The Myth of Slow PS3 sales
By Kyle Kulyk
With Sony’s recent announcement of a revamped and cheaper PS3 model, many technology writers and video game industry journalists have taken this opportunity to examine the potential impact of Sony’s latest Playstation iteration on the gaming industry. The Financial Times wrote in an article published Aug 19th under their technology section “The high-spec – and high-price – PS3 has struggled against competitors. It has sold 24m units, compared with about 30m Microsoft Xbox360s and 50m-plus Nintendo Wiis.”
This is a lie.
While there is no denying the success Nintendo has had this console generation with their Wii games console, the false notion that Sony’s Playstation 3 console is somehow struggling against its main competitor, Microsoft’s Xbox 360, is parroted over and over again in the writings of the US dominated game media. This idea that somehow the PS3 is struggling versus the Xbox 360 is not only incorrect, but it’s so easily dispelled by a liberal dosing of sales data that it makes one wonder if members of the games media have any business writing about the videogame industry at all when their ability to fact check is so obviously in question. Since the PS3’s worldwide launch at the start of 2007, data released from both Microsoft and Sony prove that the PS3 has outsold the Xbox 360 in the 2 ½ years since it’s launch by over a million consoles.
According to Sony and Microsoft sales data released each quarter, the Microsoft 360 managed to build an 8.6 million console lead before the Playstation 3 launched worldwide in early 2007.
For the calendar year 2007, the PS3 dominated the 360 selling 8.85 million consoles to the 360’s 7.3 million.
In 2008 the PS3’s dominance continued over the 360 for the first 3 quarters, outselling the 360 by a hefty 6.32 million consoles to 4.8 million consoles. In September of 2008, Microsoft drastically slashed the price of the 360 making their 360 Arcade offering the cheapest next gen console on the market and sparking a sales comeback over the holiday season during a period of slowing consumer spending due to the pressures related to worldwide recession. 2008 ended in a dead heat, 10.78 million PS3’s to 10.8 million 360’s.
So far for the first half of 2009 consumer spending has remained slow however the PS3 has still managed to stay neck and neck with the 360 despite being double the price. 2.71 million PS3’s sold versus 2.9 million 360’s, a difference of only 190,000 and with a recent price cut and new PS3 Slim set to shake things up leading into the 2009 holiday season, certainly this does not paint the picture of a console struggling to keep up with its rival who just posted their worst sales quarter in 2 years.
So how can so many in the games media be completely oblivious when it comes to these facts? Simply enter a search into Google for “slow PS3 sales” and you’ll find a flood of hand wringing regarding the PS3’s slow start, slowing PS3 sales growth, the prospect of Sony ditching the PS3 altogether and a parade of “Why the Playstation is Doomed,” articles.
Now, repeat the Google experiment with “slow Xbox 360 sales.” The difference is astounding. Despite the odd article regarding the 360’s inability to crack the Japanese markets, the outsold Xbox 360 simply isn’t under the same media scrutiny. From Kotaku’s “Sony Responds to Reports of Lethargic PS3 Sales” type articles to Play.tm reporting on “PS3 Hardware sales still slow,” article after article exists, examining Sony’s imagined plight while Sony themselves, when asked to comment on slow sales continue to denounce the idea that there is anything wrong in the first place. Meanwhile it becomes abundantly clear looking at the 360 sales numbers that if any console has struggled to remain competitive, it’s Microsoft’s faulty hardware plagued Xbox 360.
One could possibly forgive this type of negative journalism if critical articles were equal across the board, but that’s simply not the case. Despite the 360 being matched and outsold since the PS3 launched, nowhere will you find articles examining slow Xbox 360 sales. CNET isn’t writing articles speculating on ways that Microsoft can save the Xbox 360. ABC news isn’t reporting on how Natal could potentially boost slumping 360 sales. Forbes and the Financial Times aren’t writing articles about how the 360 is struggling to keep up since the PS3 launched.
So, why is that?
It might simply be a matter of demographics. This current generation, Nintendo’s Wii has dominated, but let’s look at the Wii’s demographics. It’s comes as no surprise to those that follow the industry that gamers who play on the Wii aren’t what is typically described as “hardcore” gamers. According to data revealed at last years Electronic Gaming Summit, the majority of Wii owners play between 1-2 hours a week. Game sales show games aimed at the “hardcore” game market on the Wii tend to perform poorly and that’s a problem for gaming media as it’s the hardcore gamers that buy magazines and surf online for the latest game information. Your average Wii owner who plays Wii Sports and might own Sonic and Mario Olympics or Wii Fit isn’t surfing the internet for the latest game information. They simply aren’t picking up games magazines looking for info on the next Wii Fit titles, so there’s no money to be made there.
So next up is the 360 crowd who still outnumber PS3 owners due to the 360 launching a year earlier than the PS3. Not only do 360 owners outnumber PS3 owners, but 60% of 360′s sold worldwide are sold in the US, home to the majority of the worlds videogame meida outlets. 360 fans love their Halo, can’t get enough information regarding the next Gears of War. They flood internet games sites and snatch up copies of their favorite games magazines that offer new glimpses of soon to be released titles that appeal to them. There are also, like sports fans, often very loyal to their team and the game media knows this. Not only do articles that offer insight into their favorite games attract attention but negative articles critical of the other teams draw attention as well. So far 360 fans have simply outnumbered PS3 owners, and a game media eager to draw eyeballs to their websites and advertisers have been quick to give them what they want, and they want the scent of their enemies blood.
So, using the old adage “If it bleeds, it leads,” game media has been quick to pick up and perpetuate the false fall of the Playstation 3. It’s what the readers seem to want and many games site seem unwilling to let a little thing like facts stop them from writing another speculative piece on “Why the PS3 is failing.” But what will happen to a games media that has become fat off 360 fans when the 360 starts its inevitable decline? What will happen if Sony fans are suddenly in the driver’s seat as their number swell? Will the game media be quick to hop off the 360 bandwagon and toast the 360’s demise to the delight of Sony’s PS3 fans, will they continue to bash Sony’s offering with complete disregard for the facts of the videogame biz or will they revert back to the days when the games media reported on actual news without corporate bias or pandering to one specific audience?
Personally, this author hopes it’s the latter.
Nicely put.
On the official EU PS Forums I made a thread about how the fact that PS3 has sold more when averaged out for time on the market, feel free to take a look…
http://community.eu.playstation.com/playstationeu/board/message?board.id=62&message.id=1510128
What the hell! Someone actually left a comment?
Thanks for the feedback, Eightball. We’re with you on this one. It boggles the mind how the gaming media seems to ignore actual sales numbers when reporting on sales, and then the fans just run with the false info. You’d think the only thing that mattered was NPD numbers.
Outstanding article. I believe it’s human nature to root for the underdog and causes people to ignore obvious contributing factors to “gaming the numbers” Fanboyism aside, I agree with your assessment of the negative media. It’s understandable that fanboys would do this, but when major gaming outlets do it, it’s a bit disturbing. I’m always for defending the PS3 with as much factual information as possible (as I do with 360 and Wii), and it always burns me when people declare the PS3 “dead” based on misguided media.
Again, Bravo!
I registered to this site just to say… GREAT ARTICLE. I am an avid Sony fan and I’ve gotten to the point where I don’t even waste the energy explaining why the PS3 is such a great machine to my friends anymore. I have an open mind and I think the xbox 360 does have great games. Mass Effect, Gears…etc. but from a hardware standpoint it just cant match the PS3 in anyway. My friends continue to ride the bandwagon argue the differ…. In regards to your article. Many of my friends had to buy several 360′s due to their previous ones failing. I bet if Microsoft made better hardware they would have a shortage of units sold, but dummies keep buying it so why change?… any ways GREAT ARTICLE.
Thanks! You don’t have to be a fan of Sony to be turned off by the Sony lynching that the media has continued these past couple of years, despite the evidence to the contrary. I swear there used to be a time when the gaming media reported gaming news without the corporate bias or sensationalism. Or maybe that was just a dream I had once.
I am all for rooting for the underdog, heck years ago I wanted Cameroon to win the world cup (soccer!).
The XBOX 360 was rushed to market to build up an early installed lead, which it did and Microsoft paid for it with >54% failure rate, sounds like a vacuum cleaner when turned on and it will fail on you.
Sony on the other hand respected its quality and feature set and put out a media hub that is second to none. Sure the early games did not showcase its abilities but with each software release, it is slowly coming into its own. With titles like Uncharted, Ratchet & Clank, Killzone 2, Wipeout HD, Heavenly Sword, Gran Turismo 5, Uncharted 2, God of War III and Heavy Rain – the PS3 owners have lots to look forward to and play today. Having built in WiFi, Bluray along with free PSN is fabulous.
The XBOX 360 can enjoy their cross game chat as that is the only feature they have to tout about so far before their console RROD on them and they have to wait another month for system to swap out. Rinse + repeat in future.
Hold on a second there. Simple
Microsoft = 1 generation of console(s) (including hand held)
= 23 million user base
XBOX 360 = 31.1 million user base
======================================
Sony = over 5 generations of consoles including hand helds
= 180 million user base
ps3 = 24 million units sold
SONY has 5 times more user base than Microsoft. Shouldn’t they in theory be up to about 50 million install for the PS3? Can you not see that it is an AMAZING feat that M$ is only on their 2nd console? They killed Sony with live and exclusives. They make tons more money from games and consoles. Praise xbox for even still being in the game.
Its no wonder LIVE is the leading cause of xbox, PSN still cant handle cross voice chat, party systems, voice mail or party chat. Even xbox 1 could do that.
360 has RROD but its their second system, second!! Doesnt that account for anything?
When the PS3′s cell can handle voice chat, gimmie a call!!!
That’s not the point now, is it? The PS3 isn’t the PS2. Those were different times. The point isn’t the sales numbers themselves, or how they compare against PS2 numbers, the point is the PS3 is routinely portrayed as the underdog with respect to the 360 and this simply isn’t backed up by the facts.
This article isn’t intended to take anything away from the Xbox 360, it’s a great system. The point is to expose the hypocrisy that exists in the gaming media and the amount of Sony lynching that goes on regardless of the truth. It has nothing to do with the PS3 vs 360 and everything to do with “Can we please get back to the business of reporting facts and not sensationalizing our articles to get hits from one particular group of gamers.”
XBL live versus the PSN couldn’t be more off topic.
“Sony = over 5 generations of consoles including hand helds
= 180 million user base
ps3 = 24 million units sold
SONY has 5 times more user base than Microsoft. Shouldn’t they in theory be up to about 50 million install for the PS3?”
You should really take beginner’s classes in finance. Sony accrued 180 million user base over a time of 15 years since PS1′s launch. PS3 will reach the numbers you mentioned, probably even more than that, in due time. Its not like 50 million people are going to go to wal-mart and buy the PS3′s overnight. Give it some time, and the install base will increase.
I want to give you a hug.
Now, who could turn that down?
Im beginning to think that the extra 170,000 coming from Microsoft is due to the fact that people had to re-buy the system because their warranty ran out because of the RRoD. Or maybe it could be more.
Anyways Chrome. Yes Xbox 360 does have more as far as the social aspect goes. However, If you look at it in the long run it would be cheaper for you to buy a PS3 now. No yearly subscriptions, no $100 WiFi piece (maybe less now), you can put a 320 GB hard drive in there.
Very good article my friend. I’m a 27 yr old gamer, I have both 360 and a PS3 and I have pretty much been gaming since the Atari. Once was a time when the gamers were the winners, not this system war bologna that dominates video game articles. I like to check out n4g for some articles previewing games, new system features etc., but too bad that’s impossible now because all you see is articles about how each system will die. Let it be known, if any system dies its no good for anyone. Speaking of system deaths, how could a rip-off of the RROD magnitude possibly go so grossly overlooked? Doesn’t the fact that there are some system owners who bought more than 1 system due to RROD factor into the numbers? I personally bought 2 already and plan to stop if it dies again.
I will say, I feel that my 360 is a bit more personal but is no doubt geared towards a younger game. Whether this is correct is moot, just my opinion. I love my PS3 and just like how it “feels”. Maybe that’s how other authors of these articles feel as well, if you write about 360 dominance you will get the proper attention. I am a lot less susceptible to fan boy wars cause I have other things to worry about rather than who will win a fake war, how bout the 2 real ones this country is in? Hope this wasn’t too long winded. Once again, good read. Thanks!
Very good article. I’m tired of all the bias journalists continuously spreading lies about the PS3. This is an article with fact, and no one can argue with facts. Very well done article.
FINALLY! Its about time an article on this topic made it to the frontpage. I have been shouting about this for the past year or so, but no one cared. Thanks for the article. Please pass it around!
Oh and also, everyone wants to focus on PS3 and Sony’s financial problems with the pricey hardware. What about Microsoft’s financial problems? Sure, they sold 30 million Xbox 360 units. But 54% of those units RRODed. This surely caused Microsoft hell of a lot money, no? I’m no economist, but I figure that if I’m running a company where 1 in every 2 products I make is faulty, I’d be seriously concerned and would be thinking of closing shop.
Hey Ken Kutaragi, come back to Sony! It was all just a myth!
[...] The Myth of Slow PS3 Sales [...]
Great article! The more ppl getting the facts out about the PS3 the better!
Thanks for the comment!
You know, it’s not even about getting out the facts regarding the PS3. It’s more about exposing the media bias that has influenced so many this console gen, and one of the reasons this site exists. It’s just sickening to see the same BS reported over and over again until media outlets start treating it like facts. It’s lazy, sloppy journalism. We may not be the best site out there, or have the most manpower, but at least we fact check.
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