Got PS2? Sony reacts to hardware shortfall with unusual plan

No_Style · Dec 10, 2004, 12:15 PM

Sony reportedly addresses PlayStation 2 shortages by air freighting units directly from factories in China. Analysts wonder: To what end?

Sony officials today confirmed to Reuters that the company was using the expensive means of air freight to get as many PlayStation 2 units as possible onto console-starved retailer shelves in the US. The units are being flown directly from manufacturing facilities in China to US shores, according to Reuters.

The unidentified spokesperson said the practice had been going on "for some time."

The industry has been watching the PS2 shortage story play out now for months. In a memo sent to investors this morning, Friedman, Billings, Ramsey & Co. analyst Shawn Milne said, “As expected, PS2 supply remains an issue.” He projects that a shortfall of just 200,000 units would impact publishers of PS2 software to the tune of $11.6 million. That’s more than $11 million in lost revenue.

"We lowered our PS2 hardware unit assumption to 2.75 million in the December quarter from 3.1 million in the year-ago quarter and slightly reduced our PS2 software growth estimate from 10 percent to 8 percent. We believe the PS2 hardware shortfall may limit upside in software sales in the quarter," Milne said in the memo.
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Read More/Source: GameSpot

***craig5320*** · Dec 10, 2004, 12:27 PM

In the long term it should pay off, people who couldn't get the PS2 may decide on an XBOX or Gamecube etc, then sony losers the revenue from the proceeding game sales, so in the long run, it's better business sense.

mike2h · Dec 10, 2004, 06:20 PM

i agree. bet ya the 'competitors' are less than happy. probably thought they were going to be able to get a bunch of extra sales this holiday season.

Dec 10, 2004, 12:15 PM	#1
No_Style Styleless Wonder Join Date: Jun 2002 Location: Ottawa, Ontario Posts: 6,049 Rep Power: 0	Got PS2? Sony reacts to hardware shortfall with unusual plan Sony reportedly addresses PlayStation 2 shortages by air freighting units directly from factories in China. Analysts wonder: To what end? Sony officials today confirmed to Reuters that the company was using the expensive means of air freight to get as many PlayStation 2 units as possible onto console-starved retailer shelves in the US. The units are being flown directly from manufacturing facilities in China to US shores, according to Reuters. The unidentified spokesperson said the practice had been going on "for some time." The industry has been watching the PS2 shortage story play out now for months. In a memo sent to investors this morning, Friedman, Billings, Ramsey & Co. analyst Shawn Milne said, “As expected, PS2 supply remains an issue.” He projects that a shortfall of just 200,000 units would impact publishers of PS2 software to the tune of $11.6 million. That’s more than $11 million in lost revenue. "We lowered our PS2 hardware unit assumption to 2.75 million in the December quarter from 3.1 million in the year-ago quarter and slightly reduced our PS2 software growth estimate from 10 percent to 8 percent. We believe the PS2 hardware shortfall may limit upside in software sales in the quarter," Milne said in the memo. _______________ Read More/Source: GameSpot __________________ "The Best Style Is No Style" Specifications Here

Dec 10, 2004, 12:27 PM	#2
*craig5320* DH Administrator Join Date: May 2002 Location: Manchester, UK Posts: 5,975 Rep Power: 279 System Specs	In the long term it should pay off, people who couldn't get the PS2 may decide on an XBOX or Gamecube etc, then sony losers the revenue from the proceeding game sales, so in the long run, it's better business sense. __________________

Dec 10, 2004, 06:20 PM	#3
mike2h DriverHeaven Extreme Member Join Date: Nov 2002 Location: norcal Posts: 6,489 Rep Power: 74 System Specs	i agree. bet ya the 'competitors' are less than happy. probably thought they were going to be able to get a bunch of extra sales this holiday season. __________________