Feeds

Sony to strike gold with PS Vita - if it cuts the price

Analyst says success comes for less than $200

Internet Security Threat Report 2014

Sony may shift more than $2.2bn worth of PlayStation Vita handheld consoles - some 12.4m units - by the end of 2012, it has been forecast. The catch: the price has to come down under $200.

The prediction comes from market watcher Strategy Analytics, which reckons the gadget could revive Sony's fortunes.

That $2.2bn figure represents a year on year increase sales of $1.2bn for Sony's Consumer Products & Services group, based on an average sale price to retail of $180. But the Vita's real benefit, SA reckons, will come through big content sales.

"The PlayStation Store will have a vital role in selling games, videos and other content through its online access," said senior SA analyst Jia Wu. "We believe that Vita will cause Sony’s 2012 portable console software revenue to grow by $800 million compared with 2011.

Sony is in a strong position, says Wu. Rivals Apple and Samsung have no games-centric brand or console business to leverage, as Sony does with the PS3. While Microsoft does have a console business, with the Xbox 360 and Xbox Live, it lacks a series mobile gaming device. Window Phone is tied to Xbox Live, but like the smartphone and tablet platforms from Apple, Samsung and others, it's not a mobile platform synonymous with games.

Still, it all hinges on Sony's ability to attract a broad audience to the platform, and it won't find that easy if it's not very smart with its pricing, Wu said. In short, it has to compete with low-cost products like Amazon's $199 Kindle Fire.

"Sales of the Wi-Fi version of PlayStation Vita at $249 initially exploded in Japan, selling more than 300,000 units in the first week of release. But the new console is 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 Nintendo 3DS."

Wu reckons North American and European sales to show the same pattern: the fans plough in at the start and then sales slump. That, he says, suggests "a price cut will be essential to stimulate sales and forge a competitive position". ®

Watch out for Reg Hardware's PS Vita hardware and games review special on Monday

Providing a secure and efficient Helpdesk

More from The Register

next story
Will.i.am gets CUFFED as he announces his new wristjob, the PULS
It's got four KILOWATTS of something, apparently
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Jaguar Sportbrake: The chicken tikka masala of van-sized posh cars
Indian-owned Jag's latest offering curries favour with us
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Here's your chance to buy an ancient, working APPLE ONE
Warning: Likely to cost a lot even for a Mac
Is living with Dolby Atmos worth the faff?
Subtle, naturalistic ambiance – perfect for Transformers 4
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.