Protracted PlayStation Network outage causes gamers to cash in PS3s, games

By | May 13, 2011, 9:12am PDT

Summary: Sony’s protracted PlayStation Network outage is making gamers trade in their PS3s, and is affecting some games’ resale value. Can Sony fix this mess in time, or is it already too late?

More than three weeks into the outage of Sony’s PlayStation Network, some PlayStation 3 owners have had enough and are beginning to trade in their consoles. The outage appears to be having an effect on the resale value of games, as well.

Edge Magazine reports that gamers in the UK are now trading in their PS3s, with an even split opting for Microsoft Xbox 360s or cash.

As reported by IndustryGamers, the Video Game Price Charts blog indicates that PlayStation 3 game resale prices are dropping, as well.

Sony, for its part, is still waffling on when, exactly, the PlayStation Network will come back online. The latest missive on Sony’s PlayStation Blog, posted May 10th, says “likely a few more days.”

So far, the gamers trading in systems and games are the ones most likely to be affected by the outage, namely players who favor first-person shooters and others feature a strong online multiplayer component.

In other words, exactly the sort of games that are now unplayable because the PlayStation Network is offline.

While some gamers are fleeing the PS3, a new study from industry tracking firm NPD (reported here by Bloomberg) indicates that new PlayStation 3 sales are actually doing quite well. NPD didn’t release actual unit sales numbers, but said that Sony’s PS3 sales were up 13 percent year over year for April, the month the PSN outage started.

It’s worth noting, though, that Sony’s woes only came to the fore fairly late in the month. Whether the company can sustain that growth is a different question, and only time will tell.

In the interim, the vast majority of PS3 and PSP users, along with subscribers to Sony’s online role playing games, which have been similarly afflicted, sit and wait for Sony to restore the service.

And wait.

And wait.

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A long-time veteran of the Apple news business, Peter has also spent more than fifteen years covering games and the game industry. A self-proclaimed Alpha Nerd, Peter also professes a love for anime, sci-fi cons, gadgets of all kinds and various geek subcultures.

Disclosure

Peter Cohen

Peter Cohen does not own any stock or have any investments in any of the companies he writes about.

Biography

Peter Cohen

A resident of Cape Cod, Massachusetts, Peter has spent more than fifteen years writing about games and the game industry. For a decade Peter was senior editor for Macworld magazine, writing online news and covering the Apple game beat in Macworld's Game Room column.

Peter is currently executive editor for The Loop, an Apple news and analysis site founded by former Macworld editors. He's cohost of Angry Mac Bastards, a weekly podcast that viciously eviscerates some of what passes for Apple-related news and analysis in the tech blogosphere.

Peter is also a freelance technology journalist and reviewer whose words can be found in Macworld, Mac|Life, MacUser, MacFormat and Tap! Magazine.

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RE: Protracted PlayStation Network outage causes gamers to cash in PS3s, games
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
PS3 game prices are falling? Sweet, I'll take this as a chance to pick some things up.
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Message has been deleted.
HotVWGTi Updated - 13th May 2011
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Pot meet kettle.
Pete "athynz" Athens 13th May 2011
@HotVWGTi Hey retard before you blast the guy you may want to check yourself. The outage did not affect hardware sales prior to the announcement however there's this little bit int he article that makes sense: It?s worth noting, though, that Sony?s woes only came to the fore fairly late in the month. Whether the company can sustain that growth is a different question, and only time will tell.

The more Sony delays getting the network back up the worse this will get for them and the lower prices on used AND NEW systems will go.
@HotVWGTi
I didn't read anything saying that aerowind was going to pick up NEW games. If resale value is falling, that means used game prices will fall too, meaning this is definately a good time to pick used games up.
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To quote Mr. Findlay:
cym104 13th May 2011
"Hell, it's 'bout time."
What kind of idiot would go out and sell their PS3 and games for a fraction of what they paid, only to turn around and pay hundreds of dollars for a new system?

People certainly are stupid.
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and impatient
oliakaoil 13th May 2011
Exactly, people selling their PS3's because of this outage are the same ones who are going to be rebuying the system the next time a 'must-have' game comes out. Any self-respecting gamer already owns a 360 and a PS3 anways. As per usual, Sony's slow burn will only get brighter and brighter as time goes by, and with the great titles set for the fall, who cares if we have a few days of downtime?
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The outage is concerning
Richard Flude 13th May 2011
I wouldn't dismiss this outage so quickly. Sony had made huge gains recently overtaking the XBox 360 but if this outage continues, or they experience another quickly, it would have to affect their sales.

The lesson that should be taken away for all companies with an Internet presence is to only ask for and keep information essential to your site. Sony asked for too much and when they couldn't keep it safe will be in plenty of trouble.
@Richard Flude,
"Sony had made huge gains recently overtaking the XBox 360 but if this outage continues, or they experience another quickly, it would have to affect their sales."

Based on VGChartz, X360 still ahead of the PS3 worldwide, although like you mentioned, Sony were doing very good worldwide.
http://www.vgchartz.com/
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@oliakaoil

And i don't own a PS3 yet! lol, in all seriousness, I just didn't have the available income to get one until recently and I wasn't going to drop $600 for it brand new when it came out. But I do plan on getting one soon, too many exclusives I NEED to play
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Hmmmm.
Bates_ 13th May 2011
@oliakaoil I'm a self respecting gamer, and I own neither a 360 or a PS3. PC gamer here and will be for life.
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Agreed
oncall 13th May 2011
@Richard Flude

I got the lovely email from Sony and I was thinking dude it's been over 4 years since I logged onto Sony's web site for ANYTHING. I had forgotten I even had an account with Sony. Kind of makes ya think though, you log onto a web site and hand over a bunch of personal info and CC# to buy something silly and they are keeping that info, potentially exposed, FOREVER. Maybe this will turn into a good wake-up call. OK I can dream can't i?
@oliakaoil Agreed sir. REAL gamers already own both consoles anyways. Doesnt affect me as the xbox still works online atm just fine. AND Im playing through KZ3 again so Im good. Would be nice to sync all those single player trophies Ive gotten in the last 3 weeks though...
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Richard Flude, Now that's odd
Will Pharaoh 13th May 2011
@oliakaoil
Everything I read says that XBox360 is still ahead of PS3, and that it's not overtaking Microsoft's XBox.

Is that what your post was really about, trying to take yet another jab at Microsoft?

Because the last paragraph I actually agree with you on, but your first paragraph wasn't needed, (and was wrong), so it kind of took it down a notch or two.
@Will Pharaoh
Maybe you?ll believe the industry then. According to everything I have read, the PS 3 passed the xbox 360 at the end of last year. The only number that truly counts is the installed base, not how many units ship.

According to research firm Strategy Analytics, the PlayStation 3 has now surpassed the 43.4 million marker worldwide, putting it ahead of the Xbox 360 (42.9 million) for the first time.

http://www.gamespy.com/articles/115/1159284p1.html

I would trust people who know what they are talking about, beefier I would believe unsubstantiated claims.
@dvm
That chart counts units sold to the retail channel. Which is unreliable, so I would dismiss it. The only number that counts is the active installed base, which the PS 3 has 500,000 more units than the xbox 360.
@Rick_K,
"That chart counts units sold to the retail channel. Which is unreliable, so I would dismiss it. The only number that counts is the active installed base, which the PS 3 has 500,000 more units than the xbox 360."
How reliable is the company doing the study? Can you post links from studies with similar results? I went to Strategic Analitycs site, and found some information from the study,
"According to our newly revised model, the global active installed base of PS3s reached 43.4M at the end of 2010."
How the "newly revised model" works and how reliable it is? I supposed you have that information since you dismissed the unreliable sold to retail numbers, so maybe you can explain it.
From the numbers I have seen, the race is close. But what happened to PSN could have negative results for Sony, even though they were doing very good worldwide recently .
@Droid101
Many of the sheep on here would do just that. Maybe there is a little truth to the theory that another console maker is behind this???
@Rick_K,
Was the other console maker behind the lack of security of PSN, like not applying security updates to the Apache servers and running without firewall?

http://www.linuxtoday.com/news/2011050600139NWHWSW
@Rick_K_ Its SEGA! They are trying to sabotage the industry so that they can release the GENESIS2!
@Rick_K Only "sheeple" would believe that dribble. In fact, it would take a tin foil hat wearing, conspiracy theory believing, absolute lemming of a sheeple to even suggest it! Just saying.
  • Flagged
@dvm
Think about it, who stands to gain something from a PSN failure? What is to say that Geohot is somewhere behind the scene? Any theory is just that a theory, as in unproven. But still I wonder, as it happened not long after the PS 3 installed base passed the xbox 360.
  • Flagged
@Rick_K
yep, nintendo, microsoft and sega. btw just sold my ps3 (which i originally chose coz of bluray), hello xbox
@Rick_K,
"Think about it, who stands to gain something from a PSN failure?...But still I wonder, as it happened not long after the PS 3 installed base passed the xbox 360."
Apple passed Microsoft in stock value, sales, market cap and many other important things. Based on your comment, MS will try to sabotage Apple servers and services, like Mobile Me and iTunes so they could get back on top. Or maybe MS would try to sabotage Google too, because their search engine is more used than Bing, right?.
But it could be the other way. MS is ahead of Google and Apple in business and the enterprise. Based on your comments, it's possible that MS problems with their online services were because Apple and Google were hacking their servers, right?
Maybe MS was involved in the PSN incident, but right now there is no evidence of it. And maybe they don't have anything to do with it. What it's clear is that Sony was negligent with PSN security and everything went down. Why we have to talk about possible competitors of Sony doing damage to them, and blame the competition for the problems, when Sony were not doing the most basics steps for a secure environment, like applying updates and using firewalls?
@dvm
And Microsoft is ramping up the F.U.D. engines at both companies. Between the so-called ?Google Tax? and the ?Over-Pticed Macs? campaigns. Logically they couldn?t not do the same against the PS 3. Considering the xbox 360 is still not stable enough to compete on a level playing field, why not encourage a few hackers to ?anonymously" breach the PSN? Sony did not help themselves by not keeping the patches up to date, but i think there was something else involved.
@Rick_K,
"And Microsoft is ramping up the F.U.D. engines at both companies. Between the so-called Google Tax and the Over-Pticed Macs campaigns."
What about Apple ads, were they mentioned that Mac OS X is virus free, while at the same time there was a trojan spreading via a pirated version of iWorks?
http://www.geek.com/articles/apple/latest-apple-ads-portray-pc-as-virus-ridden-compromise-20090826/
What is more interesting is that Mac OS X includes a malware scanner, plus Apple added additional information on the Mac OS X security webiste,
"However, since no system can be 100 percent immune from every threat, antivirus software may offer additional protection.
http://www.apple.com/macosx/security/"
Why they didn't specified that on their ads?

And what about Google Apps goverment certification? They published and announce that GApps was FIMSA certified while they were not.
http://www.businesswire.com/news/home/20110426007182/en/Sworn-Statement-Proves-Google-Apps-Government-Certified
So it looks like MS is not alone doind FUD, right?

"Logically they couldnt not do the same against the PS 3."
If they did FUD against bigger companies than Sony, like Apple and Google, why don't do the same with the PS3?

"Considering the xbox 360 is still not stable enough to compete on a level playing field, why not encourage a few hackers to anonymously" breach the PSN?"
The same could apply with MS when there are hack attempts to their services and servers. Do you thinks that Apple and Google are behind those attacks? Like you said, "they could "encourage a few hackers to anonymously" breach the MS services", right?

"Sony did not help themselves by not keeping the patches up to date, but i think there was something else involved."
Like you posted before, "Any theory is just that a theory, as in unproven."
@Droid101
cannot agree with you more, it just shows the lack of intelligence of so many, it is good let them go over to xbl, we def do not need them trashing our online community...
No one has patience anymore, it is sad, for a free service we have been given 4 such a long time, what the hell is a month w/o it?... seriously..
@tommyp_23_2001@... Trashing our online community? Lack of intelligence? What like talking trash about people you dont know, previously loyal customers, who are dissatisfied with Sony's performance of late? Sounds like a reasonable position to me, as a fellow PS3 owner. Who are you to bash total strangers anyways? I own both consoles and love them to death, and wont be trading either of them. But your sweeping insults of perfect strangers shows a lot of insecurity on your part. Almost as if your ego had been damaged by this event somehow! How about you worry about yourself big guy and if angry PS'ers want to trade in their wares so be it. No business of yours or mine, and more bandwidth for us anyways. All this fanboy crap makes our entire hobby look bad.
@tommyp_23_2001@...

An outage of a few hours would be accepted as 'normal' for an online service, even an outage for a couple of days wouldn't be a big concern.


However an extended outage that lasts as long as a month, and which WORSE is the result of a malicious hack, shoddy security practices, a lack of basic oversight and negligence AND which resulted in account information and possibly credit card numbers being stolen, is very troubling indeed.

I don't think that a complete lack of faith in Sony and a decision to abandon the platform would be unwarrated at this point.
@Droid101_The kind that have jobs and a life, and money to boot. And dont want to worry about cyber-drama. Sounds nice actually....
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"what kind of idiot"...
SonofaSailor 13th May 2011
@Droid101

Hint: They buy iPhones and other Crapple products
@SonofaSailor Dude you really need to lay off the Apple flavored Hateraide... it's seriously affecting your posts.
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Egzackery
His_Shadow 15th May 2011
@Droid101 My PS3 is a critical part of my home theatre, as the PS3 is one of the best BluRay players on the market. I would no more sell it because of this outage than I would sell my kid to gypsies when she has a bad night.

Were the Black Ops numbers waaaaaay down this evening when I finally got to play online again? Yes. But who knows, maybe some people who desperately need to get outside got some fresh air this week. My AmEx is 100% covered against fraud, I routinely used my PS3 for movies and torrented files these last three weeks, and Fallout: New Vegas doesn't need to be online to be payed extensively.

I've survived this outage. I'm pretty sure Sony and the PS3 will survive it as well.
Wow, all I know is Sony better get their act together real soon or they will be left out in the cold. The new Wii 2 is coming out soon and it looks like it could really hurt the PS3 like this..

http://www.tech-adventures.com/2011/04/nintendo-says-wii-2-is-in-works.html
@poyntek

While I am psyched for the new Nintendo, they have to do A LOT before they stand a chance of carving any of Sony's userbase away. Yes the Wii sold amazingly, but ******** gamers didn't just get a wii, they got a PS3 and or an XB360. Nintendo needs to remove friend codes, implement a universal friends list, have better internet game presence, including in game partying and messaging, and rally for third-parties to actually use the full potential of their system. I see first-party games from Nintendo then look at third-party ones and the graphics difference is ludicris.
@KBot

The people who buy PS3 and X Box 360 are generally not the same people who buy Nintendos. They aren't competing for the same market.

PS3 and X Box users are ******** gamers, Nintendo users are family oriented and casual gamers.

Not the same people. Nintendo isn't competiting with Sony or MS, they are competiting with the iPhone, Blakcberries and whatnot.
@Doctor Demento

Huh? Why is the word h-a-r-d-c-o-r-e censored?
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time for a new catchphrase?
waiting4rim2catchup 13th May 2011
Is Sony's Marketing Dept still allowed to use the line:
PS3: It Does Everything
@waiting4rim2catchup
It does tdo everything, including letting people hack it happy
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LMFAO
xSteven777x 14th May 2011
@KBot Lmfao hahahahaha. That was some good ****.
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I don't use the PSN
Stan57 13th May 2011
I don't use the PSN, its not required to play games or at least the ones i own. And anyone who would waste 45 bucks to join that network needs there heads examined.
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wait.. what?
Lone Goat 13th May 2011
@Stan57
i thought the PSN was free?!?!?
@Lone Goat That's correct - PSN is free; the fee comes from the PlayStation Plus service, or from any content you choose to purchase form the PlayStation Store.

- Peter
I read the article in DSLReports.com and here's my comment:

I'd just play games offline, whether I have a PS3 or an XBOX 360. I am not crazy for playing games online and just not care for XBox Live or PlayStation Network. Sure, there are content waiting for me to be discovered, but nah... To me, a gaming console is a gaming console and nothing else. :)

Pardon me for being closed-minded, though. My only interest in gaming consoles is to play offline games, just like I play games in PS2, PSOne, Nintendo 64, GameCube, Super Nintendo, and Nintendo Entertainment System. I've been a console gamer since the late 1980s (I've been a har-dc-ore gamer since I started playing Chrono Trigger and Lufia II when it come out and I used to play games that run in emulators while discovering JRPG games that were made for NES/SNES). I do play Final Fantasy X and XII in PS2, plus Eternal Ring but I lost the disc about a couple of years ago and Parasite Eve in PSOne, but I lost interest in it. :)

Well, let's just say that I played about 30 of JRPG games. That does not include Final Fantasy XI! happy

Hey! Why does ZDNet censor "har-dc-ore" (without dashes) compared to DSLReports.com? Heh, I guess I can call myself a "serious console gamer." And why is ZDNet turning a ":)" into HTML code when I edit my message? Because when I submit my edited message, all I'll be seeing is an image tag in HTML.
@Grayson Peddie
I am pretty much the same type of gamer, love anything out of Japan, any game that i can play in Japanese, i take over english dubbing...lol... like Eternal sonata...
@tommyp_23_2001@... I've been considering whether to buy a PS3 (160GB) or XBOX 360 (250GB) for Christmas, but I might lean toward XBOX 360 probably because it has more JRPG games, but maybe things will change in the future.

Here's my wish list that have been automaically added from the website that I couldn't remember where I got it from (I think it's top 10 or 8 JRPG games for XBOX 360 but mine has 8):
http://www.amazon.com/gp/registry/registry.html?ie=UTF8&type=wishlist&id=2W1VUH84GQ5S4

My concern that I've read is that JRPG games might be fading away, as mentioned in the thread:
http://forum.teamxbox.com/showthread.php?t=567791

I wanted to play Final Fantasy XIII in XBOX 360 even though I read that it's better to play Final Fantasy XIII in PS3 because of disc space, but then I'm not going to spend $600 just to have both XBOX 360 or PS3. That's a major purchase for me with a fixed income, so I don't know which game console to get:
http://www.youtube.com/watch?v=jB3zimLyvJg&lc=wLH6aoB1LDcVYqwLGE2cNeqCWqN6qBP65SkXRIBvoOY&feature=inbox
(SPIOLER ALERT: Don't watch the video unless you have FFXIII; I did that just once while I'm a big fan of HCBailly, since I used to watch his videos of Dragon Warrior III for NES. However, I do have Dragon Quest III for SNES with an English translation patch and the music sounded a lot better in SNES even though I'm used to NES but not the graphics. I'm a big fan of YouTube and "let's play" videos.)
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Legions Overdrive!
webmaster@... 13th May 2011
Anyone who has a decent PC and needs a gaming fix should check out Legions Overdrive happy
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Sony 4 life
tommyp_23_2001@... 13th May 2011
Regarding this outage, yes it is a bit frustrating, but i will wait, no way an i getting a crappy machine like a 360..haha.. i stand by Sony and by Japan, it is a quality console.. for all the haters or tards that are switching, thank god, the less morons on the psn the better...
Believe me they are working to make it 100 secure so this will never happen again, of course they made errors, but now they will learn from them... for a free service u have been receiving over such a long time, what is a month, stop your complaining you noobs!
@tommyp_23_2001@... Firstly child, both are great and quite comparable consoles. They are same gen, have many of the same games, and perform very similarly. Your calling the xbox "crappy" denotes a childish "fanboy" position, that essentially moots any positive contribution you could have contributed to this discussion outright. Secondly, to call the people switching "haters, morons and tards", total strangers mind you, shows you are so entirely biased in your views, you are willing to insult even perfect strangers to embellish your non-sensical and pathetically childish fanboy rants. Lastly, your last sentence includes the words "stop your complaining noobs". I have been on PSN since PS2, and on XBL since 2006. I have been gaming since command lines and monochrome, and remember the Sega and Nintendo fanboys of the 80s. And I will tell you the same thing I told them then, "REAL GAMERS ALREADY OWN EVERY SYSTEM. LITTLE B*TCH FANBOYS LIKE YOU RUIN THE HOBBY FOR EVERYONE, AND MAKE US ALL LOOK BAD". So slow down with the insults and bias, and either contribute positively to the discussion, or kindly STFU fanboy.
So some not so smart people are selling a functioning blu-ray player and internet device because of the outage?

I bet these are mostly the teenagers that are doing this.
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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