Record Revenues for Playstation Brand, PSP "Quickly Closing the Gap"

[bapenguin]

GamesIndustry.biz (http://www.gamesindustry.biz/content_page.php?aid=22952) is reporting that Sony had record revenue for the month of January with the Playstation Brand thanks to stronger than expected sales.NPD sales data for January puts the total of PlayStation 3 consoles at 243,554 in North America, helping the PlayStation business record revenues US $550 million (EUR 419m) during the five weeks of the month.

"We are pleased with the numbers from January as they demonstrate overall sales improvements for our legacy systems year over year and continued momentum for PS3," said David Karraker, director of corporate communications for SCEA.

According to Sony, tie-ratios for the PS3 have improved by 80 per cent since launch. The company has also finally kick started its marketing campaigns with leading US retailers BestBuy and Target.

It's good to see Sony trying to take things in stride and look at the positive with all the negative lately. It's also good to see the tie-in ratios up, letting you know people aren't just buying systems to immediately sell on EBay anymore, but rather, you know...play them.

Of course with those record revenues are going to come significant losses, especially if the majority of those numbers are coming from the Playstation 3. It's been previously reported that Sony takes between a $250-$300 loss per system.

And finally, it wouldn't be a Sony news post without some delusional comment from a Sony Employee. This time David Karraker, Director of Corporate Communications for SCEA, has this gem to say regarding the PSP vs. DS:"PSP sales in January were exceptionally strong with the system quickly closing the gap on the leading competitor," said Karraker.

Quickly closing the gap? I got news for you Davey boy, your system is being outsold 3:1 if not more by the Nintendo DS in every territory. The only thing you should be closing is your mouth. OH SNAP!

[DangerousDaze]

Yeah, even I laughed when I saw the "closing the gap" comment. ;)

[Kamalot]

Come on! PSP is doing great. The system is more expensive, has less of a library of 'killer' games than the competition and it is still selling about 1/3 of the competition. That sounds like total success to me, or at least the same kind of success the Fanboys are claiming about the PS3.

[Aretak]

What the article doesn't say is that while they may have had record revenues across the PlayStation brand, the PS3 was still outsold by the 360 to the tune of 50,000 units, and nearly 2:1 by the Wii.

[Gorvi]

Closing the gap? The only way that makes sense is if he means the gap in monthly sales becoming smaller.

[Vandenh]

http://www.ukresistance.co.uk/pics4/kensexclusivityargument.jpg

Anyway seriously... the PSP and PS2 numbers are pretty good and will bring in money. The closing the gap thing was just silly. I am sure he meant closing the gap between 3-1 sales ratios and not closing the gap between total numbers sold (since you cannot close a gap by selling less).

[Mr.Green]

Kamalot has gone pink. I'm green with envy.

[bapenguin]

Closing the gap? The only way that makes sense is if he means the gap in monthly sales becoming smaller.

The thing is...he didn't even say closing the gap. He said, quickly closing the gap. Two completely different statements.

[Gorvi]

The thing is...he didn't even say closing the gap. He said, quickly closing the gap. Two completely different statements.

Of course he's going to word it that way, it's not exactly great PR if he says they're barely closing the gap, or very slowly closing the gap. He's doing his job. Come on, Bap, I know you know better than that.

[AversionFX]

Silly Sony and their delusions. Bravo for the PS3 selling so many units, I guess.

I honestly don't know how anyone can say "Yay! We sold a lot of product!" When you're still losing money on every sale. How is that possibly a feasible business strategy!?

[DangerousDaze]

Kamalot has gone pink. I'm green with envy.
I especially like his user title. Mine was given to me by an ardent Kamalot supporter so it's kind of a circular reference thing. :)

[DangerousDaze]

I honestly don't know how anyone can say "Yay! We sold a lot of product!" When you're still losing money on every sale. How is that possibly a feasible business strategy!?
It's standard practice when you break new ground.

/edit - oops, double post!

[KidCactus]

I honestly don't know how anyone can say "Yay! We sold a lot of product!" When you're still losing money on every sale. How is that possibly a feasible business strategy!?
More systems sold -> larger install base -> more games sold -> more money.

[bapenguin]

Of course he's going to word it that way, it's not exactly great PR if he says they're barely closing the gap, or very slowly closing the gap. He's doing his job. Come on, Bap, I know you know better than that.

A smart PR man would have said, "We are closing the gap" thereby leaving it up to interpretation. Of course I know he wouldn't use a negative connotation with it, but he could have used none at all.

[DangerousDaze]

A truly smart PR man would have just focused on strong sales and not made any comparison to what can only be described as a monster seller. ;)

[NoName]

Quickly closing the gap? I got news for you Davey boy, your system is being outsold 3:1 if not more by the Nintendo DS in every territory. The only thing you should be closing is your mouth. OH SNAP!
Hehehe, awesome. I hope you're with EA for a long long time Bap. Wait... shouldn't that comment be in italics? ;)

[roboninja]

He must mean closing the gap on the Sega Game Gear. Sony will destroy Sega yet!

[KidCactus]

If you just look at the sales for December and January I guess you could say it's closing the gap of monthly sales quite fast (from a 700,000 units gap to 30,000), but I hardly think that will be how the rest of the year will look like.

[Reanimated]

Spin it, sony. 3rd place is the place to be, right?

[jbavon]

Well, there are more territories than just Japan and USA, so perhaps it is possible, that the PSP is selling more than the DS in, for example, Europe. I don't think this is unlikely at all.

Does anyone actually have numbers on European sales figures? And what about the rest of Asia, Australia, Canada?

[RorschachCCCLX]

Ok, I had a dude come into the store last night and when he heard we had PS3s , the guy, who works at sonic drive thru, nearly threw his debit card at us and begged for the PS3 "I have a 360 at home that I hate, I only got it because I couldn't get a PS3". I asked him why he hated the 360 and he said "I'm a playstation man."

and that my dear friends, is why Sony will win this generation.

(and before anyone tries to say "well thats just one guy," its something I've seen repeated over and over. Sony brand= the best. we expect that guy to come in today to trade in his 360 for PS3 games....all two of them that are worth buying..)

[EternalGamer]

It's been clear to me for sometime that Sony's PR is not designed for gamers, but for stockholders and potential stock holders. This is ultimately true for all three companies, but even more so for Sony.

[Yeti2005]

This is good news for Sony. Why didn't the announce their tie in rate for the PS3 instead of saying "improved by 80 per cent since launch"? MS loves to say we have a 3 or 4 to 1 tie in ratio. The 80% improvement doesn't tell you jack.

[DangerousDaze]

we expect that guy to come in today to trade in his 360 for PS3 games....all two of them that are worth buying..)
Hmm. What's the other one? ;)

[Borys]

Spin it, sony. 3rd place is the place to be, right?

Heh, good one, too bad few people will get it.

I did not see you around lately. Kamalot's been doing your job mighty fine, though.

[lockwoodx]

Sony Rep: We've ganted the other companies the privlage of being the number 1 and 2 sellers in the market so they can experience how wonderful it feels.

Now refer to my signature.

[Magnanimous Gnome]

I'm experiencing deja vu. :p


While I don't care for the PSP and wouldn't mind seeing it drop out of the market entirely (not likely to happen), I do want the PS3 to do well. I don't want to see MS taking the market. I don't really want to see Nintendo take the market either. A market more evenly split between the three would be nice.

[Evil Avnovice]

I'm real curious if I could use this, whether it's related to the news item or not....

Penny Arcade (http://www.penny-arcade.com/comic/2007/02/10)

[Jart]

Well, there are more territories than just Japan and USA, so perhaps it is possible, that the PSP is selling more than the DS in, for example, Europe. I don't think this is unlikely at all.

Does anyone actually have numbers on European sales figures? And what about the rest of Asia, Australia, Canada?

Specific markets can be seen here through september 2006.

http://www.vgcharts.org/worldcons.php

This data does not include end of year sales numbers, where the PSP was up 280% during the Christmas season, and Sony is reporting that the upswing has continued through to January. I think when sales are increasing by that order of magnitude they have a little bit of room to say they are closing the gap. Remember, facts are your friend!

[LostToys]

NPD numbers for January:

NDS: 239,000 units
PSP: 211,000 units

Not 3:1.

[KingGorilla]

Here is a problem...the DS should be absolutely murdering the PSP, the PSP should have gone the way of the GameGear and the Ngage. But it is close, and Sony cannot be unhappy with the proliferation of PSP. Nintendo is the 900 pound gorilla in the handheld market.

[Kamalot]

Here is a problem...the DS should be absolutely murdering the PSP, the PSP should have gone the way of the GameGear and the Ngage. But it is close, and Sony cannot be unhappy with the proliferation of PSP. Nintendo is the 900 pound gorilla in the handheld market.
Like I said. Complete success, just like the Saturn, GameCube.

[TheEpicOfTyler]

NPD numbers for January:

NDS: 239,000 units
PSP: 211,000 units

Not 3:1.

It's a pity no one will see this.

[J Arcane]

NPD numbers for January:

NDS: 239,000 units
PSP: 211,000 units

Not 3:1.
THank you LT. I was going to point this out.

Of course as Tyler points out, the fanboys will ignore it entirely, as they always do.

[Johan]

It's been clear to me for sometime that Sony's PR is not designed for gamers, but for stockholders and potential stock holders. This is ultimately true for all three companies, but even more so for Sony.

I think that's a great observation....and explains why some of what comes out of Sony sounds so absolutely idiotic to the gamers/consumers purchasing their products, but probably sounds comforting/reassuring to stockholders and the market.

They still win the prize for most ludicrous statements made to this point of this generation. It's surely a sight/sound to behold...

[Johan]

Heh, good one, too bad few people will get it.

I did not see you around lately. Kamalot's been doing your job mighty fine, though.

There's a damn fine contribution to a thread! Well done! :rolleyes: