Sony’s PlayStation 3 games console outsold Nintendo’s Wii in Japan for the first time in November, in what may be a turning point for Sony’s struggling games division.
In October Sony introduced a new 40-gigabyte PS3 model for Y40,000 ($361) and cut prices on older models, which ignited sales and could provide the next-generation console with the momentum it needs through the holiday shopping season.
According to data provided by Enterbrain, the trade magazine, the PS3 sold 183,217 units in November in Japan, outstripping the Wii’s 159,193 consoles.
Increasing sales of the PS3 is crucial for Sony, whose lossmaking games division is weighing on overall profit growth.
Sony’s games unit is not expected to swing into profitability until March 2009, according to analysts, with an expected operating profit of Y4.6bn. Analysts say this year’s Christmas season is crucial for Sony’s PS3 in terms of winning the “perception wars”.
In Japan, Nintendo will launch Saturday the Wii Fit, a balance board that can be used with the console to practice yoga or go virtual skiing, among other things. The release of the new application for the Wii is expected to jump-start sales again ahead of the holidays.
“For Sony, the new model and the release of new software titles in November contributed to the sales gain,” said Hiroshi Kamide, an analyst at KBC Securities. “But I think this is only a temporary boost caused by the new model and the Wii will continue to outsell the PS3 this Christmas, as it still has a big software advantage over the PS3.”
Sony also cut the price of its 20GB PS3 model by Y5,000 to Y44,980, and set a retail suggested price for its 60GB model at Y54,980 in October. Previously, the 60GB model had been selling for about Y60,000 at shops around Japan. Sony has already made similar price cuts in Europe.
