"Nvidia Shares Affected by Weaker Playstation 3 Demand."

[Killa Sin]

http : // www . ibtimes . com /articles/20070129/nvidia-sony-ps3-playstation-nvda.htm

Nvidia Shares Affected by Weaker Playstation 3 Demand

By Daniel Jacobs
Posted 29 January 2007 @ 05:11 pm EST

(International Business Times) - Growing signs of weaker demand for Sony's new Playstation 3 video game system may be impacting some of its design partners, a new report indicates, with graphics system provider Nvidia (NASDAQ: NVDA), feeling Wall-Street heat today.

A series of reports last week pointed to longer than expected shelf-time for Sony's Playstation 3 video-game console, as well growing inventories across the country, raising concern about possible slower demand for the new system.

Santa-Clara Calif.-based Nvidia, which provides the technology behind the system's advanced graphics and special effects, may take a hit as a result of the slowdown.

"Sony royalties garnered by Nvidia from the PS3 build are expected to be the primary driver of Nvidia’s gross-margin expansion in fiscal 2008," Michael McConnell, semiconductor analysts of Pacific Crest said.

"Although poor manufacturing yields on Blu-Ray diodes were the initial cause of PS3 unit constraints at retailers, we have seen evidence of weaker-than-expected consumer demand as availability has improved, likely stemming form overly high prices at retailers and a lack of compelling game titles."

While the report did not speculate on the number of units that would be sold, a component "tear-down" performed by market researcher iSuppli last month showed that Nvidia would receive $129.00 for every Playstation 3 sold.

The analyst lowered his price target for Nvidia to $33 from $45, and predicted earnings of $1.67 a share for the year, instead of $1.77 previously indicated.

Shares of Nvidia closed down $1.29, or 4.10 percent, to $30.18 in Monday trading on the Nasdaq Stock Exchange.

What we can gather from this:

1) NO doubt about it, the PS3 is suffering from poor sales, to the point where the International Business Times had to report on it.
2) This is due to WEAK demand for the console.
3) A direct business partner in the PS3, Nvidia, is HURTING because of this.
4) Goddamn, Nvidia takes $129 per PS3 sold? That's quite a piece of the pie!

[Chris]

That means that now is the time to buy Nvidia stock if you ask me. The PS3 is selling poorly now, but I'm sure that the must-have titles and the inevitable price drop will change that.

[VG Aficionado]

That means that now is the time to buy Nvidia stock if you ask me. The PS3 is selling poorly now, but I'm sure that the must-have titles and the inevitable price drop will change that.Agreed, no matter how bad a sick troll who signs every day under a different user name wants everyone to believe things are.

[Killa Sin]

Agreed, no matter how bad a sick troll who signs every day under a different user name wants everyone to believe things are.How is this trolling though? I posted FACTS from a BUSINESS article. :norris:

[koten]

This is most unfortunate news for Nvidia.

I have nothing against Sony, but if things don't pick up soon, there is going to be some serious problems.

[VG Aficionado]

How is this trolling though? I posted FACTS from a BUSINESS article. :norris:If you didn't ignore your bans all the time, I guess it wouldn't be trolling as long as you posted that in a subjective way, and you aren't anyway. Don't worry though, I'll make sure everyone knows what you're really doing.

[Killa Sin]

This is most unfortunate news for Nvidia.

I have nothing against Sony, but if things don't pick up soon, there is going to be some serious problems.Indeed. Only the completely blind can ignore this.

[Chris]

Indeed. Only the completely blind can ignore this.

I'm a Nintendo fan first and foremost, but to me, these poor sales are irrelevant. Like I said, sales WILL pick up. All this "Sony has already lost this generation" is a bunch of crap.

[VG Aficionado]

Indeed. Only the completely blind can ignore this.And only the completely blind can ignore everything else that's good about PS3. Either that, or the ones who have an interest in making PS3 look as bad as possible beyond the actual facts.

[Killa Sin]

I'm a Nintendo fan first and foremost, but to me, these poor sales are irrelevant. Like I said, sales WILL pick up. All this "Sony has already lost this generation" is a bunch of crap.How long will it take to pick up? And how much time does Sony have? It's not like the competition is slouching around waiting. The PS3 doesn't even have good demos for people to play!

[VG Aficionado]

That's just false and you shouldn't even bother posting that FUD as you're getting owned as we post here.

[Chris]

How long will it take to pick up? And how much time does Sony have? It's not like the competition is slouching around waiting. The PS3 doesn't even have good demos for people to play!

Dude....the damn system has been out for 2 months. Sony has 5 YEARS. I mean Wii has been selling like mad and yet it only has ONE game worth buying as well. So who's to say the same thing won't happen when a title of the same caliber drops for the PS3? You act like this generation is over already, but it's just started. Don't be so stupid.

[Killa Sin]

Dude....the damn system has been out for 2 months. Sony has 5 YEARS. I mean Wii has been selling like mad and yet it only has ONE game worth buying as well. So who's to say the same thing won't happen when a title of the same caliber drops for the PS3? You act like this generation is over already, but it's just started. Don't be so stupid.Why on earth don't you realise that everything you say MIGHT happen for the PS3 has ALREADY HAPPENED for the Wii and 360 and will CONTINUE TO HAPPEN? The PS3 lineup in 2007 is WEAK until you hit late fall, what do you think Wii60 will be doing in the meantime? And do you really think MGS4 (and maybe Killzone) in the fall will hold out against Mario Galaxy and Halo 3? What about all the big multiplatform games like Assassin's Creed and GTA4 that will be available on a cheaper system?

[Fats]

In all fairness, if the PS3's line-up is weak then what is the Wii's and 360's? I could say exactly the same thing.

[Killa Sin]

In all fairness, if the PS3's line-up is weak then what is the Wii's and 360's? I could say exactly the same thing.Yeah you could say the same thing, you'd just be dumb to do it.

[Coded-Dude]

your the dumbass KS.........and I hope your penis falls off

Can you really argue the Wii's line-up is SOLID?
360 is the best(for now), but its still not HUGE by any means

[Fats]

Yeah you could say the same thing, you'd just be dumb to do it.

Well, not only did I not provoke you in any way, but now you're coming across as a complete asshole. Haven't you got anything better to do?

[Phoenix]

Sony is down but not out. As much as I'd love for the industry to reduce to a 2-company competition, it ain't happening. At least not now.

[Shadow Voa]

If I could have what I wanted it would be only two companies in the running...


Nintendo (absorbed Sony into Nintendo. Nintendo strikes the deal of a life time and joins forces with Sony's gaming division and ushers in the Nintendo Entertainment company. Yay! Ultimate console!!)

vs.

Microsoft (absorbed Sega into MS, but nothing happened. SOme more Halo's came out and sold well but in secret Sega is ready to unleash a Sonic game of epic proportions... Ha!)

[Chris]

If I could have what I wanted it would be only two companies in the running...


Nintendo (absorbed Sony into Nintendo. Nintendo strikes the deal of a life time and joins forces with Sony's gaming division and ushers in the Nintendo Entertainment company. Yay! Ultimate console!!)

vs.

Microsoft (absorbed Sega into MS, but nothing happened. SOme more Halo's came out and sold well but in secret Sega is ready to unleash a Sonic game of epic proportions... Ha!)


If I could get Nintendo's first party and Sony's third party games on the same console I'd shit my pants.

And Killa Sin, who's to say that Wii is going to continue to sell at the same pace that it has? Who's to say that all the people who intend to buy the Wii haven't done so already? You're no psychic. To say that PS3 is going to sell much more consoles in the near future seems almost to obvious, but to say that Wii will continue to sell as well as it has is a bit of a leap if you ask me.

It's all about what's "cool" and the Sony name is what's cool by today's standards. And a price drop and better games then make the cool thing affordable, and more practical. For the most part, it's the Sony fanboys(no offense intended with that) that are buying PS3s right now, because they want to be the first to have it, not because of the launch library. When it's cheaper, and there are more quality games, the casual fanbase will start buying it.

Wii is selling so much because it already appeals to that casual market with it's low price point, regardless of it's lackluster library of games right now(aside from TP and some fucking badass VC games that are out).

Besides, Sony doesn't have to beat anybody, like Phoenix said, nobody is going anywhere. Nintendo, MS, and Sony are all here to say.

[gljvd]

Well we have to ask ourselves . What was the last system to come from behind and win the market in the same generation ?


The longer it takes sony to rebound from this the deaper in the hole they will be . Hopefully they get major titles out this year that move systems. Sadly one of their biggest could slip to 2008 and FF may not make it to europe and na till 2008 . So sony could continue to slip till then and the wii and 360 can continue to sell . The wii has alot of hype behind it and the 360 has a slew of great games coming

[Phoenix]

I don't care how it really turns out in the hypothetical situation of a 1-on-1 market, I just want there to be Nintendo + 1 other company. If it's Sony alone, Microsoft alone, some impossible combination of the two, Apple, whatever, I don't care, as long as they don't suck to the point that Nintendo is given freedom to do anything they want and still keep a massive portion of the market.

[Coded-Dude]

Wasn't PS2 behind Dreamcast in sales? Did it not come from behind to win the market?
Or do you mean something else?