Microsoft: Sony's PS3 Is "Hemorrhaging"

As we noted last night, in the short term Sony’s (SNE) PS3 is actually improving after a disastrous holiday season when Microsoft’s (MSFT) Xbox 360 outsold the PS3 2-to-1.

But the year-over-year numbers paint a very different picture, one of the Xbox coming from behind to overwhelm Sony’s more-expensive console.

And Microsoft Xbox honcho Aaron Greenberg isn’t one to talk softly. In an interview with Gamasutra, Aaron slaps his 3rd place competitor. Slaps them hard.

But lucky for Aaron the other player in this market, Nintendo (NTDOY), is given to talking softly, and doesn’t typically deploy its executives to talk trash to the gaming blogs. Because for all of Aaron’s commendable success in growing the Xbox, the Wii is still far and away the market leader.

The executive painted a particularly bleak picture of the PlayStation brand at retail, saying retail partners have characterised it as “hemorrhaging,” in part because many existing PlayStation 2 owners are migrating to Xbox 360 rather than PlayStation 3.

“You can’t underestimate that we’re half the price of the PS3 at a time when consumers were looking for great value,” he said. “The PS3 was down in February two per cent even with the launch of Killzone 2 — that’s months of year-over-year declines. Xbox continues to head north while the PS3 is heading south. We’re gaining share.”

“But what we hear from our partners is that it’s not just PS3, it’s also PS2 down 62 per cent year over year,” he continued. “With that business declining, and with the PS3 business declining, it’s been described to me as hemorrhaging at retail right now, and it just keeps getting worse.

“What we’re finding in our research is that a large portion of the volume we’re driving with Xbox 360 purchasers is actually PS2 owners choosing Xbox for the next generation. We’re switching people from the PlayStation brand over to the Xbox brand.”

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