Analysts forcast 2.5 million Vitas, 7 million software units by March 2012

StevieP said:
BurntPork commited that first statement already...

The amount of money made from blu ray royalties is so small it's not even worth typing in a post, let alone mentioning it as part of a loss-leader strategy. In fact, the blu-ray drive was the biggest failure of the PS3 strategy in generaly, by far... with the Cell coming in at a distant second.



Apana was being sarcastic. Stump probably has figures (or somebody did, posted in a thread long ago) - the amount made from Blu Ray royalties was and is almost insignificant. Like <couple hundred million LTD insignificant, with royalties currently being much lower than when it launched.
I know he was being sarcastic.
 
nickcv said:
i don't want to get OT but where exactly did you get the exact amount of many nintendo has in its treasure chests?

i'd need it for a quote :D


anyway i hope sony does well, we need to stop this iOS.gaming.is.killing.the.industry no sense :D

do we have any words about possible launch lineup anyway?


It came from this absolutely stupid and poorly-researched hyperbole piece from Bloomberg the other day.

And while iOS may not be killing gaming (at least not yet) the devaluation and "dumping" of excessive low-value games is part of what caused the videogame industry crash in the 80s. "Why buy a $50 game on Vita when you can get free games on your ipad?"
 
StevieP said:
It came from this absolutely stupid and poorly-researched hyperbole piece from Bloomberg the other day.

And while iOS may not be killing gaming (at least not yet) the devaluation and "dumping" of excessive low-value games is part of what caused the videogame industry crash in the 80s.

i knew about all of that, i just never really read the original article... i didn't want to give clicks to whoever is so stupid to publish that article <.<

thanks anyway Stevie ^^
 
Ace Securities analyst Hideki Yasuda expressed concern about this particular area, saying that the higher resolution of the system causes troubles for developers as it eats up development time.
How can he even say such a thing?
 
Meisadragon said:
How can he even say such a thing?

Because it's, in general, true. It's not quite a linear relationship, but the better the visuals for your content the more money it's going to cost (without cutting said content). Charlequin can explain this better than I. But basically, the better the visuals and the higher the scope of a project, the higher the cost to make the game (part of the reason why the HD generation brought a $10 increase and a ton of studios struggling/closing with what sales that were previously considered decent).
 
AgentChris said:
Sony's whole strategy with taking losses on hardware is dumb. Sony needs to make money more than anything right now.

It's a decent gamble if they have other areas that are profitable.

Losses + tax consolidation + carrying forward = Profitable areas minimize tax bill for several years.
 
StevieP said:
Because it's, in general, true. It's not quite a linear relationship, but the better the visuals for your content the more money it's going to cost (without cutting said content). Charlequin can explain this better than I. But basically, the better the visuals and the higher the scope of a project, the higher the cost to make the game (part of the reason why the HD generation brought a $10 increase and a ton of studios struggling/closing with what sales that were previously considered decent).
Yeah, but he was saying development time. I know the cost will be slightly higher, but unlike the PSP, the Vita is easier to develop for, and working around hardware deficiency is what usually increases development time, which shouldn't be a big factor here. Even the porting process should be lightning quick. I don't disagree with him entirely though, but the development time should be on par with the PSP.
 
This strategy has worked for Sony in the past and there is no reason to believe it cannot work again. You have to remember that not only was the PS3 being sold at a greater lose than the PSVita is, but the PS3 went way over budget. If I recall correctly Howard Stringer wasn't even informed it went over budget until it was too late.

There are many other factors to consider. For one, Sony's first-party is at its best; it is much larger and well known than it has ever been for a new system in the past. There should also be a wider range of accessories than there has been on the PS3. PSN is also more established and making Sony more money.

They should also turn a quicker profit on some of these early games, considering most of them are using assets from PS3 games. There is just too many factors to consider just to outright say this strategy is dumb, only results in failure or whatever it is.
 
I wonder how much profit the people who are crapping on Sony for selling the Vita at a loss, think Nintendo is making on the 3DS at $170.

And MS's gaming division hasn't been profitable since its existence. You think Sir William of Gates is losing much sleep over that?
 
Para bailar La Bomba said:
I wonder how much profit the people who are crapping on Sony for selling the Vita at a loss, think Nintendo is making on the 3DS at $170.

Nintendo still expects to make a profit this year and for them to start breaking even again on the hardware sometime next year.
 
Article is off on the losses. Sony has already said they will be basically breaking even. Just like Analysts claimed the 3DS only cost 100 bucks yet Nintendo is losing money at 170.
 
Somnid said:
Nintendo still expects to make a profit this year and for them to start breaking even again on the hardware sometime next year.

A decent achievement if they can pull it off (and I hope they do, just to "shhhhhhhh" the iOS crowd).
 
Para bailar La Bomba said:
A decent achievement if they can pull it off (and I hope they do, just to "shhhhhhhh" the iOS crowd).
That process isn't so much of selling the product at massive quantities as it is reducing the cost of the product by improving the production process.

Same thing with what analysts are predicting here for the Vita.
 
antonz said:
Analyst is off on the losses. Sony has already said they will be basically breaking even. Just like some Analysts claimed the 3DS only cost 100 bucks yet Nintendo is losing money at 170

They said some off the record things, and the 3G SKU may well make a tiny profit. Doesn't mean they both can't be right or the Sony guy wrong. I don't think anyone would put much stock in that quote.
 
Considering it was reported that Vita is scheduled to miss the holiday season in the US and Europe I find the possibility of 2.5 million in hardware sales to be somewhat unrealistic, especially at that price (I'm not questioning the value, it is "worth" the price in terms of the technology, I still believe the price will be a barrier to adoption for many people).

I will say if the analyst is purely referring to sales to retail stores ("shipped" rather than sold) I could see that as possible.
 
Takao said:
I guess that's better than what the internet has made me think of Kaz ("Five hundred and ninety nine US dollars" "Riiidddggeee Racer!") ...

business example versus internet meme in this thread. Hmm... :p Ridge racer always gets a smile out of me.
 
Kazuharu Miura talks for worldwide sales, not Japanese and nowhere in the article says that this FY's target is only for Japan.
 
Sony has admitted that it will take a loss on each Vita sold. Miura expects this loss to be about ¥5,000 per system at first, falling to ¥2,500 per system in the fiscal year ending March 2013. In that year, Miura expects the system to sell 8.5 million units hardware and 28 million units software.

I'm 95% sure their "losses" were in regard to things like R&D and the whole marketing push, not the actual hardware itself. Because they are selling it at a near "break even point" it will take until 2013 for them to reach a point where they no longer "lose money."
 
Chris1964 said:
Kazuharu Miura talks for worldwide sales, not Japanese and nowhere in the article says that this FY's target is only for Japan.

However, considering the Vita is not scheduled to launch outside of Japan until after the new year and considering the fiscal year ends in March, and that it would be relatively unusual to launch a major new product in the US and Europe in, say, mid January I think it is not unfair to presume that the bulk of sales being predicted must logically come from Japan if not all of them.
 
Sho_Nuff82 said:
The 3DS shipped 3.5 million from February to April, correct?
Yeah, which is what makes this whole estimate so ridiculous. In Japan alone it might be able to get to 2 million by the end of the fiscal year. Even if they missed the Euro launch there's no way it's be lower than 2.5 million especially with how aggressive Sony is with shipments. 2.5 million would be a nightmare for them.
 
Meisadragon said:
unlike the PSP, the Vita is easier to develop for
PSP was very easy to develop for. Vita may be somewhat easier due to it being more powerful and thus requiring less optimisation tricks but the difference shouldn't be big.
Actually, it may even be harder to develop for because it'll have a quad core CPU instead of just one core.
 
Sony can only ship out what they make, I wonder if this analyst has insight into the manufacturing and has an idea of the the kind of output that will be available. Wouldn't surprise me if they go with the conservative route with the launch. A large write down like Nintendo would put the whole company in the red for a fourth consecutive year.
 
bigtroyjon said:
Sony can only ship out what they make, I wonder if this analyst has insight into the manufacturing and has an idea of the the kind of output that will be available. Wouldn't surprise me if they go with the conservative route with the launch. A large write down like Nintendo would put the whole company in the red for a fourth consecutive year.
Sony would be smart to initially undership the vita to help create the allure of demand for its shiny new hardware. I feel like Nintendo learned the wrong lesson from the wii launch when Iwata and company made sure there were an abundance of 3ds units available at launch. Pretty much nowhere sold out, so there was no sense of urgency. Plus a sellout, no matter how small the initial shipment is, always creates a headline and something for sony pr to brag about.
 
I think it's a bit early to be making sweeping judgements about how much it's going to sell by March.

At least wait until we get a release date (for all we know, it could be coming out only at the very end of March. Then it would be impossible for it to sell 2 million units).
 
antonz said:
Article is off on the losses. Sony has already said they will be basically breaking even. Just like Analysts claimed the 3DS only cost 100 bucks yet Nintendo is losing money at 170.
Basically this. Analysts don´t know anything.
 
Gaborn said:
However, considering the Vita is not scheduled to launch outside of Japan until after the new year and considering the fiscal year ends in March, and that it would be relatively unusual to launch a major new product in the US and Europe in, say, mid January I think it is not unfair to presume that the bulk of sales being predicted must logically come from Japan if not all of them.
The Vita launches in all regions this fiscal year so the US and Europe launch dates are between January and March.
 
Mr_Brit said:
The Vita launches in all regions this fiscal year so the US and Europe launch dates are between January and March.

Which is exactly what I said. I'm just suggesting that it won't be early to mid January for example because it's "too close" to the Holiday season, why give up Christmas when you're that close? So I'm suggesting it would likely be in February or March. So, since the Analyst's projection is 2.5 million units sold (which I think we agree means shipped to retailers) I think it is likely that, rather than say holding back 1.25 million units or more for the US and Europe sometime after January 1st (which I would think suggests late january at the EARLIEST but probably February or March) then in context my reply to Chris was meant to suggest that while Kazuharu Miura is indeed apparently talking about worldwide sales it is simply reasonable to guess the majority (and I would think the vast majority) would be likely to come from Japan.
 
Meisadragon said:
Yeah, but he was saying development time. I know the cost will be slightly higher, but unlike the PSP, the Vita is easier to develop for, and working around hardware deficiency is what usually increases development time, which shouldn't be a big factor here. Even the porting process should be lightning quick. I don't disagree with him entirely though, but the development time should be on par with the PSP.

Yeah but that is from a basic technical/programming aspect. You still have art to make and everything that it entails: modeling, rigging, textures, etc. Which all increases. So while the software libraries makes working with the hardware easier, the content creation aspect increases and becomes more expensive.

Consider the average sales amount of a portable game, which in most cases are low, and you can see why many studios were able to make good money on the DS and lost tons on the PSP. So there are the same concerns with the Vita and 3DS.
 
I'm starting to think when I purchase a Vita i'll probably wait for the first major price drop.

Also, I don't think 2.5mil for FY2011 is too far out of the equation once you count all of the early adopters, assuming a worldwide launch does occur. There are always plenty of early adopters for the systems, and i'm very sure it will have average success for the first 1-2 months. What happens after that however, is anyone's guess, especially with the lull of summer just looming around the corner after its launch.

It's essentially going to be out in the same timeframe the 3DS was (in NA anyways), so I think it will be interesting to see how everything works out in the end.
 
Gaborn said:
Which is exactly what I said. I'm just suggesting that it won't be early to mid January for example because it's "too close" to the Holiday season, why give up Christmas when you're that close? So I'm suggesting it would likely be in February or March. So, since the Analyst's projection is 2.5 million units sold (which I think we agree means shipped to retailers) I think it is likely that, rather than say holding back 1.25 million units or more for the US and Europe sometime after January 1st (which I would think suggests late january at the EARLIEST but probably February or March) then in context my reply to Chris was meant to suggest that while Kazuharu Miura is indeed apparently talking about worldwide sales it is simply reasonable to guess the majority (and I would think the vast majority) would be likely to come from Japan.
The vast majority of sales isn't coming from Japan because simply close to 7 million software sales in Japan for a new system in 4 months have one in a million possibitty to happen.
 
Chris1964 said:
The vast majority of sales isn't coming from Japan because simply close to 7 million software sales in Japan for a new system in 4 months have one in a million possibitty to happen.

The accuracy of the analysis is a separate question compared to the practical percentage breakdown of sales likely in the given period.
 
So this analyst is expecting the Vita to fail, because 2.5M shipped in four months in Japan and the launch period in NA/EU is a small number.
 
Spiegel said:
So this analyst is expecting the Vita to fail, because 2.5M shipped in four months in Japan and the launch period in NA/EU is a small number.
We know they're production limited in some form so 2.5million might be all the analyst expects Sony to be able to produce, not necessarily that they'll only be able to sell that many.
 
It feels like they are going to be giving the 3DS a big head start. If they have only sold 2.5 million at the end of the fiscal year they are going to be a long way behind.

Also expecting to sell only 8.5 million pieces of HW for the next full fiscal year seems pretty bad to me. Again that that would i can't help but feel as though that is going to be a long way behind the 3DS.
 
AdventureRacing said:
It feels like they are going to be giving the 3DS a big head start. If they have only sold 2.5 million at the end of the fiscal year they are going to be a long way behind.

Also expecting to sell only 8.5 million pieces of HW for the next full fiscal year seems pretty bad to me. Again that that would i can't help but feel as though that is going to be a long way behind the 3DS.

What Analyst thinks &#8800; what Sony thinks &#8800; what will actually happen
 
StevieP said:
BurntPork commitedApana was being sarcastic. Stump probably has figures (or somebody did, posted in a thread long ago) - the amount made from Blu Ray royalties was and is almost insignificant. Like <couple hundred million LTD insignificant, with royalties currently being much lower than when it launched.

wow I never knew that, if that's the case why were Toshiba and Sony so desperate to when the HD format war if there was hardly no money to be made in it?
 
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