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Sony denies PSP production cuts (Gamespot)

Sony denies PSP production cuts

[UPDATE] Reports say Sony's current 12 million PSP production goal is actually 6 million less than its initial estimate--a claim Sony flatly denies.

[UPDATE] Sony denies it has reduced its PSP orders in any way. "I'm not sure where the 18 million claim came from," a Sony Computer Entertainment America rep told GameSpot. "We announced in the Sony earnings call that the fiscal year 2005 PSP shipment targets were 12 million units worldwide. We are still on target and there has been no reduction in forecast."

The Nikkei BP article also talks about the PlayStation 3, forecasting that its mass production could begin as early as the end of 2005. However, the paper says full-scale production is more likely to start in the middle of Q1 2006.

http://www.gamespot.com/news/2005/06/22/news_6128025.html
 
Silent_Echo said:
Interesting that Sony would comment on something that was merely a supposed mis-quote.

Well normally when a company reduces their sales forcasts investors begin to worry.
 
I questioned the validity of the Nikkei news immediatly a few days ago.
12 million is already a really optimistic target,they have never talked of 18 million units.
 
norinrad21: Here I am.

No doubt 12 million will be spun into some sort of failure. I mean, only 12 M in its first year and a half!? That's Virtua Boy territory!
 
Yah, it's strange they didn't get the old "We don't comment on rumors or speculation" nonsense. Looks like damage control to me.
 
That's not a rumor or speculation though, it's a factual error.

The weird thing is that all this data is probably available somewhere. Forecasts ought to be in the company's annual report at least. Before that recent article, I never heard the 18M figure either, and I bet none of the "it's damage control" people can find a source for it.

Edit: Bold for emphasis.
 
"We are still on target and there has been no reduction in forecast."
2165787.jpg
 
Mashing said:
Yah, it's strange they didn't get the old "We don't comment on rumors or speculation" nonsense. Looks like damage control to me.

That's not speculation.
That's Nikkei writing uncorrect things,it's quite different.
 
Wouldn't the Nikkei printed a retraction or atleast a correction if their information was flawed? Is the Nikkei a daily publication (like a newspaper) or just weekly?
 
Merlin said:
Damage control!

:lol

Sony cuts production by 6M units!!!! Sony is sooo dead. DS forever.

Sony says, no that's not true. DAMAGE CONTROL BABY!!!! Running scared.




Some of you are really unbelievable.
 
Mashing said:
Yah, it's strange they didn't get the old "We don't comment on rumors or speculation" nonsense. Looks like damage control to me.

companies only give that "we don't comment on rumors" line when there is some truth behind the rumor, when its just misinformation companies will just shoot it down like what Sony just did
 
http://www.bloomberg.com/apps/news?pid=10000101&sid=aV3aWiJ9Hwhw&refer=japan

May 26 (Bloomberg)

Sony expects to ship 12 million units of the PSP this fiscal year. The company, which started selling the device in Japan on Dec. 12 and in the U.S. in March, had shipped 2.97 million units as of March 31. Nintendo, which reports full-year earnings today, said it probably shipped 6 million DS players as of the end of March. The DS has two screens, unlike most handheld game players, and allows users to control games by touching one of the screens.

This, from an article about how they may outsource production to meet that 12M target. No mention of 18M anywhere.
 
I thought that 18 million came from their total production in 2005. Which would include Jan-March of this year, when Sony finally caught up to demand in japan and launched in the USA.

I'm going to side with Nikkie side of the story for the time being. Sony had been claiming that would begin making 1 million units a month and going to bump that up to 2 million. Somewhere down the line, they must have been planning more than 12 million a year.
 
As I understand it, Nikkei's 18 million figure came from the orders that Sony had placed with its suppliers in Japan, then revised down.

So I doubt an SCEA spokesperson would be clued into that, as it's investigative reporting done entirely in Japan.
 
So why is only selling 12M in a year news again? Oh, because maybe they once thought, internally, that it would be 18M? Oh, my, they're clearly screwed.

I think an awful lot of people are going to be upset when the PSP is still in healthy existence a year from now.
 
Ignatz Mouse said:
http://www.bloomberg.com/apps/news?pid=10000101&sid=aV3aWiJ9Hwhw&refer=japan

May 26 (Bloomberg)



This, from an article about how they may outsource production to meet that 12M target. No mention of 18M anywhere.
That article is also misquoting... 2.97 million was the number of PSPs produced by March 31st, not shipped to retail. SCEI gives production totals, not shipped in totals from what I understand (unlike Microsoft or Nintendo).
 
Ignatz Mouse said:
So why is only selling 12M in a year news again? Oh, because maybe they once thought, internally, that it would be 18M? Oh, my, they're clearly screwed.

I think an awful lot of people are going to be upset when the PSP is still in healthy existence a year from now.

I think the only people that are upset are taking this too seriously. No need to run to Sony's aid in a huff, they will sell the same number of PSPs either way.
 
Jarrod: I posted it for the reference to 12M, while the 18M number is apparently from an unnamed source at one of Sony's suppliers.

Which holds more water: heresay from the development chain, or the company's stated goals?


Not that Sony might not have thought, at one time, that they might make 18M. but that's a far cry from lowering an official forecast.

Not that any of this matters-- anythign to spin the PSP into a failure is hot right now on GAF. PSP will be the first system to sell over 12M in a year and a half that was a failure, as far as I can tell.

PSP AM CRY.
 
Which holds more water: heresay from the development chain, or the company's stated goals?

Would this be similar to say 60mpps numbers vs what a real company actually encounters in real life? I don't think it is difficult to see that they paint pretty pictures. Shipped vs sitting in some warehouse, whatever.

While I'm sure that Sony knows internally what goes on in thier company, to draw the conclusion that they are sharing all that information is kinda silly. All companies will do thier best to make themselves look good. Nothing wrong with it.
 
aka: I don't trust companies not to spin things, but what I am saying is that it's pretty silly the amount of noise made over this, considering that the company's official forecast was 12M and has not changed. Sony says "hey, our forecast has not changed" and we get more cries of damage control. We got a 300+ post thread on this the other day, becuase somehow it was more evidence that the PSP was in trouble. All missing the point that 12M units in it's first full year is a heckuva lot, and if they sell that many, the PSP is a success.
 
If I remember right, the the only direct insight into the volume of SCE's production orders to suppliers for PSP came from this DigiTimes news item back on 11/22/04:

http://www.digitimes.com/news/a20041122B3120.html

It reports one supplier contracted to manufacture 700,000 of the PSP chassis/mo, which was estimated at 70% of the total outsourcing for the PSP chassis. So, 1 million/mo, which fits pretty exactly with their shipment target of 12 million for fiscal year 2005.

There was talk by Kutaragi in early 2005 about possibly ramping up production to more than 1 million PSPs/mo (referenced in the bloomberg article SC linked to) and actually doubling to 2 million/mo "by summer". So that would go towards what the Nikkei BP article reported a few days ago about Sony telling suppliers of PSP components in early 2005 to expect orders for 18 million units.

So it seems they were thinking of maybe revising up their initial shipping targets in early 2005 but never actually went through with it. They decided to stick with the initial targets they set. Nikkei may have gotten wind of initial talks by Sony with PSP component suppliers about their capability to ramp up production and that's where the 18 million figure comes from.
 
Ignatz Mouse said:
Jarrod: I posted it for the reference to 12M, while the 18M number is apparently from an unnamed source at one of Sony's suppliers.

Which holds more water: heresay from the development chain, or the company's stated goals?


Not that Sony might not have thought, at one time, that they might make 18M. but that's a far cry from lowering an official forecast.

Not that any of this matters-- anythign to spin the PSP into a failure is hot right now on GAF. PSP will be the first system to sell over 12M in a year and a half that was a failure, as far as I can tell.

PSP AM CRY.
I don't disagree, just pointing out the misquote in that article. Nobody's infallible.

Also, I don't see anyone claiming Sony lowered an "official forecast", rather they're claiming Sony lowered intial order expectations for component suppliers. Which is entirely possible really, despite denials from a subisidiary on the other side of the planet.
 
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