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Why Does Sony Playstation 2 outsell Playstation 3? - Bruce On Games

Bruce Everiss, a veteran marketer for Codemasters, writes:

"Sony's full year financial results, for the period ending March 31st, 2008 make interesting reading. During this period they sold 13.73 million Playstation 2s and 9.24 million Playstation 3s. This, possibly, tells us some or all of the following.

* The Playstation 2 to 3 transition has not been the bloodbath that the PSX to PS2 transition was.

* Publishers who desert platforms early in the transition lose out.

* HDTV is maybe not yet such a critical USP.

* The PS3 is still far too expensive for a lot of people.

* Current generation consoles, the Xbox 360 and PS3, are eventually going to be a lot bigger than people think when eventually all these people upgrade.

* There is more to the games industry than Europe, America and Japan. A lot of these PS2 sales will be in less developed economies.

* Presuming that the whole PS2 operation is now vastly profitable the PS3 losses are a lot worse than they look as they are being subsidised by the PS2.

* Maybe the PS3 catalogue of games doesn't yet contain enough system sellers.

To look at this from the publishing side we have Electronic Arts' figures for the same period. They show PS2 revenue at $601million against PS3 revenue of $284 million. So more than double. And I wonder how accurately all of this was predicted by the analysts."
Superfragilistic - contributor
Published: 600 days ago | Article | PlayStation 3 | PlayStation 2 | Industry News
 
 

Showing: 1 - 28 of 28 Comments
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yanikins111 - 600 days ago
1 - Because
Ones AU$199, ones AU$700. depending on where you live and what currency we're talking im assuming its around the same ratio.

PS2 wasnt a bloodbath either. Ps3 is selling better in the same time frame.

New tech nearly always has slow adoption.

"Presuming that the whole PS2 operation is now vastly profitable the PS3 losses are a lot worse than they look as they are being subsidised by the PS2" - Wow. I never knew a sentance could make so little sense but there we have it.

Article fails.

EDIT: See open zone
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shine1396 - 599 days 19 hours ago
1.1 -
I never agree with bruce...it's a blog...why is this news...? and on n4g? should be in one of the forumz...
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Superfragilistic - 599 days 18 hours ago
1.2 - A couple of corrections...
Regardless of your opinion of the article I have to address two things you've raised.

1) The PS2 was a bloodbath in that it cannibalised sales of the original PSX. The PS3 may be selling at a faster rate than the PS2, but it is not cannibalising the sales of the PS2, the PS2 is still selling stronger than any next gen console other than the Wii.

2) "Presuming that the whole PS2 operation is now vastly profitable the PS3 losses are a lot worse than they look as they are being subsidised by the PS2"

That sentence makes perfect sense. In fact you can find a whole article about this on N4G by the Guardian which showed that once you accounted for PS2 & PSP profits of US$1.2bn, the loss in the PS3 division was US$2.4bn - or $260 per console.

PERSONAL OPINION:

I don't get what the fuss is about this article. Sure he underestimates the price factor, but Denzelio's comment below is actually a very interesting one as it suggests that by abandoning the PS2 the PS3 would immediately appear cheaper to a consumer (without dropping the price!).

You could go so far as to say that the PS2 is to an extent cannibalising PS3 sales, because consumers who prefer Sony but at the cheaper price will choose the cheaper machine so long as the software is there.

This ties nicely into Bruce's final point about the lack of current system sellers on the PS3 and also backs up Denzelio & solid's points, aswell as the belief of many (myself included), that the PS3 will see significant boosts in hardware sales as soon as system seller PS3 exclusives like MGS4, GTR, Resistance2 become available along with next gen only third party titles.
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SCThor - 599 days 14 hours ago
1.3 - PS2 is buying some time...
until the ps3 get cheaper and more AAA titles get released. Right now, the main factor that holds back ps3 sales is price and no FF,GT,GOW,TEKKEN, main titles that get most of attention from gamers.

Bring those titles and the price around $300 and you'll have a system selling like hotdog.
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Condoleezza Rice - 600 days ago
2 - Why did the Ps1 outsell the Ps2?
Answer this ^ ,and you'll get the same answer for this article.
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thereapersson - 599 days 22 hours ago
3 - Two words:
It's CHEAP!
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Britjadg - 599 days 22 hours ago
4 -
its painting a picture but its complete nonsense. difference in price is a huge issue

but also, these numbers are for predominantly 2007 when ps3 was just coming into the game. its like comparing an international side with the five aside team at your local pub. should anybody be reading this article. i'm fairly sure that you can assume ps3 is outselling ps2 by quite a margin, to the tune of about 30,000 sales each week.
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ROEG-GAMER - 599 days 14 hours ago
4.1 - Technology and Price
Price is a big factor,but you also have to think about the technology that was put into the PlayStation 3. The PlayStation 2 will always be around due to the fact that it has very huge library of games from anything you can think of. PlayStation 3 10 years from now will repeat that same process. The PlayStation 3 is highly evolved technological gaming console and if Sony helps bring in 3rd party developers as well as drive their own console with their in house developing companies and start to produce new and innovating games then the PlayStation 3 will soar in popularity, Sony has to evolve because Microsoft has great games and a cheaper console minus the upgrades.When you think about it their Pro console $350 and the PS3 40GB console $400 you would think microsoft would be the console of choice but built in WIFI and Blu Ray and 2.5 HDD laptop hard drive with Bluetooth technology is very appealing, Blu Ray isn't just for movies it can also be used for developing bigger games the space is ifinite. At the end of the day "Future Technology Rules"!
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Denzelio - 599 days 22 hours ago
5 -
Quite simply they have to stop making the same game for both PS3 & PS2, the consumer will always take the cheaper option for as long as possible.
Either that or at some stage discontinue creating PS2 consoles, at that time they will magically start making every PS3 console with 100% PS2 compatibility again, then the PS2 software would then start disappearing from stores and consumers would then have no choice.

Muhahahaha
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solidt12 - 599 days 19 hours ago
5.1 -
Yep, that's why GTA IV is selling PS3's. No more GTA for the PS2 and when MGS4, and FFXIII comes out more PS2 owners will flock to the PS3.
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titntin - 599 days 19 hours ago
6 -
Bruce is the single biggest idiot in the gaming blog world, and his self assured pseudo intellectual smuggness, is a mirror of the same personality traits I've seen in most of the Games company marketeers throughout the years. Its the reason those of us do the nuts and bolts work of making a game, will never mix with the self important tossers who go on to sell it and act like they know something.

I know I'm gonna disagree with his articles almost before I click them.

I did write a serious rebuttal of his previous article and posted on his site, but despite me keeping it 'intellectual', he never approved the comment - he really doesn't like people pointing out how full of holes his thoughts often are!
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Superfragilistic - 599 days 19 hours ago
6.1 -
How bout you post that comment up here in a blog or comment?

I'd love to read it.
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titntin - 599 days 18 hours ago
6.2 - @Superfragilistic
Sorry, I never thought of posting it elsewhere and simply didn't keep it! I've been working freelance for a few years now and when I'm between contracts (like now) I have too much time on my hands and spend far too much of it posturing on this site and running a few sites I'm administrator on! :)
Its hard to believe I care enough to bother writing, but it does keep me amused - my wife tells me I spend almost as much time being a 'keyboard warrior' as I do playing games! I'm worried she might be right..:)
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Superfragilistic - 599 days 18 hours ago
6.3 -
She may well be. lol

I've been worried that I've got the same problem.

But whilst I respect your creative endeavour and your hate of suits, I'm sure you'd acknowledge that the "smug" suits are a necessary evil so games can be enjoyed by the masses, no matter how much we may despise them.

I agree that they may know nothing about games in terms of development, programming and design but surely they know more than you or I about how to sell a product to a consumer, that's in their job description!
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titntin - 599 days 13 hours ago
6.4 -
You're probably right mate - but honestly if you saw how much of the budget they spent, and how little they actually understood the games, you'd also get pretty ticked off with them! :)

I remember in particular, that when I was at Bullfrog and we were 'absorbed' by E.A. they stopped us from making Dungeon Keeper 3, despite the fact we'd just won all sorts of awards for DK 2! It was because EA marketing couldn't understand the concept, it was 'cross genre' so they didn't know how to pitch it, and the distinctly British humor that was a trade mark of the series was something they didn't understand... When you see a great franchise like that killed off by such people, you get a serious amount of 'grudge' built up!
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Superfragilistic - 599 days 12 hours ago
6.5 - Well find me a rock and a hard place!
You just handed me a bit of that grudge.

I suspect I'm much younger than yourself as my preteen and teenage years were dominated by Bullfrog titles. Syndicate, Magic Carpet, Theme Park, Populus, Dungeon Keeper and Theme Hospital all own large chunks of my formative years, and pretty much in that order!

To this day Bullfrog are my favourite developer of all time, largely for their design ingenuity and that unique British sensibility that permeated everything they touched (being a convict descendant I get it!).

Perhaps that's why I hold Lionhead in similar high regard and enjoy every game Peter Molyneux is involved with despite whatever far fetched promises he fails to fulfill... although strangely I still have no doubt that Dimitri will change the world! ;)

I will be eternally envious if you had any part in any one those aforementioned classics. I'll also be eternally grateful.

Cheers mate.
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titntin - 599 days 11 hours ago
6.6 -
Dungeon Keeper 2 was my baby - though I've got credits on a lot of stuff you mentioned :)
It was tragedy that EA destroyed Bullfrog - one of my fave developers, and I realized a dream by working for them.
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Superfragilistic - 599 days 11 hours ago
6.7 - Well I guess I'm envious then...
But inspired to keep sticking at it until I get to the point where I can say to someone "you know that game you loved to death as a kid... that was my baby".

Cheers for the always interesting chat and inspiration. I guess Bruce is good for something after all. :)
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dabizo - 599 days 19 hours ago
7 -
PS2 has got the biggest and best catalogue of games than any other - PS2 still rocks!!!!!!!!!!!!!
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bakasora - 599 days 18 hours ago
8 -
Restating the obvious.
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blindfromthesun - 599 days 18 hours ago
9 - Why shouldn't it?
People wonder why the Wii and PS2 continue to sell despite being "dated". Frankly speaking, they both are mass market, money printing machines. The PS2 is a very attractive purchase for anyone looking to get into gaming. The price is right for the console and the majority of the games are $20. Not a bad deal. It makes you question why you spend 3 times the price for a "next" gen console and 3x the price for games. Its almost enviable. The question is: does price sell games or flashy graphics? (both seem to do so, but the extent of either is the focus)
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Tunerboy8732 - 599 days 18 hours ago
10 - Thats easy
The same reason why a poor person would pick a Toyota Camry over a Maybach 57 S.Price Tag!
11 midgard229 | 599 days 17 hours ago - User only got 1 bubble - Show
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Qbanboi - 599 days 17 hours ago
12 -
Why the best console ever that cost 120$ is outselling a new console that cost $500?? Wow, i HAVE NOT idea. THAT'S a REALLY good question.
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Maddens Raiders - 599 days 17 hours ago
13 - LOL -
"bruceongames"
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Yomiro - 599 days 16 hours ago
14 - Good news for sony
All this new and old ps2 user will eventually become ps3 user.
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Panthers - 599 days 16 hours ago
15 -
PS2 still has a lot of life in it. Games continue to come out, and it has the largest library of games available. This goes to show that we dont need a new system out ever 4-5 years. Especially with a system like the PS3. Hopefully a new Playstation wont be out for a good 6-8 more years.
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DJ - 599 days 16 hours ago
16 - Cheap. Great games.
Duh.
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