Nintendo raises forecast by 20%, Sony shares drop on PS3 concerns
Nintendo raised its 2006/2007 net profit forecasts today by 20% in light of strong DS sales, weaker-than-expected yen, and Wii anticipation. Securities analyst Yuta Sakurai was "surprised" to see Ninty raise its full year forecast and sales outlook.Financial news was not so good today for Sony, however. The AP reports that the company's stock price dropped 2.75% after concerns of erratic PS3 performance (read: overheating and reset) issues at the Tokyo Games Show. From the article: "About 200 PlayStation 3 units were clustered together in close proximity and housed in kiosks that concentrated the heat generated by their processors and provided poor ventilation ... Overheating under such circumstances is a common affliction at trade shows, afflicting not just Sony products but those of its competitors ... [a Sony spokeswomen continued] 'For a normal player at home, there shouldn't be any problem.'"
But Sony apparently told Business Week that problems were caused by a "one-of-a-kind" temperature irregularity not something as common as suggested above. We can appreciate the aforementioned 200 units being demo systems, but was the problem a trade-show standard, "one-of-a-kind," or something else altogether?
Reader Comments (Page 1 of 3)
Lefty @ Oct 3rd 2006 4:08PM
funny funny
anti-usa ftw @ Oct 3rd 2006 4:12PM
My god the wii-mote is freaking huge.
BklynKid @ Oct 3rd 2006 4:15PM
I still don't know who in their right mind would buy a Wii.
darryl @ Oct 3rd 2006 4:21PM
Joystiq is full of "hot air" as usual.
Fear the PS3's doom, look to the Wii, the white light! Save us from Sony's tyranny! My penis is very small.
Aaron @ Oct 3rd 2006 4:21PM
@BklynKid
I'm going to buy a Wii.
There, you know one person.
Matt Smylie @ Oct 3rd 2006 4:23PM
Nintendo FTW!
TRUTH @ Oct 3rd 2006 4:23PM
@3
I'm buying one! Now you know two people.
aZn_1080p @ Oct 3rd 2006 4:24PM
AGain joystiq looks for any angle to bash sony...The problems at TGS were just shoddy booth design, in fact it wouldnt surprise me if M$ threw around some money to ensure something like this would happen, by 'suggesting' (with cash in hand) that the temperature at the venue be raised a few degrees.
Also, another AAA title, Heavenly Sword, was confirmed as a launch title for PS3 today, why is this not on Joystiq?
http://www.gamesindustry.biz/content_page.php?aid=20123
gamerx @ Oct 3rd 2006 4:26PM
@ #3,
im buying one as well! now you know 3 people bitch!
Moogle @ Oct 3rd 2006 4:26PM
I can't verify that I'm in my right mind, but when I watch 'normal' people, I'm kinda glad to be different.
Wii Get!
Miniboss @ Oct 3rd 2006 4:26PM
I'm going to buy both, just so I can be immune to "fanboy" comments.
Zero @ Oct 3rd 2006 4:26PM
Factoring together low launch quantity, Sony's track record of gaming hardware quality/reliability, the fact that they're selling these things at a pretty good loss and the fact that they're using some experimental technologies and media formats that could outright fail, I believe you can keep an eye out for Sony's stock to plunge in the near future like a sack of bricks tossed out of a 747 that's engulfed in flames and spiraling toward the vast blue ocean some thousands of miles below it.
(The plane being a metaphor for Sony's past dominance in the video game market, and the sack of bricks being a metaphor for a sack of PS3s, which would probably be much like a sack of bricks after all the PS3s overheat and fail.)
killploki @ Oct 3rd 2006 4:27PM
hahaha... like i said earlier, its just a matter of time before a ps3 catches on fire and burns down someones house.
The Intangible Fact @ Oct 3rd 2006 4:27PM
How the hell can u not bash Sony? They suck! They design pos systems.
Newbie Sensation @ Oct 3rd 2006 4:28PM
"I still don't know who in their right mind would buy a Wii."
No one in their right mind. Only blinded fanboys. Hope you can survive this generation on them alone, Nintendo. Third strike, you're gone. Unless you want to follow the steps of Sega and become a third party developer with all your tired franchises. Sony will win either way.
Miniboss @ Oct 3rd 2006 4:29PM
@ aZn_1080p
If you actually read the article that you linked, you'll realize that it's being launched in the "launch window" and that it won't be hitting the US until "next year".
Todd @ Oct 3rd 2006 4:30PM
I'm buying a Wii too, now you know another person.
My computer at home has 8 fans, and this is now commonly standard with most high end machines. Video cards and processors put out huge amounts of heat. These little consoles don't have much room for additional fans. If Sony is having overheating concerns, this really needs to be addressed especially if people are plannon to play games for long periods of time. Perhaps the housing should be enlarged to encompass another fan.
pandlcg @ Oct 3rd 2006 4:30PM
aZn_1080p,
in that article they use the term "launch window" but go on to say that it'll be next year. So it is probably not being reported becasue there is nothing to report. They even say that they have always been in the launch window. So basically they are just confirming what they already said. There everyone, there is the news aZn_1080p couldnt believe wasnt reported.
Newbie Sensation @ Oct 3rd 2006 4:30PM
"hahaha... like i said earlier, its just a matter of time before a ps3 catches on fire and burns down someones house."
Yeah. The PS3 is definitely known for that, especially not being out yet! It's almost as if you're confusing it for some other next-gen console with a high percent failure rate.
rasgueado @ Oct 3rd 2006 4:30PM
Holy crap... I don't know why this "heat" issue is coming as a surprise to people. With the systems pushing the bleeding edge of hardaware heat is ALWAYS an issue. Just like with the 360, keep the PS3 well ventilated and you shouldn't have any problems. Can we all move on now?
StratTastic @ Oct 3rd 2006 4:30PM
No, it's not just joystiq bashing Sony. This news story was on CNN, Foxnews and everywhere else this morning. If you think it's joystiq making Sony have public relation problems throughout their whole company (DRM, battery recall, stock problems, PS3 issues) then you're giving them way too much credit.
gamerx @ Oct 3rd 2006 4:30PM
its gonna be so sweet watching Sony sink, while i enjoy my DS, 360 and Wiiiiiiiii!
C-Dub @ Oct 3rd 2006 4:32PM
I'm going to buy 2 Wiis.
Jarrett @ Oct 3rd 2006 4:33PM
@darryl-
You read that right? The AP is reporting the stock of sony has been downgraded. And the reports are from industry analyst who witnessed the resets and overheating. Why crap on joystiq about this?
As a business model you want your fleet product running flawlessly. Especially in your own backyard. Whether it was the kiosks or the units in close quarters...bottomline is their were problems and Sony even acknowledged this.
With less than two months .... Sony would be wise to get a handle on this. Last thing you want to do is make investors nervous before one of the biggest launches in company history.
And I said this last month....whoever is running the PR over at Sony needs to be replaced. You can't let this stuff get out without having some sort of positive spin on it....
archNemesis @ Oct 3rd 2006 4:34PM
Wii looks sexy
360 looks cool
PS3 looks like it came out of Darth Vader's ass...
C-Dub @ Oct 3rd 2006 4:34PM
"No one in their right mind. Only blinded fanboys. Hope you can survive this generation on them alone, Nintendo. Third strike, you're gone. Unless you want to follow the steps of Sega and become a third party developer with all your tired franchises. Sony will win either way."
Are you INSANE? Nintendo is printing money right now. They're not going anywhere. I don't know why people always say that they're going to leave the console business. They're freaking PROFITABLE.
If you were doing something that made a ton of money... would you say "you know what? you know how I make a TON of money doing this? Let's stop"
Jason @ Oct 3rd 2006 4:35PM
I don't think this article is a result of fanboyism. I do console repair for a store in Burnsville, MN and am FLOODED with broken PS2s. There's a reason why that console is number one in sales. Its because everybody buys at least 2. Heat will be a HUGE issue this generation for everybody except Nintendo, who chose to use existing technology...er less complex. You can't shove a triple core power-pc based processor and shove it into a shoebox. Same with the PS3, you cant take a...7 core? proc and shove it into a pizza box. It just doesn't work (unless you have a bajillion fans). And it won't...
Lefty @ Oct 3rd 2006 4:35PM
azn
i see no info on how 2k sytated bioshock will be exclusive not just timed
http://www.2kgames.com/index.php?p=news&ID=213
"We expect BioShock will set a new mark in next generation gaming when it launches next year," said George Peckham, general manager, global third party publishing for the Interactive Entertainment Business, Microsoft. "We're thrilled that gamers will be able to experience BioShock only as an Xbox 360 and Games for Windows title."
and while we are talking exclusives. heres the new multi player video of gears of war
http://www.metacafe.com/watch/255874/brand_new_gears_of_war_multiplayer_footage_x06/
jc @ Oct 3rd 2006 4:35PM
Did any of you that are posting such biased fanboy crap even read the article? WOW, what is going on in your minds?
From where I stand, it is like watching crack heads nervously waiting outside the dealers, except with hair pulling and poo-flinging. I can't wait for Nintendo and Sony to release their consoles, not so I can buy one... so you kids can get back to gaming and stop hating so much.
Raikage @ Oct 3rd 2006 4:37PM
Ouch... Thats not good. Like the post said, It's not really fair to say that all PS3s will overheat, and that these are still demos (anyone hear about the first xbox's hardrive melting through the case because the fans went out?). Sad to say but I do think Sony makes very poorly built products. (My first PS2 broke 2 weeks after warranty. I'm still leery at them for that...)
On the other hand, Nintendo seems to be doing quite well.
P.S. Sony...Fire Krazy Ken. Nintendo...Don't shut out 3rd party developers (again). Microsoft...Keep doing whatever you are doing...I think it's working.
The Raikage
Evan @ Oct 3rd 2006 4:38PM
Many gamers live in hot climates, and some don't have air conditioning (especially in Europe). If the PS3 overheats in an air conditioned convention center, how's it going to deal with a sweltering heat wave?
gus @ Oct 3rd 2006 4:42PM
wow, guys you are right reporting the change in Sony's stock prices is sooo biased. My god, I just checked the daily business section and it looks like they reported a drop in Sony's shares as well. Oh shit, if they had mentioned Nintendo's business activities, I would claim slander and conspiracy.
You are idiots. Joystiq can feel free to report the business side of games if they want to; in fact, they should. And whether you like it or not, Sony's business strength is taking a hit (though, for a company with that much wealth and power, a little drop in stock prices is not a huge deal, mostly is more bad PR). Joystiq bloggers comments are not based (in this case) so much off of personal opinion. This reflects the opinions of the masses and of Sony's shareholders. If you want to bitch to someone, go bitch to them.
Woody @ Oct 3rd 2006 4:44PM
I'm buying one!
(But in all fairness, its very possible I might have a PS3 too, but right now, no games *pull* me to it).
Right now I'm happy with PS2 (okami, god of war 2, ff12, guitar hero2) and my DS (I have lots of games and more are on the way!)
Matt @ Oct 3rd 2006 4:45PM
Buying a launch PS3 is akin to walking straight into a tornado hoping it wont destroy you...
in short, its a law of nature thats going to happen(especially with Sony).
MosquitoControl @ Oct 3rd 2006 4:47PM
This is amazing. Darryl/azn/ethan/whatever other names he uses is blaming AP reports on Joystiq?
Amazing.
This is not fanboyism. This is not media bias. This is just investors being afraid of Sony's recent missteps. If Sony misses the Holiday Season, or launches a shoddy product in the Holiday Season, it's disaster.
Investors are being a bit overactive, as is their imagination, but some are reducing their holdings "just in case."
The odds of this being a serious problem is slim. But possible.
Much like the odds of the Nintendo Wii being a complete turd is slim. But possible. So why aren't investors bailing on Nintendo? Partially because the DS is strong enough to carry the company, and mostly because Wii will have an amazing holiday season regardless. If the PS3 gets pushed, as tiny a chance as that is, Sony won't have an amazing holiday season.
DBX00 @ Oct 3rd 2006 4:48PM
The reason to not believe the Nintendo hype machine.
1) Same games, new controls - The controls may be innovative and if properly implemented could provide enhanced gaming experience. However, games like Madden on the Wii prove that combine a throwing motion while pressing the receiver button don't really add much to the game itself. Also, the same people that enjoyed the Nintendo first party titles will enjoy them this time around, but changing the controls isn't going to get me to play Mario Galaxy. Sorry, I'm not interested in the game no matter how I'm controlling the plumber. It still doesn't have the third party support to dominate the home console market.
2) Graphics DO matter - People will look at the thing and think it's old school compared to the competition. This machine is going to be side by side with the XBOX360 and PS3 in the stores and the first thing people walking past it will see is the difference in graphics.
3) Price - The $250 pricetag is no longer a impulse purchase for most people and $60 for an additional controller puts it right up there with buying a XBOX 360.
4) Online features? I'm kinda dissappointed with that whole aspect of the console.
5) Second console syndrome - People view the Wii as a second console to the PS3 or XBOX 360. However, does it offer enough to really be a useful second console? Will people invest in two consoles instead of just buying one that does pretty much everything and just get additional games. The cost of entry for the Wii is too high to effectively fit this niche. $250 + $60 + games (need additional controllers since online experience is going to be somewhat limited for awhile)
In conclusion, the Wii might turn out as an innovative product with some great innovative titles. However, lets come back to reality and realize that we really haven't seen nearly as many great LAUNCH titles for the game as you would expect. The system just really hasn't gotten any serious buzz around games that aren't you're typical Zelda, Metroid, and Mario with the exception of Red Steel which hasn't lived up to its expectations in previews. I heard all the same hype when the gamecube was coming out...oh, Mario, Zelda, blah blah blah...The fact of the matter is that Nintendo has been pushing the same characters to push their consoles for the past 3 or 4 generations and they've carved out just as loyal a fanbase as Sony. However, their fanbase isn't nearly as large as their counterpart. If they don't come out with NEW franchises they aren't going to expand that market very much regardless if the controls seem pretty cool.
Maybe I have to experience the Wii for an extended period of time, but I just can't get used to playing FPS with that controller as a pointing device. I can just see getting owned by people using the analog stick while online, assuming we'll be able to do that effectively.
crono141 @ Oct 3rd 2006 4:49PM
"3. I still don't know who in their right mind would buy a Wii."
Are you sure that YOU are in your right mind? Because I still don't know who in their right mind would buy a PS3. And alot of other people in their right mind are thinking the same thing.
clo1_2000 @ Oct 3rd 2006 4:49PM
I'm also buying one, so there's another person you know buying it. I will be surprised if the Wii doesn't sell out its initial stock of 1 million units. Just like the PS3 will sell out its stock for all of this year.
Jed Merrill @ Oct 3rd 2006 4:51PM
Sony has created its own bias.
Poor customer service.
Poor product quality.
Inability to meet promises.
Promises it knows it probably can't keep.
Add in the fact the PS3 might burn your house down (like Sony's power adapters seem to have a habit of doing), and buying a Sony system could be a very big mistake. Again.
reguy @ Oct 3rd 2006 4:52PM
no wonder the ps3's are whisper quiet, they're broken
i keed i keed
Evan @ Oct 3rd 2006 4:52PM
@12 "a sack of bricks tossed out of a 747 that's engulfed in flames and spiraling toward the vast blue ocean"
You should have used an Airbus A380. That plane's 2 years behind schedule and $6 billion over budget! Airbus is seriously hurting right now. There are a lot of similarities between the PS3 and A380 - both are overly ambitious, overly complex, over budget, delayed, and both have the potential to bring down their parent companies.
watership @ Oct 3rd 2006 4:53PM
"The problems at TGS were just shoddy booth design, in fact it wouldnt surprise me if M$ threw around some money to ensure something like this would happen, by 'suggesting' (with cash in hand) that the temperature at the venue be raised a few degrees."
aZn_1080p, you are actually too pathetic for the internet. Seriously.
Jeff @ Oct 3rd 2006 4:56PM
@ 36 DBXO STFU
Deserteaglexix @ Oct 3rd 2006 4:56PM
Thanks Joystiq,
If PS3s are overheating two months from launch, I want to know about it. If anyone is seriously thinking about buying a PS3 they should be aware of potential problems. You are doing a service to readers contemplating dropping $600 on a new machine.
darryl @ Oct 3rd 2006 4:57PM
"Why crap on joystiq about this? "
Why? Diatribe follows:
For example, as was already posted above... a whole bunch of launch titles including Heavenly Sword were confirmed today. Where is that article on this "gaming" blog? Somehow it's missing... Another example, yesterday regarding the PS3M hands-on review of the PS3... all Joystiq wrote about was the fact that it was shiny and showed FINGER PRINTS! Oh, and ragged on it for 17 second loading times, and for not having a bloated UI design! Somehow the fact that it's "quiet as a baby" and has an internal DC brick doesn't make it into their summary. Why? You tell me.
It is so obvious that the staff here actively seek out negative Sony-related material and drop anything that's positive or even neutral. Hate on Sony all you want, that's not the problem, but don't claim to be fair and unbiased when clearly that's not even remotely true. I'd like to see a small Nintendo logo added to the bottom right-hand corner of the Joystiq logo.
At the end of the day though, I love Joystiq. I garner a huge amount of enjoyment from reading the spin and chuckling at the retarded comment flame fests.
It's a love/hate thing.
MetaHuman @ Oct 3rd 2006 4:57PM
I can't wait to hear angry asshats complaining about "n00bs who complain about heating". Just like when 360 came out. Fortunately MS resolved the problems without hassle (or as little annoyance outside of a $300 console that you had to fix right a way) so kudos to them.
Who ever heard of giving a videogame console a cool, dry environment? Maybe for a computer, and maybe for networking closet, but videogames?
I place mine all together on top of my box-framed 27" TV. Actually my hardware space is quite cramped, even my space at my college dorm. I plan on bringing my Wii to the dorm's little theater with the 62" TV. :)
I wonder what will happen to Ken if PS3's launch has the problems that PSX, PSP, and PS2 had, which he had to take responsibility for as well [booted from Sony's BoD].
@ AZN_1080p
If it was shoddy booth design, Sony would still claim responsibility and probably admitted it after the show and considered it for future kiosks.
Steve @ Oct 3rd 2006 4:57PM
Let me get this straight. You can't see yourself playing FPS games with a pointer? You must be joking. Go embrace your dual-analog, the absolute crappiest method of playing any first person title ever devised. I'll enjoy the mouse and wiimote (both pointers) because they are clearly superior. Watch a first-timer play CoD3 for the Wii. After a minute of adjustment, he's doing things with the remote that dual-analog can only dream of.
http://www.youtube.com/watch?v=XW3oNrWv6vQ
As for the PS3, it's an uphill battle to the top. They're going to start off in 3rd, and we all know how hard it is to climb out of that.
Miniboss @ Oct 3rd 2006 5:07PM
@ darryl
"For example, as was already posted above... a whole bunch of launch titles including Heavenly Sword were confirmed today. Where is that article on this "gaming" blog? Somehow it's missing... Another example, yesterday regarding the PS3M hands-on review of the PS3... all Joystiq wrote about was the fact that it was shiny and showed FINGER PRINTS! Oh, and ragged on it for 17 second loading times, and for not having a bloated UI design! Somehow the fact that it's "quiet as a baby" and has an internal DC brick doesn't make it into their summary. Why? You tell me."
As I have already pointed out, Heavenly Sword is coming out NEXT YEAR, if you would actually read the link.
And as for Joystiq's posting of the video, I think the point was to WATCH THE VIDEO. Do you need Joystiq to color comment the whole thing for you? Give you a timecode and every action that happens during the video?
LK @ Oct 3rd 2006 5:09PM
No one mentions how the PS3 is actually bigger than the biggest Xbox. We made so much fun of Xbox being big, and no one returns the favor for PS3. Oh the somewhat good-but-not-that-old-days.
MosquitoControl @ Oct 3rd 2006 5:09PM
DBX00 actually covered that pretty well.
None of that will doom the Wii. But it's all got me nervous.
That said, every game on the 360 has mostly been the same damn game as before, and every game I've seen for the PS3 has mostly been the same damn game as before, so I'm hoping the Wii will bring some change.
But graphics are true. It's very hard to go back to an older system after spending some time on the 360, just for graphics sake, it feels like going back in time. You get used to a standard. It'll hurt the Wii over time.