PlayStation 4 Facing "Sell-Out Situation" in Europe

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PlayStation 4 Facing "Sell-Out Situation" in Europe

PlayStation 4 and controller

Sony says preorders for the PlayStation 4 exceed those of any previous PlayStation console.

European retailers warned earlier this month that PlayStation 4 preorders placed after August 6 couldn't be guaranteed for launch day. U.K.-based Shopto said Sony had put the word out to all European retailers that inventory couldn't be guaranteed, and that late preorders would be reliant on cancellations for launch day fulfillment and would otherwise have to wait.

The reason, according to Sony U.K. Managing Director Fergal Gara, is simply that preorders are way beyond anything Sony has seen before. "The problem with pre-orders, which is a good problem to have, is that they're very, very high. Higher than we've ever seen in 20 years in this business," he told Official PlayStation Magazine. "As an ex-retailer myself I understand this at least as well as anyone else: We need to help retailers manage the expectations of their customers and not let them down."

Thus, Sony's recommendation to retailers that preorders made after August 5 not be guaranteed for launch day. "We are going to be looking at a sell-out situation and chasing demand, it's a problem, it's kind of a good problem to have, but it is a problem and we're trying to manage that as responsibly as we possibly can," Gara said.

Final allocation numbers haven't yet been locked down, so there's still a chance that Sony will be able to fill some, or perhaps even all, preorders made after the cutoff. Cynics might suggest that there's also a chance Sony may be overstating the shortage just a wee little bit to drive the numbers up. Not that I'm a cynical sort myself, of course, but you never know.

Source: Official PlayStation Magazine

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It's probably less Sony trying to fudge the numbers and more like the main competitor console is so shitty that Gamer's are actually wanting the PS4 more than the Xbox One.

I mean, how difficult is it for your PR to make good things about your console when the competitor does it for you?

So is this one of those intentional things where they intentionally release less to the public to drive up demand, or are so many people choosing the PS4 over the xbone that this is a genuine issue?

If so, LOL. Good luck finding one in 2014 a la the Wii's launch.
If not, well this did happen during the WiiU's, 3DS' and Vita's launch, *shrug*

Seriously, Don Mattrick will go down in history as a person that killed new xbox before it was even released :D

As for Sony, good for them. European markets will be dominated by ps4.

More pre-orders than the PS2? They should at least send Microsoft a fruit basket or something for their service.

Hmmm. Got the email from Game about this yesterday, warning me that they might not have enough ps4's in to cover everyone's pre-orders. Since I was there with my order on the day after microsoft announced the 180... I mean Xbone.... I mean xbox one. I feel confident.

james.sponge:
Seriously, Don Mattrick will go down in history as a person that killed new xbox before it was even released :D

As for Sony, good for them. European markets will be dominated by ps4.

Haha, oh Don. I feel bad for Microsoft. Mattrick was preparing for his move to Zynga months in advance, so when the XOne reveal happened he didn't even care what he said, as he already knew he was leaving that month.

Doom972:
More pre-orders than the PS2? They should at least send Microsoft a fruit basket or something for their service.

To be fair the market is significantly larger now than it was back then.

Either way, good for them, I'm not wasting my time pre-ordering something that won't be available and shall instead be building my custom rig tomorrow.

I have to wonder why everyone is pre-ordering these things. It's not like you get anything special for opening your console on launch day, except the fun of purchasing launch titles at full price and worrying about all the bugs that haven't been discovered yet. I'm pretty sure I can still take the name Daaaah Whoosh a few months after launch, so I'm going to wait until all this fuss blows over.

The xbox only launching in 13 countries probably also has something to do with it. There's likely a lot of gamers who were on the fence on which to choose, and considering there's only one to choose from now it just made it easier for them.

Maybe when Microsoft finds their lost brains again, the race might be back on, but for now... it seems a bit rigged in sony's favor.

Well, it's been said before and I'll say it again.

Congrats Sony, you took a massive gamble and it payed off royally. I'm not going to be a day one buyer with me recently draining my bank account for personal expenses, but I'll be sure to try and grab a PS4 around Christmas.

Josh12345:
So is this one of those intentional things where they intentionally release less to the public to drive up demand, or are so many people choosing the PS4 over the xbone that this is a genuine issue?

If so, LOL. Good luck finding one in 2014 a la the Wii's launch.
If not, well this did happen during the WiiU's, 3DS' and Vita's launch, *shrug*

Let's take a look: aside from the UK, Sony consoles have always been favored here in Europe. Like how it overtook the 360 in sales here during 2008 already. I don't think the story of not being able to keep up with the pre-orders is a fabrication. It is likely true that they did not expect THAT high of a demand. And why would they? After the lukewarm start of the PS3 and the even less impressive start of the Vita, Sony must have been a) more careful with their prognosis on sales figures and b) not used to having a strong product launch anymore.

Also, it's the first time that their console is not the most expensive one at launch. Add to that the fact of how bad Microsoft was doing in developing and advertising their system resulting in all the 180s from them lately...
Yea, Sony's problem of supplying the retailers with enough PS4s is probably true. ^^

Seriously, Sony should send a thank you letter to Don Mattrick for this.

Meanwhile at Sony HQ:

"THE COCAINE MUST FLOW!"

The Sony PS4 launch party was already in full swing and would last until release day. It cost the lives of 256 executives in different branches who collapsed from overdose and exhaustion after partying for several weeks on end without break.

Great. Now the eBay scabs who buy up and sell at super inflated prices will be going nuts. Anyone wanna take bets on how outrageous the prices will get by Christmas?

No surprise. The gaming market is bigger now, and pre-order culture has grown to the point that most early adopters tend to get in at launch day.

The issue isn't how well the console sells at launch. The issue is how well Sony maintains the momentum after launch. The Wii U had a huge number of pre-orders and outsold the PS3 and 360 at launch, but Nintendo fucked up the momentum. I hope Sony isn't so high on their own success right now that they end up making the same mistake. But then, game droughts have always been a big part of console launches which everyone seem to forget about, so who knows how things will go.

j-e-f-f-e-r-s:
No surprise. The gaming market is bigger now, and pre-order culture has grown to the point that most early adopters tend to get in at launch day.

The issue isn't how well the console sells at launch. The issue is how well Sony maintains the momentum after launch. The Wii U had a huge number of pre-orders and outsold the PS3 and 360 at launch, but Nintendo fucked up the momentum. I hope Sony isn't so high on their own success right now that they end up making the same mistake. But then, game droughts have always been a big part of console launches which everyone seem to forget about, so who knows how things will go.

To be fair, Sony is saying they should have at least 20 first party games out within the first year, and they have 30 currently in development. Add in the fact that they have better third party support and the momentum should stay pretty strong. Of course the games might be crap, but only time will tell.

Man, am i ever glad that i put my pre-order in on Amazon the day it became possible to do so. Got a nice little email telling it it should arrive November 29th too. I never imagined it was going to be this oversold but looking at the Xbone i really shouldnt have been surprised.

Captcha: Pleased as Punch...Why yes i am :D

Doom972:
More pre-orders than the PS2? They should at least send Microsoft a fruit basket or something for their service.

At the very least, a "thank you" card.

OT:

It's a nice situation to be in, I guess. But Sony has to realise that many of those pre orders will be from Xbox refugees very sensitive to issues like this, and thus more likely to to cancel and go back to their beloved MS. So Sony best get as many out as possible as to not give these people a reason to cancel.

Actually they announced during the GamesCom conference that the preorders surpassed one million, so yeah that is quite a lot.Anyway good for Sony I can honestly say that I at the very least I think they deserve it as they made a lot of good decisions lately.

Griffolion:

Doom972:
More pre-orders than the PS2? They should at least send Microsoft a fruit basket or something for their service.

At the very least, a "thank you" card.

OT:

It's a nice situation to be in, I guess. But Sony has to realise that many of those pre orders will be from Xbox refugees very sensitive to issues like this, and thus more likely to to cancel and go back to their beloved MS. So Sony best get as many out as possible as to not give these people a reason to cancel.

I never understood this. Would you really buy a worse - more expensive - product on a whim (and yes, worse since in this case they would have picked PS4 rather than Xbone) instead of just waiting a week or two? Especially stuff with these kind of price tags. I can't imagine anyone doing that to be honest.

And those same Xbox refugees weren't too sensitive to buy the damn Box more than once due to RROD. How sensitive can they be?

I do get the feeling that this is more marketing than physically not being able to produce the consoles. The APUs are pretty bog standard tech which, by now, will have good yields on a stable process, and the rest is just standard PC components that are made by the bucketload. For example, AMD ships around 70-100m discrete graphics chips a year (PC gaming is a stupidly big market), so ~15m (if the PS4 sells like hotcakes for a console) APU chips in a year is not a major increase in chip production.

Maybe Sony itself doesn't have the production capability though for actually assembling the consoles, which seems a more likely bottleneck.

Josh12345:
So is this one of those intentional things where they intentionally release less to the public to drive up demand, or are so many people choosing the PS4 over the xbone that this is a genuine issue?

No, while perceived scarcity also generates demand (it's a trick Apple have been pulling for a decade after all) I don't think this day one shortage is artificial at all.

Historically there are never quite enough consoles to meet launch demand, the alternative is to spend a year building up production numbers and potentially have nobody buy the hardware. Even if sales are good the over supply would damage the company as you've had to pay out for all that production ahead of sales, every day a console sits unsold you lose money on it, even more so if the price has to be dropped to maintain demand. Nintendo tried this with the Wii U and it's backfired tremendously.

Sony will have ordered a first run of PS4s that it was sure would sell within three months, after the 360, PS3, Wii U and even Wii all having pretty slow launches that number was probably on the conservative side. Now they're frantically upping orders as it looks like the pre-release production will all be sold before release day, which is a nice problem to have. They might be upping the traditional 10-15million hardware units sold in the first year forecast too.

PS, it's also worth noting that all the Playstations so far haven't hit their highest sales figures until the second or third price cut. Sony were probably aiming for the same again, but the combination of being $100 under Microsoft's price (which they planned for) and Microsoft screwing the pooch (which nobody planned for) is driving demand in a way they weren't expecting.

j-e-f-f-e-r-s:
The issue isn't how well the console sells at launch. The issue is how well Sony maintains the momentum after launch. The Wii U had a huge number of pre-orders and outsold the PS3 and 360 at launch, but Nintendo fucked up the momentum.

Niontendo's problem was/is the total lack of big name games either from itself or the third parties, seemingly because they rushed the hardware to avoid being stomped by the PS4/Xbone (and despite a late release being no problem for the Wii).

The new console generation is going to be dropping in with a new Battlefield, new Call of Duty and new Sports games, then have another round of CoD/Sports in 2014 and probably Battlefront 3, Battlefield 5 (or Bad Company 3) in 2015. Plus whatever Naughty Dog/343/Insomniac/Polyphony and so on are working on. Then there's Bethesda, Deep Silver, Epic etc. Even if the first party games fall flat there's enough support from outside to keep the momentum going.

As far as games go the next two years look well planned out for both Sony and Microsoft, which is nice.

Huh. Nice one Sony I guess? I may have to look into one sooner rather than later (I was always going to pick one up because KH3 [DAMN YOU SQUENIX I WAS GOING TO GIVE THIS GEN A MISS] and a few other exclusives I don't want to miss) but I'll prolly just wait until I've seen it in action. Who knows, I might be pleasantly surprised.

While I was never going to buy a console it's nice to see what happens when one company acts pig-headed and another company doesn't.

Sends a nice clear message that you serve your customers, your customers do not serve you.

Vyress:
-snip-

Can't really explain it, brand loyalty can cause fiercely irrational behaviour. Hence, the fanboy. If you're bought into one system and have been for a while, the cognitive harmony of sticking with the brand despite the blatant flaws can outweigh the cognitive dissonance of jumping ship to the relative unknown.

Yeah I already missed the November shipment, but I do have a guarantee I'll get mine in December at least. Anyone who pre-ordered after August here in NL apparently has to wait for 2014 to get one.

As to why I pre-ordered: I am getting one anyway, so might as well be as soon after launch as possible. With the Gaikai and PS+ stuff I'll have a tonne of games at launch anyway.

Josh12345:
So is this one of those intentional things where they intentionally release less to the public to drive up demand, or are so many people choosing the PS4 over the xbone that this is a genuine issue?

considering the fact that according to some sources PS4 is selling up to 10 times more than Xbone, it could be that they are genuinely running out of stock.

Vyress:

I never understood this. Would you really buy a worse - more expensive - product on a whim (and yes, worse since in this case they would have picked PS4 rather than Xbone) instead of just waiting a week or two? Especially stuff with these kind of price tags. I can't imagine anyone doing that to be honest.

Its hard to believe i know but there are plenty of people just going "my kid wants a console for christmas. he said play station or something but all i see is this Xbox. well he has some xbox now so ill get him that"

Vyress:
I never understood this. Would you really buy a worse - more expensive - product on a whim (and yes, worse since in this case they would have picked PS4 rather than Xbone) instead of just waiting a week or two? Especially stuff with these kind of price tags. I can't imagine anyone doing that to be honest.

And those same Xbox refugees weren't too sensitive to buy the damn Box more than once due to RROD. How sensitive can they be?

Parents wanting to buy their kids a console for christmas perhaps? Most don't follow gaming news so how terrible the Xbone announcement and how not terrible the Sony one was will have passed them by, they don't tend to pre-order gaming stuff either. By November those parents will be trundling into Gamestation to pick up a console only to find out "ok the PS4 is cheaper but you will have to wait until 2014" and you can bet the staff will be told to work hard to shift Xbones (maybe Wii Us as well, unless the kids made a big show and dance of "don't get me a Wii U!").

This is Sony's first big mistake and it will cost them a fair number of sales.

Maybe because like in Finland I can use all PS4 functions but only 10% of Xbox one. Because there is no localization for any of Xbo "selling" functions.

pre-order numbers they've never seen before? gee, might that be because the last console pre-order session was 7 years ago and they might have steadily gained new customers over that 7 year period that chose to purchase after the launch of the PS3 and then liked the console so much they chose to pre-order the PS4? Not to mention the general growing interest in gaming causing the net worth of the industry to rise year on year? This is the first stupidity i've heard from sony about the next console generation. of course you were going to sell more units in the first year than you did with your last console!

Just keep your production line going and heck, speed it up! If this is pre-order demand, what do you think Christmas demand will be from parents on behalf of kids, wanting their new babysitting machine?

SinisterGehe:
Maybe because like in Finland I can use all PS4 functions but only 10% of Xbox one. Because there is no localization for any of Xbo "selling" functions.

I love that one, being dutch, I don't have a supposed cable subscription that somehow is better with Xbox One. No I don't get ESPN, CBS, .. all that stuff is utterly worthless here.

Hell on the PS3 we still don't have netflix. Netflix is working on things...

I haven't pre-ordered the PS4 but yes I am drawn to owning on. Because.. most services that are added on the xbox one are indeed USA only, aka worthless to us europeans.

Happy the PS4 is selling well, Sony had a very bad and deserved bad start with their PS3. I mean nice hardware but damn where they cocky. And now Microsoft is all cocky and thinking they can do whatever they want.. guess what nobody likes a jerk.

I hope that even yes in america the PS4 gets at least a 50% share. That will make microsoft work allot harder to get things back in order.

masticina:

SinisterGehe:
Maybe because like in Finland I can use all PS4 functions but only 10% of Xbox one. Because there is no localization for any of Xbo "selling" functions.

I love that one, being dutch, I don't have a supposed cable subscription that somehow is better with Xbox One. No I don't get ESPN, CBS, .. all that stuff is utterly worthless here.

Hell on the PS3 we still don't have netflix. Netflix is working on things...

I haven't pre-ordered the PS4 but yes I am drawn to owning on. Because.. most services that are added on the xbox one are indeed USA only, aka worthless to us europeans.

Happy the PS4 is selling well, Sony had a very bad and deserved bad start with their PS3. I mean nice hardware but damn where they cocky. And now Microsoft is all cocky and thinking they can do whatever they want.. guess what nobody likes a jerk.

I hope that even yes in america the PS4 gets at least a 50% share. That will make microsoft work allot harder to get things back in order.

I just want to know how they are planning to get even with the expenses with so much focus on America. There is a lot, even more gamers in "european economic zone" than in America total.

They are leech money faster than they can make it unless they find way to localize to Europe - which will be hard since almost very country here has their own language and media.

Hell my apartment has no cable, antenna or satellite. If I want a TV I'd have to buy a TV antenna or pay my ISP for landline to Digibox.

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