PSN Outage Causes 200% Rise in PS3 Trade-Ins

The patience of PlayStation 3 owners is wearing thin as retailers are reporting a 200% increase in PlayStation 3 trade-ins, usually for Xbox 360 consoles, as well as sales slumps for PSN points cards and fewer multiplatform game sales for PS3.

“In the first week of downtime we did not really see any major change in sales or trades,” says one source, a store manager at a major UK retailer speaking on condition of anonymity. “However from the second week onwards we have seen an increase of over 200 per cent on PS3 consoles being traded in, split almost 50/50 between those trading for cash and those taking a 360 instead.”

Another UK source has reported that the independent retailer had seen a “massive increase” in the volume of PS3s traded in in recent weeks, and has pegged the biggest trade-in demographic as “the hardcore online shooter crowd”, who are logically the group most likely to defect when their online gaming is wiped.

Belgian-based Gameswap spokesman Tom Mestdagh went on record to state, “At the end of each month people come to sell their consoles. People that need money (to pay bills). What’s different this time around is that that they are bringing in PS3s together with all their games and they don’t want money, they want an Xbox 360. In every case it is because of Black Ops and or Modern Warfare 2.

“We’re just ten days into the month and already we have an increase of 200 per cent in PS3s coming into the store compared to all of March. Normally we sell them really fast, but not this time. We’ve only sold 30 to 40 per cent of our inventory right now.”

Game purchases have also been markedly affected by the PSN outage. Sales of Call of Duty: Black Ops went from 44% for the PS3 in the first two weeks of the game’s release to 24% of sales of Black Ops last week. Similar trends have struck games like FIFA 12.

Another retailer told Edge:

“A lot of people have been phoning asking us about personal details on PSN as they are struggling to get a response from Sony themselves. Overall, people that have traded with us seem annoyed at how Sony has handled all of this, and say they would not trust them with details again in the future.”

However, it’s all about online gaming. “All we’ve seen is an incredible amount of disgruntled people annoyed that they can’t play online,” stated Mestdagh, and gamers have actually “stopped complaining about the fact that Microsoft charges for Xbox Live. It used to be a big problem for most of our PS3 customers.”

You get what you pay for.

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Sony’s Software Development Beta ProjectsSony’s Software Development Beta Projects

It seems we’ve seen a lot of great concepts from Sony for their PlayStation 3 product line but very little has managed to hit the software virtual shelves. We’ve heard of Sony’s Afrika for the PS3 back at E3 in 2006 and we’re looking at it for 2008’s holiday lineup.

We’ve heard about Sony Home for years as well, but that’s now in some type of beta. It was supposed to be an open beta but that didn’t seem to work out and now it’s closed beta only. Recently they pushed out a firmware update that bricked PlayStation 3 consoles or at least screwed up many of them in varying levels.

Are they just really bad at software development and road map predictions? As a hardware development company they’ve put out some hardcore products, stone cold stable in terms of design and efficiency from the Walk Man to the PS3. Their products are practical in design, for the most part, fairly pretty, stable and function as designed. Yet they come up short on software time and time again.

One of the contributors at 2old2play had some things to say about Sony’s development efforts:

“Having worked at Sony as a Creative Designer two years ago, it doesn’t surprise me that they have still yet to release Home. While there, I was working on their Station Launcher application which was supposed to be released in late 2006. However, the Launcher app is still only in Beta to this day.” (2old2play.com)

In many ways their the anti-Microsoft in their approach and commitments. While Microsoft ships hardware that has what must be a 60% failure rate Sony ships hardware which works fairly well. On the flip side, Microsoft publishes a large quantity of software for all their products and has done very well in the business. Nobody can say it’s 100% perfect but it tends to get better with age or, at least, grow on you.

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PlayStation 3 Online Community Matches 360PlayStation 3 Online Community Matches 360

Although PlayStation 3 is still third in worldwide sales, behind the Xbox 360 by about 5-million units, the PS3 community services now have as many online gamers as Xbox 360 says Sony. Sony posted on their blog saying, “with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.”

Although US sales of the 360 are killing the PS3, the community membership does give gamers a reason to get online with the PS3. Nobody wants to buy into a console that has very few active online games or an easy way to find friends (*cough* Wii). Having 14-million users helps them bridge the sales gap by building gamer confidence. Social networking is the new term; gamers want to socialize with each other online and with their consoles.

Microsoft recently announced their 14-million subscriber base and continue to update folks when they hit big milestones. The main difference, LIVE is a subscription system — those 14-million gamers are also paying for the service (we’re not sure if silver memberships count in that figure) and this means income for Microsoft while Sony does their service for free.

Although Microsoft is making money on their service, no doubt Sony will bypass their total membership because it has no cost barriers to play. The biggest cost barrier to get on Sony’s network is the PS3 itself and many gamers hold out for price drops which aren’t coming anytime soon (so says Sony). However, building a larger community on a free network allows Sony to siphon gamers to buy downloadable content, games, music, movies and all the goodies that go with these services.

It seems a better idea to triple your audience with a free service knowing a large amount of “hardcore gamers” attach themselves to the easy to buy content on said service. So, is it better to make US $50.00 a year on half the population or give triple that population an opportunity to spend more money on content?

“Thanks to all of you, PS3’s momentum is stronger than ever. There are nearly 17 million PS3 systems around the world, and in the United States, PS3 hardware sales are up nearly 100 percent from where we were at this time last year. Software sales have tripled from a year ago. Yes, we’re proud about everything we’ve accomplished, and we’re even more psyched about where we’re going with our holiday software lineup” (playstation.com)

Eventually gamers may have access to Sony’s Home project, which could raise the community figures and give Xbox 360 something less to brag about. Although, we’re sure Sony would rather be boasting “number one” console again, at least they’ve finally got a win on their side because 14-million users is only the beginning for them.

Plus, it’s hard to argue free.

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The news this past week were also big, including:

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  • Valve returns Hatred to Greenlight after removal
  • Humble Bundle has raised over $50 million

This week also sees new Listener Feedback, and the Question of the Week: “Have you used Humble Bundle?”