PSP Edging DS in Japanese Sales War

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Topic started: Mon, 24 Jan 2005 14:13
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Thrace
Joined 24 Aug 2005
4 comments
Wed, 24 Aug 2005 08:04
Seven months later the verdict is a serious defeat for the PSP. This must have been seriously disappointing for Sony. Its pretty much all over in Japan with the DS annihilating the PSP every week, and the PSP is struggling to maintain even in the US in sales despite the over-hyped cool factor. Who knows when the PSP will ever make it to Europe or Australia, its already too late with the DS heavily entrenched there. The PSP has had four dry months in a row, and the DS has a new killer app every week. I guess the software really does trump hardware. I now have to go pawn off my PSP so I can buy Advance Wars DS, Nintendogs, and Meteos. I can't believe the launched two blockbuster games in the same week, my wallet hurts. When the DS goes online next month its done. I hope if Sony goes back into the handheld market they do a better job with development.

Week of August 8 - 14
#1 Nintendo DS - 103,095 units
#2 PlayStation 2 - 37,041 units
#3 PlayStation Portable - 25,100 units
#4 GameBoy Advance SP - 19,958 units
#5 GameCube - 3,799 units
Joji
Joined 12 Mar 2004
3960 comments
Wed, 24 Aug 2005 13:58
Well I agree with you Thrace, and I said it in this very post thread it would go this way.

Come xmas time things will be more of the same. One or two things can aid Sony yet, and they are FF7 or the FF: Advent Chidren film. A SE game will boost things but I feel it won't be enough to turn people away from Mario Kart, Advance Wars DS etc, and the DS games a pushing new ideas too.

I think it's all over already but more sceptical types will say give it another six months to a year. The plain as day fact is that Sony don't have really another year (PSP needs CPR now). 2006 is the year of next gen consoles, Rev and PS3 will be going up against 360 and Sony will have to put a hell of a lot of effort into maintaining or expanding their market share in that area, let alone PSP battling the DS.

This is a strange gaming war on two fronts that Sony is fighting and like WW2 it will stretch them (like it did a certain german lunatic forces), possibly to breaking point.
BlackSpy
Joined 5 Aug 2005
40 comments
Wed, 24 Aug 2005 19:45
'trailing in third'

The Gamecube is practically level pegging with the X Box world wide, the truth is both are miles behind Sony. Nintendo may need a partnership, but Sony don't.

Sony are not doing well these days a corporation, they can't afford to run parts of their business at a loss, and I believe as soon as the X Box 360 launches it will have a huge disruptive effect on PSP sales. People's 'game' money is much more likely to go on the home machine than the handheld.

The pocket money DS should be able to ride that out though.
ProfChaos
Joined 29 Jul 2005
4 comments
Tue, 30 Aug 2005 17:52
I wouldn't worry too much about game money going to home console. As has been observed in this thread already that after launch and the 40 day window afterwards it's unlikely that there will be an onslaught of games for the Xbox 360. In fact if there is they are dumber than I thought. They need to keep their killer apps (if they manage any) until PS3 and Rev launch. The DS probably won't take much of a hit at all.

The demographics of the two (DS and Xbox360) are about as different as gaming demographics can be. Believe me there will be few people putting down their FPS to go feed and walk their Nintendog and vice versa.

The handheld market will, however continue to be dominated by Nintendo because they seem to understand the need of the handheld gaming market. Short fun games that you can pull out and play for 5-10 min. while you wait for the bus or ride it or whatever, not GTA. That will be bad for several reasons;

1) GTA has to liveup to a certain amount of freeflowing ability. Very difficult to accomplish on a handheld system without seriously downgrading the visuals. Since Sony is pushing the fact that the graphics are up to par (almost) with PS2 that won't go over well.

2) Even GTA's mini missions are too long and frustrating for a handheld player.

Anybody who's played Splinter Cell for DS knows just how irritating that can be.
ProfChaos
Joined 29 Jul 2005
4 comments
Tue, 30 Aug 2005 18:24
NiktheGreek wrote:

What we're interested in seeing here is how popular handheld gaming is in any given region, which we'll work out by comparing the most popular home console to the most popular handheld. We use this method because the regions do not have equal sales potential, thus making direct unit for unit sales comparisons pointless. As they're completely different (as you observe) people should have no issue buying both. Thus, a low ratio of GBA:PS2 sales probably means the region isn't as interested in handheld gaming as a region with a higher ratio.

The point? When replying to the original poster's "wait and see what happens in Europe and Australia" comment, I was merely advising them against taking this region as a major battleground because we're not as interested in handheld gaming on the whole.

Now for the evidence.

Playstation 2 worldwide sales figures (Jan 13th 2004)

- Japan (including Asia) 16.18 million units
- North America 29.26 million units
- Europe/PAL 24.56 million units

Game Boy Advance (and SP, so there's no confusion) worldwide sales figures (March 2004)

- Japan - 13.21 million units
- North America - 24.81 million units
- Other - 13.38 million units

Japan has a ratio of 0.82 GBA consoles sold for every PS2 sold (roughly 4 GBAs for every 5 PS2s). North America has a slightly higher ratio of 0.84 GBAs per PS2. Europe has a ratio of 0.55 GBAs for every PS2 sold. So, at least with regards to the current generation of systems, handheld gaming occupies a smaller share of the overall market in Europe than it does in the USA or Japan, meaning that the real battle will be fought off our shores unless the market significantly grows during this generation of handhelds.

Number crunching is fun?


Number crunching is fun, but you're an idiot. I'm sorry that I never saw this thread when it was first around. I would've dropped a logic bomb on you then.

You woundn't last a day working for me bringing me statistics with a base the way you built it. Why on earth would you think that the Playstation 2 sales figures (around 60-75% of the total home console market) is comparable to the GBA market (95-98% of the total handheld market) I don't know. I assume that you thought (probably the wrong word to use) that since the PS2 is the top-selling console system that it is indicative of the whole gaming market. Well, that's where you prove to everyone that you are an idiot. If you want to show the Home console market as a whole, why not add the sales of all three systems. That would make more sense right? WRONG!!! Still an idiot. You are comparing to systems that appeal to totally different markets. Just because I own a console doesn't mean I have any intent of buying a handheld. Also, I may want a handheld, but a console may not be in my cards. This would apply to the female market. Historically not a big gaming market. And no wonder with all the gory, violent games out there. So in comes DS with its Nintendogs. Booya. Definitely not the same people that play Halo, ot GTA, Resident Evil, right? In fact of those people I know who own handheld systems I can't think of single one who owns a console. I'm sure there is lots of spill-over but not enough that you can accurately portray the market with PS2 sales figures.

Your best bet for defining where sales opportunities are is to do what real statisticians do and define the market first work from there based on population demographics.
i.e.
Nintendo GBA: m/f 12-18
Nintendo DS: m/f 14-25
Sony PSP: m 14-25

*The above market statements are best guesses based on product and marketing materials. Not to be taken for anything but a quick assessment.

You're right in the fact that Europe and Australia are not big handheld markets. But, you're stats just prove my point. The ratio of people who own a GBA is not relative to the number of people who own PS2's.
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