EA’s numbers conservative; PS3 going strong in 08, analyst say

In a previous report, we released information that Electronic Arts‘ made a hardware sales projection for the year 2008. As a reponse to what the company did, Janco Partners analyst Mike Hickey posted his own projections regarding this matter.

He said that EA’s numbers were a bit conservative and that the PS3 will have a strong performance this year. Details of his analysis in the full article.

With the projected numbers of console sales released recently by Electronic Arts, Janco partners analyst Mikey Hickey looked at the gaming landscape and had his own version of the sales forecast. Hickey added that the Sony‘s PlayStation 3 will have a strong presence in terms of sales for this year.

The table provided above shows the numbers given by Hickey and the numbers of EA’s. In totality, Hickey believes that the company’s projected sales figures were a bit on the conservative side, taking special note of the differences with the number of Wii, PS2, and PSP.

In addition to the numbers given by Hickey, he said that the PS3 will experience a boost in sales this year “due to a recently reduced price point, killer content coming into the channel (GTA), and Blu-ray currently having a decided edge in the high definition format war.”

Finally, with all of the information he was able to gather, Hickey continued by saying:

We believe the slower relative adoption rate of Sony’s PS3 console was a reflection of an unfavorable retail price point ($600), lack of distinguishing content, highly competitive hardware options (Wii), and general value confusion over the console’s imbedded Blu-ray player.

Considering Sony has sold in excess of 120 million PS2 units globally, we anticipate the PS3 adoption rate could accelerate meaningfully in the coming years as the aforementioned issues are addressed and legacy PS2 players’ accelerate their transition to current gen.

Via Game Daily