Shelves full of PS3 units not a bad thing

PS3 News | It's all down to good organisation, argues Sony bigwig.

Sony boss Jack Tretton has hit out at suggestions that the high number of PlayStation 3 consoles still sitting on US shop shelves is an indication that the machine is suffering from poor sales. Speaking to Reuters, the SCEA chief executive suggested that the ubiquity of PS3 units in North American stores could be attributed to Sony's outstanding organisation, not to mention an efficient manufacturing and supply chain.

"It's a testament to the fact that we've been able to manufacture and ship units at a greater pace than any previous console," explained Tretton. "Our goal is to fill shelves across the United States. Our goal is not to have empty shelves, it's to have full shelves. If we have a empty shelves that's one less consumer who could have bought a PlayStation 3," he added.

Meanwhile, Sony looks like it will reach its target of 2 million PS3 units sold in the US by the end of March, with Tretton noting that, "We're in pretty good shape to do that. The early returns are quite favourable."

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39 Comments

Nev

4 years ago

Microsoft doesn't have enough units to go around = bad organization.

Sony DOES have enough units to go around = low demand.

Nintendo doesn't have enough units to go around = high demand.

I'm beginning to think that if Nintendo removed vibration and backwards compatibility from the Wii, the media would give them a medal and a cookie.

Itachi

4 years ago

I bet heaps of people are waiting for a price drop. I'm waiting to get one and there are many on the shelves in USA pfft I love being a pal

Let the bashing of sony begin:

renegadesx

4 years ago

narutofanx10 wrote

I bet heaps of people are waiting for a price drop.

:

Thats a no brainier, I defiantly cant afford one, but dont underestimate Sonys loyal fanbase

EDIT: My question is why is everybody expecting the PS3 to do as well right off the bat? Isnt it kind of irrelevent? PS2 didnt do to well in its initial launch window, it sold alright? only one of the highest selling consoles in history, not a bad effort right?

Either way, every console you will always have early adopters and people waiting for price drops, PS3 is no exception

Googol

4 years ago

The thing is, we're not getting on-the-fly sales here. If we could see that the PS3 is selling out its shipments and replacing them pretty quickly, he would, in fact, be correct. However, if the units are sitting on the shelves for long periods of time collecting dust, THEN there's a problem.

Whereas we KNOW the Wii is doing well (because it sells out every shipment it gets), the PS3 is a bit more complicated. I kind of like this news piece, though - it actually makes sense to a certain extent, which is more than what I can say about other recent Sony PR *cough*Philharrison*cough*.

renegadesx

4 years ago

Googol wrote

I agree with alot of what he says, although he is indicating that the PS3 is doing better than the Wii, which is blatantly untrue, Instead of playing down BC and rumble, they should go back to play down initial sales.

David

4 years ago

For reference:

US hardware sales for January 2007 (via NPD)
Wii - 436,000
360 - 294,000
PS3 - 244,000

US hardware totals (NPD)
360 - 4,800,000
Wii - 1,516,000
PS3 - 937,000

Japanese hardware totals (Media Create)
WII 1,586,739
PS3 656,968
360 322,529

renegadesx

4 years ago

David wrote

For reference:

US hardware sales for January 2007 (via NPD)
Wii - 436,000 - (1,516,000 LTD total)
360 - 294,000 - (4,800,000 LTD total)
PS3 - 244,000 - (937,000 LTD total)

Exactly, some Sony exec say the reason that PS3's were on shelves and Wii's weren't, was that Sony ships more units than Nintendo (and indicated the PS3 was outselling the Wii), but obviously not true. Like I said, they should play down initial sales

Nev

4 years ago

renegadesx wrote

I don't think I've ever heard anyone say that the PS3 was outselling the Wii. I don't know about shipping numbers, but if Sony came even close to shipping as many PS3 consoles as Nintendo ship Wii consoles, that's quite a feat (from a production standpoint - not a sales standpoint).

legend166

4 years ago

It's like they're not even trying to spin anymore, they're just outright lying.

Renegade, the PS2 sold amazingly well at launch. As in, it was sold out for month. If I remember correctly, it sold about 980 000 in it's first week in Japan.

admeister

4 years ago

legend166 wrote

It's like they're not even trying to spin anymore, they're just outright lying.

Exactly.

article wrote

"It's a testament to the fact that we've been able to manufacture and ship units at a greater pace than any previous console,"

@ that. They can produce the PS3 faster than any previous console? In their dreams. If that was the case, why did Europe and Australasia have to wait until March 23?

We're supposed to believe that they have excess consoles in the U.S, yet they can't launch here.

Crestfallen

4 years ago

Nev wrote

Good sypnosis.

Having PS3 on shelves could mean quick replinishments on Sony's behalf or a consumer lack of interest. I wonder how long the consoles are sitting on the shelf (in the majority of examples).

Nev

4 years ago

crestfallen12 wrote

Having PS3 on shelves could mean quick replinishments on Sony's behalf or a consumer lack of interest.

Most likely a little of both. Sony are doing a better job at ramping up production after an iffy start (Blu-Ray diode shortages, etc), and sales are on the sluggish side due to the monstrous price tag. They're not even close to Wii's weekly sales, but (surprisingly) close to Microsoft's.

DancesInUnderwear

4 years ago

I have a question - if the Wii s essentially a repackaged Gamecube but the PS3 is OMG SUPER AWESOME TECHNOLOGY why is the PS3 being restocked at better rates than the Wii?

The Brett

4 years ago

I agree that it's a good thing. It makes you wonder how many sales Nintendo have lost from frustrated casuals who couldn't find a unit for a month. If someone sees an article detailing the impressive tech specs of the PS3, and decides on a whim that they have the cash to get one, Sony would want to have enough in stock to satisfy that person.

At the moment, everyone who wants a PS3 has one, and that's a really good thing for Sony, consdering how expensive the console is. At that price, you wouldn't want to be losing sales.

David

4 years ago

DancesInUnderwear wrote

I have a question - if the Wii s essentially a repackaged Gamecube but the PS3 is OMG SUPER AWESOME TECHNOLOGY why is the PS3 being restocked at better rates than the Wii?

First, the Wii isn't in any way a 'repackaged Gamecube'. Every single chip in it is new. It may not be 'teh powaful' computer, but it realistically has no Gamecube parts in it at all (except maybe the controller ports etc), and so new production lines had to be created for the chips. Despite not being a powerful computer, the Wii is still most likely quite hard to make. Much like a laptop, it's compact form, built in features (wi-fi, bluetooth etc) and low power consumption mean it's still a 'high tech' device. It's just that the 'tech' isn't just gigaflops.

And chips will never be the limiting factor anyway - Sony's not having a problem with chips, but with blue lazer production. Wii production is most likely being limited by plastic or something simple like that.

Second, the PS3 ISN'T being re-stocked at a batter rate then the Wii. The Wii is probably 3 million ahead in production, and it seems about 3 million ahead in sales. Sony just announced they have 'shipped' 4 million, which in Sony terms means 'made 4 million'. They've probably actually shipped about 3 million to retailers. And we have confirmation they've sold less then 1.6 million (up to January in the US, and February Japan).

Compare this to the Wii, which has launched in all 3 territories, and if Europe got the same number that the other territories got, then we're looking at well over 4.5 million already SOLD, not even counting February for the US and Europe. So they must have already shipped at least 5.5 million, probably more.

Ultimately, Nintendo didn't anticipate the demand, and has been caught short. But 4.5 million sold in two months? Who could have anticipated that?

Crestfallen

4 years ago

David wrote

And chips will never be the limiting factor anyway - Sony's not having a problem with chips, but with blue lazer production. Wii production is most likely being limited by plastic or something simple like that.

Well the Cell has a pretty absymal yield ratio. It was so bad at one stage they had to disable one of the SPEs (from 8 to 7).

IBM had Nintendo's chipsets produced long before launch.

Generally speaking, the PS3 or 360s production needs I think are alot more than the Wii. Saying otherwise really goes against Nintendo HQs whole strategy this gen.

4 years ago

DancesInUnderwear wrote

I have a question - if the Wii s essentially a repackaged Gamecube but the PS3 is OMG SUPER AWESOME TECHNOLOGY why is the PS3 being restocked at better rates than the Wii?

That's a very good question

I personally see the Wii as a clocked up GC*** (just a few extra clock cycles offered by IBM for free) and packaged with a nice controller OEM-ed out of a small business owned by Thompson. I don't say this in a bad way as the GC is/was a reliable & capable console - just under appreciated.

As such my feeling has always been that the Wii was over priced for the launch and this belief has been based on the assumption that scaling Wii production would also be a simple affair. Maybe it's because the GC production was low and too far below the level Wii is enjoying now. Maybe Nintendo management where to cautious and did not invest in front of the curve. - who knows with Nintendo?

Whatever the reason/s I don't understand Nintendo's strategy. Supply constraints (if treated very very carefully) can support price - but if constrained too much it badly impacts on demand (no one wants too wait for ever - they loose interest). One things for certain it's not due to a lack of gyroscopes which are dead easy to mass produce and are already a commodity component being sucked up and used in IBM Thinkpad and a string of HP volume systems. Every where I go Im having small LCD panels & gyroscopes shoved under my nose.

The only other reason I can think of is lack of man power and small distribution capabilities. One would hope that if Nintendo is underdeveloped in the US and Europe they will bring on a partner to take care of supply chain logistics & manage the transactions for them instead of struggling to keep it all in house.

*** PS I don't mean that they recycle GC parts but suggest that the systems are built from components sourced from the same suppliers and are of the same scale & part counts (complexity of assembly).

DancesInUnderwear

4 years ago

David wrote

DancesInUnderwear wrote

I have a question - if the Wii s essentially a repackaged Gamecube but the PS3 is OMG SUPER AWESOME TECHNOLOGY why is the PS3 being restocked at better rates than the Wii?

Fair enough (I know nothing about hardware stuff) but still, wasn't one of the main reasons for going with lower end hardware for the Wii so that it would be cheaper and easier to produce? Though the cheaper part has become a reality, it seems to me that the easier part has not, especially compared to a console that, lets face it, 6 months ago we'd all thought would be lucky to even be ready for a launch anywhere in 06 (well, not everyone, but I remember see plenty of articles on various sites about the PS3 having problems with this and that).

Its fair enough that Nintendo didn't anticipate the Wii to be such a success (like most of us I'd imagine), but it still seems to me like they are dropping the ball, particularly with the 360 slowly creeping lower and lower in price.

legend166

4 years ago

Nintendo still have done the best out of the three consoles, production wise. They managed to launch around the world successfully, something MS pretty much failed at with the 360 - we all know what a disaster that was. Sony couldn't have a global launch.

I agree that Nintendo should be producing more, but I think some people are being a bit harsh. Like people have already said, who would have thought that the Wii would completely sell out all around the world?

I don't think the supply issues will really hurt that much, sales wise. I'm pretty sure a regular joe who is looking for a Wii but can't find one won't turn around and say "Oh I'll just buy a PS3."

Crestfallen

4 years ago

legend166 wrote

Oh c'mon you can't compare the difficulties faced by MS to those faced by Nintendo.

The 360 launched on the bleeding-edge of technology, the same cannot be said for the Wii.

4 years ago

DancesInUnderwear wrote

David wrote

DancesInUnderwear wrote

I have a question - if the Wii s essentially a repackaged Gamecube but the PS3 is OMG SUPER AWESOME TECHNOLOGY why is the PS3 being restocked at better rates than the Wii?

Its not in anyway demeaning to look at Wii as an optioned GC. Nintendo's stated strategy was to focus on "fun" via innovation & quality games that are accessible to all (that is: those that can get one). In theory Wii consoles should have been easy to churn out and this in turn keeps publishers happy to invest in the platform.

I agree with you RE MS: My gut feeling is MS is letting the console slip in price by way of back-end rebates & access to generous co-op funds. It's not an official price reduction but it allows the management of major retailers to take more profit selling Microsoft kit (also without paying staff comms if applicable) and gives retailers some room to discount little by little.

My gut feeling is that something is going to happen soon and once the time is right MS will probably spring something that will upset the apple cart a little more. This has Sony spooked and maybe the reason why there is an urgency to find component cost reductions (EG BC in PAL regions) other than via scale or capital hungry re-tooling of production processes.

The other big concern is that Sony's push for PS3 to be viewed as a "Media Hub" could backfire. Some consumers may be buying PS3 as a Bluray player and not a games console. Look it may just be that the current S/W selection is still poor but US retailers seem to be reporting bad connect rates on accessories & software. Because retailers don't make much money selling the console - if the connect rate is not good retailers respond by restricting sales to more expensive "bundles" – which in turn greatly reduces the number of willing buyers. It does appear to be happening at Walmart. If this does not work then they will defocus on the PS3 and the only space available to the console becomes the rented space Sony needs to pay for... Nintendo was in this exact position last time around. - I guess what I'm suggesting here is we should look more at the sales figures of key software titles as being the real pulse of PS3, XBOX360, & Wii. Then compare as a percentage of console shipments to correctly determine the health of each console.

Can we get these figures?

thebigm

4 years ago

crestfallen12 wrote

legend166 wrote

Oh c'mon you can't compare the difficulties faced by MS to those faced by Nintendo.

The 360 launched on the bleeding-edge of technology, the same cannot be said for the Wii.

Wow, some people don't realise that there is 2 ends to the bleeding edge of technology, size and power consumption, to raw power. Just because something is not at the raw power end, does not mean that it isn't bleeding edge technology.

And anyway, all manufacturers find difficulties of some kind, so it isn't really a good statement to be comparing consoles based around.

Tretton's comment come off as spin, and seeming neglect the competition, as they have been known to only compare within their division (i.e. Playstation brand name), which is probably somewhat heartening to Sony's investors.

Ellegarden

4 years ago

admeister wrote

There's probably a few reasons for this, the ps3 launched was stalled cause of something crappy supplier giving out diodes. Added to fact the PAL versions are revisions as they missing PS2 chips not to mention other cost reducing productions (might be bad or good). Since revisions take time to evaluate, production of both NTSC and Japanese could continue then main production would probably be heavily produced for PAL launch, leaving backstop of NTSC and Japanese consoles.

Just a guess.

legend166

4 years ago

crestfallen12 wrote

legend166 wrote

Oh c'mon you can't compare the difficulties faced by MS to those faced by Nintendo.

The 360 launched on the bleeding-edge of technology, the same cannot be said for the Wii.

Which is why Nintendo managed to get out millions more units than Microsoft did. What's your point?

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