Japanese firm cuts its expectation of 6 million systems shipped by April to 3 million, Sony shares slide on news, company releases new console pics. http://www.gamespot.com/news/6156459.html?tag=latestnews;title;0 Sony shares slid almost three percent on the Tokyo Stock Exchange yesterday after an industry analyst dropped his rating of the company and halved his PlayStation 3 shipment expectations for the fiscal year, according to the Reuters news service. In a note to investors, Mitsubishi UFJ Securities analyst Masahiko Ishino expressed doubt in Sony's ability to reach its goal of 6 million units shipped by the end of its fiscal year, March 31, 2007, the report said. Ishino instead offered a new projection of 3 million units, saying that Sony would fall short of its goal because it wouldn't be able to obtain enough of the high-tech parts it needs. While such a shortfall in systems could damage Sony's game business in the short term, Ishino was also concerned with its longer-term effect on the company. If Sony can't get the units out the door, it will take longer for the company to recoup its substantial investment in developing the system. That was the reason Ishino gave for lowering his rating of the company's stock, Reuters reports. Last week, Sony Computer Entertainment America president Kaz Hirai told GameSpot he was expecting to ship 2 million PS3s by the end of 2006. That was quickly followed by clarifications from Sony saying that the company was still planning to have 2 million systems ready for the November launch and another 2 million shipped by year's end. When asked by GameSpot to address the analyst's note, a Sony rep said the company does not comment on each analyst report, speculation, or rumor that surfaces. However, he did reiterate Sony's previous position. "SCE has not changed its shipment schedule and is still on target to ship 2 million by launch window, 4 million by the end of this year, and 6 million by the end of FY 06," the representative said. However, the company did release a new batch of photos of the PS3, showing it and its controller up close and personal. Sony's shares on the Tokyo Stock Exchange fell 150 yen ($1.29) to close Thursday at 5,100 yen ($43.78).
FWIW, I read that apparently the data that UFJ used is a little old, although the report is new. Apparently, it was based on reports of the BR parts being difficult to procure (like mentioned in this article), as well as, to a smaller degree, the ramification of HDMI 1.3 (which I believe has already occurred). To be clear, I'm not trying to discredit the report...just saying it could have gone out a month ago. It sounds like Sony has done their best to stockpile the necessary parts (Cell and BR laser diodes for the most part), although that still may not be enough. Even if the data was inaccurate for some reason, it certainly won't be an easy task for Sony to get 2M at launch, 4M by the end of the year, and 6M by March 2007. I wonder if some analysts will keep their expectations lower than that simply based on the fact that console launches rarely go as expected (something will be a problem, just don't know what for sure). Plus, it doesn't help that the PS3 will be the most complex console to produce up to this point (Cell, RSX, Blu-ray, XDR RAM, HDMI 1.3, etc, haven't really been mass-produced at this point...not at comfortable levels anyway). I'm not sure if it will be "3M by March 2007" bad, but assuming there is a rather large problem with PS3 production, I'm guessing they'll delay the launch in Europe. They can't afford to lose too much ground here in the US, and Europe is probably the last place Sony has to worry about. BTW, this week sure hasn't been very kind to Sony as far as their stock is concerned.
With all the Sony battery recalls, what's the word on these things burning houses down? I'll give 3:1 odds.
The design, for the most part, won't have any real impact on the functions of the system. Having said that, yeah I agree. It is pretty bad. I would have thought after the great look of the PSP and slim PS2 (IMO), they would do better than this.
Man, that thing is Fugly...Couldn't they make it look cool...Anyway, the report may have old data, but is probalby somewhere in between, meaning a little bit higher than 3MM, but definitely lower than 6MM... I wonder how much Capital they have invested in this product...Hell, I have the same question about the 360...In theory, the hardware is a loss leader, and they make up most of the money in the software and accessories, but I could be off...
It looks like those giant VCRs they had in the 80s.... eBay and PS3 are going to fund my trip to Vegas.
