Sony's Tretton: We'll Meet 80-90% of PS3 Demand

Sales up by 100%

Jack Tretton
2 Oct 2008

What is it with console manufacturers? How is it that they all seem to be able to estimate demand but, in the lead up to the "The Holidays" they can never seem to estimate making enough machines available to buy?

Could it be bad inventory management? Or might it be that good old marketing idea of "You'd better buy yours now before supplies run out!"

Last year it was Nintendo (with Microsoft in January), this year it's Sony. The chief executive of Sony Computer Entertainment America (SCEA) Jack Tretton, while beaming away about being, "in good shape" to sell 10 million PS3s worldwide this year, told an interviewer, "I'd say we are able to meet somewhere between 80-90 percent demand, based on how things are trending".

Things are, apparently, trending "about 30 percent ahead of where we should be. So sales could slow down and we will still hit our number."
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Maybe Jack could take some advice from Chris Lewis, VP of Microsoft's interactive entertainment business in Europe. Chris recently pointed out that Microsoft is "confident that even at this rate of growth we can keep retail satisfied with a steady supply of consoles throughout the Christmas season".

Or maybe someone in Sony's logistics department should have listened to Sir Howard Stringer (the boss) in when he said, "Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them"... back in August.

Source: Reuters
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Comments

4 comments posted.

First comment

Posted by PreciousRoi
Is any part of this strategy? Increasing percieved desireablity by keeping demand high?

Latest comment

Posted by Tim Smith
steve wrote:
Well....if he is correct about the 30% "above expectations"....then they didnt estimate the extra demand for the PS3 and it would make sense that they would possibly run out of consoles. You make it sound so easy to make market estimations...Have you seen what has been going on with WALLSTREET and MAINSTREET lately????? Get off your high horse man.


Not sure how ultra-greedy deals in short-sold futures have anything to do with listening to Stringer back in April (who, I'm assured has a clue what his company does) regarding the fact that demand was outstripping supply.

The connection between "How many PS3s do we need for Xmas?" and "Let's lend 12 times salary to someone working in Godknows Idaho to buy a house that we've already over-valued while our investment wing invests in Chinese manufacturing thus assuring the closure of any factories in Godknows Idaho" is a weak one at best.

Especially as Sony could have called China and said, "Hi, can you make more PS3s for us starting on September 1st? You can. Grrrreat!"

Tim

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