Stringer: Consumers purchasing PS3s faster than we can produce them

[xtop]

http://www.ps3fanboy.com/2008/08/28/...can-produce-t/

In an interview with Die Welt, Sony CEO Howard Stringer tells the German newspaper he believes Sony captured the casual audience before Nintendo did. "We held the same target group with the Singstar karaoke game. But perhaps we neglected to pursue that avenue." He admits that PlayStation titles target hardcore gamers. "Playstation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3 ... Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them." Stringer also doesn't see Nintendo as a rival. "The Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality."

Stringer confesses that the $3,000,000,000 spent on the PS3, discounting R&D, will take a long while to recuperate. Though Sony is still losing money on hardware, the CEO informs us that the amount they are making with software is greater than the lost they suffer with hardware. Finally, he doesn't think they will be a price cut for the PS3 before Christmas.

With games like the recently announced Eyepet, it seems like Sony at least wants in on some of that casual gamer action that Nintendo has been getting. Another point to ponder is, should Sony reconsider their strategy of selling a system with such huge losses the next time around? Or will the PS3 make back all the money it lost in the beginning, just like the PS2?

uh oh..running out of ps3s soon? and lol @ wii comment. poor nintendo

[saprano]

Good for them.

nintendo has said it themselves that there not compeating for the same market as sony so no surprise there.

running out of ps3's? i guess thats a good thing.

[SkillzthatKillz]

interesting...i know it has been selling pretty well this year but this could mean a big holiday for both the PS division and blu-ray in general

[Blu Titan]

Great to see that the demand is so high.

[saprano]

Originally Posted by SkillzthatKillz

interesting...i know it has been selling pretty well this year but this could mean a big holiday for both the PS division and blu-ray in general

They should do a dark night bundle.

[Elandyll]

Too bad that Stringer also said some really dumb things in that interview, what a PR nightmare (The Ps3 won't make a buck in profit in my lifetime, The Wii has a better business model).

[saprano]

If thats how you feel.

just so you know the ps3 is already making profit. it made some this past quarter .

[xtop]

Originally Posted by Elandyll

Too bad that Stringer also said some really dumb things in that interview, what a PR nightmare (The Ps3 won't make a buck in profit in my lifetime, The Wii has a better business model).

the wii does have a better business model, its made money from day one. if he did say those 2 things, the ps3 never making a profit would be it

[xtop]

Originally Posted by saprano

If thats how you feel.

just so you know the ps3 is already making profit. it made some this past quarter .

no, the gaming divison turned a profit. as max has told us, the ps3 is still sold at a loss. and i'm sure thats what stringer is referring to

[saprano]

Yea thats what i ment the game division.

[Maximus]

Originally Posted by Blu Titan

Great to see that the demand is so high.

I would venture that it is the supply side causing the shortage...

[saprano]

And obviously the wii has been making profit from day one, its cheap to make.

im sorry if sony took a chance on ps3 they should have took the easy way out right?

[Luis_A51]

Its believable
Futureshop/bestbuy aside, its pretty comon to see stores sold out of PS3s here in Calgary, even Walmarts

Wiis on the other hand, are in stock everywhere these days.

Also, im positive there will be a price cut before christmas. But its obvious he HAS to deny it, or it would hurt current sales.

[Psx0005]

Originally Posted by Luis_A51

Its believable
Futureshop/bestbuy aside, its pretty comon to see stores sold out of PS3s here in Calgary, even Walmarts

Wiis on the other hand, are in stock everywhere these days.

Also, im positive there will be a price cut before christmas. But its obvious he HAS to deny it, or it would hurt current sales.

Have to agree on the stores being sold out, I see that on a regular basis with the Wal-Marts and Super Targets over here in Jax, FL. 'Cept for Best Buy of course

But it is nice to see the PS3's moving at a good pace at this point

[Elandyll]

Originally Posted by xtop

the wii does have a better business model, its made money from day one. if he did say those 2 things, the ps3 never making a profit would be it

If?
It's all across the news websites man.

http://www.shacknews.com/onearticle.x/54453

Sony CEO: Wii Business Model 'Superior,' Sony Won't Recoup PS3 Investment
by Blake Ellison Aug 28, 2008 2:09pm

Sony CEO Howard Stringer, pictured at left, confessed that the Wii "may be a superior business model" in a recent interview.

"The major difference lies in the fact that Nintendo makes money with the hardware alone," he explained to German newspaper Die Welt.

As for when Sony will recover the $3 billion it spent on the PlayStation 3, Stringer responded with a laugh, "Not for as long as I live."

He then turned serious. "It will certainly take some time. ... We are currently at the stage in which we need to get a grip on the production costs. That takes time," he said. The CEO stressed that the company is now making more money on PlayStation 3 games than it is losing on hardware sales.

Stringer also cast doubt on recent claims that the PlayStation 3 would see price cuts this year. "I think not," he stated when asked if the system would see a price cut before this Christmas.

Most news sites are now focusing on the "Not in my lifetime" part (which was probably meant in joke, but got lost in the "translation"), instead of his saying that they can barely meet the increased demand on the PS3.
Like I said, the guy is not necessarily wrong (about the Wii part, and talking about maximizing profits on a different demographic), but he is a f-in PR nightmare.
Wasn't he the one who already made a huge PR blunder on Blu Ray at the end of 2007? (saying that in retrospect they probably should have tried to find a solution with Toshiba)

[xtop]

i wasnt really doubting you, i just hadnt seen the whole article. but it does say he was laughing when he made the not in my lifetime comment.

[Elandyll]

Originally Posted by xtop

i wasnt really doubting you, i just hadnt seen the whole article. but it does say he was laughing when he made the not in my lifetime comment.

I won't even bother to link all the articles that mention this without specifying that he is laughing

[xtop]

Originally Posted by Elandyll

I won't even bother to link all the articles that mention this without specifying that he is laughing

oh. haha, well now i understand what you were trying to say

[saprano]

Originally Posted by Elandyll

Too bad that Stringer also said some really dumb things in that interview, what a PR nightmare (The Ps3 won't make a buck in profit in my lifetime, The Wii has a better business model).

Originally Posted by Elandyll

I won't even bother to link all the articles that mention this without specifying that he is laughing

I read your first comment wrong im sorry, i thought "you" were saying ps3 wont make enough in "your" lifetime.

but yea stringer always say something thats crazy and causes a comotion,websites are going to have fun with this........only to have him clearing up his statment a few weeks later about what he really ment, just like he did with that blu-ray comment you were talking about......oh the internet, a fun place isn't it?

[dialog_gvf]

Originally Posted by Elandyll

Too bad that Stringer also said some really dumb things in that interview, what a PR nightmare (The Ps3 won't make a buck in profit in my lifetime, The Wii has a better business model).

He didn't say that. He said that they can't make back the deficit selling hardware.

The sky is blue.

Gary