Sony forecast to sell 3 million Units of Playstation 4 console by the year end.
Sony Corporation released its new Playstation 4 game Console this week. And they have estimated to sell 3 million units of PS4 by year end having an advantage over Microsoft’s Xbox One.
Sony will have adequate supplies of PS4 all Christmas and projected sales for March is 5 Million units, said by Jack Tretton, the president and Chief Executive officer of the Company’s U.S. computer entertainment Division.
“This is a marathon, not a sprint, but getting out to a nice start is a good thing,” Tretton said. “That hurdle has been cleared. We’re very, very confident we’re in great shape.”
Sony faced supply problems which slowed their sales of PS3 in 2006 so now they are highly focused on Supply of PS4, Tretton stated. The New console will be out for sale in US stores on November 15, followed by Europe on November 29 and will reach 32 countries for the holidays. While their rival Microsoft is planning to debut its Xbox One in 13 countries after the launch of PS4. Analyst with Robert W. Baird & Co. In San Francisco had estimated last month that both companies will be able sell their 3 million units around the world.
“We’re very comfortable with it,” Tretton said. “I’m excited about next week to be able to talk about what was sold as opposed to what we may sell.”
Pressure has increased on CEO Kazuo Hirai for the debut of PS4, as the company has reported a loss in the second Quarter. The shares plunged, and Moody’s Investors Service warned the credit rating may be cut to junk. The cost to insure Sony debt jumped 45 basis points to 187 basis points in the month to yesterday, CMA data show.
The decision to keep the supplies of PS4 flowing is very critical as the company needs to utilize the first mover advantage fully. Planning the production yields, collaboration and absence of last minute sprints have been done to make the flow smooth said Tretton. Tretton had confessed that this time its going to be very smooth.
Sony fell 0.5 percent to 1,641 yen yesterday in Tokyo. The shares have climbed 71 percent this year.
On the other hand, Microsoft had delayed its release of Xbox in August in 8 countries including Russia and Netherlands to make sure it has enough supplies for the large markets.
Both the companies have added new online features to the machines, making them more interesting from an entertainment point of view like they have added a feature to access movies and TV shows making the device center of consumers’ living rooms.
Head of Sony’s game Operation, Andrew House had forecasted in September that 5 million PS4 units will be sold till the company’s fiscal year end of March while the spokesman for Microsoft has refused to comment on their forecast sale on Xbox One Sales.