GameStop: PS3 and Wii shortages impacted Q1 earnings
GameStop recently held a quarterly earnings call and delivered some interesting news. COO Paul Raines talked about the massive hardware shortages Q1 of this year.
It may seem difficult to believe but for the most part of Q1 there were serious PS3 and Wii shortages. The Wii was out of stock 50 percent of the time, which isn’t all that surprising as Nintendo seems to have the same problem every year.
However, everyone was shocked when Raines revealed that Gamestop stores were out of stock for the PS3 for 80 percent of the time. Considering that GameStop is the largest video game retailer in the U.S. this is shocking news indeed.
I reported that the PS3 seemed to be back-ordered for most of February through April by checking the Web pages for GameStop, Amazon and Best Buy. I even reached out to Patrick Seybold, Senior Director of Corporate Communications for SCEA, who stated, “We expect the tight inventory to loosen up later in Spring.â€
The most surprising bit of information out of this is how well the PS3 sold despite being out of stock 80 percent of the time. If you recall, the PS3 sold neck-and-neck to the Xbox 360 during that period.
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76 Responses to “GameStop: PS3 and Wii shortages impacted Q1 earnings”
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May 21st, 2010
Excuses people?
May 21st, 2010
When my fat 40GB Ps3 ylod’d on me, I traded it at ebgames, and used some vouchers, but to get my 250gb unit I had to do a lot of ringing around to find a store that had them, luckily I scored the last one at a store.
A friend was also getting one and she had all sorts of problems finding a store that had the ps3 in stock. Apparently there were plenty of 360 for sale, just not enough PS3′s.
May 21st, 2010
Rhino:
YLOD is the worst.
Once Sony gets outer manufacturing hell and starts fulling every store’s order the Wii and Xbox 360 will be left is the dust. Sony already got the greatest must have games now all they need is to build PlayStation 3 faster ASAP.
Microsoft must be scare this year. Once they become 3rd with no good game or any game exclusive whatsoever. Sony will have still the best and most exclusives plus the best new IP’s. Microsoft is going to have to give up like SEGA did to Sony.
May 21st, 2010
Wait one second here. The shortages are for real. I thought it was a pbot excuse as to why the ps3 isn’t ourselling the 360 in NA. Who would have thought.
May 21st, 2010
Wait one second here. YLoD is for real? I thought is was an xbot fabrication. Who would have thought.
May 21st, 2010
And that has what to do with the story?
I do find it amusing that you responded. It must of hit close to the mark.
May 21st, 2010
So let me see, 4 years into the production of the console Sony “suddenly” have manufacturing problems and can’t provide enough. Sure, and pigs can fly too. They are clearly not artificially limiting the supply to boost perceived desirability and increase demand. Oldest trick in the marketing book. In fact I am surprised MS haven’t tried to do the same thing now as well.
May 21st, 2010
Wow… That makes so much sense. They actually WANT to sell less. And now when they’re finally making a profit.
oh, and MS did have shortages at launch, but just like this I’m sure it wasn’t to boost demand.
May 21st, 2010
“oh, and MS did have shortages at launch”
but wasn’t that like… I don’t know… over four years ago? And over 3 years ago for PS3′s launch?
But I do find it amusing you responded. Must have hit close to the mark.
May 21st, 2010
PS3 for the win!
May 21st, 2010
@phranc
does it surprise you to see Carlb attempting to downtalk Sony once again..if this is bad enough you haven’t seen this
he is dead wrong about something, yet he still argues for the sake of being a troll
http://gamer.blorge.com/2010/05/16/fable-iii-box-art-confirms-a-pc-version/comment-page-1/#comment-121143
May 21st, 2010
@CloneB
If you’re going to copy my response you should try and make it make sense.
I’m picking up another one (fat’s going to the bedroom) and they are pretty difficult to find. I’m also looking for the CECH-2101 model (40nm RSX and Cell, and uses 15% less power)
I heard that the production of the new units is the reason for the shortages.
Sony more than likely slowed production as to lose less money as these units will break even or even profit.
May 21st, 2010
the shortages came after the high demand and new hardware production of the Slim model (which had gone through 2 SKU)
the Slim launched 6 months ago (not 3 or 4 years) and it didnt meet demand. yet even after the shortages the PS3 is matching the 360 sale numbers in US and outselling everywhere else. in fact the PS3 has been outselling the 360 for the first 5 months of 2010, I guess demand must be high then
May 21st, 2010
“So let me see, 4 years into the production of the console Sony “suddenly†have manufacturing problems and can’t provide enough. Sure, and pigs can fly too. They are clearly not artificially limiting the supply to boost perceived desirability and increase demand. Oldest trick in the marketing book. In fact I am surprised MS haven’t tried to do the same thing now as well.”
Actually Rimmer is right about supply and demand.
May 21st, 2010
Yes, but is he right about it in this instance?
Amazon and Gamestop finally have stock. Yesterday they didn’t.
Gamestop has refurbished and Amazon had a 2-4 week wait.
May 21st, 2010
“Actually Rimmer is right about supply and demand.”
So let me see, There is no chance demand went up and supply got thin?
May 21st, 2010
after releasing MAG, GOW3, FF13, MLB10, Heavy Rain, ModNation etc, I’m pretty sure Sony would have liked to score a few more units sales because of this title releases.
May 21st, 2010
Roca just ended any debate on whether or not this was fabricated as a ploy to boost sales by demand.
Why on Earth would they plan on a shortage when FF13 was coming out?
Best case scenario..people wait until they can get a PS3 for that game.
Worst case…They buy a 360 to play it.
Sure……That’s exactly what Sony wants. People buying a different console to play that game.
That’s basically the conversation ender. Thank you Roca.
May 21st, 2010
Some people come up with the most asinine statements. Sony is having a shortage of hardware because the demand for the system is extremely high right now.
May 21st, 2010
“Sony is having a shortage of hardware because the demand for the system is extremely high right now.”
That can’t be true, there is no way in HELL that the PS3 can outsell the 360! Bite your tongue woman.
May 21st, 2010
you welcome phranc
May 21st, 2010
Ncaissie,
Lol.
May 21st, 2010
Hehe good points: here’s my take
At first I initially thought, with the rumored new die shrink…er cell shrink…whatever, I thought..hmmm yeah Sony artificially limiting units to clear inventory and make way for the new architecture…but then I thought…why would they do that with final fantasy coming…and god of war 3 a month later…and mag and heavy rain in between…
Roca nailed it I believe..very high demand for it because of its exclusive Q1 lineup…;)
May 21st, 2010
Rimmer
Sony needs to try every trick in the book since PS3 exclusives don’t sell consoles.
May 21st, 2010
“Sony needs to try every trick in the book since PS3 exclusives don’t sell consoles.”
LOL you are priceless.
you mean:
“Sony needs to try every trick in the book since exclusives don’t sell consoles.”
May 21st, 2010
Happy B-Day Pacman!
Click on the pacman google logo to play pacman. LOL
May 21st, 2010
just hit your enter key on the Google page to start. Not clicking on the logo.
May 21st, 2010
No I think I got it right the first time but Blorge would never write that article on here.
http://www.gamesindustry.biz/articles/research-killer-apps-dont-sell-consoles
May 21st, 2010
“Instead, the most motivating factors were Blu-Ray capabilities, the recent price reduction of the PS3 and the library of games currently available, which were cited by 65, 63 and 62 per cent of those questioned respectively. ”
Apparently you’re wrong CAD.
62% said “library of games currently available”
That covers exclusives doesn’t it?
I’ve think we covered this BS plenty of times. One game doesn’t and shouldn’t be the key factor for a purchase. Sometimes in combination it could be the breaking point for a fence sitter.
hey..look at that. Blu ray is the #1 reason. I guess some people do see that as a valuable part of the console.
May 21st, 2010
Blu-ray capabilities include games and most of the game that take advantage of the bluray disc are the PS3 exclusives
but like phranc said, one game will move a few system but the whole library is the real system seller.
May 21st, 2010
Well sure a collection of games will make it justifiable. It’s on my list but I’m in no rush. It may never happen because I have to much on my plate with the 360 already so what’s the point really. I got the best online experience and that’s what I care about the most. My car will see that money befoe PS3 does. I’m due for an ECU Flash among other things.
May 21st, 2010
I purchased a PSP just to play GOW Chains.
May 21st, 2010
CAD
“I got the best online experience”
Let me fix this for you:
“I get the best online experience, in my opinion”
Not playing on PSN…that’s just what it is, an opinion.
Online gameplay is pretty much equal on both systems…but here’s the kicker:
Carlb’s $35 dollars doesn’t net you or him more stable servers…360 bc2 doesn’t play any better than ps3 bc2…where’s your money going…that’s my question:
If the servers are not any better, where is gold members’ $35-50 going?
May 21st, 2010
If playing games online was free for silver members, how many of you guys would continue to pay for live?
I see Carlb would from past posts. Maybe it’s worth it for Netflix integration. I guess I could see that.
@Carlb
If Netflix was similar on PS3 as it is on the 360 would a gold account still be worth it to you?
May 21st, 2010
“I purchased a PSP just to play GOW Chains.”
Yeah. I borrowed my brothers. Thats the plan for Ghost of Sparta as well.
May 21st, 2010
Regardless of Free or pay service LIVE is the best when you break it down Feature for Feature. Cross game chat, Parties and the whole social networking experience is something PSN can’t touch. Servers are servers and I’ve heard many of you talking about PSN dropping service but that is hardly the case with LIVE. I would be happy if I didn’t have to pay but when you compare what LIVE has to offer you appreciate it even more. Bottom line is LIVE is setup for true hardcore online gaming.
May 21st, 2010
I’ll give you Cross game chat and Parties. Social Networking is probably better handled by Home.
Cross game chat is rumored to be in a free update for PS3.
Parties are good, but some games eliminate the feature because of cheaters.
So Cross game chat and Parties are better than 1st party dedicated servers that can hold more than 16 ppl?
May 21st, 2010
” Cross game chat, Parties and the whole social networking experience is something PSN can’t touch. ”
Yeah, 13 year old guys showing off their junk. I wouldn’t want to touch that. It’s ok that you do CAD.
To each his own.
May 21st, 2010
Its funny, gold membership nets you two things: online play and x game chat….
CAD
All those features you mention, are available on silver…my prob is not with silver, or live in general, its with gold…
Gold itslef is not better than psn…period..
Your own customer base is proof of this
Psn has over 35million active online gamers that play online<– that play, PLAY, Plllaaayy, online..
The 360s clientelle is split, silver/gold…only 45% of live members are gold subscribers…360 hit 40million….well round up and use half…20million Gold subs that get to PLAY online…
PSN: 35million
Gold: 20million….
Hmmm it seems to me the "better" online experience goes to the PSN…
Now, in terms of UI interface..its subjective…none has advantage here
In terms of offering content and extra goodies…ill go ahead and say..hey younknow what? LIVE edges out PSN here.
That's the difference
May 21st, 2010
@ jojo
xbox 360:
“The former says that Xbox Live Gold (paying) members “top 23 million, making it the biggest social network connected to the TVâ€.”
ps3
“Meanwhile, SCEA president Jack Tretton wrote on the PS Blog: “We’ve successfully established that we’re not just a disc-based powerhouse, but we’re also a digital powerhouse. PlayStation Network experienced huge growth last year, marking its best revenue month in December – a 155 per cent increase in sales from the previous year. More than 40 million of you all over the world are coming to PlayStation Network to access multimedia content and to enhance your social gaming experiences.â€
numbers released in feb.
You can’t compare these numbers as one is xbox live gold paying members (firm #), & the other is vague 40 million of you etc. how many of those psners are multiple accounts, everyone I know has min. 2-3.
your comments,
“Hmmm it seems to me the “better” online experience goes to the PSN…”
“Now, in terms of UI interface..its subjective…none has advantage here”
Dude, I use both, interface, better online experience are much better on xbox live, period
More of your fanboyism bs.
May 21st, 2010
“Dude, I use both, interface, better online experience are much better on xbox live, period”
I have tried both and I have a different opinion.
I played SSFIIHD on XBL and dudes were pulling cords and quiting on you before match was over.
MW2 DLC experienced a total locked down for a fair amount of time the day it came out.
XBL has gone down for weeks during the holiday and during the summer.
MW2 patches all came out first on PSN and most problem are already fixed while patches came out days/weeks laters on XBL but somehow more hacks find its way to ruin the game on XBL rather than on PSN
p2p servers sucks compare to dedicated servers (which PSN offers for their first party games)…you have experience lag on some 16-24 player game on XBL but I have yet to experience any lag on MAG a 256-player game.
May 21st, 2010
as for the UI
“The XMB interface won the Technology & Engineering Emmy Award for “Outstanding Innovation and Achievement in Advanced Media Technology for the Best Use of Personal Media Display and Presentation Technology”
http://www.emmyonline.tv/mediacenter/tech_2k6_winners.html
May 21st, 2010
have = can*
May 21st, 2010
Look at Google’s homepage. Bing is dead Yahoo too. Pac-Man.
May 21st, 2010
oh, oh, here’s another fanboy
@roca
well, I’VE had COMPLETELY OPPOSITE experiences than you.
can’t say I remember xbl ever being down for weeks. Christmas week-end two years ago, I heard about it but no problems for me.
That award you quoted is from jan 8 2007. 3 1/3 years ago. xmb was cutting edge back then. It’s not anymore.
In that same link, microsoft nodded for 1-streaming media architectures & components, 2-pioneering work in near and real time fully programmable shading via modern graphics processors. So I guess by your fanboy mentality, xbots should start praising microsofts graphics & streaming architecture, where’s HH when you need him?
Nice try though,
You fanboys are pathetic. I mean xbots too!
May 21st, 2010
PS3 FTW!
May 21st, 2010
providing proof is being a fanboy now?
sorry but I don’t recall the NXE getting any awards…..or any praise from the critics at all (other than is a much better UI than the old one)
claiming dedicated servers are better than p2p server is being a fanboy?
May 21st, 2010
Here’s a link for xbl winning an award from guinness world records last year!!!
Gee, I guess that proves it xbox live really is the best, rolls eyes
http://community.guinnessworldrecords.com/_E3-Update-Xbox-Live-awarded-with-record-for-the-Most-Popular-Online-Console-Gaming-Service/blog/298980/7691.html
May 21st, 2010
that’s not a UI award
but lets compare…pay attention to the key words
you XBL live awards is for being the most “popular” online console
the XMB awards is for the “Best” Use of Personal Media Display and Presentation Technology
May 21st, 2010
@Cad
“Servers are servers and I’ve heard many of you talking about PSN dropping service but that is hardly the case with LIVE.”
Who’d you hear that from, my only gripe with PSN dedicated servers that in my experience they become easily overburdened in the first week release of a game. The problem is usually ironed out as fast as RDR was.
May 21st, 2010
LOL PS3 FTW!
May 21st, 2010
I just love how, If you don’t agree with MS fail rate and call it like it is they call you a fanboy. LOL Classic.
May 21st, 2010
“you XBL live awards is for being the most “popular†online console”
Awarded by a group of idiots who probably never played anything but windows solitary.
LOL
May 21st, 2010
Insomniac Games on Facebook:
“Mmm… Friday company pizza lunch followed by an afternoon company-wide playtest. Perfect way to kickoff the final afternoon of the week”
I bet they are play testing Resistance 3.
May 21st, 2010
J the idiot
It doesn’t matter if one is paid or not, LIVE have multiple accounts as well, nice try..
Its funny you xbots say ” Gold LIVE is better, even though we pay”
Yet when proof is provided that shows the free model is clearly better and has more users online, you THEN bitch about one being free and one being paid and you can’t compare em…rofl
Sorry but 40 million > 23million no matter how you slice it…its BECAUSE its free MORE people play online….
As far as online gameplay experience…you can’t say LIVE is better, because 1) your paying and gaining no better servers…I can say PSN online gameplay experience is better because 1) I don’t have to pay and 2) my servers are equal or sometimes better than yours
That’s the difference
May 21st, 2010
Actually Sony has the most online connected consoles, so that award has been given under false pretenses.
M$ should be made to publicly hand it over to the rightful winner – Sony.
May 21st, 2010
“Carlb attempting to downtalk Sony once again..”
Not at all, just the overpraise of it and the trash talking of 360 here.
@Frankenstoes (a cross between Al Franken and Frankenstein, both decent enough guys, and smart too, but their toes probably still stink at times
),
“I heard that the production of the new units is the reason for the shortages. Sony more than likely slowed production as to lose less money as these units will break even or even profit.”
That is, frankly, a much more reasoned statement and a turnaround from your first one. It makes more sense given the circumstances.
“Amazon and Gamestop finally have stock. Yesterday they didn’t. Gamestop has refurbished and Amazon had a 2-4 week wait.”
This has been ongoing since the Slim’s release and before the “Q1 lineup”. Your theory of them slowing production to avoid losing too much money still holds up. I won’t deny there is a heightened demand for the system (I would chalk it up as mainly due to the price drop/matching with 360, and the redesign, not the “Q1 lineup”), but nothing Sony, of all major CE hardware manufacturing corporations, couldn’t have kept up with by this time if they really wanted to.
As for Sony not being able to create an artificial shortage because of losing potential software sales on recent releases, well, they already have a potential pool of ~35 million owners to purchase them, so one quarter’s (or even three) worth of “controlled” hardware production that produces a “shortage” while these new games release is perfect timing. People who already own it talk it up and buy the titles (plenty enough for Sony to make a profit on their software releases), meanwhile those who don’t anxiously wait in line and do what they can to get their hands on one.
“If Netflix was similar on PS3 as it is on the 360 would a gold account still be worth it to you?”
Not nearly as much, but still somewhat. I don’t buy nearly as many games as some here, so instead of spending $60 to $240/mo I spend about $50 on a combination of things like GameFly ($23 for 2 at a time right now), Gold, digital downloads, magazine subscriptions, etc.
For Gold, I still enjoy Last.fm (yes you can get it on PC/iPhone/etc. but I still enjoy the console compatibility as well), Zune (same), higher discounts than what is already offered with Silver, early exclusive previews, different content, etc. I have yet to get into Facebook/Twitter, but I have enjoyed a couple of sessions of 1 vs. 100. I also like how every year they come out with something new that may or may not be incorporated over a year later on PSN for free.
Would I pay for something similar or greater on PSN? In a heartbeat. Have I enjoyed XBL for free in the past? Yes. PSN too? Yep. Do I think one is the “best”? No sir. However. I still, to this day, get dropped from PSN while just on the store, but not while on Live. I don’t know why, and I even tried making the PS3 have the priority on my network (with Roma’s help), but no luck. The same thing happened to me stateside.
“dudes were pulling cords and quiting on you before match was over.”
The last time I found a reason to play online XBL Gold was for GTAIV (I’m thinking the next may be for RDR), but even back then you could rate and block people for good so you never had to deal with their behavior again. Invest time in either system’s network for any game and you will find those who you can play the game with as it was meant to.
May 21st, 2010
Top Gun Flying Exclusively to PSN
http://www.justpushstart.com/2010/05/20/top-gun-flying-exclusively-to-psn/
May 21st, 2010
Flying into the danger zone!
Kenny Loggings FTW
May 21st, 2010
roca, my point was that an ‘award’ from the ‘national academy of television’ from january of 2007 means nothing. Like an award from ‘guiness world records’ means nothing or ‘award’ from ‘a group of guys named steve’ means nothing.
Xbox live has been evolving constantly since 2007, including it’s UI. It is a completely different interface that 2006 (from when it would have been compared to xmb for the jan 8/ 2007 awards). It was not better UI than sony’s back then, it is now. It has adopted the same left, right, up, down menu scrolling & added to it. It’s not just that xbox live has extras like cross game chat & party chat, play your own music in game etc. It’s how easy it is to use. ( On my friends list, I can SEE a friends custom avatar, the box cover of what they’re playing, the avatars of those in their party & personalized comments)
I called you a fanboy because you constantly ATTACK anyone who criticizes sony.
May 21st, 2010
BTW I got a free years subscription to Napster.
I haven’t used Napster since back in the day, before those A-holes from Metalica cried and ruined it for everyone… But I digress, it’s actually pretty good.
May 21st, 2010
I’m not a fanboy as I can give credit where credit is due.
How about that wii, Just found out that my 85 year old grandmother has on & likes wii bowling.
Nintendo’s f*^%ing genius.
May 21st, 2010
^^ j the idiot
About nintendo: completely agree
About the fanboy comment: I think exactly the same, I give ms their due credit…I’ve stated numerous times…if they got rid of the sub fee…id own one…that’s my one giant gripe about it..its a principality issue with me, I don’t see where my $$ is going..my bro even offered to pay a year for me…again its a principality, there’s principalities smokey!
@ carlb
I dug your post…that’s the carlb we like! But two things: hey, ps3 praises are well deserved as of late, they are tearing shit up!
2)” Invest time in either system’s network..”
Ii won’t get into the differences that I found from doing this, instead I will say this: this is the best comment I seen you post. You spoke this without any biased, having experienced both. I have no prob with this type of commentary from ya! Bravo plus 1
May 21st, 2010
“Top Gun Flying Exclusively to PSN”
Looks cool Ivan. This was a good exclusive to the the iPhone/iPod Touch about this time last year as well. Some pretty funny easter eggs included flying a race car as Cole Trickle, playing volleyball over Goose’s grave, and flying a spaceship as Laserface Jones. Different dev this time around though.
“The 3D animation is glass smooth and the accelerometer controls are highly responsive and feel ‘just right.’ Anyone who enjoys a quality non-simulation flying game is in for a treat.”
toucharcade.com
IGN Score: 8.2/10 “Impressive”
http://wireless.ign.com/articles/980/980772p1.html
Thanks jj
“ps3 praises are well deserved as of late, they are tearing shit up!”
I agree. I’ve been saying it for awhile now, and it still holds up: Microsoft needs to step it up if they want to maintain their total sales lead, because I don’t think Natal is going to cut it.
May 21st, 2010
the awards doesn’t mean nothing but somehow your opinion is more creditable?
May 21st, 2010
see more Epic Fails
Testing something…
May 21st, 2010
Wasn’t what I was expecting.
May 21st, 2010
http://www.hydrapinion.com/index.php/play/2010/05/21/playstation-3-s-playtv-australia-s-best-selling-pvr
May 22nd, 2010
JoJo I’m not getting into it but your facts are so wrong when you don’t even know the difference between silver and Gold services. When you get a 360 maybe you can actually get some facts straight. LIVE is better Period this is not a debate. Reviewers say it all the time so be delusional if you must. Oh and 35 million users are not on the PS3 alone. That is a figure composed of PS3, PSP and Online PSN services. Sony has never broken it down as to how the users are split.
May 22nd, 2010
CAD:
You an idiot get a PS3 before you start your bs.
May 22nd, 2010
i agree with ivan. . .CAD why dont you actually buy a fucking PS3 before you start comparing PSN and XBL. Xbox 360 is the shittest console ever, period. everyone knows this. your just being delusional you dumbfuck! haha
PSN FTW
May 22nd, 2010
actually CAD, the 35 million number is the number of people that own the PS3. There’s probably more accounts than that created due to the reasons you stated (and multiple accounts). Jojo was merely telling you how many potential PS3 users could be online as playing online is free and included with every PS3.
One thing about live that sucks about Live, and feel free to correct me if I’m wrong CAD (as we stoopide PS3 ppl don’t know anything about anything)…. is if you want multiple people to be able to play online on a single 360 you need multiple gold accounts. This could suck as if lets say…you have a roommate, that roommate is stuck either playing games on your account and screwing up you K/D rartio or having their own account.
May 22nd, 2010
That is exactly why ea is wrong to charge for used online franc.
May 22nd, 2010
It makes psn no better than live.
May 22nd, 2010
“if you want multiple people to be able to play online on a single 360 you need multiple gold accounts. ”
that’s true………it sucks for 360 users
I also know many ppl who create new XBL accounts to get the free 1-month gold
May 22nd, 2010
Roca.:
“that’s true………it sucks for 360 users
I also know many ppl who create new XBL accounts to get the free 1-month gold”
Well you know me, i used to do that many times. I think that’s why i haven’t been ban yet.
PSN accounts me:
European 1
USA 3 but i only use one made both by mistake. I hope Sony starts deleting accounts that haven’t bee log for about 3 months.