Giving back some credit : PSP sales

February 9, 2007

With the recent global success of the Nintendo DS, there has been a very positive outlook put on the console from video game websites and community forums. Too many times will you read of the complete sales insanity in Japan or the non stop sell outs accross the globe. But with all of this going on, little light has been shon on the consoles competitor; the Sony Playstation Portable. It too deserves some credit for its success in the market place and hence this article shall highlight its success.

The facts

*NB: I have taken my sales data from Wikipedia

Theres no doubt about it the DS is taking the world by storm both in the hardware and software areas. Sales data from Wikipedia states that the Nintendo DS has sold 35.61 million as of December 31, 2006 and Sony have shipped 22.94 million units as of September 30, 2006. The 2 consoles have been the only real players in the handheld gaming market for the last 2/3 years.

You gotta say it the PSP is quite hawt baby

Now lets assume that over the Christmas break Sony sold the PSP that have been shipped and a few more in the past month or so and the same said for the DS in the past 2 months. So lets estimate the numbers at the current time to be something like DS : 36 million and the PSP : 24 million. Now this actually works out nicely for my market share estimate which I shall get to later.

We also need to take into account the release dates of the 2 consoles. Since there is at least a year difference in region releases for each console, I’ve roughly worked out average release dates for each console.

And to round off my collection of data I’ll throw in the best selling game for each console.

Console : Market Share : Average release date

DS : 60% Feburary 2005
PSP : 40% May 2005

Behind the facts

Now with the facts listed, lets take a closer look. The first obvious point is that the DS was released several months before the PSP therefore the DS got a little bit of a head start. Also when you look at the release dates the DS was released at more important times for the consumer, being just before Christmas in some countries. We all know that a good launch is important to get the ball rolling.

One of the biggest hurdles that the PSP has had to overcome is that before its released the general public perception of handheld videogames is that they are made for young children and teenagers. Now the Playstation audience is somewhere in the 18-30 year old market. Therefore when Sony release a portable console its inevitabal. They have two choices, fight public perception or change the perception. So there’s was no easy option for them.

Its been quality software like MGS PO selling PSPs and not the GPS or goggles

In addition to the stereotypes of portable consoles, Sony also have had to face a similar hurdle. Being that the the public relate handheld gaming to the Gameboy. This is because the Gameboy has never had any real competitors until now. Fortunately with the DS taking the Gameboy’s limelight this hasn’t been too bad.

Now despite these hurdles in which Sony has had to over come they have still managed to take 40% of the market share from Nintendo. This is what too many people seem to overlook. People tend to think that the PSP is failing because it isn’t level with the DS in sales. But this is not the case. 40% of the market for a new competitor is fantastic. This 40% market share certainly is a slap in the face for Nintendo and their whole “invading the market” stratergy. As Sony have come in and invaded some of their own market.

Well thats my spill on the whole situation. I hope that this restores some faith back into the PSP fans out there.