posted 09-28-2000 01:32 AM                          

Bloomberg

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Sega's Moore on Sony's PlayStation 2 U.S. Forecast: Comment
By Greg Chang

San Francisco, Sept. 27 (Bloomberg) -- Peter Moore, president of Sega Enterprises Ltd.'s U.S. unit, discusses Sony Corp.'s plans to ship fewer units of the PlayStation 2 to the U.S. than expected. Sony plans to ship 500,000 units to go on sale on Oct. 26 and a total of 1.3 million by year-end, from an earlier forecast of 1 million units by Oct. 26 and 2 million by year-end. Sony expects to meet its forecast of 3 million units by March 31.

``Launching a platform is not easy. It's a combination of production schedules, figuring out allocation to key retailers and developing marketing plans. If there are any hiccups in any of these areas, there's a domino effect.''

``One can only suspect that there must be production problems (with the PlayStation 2). One doesn't starve the market to that extent, especially when you want to take advantage of the hype and enthusiasm at launch.''

``This is a huge problem for them in regards to retailer relationships and the effect this will have on not only their business but the business of third parties (game software developers) that have invested a lot in making the games for PlayStation 2.''

``The key is going to be retailer reaction. The retailers are the ones hung out to dry.''

``We are obviously the company in the best position to take advantage of any missteps by Sony.''

``Every retailer known to man has been on the phone with me with concerns about how they can get more inventory to fill the gap created by Sony. The timing of everything is perfect from our position.''

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Anyone else have the feeling Sega's got something up their sleeves?

posted 09-28-2000 01:44 AM                          

quote:

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This is a huge problem for them in regards to retailer relationships and ...The key is going to be retailer reaction. The retailers are the ones hung out to dry.

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What can I say? Great minds think alike.

quote:

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Every retailer known to man has been on the phone with me with concerns about how they can get more inventory to fill the gap created by Sony. The timing of everything is perfect from our position.

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YESS!!!

SEGA STRIKES BACK

posted 09-28-2000 01:57 AM                          

quote:

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``Every retailer known to man has been on the phone with me with concerns about how they can get more inventory to fill the gap created by Sony. The timing of everything is perfect from our position.''

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I pretty much called it in an earlier thread today.

People forget that if a retailer is completely sold out of PS2s(which is very likely since many will only get 4-10 units), they're not simply going to idly wait till next months shipment. They're going to push the systems that are actually available on their shelves.

They're not going to say...

"Come back after Christmas and buy a PS2".

Instead they'll most likely say...

"We're currently sold of of PS2's. Why don't you get a DC/64? They're much less expensive anyway. [insert additional aggressive sales talk]"

I'm sure Sony did not want a shortage this severe. Often times in shortages like this, competitors benefit greatly.

If Sega has any kind of momentum after this Christmas season, things could get ugly.

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The Chosen One - Defender of Common Sense

SegaNet Name: TheChozenOne

NFL 2K1 Record
Overall: 24-9
Against Gaming-Age players: 2-1

posted 09-28-2000 02:19 AM                          

Interesting point. It's ironic though that Peter Moore is talking about how important it is to have a good retailer relationship, when Sega really screwed retailers over in the Saturn days Oh well, that's the unpredictable game industry for ya.

posted 09-28-2000 02:48 AM                          

It looks like Sony may go through some Sophomore growing pains. With shortages this bad, it's going to be tricky for Sony to make sure all the units are distributed so that every retail chain such as ToysRus, KayBee, EB, Software Etc, and Walmart are not pissed off. I have a feeling most online sites will probably be left out in the cold.

Retailers aren't going to sit around and cry if they're sold out of PS2 units. They'll simply try to sell another console.

I might add, Nintendo for the most part has always done a good job of keeping retailers happy. They get a gold star. Though, they seriously need to work on their third party developer relations. Every company has their obstacles.

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The Chosen One - Defender of Common Sense

SegaNet Name: TheChozenOne

posted 09-28-2000 02:51 AM                       

Of course, how third parties react to this is another story...

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I don't appreciate individuals who pass off their opinion as if it were fact.

My opinion is truth.

Futami telling on himself, like all idiots do.

posted 09-28-2000 02:54 AM                       

In either case, this is definitely Sega's chance to cement their place in the US market. They should have an installed base of 3 million DCs after this holiday season at least. Because of the larger user base, games like NFL2K1 and Shenmue have a reasonable chance at outselling many of the bigger PS2 titles as well. Advertising is crucial tho. They need inspired advertising, big time. If they can pull it off, it would be a lot like the Genesis not only holding its own against the SNES in xmas '91, but actually selling on par with the SNES.

posted 09-28-2000 03:05 AM                          

I know, ever since the heyday of the SNES I think Nintendo of America especially has built a good relationship with their retailers. This is one of the reasons I believe that N64 sold 25+ million units even with so many obstacles-- retailer confidence and hence consumer accessability.

You're right about the 3rd party relations. Nintendo's stance has always been this: they don't "court" developers. They develop the system and make it a marketable item on their own, and if 3rd parties want to develop for them then that's fine. If not, that's rosy as well. The only big exception here was Nintendo's deals with EA in getting them onboard the N64. They are pretty arrogant in that regard but that's just good old Nintendo!

posted 09-28-2000 03:15 AM                          

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If they can pull it off, it would be a lot like the Genesis not only holding its own against the SNES in xmas '91, but actually selling on par with the SNES.

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Whoa, that gave me a flashback. That should be evidence enough that the impossible can happen. The Genesis had very little third party support if any before xmas '91. Sega garnered respect in '91 and then took over in '92.

Though, as Shinobi mentioned, Sega has burnt a lot of bridges. They seem to have gotten the retailers back, but many third party developers still see the DC as a dying console.

I bet even if the DC managed 5-6 million userbase by March and the PS2 only amassed 2.5 million units, developers would still probably skip the DC and opt to go the X-box or GC.

The Dreamcast may end up being the most successful "Dead" console.

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The Chosen One - Defender of Common Sense

SegaNet Name: TheChozenOne

posted 09-28-2000 03:22 AM                       

As for Nintendo not courting developers, that might be changing as well. Didn't Miyamoto-san say he'd be demonstrating the NGC to major RPG makers personally? That's something I don't think Nintendo would've done in the past.

posted 09-28-2000 03:42 AM                       

quote:

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Originally posted by The Chosen One:
I bet even if the DC managed 5-6 million userbase by March and the PS2 only amassed 2.5 million units, developers would still probably skip the DC and opt to go the X-box or GC.

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Heh, sad isn't it? After Sega does close to everything right, they'll still be called "idiots" by a bunch of know nothing's. Ah well...if DC goes out, it'll be with a blaze of glory.

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I don't appreciate individuals who pass off their opinion as if it were fact.

My opinion is truth.

Futami telling on himself, like all idiots do.

posted 09-28-2000 05:38 AM                          

Peter Moore has something to say?

I can't believe it!

Mike S.

posted 09-28-2000 05:45 AM                       

He seems to be pretty nice about it though, he could have just said that Sony have fugdged this one up, but he softened it by, mentioning that launching ain't easy.

posted 09-28-2000 05:53 AM                          

BTW, SEGA!!!

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quote:

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"We will block it at your cable company. We will block it at your phone company. We will block it at your [Internet-service provider]. We will firewall it at your PC. We will eat your children." -Sony on Napster

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posted 09-28-2000 06:10 AM                          

Dropping the price of the console to $99 might help pickup a few customers however...

posted 09-28-2000 06:16 AM                          

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Originally posted by captnroger:
Personally, I don't think Sega has a chance of grabbing market share. The absence of PS2s will make demand that much stronger, and parents aren't going to drop their investment in PS games and accessories to go to another console. Period.

Dropping the price of the console to $99 might help pickup a few customers however...

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Yeah keep on living in your dream world, $150, SegaNet, Shenmue, JSR, and CHEAP Sonic, Soul Calubur will have no effect on the game buying public. Sure there...

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quote:

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"We will block it at your cable company. We will block it at your phone company. We will block it at your [Internet-service provider]. We will firewall it at your PC. We will eat your children." -Sony on Napster

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posted 09-28-2000 06:28 AM                       

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Daily Radar's Dan Egger after playing NFL2K1:

posted 09-28-2000 06:39 AM                       

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I don't appreciate individuals who pass off their opinion as if it were fact.

My opinion is truth.

Futami telling on himself, like all idiots do.

posted 09-28-2000 06:42 AM                       

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actually there is NO shortage

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Maybe you're not aware of what a shortage is. A shortage is when demand outstrips supply. Now by saying that there is no shortage you are either not telling the truth or indicating that the PS2 isn't really all that anticipated.

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'Shooting guns just makes you horny'.