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View Full Version : Forbes on PlayStation Vita: 'Sony in Big Trouble'


Hot Topic
12-31-2011, 02:41 PM
"It's old news now that PlayStation Vita isn't selling very well in its native Japan. As we already reported, Vita is off to a rocky start, only selling 72,479 in its first week on the market after pushing about 325,000 in its first 48 hours.

This precipitous decline hasn't gone unnoticed in circles outside of the gaming realm. In fact, Forbes tech contributor Tero Kuittinen has written a scathing article titled "Sony in Big Trouble with PS Vita," outlining the problems the company is currently facing with Vita.

Kuittinen notes that Vita's "second week brought devastation," especially when compared to Nintendo 3DS' second week on the market. Nintendo 3DS was widely believed to have had a terrible start, only more recently pushing bigger numbers now that games players want have finally starting arriving. Yet, 3DS sold 370,000 units in Japan in its first week, and 210,000 units in its second. In other words, it beat PlayStation Vita by 45,000 units in its first week, and a massive 137,500 units in its second week.

"That drop off led to steep further sales erosion," the Forbes article notes, "which forced Nintendo to implement an unusually early and steep price cut." This, of course, begs the question if Sony will do the same. Tero Kuittinen thinks that it will. "Sony will likely be forced to cut the price of the PS Vita from 24,000 Yen (~$311) to well below 20,000 Yen (~$259) very soon."

But the problems don't stop there. Kuittinen continues, "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."

However, Kuittinen saves perhaps his harshest words for later in his article. "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." The reason? The Forbes author argues that the rise of the smart phone and tablet markets are much to blame.

But he also argues that Sony should be concerned, as it seems to be on recent word that Sony had no comment when asked about Vita's sluggish sales. "…the portable console market may now have entered an age of permanent, slowly accelerating decline," Kuittinen concludes. "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."

http://vita.ign.com/articles/121/1215557p1.html

Price Drop imminent?

Looks like the smartphone market has its foot on the neck of handheld gaming'. :ohnoes:






(View full article @ BX below)
Forbes on PlayStation Vita: 'Sony in Big Trouble' (http://slumz.boxden.com/f13/forbes-playstation-vita-sony-big-trouble-1677398/)