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N'Gai Croal on Why the PS3 Is In Trouble

Exchanges like the following are why N'Gai Croal is one of the gaming reporters that you should be following. Where most reporters seem content to regurgitate what the console manufacturers are telling them, N'Gai actually does some independent analysis. Anyway, here's a snippet of his interview with Larry Probst, the CEO of EA Games. N'Gai's comments are in bold while Larry's are in regular text.

PS3 is supply constrained and will likely remain so until early 2008. 360 demand is--

Whoa, whoa, whoa. Early 2008?

You don't think so?

I don't think they'll be supply constrained that long. You think all through 2007 they'll be supply constrained?

Well, looking back to the PS2 launch, Sony shipped a million units for the Japanese debut, most of which sold in the first 48 hours. But for the Japanese launch of PS3, they only shipped around 80,000 units, more than ten times fewer machines. So they're nowhere near meeting demand in Japan. In North America, Sony shipped just under 500,000 units for the PS2 launch, but only 200,000 units for the PS3 launch. So they don't have enough supply to meet demand here. Sony launched in Asia with less than 20,000 units. And early next year, they have to start stockpiling units for the European launch in March 2007--assuming that date doesn't slip. So we're looking at four territories where supply probably won't meet demand, and by the time Sony starts to catch up, it'll be holiday 2007, where the combination of big AAA games and gift-giving will increase demand even more.

Posted by on 7 December 2006 at 8:35 AM

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David is an occasional blogger, software engineer, Nintendo fanboy, liberal, news magazine addict, voracious TiVo user, and bibliophile. He was born in St. Louis, grew up in southern Indiana, and returned to St. Louis to attend Washington University. He hasn't managed to escape yet. He's a fan of free wine tastings, too many tv shows to name, and eating out.

David makes his living developing web applications used internally by his employer. He doesn't blog about work because he's heard too many stories about that causing workplace troubles.

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