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Weekly PS3 Shipments Coming |

Kaz talks in this videocast about upcoming weekly PS3 shipments. (Right near the end, at the 2:07 mark.) He says that Sony plans to have upward of 1 million PS3 in the North American market by the end of 2006.

Word has also recently come out that it costs Sony something like $840 per console to create. That means that Sony is eating about $250 per console. (Okay, so I rounded it slightly to make my next point. Stick with me.)

Nintendo plans to have about twice that number in North America, and they’re selling it for that same $250. (See the connection? I know, stick to my day job.) And they’re making a profit on each Wii they sell!

So my question is: will this be a problem for Sony? And I don’t specifically mean the Wii. I just mean the cost of the PS3, and the number being sold. Sony’s taking a loss on each PS3, and Sony isn’t gaining marketshare at the same rate as its competitors. Will this be a big problem for Sony? Can they overcome?

YouTube – PS3 more to come sony CEO

  • Tom

    In one respect, it isn’t too worrying- Sony were losing silly amounts of money on the PS2 too, but eventually clawed it back.

    HOWEVER. If Blu-ray doesn’t take off then every drive Sony make for the PS3 will be losing them money. The other components of the design should gradually drop in price (Microsoft are already making profit on the 360), but the Blu-ray is the key one.

  • Darrin

    The material cost of making additional units is small compared to the cost of developing this technology and setting up production. Sony has spent *billions* on development of the Cell processor alone. I don’t know how much they’ve spent on Blu-Ray and PS3 development but I’m sure it’s not cheap.

    People talk about unit cost because it’s easy to understand. When you buy a DVD drive or a CPU as a consumer, it typically costs X dollars per unit. For the manufacturer the pricing is more complex. It typically costs a lot to design + develop the technology and factory lines and then less money to keep the factory going and producing units. But they have to price the product to compensate for the initial development costs.

  • Michael

    Being that this is a ps3 fan site, I don’t want to bad mouth Sony, but as of now, while I still want a ps3….my opinion of Sony is that I really don’t like them right now. I’m sick of the lies. delays and I feel betrayed. So, the comment that Sony “plans” to have upward on 1 million ps3s doesn’t suprise me at all. It’s no really Sony’s fault for the ps3 delays and shortages but they really need to stop over promising. I mean, how many things have Kaz and Phil said in the past year that has happened the way they said it would? Sony is really testing its loyal fan base by the way they’ve treated us for quite some time now and i’ve had enough. Sony has alot of work to be to earn back my respect and trust. Will I still be buying a ps3 in a year when we can all actually walk into a store and get one, yes. Will the ps3 be an awesome entertainment system eventually, yes. But, from now on, i’m not believing it until it happens. My point being: Sony over promised on the launch numbers several times this year and once the ps3 finally came out several people are saying that they missed the 400 thousand U.S. mark, so why should any of us believe that there is going to be more than a million ps3s available by the end of the year??? I’m taking it with a grain of salt.

  • Darrin

    “several people are saying that they missed the 400 thousand U.S. mark”

    Several people said so? Michael, that’s just uninformed gossip. There haven’t been any public reliable reports on how many units were actually shipped at US launch so we really can’t say. But there definitely are lots of people who eagerly hunt out and fabricate bad news about the PS3 and repeat it over and over. You can’t let that stuff bother you.

    Sony has definitely missed deadlines and reduced shipment quantities, but they aren’t alone. The 360 had shipment problems and reliability problems during it’s launch, they completely missed their target of selling 10 million units by the PS3 launch, and most of their big holiday games have been delayed until 2007. Game developers in general are notorious for missing their release dates.

    Be patient, the PS3 will take a few more months to really gel: console availability will catch up, they’ll patch some of the problems, the online store will get update, and a really good variety of titles will ship. In the meantime, let the haters hate and relax.

  • Michael

    My apiogizes, Darrin. I wrote that when I was pretty upset. First and foremost, I’m just tired of waiting. I know that just about every console unfornately has a difficult launch and it in no way reflects the outcome, but like everyone else, I want one. lol. I wanted one 6 months ago when it was originally going to launch and I want one now that it finally has…not a year from now when there is enough to finally go around. You see, to me being a videogame fan is fun, but it’s all about waiting. Waiting for new consoles to be ready, waiting for bugs to be fixed and hearing about awesome games only to have to wait a year or more for them to come out. I’ve been ready for the next generation for a long time. I know that news reporters seek out bad news, but it’s usually got alot of truth to it. And even if there were enough ps3s to go around at launch, there was still the 720p down scale problem, which applies to me and several other people, and that is something that I can say should not have ever been a problem seeing as though high def is what they are pushing for. I just makes no sense to me that they wouldn’t have fixed that before it launched with all the testing that they do before hand.

  • The crazy thing about that problem is that you didn’t need to test it with those sets to realize it may be a problem. They have video at res A, it should scale to res B. “A” can be 480i, 480p, 720p, 1080i, or 1080p. And so can “B”. Why is that a problem? I don’t know.

    I am affected by this as well, though not as adversely as others. I’d like to be able to set my PS3 to use 1080i, but I can’t. I’d like to have had the option.

  • Michael

    Henning: Yeah, it’s stupid. I imagine that they could fix it. Otherwise, this will be a big problem, and I won’t be getting a ps3 solely because of it. This is said to only be a problem with “older” tvs. I bought my tv 2 years ago. And 1080p is just now being coming around. So, unless a whole lot of people were holding bave from buying a high def tv until the ps3 came out then this should affect alot of users. I would have been furious if I bought a ps3 on launch day and found out that all the 720p games were downscaled to 480p.

  • Darrin

    OK Michael, I added a new thread designed solely for venting. Please show your support and get it started.

  • Michael

    Thanks Darrin lol. This will help. In a couple of days i’ll be cool again and be a full fledged Sony fanboy.