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Gadgets Japanese PS3 Launch Numbers Cut by 20%
Brandon Hill (Blog) - October 30, 2006 3:27 PM
Print E-mail del.icio.us 41 comment(s) - last by wuZheng.. on Oct 31 at 4:15 PM
Sony still being plagued by component shortages

According to the Nikkei Keizai Shimbun, Sony is still having problems with component shortages on its PlayStation 3 console. So instead of having 100,000 units on hand for the Japanese launch of the PS3 on November 11, Sony will instead provide 80,000 units.

There was no mention of what specific components were causing the launch numbers to be cut back, but Sony has previously had trouble manufacturing the blue laser diodes used in the Blu-ray drive. IGN reports:

The lack of digits in that number is even more staggering when you consider that the PS2 sold out of nearly a million units when it launched back in March of 2000. Having lived through a few weeks of attempting to obtain a PS3 pre-order, we're not too surprised by the lowered shipping numbers. Allocations disappeared quickly at online retailers that were brave enough to start pre-order programs.

Sony announced back in early September that it would be delaying the European launch of the PS3 until March 2007 due to component shortages. At the time, it was projected that the United States would get 400,000 and 100,000 units respectively.

Despite this recent development, there was no news as to whether US launch numbers would also take a dive.

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Nintendo is ready to pounce
By tarv on 10/30/2006 3:51:30 PM , Rating: 2
I posted this on the other Sony thread but this is more appropriate here.

http://www.gamespot.com/news/6159406.html

Supposedly nintendo will have 9-11 mill units ready to ship by Dec 31.




RE: Nintendo is ready to pounce
By michal1980 on 10/30/06, Rating: -1
RE: Nintendo is ready to pounce
By wuZheng on 10/30/06, Rating: 0
RE: Nintendo is ready to pounce
By WhiteBoyFunk on 10/31/2006 12:28:37 PM , Rating: 2
Well, Mr. English Professor, it appears you too have made a mistake in your grammar.

quote:
They are using older technology that is easier to manufacture and costs less, not only that, but they gain profit from every machine they sell (about 5-10 USD or so), the Wii is cheap to make, as such it wouldn't be a problem to make a lot more than you expect if you have the cash to do it.


Run-on sentence much? Comma splices and everything, bro... (Do I put a comma there?)

Please stop pointing out everyone's spelling mistakes and whatnot and I will stop pointing yours out as it wastes ALL of our time. :)


RE: Nintendo is ready to pounce
By wuZheng on 10/31/2006 4:15:48 PM , Rating: 2
quote:
Please stop pointing out everyone's spelling mistakes and whatnot and I will stop pointing yours out as it wastes ALL of our time. :)


I believe it was only the opening sentence that was critical of michal's spelling. The rest was an argument against his "doubts" and claims that no one was "shining a light on Nintendo." I don't claim language use superiority over michal, its just that his subtle mistake added to his comment's idiocy. However, since you brought it up... I'm going to assume that either you had the urge to be a jerk and make a WHOLE post about my grammar mistake. OR, that your reading comprehension is quite poor. I'm going to give you the benefit of a doubt and assume the former.


RE: Nintendo is ready to pounce
By ViperROhb34 on 10/30/2006 4:27:48 PM , Rating: 5
I dont doubt Nintendo's numbers..

Nintendo's isn't using a low yield ( around 15%-30% according to some ) processor being used like the Cell in PS3. .. low yields mean higher prices and less to go around..

Compound that with Bluray part shortages..

Since none of Nintendo's parts are really 'high'-end or uber high tech.. they aren't as difficult & expensive to produce, nor in nearly as short of supply..

I'd think they'd have Wii's about as fast as they can put them together...


RE: Nintendo is ready to pounce
By h0kiez on 10/30/2006 4:44:15 PM , Rating: 2
Not to mention that Nintendo has little reason to lie. No matter what they have, it'll be many times what Sony will...and the supply of 360s is basically unlimited given the amount of time MS has had to meet demand...and also the majority of people that want one in the short term already have one.


RE: Nintendo is ready to pounce
By TheDoc9 on 10/30/2006 4:52:12 PM , Rating: 1
Not only that, they'll never sell them all so they could say anything.


RE: Nintendo is ready to pounce
By slashbinslashbash on 10/30/2006 5:09:53 PM , Rating: 3
I have a friend who manages a GameStop, and she told me not to worry about the 8:00AM pre-order line because they will be getting tons of Wii systems for normal (non pre-order) sales.


By encryptkeeper on 10/31/2006 9:03:25 AM , Rating: 2
Can you ask your friend when the Wii kiosks will be up?


By encryptkeeper on 10/31/2006 9:02:45 AM , Rating: 3
Michal1980, think about the number of Wii units that are supposed to be out there compared to what Sony will put out. If there's a million available at launch, why BOTHER with a preorder? Besides, they'll probably have more than a million ready to go by November 19th. Just chill out, and buy the console that has the most games you want to play and stop complaining when you obviously hate Nintendo.


RE: Nintendo is ready to pounce
By othercents on 10/30/2006 6:20:37 PM , Rating: 2
The article isn't an exact statement from Nintendo, but I know I have read a few press releases from Nintendo stating that they are planning on selling 5 million units before the end of the year and they want to be able to ship over 9 million units before end of 1Q 07. I believe the manufacturing process won't be a problem especially with the size of the unit and small amount of silicon need compared to even the simplest computer available.

I also don't see why Microsoft wouldn't be able to produce that many units. I'm sure it has more to do with demand than anything else. You do also have to understand that Microsoft has had a hard time launching in the Japanese markets. Wii will not have the same problems that the Xbox360 did and will probably sell over a million just in that market at launch.

There is still a question on how many Wii units that will actually sell. Only time will tell. I'm sure that Nintendo is hoping that the people who buy Wii initially will love it and tell all their friends to buy one. Unlike PS3 you should be able to walk into any store and buy a Wii. This goes along with instant consumer gratification. There will be limited instant gratification with PS3 (just because you have to be special to find one), but there should be plenty of instant gratification with Wii.

Other


US shortage
By webdawg77 on 10/30/2006 3:40:32 PM , Rating: 2
You would assume the US shipments would be cut as well.

Sony should have suggested either a later date or lower numbers in the beginning. Then, when they either shipped earlier, in greater numbers, or both Sony would have gotten some good PR. I sure hope this doesn't continue to plague them throughout the "March 2007" time frame. I would assume that they will also end up cutting the number down from 6 million to around 4 million or so.




RE: US shortage
By dwalton on 10/30/2006 6:20:59 PM , Rating: 2
Sony should just delay all regions until spring and do a world-wide launch.

What's the use of making the holiday sale period with only a couple hundred thousand. Sony has enough brand loyalty to sell a few millions within a couple of days even if they launch on April 18 at the back door of Walmart with no marketing publicity.

The only thing worse than waiting for your favorite product to drop is having to wait for your favorite product even though it dropped months ago in limited volume. Nothing will pis* people off more than wasting their time looking online or calling every afternoon to their local stores for months just to try to cop a PS3.


RE: US shortage
By akugami on 10/30/2006 10:02:46 PM , Rating: 3
Sometimes you have to go forward with a losing situation because the market and internal politics demands it. There will be hell to pay if Sony misses the holiday shopping season with it's PS3 and launches it instead in Jan or Feb. Shareholders will come howling like crazy.

At least if Sony sells out of it's small number of available units it can brag and say the PS3 was so hot this holiday season Sony couldn't make enough of them to satisfy demand.

The other thing is, every PS3 sold means one less console under little Jimmy's Xmas tree. Every PS3 sold means one less Wii or 360 sold and that is very important as well since at the same time you build your market share, you deprive your competitors of a sale and increased market share.


RE: US shortage
By Spivonious on 10/31/2006 2:21:58 PM , Rating: 1
Every PS3 that isn't sold because it's out of stock results in two Wii purchases. :P


RE: US shortage
By encryptkeeper on 10/31/2006 9:11:06 AM , Rating: 2
dwalton you bring up a good point, and I'd agree with you but there is one reason why Sony is doing it's damndest to put out the PS3 this holiday season. They're scared of Microsoft and Nintendo. It doesn't matter who they're more scared of, but trust me, they are scared out of their minds. They've seen that their product has generated the least interest of the 3 next gen consoles, and their market share will severely erode in the next few years if Nintendo can wow it's audience before people become comfortable with the PS3.


RE: US shortage
By bysmitty on 10/31/2006 10:37:46 AM , Rating: 2
The reason Sony wants to get the PS3 out this holiday season, no matter how few they have to sell, is so they can report at least some PS3 revenue for this fiscal year. They are in a deep red hole and need to do whatever they can to show the shareholders that they are making progress.

...bysmitty


Not Enough
By shamgar03 on 10/30/2006 9:51:01 PM , Rating: 3
Well this is going to piss people off, but honestly I don't think sony is charging enough for the PS3. Considering the supply is going to be so low, and the demand so high, simple economics shows that they should definately be charging more than 600$ for the console. at least for the first few months. I mean the components have got to be a fortune when they are having so much difficulty manufacturing them.




RE: Not Enough
By encryptkeeper on 10/31/2006 9:39:09 AM , Rating: 2
This isn't simple economics. You can't be narrow minded and use the supply and demand model in a case like this. Low supply doesn't create more demand when there is an alternative to the said low supply product in huge amounts. Besides, people have already been bitching about the price being so high anyway. Do you think ANYONE is EVER happy paying MORE for something they think is expensive enough already??


RE: Not Enough
By Spivonious on 10/31/2006 2:20:55 PM , Rating: 2
But look at gas prices. They go from $1.60 to $3.20 and people complain. Then they trickle down to $2.10 and everyone exclaims how cheap gas is!

Sony should charge $800 for the PS3 and throw in a game. Then, when their costs drop Q307 they lower the price to $650 and everyone is amazed at how cheap it is. And Sony's low supply didn't create the demand, Sony's brainless fanboys did.


hey i want one now
By mrgq912 on 10/30/2006 6:14:39 PM , Rating: 1
I have been doing a lot of reading on Gamespot and watching there PS3 previews. Now that I actually want one I don't think I ll be able to buy it till next christmas. Oh well it will give me more time to see which system to get 360 or ps3.

But here is what i learned about the ps3.

Sony is right on one thing, the PS3 does have a lot of bang for the buck. I don't know how powerful this "cell" junk is but Anand seemed optimistic in his preview, so I think it will be a good processor.

The PS3 will run a linux OS, have a wireless adapter and be able to surf the web. Perfect for me, it doubles as webtv. Good enough for my girlfriend to check her email. And since it runs linux, i am sure there will usefull programs made in the future.

It also has a media reader, good to quickly show pics to friend. And it has cool japanese games like Virtua fighter 5 (this game is never coming to M$). And their controller will keep my Wii envy at bay. It also very quiet (~ 20db). Their GUI is pretty cool aswell.

The negatives are its online service is not unified. LIke M$ it lets you download demos and trailers for free, but the actually games online have to be done by developers using third party software (like Xfire). Thus no universal point system

The hard drive is not removable, hard drive upgrades plug into usb ports. The controller battery is not easily replaced.




RE: hey i want one now
By Arkham1 on 10/30/2006 7:11:45 PM , Rating: 2
The hard drive is removable. Add another of higher-capacity if you want, just as long as it's 2.5" FF.


RE: hey i want one now
By encryptkeeper on 10/31/2006 9:18:29 AM , Rating: 2
The Wii does all of that except the hard drive and overall power of unit itself. And give me the Wiimote over the Sixaxis ANY day.


By rushfan2006 on 10/31/2006 9:40:05 AM , Rating: 2
LOL..I was just thinking wouldn't it be kind of funny if Sony was really just doing a lot of BS talk with the media to spread lies that they have a shortage when really they have millions of units being stockpiled for a "strategic timed release".

;)

Of course if that was the case we'd probably see sony's national HQ being fire bombed on the 11 o'clock news....





By bysmitty on 10/31/2006 10:45:48 AM , Rating: 2
Funny thought but they would still need to halve the price before they will see any real sales figures. I see the price being a much bigger barrier than availability.

...bysmitty


called it
By Saist on 10/30/2006 3:54:41 PM , Rating: 3
http://rugoodenough.com/phpBB2/viewtopic.php?t=59

hopefully the link could work, but I already ran the numbers months ago, and all Sony is doing now is proving me right. Lovely. For once, I wish I was wrong about production numbers.

(can't find the other break down I made after this one... It may be somewhere in the DT archives already)




Marketing Spin 101
By Houdani on 10/30/2006 4:44:02 PM , Rating: 1
The Statement :
Japanese PS3 Launch Numbers Cut by 20%.

The Spin :
By trimming the quantity of loss leaders, we will not lose as much money as previously predicted. Therefore, our stock will outperform expectations. Doitashimashite.




RE: Marketing Spin 101
By Draco on 10/30/2006 4:53:34 PM , Rating: 2
Sony's ineptness has really left a bad taste in my mouth about the PS3 in general. They want people to buy their $600 console? Then at the very least have to make it readily available. I don't care if it's got a radioisotope thermoelectric generator in int! You can't "release" such a product to the public and only have a handful available. Well you can, but the backlash is certainly not something I would ever want to deal with.

You had a good run with the PS/2, Sony. Now pack it in and just keep making TV's.


Japanese Loyalty
By ViRGE on 10/30/2006 3:40:37 PM , Rating: 2
Humm, Sony is really pushing the idea of Japanese loyalty to their own companies here. Certainly there will be defections to the Wii due to concepts and price alone, but you have to wonder just how abused Japanese consumers will let themselves be before going to Microsoft.




This is..
By Aikouka on 10/30/2006 3:50:28 PM , Rating: 2
This is gunna hurt Sony quite a bit money-wise if the shortages keep up. Sony's going to be subsidizing the losses from the consoles with the games, but I don't know too many people who will buy games without a console to play them on.

Maybe it would just be wise to delay the date altogether? I know it certainly won't be great for Sony to enter the console fray later than everyone else, but the shortages are looking really bad, and that's after the world already saw XBOX 360 shortages a year ago. So yeah, I'd say delay it, and next year is when a lot more good games are slated to come out for the PS3, so maybe I'd actually pick one up :D.




Quality
By deeznuts on 10/30/2006 5:32:28 PM , Rating: 2
My only concern with low yields is that quite possibly the ones that make it out will have more problems with quality.




Typo ^^
By Furen on 10/30/2006 6:08:18 PM , Rating: 2
Shimbun is not a word, not a Japanese word, anyway. The word you were looking for is Shinbun (only "n" can be followed by another consonant, excepting "tsu" and double consonants). Shinbun, by the way, just means newspaper, so you could just ommit it.




Reality
By crystal clear on 10/31/2006 7:48:56 AM , Rating: 2
This was expected- Announcements are never to believed-
there is no guarrantee .




By crystal clear on 10/31/2006 8:14:57 AM , Rating: 2
"There was no mention of what specific components were causing the launch numbers to be cut back, but Sony has previously had trouble manufacturing the blue laser diodes used in the Blu-ray drive"

Add to this one more component-CELL processors.
Go to this link-

IBM: Cell-like CPU yields 10-20 per cent
http://www.reghardware.co.uk/2006/07/13/ibm_sony_c...





Renaming Sony
By Trisped on 10/31/2006 12:17:14 PM , Rating: 2
We should just call them Bad News, because that is all they make. Delays, extream costs in hardware and software. Controler issuses, online support, delays, delays, delays, shortages, shortages, shortages, CEOs lieing in an attempt to make people want the stupid thing, more shortages. In the past year there has been what, 2-3 press releases that were good news?

I still think they are using pickel PR to promote their product. http://www.vgcats.com/comics/?strip_id=212




hmm sugar coating from a ps3 supporter...
By michal1980 on 10/30/06, Rating: -1
By Hakuryu on 10/30/2006 3:55:34 PM , Rating: 3
cont.

... for Sony. It raises questions once again about the benefit of blue ray drives, will probably cause a ruckus in Japan, and end up hurting their PS3 sales by people buying what is available (Wii, 360, even DS) at a much more reasonable price.

One of the biggest problems however might be developer support for the PS3. If I spent millions making a game for launch and found out the numbers of potential buyers are decreasing, then I see my profits drop. Add to this the news that the Europe launch is being delayed, and I might be thinking it will be years before a large base of owners could make my game profitable.


Just die Sony
By mobutu on 10/30/06, Rating: -1
RE: Just die Sony
By michal1980 on 10/31/06, Rating: -1
RE: Just die Sony
By slunkius on 10/31/2006 9:52:55 AM , Rating: 2
I see sony missing one big opportunity here. They should hire dear old michal1980 to take care of manufacturing, and production would start ramping up 10000%. But thats only for starters...


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

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