Feeds

Smartphones rain on Sony PS Vita parade

Pricey handheld console will struggle

Secure remote control for conventional and virtual desktops

Analysts have predicted grim times for the PlayStation Vita, with Sony set to lose money on every unit it sells.

SMBC Nikko Securities analyst Kazuharu Miura reckons the company will sell 2.5 million Vita units by the end of March 2012, but will lose roughly ¥5000 (£40) on each unit, Bloomburg Japan reports.

Miura said the losses could drop to ¥2500 by 2013, but insists these figures are totally dependant on the software Sony launches with the device, a view shared by other market watchers.

Sony NGP

Ace Securities analyst Hideki Yasuda said it will be difficult for game-makers to work with a system that has no guarantee of success, so until the device gets a public reaction, developers will be wary. Yasuda also thinks the system has a resolution too advanced to create games quickly, extending development times and making it even longer before good punter-pulling content arrives.

Not shaping up too well for Sony then. Even developers are throwing their hat in the ring, claiming Sony is heading for a costly launch that has little chance of success, GamesIndustry reports.

But Sony is no stranger to losing money on its hardware. For years the company was down on the dollar for every PlayStation 3 unit sold. Fortunes eventually turned around there, though.

But it's handheld consoles we're talking about here, which have taken a battering from the mobile-gaming industry recently. To put things in perspective, the 2.5m Vita units predicted to sell in Q1 2012 is a drop in the ocean compared to the 16.24m iPhone 4s and 7.3m iPads that Apple pushed out in Q1 this year - even more so if you add in iPod Touch figures and sales of Android smartphones.

With a launch price of £280 - albeit for a 3G and Wi-Fi model - the Vita's price point could be a stickler too, but if Sony will in fact be losing money on the console already, by how much can it genuinely afford to lower the price by? Following Nintendo with extreme price cuts may not be a viable option.

The Sony PlayStation Vita will launch in Japan around Christmas. It ships over here in early 2012. ®

Intelligent flash storage arrays

More from The Register

next story
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
The IT Crowd's internet in a box gets $240k of crowdcash for a cause
'Outernet' project proposes satellite-fuelled 'Lantern' WiFi library for remote areas
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.