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Businesses PlayStation (Games) The Almighty Buck Entertainment Games

Sony Hit by Drop in PS2 Sales 66

Posted by CowboyNeal from the waning-popularity dept.
sdw3u writes "Falling sales of PlayStations contribute to a 23% drop in profits at the Japanese tech giant, while rival firms see profits surge." Perhaps it may be time for Sony to lower prices again, which has helped fuel another console's sales. They've also reported a 40% drop in game sales to accompany the drop in console sales. According to the article, they don't see things changing for the better anytime soon, though, and are now focusing on development of their PSP handheld system. Update: 04/27 16:08 GMT by S : A GameGossip news story has more info from Sony's conference call, noting "Sony cited expected lowered production shipments for both PlayStation 2 (from 20 million to 14 million) and PSOne (from 3 million to 1 million)... total software shipments this year (including PS2 and PSOne together) were at 254 million, ahead of its 250 million estimates."
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Sony Hit by Drop in PS2 Sales More

Sony Hit by Drop in PS2 Sales

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  • Perhaps it is time for a drop in prices (Score:4, Insightful)

    by evil-osm ( 203438 ) on Tuesday April 27, 2004 @10:46AM (#8984741)
    However they also have to expect that there are only so many sales out there. I mean how many PS2's does a family need? It was bound to happen. PC sales also saw a drop a few years back, no real surprise.

    • Re:Perhaps it is time for a drop in prices (Score:5, Interesting)

      by snooo53 ( 663796 ) on Tuesday April 27, 2004 @11:17AM (#8985171) Journal
      No doubt. Every console has it's price point to reach different types of consumers. The way I see it for the PS2 you've got

      *Early Adopters who will pay $300+
      *Gaming Enthusiasts who will pay $200
      *Most everyone else $150
      *Cheap Bastards (like me) $25

      Coincidentally I consider myself a proud member of the last category since that's what I paid for my dreamcast. As soon as the PS2 gets into the sub $50 range I'll probably go out and get one. Advantages: I know I've got a great system for cheap. I can pick and choose the best games for cheap since they've all been reviewed and all dropped in price. Disadv: I'm 2 years behind.

      For systems like the XBox and Gamecube, they just had their price points shifted down slightly. The Gaming Enthusiasts weren't ready to shell out more than $150. As soon as they reached that point, sales surged. So while interesting, this seems like basic Demand-side economics.
    • There is always the mean time between failures.

      I have a couple friends who are on their 2nd or 3rd PS2's because of failures.

    • Re:Perhaps it is time for a drop in prices (Score:4, Insightful)

      by MMaestro ( 585010 ) on Tuesday April 27, 2004 @12:08PM (#8985868)
      It was bound to happen.

      Agreed, its called market saturation. Sony has shipped something like 20 million units they're bragging about right? Well can the market take 20 million units and then be expected to buy a couple million more with the PS3 expected in a year or two? (At the least, some info during E3). The GC and Xbox were shunned pretty much for the first year so people who ignored it then are probably making the jump now (esp. with its low price). Why replace a broken PS2 when you can buy a new system and try out different games?

    • Re:Perhaps it is time for a drop in prices (Score:4, Interesting)

      by Merkuri22 ( 708225 ) <merkuri@@@gmail...com> on Tuesday April 27, 2004 @12:12PM (#8985933)
      Well, this gamer, while not waiting with baited breath for prices to drop (I'm getting along just fine for now with my PC games), will actually consider buying a PS2 if the price goes down. The PS2 has always been the console I knew I would buy if I were going to buy one, but it's always been just too expensive. Now while I won't wait for it to go all the way down to $25 (like a sibling post mentioned), the chances of me buying one will increase greatly if it falls below the $150 range. So there's at least one more potential PS2 waiting to be sold. ;)

  • PS2 exclusive games... (Score:5, Insightful)

    by UberChuckie ( 529086 ) on Tuesday April 27, 2004 @10:51AM (#8984817) Homepage
    Grand Turismo 4 and Grand Theft Auto: San Andreas are going to be released this year as PS2 exclusive games. I don't think Sony is worried at all. The only reason I bought the PS2 is to play Grand Turismo 3.
    • That's true that their software sales probably won't be hurt much by the drop in console sales (with that many millions of consoles and hungry gamers already out there). However, I think that big exclusive game releases will only pick up the console sales temporarily.
  • How about PS2 *games*?

    There are two ways to sell games: Increase the userbase (which always has an upper limit) and increase the user consumption rate (which also has a realistic upper limit, free time and free cash).
    • You people don't read the write-up do you? It says right there that game sales have dropped 40%.
      • Sorry, I thought my point was clear:

        Compelling content == sales
        Lack of compelling content != sales

        Game sales have dropped 40%, fine. Is it the reduction in PS2 sales? Or is it a reduction in compelling content?

        In a similar vein: If there are no good movies in the theater, I don't see movies. Is it the lack of movie theaters? Or the lack of compelling content?
        • It's probably the drop in PS2 sales. The way it works is that the sale of a console tends to spur a relatively large number of game purchases. What I mean is that when a new console is bought, people will tend to buy 3 or more games with it, plus controllers and memory cards and whatever else. They'll also buy more games than average for the first few months or so. After this though, most people buy at a rate of a game a month or less.

          That's why number of systems sold is a good indicator of the number of g

  • MS has the advantage (Score:4, Interesting)

    by Mr.Dippy ( 613292 ) on Tuesday April 27, 2004 @11:01AM (#8984945)
    What sony needs to do is drop the price down to 160 bucks and include the hard drive and network adapter with the shiny new Final Fantasy 11. Lets see Xbox compete with its Halo bundle then?
  • Olson twins shocked at poor sales of their PS2 game "Manic Mayham Mall". Sony blames Olson twins, Olson Twins blame Acclaim. Acclaim blames "Ralf" Acclaims the cuddly mascot, for peeing on the original game specs.

    Sony: "Olson twins Bad!"
    Olson Twins: "Acclaim Bad!"
    Acclaim: "Ralf Bad!"

    Bet this is exactly how it all happened.
  • But I've played all three, and I can certainly understand why they're dropping. You just don't get the bang for your buck that you get with the XBox (better hardware, better controller, better price, etc) or the exclusive titles that you get with the Gamecube. Nintendo's learned through harsh reality that you have to stay nimble in this business, Microsoft has never forgotten that, and it now looks like Sony's in need of a reminder of this truism. They've been resting on their butts and now it looks like
    • Better controller? Are you mad sir? The XBox controller is bigger than my nut sack! And I know your going to say "well what about the mini S Controller". I'm still not impressed with it. It has a bad button layout and my hands always cramp when playing it. Give me a ps2 controller anyday.
      • Different strokes, I guess. Yeah, the original XBox controller was an abomination, but the S-Type is by far the best console controller IMO. Nintendo's isn't bad, but Sony's just feels like flimsy, cheaply put together crap. To be fair, I don't mind some of the 3rd party Sony controllers that basically share the same form factor but are better put together. Official Sony controllers suck badly, though as far as I'm concerned.
        • With my small hands, I prefer the GCN controller. The larger Xbox pad feels like it's giving me Carpal Tunnel Syndrome, and the smaller one cramps my fingers. The PS2 is an okay pad, but it's very cheap (my brother has gone through about 4 of them in 3 years) and I have issue with the 4 shoulder buttons. It just doesn't seem right.
          • For what it's worth, (not much),
            I find the PS2's thumbsticks to be the in the crappiest and crampiest possible place, and the DualShock2's "let's make every button 'analog' so you're never quite sure if it's fully pressed or not" to be the least well conceived idea in controllers since the Amiga joyboard,
            the GC is comfortable but a bit flimsy,
            and the Xbox S-type is pretty much the ideal balance of sturdiness and comfort. With long cords to boot.

            Wavebird is pretty nifty as well but I miss the rumble in a fe
            • I agree that the PS2 controller feels right and is designed with a simple and Usable button layout. IMO its the best controller you can get for any console...
              However, i've replaced my controller 3 times, it just can't handle the stress of being thrown at the wall for the umpteenth time because i've done the same scene in Stuntman more times than i can count.
              to play games, give me a PS2 controller, for a stress test, i'll take the X-Box Controller, and the GC Controller is pretty sturdy in itself, but the
              • take it from a Gamer thats been Gaming since the Atari 2600(a lifetime of gaming as i'm only 23)
                Take it from a gamer who has JoustPong [alienbill.com]written a published homebrew game for the Atari 2600....the PS2 controller sucks.

                I mean, it is a subjective opinion. Apparently some people like the thumbsticks' position, but other people think it SUCKS. I always thought the shoulder buttons were too difficult to insitinctively tell apart as well.

                I find GC and Xbox as totally ergonomic. And the dualshock always seemed
                • thats true, the Thumbstick positions where an afterthought, but IMO if they had redesigned the controller entirely then i know i would have complained, i like the way everything is designed around the SNES controller.

                  besides, the Thumbsticks aern't in that bad of a Position, but then again i have long fingers so maybe its just me

                • It's widly held that the PS2 controllers are the bst of the 3 systems because fo their small form factor, anologue sticks excepted. They were additions to the original design. Even so they are fairly decent.
            • Might as well chime in with my opinion...

              The PS2 controller is my least favorite. It feels flimsy to me. Like a cheap plastic toy. The Xbox S-Controller is nice. But the black and white buttons on the bottom right are difficult for me to reach. I often confuse them with the four color buttons. The GC controller is my favorite. The different sized buttons make it extremely easy for my to feel my way to the right buttion. I also feel it is the most responsive out of the three. I wouldn't chage one t
    • I own all three consoles and bought all of them on their Launch date, i find that the PS2 has given me 2-3 times the Bag for my buck than both the X-Box and GC combined

      and most of that is thanks to 3 of the hundreds of games out there (Gran Turismo 3, GTA:3, GTA: Vice City). but even now, i usually rent 2 games/week and they're usually PS2 games because i've simply played everything on X-Box or GC that looked interesting. though, i Am looking forward to Fable, that might hold me over until GT4 and GTA:

  • Market Saturation (Score:2, Insightful)

    by jbfaninmo ( 540470 )
    Haven't they sold like 50 million of the things? Is it possible that sales are dropping off because there isn't all that many people who don't have one that want one? And considering that they don't make money off of used console sales, it's not hard to believe that profits are starting to drop off.

    Sony needs to watch itself, and not pull a Nintendo. Nintendo was on top and then got stomped by the new guy, Sony. Sony's got the oldest console at the highest price. They need to avoid becoming arrogant.

  • My thoughts (Score:4, Insightful)

    by josh glaser ( 748297 ) on Tuesday April 27, 2004 @05:38PM (#8990559)
    First, Sony really needs to lower the price. Soon. The PS2 is the least powerful of all the three major consoles (it's more than beginning to show it's age) and yet it's the most expensive. This year is a big year for the PS2, with many high-profile games. I think they should drop the price to at least $149 ($129 would be better, but Sony knows they just need to match the Xbox, so...). Second, Sony should build a PSTwo. You know, a smaller, cheaper version. They should price it at $99 (generous for Sony, but here's hoping...that's also the "impulse buy" price point, and if they price it there, some PS2 owners will pick one up) and release it around Christmas. Finally, they should hurry up with the PS3. Some will disagree, to be sure, but as I said before, the GC and XB are really showing their advantages, late in the game, but age is only emphasizing the PS2s flaws.

  • PS2 Customer since Rollout (Score:5, Interesting)

    by demo9orgon ( 156675 ) on Tuesday April 27, 2004 @07:46PM (#8991814) Homepage
    Playstation2 isn't worth $200 any more. I like the system, but over time I've experienced life with a planned-obsolecense hardware model which is intentionally made to keep owners touching base with the company. Am I paranoid, sure a little, but when you clean the dust out of your game console (a fan is a dust magnet)and suddenly the DVD/CD-ROM doesn't work any more and nothing will correct it you end up paying $75 and getting it "serviced".

    Anyone else have this experience? I think there's legions of "Serviced" Playstation2 owners who have been 0wn3d by that crappy DVD/CD-Rom drive but nobody is publishing numbers.

    I think the GameCube has much greater value, even though the controller is crap (SSX3--the "Y" button is a nightmare), the hardware is better and the software is worth the $$$. I wish someone would develop a Playstation2 style controller for the Gamecube. That would be a money-maker. Think I'll go check Lik-Sang.

    I've rented and beaten 90% of the games I've played on the Playstation2, other than that I have a meager library of PS1 titles and used Playstation2 games. I have only two games I've ever purchased for the Playstation2 at "new" price levels.

    My console has been in the shop twice (once every 18 mo.) and when it came back last time the controllers no longer recieve a "vibration" signal, so there's something wrong inside of it. Didn't find this out until I was out of warranty again. This recently influenced my purchase of SSX3 for the 'Cube instead of my Playstion2. My inability to purchase a "single" multi-tap and play both PS1 and Playstation2 games was another sour note. Nothing like being gouged. Customers don't appreciate $40 purchases for hardware which shouldn't be seperate. The ability to play 4 player games without being boned also influenced my purchase of "Double-Dash"...I would have rather played "Crash Team Racing" for the Playstation1 on my Playstation2--what happened to CTR for the Playstation2 is an abomination and I feel for anyone that purchased "Nitro-Cart".

    Before I pay $200 or more for another game console it's going to be more than just a DRM device, it had better talk across the 'net without requiring a bolt-on card, use a memory card bigger than 8mb (what a freakin' joke!!! Nyko makes a 64mb memory card for the 'Cube!!!), have some kind of secondary storage (memory stick or HD), do PVR duties, and use a DVD/CD-ROM which is top-loading (THIS CANNOT BE STRESSED ENOUGH!) like the Playstation1 or the 'Cube, or be something which can be easily swapped out for something that works. The DVD/CD-Rom for the Playstation2 is a showstopper--it sucks sucks sucks.

    If Sony can fix these issues, I'll be interested.
    If they can't, screw-em. I'll wait several years and buy one for $50.
    And The X-Box isn't an option.
    Why? I refuse to do business with a blatantly criminal, "Daddy Warbucks", development-house buying company.
    They have a warchest of billion$, other people can feed the monopoly monster.

    • use a DVD/CD-ROM which is top-loading (THIS CANNOT BE STRESSED ENOUGH!) like the Playstation1 or the 'Cube,

      They can't please everybody all the time. People who put their game consoles on a rack with their other stereo equipment much prefer drawer loading CD/DVD drives.

      • Are you an owner of a Playstation2? And if so, how long and which model? (I'll eventually get another one, just wondering if they fixed things)

        Less than a year after getting it, every time the CD/DVD drawer opened and closed it has made noises that startle the cats. Creaking, clicking, clacking on eject, and the same on return. Getting it serviced and complaining about said noises and even making notes to the techs didn't make a difference. It plays media, but it's horrid sounding. Oddly enough the Playsta
        • Are you an owner of a Playstation2? And if so, how long and which model? (I'll eventually get another one, just wondering if they fixed things)

          I own a PS2. I bought it Summer 2002. I have no idea which model it is. Hasn't given me a single problem with the drive yet.

          In addition, the VAST MAJORITY of consumer CD and DVD players are front loading. As are *ALL* drives that fit into computer systems. As are nearly all drives that fit in cars. Just because you got a dud isn't a reason to say that all front load

          • BREVITOUS SUMMARY:
            Yes, you're right. CD/DVD ROMS are better now than they were four years ago, and cheaper, and ubiquitous. I paid about $120 for a DVD/VHS player a while back, and it hasn't given me any problems, but then I've only used it about 25 times. We don't play DVD's like we do video games. If you have kids, there's no comparison between what they do and what an adult will do. If the unit can fail, it will.

            LONG WINDED VERBOSE/SHARING MODE:
            My gripe is that I would dearly love to be able to get a ne
    • Why? I refuse to do business with a blatantly criminal, "Daddy Warbucks", development-house buying company.
      They have a warchest of billion$, other people can feed the monopoly monster.

      I hate to break it to you, but that pretty much exactly describes all three current console manufacturers. The best you can argue is perhaps you chose a slightly less evil company, but that all seems pretty relative to me. You want a game console nowadays, you have to deal with a pretty unethical corporation directly.

  • PS2 losing ground... (Score:2, Insightful)

    by Anonymous Coward
    I work at a GameCrazy in suburban Chicago, and I think that one of the more major reasons for this drop in sales is the Xbox. Shoddy quality hurts them too...

    Since the XB price drop and Halo Xbox, that's all we sell. For the last 2 weeks we have only sold 2 PS2 units, and we have had multiple people come in to trade in their PS2 and game collection for an Xbox. I have personally handled about 10 of these type of customers in the past 2 weeks, a quite unprecedented amount of switchers. For some reason,
  • I'm a little confused on the details (one million PSOne's or one million dollars of PSone sales?), but either number is amazing for a market that I can't imagine consists of anything more than spendthrift aunts and grandparents buying presents that amount to little else than a disappointment. That's a heck of a lot of back closet electronics. Personally, I'd be more interested in whatever it was they were smoking that got them to believe a three million dollar or unit projection, but that's just me.
  • The PS2 is getting a little long in the tooth, and it shows in the visual quality of the games and some of the system's "limits." Four megabytes of dedicated video RAM was never enough, people with a Dreamcast know that those old Dreamcast games look better than anything on the PS2 because it was able to display gorgeous textures that the PS2 cannot. Xbox and Gamecube blow away the PS2 when it comes to visuals. Lack of a built in hard disk and ethernet adapter put it at a serious disadvantage against the Xb

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