PSP sells 600,000 in first week, analysts say its GOOD but not GREAT.

I'd say that is pretty good. I don't think it will result in a price drop any time soon. The only thing I can see is Sony offering up the system by itself within in the next few months for about $200. I might bite at that price, but I am going to try and hold off until it goes down to about $150 system only.
 
I personally think that considering Sony's marketing efforts....that this is pretty disappointing. Remember that Sony guaranteed 1 million units for the NA launch. They didn't need it, and they foolishly postponed the European launch. I still have faith in the device, but more as a personal entertainment player than a video game player.
 
Better to have more than enough than not enough. With more than 300,000 still on store shelves that means they can commit their factories in the comming month to making units for the Euro launch now. If they'd sold out it would've pushed it back further while they try to replenish the market.

As for "only" selling 600,000 they do have two major factors going against them, the Price and their reputation (not their manufacturing record although that's doing enough damage, I mean their Portable record as in they have none compared to Nintendo.) How many Gamegears or Nomads sold against the Gameboy? If they continue to sell slowly they probably will drop the "value pack" for a $200 standalone, but who knows when they'll be able to make that decision especially when a price drop of any sort might give people the impression it's not doing well.
 
The Psp was topping the DS's weekly sales, but now DS is back on top in Japan.Now with the colored DSes releasing in Japan, DS sales have gone back up in Japan.
 
600,000 is not a failure. Sure its not a sellout but had they sold 1,000,000 units in the first week it would have broken all records. 600,000 is a hell of a lot of sales, especially considering that it wasn't during the preholiday season. Had the PSP only sold a couple hundred thousand then maybe we could call it a failure.
 
[quote name='RedvsBlue']600,000 is not a failure. Sure its not a sellout but had they sold 1,000,000 units in the first week it would have broken all records. 600,000 is a hell of a lot of sales, especially considering that it wasn't during the preholiday season. Had the PSP only sold a couple hundred thousand then maybe we could call it a failure.[/QUOTE]

No one said it was bad... BTW, since so many people returned their PSPS's and bought em again, the number is prob even lower...
 
The number was based on profits not units taken off the shelf. The stores did not make money on returned units.
 
Anyone see that earlier article that said they sold 575,000 units and theres still 300,000 left in inventory? Since 125,000 units seemed to be missing from the 1 mill, does that mean that 125,000 of the PSPs were swapped out?

Personally, I swapped mine out once cuz of dead pixels.
 
I wonder how many were sold on Ebay to foreigners. I imagine quite a few...so these numbers are probably much less than Sony would like for a NA release. Analysts rarely have really changed their tune about the PSP...remember they were gung ho about this only weeks ago.
 
[quote name='lurknomore']I wonder how many were sold on Ebay to foreigners. I imagine quite a few...so these numbers are probably much less than Sony would like for a NA release. Analysts rarely have really changed their tune about the PSP...remember they were gung ho about this only weeks ago.[/QUOTE]


you also gotta factor out all the PSP exchange, cuz of the dead pixel issue.

I exchanged 2 PSP at EB before I found 1 with no dead pixel.

and my brother exchanged once... at walmart....
 
I read and no I am not bashing but Gamespot I bleive mentioned it was 500,000 in the first 48 hours and only 100,000 in the next 5 days. That would actually be worse as the early adopters made most this impact and now its considerably less.
 
[quote name='Alpha2']A quick check in google shows most sites saying the DS sold over 500,000 in the first week of US sales.[/QUOTE]

If that is true, then I would say the PSP launch was more successful because the DS launched in prime buying season.
 
[quote name='chickenhawk']If that is true, then I would say the PSP launch was more successful because the DS launched in prime buying season.[/QUOTE]

Just a note: Sony had a much higher supply. You have to remember that you couldn't find a DS ANYWHERE until a few weeks after the new year. If Nintendo had a higher supply, they would've sold more. They didn't have the supply to match the demand.
 
[quote name='evilmax17']Just a note: Sony had a much higher supply. You have to remember that you couldn't find a DS ANYWHERE until a few weeks after the new year. If Nintendo had a higher supply, they would've sold more. They didn't have the supply to match the demand.[/QUOTE]

Well, who's fault is that though? Not too smart to limit supply around XMas time. Not Nintendo bashing, but that's not a very good business decision.
 
[quote name='chickenhawk']Well, who's fault is that though? Not too smart to limit supply around XMas time. Not Nintendo bashing, but that's not a very good business decision.[/QUOTE]

It's exactly the same thing that Sony did with the PSTwo around xmas. You couldn't find those anywhere either due to "problems" with supply. Tell me, was that a good business decision?

Personally, I think Sony should have made around 500,000 units available for the NA launch just so that it WOULD sell out and create more demand. The PS2 sold incredibly well b/c people knew there was going to be a shortage, hence all of the pre-orders and lines on launch day. I know I bought into the hype and waited at Wal-Mart for around 8 hours until the midnight launch to get a PS2. I was also able to buy just the PS2 - I didn't have to buy some BS "Value Pack." That being said, if a bundle had been the only option, I would have bought it since there would have been no other way to get the system.

If there had been a PSP shortage, whether intentional or not, I believe Sony would have been able to sell a hell of a lot more units in the long run. There would have been people who didn't get one at launch calling EB, GameStop, etc. each week to find out if they got new stock in. These people would buy a Value Pack in a second just to be able to get one in their hands.

As it stands now, people who are on the fence b/c of the price are just content to wait it out. They know that there are plenty of PSPs to be had at most major retailers so why not wait for a deal? In the meantime, you can still buy a lot of the PSP games for deep discounts using the EB trade-ins and similar deals.

By making sure they had enough units, I think Sony shot themselves in the foot.
 
This will most likely go down like this:

Nintendo fans will say Sony sucks!
Sony fans will say Nintendo sucks!

The truth is both portables will stay on the market, sell games, and co-exist just like every other system out now.

I own both systems. I love them both. Fight about which system or company is better. I will have fun playing my games.
 
[quote name='Alpha2']The number was based on profits not units taken off the shelf. The stores did not make money on returned units.[/QUOTE]

profits or total revenue from sales?
 
actually creating a shortage is smart to an extent. it causes consumer to snap up the product when found instead of waiting til next week or some other point in time to buy. they buy immediately thinking there will not be another chance anytime soon to get this product. i'm sure most ebayers will agree that shortages in the retail market are a good thing also.
 
[quote name='gaelan']profits or total revenue from sales?[/QUOTE]

[quote name='Gamespot']According to SCEA figures, PSP sales generated $150 million in sales in the week following its 12:01am North American launch on March 24. Divided by the unit's $249 price, the total means Sony sold just over 602,000 PSPs out of an initial batch of 1 million.[/quote]

I take this to mean ACTUAL money the stores took in form the sales of PSPs which would not be effected by replacment of systems unless you're a store manager who wants to spend months pouring over your records to make sure how much money you actually made this month.


Creating a shortage only works if you dont expect people to take their 250 bucks and go buy a competators product when they cant get yours. Sony didn't want to take the chance. When the PSTwo came out they were lucky because the XB was having a bit of a shortage too.
 
[quote name='gaelan']actually creating a shortage is smart to an extent. it causes consumer to snap up the product when found instead of waiting til next week or some other point in time to buy. they buy immediately thinking there will not be another chance anytime soon to get this product. i'm sure most ebayers will agree that shortages in the retail market are a good thing also.[/QUOTE]

Shortages are great for ebayers, no doubt about that. I don't necessarily think they are good for the Sony's and Nintendo's of the world though. If a $150 system goes for $300+ on ebay because there is a shortage, Sony doesn't see any of that extra money! Most people will buy it or they won't, they'll wait or they won't. If they can't get it at launch, they will wait a week. If they were on the fence, they are not likely to buy just because there was an intial shortage. Maybe some people will, but IMO, not many. These are systems that are going to be mass produced and most people know that (I would hope anyway....maybe they don't), not games that have small print runs or something that will never be available again.

And for the record, I also think Sony was dumb to limit the intial supply of PSTwo's.
 
http://news.com.com/Half+a+million+PSPs+sold+in+first+two+days/2100-1043_3-5659137.html?tag=cd.top

[quote name='CNET.com']Sony released the first North American sales numbers for the PlayStation Portable on Thursday, saying 500,000 units of the handheld game player were snapped up in its first two days on the market.[/QUOTE]

is it 500K or 602K? i know it might not be much difference, but i'm currently doing a marketing project on this and need accurate info. i guess i could just go with an approximate.
 
And for the record, I also think Sony was dumb to limit the intial supply of PSTwo's.
Click to expand...

This is assuming they honestly didnt have problems with manufacturing the systems which I believe they did when you think about how much time they probably took restructuring factories to produce the new units.

is it 500K or 602K? i know it might not be much difference, but i'm currently doing a marketing project on this and need accurate info. i guess i could just go with an approximate.
Click to expand...

I believe what they're saying is 500,000 the first 2 days and then another 102,000 by the end of the first week. It's a steap drop off but I'd attribute the first two days mostly to Pre-orders and eBayers with the rest of the week being more an example of walk in purchasers.
 
DS's are outselling PSP's nearly 3 to 1.

The sad part? Between the higher price and the lower cost of production, sony's making more profit. :(
 
[quote name='Alpha2']This is assuming they honestly didnt have problems with manufacturing the systems which I believe they did when you think about how much time they probably took restructuring factories to produce the new units.



I believe what they're saying is 500,000 the first 2 days and then another 102,000 by the end of the first week. It's a steap drop off but I'd attribute the first two days mostly to Pre-orders and eBayers with the rest of the week being more an example of walk in purchasers.[/QUOTE]


:?: The PSP launched on a thursday, the end of the week is sunday. In other words, in 4 days it sold 600,000+

Good for a sony product, fucking amazing considering that this is the time of year when it's traditionally harder to move things, as opposed to the Xmas rush.
 
Are you really so sure about the cost of production on the PSP compared to the DS? Sony's still loosing an assload on PSPs. It's always been their way to loos money on a launch to get it into hands.
 
[quote name='-Never4ever-']DS's are outselling PSP's nearly 3 to 1.

The sad part? Between the higher price and the lower cost of production, sony's making more profit. :([/QUOTE]

You are completely disconnected from reality if you think the PSP has a lower bill of materials than the DS. The PSP screen alone costs a good deal more than both DS screens combined. The UMD drive, which has no direct equivalent in the DS, is another significant expense. The semiconductor elements, just in sheer transistor counts, make for substantially greater sunk cost per unit on the PSP when compared to the DS chipset.

The difference in sales ratios is nowhere near 3:1, not even 2:1. The most recent figures from Japan (where weekly sales are more openly disclosed and both units have settled from launch hysteria) have the DS moving 55K units to the PSP's 43K units. However, the Year To Date figure has the PSP at 623K to 485K for the DS. As it stands, the bulk of the DS' advantage in installed base is still attributable to an earlier launch. The Ds will likely still be in the lead on units sold after each has had a year on the shelves but that is far from the whole story. The question remains which market will deliver the greater software sales and in turn actual net revenues.

Installed base is Goal #1 in establishing a platform but can only be carried so far. The PS2 is the global champ thanks to being so far ahead in sheer number of machines. If you take the sales number for Xbox software and scale it by bringing the Xbox installed base to within 70% of the PS2, the Xbox leaps ahead on software revenues. This is largely believed to be driven by the Xbox demogrpahic being older and more affluent than the majority of PS2 owners.

Now, only in a fantasy scenario is the Xbox installed base going to grow by that amount but it serves as a useful model on the PSP/DS competition. Indications thus far are that the PSP can stay within 70% or better of the DS installed base but be a more valuable target platform due to the demographics of who owns it. This market segment is untested and it isn't known if the growth can be sustained but there is only one way to find out.
 
[quote name='lebowsky']
As it stands now, people who are on the fence b/c of the price are just content to wait it out. They know that there are plenty of PSPs to be had at most major retailers so why not wait for a deal? In the meantime, you can still buy a lot of the PSP games for deep discounts using the EB trade-ins and similar deals.

[/QUOTE]

That's exactly how I feel. Why should I spend $250 on the value pack with stuff I don't need when I am in no rush to get the system especially since they are everywhere so even if I change my mind and want the system sooner, I can get it easily. I already have 3 PSP games from the EB deal and when they release a stand alone system or offer some kind of deal, I'll get the system. In the meantime, I still have my GBA and DS.
 
If the PSP had launched in say... October, they would all have flown off the shelves and you'd see people selling them on Ebay for $400-500, and people would be buying them for that price, because "Little Johnny's christmas will be ruined without a PSP!"
 
[quote name='evilmax17']Just a note: Sony had a much higher supply. You have to remember that you couldn't find a DS ANYWHERE until a few weeks after the new year. If Nintendo had a higher supply, they would've sold more. They didn't have the supply to match the demand.[/QUOTE]

I could have easily gotten a DS from CC, Wal-mart, Target, and probably even more places had I checked. I had even offered to get some for people that couldn't find any. Maybe people just weren't as obsessed with it where I live ? I really don't know. I almost picked one up for myself, but....I was short on cash.
 
Same here. If I went to the major electronics stores (EB, GameStop, Best Buy, etc), I would only see signs about how they had no DS systems and wouldn't have any for a while. But a trip to the local Wal-Mart revealed a nice pile of them. I was tempted to buy one or two and eBay them, but decided that I didn't want to rob some kid of his Christmas present.

Seems like the same deal with the PSP.
 
[quote name='epobirs']You are completely disconnected from reality if you think the PSP has a lower bill of materials than the DS. The PSP screen alone costs a good deal more than both DS screens combined. The UMD drive, which has no direct equivalent in the DS, is another significant expense. The semiconductor elements, just in sheer transistor counts, make for substantially greater sunk cost per unit on the PSP when compared to the DS chipset.

The difference in sales ratios is nowhere near 3:1, not even 2:1. The most recent figures from Japan (where weekly sales are more openly disclosed and both units have settled from launch hysteria) have the DS moving 55K units to the PSP's 43K units. However, the Year To Date figure has the PSP at 623K to 485K for the DS. As it stands, the bulk of the DS' advantage in installed base is still attributable to an earlier launch. The Ds will likely still be in the lead on units sold after each has had a year on the shelves but that is far from the whole story. The question remains which market will deliver the greater software sales and in turn actual net revenues.

Installed base is Goal #1 in establishing a platform but can only be carried so far. The PS2 is the global champ thanks to being so far ahead in sheer number of machines. If you take the sales number for Xbox software and scale it by bringing the Xbox installed base to within 70% of the PS2, the Xbox leaps ahead on software revenues. This is largely believed to be driven by the Xbox demogrpahic being older and more affluent than the majority of PS2 owners.

Now, only in a fantasy scenario is the Xbox installed base going to grow by that amount but it serves as a useful model on the PSP/DS competition. Indications thus far are that the PSP can stay within 70% or better of the DS installed base but be a more valuable target platform due to the demographics of who owns it. This market segment is untested and it isn't known if the growth can be sustained but there is only one way to find out.[/QUOTE]


Okay, so maybe I pulled that numbr out of my ass :) Never was good with numbers. Also I meant That there was a bigger percent profit, not that the PSP costed more than the DS. I was (and still am) under the impression that Sony always makes the most money out of it's systems because they're internally dveloped, where as MS and Nintendo have 3rd party contracts.
 
Everything I have ever read or heard about this sort of thing has said that Nintendo is the only company that strives to make a profit off the hardware (or at least they are the only ones that actually do make a profit that way). MS and Sony both rely on the software license business model for their profits.

In other words, I would suspect that the DS makes more money unit-for-unit when it comes to hardware vs the PSP.
 
[quote name='RedvsBlue']600,000 is not a failure. Sure its not a sellout but had they sold 1,000,000 units in the first week it would have broken all records. 600,000 is a hell of a lot of sales, especially considering that it wasn't during the preholiday season. Had the PSP only sold a couple hundred thousand then maybe we could call it a failure.[/QUOTE]

600,000 is a solid number, but far below Sony's expectations and forecasts. .... What Sony didn't reveal may be just as telling: How many of those 600,000 "sales" were nothing more than multiple PSP returns in search of pixel-perfect screens.
 
You must log in or register to reply here.
bread's done
Back
Top