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Sony unlikely to ever break even on PS3, says DFC

Thursday, 30th October 2008 15:48 GMT By Patrick Garratt

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A DFC intelligence report has claimed that Sony is unlikely to ever break even on PS3, arguing thatm “Sony has the most to lose with this current generation.”

In addition, while Sony owned 67 percent of the market at the height of the PS2 era, the research firm expects that it will only maintain between 40 to 50 percent of the market by the end of the current generation.

It’s all gone wrong. More on Gamasutra.

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9 Comments

  1. Blerk

    I’ll be amazed if they make 40%.

    #1 6 years ago
  2. patlike

    I’m not counting them out until I see the effect of a price cut.

    #2 6 years ago
  3. TristanMike

    @ Blerk

    Me too.

    #3 6 years ago
  4. Blerk

    Nintendo’s basically blitzed it. They’ll be this gen’s 67%. Sony and Microsoft are just fighting over scraps, and I really can’t see that changing.

    #4 6 years ago
  5. MesserWolf

    Never break even in a sector (videgames) whose sales are exploding even during the crisis ? I don’t think so .

    #5 6 years ago
  6. pjmaybe

    if this is real then can anyone guess why Sony will never break even? I mean if there’s even a whiff of truth in those controllers being considered I’ll laugh like a drain.

    #6 6 years ago
  7. Esha

    It’s unfair to compare the PS2 to the PS3 aswell, that gives a very slanted view without actually taking into consideration the factors of the environment which allowed the PS2 to thrive. The fact that they didn’t raise this point seems unprofessional at best.

    In case my point goes unnoticed, what I’m getting at here was that throughout most of the PS2′s life, it never really had a solid competitor. Let’s take a look at the obsoleted and the pretenders…

    Dreamcast: This was a niche console even originally, it had a stable of brilliant games (including the likes of Skies of Arcadia and Ecco, both of which I loved so very dearly) but it wasn’t mainstream. The PS2 stole snapped up some of the Dreamcast’s more popular titles and used those as launch titles, thus propelling it far beyond the poor DC.

    GameCube: This console I generally herald as the Dreamcast 2.0. The stable of games wasn’t quite so good, because it was mostly saturated with somewhat dull and uninteresting first-party Ninty stuff, but it really did have its moments and the occasional great game here and there (such as The Thousand Year Door). Again, a niche console that didn’t really appeal to the mainstream.

    XBox (original): Microsoft’s console came in a bit too late, when the popularity of the PS2 was in its zenith, it couldn’t really make much of a dent, even though it did make more of an impression than the two above. However, MS was new on the scene and Sony was a known and trusted name, this and a couple of marketing cockups (anyone remember the doctored images of what the console’s games would look like, but didn’t?) left some cold to the machine. It began to pick up steam later, but only when the PS2 was on its way out and the 360 was on the horizon.

    This considered, the PS2 pretty much had a monopoly of sorts for almost all the time it existed, the release of the console was timed perfectly and it took advantage of that throughout its life. The PS3 however was not so lucky with timing, not by a long shot. And the XBox 360 had established itself as a competent alternative by the time that the PS3 turned up on the scene.

    This meant that Sony had a solidly entrenched rival to battle against for their market share. So of bloody course the market share is going to be lower this time, and it has less to do with Ninty than some might think (as the audiences that the Wii, and opposedly the PS3/360 draw in seem to be quite different).

    What’ll be interesting to see is when the 360 starts showing its age, developers finally stop sitting on their hands and bother figuring out the PS3′s hardware (thus creating titles which will really show off the PS3′s hardware superiority), and when the PS3 has had a price-drop. Combine all of these elements at just the right moment and we might end up seeing a somewhat dramatic turnaround.

    It could be that Sony are just good at planning in the long term. Or it could be the more seemingly likely option that they ballsed up this time (but I still like ‘em, even if few others do). Only time will tell, I s’pose.

    #7 6 years ago
  8. David

    TLDR

    #8 6 years ago
  9. Nugent

    I don’t see how capturing even 40% of the market is a bad thing. I don’t think anybody believes that the PS3 will match the success of the PS2, so the fact that their market share is dropping shouldn’t surprise anyone.

    Sony has shown with the PS1 and PS2 that they’re pretty good at shrinking the size and cost of their consoles. I don’t see them taking a production loss on every unit for the lifetime of the PS3, as the article on Gamasutra implies.

    #9 6 years ago

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