price drop, they'll get the idea that people don't like to spend all their money on the hardware to play the also expensive software.

Oh well, good luck Sony!

Soo....

By Moishe on 7/24/2007 1:13:04 PM , Rating: 3

We were right when we said it was too expensive? I'm glad Sony got it through their skulls, now we just need the fanbois to admit that defending the atrocious price was the wrong stance.

The PS3 has always been a nice piece of hardware but $600 for a console is too high for most. Now at least people have a similarly priced alternative to the XB360.

Thanks Sony

By zsouthboy on 7/24/2007 2:26:01 PM , Rating: 3

For holding the Emotion Engine hostage, as a way to get sales.

Please take a step back, and consider how stupid your marketing department is: increase sales by spreading FUD (real or not) that your product will be WORSE in the future than it is currently, as an impulse to "buy now"

Seriously.

I'm not saying $499 is fake - just like everyone else, I would guess the 80 gb, emotion engine-less version will drop to that price immediately after the 60's sell out.

The missing percentage

By energy1man on 7/24/2007 6:54:43 PM , Rating: 2

If I were a game developer, I would definitely want to know what percentage of people are buying the PS3 solely for a blue ray player, and what percentage will be using it for playing games. With the 360, it would seem the number of "gaming systems" sold would be 100%. I feel with the PS3 being your cheapest available blue ray player, a significant number are ending up up in the hands of non-gamers.

Over to Japan

By crystal clear on 7/25/2007 7:33:45 AM , Rating: 2

quote:
"The new price on the 60 GB PS3, coupled with our very strong software showing from E3, is certainly paying dividends in terms of impressive sales across the board at retail," said Jack Tretton, president and CEO, SCEA.

Whilst everybody gives the new price on the 60 GB PS3 the credit for the impressive sales across the board at retail," then you should read this about Japan-

For all ex-Microsoft, now EA Sports man Peter Moore's claim that the PS3 isn't doing too well in Japan, the latest sales figures from that country show the Sony has shifted a darn sight more next-gen consoles than Moore managed.

According to Japanese games magazine publisher Enterbrain - by way of the Reuters news agency - Sony had sold 1.01m PS3s in Japan between from the console's 11 November 2006 debut there to 15 July 2007.

The Xbox 360, which arrived in Japan in December 2005, almost a year before the PS3, has only racked up local sales of 420,705, between that date and 8 July, Enterbrain's numbers show.

The Nintendo console outsold the PS3 by almost 3:1, it's outsold the Xbox 360 by more than 7:1.

http://www.reghardware.co.uk/2007/07/18/wii_wins_i...

read this, it's kinda funny ... (Blu-ray vs. HD-DVD)

By Pandamon on 7/25/2007 3:20:22 PM , Rating: 2

http://www.tech.co.uk/home-entertainment/video/dvd...

Hardly a price drop

By dagamer34 on 7/27/2007 6:47:17 PM , Rating: 2

It's hardly a price DROP when $399 or even $449 + tax doesn't buy a PS3. It's a price ADJUSTMENT.

Frankly, spikes and blips of increased sales are not what sustain a system. Sony screwed up. Let's go ask Kutaragi what's gonna be in the PS4, PS5, adn PS6.