Seeking Alpha

2013 PS4 sales topped 4.2M; Sony announces cloud gaming/TV services

  • Sony (SNE +0.1%) announces at CES PlayStation 4 end-user sales (i.e. sell-through) reached 4.2M as of Dec. 28. That figure suggests the PS4 soundly outsold the Xbox One (MSFT - 3M+ sales in 2013) last year, and has a good chance of surpassing Sony's target of 5M FY14 (ends March '14) sales.
  • Wider distribution - the PS4 is on sale in 53 countries, the One is only available in 13 - has helped Sony's next-gen console outsell Microsoft's. But so has a lower price tag ($399 vs. $499) and the backlash to the used game restriction and Internet access requirements initially planned for the One (before Microsoft backtracked).
  • Sony has also announced the launch of PlayStation Now, its anticipated cloud gaming service. The service, which leverages Gaikai's cloud gaming platform, will provide access to PS2/PS3 titles, and (since it's cloud-based) run on everything from home consoles to TV sets to handheld/mobile devices.
  • Also announced: a Web-based TV service that will include VOD content and a cloud-based DVR. However, Sony is short on details for now. Intel and others have taken stab at offering such a service, only to be thwarted by content owners and incumbent pay-TV providers.
  • PS4 and Xbox One CPU/GPU supplier AMD (AMD +1.6%) is rallying for the second straight day. Game developers are also higher: EA +3.2%. TTWO +3.2%. ATVI +1.6%.
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Comments (27)
  • Tri Duong
    , contributor
    Comments (1502) | Send Message
     
    topped 4.2M units. WOW!
    7 Jan 2014, 01:35 PM Reply Like
  • wigit5
    , contributor
    Comments (4136) | Send Message
     
    selling in 4x as many countries as the xbox one... so lets recap

     

    PS4: 79,245 units per country

     

    X1: 230,769 units per country

     

    Lets just hope the trend doesn't continue!
    7 Jan 2014, 01:41 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3171) | Send Message
     
    I don't care who sales more, as long as someone is moving tons of units - long $AMD :)
    7 Jan 2014, 01:53 PM Reply Like
  • gofx
    , contributor
    Comments (889) | Send Message
     
    Hey, that's as meaningful and "more per day" mantra. Funny, how the "more per" shenanigans don't actually result in "more" sales. ;)
    7 Jan 2014, 02:12 PM Reply Like
  • Julian Acosta
    , contributor
    Comments (129) | Send Message
     
    Those are just numbers.

     

    - 4.2 million with huge shortages compared to Xbox One that sold 3 million and you can pretty much find it anywhere.

     

    - PS4 hasn't launched in one of its biggest markets: Japan.

     

    Either way, there's still a long road ahead.
    7 Jan 2014, 02:24 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1502) | Send Message
     
    "4.2 million with huge shortages compared to Xbox One that sold 3 million and you can pretty much find it anywhere. "

     

    that depends on where you go. Seriously, I enjoy my xbox one more than the ps4 as the launch games are better.

     

    However, I bought 12k AMD shares a month ago. It's been up quite a bit. I made a ton of money in a short period of time and that's all I care about.
    7 Jan 2014, 02:29 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    That is the worst kind of bogus metrics.

     

    Xbox released in only the largest markets thus the average of "units per country" is high.

     

    The idea that the Xbox is selling better in the regions it participates in is entirely possible, but the way you came about your number is meaningless.
    7 Jan 2014, 03:09 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1693) | Send Message
     
    Amazon has Xbox One's in stock. No PS4's. I'd assume that Amazon probably has a pretty large stock of both, so the fact that the PS4's are sold out and not available is pretty telling.
    7 Jan 2014, 03:17 PM Reply Like
  • Kristian Kolding
    , contributor
    Comments (49) | Send Message
     
    The new shipment in Q1 is probably already sold in advance. At least this is the case in Denmark.
    7 Jan 2014, 03:39 PM Reply Like
  • Sean Chandler
    , contributor
    Comments (643) | Send Message
     
    lol
    It's comforting to hear these numbers and I'm glad to see them do so impressive. AMD is like the weapons supplier in this war. Long $AMD
    7 Jan 2014, 05:27 PM Reply Like
  • BornIn87
    , contributor
    Comments (109) | Send Message
     
    Easy call. Sony is a buy right now.
    7 Jan 2014, 01:43 PM Reply Like
  • ATX
    , contributor
    Comments (93) | Send Message
     
    Every console sold is at a loss, every console chip sold is a profit, LONG AMD and GJ on diversification of your business, game console revenues will offset PC decline, sold out MacPro of AMD FirePros and Radeon litecoin mining is just bonus.
    7 Jan 2014, 02:35 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1693) | Send Message
     
    Anyone know why Microsoft isn't selling the xbox in more countries? Seems like a no brainer move. Or is the xbox not as popular outside of the West?
    7 Jan 2014, 03:16 PM Reply Like
  • tawse57
    , contributor
    Comments (774) | Send Message
     
    I suspect that MS does not think it can charge the current price premium for the XB1 in those countries.

     

    I suspect the XB1 will drop in price substantially within 6 to 10 months at which point it will become affordable in markets it is currently not sold in. I expect the price of the XB1 to fall by 50% by Christmas 2014.
    7 Jan 2014, 07:17 PM Reply Like
  • Sean Chandler
    , contributor
    Comments (643) | Send Message
     
    50% seems a little too much. Even though it isn't as popular the demand is still high enough to sell. I think they should have sold kinect separately but then that would lower the xbox's experience.
    7 Jan 2014, 07:24 PM Reply Like
  • hkzk0816
    , contributor
    Comments (8) | Send Message
     
    Mr. Jaynes, I would have to agree with you as well. Don't care where these consoles are being sold as long as inventory is moving. Truly a turn around stock for 2014. Long AMD
    7 Jan 2014, 03:35 PM Reply Like
  • Kristian Kolding
    , contributor
    Comments (49) | Send Message
     
    One must remember that Sony is much more than PS4 and gaming. Gaming is not Sony's largest segment; not by revenue or by profit. With that being said, the PS4 release will undoubtedly have a positive effect on revenue but the question is how much it will contribute to the bottom line. I hope that Sony has plans to utilize its other business areas (such as media) to achieve synergy effects with the PS4 to drive revenue of other segment as well.
    How come Sony does not run PS Store the way Valve runs Steam? I don't get it. I mean, the games are there, but why demand such a high price for them (at least in Denmark)? Margins must be better on digitally distributed contents than on physical disc. Anyone got some insight?
    7 Jan 2014, 03:36 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1502) | Send Message
     
    BOM for PS4 is almost $400. That's not counting operations and marketing costs. It is a negative effect on the bottom line. However, the more consoles they sell, the more games they also sell. Selling 2 games per console will probably more than offset the loss of each console.
    7 Jan 2014, 04:22 PM Reply Like
  • Kristian Kolding
    , contributor
    Comments (49) | Send Message
     
    Not to mention the sale of accessories such as controllers, cameras etc. The margins must be higher on these.
    Is the current stock price a reflection of the commotion about the entertainment segment (movies, music etc.) or am I missing something?
    7 Jan 2014, 04:31 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3171) | Send Message
     
    to add, both companies are doing fine and I'm not a fan of measuring metrics in this manner. The better test would be to compare sell out times at this point, as during this point in question both companies had units largely soldout throughout the balance of Q4.

     

    It will be once both consoles have readily available inventories and steady sales rates can get established before we can accurately get a sense of who the "winner" will be, all in my humble opinion.

     

    Noteworthy is that IHS estimates predicted like 2.2M PS4s to sale, and 2.1M XB1's, so both companies smashed IHS estimates.
    7 Jan 2014, 04:46 PM Reply Like
  • kjurden
    , contributor
    Comments (734) | Send Message
     
    Unreal...had to pinch myself, there. I can't believe AMD is not over $5.00 a share yet!!!
    @Justin Jaynes...have any idea how big of a suprise that will make on the ER?
    7 Jan 2014, 04:48 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3171) | Send Message
     
    @KJ - i'm a little more hesitant of a surprise for this quarter, only because of CS and the emphasis placed on it during Q3, or how a miss in CS could affect any beat in GVS.
    7 Jan 2014, 05:07 PM Reply Like
  • kjurden
    , contributor
    Comments (734) | Send Message
     
    @Justin Jaynes...I think it is going to take some one to write comprehjensive article showing the decline in PC sales over the incresed demand for AMD's products to prove that AMD has retaken some market shares from INTC . And then again we need to point out that AMD is moving away from being dependent on CS by by going after APU's GPU's, microservers, and custom chip design...You can do that Justin!
    7 Jan 2014, 10:36 PM Reply Like
  • Chris Lau
    , contributor
    Comments (2063) | Send Message
     
    Happy my (AMD) long thesis is playing out. Turns out the additional rev from consoles is bigger than anyone expected for AMD.
    7 Jan 2014, 05:14 PM Reply Like
  • tawse57
    , contributor
    Comments (774) | Send Message
     
    Why are people being nerdy fanboys of the PS4 or the Xbox1 for goodness sake - this is a financial forum and not a geek gaming forum!?

     

    You shouldn't be concerned about some nerd war. You should only be concerned about whether you are making money or not.

     

    Who cares whether one console sells more than the other? Are you making money from them selling? If so, good.
    7 Jan 2014, 07:15 PM Reply Like
  • IceWalker2750
    , contributor
    Comments (25) | Send Message
     
    Post AMD articles on your Facebook page! Make AMD flyers for work, put AMD bumper stickers on the back of your car or bike! Talk to your friends and make sure they know who AMD is! I've ran into 12 people who knew who Intel was, but when I asked them who AMD was they had no clue. Advanced Micro Devices. We are the owners and profiteers off this BI*$%. WORD OF MOUTH ADVERTISING and lets make some FING MONEEEEEEEEEYYYYY!
    7 Jan 2014, 09:54 PM Reply Like
  • p4000
    , contributor
    Comments (10) | Send Message
     
    Long AMD, Long Sony.

     

    I am 51% geek, 49% intelligent investor. ;)
    8 Jan 2014, 02:21 AM Reply Like
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