Despite Price Cut and New Model, Sony’s Stocks Still on Decline


So even after the news about a slim model coming in September and a price cut starting on Wednesday, Sony’s stocks are still sliding at a steady rate. Here are some of the details, from GamesIndustry.biz:

The stock closed down by 1.4 per cent today on the Tokyo Stock Exchange to sit at JPY 2445 (USD 26.02), declining yet further from its peak of over JPY 2770 (USD 29.48) on August 10 – a drop of around 12 per cent in total.

Investors took exception to the price cut announcement – despite the likelihood that the move will spur console sales for the company globally – with a 3.9 per cent fall in the price coming on Wednesday, the day after the press conference reveal in Cologne.

Is this bad news, though? Not exactly. Remember, the price cut, until the Slim model is released, is aimed toward any remaining stock to clear up shelves for the new model, thus they were already purchased from Sony by the retailers. Sony’s stock rates should climb within the next two weeks, especially with the demand of the Slim model being really high, and should be through, at least, the remainder of the year. Don’t forget all that overwhelming support Sony has received by many third party developers for the price cut, such as Ubisoft and EA. It takes a little time for things to turn around, but I’m sure once the Slim is in stores, the stock should climb.


Written by: Jay - Community Manager / Editor-In-Chief


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  1. #1 by Trieloth on August 21st, 2009 [ 3426 Points ]

    Something strange happened, my friends that are rabid xbots want a PS3 slim now. My friends are not the world but I am sure sales for sony will get better.

  2. #2 by bunnyhero on August 21st, 2009 [ 1850 Points ]

    and amazon is now warning of ps3 slim shortages as preorders go off the charts:

    http://www.gamasutra.com/php-bin/news_index.php?story=24932

  3. #3 by Darrin on August 21st, 2009

    Giant price cuts are great for consumers and marketshare, but generally bad (at least in the short term) for company revenue and profit.

    Secondly, games are a small part of Sony’s business, measuring by revenue and employees. Maybe about 15%. The consumer electronics division (HDTVs, cameras, computers, walkmans, etc) is a much larger part of Sony and has a much larger impact on stock price.

    The $299 Slim PS3 and PS3’s 2009 lineup of exclusive games is absolutely amazing from a consumer perspective. It blows anything Microsoft, Nintendo, or the rest of the industry is doing this year away.

    If I was betting on PS3’s game marketshare, I would definitely double down. But people buying stock are betting on Sony’s overall financial performance, and they should be far more concerned with the consumer electronics industry.

  4. #4 by Emrah on August 21st, 2009 [ 7319 Points ]

    The stock market is one big balloon of virtual values. They may go down for the hell of it. e.g. Nintendo says they profited, but 5% less compared to previous year, and their shares go down. It is insanity. Virtual values based on anticipation.

  5. #5 by SicSemperTyranis on August 21st, 2009 [ 6405 Points ]

    It’d not only the PS3 where Sony has issues but it’s their TV sales too. They are also losing market share with their HDTV’s. http://www.twice.com/article/328032-DisplaySearch_Samsung_Takes_Top_Q2_09_LCD_TV_Market_Share.php

  6. #6 by Fleakitten on August 21st, 2009

    Sony’s music division should be doing somewhat better nowadays.

  7. #7 by JimmyMagnum on August 21st, 2009 [ 83111 Points ]

    @SST:
    yeah, definitely. But that’s mainly because their TVs are so expensive. Samsung makes TVs of equal or greater quality at a lower price. Sony’s TVs just look aesthetically better, but Samsung’s panels have much better contrast levels than Sony’s. I loved my Sony TV though.

    But as far that goes, revenue should go up on the consumer electronics field because of football season (and the Superbowl sales in January) so with the PS3 slim potentially selling tons of units, and the big end/beginning of the year TV sales, they should make a decent profit in both the PlayStation brand and their other consumer electronics

  8. #8 by SicSemperTyranis on August 21st, 2009 [ 6405 Points ]

    After my last post I thought that I read that Sony was going to slash TV prices and possibly start a price war. I Googled it and here’s the link: http://www.smarthouse.com.au/TVs_And_Large_Display/Industry/T9R5R7S5

    It says it’s just a rumor but I hope it’s true. :-)

  9. #9 by Tosh on August 21st, 2009 [ 1102 Points ]

    SicSemperTyranis :

    After my last post I thought that I read that Sony was going to slash TV prices and possibly start a price war. I Googled it and here’s the link: http://www.smarthouse.com.au/TVs_And_Large_Display/Industry/T9R5R7S5

    It says it’s just a rumor but I hope it’s true. :-)

    mmm, very interesting ..

  10. #10 by JimmyStewart on August 22nd, 2009

    It is interesting. I would’ve assumed the opposite, but I guess that’s why I’m not a wall street shark!

    Just read on GameSpot that the 360 is outselling the PS3 in Japan. By almost 2:1. Maybe the announcement of the slim is killing sales in the short term. I know we saw a few stacks of PS3 with the new price at Best Buy yesterday, and I felt really bad should anyone buy them. They’d probably be kicking themselves in a little more than a week!

    http://www.gamespot.com/news/6215961.html?part=rss&tag=gs_news&subj=6215961

  11. #11 by JimmyStewart on August 22nd, 2009

    @Darrin “The $299 Slim PS3 and PS3’s 2009 lineup of exclusive games is absolutely amazing from a consumer perspective. It blows anything Microsoft, Nintendo, or the rest of the industry is doing this year away.”

    Whoa now. I was with you til I read all that. The slim is quite nice yes, for new purchasers. But the lineup of exclusive games from a consumer perspective??? Sure from a biased PS3Blogs perspective I’m sure they blow you guys away. As a consumer who owns all three consoles and doesn’t give a lick about who’s making the games… I currently have NO plans to buy anything on the PS3 this year. I have intentions on buying about 5 360 games so far and probably 2 for the Wii. Off hand I can’t think of a SINGLE title that would garner a cover story from a major gaming publication, a few that might but none that are guaranteed. From a “consumer perspective” I can’t even think of a COMBINATION of Sony exclusives that will rival Halo ODST. I’m not saying they’re bad games, only that surely Halo is going to garner the most attention this year (outside of multi-platform games like Modern Warfare 2). As a consumer, I’m not blown away by Sony in the slightest. And even starting out in the new year, the first PS3 game I can think of that I intend to buy in the near future is God of War 3 (a huge game for me) but that’ll probably be overshadowed by BioShock 2 and Mass Effect 2.

  12. #12 by SicSemperTyranis on August 22nd, 2009 [ 6405 Points ]

    Jimmy I’m just curious, what are the game you are interested in getting for the other two consoles? Because, outside of ODST there is nothing on the 360 that really interests me in the slightest. Not to sound like a raging fanboy but come on. You are telling me that a “major” gaming publication wouldn’t want to put GT5 or Uncharted 2 on their cover? Uncharted may be a niche title (know to only us gamers) but GT5 has a huge following. And getting back to ODST, $60 is a lot for what is basically an expansion pack, but that’s for a different post in a different place.

  13. #13 by Darrin on August 22nd, 2009 [ 17143 Points ]

    Jimmy…

    360 did outsell PS3 in Japan… for this week. But come on… that is a very rare event. Every other week for the past several months the PS3 consistently outsells 360 in Japan by MC figures (I just verified this on garaph.info).

    Taste in games in obviously subjective… You said I’m biased and I probably am to some degree, but you are as well, especially if none of the previewed PS3 exclusives except possibly GoW interest you… I still enjoy hearing your perspective though.


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