Sony Hopes to Sell 5 Million PS4s in 5 Months
September 19, 2013 9:02 PM
comment(s) - last by
Electronics superpower hopes to best PS3's sales by 40 percent
Sony Corp. (
) saw sluggish sales of the PlayStation 3 after in launched on Nov. 11, 2006. In the console's first three months on the market it garnered are mere 3.6 million units sold. Although sales would eventually come back to life convincing Sony that there was life left in its console hardware business, the company was intent not to repeat on the relative miss of the PS3, instead looking to return to the successes of the PlayStation 1 and 2.
I. PS4 Aims to Wipe Bad Taste from PS3 Launch
The PlayStation 4 is set to launch on Nov. 15 in North America, a week before Sony's arch-rival in the console business Microsoft Corp. (
launches the Xbox One
. And Sony is already boldly predicting that it will sell 5 million consoles in the first five months of availabiliy, besting the PS3's sales by 40 percent.
If Sony can pull that off, it will be an impressive success story in an era when consoles are seemingly suffering the fate they bestowed upon their PC brethren -- market cannibalization. As mobile and social network gamings have boomed, sales of new console games have dipped, according to market researchers.
But Sony has benefited from near-flawless public relations in the wind up to the PS4 as Microsoft
that outraged gamers, only to later turn back
on some of them
had the lead as of last month in presales
in the online retail outlets like Best Buy Comp., Inc. (
) and Amazon.com, Inc. (
Sony wants to average 1 million PS4 sales a month. [Image Source: Sony]
Microsoft is getting the head start on Sony in Europe, where the Xbox One launches Nov. 22 (the same dates as Microsoft's North American console launch). Sony's Xbox One will get started in the EU retail market on Nov. 29.
Piper Jaffray Cos. analyst Michael Olson suggests that Sony may be able to meet these targets. In
, he predicted that Sony would sell at least 3 million PS4s this holiday season. That would mean Sony would only need to sell 2 million consoles in Q1 2014 to meet its goal.
II. Sony Gets Aggressive Price Wise
Sony Computer Entertainment Inc. (SCEI) CEO and President Andrew House bragged to
that the PS4 has "a more attractive price" than the Xbox One, or the Sony console's own predecessor, the PS3. The Xbox One retails for $499 USD; the PS4 retails for $399 USD. The PS3 debuted in two differents SKUS -- one with a 20 GB hard disk drive (HDD) ($499 USD) and one with a 60 GB HDD ($599 USD).
Despte the aggresive pricing, Sony predicts that the PS4 -- which will initially be sold at a loss -- will achieve profitability "significantly sooner"
than the PS3 did
hopes to make a profit on each console sold from day one
, thanks to its higher price point.) Sony's PS3 took roughly two years to achieve profitability, finally making money for Sony
in Q3 2008
. Afterwards form factor shrinks, yet again plunged it back into losses, until late 2009 when it appeared to
finally become profitable for good
Sony will take a small loss on the PS4 at launch, but the Xbox One will make a profit from day one, thanks to a higher price. [Image Source: Heavy]
at the Tokyo Game Show, "[Switching from custom components like the CELL processor to PC components] has enabled us to reduce the scale of investment significantly, massively so in comparison to the PS3."
Mr. House was asked about Microsoft's recent announcement that it was working on
"hundreds" of TV show ideas
, in addition to the
show it has already committed to. Mr. House says that Sony could eventually offer up similar exclusive TV series or miniseries content to the PlayStation Network's 150 million+ subscribers, but when asked if anything was coming this year he clarified, "I don't think we are going to push the market."
It sounds like Sony is content to rely primarily on games to try to push the PS4 to the 5 million consoles sales mark in November and over the four following months.
This article is over a month old, voting and posting comments is disabled
RE: On the front page...
9/20/2013 9:13:00 AM
Because when we think "consoles" we wonder about what Tim f*cking Cook is thinking. Good call.
RE: On the front page...
9/20/2013 10:42:11 AM
Must be one of these guys that think all gaming will be done on iphones in 5 years.
RE: On the front page...
9/20/2013 4:12:13 PM
Didn't you hear? The casual games market is the end all be all of gaming. Must be why Zynga is doing so well recently...
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
Microsoft Has Plans For "Hundreds" More TV Shows After Halo
September 19, 2013, 2:05 PM
Apple Gets Smacked With External Ebooks Monitor
September 8, 2013, 8:34 AM
Surface Pro 2 May Target 8+ Hour Battery Life With Haswell
September 4, 2013, 12:15 PM
Want Xbox Live Silver? Say Goodbye to Xbox One Game DVR, OneGuide, SmartMatch
August 8, 2013, 7:21 AM
PS4 Takes the Lead in Preorders as Sony Powers up to Lean Profit
August 1, 2013, 12:40 PM
Xbox One's Release Date in China Set for September 23
July 30, 2014, 1:15 PM
Chinese OEM KingSing Launches $99 Windows 8.1 Tablet with 3G Connectivity
July 30, 2014, 11:04 AM
Samsung Sees Decline in Share, Shipments in a Growing Smartphone Market
July 30, 2014, 9:43 AM
UK Drivers Must Now Give Their Cell Phones to Police After a Crash
July 29, 2014, 4:37 PM
Ford to Switch 3,300 Employees from BlackBerries to Apple iPhones by Year's End
July 29, 2014, 2:08 PM
Quick Note: Hilton Hotels to Use Smartphones as Room Keys, for Check-In/Check-Out
July 29, 2014, 12:53 PM
Most Popular Articles
Facebook Will Force Android, iOS Users to Use Messenger App This Week
July 29, 2014, 11:26 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Ford's Extensive Use of Aluminum in '15 F-150 Results in $395 Increase for Base Models
July 28, 2014, 3:02 PM
Report: Apple to Launch 12" Retina MacBook Air, 4K Desktop Product Later this Year
July 24, 2014, 4:33 AM
Pentagon's Priciest Project, F-35, Misses International Debut
July 25, 2014, 10:18 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information