Vita To Sell 12.4 Million Units With The Help Of A Price Cut
See Full ImageHow will the PlayStation Vita fare, and will it be a boon for Sony? Those are questions Strategy Analytics addressed, and their in-depth report has been issued.
The firm expects Sony's new portable to sell 12.4 million units worldwide this year, with the caveat that the unit will receive a price drop. Total hardware sales could reach $2.2 billion assuming a $180 average retail price, which would represent a revenue increase of over $1.2 billion/year. However, as there's only a small margin on the Vita, the actual profit will be lower.
Senior Analyst Jia Wu says the true value of the Vita is the "drive for content revenue growth and its strategic position in Sony's entertainment ecosystem." He also said the Store would play a "vital role" in software sales, videos and other content, and overall, the Vita will cause Sony's 2012 portable software revenue to grow by $800 million. He also added:
"Crucially the cross-platform availability of content will also boost Sony’s position in competition with giants Apple, Samsung and Microsoft. Sony can leverage its console gaming business, which Apple and Samsung do not have, to build its online content cloud. Despite the popularity of Xbox 360, Microsoft lacks a serious portable console and mobile gaming device. So with PlayStation Vita, Sony further strengthens its brand, device competition and future content reach - even if the console hardware itself will not generate much profit."
The report further mentions smartphones and tablets and says they're "good enough for many casual gamers" and therefore, Sony needs to achieve the "Holy Grail of inventing innovative gameplay whilst at the same time investing heavily in exclusive content."
Lastly, the price: the prediction is that Sony will mirror Nintendo in the latter's handling of the 3DS. After launching at $249 and experiencing low sales, Nintendo slashed the price of their new unit to $169, which resulted in a boost. Therefore, Strategy Analytics expects Sony to cut the price of the Vita in North America and Europe this year.
Tags: vita, playstation vita, vita sales, vita price, vita cost
2/23/2012 10:04:48 AM Ben Dutka
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Comments (26 posts)
Ben Dutka PSXE [Administrator]
Thursday, February 23, 2012 @ 10:33:53 AM
7 up, 0 down
Qubex
Thursday, February 23, 2012 @ 8:30:10 PM
In the meantime I have taken the total cost of the Vita stuff I want now and purchased Australian dollars... and putting it in a savings deposit account earning 4% interest... So not only do I only use approximately half of those funds to buy my Vita hardware and a game or two... but the total amount I would have spent today has earned interest for a year or so... further reducing the cost of the Vita too :)
Patience... the tenants of success...
Q!
"play.experience.enjoy"
2 up, 1 down
Gordo
Friday, February 24, 2012 @ 3:43:23 AM
Pretty expensive since the Aussie dollar has parity with the greenback.
:-)
1 up, 0 down
Excelsior1
Thursday, February 23, 2012 @ 11:15:53 AM
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"In the time of economic austerity consumers are considerbly sensitive to prices and Nintendo proved that a price cut can save a product." SA said. They went on to state: "Sony is experiencing the same story in Japan. Sales of the $249 Wi-Fi initially exploded, selling more than 300,000 in its first week of release. But the the new console is now barely moving 20,000 units per week in its home market after all the hard-core fans made their purchases mirroring the experience of the 3DS."
"Strategy Analytics expects the sales in NA and Europe to follow the same pattern, suggesting that a price cut will be essential to stimulate sales and to forge a competitive position."
I agree with two comments above me. A price cut would make me seriously consider getting a Vita, and I do imagine a lot of consumers are waiting for a price cut. That's consistent with a lot of the sentiments I have seen out there on the major gaming sites.
Last edited by Excelsior1 on 2/23/2012 11:16:54 AM
4 up, 0 down
Neo_Aeon666
Thursday, February 23, 2012 @ 6:11:57 PM
Getting an awesome machine for peanuts would make you want to buy it even if you don't need it.
But IF you were looking for a portable gaming/mp3/mp4/internet machine already and compared it to the market like any consumer would... You would soon realize that, for the price of an Ipod touch... You are getting ALOT MORE. Then, you would try it in store and you would buy it because it is simply awesome. Anyone who played it/felt it/multitasked with it will know 249.99 is already a steal. If not, they are just not honest with themselves and might be plain haters. Problem is the internet is giving a bad impression of the product. The whole community is bashing the price while 90% of them did not actually hold it in their hands and felt the awesomness lol
3 up, 1 down
DrRockso87
Thursday, February 23, 2012 @ 11:17:51 AM
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REALLY want to play Uncharted: Golden Abyss already but with the cost of the PSVita and the memory cards, I don't have the funds sadly.
Also, if Sony slashes the price by 80 dollars as Nintendo did, will they award early purchasers some "Ambassador" program and allow them to download 10 free PSOne games then? Just a thought.
Last edited by DrRockso87 on 2/23/2012 11:18:59 AM
4 up, 0 down
Nlayer
Thursday, February 23, 2012 @ 11:33:20 AM
I bought a First Edition Bundle and I don't mind getting nothing after a price drop; but, it would really strengthen my love for Sony even more if they gave something after a price-cut so soon.
It'll be interesting to see what happens!
4 up, 0 down
gumbi
Thursday, February 23, 2012 @ 11:53:32 AM
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We shall see.
4 up, 0 down
matt99
Thursday, February 23, 2012 @ 12:10:12 PM
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0 up, 0 down
tlpn99
Thursday, February 23, 2012 @ 12:41:40 PM
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3 up, 0 down
Highlander
Thursday, February 23, 2012 @ 12:45:34 PM
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Actually after the teardowns and BoMs that have been published, I am convinced of a price cut by autumn. Sony built in a profit margin in the original price. By autumn they should see some cost reductions in manufacturing.
1 up, 0 down
jimmyhandsome
Thursday, February 23, 2012 @ 1:56:18 PM
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It's great how they say that the cross-platform play will be a huge competitive advantage for Vita. At first Sony was very mum on the details about how pricing would work on cross-platform play. Then recently they announced that it would be transferrable at no extra cost for a handful of games. Does anyone know if thats the case for ALL titles that are available on both PS3 and Vita via PSN?
I'd like to see Sony advertise and market the cross-platform play alot more if thats the case. Grabbing some of the 50million or so PS3 owners is a good start to sell your new portable.
Last edited by jimmyhandsome on 2/23/2012 1:57:11 PM
0 up, 0 down
Highlander
Thursday, February 23, 2012 @ 2:50:19 PM
0 up, 0 down
jimmyhandsome
Saturday, February 25, 2012 @ 8:42:42 AM
0 up, 0 down
Mr Bubbles IGR
Thursday, February 23, 2012 @ 4:33:25 PM
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I'll wait till the price drop to own one, no big hurry. Not like its going anywhere.
0 up, 0 down
Neo_Aeon666
Thursday, February 23, 2012 @ 6:01:07 PM
We are talking about a machine that completely annihilates the performances in gaming of a 700-900$ phone or tablet for ONLY 249.99$ That's how we approach it at least.
2 up, 0 down
GGCAN
Thursday, February 23, 2012 @ 4:52:44 PM
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I called Best Buy yesterday (Feb22/12) just before Noon and they told me they didn't think they would have Vita in stock at 5 pm, so I got my Vita at lunch.
Most Best Buys up here are sold out already and it's only Thursday.
1 up, 0 down
GGCAN
Thursday, February 23, 2012 @ 4:53:32 PM
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Love my PS3 & PS Vita !
0 up, 0 down
dbyzforce
Thursday, February 23, 2012 @ 9:53:02 PM
What they need now is ability to play PS1 games on vita.
1 up, 0 down
Neo_Aeon666
Thursday, February 23, 2012 @ 5:47:32 PM
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And you can put it that way: for 169.99 you have a 3DS and for a mere 80$ more you get a Vita with at least 10 times more power and potential and a real Future to portable gaming on the GO. All the people who try the demo are sold instantly. We also had a deal giving away a free 4gb memory card and 20$ off the game of your choice.
Anyway I still do not think the price is a problem. At least as soon as the consumer actually tries it, he is sold. I really hope the numbers of first week sales are good and put a sock in those analysts mouth. The console is sold under cost. It's not a cheap pile of platic like the 3DS. At 169.99 Nintendo still turns a profit on it. (I am bashing on the 3DS here not because I hate it but because I am angry some people actually think the Vita could be worth the same) If the Vita drops to 169.99 the 3DS should fall to 99.99 and I do not see that happening. (At least not before a few years from now)
Last edited by Neo_Aeon666 on 2/23/2012 5:55:51 PM
4 up, 1 down
___________
Friday, February 24, 2012 @ 5:09:50 AM
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not even a price cut could push the vita to those numbers!
0 up, 1 down
Robochic
Sunday, February 26, 2012 @ 10:12:03 AM
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0 up, 0 down
Gamer46
Sunday, February 26, 2012 @ 10:50:10 AM
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Last edited by Gamer46 on 2/26/2012 10:57:00 AM
0 up, 0 down
Naksy
Reply
Thursday, February 23, 2012 @ 10:25:15 AM