Sony lower vita (and psp) sales forecast again: 7million by 31st march

#51bluedmonPosted 2/7/2013 5:30:36 AM
Well if sony is banking on the PS4 is gonna make them tons of money they really are gonna go bankrupt cause thats not the way you make money is to put out a new console. It always sells terribly bad the first yr or two while a library builds. The 3ds, the wii u, the ps3, the vita. All sold/ are selling terrible at launch.
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#52ylvisPosted 2/7/2013 5:32:17 AM
kingofall214 posted...
archedsoul posted...
lmao @ this bluedmon guy making a fool of himself.

Dude, you have no idea what you're talking about, so just stop already. The Vita is doing horrible and this lowered expectation is horrible news. Stop trying to play it off like it's nothing serious and acting like you know what you're talking about.




It's not "horrible" as you are saying. "Horrible" is what you would say if Sony is going to go bankrupt or discontinue the vita as they have no other choice. "Horrible" is what Nintendo went through with the 3DS where they had to ether drop the price or face serious financial disaster.

.



Uhmmm... The Vita is selling much worse than the 3DS ever did. The thing is that Nintendo actually had a chance to lower the price, but Sony doesn't right now because it will make them bleed money.
#53ylvisPosted 2/7/2013 5:34:35 AM
bluedmon posted...
Well if sony is banking on the PS4 is gonna make them tons of money they really are gonna go bankrupt cause thats not the way you make money is to put out a new console. It always sells terribly bad the first yr or two while a library builds. The 3ds, the wii u, the ps3, the vita. All sold/ are selling terrible at launch.


Well that's the reason why Sony has lost so much money for the last few years. Right now they're earning quite a lot from the Ps3 and PSP though. But the Vita is in a terrible state.
#54kingofall214Posted 2/7/2013 5:36:45 AM
archedsoul posted...
Hilarious coming from you. You're another person that never knows what he's talking about. Saying stupid things like Sony's entire debt being relinquished come this March because they're gonna be in the black for FY'12 or games going through "encryption/decryption" every time you play.

Fact is, it is horrible. Read Big_Issac's post. He sums it up well enough. You can try to sugarcoat it however you want, but you need to look at the bigger picture (hint: dying company desperately needing the PS4 to save them).


*Sigh* Why is it people read only parts of topics and never the whole thing? The "In the black" was a mistake. I said so in the topic. The mistake was that I thought Sony would use the cash they have to pay off there debt as by march they will have more cash than debt. Of course that is silly because they can't pay off the debt and only have a couple 100 million or so to pay for a world wide company.

The encryption/decryption topic was asked not stated. I said "the memory cards encrypt and decrypt when you back up and restore. Or at least that is what I thought. That affects the speeds on the cards." No one has posted evidence to the contrary. I don't know nor do I claim to know that as absolute fact. It was just my understanding of it.

Now to your actual claim involving this topic. No it's not "horrible". Again vita is not being sold at a loss. The cost to make a vita will be dropping very soon. As a result Sony can sell the vita for less and still make a % profit.

Sales are low. They are toughing it out until said price drop. There is nothing else they can do. There is no reason to drop the price so it cuts into there Profit % or even starts selling at a loss when sometime this year they can drop the price and keep there profit %.

As for your "dying company" claim, Sony stock has been going up for the past couple of years. They have other sections of business other than gaming you know. Some of those sections are making them some pretty good money.

PS4 being released is a desperate move? I don't see how. It isn't going to start making them billions overnight no matter how good it is. Console sales start slow and pick up steam over time. If you think the PS4 is going to sell tens of millions in a few weeks well you would be mistaken.
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#55bluedmonPosted 2/7/2013 5:37:13 AM

Uhmmm... The Vita is selling much worse than the 3DS ever did. The thing is that Nintendo actually had a chance to lower the price, but Sony doesn't right now because it will make them bleed money.

@ylvis
hows the wii u selling? Not to well id imagine.
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#56kingofall214Posted 2/7/2013 5:38:09 AM
MarkCohenBros posted...
bluedmon posted...
Quote:wow, you really have to brush up on your knowledge of economy, bluedmom

companies live or die based on estimations.
when they debated the pricing of the Vita, they had to make sales predictions to calculate the point where they would start profiting from the vita
these sales predictions are what the price of the Vita is based on.

"at tis price, we predict 16 million units sold in the first year, which implies ____ units sold in 3 years, which means we start making profit 3 years into the vita's life"

this was the long-term plan.
however, since sales are so low, Sony had to lower their predictions and hence push the break-even Point much farther into the future.
like it or not, this is already bad even if it happens only ONCE in the lifetime of a product, let alone 3 times in less than a year.
with the less-than-perfect financial situation Sony is in at the moment, having sales predictions of their new handheld cut by over 50% while its competitor out-sells it 5:1 does not make the gaming branch look very good in the eyes of the overall company

@Big_Isaac
not many of you guys can look at the big picture can you? Yes its bad they estimated really bad which is stupid for them but its not gonna bankrupt sony by any means. It hurts the company but its not like sony is some small company like sega was when they fumbled with the dreamcast. Its a big company that deals in so many things that like i said its not there biggest concern when compared to other markets they are in. Smartphones really helped them this past yr. and vita couldve been much worse. You guys just focus too much on one detail instead of looking at the whole.


Uh... Sony is a company on the verge of bankruptcy, fighting really hard to survive. They are not what they were in the PS2 days.

This lowered forecast means it will take upwards of 7 years to become profitable at this rate. Compounded with probably double the cost of the development of the PS4 and 16B in debt, it's very bad.


Not even close to true.
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#57Big_IsaacPosted 2/7/2013 5:39:31 AM
the difference between Sony and Nintendo is that Nintendo has enough money on their bank account to buy the entirety of Sony, while Sony doesn't even have enough to buy a snickers bar.

when they lowered the 3DS' price below production cost, they could do so because they had more than enough money to cover the loss. not to mention it got back into the profit zone only a few months after the price drop.
with the Vita, Sony has been losing money with every unit sold from the start (as Sony and MS always do). this means that if they lower the price even further, their break-even point is going to sail away into the land of dreams.
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#58bluedmonPosted 2/7/2013 5:40:37 AM
Quote:bluedmon posted...
Well if sony is banking on the PS4 is gonna make them tons of money they really are gonna go bankrupt cause thats not the way you make money is to put out a new console. It always sells terribly bad the first yr or two while a library builds. The 3ds, the wii u, the ps3, the vita. All sold/ are selling terrible at launch.


Well that's the reason why Sony has lost so much money for the last few years. Right now they're earning quite a lot from the Ps3 and PSP though. But the Vita is in a terrible state.

@ylvis
no its actually not making alot from the PS3. Hence the chart that their projected ps3/ps2 sale is 2 million units less than last yr. They are making most of their money in smartphones. Huge projected increase
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#59Big_IsaacPosted 2/7/2013 5:41:54 AM
bluedmon posted...

Uhmmm... The Vita is selling much worse than the 3DS ever did. The thing is that Nintendo actually had a chance to lower the price, but Sony doesn't right now because it will make them bleed money.

@ylvis
hows the wii u selling? Not to well id imagine.

Nintendo has enough money on their "Wii prints money!" bank account to discontinue both WiiU and 3DS, come up with 2 entirely new consoles and sell them at half the production costs... if they wanted to
point is, low initial sales aren't going to hurt Nintendo much, and once the big hitters, namely 3D mario come out, the WiiU will print money just like the Wii and 3DS (well, maybe not to that extend, but sufficiently)
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#60stargazer64Posted 2/7/2013 5:42:53 AM
According to this website:

http://www.macroaxis.com/invest/ratio/SNE--Probability_Of_Bankruptcy

Sony has around a 23% chance of going bankrupt in the next 2 years.
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