Forbes Magazine, Leading Financial News Mag Predicts Major Price Cut
After the second week of sales in Japan for the PS Vita being so bad and such a major drop, Forbes is predicting only one thing Sony can do. SLASH PRICES!
We all have heard about the 'horrible sales' of the PS Vita in Japan, first week 320k, second week 70k, and now Forbes is jumping in with its report, and basically they are predicting the only way out for Sony, is major 'price cut', just like Nintendo did with the 3DS, and that seemed to work, as the 3DS is outselling the PS Vita 6 to 1 now!
So will Sony agree with the 'sales experts' and 'drop the price' before the Feb. 2012 launch in the other regions, or tough it out and see if their little portable decides to start to 'fly off the shelfs' like a new console should when launched!Sony will likely be forced to cut the price of the PS Vita from 24’000 yen to well below 20’000 yen very soon. The upcoming US launch could be a true debacle for several reasons. Sony has decided to price Vita at $250, higher than the Amazon Kindle Fire. The hottest games like the latest Uncharted are priced at $50, while many other major titles are $40. The pricing seems delusional in light of the Japanese response to the PS Vita. The older PSP handheld console has been a bigger hit in Japan than it has been in the US market. The tablet and iPhone market penetration rates in America are higher than in Japan – consumers may well be more reluctant to splurge on expensive, proprietary handheld consoles. The launch of the Kindle Fire at $200 has changed the US consumer electronics pricing environment.
I believe Japan could well be the last stronghold of portable game consoles. Even though the 3DS stumbled badly during its early months, Nintendo revived the console with a steep price cut and nearly simultaneous launches of three major franchises near the end of the year. The 3DS should have been a surefire blockbuster in its domestic market – the summer softness in Japan may have been an early warning sign of the coming global portable market malaise. The disastrous second week of the PS Vita is the second sign. Sony clearly had some anxiety about the Vita’s launch – it built it massive early support via an extensive line of launch titles. Despite the fact that Sony’s PSP has been a big hit in Japan, the PS Vita is foundering badly out of the gate – the ancient and heavily discounted PSP outsold the brand new Vita by 40% during the Christmas week. Much is now riding on the Vita debut in the US market in February.
I argued last week that PS Vita could mark the end of the era of portable game consoles. There is no doubt that Nintendo’s 3DS is going to sell at least 20 Million units globally over the next couple of years. But the portable console market may now have entered an age of permanent, slowly accelerating decline.The true test of the industry is the United States, where consumers are embracing games designed for smartphones and tablets. The possible shrinking of the portable game consumer base would hit the runner-up Sony before Nintendo really gets mauled. The rot sets in first at the periphery.
Sony has approached the PS Vita launch in America with arrogance, pricing the console and games high while opting to debut the device during the slow retail month of February. Mobile app sales more than doubled during the Christmas of 2011 – solid triple digit volume growth. In the meanwhile, even in the Japanese heartland of video games, video game software unit sales are set to decline by double digits in 2011.
NEWS SOURCE: Sony in Big Trouble (via) Forbes
Our thanks to 'Stevetry' for submitting this news tip to us!