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[GigaDrive]

http://www.gamesindustry.biz/content_page.php?section_name=pub&aid=3582

Rob Fahey 16:21 08/06/2004
Upbeat predictions as SCEE boss champions efforts to target non-gamers


Sony Computer Entertainment Europe president David Reeves has branded media reports that the PlayStation 2 has reached its sales peak as "bullshit," stating that the console still has 50 per cent of its hardware sales to come.

"We get many headlines in the media saying that PlayStation 2 has peaked," Reeves told delegates at a summit in London arranged by UK publisher trade body ELSPA. "It's bullshit - it has not peaked. We're only halfway through the life cycle."

Reeves argued that the PlayStation 2 has yet to reach the "magic price point" - referring to the reduction in price of the original PlayStation to around the UKP 99 mark which caused its installed base to skyrocket - and scotched rumours of an imminent price drop, saying that despite the US PS2 price cut at E3, "we have no intention of going down in price immediately in the PAL territories."

The PAL installed base of the PlayStation 2 currently stands at 22.5 million units, and Reeves expects that by 2008 this will grow to 45 million units - with growth in new PAL territories such as Eastern Europe and the Middle East highlighted as a key impetus for this growth. Reeves pointed out that the PSone is currently selling strongly in these territories - while the aging console sells only 1200 units a week in the UK, it is currently selling around 5000 a week in Iran and 2000 a week in Lebanon, he revealed.

However, the main thrust of his argument focused on Sony's continuing efforts to appeal to "non-gamers" and grow the demographic to which the medium appeals - with products such as Eye Toy, which sold to a much wider and more evenly distributed demographic than the PSone or PS2 has enjoyed, and the recently launched Singstar both highlighted as cornerstones of this approach.

"To some extent, we are recycling consumers, and we have to break out of that," he told the summit. He went on to demonstrate Killzone, The Getaway: Black Monday and Gran Turismo 4, explaining that "we must continue to have games of this nature to continue growing the software market in a traditional way, but even more important is to bring in new consumers and non-gamers."

Reeves primarily focused on the PlayStation and PlayStation 2 platforms in his keynote speech, with his only comment on the PS3 being a plea to publishers not to "leave money on the table" by moving away from the old hardware too quickly, while on the topic of the PSP, he assured the summit that hardware shortages should not be an issue. "We believe that we will have enough hardware to satisfy the market," he said; "it's up to you to provide the software."

go go Sony

 

[evil ways]

The PS2 still has 2 more price drops, to $99 and $50, so if Sony holds off the PS3 until late 2006, I could easily see the PS2 having good-decent sales for about 4 more years.

 

[GuntherBait]

The PS2 still has 2 more price drops, to $99 and $50, so if Sony holds off the PS3 until late 2006, I could easily see the PS2 having good-decent sales for about 4 more years.

Indeed.

 

[Culex]

To some extent, we are recycling consumers, and we have to break out of that

Make a product that doesn't die, forcing you to buy another one and you won't have that problem.

 

[dog$]

"It wasn't lies... it was just, bullshit." - Elwood Blues

Sorta funny to hear a Sony Rep use a 'it's the software, stupid' spin at the end there.

PS1 is at 10 years and technically counting, so it's not going to be 100% false... eh.

 

[Suikoguy]

Make a product that doesn't die, forcing you to buy another one and you won't have that problem.

?
What are you talking about

 

[Culex]

?
What are you talking about

I'm illiterate, please ignore me.

 

[JoshuaJSlone]

The PS2 still has 2 more price drops, to $99 and $50, so if Sony holds off the PS3 until late 2006, I could easily see the PS2 having good-decent sales for about 4 more years.

Considering how they've dragged things out already, I'm sure $129 and/or $79 will be stops along the way.

 

[SFA_AOK]

I dunno, back in the PS1 days, Sony were, in some ways in a better position. Once PS2 hit sub £130, the Saturn was clearly a goner and the N64 was obviously not looking like a serious rival. These days, they've got the XBox and the Cube; one's doing OK and the other is going to be cheaper than the PS2.

I'm not saying that he's wrong and that they have peaked but I don't think you can apply the PS1 = PS2 logic he's applying. I expect this to be unpopular here

 

[kaching]

Well, sure, PS1 != PS2...because the PS2 has sold more units faster than the PS1 did

Of course, I think his comment that they still have 50% sales left to go for the PS2 is obviously predicated on making full use of the 10 yr life cycle they've been talking about...and then some probably.

 

[JoshuaJSlone]

I dunno, back in the PS1 days, Sony were, in some ways in a better position. Once PS2 hit sub £130, the Saturn was clearly a goner and the N64 was obviously not looking like a serious rival. These days, they've got the XBox and the Cube; one's doing OK and the other is going to be cheaper than the PS2.

Have to disagree; they're much better off now. The PS2 is more expensive than the PS1 was at the same relative time and still selling well, so that's a bonus for them. And rather than having one crawling competitor and one walking competitor (compared to PS1 running), the Xbox and GCN are both like ... limping competitors, I guess. With neither dying off, they're splitting the non-PS2 vote.

 

[jarrod]

N64 was much fiercer competition than either GC or XBox have proven, particularly in America (where it was at times ahead of PS1's intalled base).

 

[DarienA]

N64 was much fiercer competition than either GC or XBox have proven, particularly in America (where it was at times ahead of PS1's intalled base).

But....but.... Xbox outsold the PS2 last month?!??!?!?!

 

[SFA_AOK]

Jarrod - I was talking about the UK.

Have to disagree; they're much better off now. The PS2 is more expensive than the PS1 was at the same relative time and still selling well, so that's a bonus for them. And rather than having one crawling competitor and one walking competitor (compared to PS1 running), the Xbox and GCN are both like ... limping competitors, I guess. With neither dying off, they're splitting the non-PS2 vote.

Yeah, I admit I could be proven wrong, time will tell. I just think that some of those people that went in for the PS1 at a lower price are not necessarily waiting til the PS2 is the same price (i.e. someone who bought PS1 for £100 will/has not wait/waited until PS2 is £100).

 

[Lazy8s]

The slowing sales of the PS2 caught many by surprise, including Sony, in part because of the misconception that the PS2 was pacing much higher than the PS had. The PS had to start the brand from scratch, so it didn't reach the onset of saturation as quickly as its successor which, by contrast, had hit the ground running with all of the brand momentum at launch.

 

[jarrod]

Jarrod - I was talking about the UK.

Well, it's not like XBox is serious compeition in the UK either. N64 managed around 8-10 million units in PAL regions all totaled, I don't really see XBox besting that by a significant amount if at all.

The slowing sales of the PS2 caught many by surprise, including Sony, in part because of the misconception that the PS2 was pacing much higher than the PS had. The PS had to start the brand from scratch, so it didn't reach the onset of saturation as quickly as its successor which, by contrast, had hit the ground running with all of the brand momentum at launch.

I agree with that though I also think Sony's sluggish price drops have led to some stagnation as well. I kinda wish Microsoft had been just as agressive with XBox drops as Sony was with PSone.