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PS3 game sales disappoint EA

 

(Video Business Via Thomson Dialog NewsEdge) The videogame publisher with the largest market share in PlayStation 3 titles reported last week that sales of games for the platform were less than expected during the holidays.

 

During a conference call elaborating on financial results for the quarter ended Dec. 31, Electronic Arts executive VP Frank Gibeau said the publisher was "disappointed" at the tie-ratio of PS3 games sold to each system purchased.

 

EA holds a 32% share of PS3 game revenue based on $41 million in orders from retailers and distributors (900,000-plus units at $44.99 wholesale) through the holiday quarter.

 

That's far fewer games than sold during the Xbox 360 launch in 2005. Then, EA filled orders for Xbox 360 games totaling $76 million (1.69 million units at $44.99 wholesale). Both platforms suffered from manufacturing problems that kept supplies tight at launch.

 

Xbox 360 revenue for the quarter was up 126% to $172 million, while PS2 revenue declined 19% to $400 million.

 

Gibeau attributed the lower PS3 game tie-ratio at launch to "the eBay effect," with many early purchasers more intent on selling their systems for a profit than buying games. Although he did not provide figures, Gibeau said PS3 tie-ratios have improved appreciably during January.

 

Meanwhile, VB sister publication Daily Variety reported that a Sony senior executive said the company might consider cutting the price of the PS3.

 

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Last week during Sony's quarter-end earnings call, CFO Takao Yuhara provided new insight into upcoming cost-cutting measures for the PlayStation 3, including a move already underway towards 65nm production for Cell.

 

Asked by an analyst what Sony was doing to help reduce PS3 manufacturing costs, Yuhara indicated that besides the move to 65nm, the Playstation would be receiving a component update designed to 'reduce the parts' inside of the console. Whether this was in reference to the anticipated removal of the EE+GS chip used to power backwards compatability is unknown, but would certainly make sense. Sony has been working feverishly to perfect their PS2 software emulation; removing the legacy hardware would reduce both chip expense and motherboard complexity. Other potential areas for chip consolidation would be the unification of separate smaller ICs - such as bluetooth and WiFi - into single chip solutions and a change to a more specialized southbridge. Suspected of being Toshiba's 'Super Companion Chip,' the present southbridge occupies a large die area while providing superfluous functionality not presently required by the PS3.

 

In terms of Cell on 65nm, Yuhara said only that production is presently underway. He did not state explicitly whether chips were being sourced from East Fishkill or Sony's own Nagasaki (or both), but confirmed that die size had been reduced by 40%. PlayStations shipping with the new Cell revision probably won't hit shelves until after the European launch, however, as SCE will wish to work through present supplies before transitioning. Going forward, as primary silicon gets shrunk, and tertiary silicon is removed from the system, PS3 should enjoy a cascading cost-reduction effect. Not only will the cost of the chips themselves go down, but the associated motherboard, cooling solution, and power supply will be able to be 'lightened' as well, as power and thermal pressures subside.

 

Yuhara indicated seperately that as of December, blue laser diode yields have improved greatly, and he expects 6 million PS3's shipped by the end of Sony's fiscal year (March 31st, 2007) to remain an achievable goal.

 

beyond3d.com

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I havnt played online yet I will when im done.

 

Anyone reccomend any games to get once iv finished with it ?

 

Ridge Racer 7 or Motorstorm.

 

I would consider Virtua Fighter 5 as well. It's out now in Japan, Feb 20th in the US.

 

The European VF5 has been delayed till June 2007, so it's worth a import now i reckon.

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Ridge Racer 7 or Motorstorm.

 

I would consider Virtua Fighter 5 as well. It's out now in Japan, Feb 20th in the US.

 

The European VF5 has been delayed till June 2007, so it's worth a import now i reckon.

 

I have a copy on pre order with an eBay seller. So I should hopefully have it next week.

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Best quotes in any reviews of Genji for PS3- "The worst major release since DRIV3R" and "one PS3 launch game nobody should consider for even a second" - 2/10 GamesTM

 

No way is it that bad. I'm quite enjoying it at the moment and would give it a 6/10 so far. If they sorted out the camera angles it would of been so much better.

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Digital edition of a newspaper talks with James Armstrong, head of SCEE Spain. Its in spanish so I won't bother quoting it and just do a summary for you

 

(Something to take into account here is that SCEE Spain also handles Portugal)

 

· They expect sell 600.000 units in Spain in PS3 first 12 months

· They will spend 5 million euros on advertising here for the first 2 months

· UK, France and Spain will get the most consoles

· 60GB only because early-adopters seem to care more about technology.

· 20GB due in Summer

· Blu-ray movies sales went up with PS3 in USA, they expect to have around 30 movies when PS3 launches

· 675.000 PS2 sold in 2006 here, they expect to sell 500-600k in 2007

· 650.000 PSP sold in 2006 here, making it the fourth biggest country for PSP after USA, Japan and UK.

 

lavanguardia.esl

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Best quotes in any reviews of Genji for PS3- "The worst major release since DRIV3R" and "one PS3 launch game nobody should consider for even a second" - 2/10 GamesTM

 

 

Bit harsh TBH. It's nowhere near as bad as DRIV3R. Hell DRIV3R is one of the very few games I took back to GAME to get my money back. I also might add this was three days before the game was suppose to be out as well. :)

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Destructoid.com : Booty-touching Kevin Pereira and Attack of the Show held a mini-debate last night on The Loop to discuss the PlayStation 3's status among the ranks. Before you say, "Oh, but I'm tired of this debate," just hang on a sec. Watch the vid, digest the info, and weigh in on your thoughts.

 

My thoughts: Let's all calm down and wait a year or two before we declare anything a failure -- even my greatest love, the Wii. What do you think? Are you tired of the "PS3 is dead" mantra as well?

 

ps3-1.jpg

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