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Vita To Sell 12.4 Million Units With The Help Of A Price Cut

How 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)

Naksy
Thursday, February 23, 2012 @ 10:25:15 AM
Reply

After the price cut, it's mine!! Little short on cash after the holiday season last year :(

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Ben Dutka PSXE [Administrator]
Thursday, February 23, 2012 @ 10:33:53 AM

A lot of people are, I imagine. :)

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Qubex
Thursday, February 23, 2012 @ 8:30:10 PM

Yhea... I am simply holding out for this... I will have the same experience everyone is having now at 50% less the cost...

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"

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Gordo
Friday, February 24, 2012 @ 3:43:23 AM

As long as you don't spend your Australian dollars to buy a Vita in Australia. $350 for the Vita and $45 for a 8GB memory card and $59 for Uncharted.

Pretty expensive since the Aussie dollar has parity with the greenback.

:-)

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Excelsior1
Thursday, February 23, 2012 @ 11:15:53 AM
Reply

The full article from Strategy Analytics is a great read. Interesting how they chimed in about the 3DS's price cut and price sensitivity of consumers in uncertain economic times.

"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

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Neo_Aeon666
Thursday, February 23, 2012 @ 6:11:57 PM

I can see your point.

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

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DrRockso87
Thursday, February 23, 2012 @ 11:17:51 AM
Reply

If they cut the price of the PSVita to $170, I'd grab one in a heartbeat.

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

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Nlayer
Thursday, February 23, 2012 @ 11:33:20 AM

I really hope they give something. Even just one PSOne game would be nice. Haha.

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!

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gumbi
Thursday, February 23, 2012 @ 11:53:32 AM
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I highly doubt we'll see a price cut as dramatic as the 3DS. When the Vita launch info was released I fully expected to see both the Vita and the PS3 receive price drops to $199 at E3 2012. I think that'll be a sweet spot for both of these units and I think the timing is about right for it.

We shall see.

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matt99
Thursday, February 23, 2012 @ 12:10:12 PM
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Well now I'm really in a pickle-do I get it now, or do I wait for a price drop? On the one hand I really want it, on the other I'll be cursing myself for not waiting if a price drop came really soon...what to do, what to do?

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tlpn99
Thursday, February 23, 2012 @ 12:41:40 PM
Reply

Price drop ftw :) I am gonna wait.

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Highlander
Thursday, February 23, 2012 @ 12:45:34 PM
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lol, well, I've been saying that by Holiday 2012 the base unit will cost $199.99 ($249.99 for 3G) so perhaps they read here?

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.

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jimmyhandsome
Thursday, February 23, 2012 @ 1:56:18 PM
Reply

I'm going to have to hold off on Vita for the time being. $$ is usually tight, and splurging on what would surely be a $300-400 purchase (with memory card and games) just isn't justifiable for me right now. A price cut would obviously be intriguing, I'm thinking I'll wait for the 2nd or 3rd generation of AAA titles to come out, then purchase some of the launch titles at a discounted rate (along with a cheaper Vita as well).

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

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Highlander
Thursday, February 23, 2012 @ 2:50:19 PM

It's like all these things, for the first 6-12 months it sells to early adopters, and nthen get's a price cut and others start to buy in. these days product cycles are so short though, they may cut the early adopter phase to only 6 months instead of 12, and you'll see price cuts bu autumn.

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jimmyhandsome
Saturday, February 25, 2012 @ 8:42:42 AM

That's what I'm thinking. Right before the holidays

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Mr Bubbles IGR
Thursday, February 23, 2012 @ 4:33:25 PM
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I told a best buy employee that I would wait till a price drop to buy one. He told me that it would take 1-2 years for that, what does he know? Just trying to do a salespitch to make me buy a ps vita.

I'll wait till the price drop to own one, no big hurry. Not like its going anywhere.

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Neo_Aeon666
Thursday, February 23, 2012 @ 6:01:07 PM

Well he might be right. But I'd say more like 1 year till a price drop. 2 years is pretty long. At 249.99 you already have plenty for your money. It is not a 3ds we are talking about.

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.

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GGCAN
Thursday, February 23, 2012 @ 4:52:44 PM
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I'm not too sure about a price drop coming very soon.

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.



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GGCAN
Thursday, February 23, 2012 @ 4:53:32 PM
Reply

Forgot to mention....I'm in Canada.

Love my PS3 & PS Vita !

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dbyzforce
Thursday, February 23, 2012 @ 9:53:02 PM

I'm from Canada too. I love my PS3 and Vita too!

What they need now is ability to play PS1 games on vita.

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Neo_Aeon666
Thursday, February 23, 2012 @ 5:47:32 PM
Reply

Well so far it sold out at nearly all future shops in Canada. We even had refills today and they sold out aswell.

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

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___________
Friday, February 24, 2012 @ 5:09:50 AM
Reply

yea right!
not even a price cut could push the vita to those numbers!

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Robochic
Sunday, February 26, 2012 @ 10:12:03 AM
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still saving up for the Vita price cut or not. I do regret getting the 3DS on launch but i know i wouldn't regret paying full price for the Vita

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Gamer46
Sunday, February 26, 2012 @ 10:50:10 AM
Reply

I'm a little short on the cash to get a PSVita, but I have demoed it and yeah, the price is definitely good for what it offers. Hell the device does some things the PS3 I bought for $300 can't do. Whether people want to admit it or not though, the ipods, phones and tablets are going to play a factor here. I would much rather play games on the go on a 3DS or Vita but I get a sense from a lot of people I talk to that they're just fine using their ipod touch for a quick round of Time Crisis or something else that can be played in very short bursts and usually doesn't cost more than $3. That's what Nintendo and Sony have to deal with and I believe they're going to have to cut prices on their hardware (and games) more frequently than in the past. The next few years for each system will be interesting. The two big things Sony has going for it is the PSN is set up very nicely to provide consumers with all sorts of games and apps and the Vita itself is capable of doing what an ipod touch does and more.

Last edited by Gamer46 on 2/26/2012 10:57:00 AM

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D-Squad3
Sunday, February 26, 2012 @ 3:42:26 PM
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I'm gonna be upset if they do a price cut so soon because I'm buying 3 next month.

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D-Squad3
Sunday, February 26, 2012 @ 3:42:30 PM
Reply

I'm gonna be upset if they do a price cut so soon because I'm buying 3 next month.

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