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Analyst: PS3 Price Must be Reduced by $100 to Meet Sales

500°
297w ago - Here we go again... Analyst Colin Sebastian believes Sony's forecasts will only be achievable if they cut the price of the PS3 console by $100.

He noted Sony's outlook supports expectations for a PS3 price reduction this year, likely to be some point between E3 and end of the summer.

To quote: Analyst Colin Sebastian claims Sony's forward forecasts can only come into fruition if PS3 price falls by $100.

Sony yesterday [Register or Login to view links] that PS3 unit sales would increase by 3m (30 per cent) in the next 12 months - a figure that Lazard Capital Markets' Colin Sebastian says can only be achieved via a $100 price cut to the machine.

"PS3 guidance suggests pending price reduction - timing and amount uncertain," Sebastian explained in an investor guidance statement.

"We believe Sony's outlook supports expectations for a PS3 price reduction this year, likely at some point between the E3 industry conference in June and the end of the summer, as Sony is able to reduce PS3 production costs.

"A significant price cut could provide the PS3 with a needed shot in the arm. In addition to a $100 price reduction, which would put the PS3 in easier reach of a mass-market audience,...
 

Capcom to Lean on Sony's PS3 for Software Sales

50°
298w ago - The latest [Register or Login to view links] from Capcom revealed that they will be leaning on the PlayStation 3 in this fiscal year.

To quote: The third-party company expects to sell a combined 4.9 million software units with 10 new PlayStation 3 titles plan for the fiscal year of 2009-2010. This is way higher than the previous year in which the eight Capcom games on the PlayStation 3 sold a combined 1.75 million units.

In comparison, Capcom expects the Xbox 360 to sell 4.55 million units of software with 11 new titles during the same period. Despite having more new titles (14) than the other two the Nintendo Wii is only predicted to sell 2.20 million units, which seems a little low since Monster Hunter 3 should be released before March 31, 2010.

Sony also got the upper hand on the competition in the handheld market. Capcom expects to sell 2.45 million units of software on the PSP over the span of eight new titles. Capcom is only planning for the Nintendo DS to sell 2.1 million units despite releasing 29 new titles on it over the same period.
 

Sony: Piracy Has Taken a Big Chunk of Game Sales from PSP

300°
301w ago - Sony's Peter Dille has revealed that PSP sales have been severely affected by piracy. Dille noted that piracy is no good for anyone in the gaming industry, and the data from BitTorrent sites on how many copies are being illegally downloaded is 'sickening'.

To quote: It certainly makes business sense for Sony to switch to digital distribution, but one of the motivating factors for the new-found focus on digital distribution may be rampant piracy on the platform.

Peter Dille, senior vice president of marketing at Sony Computer Entertainment America, believes that PSP sales have been severely affected by pirates.

"It is criminal what's going on," Dille tells [Register or Login to view links]. "It's not good for us, but it's not good for the development community. We can look at data from BitTorrent sites from the day Resistance: Retribution goes on sale and see how many copies are being downloaded illegally, and it's frankly sickening. We are spending a lot of time talking about how we can deal with the problem."
 

March 2009 NPD Sales Data Now Available

100°
301w ago - The March 2009 NPD data report has been released, which covers the hardware/software sales for the month.

To quote:

Hardware Sales

• PlayStation 2 - 112K
• PlayStation 3 - 218K
• PSP - 168K
• XBox 360 - 330K
• Wii - 601K
• Nintendo DS - 563K

Software Sales

1. Resident Evil 5 - Capcom - USA - XBox 360 - 938K
2. Pokemon Platinum Version - Nintendo Of America - NDS - 805K
3. Halo Wars - Microsoft - XBox 360 - 639K
4. Resident Evil 5 - Capcom - USA - PS3 - 585K
5. Wii Fit w/ Balance Board - Nintendo Of America - Wii - 541K
6. MLB '09: The Show - Sony - PS3 - 305K
7. Killzone 2 - Sony - PS3 - 296K
8. Wii Play w/ Remote - Nintendo Of America - Wii - 281K
9. Mario Kart w/ Wheel - Nintendo Of America - Wii - 278K
10. Major League Baseball 2K9 - Take 2 Interactive - XBox 360 - 205K
 

Report: WiiWare's Minimum Sales Threshold Affects Developers

50°
302w ago - According to multiple Gamasutra development sources, Nintendo's WiiWare service has a minimum sales threshold in place - under which indie game developers do not get paid at all.

To quote: Multiple sources have indicated to Gamasutra that there is a minimum amount of sales, on a per-territory basis, that WiiWare developers must reach in order to recoup any money at all for their games.

It is believed that this sales number is set in the mid-four figure range for North America, and lower four figures for individual European territories. Until a WiiWare title sells over that number, nothing will be paid out.

Gamasutra has spoken off the record to multiple developers who have acknowledged the limit, and at least one small independent studio whose staff believes they will never reach the minimum sales threshold to be paid anything for their WiiWare title.

Although Nintendo's reasons for instituting such a lower limit are unclear, it may have been done in part to stop large amounts of so-called "shovelware" titles flooding the service.
 
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