Posted Jan 30, 2007 at 05:08AM by Victor B. Listed in: News Tags: Sony, nVidia, semiconductor
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NVIDIA may take a beating fro lackluster PS3 sales. - Image 1It seems NVIDIA may be in a spot of trouble as a result of the PlayStation3's slow going in retail. According to a report from the International Business Times, the graphics chip maker may take a hit in their overall share prices as a result of the console's slow demand.

Michael McConnell of semiconductor analyst Pacific Crest had this to say about NVIDIA's connection with Sony's PS3:

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.... 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 from overly high prices at retailers and a lack of compelling game titles.


Due to this, the analyst expects share prices to drop their earnings to US$ 1.67 per share, rather than the US$ 1.77 originally predicted. The price of NVIDIA shares are also expected to drop as a result, from US$ 45 to US$ 33.


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27 Comments


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   by Moogy (Unregistered) - 2007-01-30
 » Yup

I could not of said better myself.

650 CDN is the price of the 60 PS3 in Canada.

This is way to much for the budget. The WII is more in my price range. I would shell out some extra $$ for a PS3 but not double.

When Sony launched the PS2, DVD players were well established. With BluRay the battle with HDDVD is still there and not many moves available.

So in conclusion...

Over prices
Not enough game titles
Not enough BluRay movies

I'm waiting for the first price drop, then I will buy one.

Moogy


   Re: Mathi (Unregistered) - 2007-01-30
 » lol

lol
I will wait for the launch...
*****ing europe...
Can't wait to buy one
   by antaeus - 2007-01-30
 » eh

the PS3 hasn't even been released in Europe or even Australia give it time though I'm pretty sure it will do fine.

   by Mr. Common Sense (Unregistered) - 2007-01-30
 » too bad

Now sony is dragging other companies down with its turd of a console. I feel sorry for the developers who signed contracts for exclusive games with sony for the PS3. They will be on the verge of bankruptcy soon.


   Re: Mr. Common Sence (Unregistered) - 2007-01-30
 » Also.

I do however think my xbox 360 is terrible as after making love to it, the disks come out sticky.

   Re: _-_ (Unregistered) - 2007-01-30
 » Why?

Why are you even here you retard. Go back to wherever else you go for kicks.

   Re: Mr. Common Sense (Unregistered) - 2007-01-30
 » hmmm

While the XBOX 360 is great for viewing porn, I could never violate my precious in such a way.
   by Vietone - 2007-01-30
 » ..

For people to think the PS3 is selling slowly, they need o think again, it took the Xbox alot longer to sell the same amount of consoles.

Right now, the games aren't too great but in March theres going to be alot of games worth buying a PS3 for. Because in the end Microsoft didn't have any games worth buying for the Xbox360 until several months after launch. Only then did the console sales of the Xbox360 get going.

They can criticize the PS3 all they want, but in the end its going to be the PS3 thats sitting on top, again.


   Re: Advertising -


   Re: Darth Manson - 2007-01-30
 » Right now, the games aren't too great but...

Can't wait to play Unreal Torney + Devil May Cry.... on my 360!!! hahahahahahahahahahahahah!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

   Re: Lurker (Unregistered) - 2007-01-30
 » Are you serious

Ok, first i have very little respect for vietone. But now, i have zero. The company the supplies the RSX is going to loss over $10 per share and you still smout all this fanboy BS. Note, this has nothing to do with MS, so why bring it up. If you had half a brain even a $5 per share drop would shock you. This has nothing to do with criticizing the PS3, nothing. If the RSX maker cant make money; and is report a loss. What do you think this says for Sony. And again, why use the debunked argument that SOny sold more than the 360. It has been proven by various sources that this number only reflect shipped, and with every retailer having them sitting on shelves, you do the math bright guy.
   by Mike [RealG187] (Unregistered) - 2007-01-30
 » Too much

they should be cheper and easier to hack!

Whats NV hav to do with the PS3?


   Re: CSFFlame - 2007-01-30
 » NV

They make the graphics chip, 7900GTX variant.
   by Devise (Unregistered) - 2007-01-30
 » ...

Interesting times ahead. Personally I believe the 360 is going to easily outsell the PS3 this year. More games are coming for the 360, more features, and all at a lower price. Even if sony sales start to pick up, MS can play the price cut game and take back the advantage. Sure sony might get a few good games, but nothing that the 360 can't match with it's own catalog.

   by CHUCKINGROCKSATSPACESHIPS - 2007-01-30
 » Cool About Time To Buy NVIDIA Shares...

Then when the PS3 gets hot again I will be rich! Anyone else confident?


   Re: Lurker (Unregistered) - 2007-01-30
 » Huh?

Your kidding right. Buy into a volitile share, with no proof of any up turn, when a company has just reported a loss. Wow, your as bright as vietone. There PC side may sent the share up again, but the PS3 will not, this year anyways. There is way to much market speculation and fear surrounding Sony and anything releated to PS3.

But please invest in Sony, we need people like you to keep our economy growning.

   Re: Devise (Unregistered) - 2007-01-30
 » ...

I think the main concern is sony's 6 million March 31st target of 6 million units. Sony has shipped 2 million units to US and Japan and that has flooded the market already. With the UK launch on the 23rd March, I don't see how it's possible to sony to hit 4 million let alone 6 million. Expect a major drop in shares if that target is missed.

   Re: CHUCKINGROCKSATSPACESHIPS - 2007-01-30
 » Ha Ha Lurker!

Thats the spirit. I need more people like you to think so. The more goodness for me!

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   Re: Mr. Common Sense (Unregistered) - 2007-01-30
 » screw high risk stocks

I think the SHM (sony hype machine) targets investors as well as the consumer. They're trying to keep investors from selling their shares by making unreasonable exaggerations. There's no big games coming out any time soon, and their "target" is 6 million shipped even before the European launch. I don't really expect the PS3 to really take off there either. I think many of them are tired of getting the shaft with a much later unsure release date, much higher pricing than other regions, and still very few decent titles compared to the competition.
Nividia shouldn't have pissed Microsoft off and made them go with an ATI GPU. I wonder what that was about? Nividia's paying for it now.

   Re: Feylin (Unregistered) - 2007-01-30
 » Do not buy Nvidia shares

Buy shares when they're announced to begin going up, and sell when they're starting to go down. It's more guaranteed to become profitable then long term investments where you require knowledge in the product and the workings of the company.

   Re: Kristian (Unregistered) - 2007-01-31
 » You're all fools...

No matter what system wins, Nvidia is still making money. People aren't going to pull stocks from Nvidia just because the ps3 is selling slower... they are still the #1 gpu company...

However I like Ati
   by The_UnBiased_One (Unregistered) - 2007-01-30
 » What is the Equivalent for the RSX..??

i still dont know what is the Nvidia GPU RSX in the PS3 Closer to..

Is it Closer to 7800GTX or 7900GTX...???

I Know from Reading Articles that its Supposed to Have 30 Shader Pipelines,in Which 2 are Canceled for Yeilds,So it Has 28 Pipelines More than the 7800GTX which Has 24 Pipelines

So its 7900 GTX,I think

   by Dj Natas (Unregistered) - 2007-01-30
 » You guys are fools

The system is only three months old, and you guys see this news as something that will bring SONY down, you know what the real prob is, those of you that do not own a PS3 are dissing the it. No one on this site talks about the fact that the PS3 sold as many units as the wii, or that it out sold the 360 in the same time frame when the 360 was released. Companies actually notice things like this, right now most games will be multi platform, but all cars are the same, do you want to drive a go cart the rest of your life that needs modding, or do you want a BMW that's fully loaded. Sony delivered on all counts! Both systems have their advantage, but SONY delivered high def experience.


   Re: kiuy (Unregistered) - 2007-01-30
 » PS3 for the man who drives the BMW and sits and watches films in his smoking jacket

Oh dear you see this is half the problem the PS3 is having at the moment,it sounds like its the machine to buy if you are having a midlife crisis.

The 360 has a big tempting set of big big games coming out ESPECIALLY in MARCH.

   Re: Me (Unregistered) - 2007-01-31
 » ¿?¿?

"No one on this site talks about the fact that the PS3 sold as many units as the wii"

Wii sold three times more than PS3
   by ? (Unregistered) - 2007-01-30
 » yeah right

Man please sony aint delivered no high def experience atleast not yet get out of here with that mess

   by Dj Natas (Unregistered) - 2007-01-30
 » I just know quality when i see it

and yes SONY delivered HD!

   by Dj Idiot (Unregistered) - 2007-01-30
 » ROFL...

Keep shoving your money in Sony's mouth... go ahead. They sure as hell need it this time, they're getting creamed.



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