Sign on Options
Theme:
To Dark

Analyst sees 'slowing' Xbox sales, Sony warns of PS3 Slim shortages

Investment bank Caris lowers quarterly estimate by $500 million on 360 doubts; SCEA CEO Jack Tretton says his company is on track to meet 13-million-unit annual sales goal.

As the summer of 2009 cooled, the console wars heated up. During the last week of August, Sony began selling its $300 PlayStation 3 Slim just days before Microsoft lopped $100 off the price of the then-$400 Xbox 360 Elite. This week, Microsoft sweetened the deal by offering a $50 rebate for the Elite, making it as cheap as Nintendo's $250 Wii (for the time being) and is rumored to be readying a Lego Batman/Pure holiday bundle.

Microsoft is pulling out all the stops to sell the Xbox 360 Elite.

Microsoft is pulling out all the stops to sell the Xbox 360 Elite.

Unfortunately, Microsoft's moves aren't impressing the analysts at investment bank Caris & Co. In a Briefing.com report (ironically) syndicated on MSN Money, Caris is lowering its revenue projections for Microsoft's first fiscal quarter, which ends on September 30, from $12.8 billion to $12.3 billion.

The reason? According to the bank, "Caris believes Microsoft's Entertainment and Devices segment is likely to deliver weaker growth than the firm previously projected as slowing Xbox sales are likely to have a negative impact on results. While this appears to be mostly attributable to slowing end market demand, it also seems recent aggressive moves by Sony could lead to some modest market share loss for Microsoft."

The $300 PS3 Slim may carve out a chunk of the 360's market share.

The $300 PS3 Slim may carve out a chunk of the 360's market share.

Virtually simultaneously, Reuters published an interview with Sony Computer Entertainment CEO Jack Tretton in which he boasted of the third-place PS3's resurgence. After reiterating that PS3 sales tripled at top US and Canadian retailers after the Slim went on sale in late August, the executive said Sony was on track to sell 13 million PS3 units during the fiscal year ending March 31, 2010.

"In a very difficult economy, I couldn't be more optimistic about our fortunes for the rest of the year and for the future," beamed Tretton, before issuing a warning of sorts. "If things continue at this pace, it is conceivable that there will be product shortages."

There have already been indications that PS3 Slim stock is drying up. During the system's first weeks on the market, San Francisco Bay Area GameStop employees told GameSpot that Sony was being tightfisted with inventory, sending very limited amounts out each week. However, Best Buy locations spoke of ample supplies of the console.

206 Comments

  • PS3callofduty

    Posted Oct 17, 2009 9:00 am GMT

    Alot people say ps3 will catch up in sales. I dont think that will happen for a while. Dont get me wrong, I am a ps3 fan! But it just seems difficult to catch up to the x360 if it has year lead. And I think that in the holidays x360 will beat PS3 in sales.
    Just a guess...
    I hope PS3 catches up in sales and we have a much better PSN!

  • Spider-Jim

    Posted Sep 28, 2009 12:30 am GMT

    I'd still buy an X360 because it has more games that I like. My good buddy has a PS3 and loves it. But it doesn't have Lost Odyssey, Blue dragon or Mass Effect. It also won't play classics like KofOR and Jade Empire. I kept my PS2 so I could play the games. I am very dissapointed about the lack of BC in PS3s.

  • FF_fan2004

    Posted Sep 27, 2009 2:20 pm GMT

    I'm sorry, I must have heard incorrectly, but did you all say that there's backwards compatibility on the new PS3 slim models? It includes PS2 games?

  • snarl2

    Posted Sep 26, 2009 6:17 pm GMT

    @majere613- This is kind of funny, and I agree with u. But my PS3 broke a couple a weeks ago. I sent it to Sony( which costs me 160.00) and if they can't fix the problem( The problem was that it can't read any games, or movies) there going to send me back the same type of model that I originally had, a 60GB!!! Which I was happy about that, because I love the 60GB version!!!

  • mjk_1

    Posted Sep 26, 2009 5:51 pm GMT

    i think everyone is feeling the momentum shift whether they admit it or not

  • majere613

    Posted Sep 26, 2009 12:08 pm GMT

    @snarl2 - I sold my PS2 to buy a launch PS3, a plan which at the time had no drawbacks because it had BC. I dread the day my PS3 dies and they try to fob me off with one without it, those launch machines aren't going to be around forever. I have to wonder if BC could be added to the Slim via a DLC emulator. If putting it in makes the machine more expensive, maybe it could be available as a paid download for those who want it? To Sony's credit though, at least the BC on my PS3 works better than that of my 360, which was a debacle in that respect. Both MS and Sony lied about BC, but MS lied worse.

  • NyGin07

    Posted Sep 26, 2009 11:17 am GMT

    excuse me guys, but my ps2 crapped out on me after awhile so i decided to get a ps3 when it first came out (the super expensive one), and was glad i could play all my ps2 and ps1 games on that one. but now you want all these people who want a ps3 to buy a ps2 in order to play their ps2/ps1 games?

  • snarl2

    Posted Sep 26, 2009 11:03 am GMT

    I am getting so sick of people complaining about BC!!! U buy a PS3 to play PS3 games!!! Sure, it would be a nice feature for the new PS3 systems. But if people did their homework, people would have got the older 60GB or 80GB PS3 system that has that feature!!! Thats what I did!( I have both systems, so I have the right to say this)

    @Salarian Chemist. Most of the games that are exclusive to the xbox360 that u mentioned suck!!! Supreme Commander 2 I am looking foward too, but on the PC, NOT the xbox 360!!! Playstation 3 is coming out and has came out with great exclusives that are not going to be seen on the xbox 360! And the only thing that is keeping the people on the xbox 360 is Halo!!! Halo is the only reason why I have an xbox 360. So for the first time, Playstation 3 sales are going way higher then the xbox 360 sales!!! GO SONY!!!

  • FF_fan2004

    Posted Sep 26, 2009 4:21 am GMT

    I'm not bothered with backwards compatilbilty on PS3, I've still got my PS2, that is mod chipped to play other region games of PS2 and PS1. (I've still got some Japanese games like super robot taisen to play, if I have time.)

  • FF_fan2004

    Posted Sep 26, 2009 4:18 am GMT

    In all fariness, each next gen consoles are bound to have good and bad game exclusives. I want a PS3 slim mainly for its good game exclusives like Uncharted. I would like the Wii so that I can get my friend to hack it and that I can play any region GC games that I still have. I've already got the 360 elite just so I can play games like Mass Effect. That and I prefer gamer points to trophies.
    I would however prefer that Microsoft spends more resources through R and D for a more slimmer and more stable version of xbox. Preferably one that isn't louder than my PC and has a red ring of death. It's been more than a week and I still haven't the time to sort out the warranty.
    But other than that I'm still waiting for further price drop because I've become miserly with my money after the 360 price at the time. I've got a few more debts to pay off.

  • sal_lam

    Posted Sep 25, 2009 3:44 pm GMT

    well said SalarianChemist. nothing else needed.

  • meateater79

    Posted Sep 25, 2009 1:51 pm GMT

    I have definite plans to buy a PS3 when the need for Blu-Ray becomes overwhelming. No need to buy a stand alone Blu-Ray player for $200 when you can own a PS3 for just $100 more. And the $50 rebate on the Elite will come in handy if I ever have to choose between paying $100 for repairs or $250 for a new 360. No hint of bitterness here, as I've had too much fun on my 360 to go without it.

  • SalarianChemist

    Posted Sep 25, 2009 2:41 am GMT

    Gears of War 3 has been hinted at for 2010 by the same people who hinted at Gears of War 2 for 2008. Remember, Gears of War 2 was not announced until just ten months prior to it being released. Like everyone has said all along, Xbox 360 has games "now," so it doesn't need to focus on "future" games in previews for literally five years the way that other console manufacturers do.

    118 Exclusive and 74 Console-Exclusive games for a total of 192 games you can't play on any other console. This does not include the 248 games currently on Xbox Live Arcade, many of which are absolutely amazing exclusives, such as Shadow Complex and Trials.

    Microsoft now has it set up so programmers of Xbox Live Arcade games can use up to 2GB of space if they need to do so, which means Xbox Live Arcade games will continue to be an excellent source for exclusive software, as amazing games like Shadow Complex have proven with incredibly high sales figures. Popular games like the upcoming remixed version of Perfect Dark in true 1080p are going to be very popular as an exclusive on Xbox Live Arcade.

    Perfect Dark 2 and Killer Instinct 3 are also games that have apparently been in development for some time. These are going to be amazing games that fans of these game series will love to play.

  • SalarianChemist

    Posted Sep 25, 2009 2:35 am GMT

    Xbox 360 has plenty of exclusive games for 2010.

    Just take a look at the huge number of games that will be released as exclusive or console-exclusive for Xbox 360 for the rest of 2009 and through 2010.

    When I list "console exclusive" it means the game is being released for Xbox 360 and PC, with the exception of Samurai Shodown, which is available for Arcades and Xbox 360.

    Alan Wake
    Crackdown 2
    Toy Soldiers
    Battle for Atlantis - Console
    Blue Dragon 2
    Crash Time 2 - Console
    Demons of Mercy
    Dream Killer - Console
    Dungeon Hero - Console
    Fable 3
    Forza Motorsport 3
    Grand Theft Auto 4 - Expansion
    Halo: Reach
    Huxley: The Dystopia - Console
    Indianapolis 500: Evolution
    Lips: Number One Hits
    Mass Effect 2 - Console
    MechWarrior - Console
    Prey 2 - Console
    Risen - Console
    Samurai Shodown: Edge of Destiny - Console
    Salvation - Console
    Sherlock Holmes vs Jack the Ripper - Console
    Supreme Commander 2 - Console Splinter Cell: Conviction - Console Theseis - Console Voodoo Nights

    Keep in mind this huge list of games that Xbox 360 is the only console to play them on represents only games that have been announced up to this point in time. There are plenty of others that still have not been announced for 2010.

  • SalarianChemist

    Posted Sep 25, 2009 2:35 am GMT

    @8ufta:

    PS3 Slim is not backward compatible with PS2 games, so it doesn't matter that PS3 has the name "Playstation" on it.

    Games that people have been familiar with on previous Playstation consoles have been in development for over five years on the PS3, and still are not released.

    PS2 owners aren't "waiting to upgrade" anything. The cumulative total of sales figures for this generation clearly show that over 100 Million next-gen sales of the three new consoles have been made.

    Xbox Live costs money to subscribe, but it essentially costs only $1 a week. This is inexpensive considering how much more Xbox Live offers.

  • Bufta

    Posted Sep 24, 2009 11:50 pm GMT

    I think Microsoft have had their time in the sun, Sony always knew that if they brought the ps3 down to a reasonable price, then they would have a landslide of popularity. After all youve got over 130 million PS2 customers just waiting to upgrade. Xbox 360 whilst having great features (if you pay for them) cannot compete with a free online service that for all intents and purposes does exactly the same job (online multiplayer) I just hope sony ramp up production fo the slim otherwise people will settle for the worse default 360.

  • RedSoxfan67

    Posted Sep 24, 2009 8:22 pm GMT

    great job for sony, i plan on buying a ps3 in due time, but im sure if ms would idk say get rid of the xbox live fee, it would sell more, but i dont mind paing for it, i find it as paying what you get for, this is a greast console war, nintendo is falling, microsoft is just doing nothing, and sony is rising

  • SGTiD1NG0

    Posted Sep 24, 2009 1:03 pm GMT

    @SalarianChemist
    I'd love to agree with you and as much as I want to, I think Sony's hit the jackpot. There's no exclusives for 360 except Halo Reach, and unannounced isn't good enough if that's the best you can come up with. I really wish 360 had some better games out this year or even next but they don't. If Gears 3 was in the works it'd be announced as Microsoft sales are slowing down.

    Heavy Rain, MAG, God of War, Modnation Racers, Uncharted 2...

  • Justforfun44

    Posted Sep 24, 2009 10:13 am GMT

    What do you expect Tretton to say? "Our PS3 is still in last place." Duh, Tretton is the ultimate Sony fanboy which is to say he is paid to be a PS3 booster. I have been in Walmart, Target, and Gamespot regularly over the last few weeks and there is no PS3 slim shortage. I wonder how many of those PS3 slim sales went to previous PS3 owners? Sony needs to sustain high sales levels to new customers for years to catch up; not just win for a few weeks.

  • thekey

    Posted Sep 24, 2009 9:37 am GMT

    This is good news now sony needs to keep banging out the games and we're golden!

  • shkar

    Posted Sep 24, 2009 5:18 am GMT

    please everyone ,,,,,,,,,stop mentioning the name wii when discussing games because wii is not by all means a competitor to the 360 or ps3...........
    And by the way this"console war" term is just stupid .........
    Both systems are great but also have issues.......

  • dybbuk

    Posted Sep 24, 2009 4:53 am GMT

    In response to Exactlamento:

    "...oh and nintendo is not "on top" it never was in the war to begin with"

    Someone needs to go tell that to Sony and Microsoft. Tell them they can stop wasting their time and money trying to copy Wii's control scheme. Because no "real" gamer is buying the Wii to begin with. Because at the end of the day I'm sure that's what they care about the most. I mean really, why in the world would they want to sell more console's to underage brats, and overaged losers. Who really cares about their money anyway!! Sony and Microsoft are obviously in this business to please and satisfy the grown up mature hard core gamers. The are not in it for the money, they don't care about that because if they did they would just try to mimic the most successful console ??????? ummmm wait a minute ????

    Dude - Do you really think the Wii's sales numbers does not mean anything to them(Sony and Microsoft)? At the end of the day its all about money. These companies don't care if they have your respect or if your a "hardcore" gamer or who is buying their product, they just want your money. It doesn't matter to them who buys their console, just as long as they buy it. I have a Wii, a 360, and eventually I'll get a slim for blu-ray, GOW, and Final Fantasy Versus.

  • Zerosumgame

    Posted Sep 24, 2009 2:49 am GMT

    Friend's house got broken into last night, the PS3 was taken, xbox 360 was untouched, clearly xbox 360 is a safer console.

  • Ehggsz

    Posted Sep 24, 2009 1:45 am GMT

    @SalarianChemist

    "Games" are purely subjective. To each his own, as they say. And in that respect, no console will ever truly be advantageous over another.

    Personally, I could care less about Halo and Splinter Cell, but I am keeping my eye on Alan Wake and The Secret World. Both of which I am skeptical of, however.

  • thisisjosh

    Posted Sep 24, 2009 12:37 am GMT

    dude," Exactlamento" down there isn't even giving an argument, he's just talking trash about everything- and for what? dude's full of garbage. i don't really ever understand kids like that going after specific companies only because they don't know or can't know about the other consoles.
    "thekey" thinks that this sales jump happened like a miracle- nevermind the fact that they slashed the price and completely redesigned it (the ps3)- why would they do that in the first place? you know why.
    this place gets so stupid to read sometimes, with everyone just following everyone else in terms of what to say and what to write. i'm glad all 3 consoles are doing well, because in the end all that means for someone like me is that there will be more content and exclusive content for me to check out.

  • SalarianChemist posted Sep 24, 2009 12:35 am GMT (does not meet display criteria. sign in to show)

    SalarianChemist

    Posted Sep 24, 2009 12:35 am GMT (hide)

    2010 is being called the "Relaunch of the Xbox 360" because there are so many exclusives being released for Xbox 360.

    I was watching a TV program where analysts in this article discussed how Xbox 360 is definitely getting all sorts of amazing games such as Halo: Reach, Alan Wake, Splinter Cell: Conviction, Mass Effect 2, and MechWarrior.

    I was also excited to hear that games not previously announced such as Gears of War 3, Perfect Dark 2, and Killer Instinct 3 may end up being released in 2010.

    In the end it is always about "games" in the console industry. And games truly is where Xbox 360 has the biggest advantage over the competition in every genre of gaming.

  • DFen

    Posted Sep 23, 2009 10:07 pm GMT

    microsoft is just trying too damn hard to stay on top of there game, but I think sony is gonna win this one in the end

  • monson21502

    Posted Sep 23, 2009 6:58 pm GMT

    natal is gonna be huge. kids are gonna go nuts over it

  • Exactlamento

    Posted Sep 23, 2009 6:57 pm GMT

    ...oh and nintendo is not "on top" it never was in the war to begin with
    the wii is more of a "plug in play", casual gaming chew toy...
    it only attracts sugar-doped, hyper active school children and "wish they were hip" middle aged parents, both of which will forget they have a wii in a few years. These are not gamers, they do not enjoy games and analyze the market for years, its just a fad to them...
    Nintendo has won the casual war...but that garners no respect just a quick buck

  • AlmostHaslem

    Posted Sep 23, 2009 6:55 pm GMT

    i do that because i prove my point to people who say one console is better than the other!that is something people who have one console keep saying because they dont know the facts about the other and yes mass effect did have laggy framerates but hey play SkAtE for both of them and you will see my point in the frame rate part also gta4 i also agree the 360 should upgrade 2 bluray. or they should have been the smart one by having built in hddvd on the 360 i do think they should cut the price a bit more on the 360 due to the fact that they dont have a high defenition format to support it, because dvd is not ganna cut it take lost odessy for an example 4 disc!why? because it needed more than 37 GB

  • Exactlamento

    Posted Sep 23, 2009 6:46 pm GMT

    I feel that microsoft is devalueing their system. By doing the rebate its almost as if they are screaming "buy me PLEASE!!!", instead of confidently listing there strength. I applaud sony for really stepping up their advertisment too, it gives off the impression that the system is powerful but not too dirt cheap that you get suspicious
    When things get their prices slashed like this in quick suscession it seems fishy to the consumer

    ...Shame and i used to be a 360 fanboy...time to get me a slim

  • LordRaymond

    Posted Sep 23, 2009 6:04 pm GMT

    The tide is turning and the war will reach a climax during Christmas season.

  • kidvenom2001

    Posted Sep 23, 2009 6:03 pm GMT

    Every comment section I look at makes it feel like I am getting the wrong meaning behind the article. Why is everything a console war? What is the war about? Most people I know said the peace treaty was signed by just getting all 4 systems. They all will not dissappoint when it comes to being able to play games. Yeah, all of them sport different features, and also excusive content, but it is more of a reason to have more then one console and a pc. Enjoy the games people. I know I will. I am happy to frag people not on one system, but all three. Haven't even looked at wii for fragging, but oh well. It's up to the cooperate office to fight, and up to the consumers to benefit.

    While you fight that your ps3 is better, and vice versa, I will enjoy my ps3, xbox360, and my pc. I had my fun on the wii, but the kids have that now. Until all developers start making games for one system only, then I will join in on these useless "what system is better". Lol i wouldn't have a choice.

    Now back on topic. I think PS3 slim will be a good plus for the system. If I couldn't afford it before, I sure would have set my eyes on picking up one of these bad boys. Actually speaking even though I got one, it would be cool to have a smaller version, and sell my other one.

  • darkchrisify

    Posted Sep 23, 2009 5:21 pm GMT

    Microsoft did a dumb move lowering prices

  • Vari3ty

    Posted Sep 23, 2009 5:09 pm GMT

    Tauu couldn't have said it better myself.

  • Tauu

    Posted Sep 23, 2009 5:04 pm GMT

    This is the most epic console race of all time. Nintendo is on top but falling. Sony on the bottom is rising. Microsoft is in the middle going nowhere. How is this all going to end?

  • HyruleanLink

    Posted Sep 23, 2009 4:52 pm GMT

    My local Gamestop mentioned that they were getting a limited supply as well, but Best Buy has PS3 slims stacked in the store. Just not in the San Fran area.

    No doubt as well that PS3's will go off the shelves this holiday. All consoles are ripe for selling this holiday.

  • Jhoalot

    Posted Sep 23, 2009 4:52 pm GMT

    @AlmostHaslem

    You are touching completely another theme,you just are not happy with this new

  • im-a-roustabout

    Posted Sep 23, 2009 4:49 pm GMT

    @ AlmostHaslem I'll never understand why people like you seem to always have two copies of the same game.....why?? People are always saying, I have 3 360's and 2 ps3's and I LOVE my 360's!!!! Wtf? for reals

  • kingsi7e

    Posted Sep 23, 2009 4:42 pm GMT

    @dogpigfish
    SNES my man, SNES.

  • dogpigfish

    Posted Sep 23, 2009 4:38 pm GMT

    Oh, and the best system to ever come out was the NES.

  • dogpigfish

    Posted Sep 23, 2009 4:37 pm GMT

    I agree. It sounds like MS needs to drop the XBOX Live service fee. It doesn't motivate me to buy the XBL over the Playstation Network version. It sounds like they are putting a lot of weight on Natal. A little too much if you ask me.

  • HerbalVideogame

    Posted Sep 23, 2009 4:31 pm GMT

    BY THE WAY....never trust a gamestop employee...

  • kingsi7e

    Posted Sep 23, 2009 4:31 pm GMT

    @AlmostHaslem son, play some Mass Effect. That thing gave me less framerate on the XBOX than any game on PS3.

  • monson21502

    Posted Sep 23, 2009 4:27 pm GMT

    xbox live needs a 50 dollar price cut. psn is just as good in playing your games online. its only a little bit laggier on psn. but that might be my fault because im useing it wireless. if ms really wants to contend. they need to drop the fee now. before more 360 owners pick up a ps3 and see that they can play for free

  • kingsi7e

    Posted Sep 23, 2009 4:27 pm GMT

    It's funny how people right away assume that XBOX is a better console just because more people have it. Forget the fact that it came out a year prior to PS3 and was a first next-gen console, the price of premium PS3 was always repelling for an average users. Not every one had 660 bucks for the first 60GB PS3's, and even right now not all have an extra 300 (plus games) bucks to afford the Slim. On the other hand XBOX was always cheaper, and since so, more people bought it. Sales do not represent how good the product is; allowing such judgement would mean that Wii is the best console on the market, and the best console ever to come out was NES. Which is false.

  • HerbalVideogame

    Posted Sep 23, 2009 4:27 pm GMT

    The PS3 has always been the dominant system worldwide. It's only in the U.S. that it has been second to the "other system." It's about time it started selling well here in the states, now people will see what the next-gen is really all about yeah? Yeah.

Subscribe to GameSpot's YouTube Channel

Hot Stories

Newsmakers

Featured Stories

Submit News

Got tips? Send them in!