Sony cuts back PS3 production !!! link

Wii is really killing the competition :twisted:

Colin Sebastian of Lazard Capital Markets has predicted that Nintendo's increased production targets for the Wii still won't help supply and demand see eye-to-eye until early 2008, but also notes that Sony is slowing down production for the PS3.

In a GamePro report just last month, IDC analyst Billy Pidgeon predicted that Nintendo would not be able to fully supply Wii demand until 2009 at the latest. Although most of his analyst brethren have not yet committed to such a late date, another analyst has recently chimed in with a recent investor note, forecasting that Wii shortages would easily last until this year's holiday season.

"Demand still appears to exceed supply, and we believe that shortages could persist through the remainder of the year, including the key holiday period," said Colin Sebastian of Lazard Capital Markets, in a report by Next-Gen.biz.

Based on sales data from both Nintendo and GameStop, Sebastian also comments that the console developer is fulfilling its target of 1.5 million Wii units per month, but those numbers may not be good enough to satisfy the nation's hunger for Nintendo's next-gen system.

Oddly enough, Sony seems to find itself in a sort of reverse situation. Sebastian also states in his investor note that the company is "temporarily" slowing down production for the PlayStation 3, according to "reports from Asia". He believes that Sony will return to full-scale console production as soon as costs stabilize and its more anticipated software titles hit the market. He also notes that such a scenario makes the chance for a PS3 price cut "less likely" this year.

http://www.gamepro.com/news.cfm?article_id=113908

i highly doubt thatR-Dot-Yung

You highly doubt that sony is cutting back their production? Why?  It seems like a pretty logical step to me.   Sony said they shipped 5.5 million units for the fiscal year (340,000 less than Nintendo's Wii).  There is some debate about how many have been sold, but lets say 3.5 million.

That means there are 2 million PS3's sitting on shelves.   Look at the NPD numbers and its pretty apparent that the demand just isnt there right now. So what are they going to do with the new PS3's being made?

Sony either has to cut production, or rent warehouse space  to store the PS3's they are making and lose even more money.

AHH the downfall of sony aint it great?

Concidering how many units are out on shelves and the selling rate of them, it shouldn't come to a surprize. A slow selling system = cut back production. At least Sony can say they have retailers well supplied.hotdaisy18

Hmm interesting so now having stores well supplied with systems that dont sell is better than having a console shortage due to high demand? :P

[QUOTE="hotdaisy18"]Concidering how many units are out on shelves and the selling rate of them, it shouldn't come to a surprize. A slow selling system = cut back production. At least Sony can say they have retailers well supplied.MARIOSDAD_basic

Hmm interesting so now having stores well supplied with systems that dont sell is better than having a console shortage due to high demand? :P

Putting words into my mouth now? I don't see the PS3 having such a high demand right now. Will it ever? I guess it depends on a few factors. Lowering the price and gaining exclusive titles. But even still, the PS3 just isn't selling. You have to be a moron to not see it that way. Look at Nintendo and the Gamecube. Didn't stop them from moving on with their consoles. Just expect MS, Sony and Nintendo to be in the game business for a very long time.

LOL!!! not even a year has passed and Sony is lowering it's production on it's blu-ray delivery device AKA PS3..... just raise the white flag already, is it a pride thing or are they really that detatched...

oh my mistake, i forgot the PS3 will shoot straight to no.1 once MGS4 and FFXIII is released LMAO~!