500,000 Sales Needed For PS3 Profits

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thexfactor

thexfactor

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Namco Bandai Says 500,000 Sales Needed For PS3 Profits Namco Bandai president Takeo Takasu has claimed that any game must sell at least half a million copies on the PlayStation 3 in order for it to make a profit, in an interview with business site Bloomberg.

According to Takasu, increased development costs for the console, particularly relating to graphical assets creation, means that the average game will now cost ¥1 billion ($8.6m) to develop. This is stated as being more than twice the cost of developing a game for the Wii.

Worldwide shortages of the PlayStation 3 will also have an impact on the possibility of developers turning a profit says Takasu, with games for all three next-generation consoles only expected to account for ten percent of software revenues, or 3.15 million units, for the company in its fiscal year ending March 31st, 2007.

Namco Bandai has sold around 26,000 units on the Xbox 360 in Japan, via titles Ridge Racer 6 and Love Football. The company’s two PlayStation 3 launch games, Ridge Racer 7 and Mobile Suit Gundam: Crossfire, have proven to be the best selling titles so far in Japan.

By comparison, the company’s support for the Wii has so far been limited, with PlayStation 2 port Dragon Ball Z: Budokai Tenkaichi 2 and a new Tamagotchi title being the most high profile so far.
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Gamasutra - Namco Bandai Says 500,000 Sales Needed For PS3 Profits
 
I also read that the only way for Sony to make profits is to sell 25-30 copies of each game for every console sold.

Namco also stated that in order to make profits of next gen they must sell beyond 500K copies for each game. Not a difficult task for them though.
 
to sell 25-30 copies of each game for every console sold.
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I don't think you put that right... what was said was that each console owner needed to buy 25 games... which seems a bit high. I knew people he bought ultra cheap pirated PS games and even they had about 30 at most.... and here we are talking about 30 games at $60 each.. 1800 USD is too much.
 
lol PS3 struggling with profits :rofl:.............tey should think of giving two controllers with 600 $ one to up the competition a bit..........though they won't be able to beat M$ and Nintendo..........
 
with..such high prices..and good competition from Wii and x360 it looks as if PS3 is finding it difficult to survive..the NextGen console Wars.

OT

yesterday itself my dad called up. from SAUDI saying that one of his friend wanted to buy a console for his small son..,havin no idea he asked me and without a doubt i said Wiiiiiii all da way.otherwise the shopkeeper was forcing them to buy a PS2 :rofl: :rofl: :rofl: :rofl:
 
Its really funny to see people already stamping Ps3's competition when its only been out for a week or two, and so far, its been sold out all over and had the most violent launch in history.

On topic, quoting my post from another forums :

First off, Tekken 6 is a long time away. At least a year. And Sony would've comfortably shipped over 5mil units by 2007 End.

And by then Tekken 6 will surrounded by Mgs4, DMC4, FF12 and GT HD's hype all over. So no cause for concerns yet, Ps3 will be on a roll once the last couple quarters of 2007 picks up.
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Namco aims to sell over 500K copies of Tekken 6 to turn in profits. There's no way they can't achieve this goal looking at the amount of time the game has still got.
 
KK is right. Smaller devs are the ones who'll suffer the most next-gen. Every unsuccessful game will hit devs harder while successful ones will only result in smaller profits as compared to last-gen.
 
Smaller ones will pick up in time when Ps3 really settles in the market. It'll take time to integrate the Ps3 like the Ps2 is now (almost).
 
^^ Ps2 when launched hardly had any competition, PS2's hardware even when launched was nothing fancy, which translated into lower cost, ie faster recovery.
Same cant be said for PS3, even though ppl are flogging Sony for brining out such an expensive console, its pretty cheap if you see its prowess. The only catch being that it is primarily for playing games only. in any case, Sony will never loose the Japnese mkt where it has a fanatic follwing..

Sony's earnings this quarter are nothing too great too, just earning 1.11 USD per share..
SNE: Basic Chart for SONY CP ADR - Yahoo! Finance
 
heh... SOLD out means a good sign... as for other problems well I am sure fixes are in Pipes. I am still getting one with 60GB as soon as it comes to more realistic price [Read affordable to me] :D

EDIT: As for games I think 10 original ones [Racing ones] will be with me... more if I start enjoying other Games :P
 
Harshal said:
heh... SOLD out means a good sign... as for other problems well I am sure fixes are in Pipes. I am still getting one with 60GB as soon as it comes to more realistic price [Read affordable to me] :D

EDIT: As for games I think 10 original ones [Racing ones] will be with me... more if I start enjoying other Games :P
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Never take things on the face value sirji. Sold is mainly cause a lot of buyers want to earn a profit and most of them will be resold on ebay and other places. Not too rosy since a console which should be brought for gaming is being brought for earning profits. Also the game attach ratio is low for the ps3. Not good at all.
 
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