Support NeoGAF

[Welfare]

XBO MoM rise was 114%

YoY rise is 51%

Weekly average

May: 139k / 4 weeks = 34,750

June: 297k / 5 weeks = 59,400

PS4 MoM rise was 140%

YoY rise is 36%

Weekly average

May: 152k / 4 weeks = 38,000

June: 365k / 5 weeks = 73,000

Wii U MoM rise was 67%

YoY drop is 50%

Weekly average

May: 42k / 4 weeks = 10,500

June: 70k / 5 weeks = 14,000

PS4 v ONE gap

~770k

 

[Chobel]

If 121k is for both, the PS4 sold 244k in the first 3 weeks of June alone.

Maybe many people bought other SKUs beside AK bundle in the last 2 weeks? That 244K isn't necessarily limited to the first 3 weeks.

 

[Averon]

I wonder if Sony is rethinking the a PS4 price cut this year. If they are still pulling these numbers at $399, nearly two years into this generation, I see little reason to rush a price cut for this fall.

 

[RibMan]

So how likely is a permanent drop to $300 for any console? Sony has a good opportunity to capture a more casual audience with the Star Wars/Disney Inf deals, Tearaway and CoD, but not at $400.

I'd say a permanent drop to $300 is very likely. While the PS4 would do very well at that price, I believe the 'magic' casual audience price is $249.99. Bundles with games like Star Wars and COD could come in between $300 and $350, depending on the hard drive size + additional pack-ins.

 

[Obliterator]

Maybe many people bought other SKUs beside AK bundle in the last 2 weeks?

Batman didn't launch till June 23rd. A huge chunk of hardware this month undoubtedly came from the GS trade promo. Could be a factor in strong early sales in front half of the month

 

[jroc74]

creamsugar to the rescue...lol Thanks for the pie at midnight.

XBO MoM rise was 114%

YoY rise is 51%

Weekly average

May: 139k / 4 weeks = 34,750

June: 297k / 5 weeks = 59,400

PS4 MoM rise was 140%

YoY rise is 36%

Weekly average

May: 152k / 4 weeks = 38,000

June: 365k / 5 weeks = 73,000

Wii U MoM rise was 67%

YoY drop is 50%

Weekly average

May: 42k / 4 weeks = 10,500

June: 70k / 5 weeks = 14,000

PS4 v ONE gap

~770k

Thanks for this. So...the gap last month was 13k...this month its 68k

That looks like an increase to me....and some of us guessed right at Splatoon giving the Wii U a bump.

 

[Obliterator]

creamsugar to the rescue...lol Thanks for the pie at midnight.



Thanks for this. So...the gap last month was 13K...this month its 68K

That looks like it increase to me....

It did increase but many thought the gap would be larger due to Batman bundles

 

[Yurikerr]

At this rate i think Sony is perfectly happy in riding the special bundles strategy.

Coming Black Friday they can offer some bundles with one of the newest games (COD/AC/SWBF) + old 1st party game and ps+ at $349 or even $379.

Even if MS sell more they still are going to make crazy amounts of money, even without a price drop.

But i think that if the price really drops, coming november the exclusive games available won't make any difference.

 

[The Mad Draklor]

It did increase but many thought the gap would be larger due to Batman bundles

I thought so, too, until I saw that the XBO was getting a lot of trade-in deals which helped mitigate the gap.

 

[Fat4all]

XBO MoM rise was 114%

YoY rise is 51%

Weekly average

May: 139k / 4 weeks = 34,750

June: 297k / 5 weeks = 59,400

PS4 MoM rise was 140%

YoY rise is 36%

Weekly average

May: 152k / 4 weeks = 38,000

June: 365k / 5 weeks = 73,000

Wii U MoM rise was 67%

YoY drop is 50%

Weekly average

May: 42k / 4 weeks = 10,500

June: 70k / 5 weeks = 14,000

PS4 v ONE gap

~770k

Hmm... What are the odds the gap gets to 1 mil by the holidays, especially with MGS coming soon?

 

[jroc74]

It did increase but many thought the gap would be larger due to Batman bundles

Yea...I was one. But not that much. I really thought BC did something for the XBO.

 

[Obliterator]

Pricing strategy for Sony this holiday is gonna be hella interesting to watch

 

[Conezays]

Glad Splatoon's doing so well for Nintendo; it's a great game.

 

[Thunder Monkey]

Hmm... What are the odds the gap gets to 1 mil by the holidays, especially with MGS coming soon?

I'd say it's going to get there.

Even with the volatility between the two this year, you've still got only 230k units and four months.

 

[StrongBlackVine]

Hmm... What are the odds the gap gets to 1 mil by the holidays, especially with MGS coming soon?

Depends on how popular that new Destiny bundle will be. I'm thinking 1 million gap before November is not happening though unless July has a similar gap to this month. Plus Halo 5 in October will make that a close race.

I'm assuming the MGSV bundle isn't coming to the U.S. If that happens then my prediction changes.

 

[Javin98]

Hmm... What are the odds the gap gets to 1 mil by the holidays, especially with MGS coming soon?

It's possible, but it depends on whether the MGSV bundle will be released in the US and how well the Batman AK bundle continues to do. Also, a price drop to $299 in September can hugely increase the sales.

 

[Etnos]

That was a good spin. E3 was the week before PS4 Batman launched.
Not really.

I mean sure... spin I guess.. . He is a Xbox marketing lead, like... What do you want him to say?

 

[FerDS]

Pricing strategy for Sony this holiday is gonna be hella interesting to watch

Totally

 

[ZSaberLink]

So cream has disappeared....?

 

[DeepEnigma]

If the consoles keep having MoM and YoY increase, do you think that will effect the chances of a price cut?

Or do you think there are other factors "in between the lines", such as these bundles, more games available, etc making the YoY more prevalent than without, which would still call for a price cut?

It does seem that bundles are the new "price cuts" this gen so far.

 

[Thunder Monkey]

I mean sure... spin I guess.. . He is a Xbox marketing lead, like... What do you want him to say?

Yeah, those arguments always elicit a chuckle from me.

I mean, of course it's spin. What else would anyone reasonably expect from a marketing lead, with a product that is perpetually lagging its direct competition?

 

[Welfare]

If the consoles keep having MoM and YoY increase, do you think that will effect the chances of a price cut?

Or do you think there are other factors "in between the lines", such as these bundles, more games available, etc making the YoY more prevalent than without, which would still call for a price cut?

It does seem that bundles are the new "price cuts" this gen so far.

Bundles and massive trade in deals are helping a lot.

 

[Etnos]

Yeah, those arguments always elicit a chuckle from me.

I mean, of course it's spin. What else would anyone reasonably expected from a marketing lead with a product that is perpetually lagging its direct competition?

He actually acknowledge Sony doing great... I mean what a horrible human being, all the spinning and stuff.

 

[Chobel]

I mean sure... spin I guess.. . He is a Xbox marketing lead, like... What do you want him to say?

It was a compliment, I mean I said it's "good".

He actually acknowledge Sony doing great... I mean what a horrible human being, all the spinning and stuff.

LOL I certainly didn't say that, you don't need to act defensive.

 

[allan-bh]

I believe creamsugar forgot about one or two Batman versions (There's regular, Limited and Serious Editions).

Callahan said that with bundle Batman is the best selling tittle of 2015 so far and MK X sold more than 1.25m just on april.

 

[DeepEnigma]

Bundles and massive trade in deals are helping a lot.

Yeah, they appear to be the replacement for MSRP cuts this gen. Since it makes retailers happier, makes manufacturers more profit on the devices build runs, and those subsidized deals are easier to pad with licensing cash and pre-owned resale profits for retailers.

 

[odhiex]

Pricing strategy for Sony this holiday is gonna be hella interesting to watch

They surely believe that the Call of Duty bundle this holiday will do so well.

 

[Obliterator]

Bundles and massive trade in deals are helping a lot.

Yeah man, idk. On one hand I think Sony at the very least is just due. It'll be 2 years into the generation and we are still sitting at launch pricing.

Then you look though at how healthy PS4 is at the price its at, and then think about FO4 and Battlefront this holiday being current gen only and you realize they will more than likely have no issues moving hardware at current pricing structure.

Its tough as hell to call really, could go either way. Maybe just more big trade deals and bundles

 

[DeepEnigma]

He actually acknowledge Sony doing great... I mean what a horrible human being, all the spinning and stuff.

That went off the deep end fast.

So lets play the deep end game:

One could also read it (knowing his arrogance in the past), as a backhanded compliment of, cause bundles tho.

 

[Mooreberg]

If not for QA issues, Warner would really be batting 1.000 so far this year. Very impressive.

 

[allan-bh]

1 > 1.1m, PS4 ~ 61.59%.

Hey cream, can you check if this includes all editions outside of bundle? It seems low based on public info.

 

[Imperfected]

If the consoles keep having MoM and YoY increase, do you think that will effect the chances of a price cut?

Or do you think there are other factors "in between the lines", such as these bundles, more games available, etc making the YoY more prevalent than without, which would still call for a price cut?

It does seem that bundles are the new "price cuts" this gen so far.

I expect Sony's price cuts to coincide more with actual reductions to the cost of production due to economics of scale in components, to be honest. Their permanent price cut will probably be a direct result of the cost of production having permanently dropped below a certain threshold, and might be accompanied by a new (not necessarily new SKU, but in terms of build) version of the hardware.

That should be happening fairly soon, though, unless there are mitigating factors I'm not aware of, such as the ones Nintendo had with some of the fabs producing chips for them a year or so back.

 

[Etnos]

It was a compliment, I mean I said it's "good".

LOL I certainly didn't say that, you don't need to act defensive.

alright, my bad... rub me the wrong way

apologies

 

[StarBlazers1]

Great numbers for both systems. Healthy ecosystems for both. Holiday will come down to PS4 SW:BF, COD:BO3, and AC bundles vs. Xb1 Halo V, Forza 6, Gears, and Fallout 4(?) Bundles. Also any price drops. Going to be a fun holiday Season

 

[rokkerkory]

great month for both PS4 and x1

 

[Super_Cobra]

Sony needs to drop the price on ps4. I want to see how much damage they can do at $299 and how long will it take ms to react to that.

 

[...Scatter...]

Is it officially time to bury the "console sales will be down annnnnny moment now" negativity. People are buying. Our hobby is growing. Everyone deal with it

 

[StarBlazers1]

Sony needs to drop the price on ps4. I want to see how much damage they can do at $299 and how long will it take ms to react to that.

That would be a terrible move on Sony's part. They dont need to do that. Keep this division profitable. More profit leads to more investment in new games and features. They're winning. They don't need to get too agressive right now.

 

[Thunder Monkey]

alright, my bad... rub me the wrong way

apologies

I read it the same way and I love Chobel.

Harmless misreading of intention in text. Happens to the best.

 

[A_Gorilla]

Is it officially time to bury the "console sales will be down annnnnny moment now" negativity. People are buying. Our hobby is growing. Everyone deal with it

You should know GAF by now: being wrong just makes people double down and get banned...

 

[DeepEnigma]

I expect Sony's price cuts to coincide more with actual reductions to the cost of production due to economics of scale in components, to be honest. Their permanent price cut will probably be a direct result of the cost of production having permanently dropped below a certain threshold, and might be accompanied by a new (not necessarily new SKU, but in terms of build) version of the hardware.

That should be happening fairly soon, though, unless there are mitigating factors I'm not aware of, such as the ones Nintendo had with some of the fabs producing chips for them a year or so back.

Yeah, this is usually how it is done. And they did shave some good cost with the 1200 model.

But my question is, if the sales keep increasing YoY, what is the incentive/chance to cut the price this Holiday versus sticking with bundles and promotions that probably cost them less to do?

Only way I see them lowering at this point, is a reaction to MSFT, or possibly going straight for the jugular this holiday with an announcement at PGS (or that time-frame).

Spoiler

Watch MSFT cut the price this Gamescon, or Sony announce one in a press release that week as a conference-less "megaton", lol.

 

[Final Verdict]

As I expected, XBO is closer to PS4 than many expected. Less than 70K.

Yeah, PS4 was about what I thought...a bit higher, but X1 beat my expectations by quite a bit!
Too bad my predictions are gonna tank this month:/

 

[EventHorizon]

I wonder if Sony is rethinking the a PS4 price cut this year. If they are still pulling these numbers at $399, nearly two years into this generation, I see little reason to rush a price cut for this fall.

The PS4 sells well when there are popular 3rd party titles also selling. The PS4's higher price hurts them when that isn't the case. There are enough big titles coming out at the end of the year that keeping the $399 price could work.

However, I expect Microsoft to make another strong push on price/value for the holidays. If the XB1 gets close to a $299 price or equivalent that would be enough to break the PS4's momentum if it is still stuck at $399. Keeping that momentum alone is probably worth a price cut due to the marketing advantage it gives them. Sony has a chance to cross a tipping point where its market share alone would be a huge benefit to the PS4. It'll become the default console to buy and have first crack at any exclusive deals.

I think another reason why Sony might lower the price of the PS4 is that Project Morpheus is coming out next year. The more consoles they sell, the easier it will be to sell the VR addon. Therefore it makes sense to sell as many consoles this holiday season as possible before the Morpheus debut in the first half of 2016.

 

[Super_Cobra]

That would be a terrible move on Sony's part. They dont need to do that. Keep this division profitable. More profit leads to more investment in new games and features. They're winning. They don't need to get too agressive right now.

They can recoup that money with ps+ sales. More ps4s out there = more ps+ subs.

 

[Chobel]

alright, my bad... rub me the wrong way

apologies

No problem man.

 

[Javin98]

Geez, now we're back to Sony doesn't need to drop the price of the PS4. It's funny how it works the other way when it's a slow month. Back in April and May, some people were like "Terrible sales for a market leader. Consoles are dead!". In June, they're like "The PS4 is selling so well. No price drop needed!", although these are two different groups of posters. Well, at least the latter is not as bad as the former.

 

[Imperfected]

But my question is, if the sales keep increasing YoY, what is the incentive/chance to cut the price this Holiday versus sticking with bundles and promotions that probably cost them less to do?

I could be mistaken, but if memory serves they followed a more or less normal price reduction schedule for the PS2 even in spite of the fact it had significantly less substantial competition on the market.

They probably still remember the benefits they reaped for doing so, and if I had to guess, would plan on following a very similar model as long as they're maintaining something resembling a PS2-like trajectory in sales. The PS4 is doing great, but Sony hasn't forgotten the real Golden Age of their entertainment business, I don't think.

 

[Welfare]

Geez, now we're back to Sony doesn't need to drop the price of the PS4. It's funny how it works the other way when it's a slow month. Back in April and May, some people were like "Terrible sales for a market leader. Consoles are dead!". In June, they're like "The PS4 is selling so well. No price drop needed!", although these are two different groups of posters. Well, at least the latter is not as bad as the former.

If the PS4 were discontinued we nor Sony would have to worry about it.

 

[Final Verdict]

Geez, now we're back to Sony doesn't need to drop the price of the PS4. It's funny how it works the other way when it's a slow month. Back in April and May, some people were like "Terrible sales for a market leader. Consoles are dead!". In June, they're like "The PS4 is selling so well. No price drop needed!", although these are two different groups of posters. Well, at least the latter is not as bad as the former.

Haha, well they will need a price drop eventually, but I called it that they would take a bundle heavy-no price drop strategy for most of the year, and it will work.

Now the holidays will be tricky, but I think that they will simply do big deals, and save the price drop for the spring when UC4/SFV launches.

 

[DeepEnigma]

I could be mistaken, but if memory serves they followed a more or less normal price reduction schedule for the PS2 even in spite of the fact it had significantly less substantial competition on the market.

They probably still remember the benefits they reaped for doing so, and if I had to guess, would plan on following a very similar model as long as they're maintaining something resembling a PS2-like trajectory in sales. The PS4 is doing great, but Sony hasn't forgotten the real Golden Age of their entertainment business, I don't think.

Ok, I see what you are saying. It does seem reminiscent of the PS2 era so far with the PS4 and what it is doing.

Did a quick Google, because I could not remember the first PS2 price cut...

October 2000 $299 (launch price)
May 2002 $199 (-$100)
May 2003 $179 (-$20)
May 2004 $149 (-$30)
April 2006 $129 (-$20)
April 2009 $99 (-$30)

So it is due, maybe a Gamescon stealthy announcement just before the MSFT press conference. They are now with a reduced cost 1200 model coincidentally that just hit as well.

It might have already happened. The new SKU (CUH-1200) is lighter and consumes less power, so at least some of the internals have been changed. It's possible that whatever they've done also decreased the BOM of the system a fair, and they haven't passed that back onto consumers yet because there's no real reason not to, since sales, while not as good as last year (as far as NPD is concerned), haven't been necessarily bad. If the BOM of the new systems is lower than the older ones, it puts them in a great position to be able to clear the channel of old stock naturally, and be completely ready to drop the price come Sept/Oct/Nov.

Agreed. The pieces are definitely in place, but that YoY is ever increasing, lol.