PSP Pre-order madness starts up.

timlot

Banned
"IGN decided to skip out on waiting all night for this last PSP pre-order opportunity and instead spent the night in a cozy bed with Dragon Quest VIII. Early Saturday morning, we headed out to Sakuraya and saw the following:

adventures-in-pre-ordering-2-20041203034838932-000.jpg


That's right, the once innocent line of five people had grown to nearly 40. This was at 7:30AM, after the Tokyo train system had started up for the day (the trains stop in Tokyo at around 1:00am). We were worried that we'd have no chance of making the cutoff for pre-orders, but decided to wait in line anyway.

And our waiting paid off. Sakuraya staff arrived at the store at 8:00am, a couple of hours prior to normal business time and began working through the line, giving people pre-order slips for the system and letting them leave the cold to go home. Money down was not required.

adventures-in-pre-ordering-2-20041203034839541-000.jpg


The staff revealed that 50 PSP systems (37 Value Pack, the rest the system only) would be available from the store on 12/12. Those not making the cut-off would be placed in priority for the second shipment, although the store wouldn't commit to when that would take place.

Second shipments didn't concern us too much, though, as we walked away with a pre-order for IGN PSP #5, guaranteed on 12/12."

http://psp.ign.com/articles/570/570653p1.html
 
Insertia said:
That's crazy.

I expect PSP to sell out of its entire shipment on day one.
Gee, you think? :P

Crazy stuff though. I can't wait to see how everything goes down on launch day. Hopefully people stay civilized. :P
 
Amir0x said:
Man, Sony is going to rue the day it only had 200,000 units to ship.

From NCS:

"The Sony PSP ships in 2 weeks. Shortages on the launch date of Dec 12 are expected. Over the past few days, the torrent of inquiries concerning how the supplies will be handled in Japan have increased but we have little new information from distributors at this point. We will post an update when we have further details on how the units will be allocated. Our experience:
The goal of any game manufacturer is to have a huge launch. One way to help create buzz and the perception of success is to limit supply. Once the launch is over, it is not uncommon to flood the market with units. The ultimate goal after the launch is not to hoard supply but to sell mass units into the marketplace and quickly establish a strong user base."
 
I heard about that, but I don't believe that's necessarily true here. I read an article where Sony is being careful with how many units they ship of PSP because of how much money they are losing on it; so in case it's a failure they don't have so many units on shelves. They are focusing more on PSTwo production than PSP production, for instance.

But we shall see how they flood the shelves.
 
There's no way Sony even considers the possibility that this thing will be a failure. At this point, such a thing is inconceivable.
 
Speevy said:
There's no way Sony even considers the possibility that this thing will be a failure. At this point, such a thing is inconceivable.

Well, here's what I read...

Source:

Gameindustry.biz said:
Consumer electronics giant being cautious in its approach to PSP

Low initial shipment figures for Sony's forthcoming PlayStation Portable are down to a decision to focus on manufacturing the profitable PlayStation 2 hardware, according to a spokesperson for the Japanese giant.

Comments attributed to SCE spokesperson Kenichi Fukunaga in an Agence France-Presse article stated bluntly that manufacturing resources are being directed to the PlayStation 2 - a new slimline version of which was introduced earlier this month - rather than the PSP.

"We are entering a phase where we profit greatly from PlayStation 2," Fukunaga-san told the agency. "It was a matter of reaching the optimum allocation of our resources."

Only 200,000 units of the PlayStation Portable are expected to ship in Japan in time for the launch of the system on December 12th, with a further 300,000 anticipated by the end of the year.

According to Fukunaga-san, this is down to a cautious approach on the part of the company with regard to the PlayStation Portable - perhaps as a direct result of the firm's embarrassing failure with the much hyped PSX home media system last Christmas.

"We are being very careful about this project," he confirmed. "We did not want to have lots of PSPs on inventory."

This approach contrasts with Nintendo's bullish attitude to its latest handheld console, the Nintendo DS, which launched in the United States last week and is expected to sell five million units worldwide by the end of Nintendo's financial year in March 2005.

Much of Sony's caution may be as a direct result of the low price point for the PSP, with the firm thought to be taking a significant loss on each hardware unit sold. Indeed, Fukunaga-san confirmed that the PSP business is not expected to be profitable for several years - compared to the Nintendo DS business, which is actually expected to contribute positively to Nintendo's bottom line for FY 2005.

However, the low price point should be beneficial for the device, he believes. "At that price, software houses should be encouraged to create game titles," he commented. "Competitive pricing and software titles should push up sales in the short run."

So, I don't know if it's just a matter of holding units back to boost buzz.
 
Amir0x said:
Much of Sony's caution may be as a direct result of the low price point for the PSP, with the firm thought to be taking a significant loss on each hardware unit sold. Indeed, Fukunaga-san confirmed that the PSP business is not expected to be profitable for several years - compared to the Nintendo DS business, which is actually expected to contribute positively to Nintendo's bottom line for FY 2005..

ouch. Several Years? Xbox portable = Psp
 
playing it safe? or minimizing losses? (seeing as how they're taking a hit on each unit)

Wouldn't they save a bunch if they don't create a bunch? :lol
 
Amir0x said:
I heard about that, but I don't believe that's necessarily true here. I read an article where Sony is being careful with how many units they ship of PSP because of how much money they are losing on it; so in case it's a failure they don't have so many units on shelves. They are focusing more on PSTwo production than PSP production, for instance.

But we shall see how they flood the shelves.

I don't think they're worried about the unit being a failure; actually, they seem to be preventing an overly successful launch as far as unit sales are concerned because of the huge losses that will result. It's the same reason why a store like Best Buy will only have twenty or so $499 laptops on Black Friday when they could have easily sold two thousand.
 
neptunes said:
playing it safe? or minimizing losses? (seeing as how they're taking a hit on each unit)

Wouldn't they save a bunch if they don't create a bunch? :lol

Both ways - I see Sony having a difficult time in the coming 2 years

1) PSP and their attempts to sustain the business model.

2) Having to lauch/prep PS3.

Maybe Sony should have held off doing PSP til 1-2 years after PS3 was launched. Let's see how well this venture goes. Nintendo did force their hand with the DS pricing. Having to launch at the price point is their way of ensuring that years+months of RnD on PSP doesn't ensure a still born console. I think it will pay off though... but they're really going to feel it. Sony's console business is their only profitable arm left (I think that's about right? Feel free to correct).
 
I think systems will trickle out for many months until the system is only a 100 $ loss per unit instead of a 200 dollar loss. Also, it may explain why a number of games are getting delayed and on top of those delays , why I've heard rumours the PSP won't be out here for quite awhile. September even, by then they'l have made a small stockpile of the things that they never shipped and newer systems will cost less to manufacture, some of the kinks in the battery will have been worked out. September 9th 2005, just watch UrNOTe GAFFERS. :P
 
Insertia said:
That was a stab at DS not being able to sell even half of its shipment on day one. :D

Still, their half shipment sales > PSP shipment, no? ;)

I've already put down my $10 to guarantee my PSP whenever it decides to launch over here. I learned my lesson with the PS2. :D
 
I was in that line and there was a group of 15 Chinese people in front of me and two behind me. The two behind me were little girls who could barely speak Japanese -- I couldn't picture them carrying around a PSP system.
 
AndriaSang said:
I was in that line and there was a group of 15 Chinese people in front of me and two behind me. The two behind me were little girls who could barely speak Japanese -- I couldn't picture them carrying around a PSP system.


Ah, the modchip will be out in no time.
 
TheGreenGiant said:
Both ways - I see Sony having a difficult time in the coming 2 years

1) PSP and their attempts to sustain the business model.

Sell units, train developers, collect royalties on games, R&D next revision. They've been doing this for years - not sure why this would be an unexpected product lifecycle for them.

2) Having to lauch/prep PS3.

And having to launch that new line of DVD players, the iPod competitor, some new TVs, and wait - perhaps a company that large doesn't have the EXACT SAME PEOPLE working on each project.
 
The staff revealed that 50 PSP systems (37 Value Pack, the rest the system only) would be available from the store on 12/12. Those not making the cut-off would be placed in priority for the second shipment, although the store wouldn't commit to when that would take place.

Fifty units.

FIFTY UNITS?!!?!??!?!

FIFTY-FUCKING-UNITS!?!?

This is fucking SAKURAYA in fucking SHIBUYA! They had at least fifty CRATES containing fifty Nintendoods each earlier this week!

Even with the PS2 launch, my local Osaka Toys R Us in the MIDDLE OF NOWHERE got 200 units. This is one of the biggest (if not the biggest) electronics chains in the center of Shibuya. WTF?
 
Sho Nuff said:
Fifty units.

FIFTY UNITS?!!?!??!?!

FIFTY-FUCKING-UNITS!?!?

This is fucking SAKURAYA in fucking SHIBUYA! They had at least fifty CRATES containing fifty Nintendoods each earlier this week!

Even with the PS2 launch, my local Osaka Toys R Us in the MIDDLE OF NOWHERE got 200 units. This is one of the biggest (if not the biggest) electronics chains in the center of Shibuya. WTF?

The initial launch shipment, as already stated, is 200k.
 
border said:
Wow.....more people showed up for the IGN PSP pre-order story than the IGN DS launch story.
except not, according to the "update" they posted, where any other store but the one they were at had huge lines.
 
I fully expect this to be PS2 Launch: Extreme Edition.....with similar stories of grandmas getting mugged for PSP systems, schoolgirls having sex for PSPs, massive crowds, and so much general craziness that it even gets covered in Western media.
 
border said:
Wow.....more people showed up for the IGN PSP pre-order story than the IGN DS launch story.
You did read where they updated the story with areas that had enormous lines all the way around the block, right?
 
The Japanese PS2 launch only had something like 300-400K units on hand, but Sony counted outstanding internet purchases as "already sold" (even though they wouldn't ship until the end of the month). So for a bit they bragged about selling something like 960K "at launch" :lol
 
Big UPs to the Korien Toys R Us! OSAKA REPRESENT!!!!!!

That sakuraya business is really sad. I can't wait to see the mayhem at Yodobashi next sunday morning.
 
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