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Sony's $599 package could soon be the only option for gamers  (Source: SCEA)
80GB PS3 could soon occupy the $499 price point

When Sony announced in July a $100 price cut on the 60GB PlayStation 3, it also unveiled a new 80GB PS3 packaged with MotorStorm. What SCEA didn’t reveal, but SCEE boss David Reeves did, is that production had already ceased on the North American 60GB consoles.

SCEA communications officer Dave Karraker eventually confirmed, “The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted. We have ample inventory to meet the immediate needs of consumers in this territory for several months to come.”

During late August, Karraker said, “We no longer have any inventory in SCEA warehouses. All inventory has been purchased and shipped to retailers ... We don't have visibility as to if that is on their store shelves or in their warehouses at this time. However, based on inventory reports from our retailers, there is ample supply still left in the channel.”

According to comments Bloomberg received from Sony spokeswoman Kimberly Otzman, supplies of the 60GB model probably will last through October. What the representative could not comment on, however, is what would happen to the overall pricing of the PlayStation 3 once the $499 60GB console is no longer available to consumers.

Price has always been a sensitive issue for Sony’s latest console. Should there be no movement on price, the effective cost to consumers for the PlayStation 3 will be the $599 charged for the 80GB model – perhaps leading some to perceive the situation as a $100 price hike to own the console.

Sony likely already has plans for what it will do once the 60GB model is gone, but the company isn’t saying anything just yet. Wedbush Morgan Securities analyst Edward Woo, among others, firmly believes that Sony will cut the price of the 80GB PS3. “That's what everybody's expecting,” Woo said in a Bloomberg interview. “That would be a surprise if they don't.”



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Sony should do...
By ivanv4 on 9/4/2007 6:15:06 AM , Rating: 3
Sony should take the 80GB down to 400, maybe that way they would take more market share.




RE: Sony should do...
By mdogs444 on 9/4/2007 6:52:32 AM , Rating: 1
While I agree that is what they should do to gain marketshare in not only the console market, but to help increase their BD sales. But decreasing the price of the console alone will not increase BD sales when the cheapest BD standlone is around $500.

Although lowering prices always sound good to the consumer, it's probably not a feasible choice right now in terms of their cost of production.


RE: Sony should do...
By AnnihilatorX on 9/4/2007 7:01:24 AM , Rating: 3
Sacrificing profit for long term gain R usually a good strategy if you can afford it


RE: Sony should do...
By 16nm on 9/4/07, Rating: 0
RE: Sony should do...
By Murst on 9/4/2007 11:14:21 AM , Rating: 2
Sony will announce this new model later this year right after MS releases Halo 3 on the PS3.


RE: Sony should do...
By daftrok on 9/4/2007 2:05:12 PM , Rating: 2
I think he was joking


RE: Sony should do...
By roadhog74 on 9/4/07, Rating: 0
RE: Sony should do...
By Legionosh on 9/4/07, Rating: 0
RE: Sony should do...
By Murst on 9/4/2007 11:17:16 AM , Rating: 2
What are you talking about? If Sony wanted to pay people to take their consoles from the warehouse, they could do so.


RE: Sony should do...
By vortmax on 9/4/2007 12:07:16 PM , Rating: 2
I'm guessing that would be considered anti-competitive behavior maybe?


RE: Sony should do...
By Murst on 9/4/2007 12:33:17 PM , Rating: 2
No, it would not be. The context of anti-dumping rules (I wouldn't call them laws, I doubt the US even has laws against it) would not apply. The purpose of the rules is to protect a national industry from foreign companies who try to get rid of their inventory, thus harming the industry. One of the requirements is that the company sells the product internatiaonally than what they sell it for domestically.

Basically, what it boils down to, is that the USA would never press dumping charges against Sony in this case because there is nothing to gain. American jobs and the video game industry is not going to be hurt if Sony ends up winning the console war (American developers can definetally develop for the PS3 just like they can for the xbox, and its not like a cut in xbox manufacturing would have any significant effect on US jobs).


RE: Sony should do...
By Murst on 9/4/2007 12:36:16 PM , Rating: 2
Err.. the above should say that the company must sell the product for less internationally than they do domestically.


RE: Sony should do...
By grant2 on 9/4/2007 5:07:32 PM , Rating: 2
kevin please do entertain us with your opinion on the "legal" minimum price for a console. (And how you determined this figure.)

We'd also like to know exactly what "SEVERE legal ramifications" are: which laws would be invoked, by whom, and resulting in which penalties?

thanks!


RE: Sony should do...
By artemicion on 9/4/2007 6:47:06 PM , Rating: 2
what makes you think that your google/wikipedia-based economic strategies are somehow beyond the comprehension of the high-level execs at Sony who most likely graduated from Wharton or some equivalent?

why is it that internet goons somehow think that they are so freakin' enlightened?


RE: Sony should do...
By vitul on 9/6/2007 12:15:30 AM , Rating: 2
I agree. I think they need to sack up and just take the loss and make the price 400. If they dropped the price to 400 Im sure people who dont even like sony will buy them up. especially going into the holidays with a very competative price as well as a decent software lineup. It would be the best possible thing they could ever do.


RE: Sony should do...
By xsilver on 9/4/2007 7:46:09 AM , Rating: 2
one of the reasons why BD /HD-DVD isnt taking off as expected is that consumers had 20 years to make a jump from VHS to DVD. The market cannot seriously expect the next jump to happen in under 10 years.
Pricing the PS3 at the same price as the cheapeset BD player is already a very bold move; it was the same in the PS2 days.


By drank12quartsstrohsbeer on 9/4/2007 11:58:03 AM , Rating: 2
Its more than just that. With DVD you could hook it up to the same TV and get a dramatic improvement in picture quality. You really didn;t need to buy a new TV.

Plus, DVDs provided several features you couldn't get with VHS: no rewinding, Chapters, subtitles, longevity/no picture quality loss due to use of the disc.

For most people $500 for a blueray player plus $1000 for a HDTV just isn't worth it.

The number of hdtv sets sold keeps increasing, but they still haven't penetrated the market far enough. Until the majority of television programming is delivered in HD (and without a price premium), sales will be slow.


RE: Sony should do...
By Locutus465 on 9/4/2007 11:01:45 AM , Rating: 2
If this is the case then it's just more evidence that perhaps throwing blue ray into the PS3 as standard equipment was premature. Perhaps it was convinent specifically for epic softwares UT3, but Epic could also have used multi-dvds, or if that absolutly would not have worked as optional downloads to the hard drive (or flash) which would have worked fine for both X-Box or PS3. 360 Core, in that case, would not be an issue as core owners could either buy the HD, or space allowing download to flash.


RE: Sony should do...
By rdeegvainl on 9/4/2007 1:46:18 PM , Rating: 2
Oh no please do not have me go back to the day of switching out discs. I did it once and don't want to do it again.
How annoying is it to get home want to just relax and play a game, oh, have to get up and change the disc, oh new map/level/whatever, gotta do it again. That is why I love moving to the ps2, i never swapped a disc again. And running out of hard disk space and having to uninstall Games that were to big would be even worse.


RE: Sony should do...
By Locutus465 on 9/4/2007 1:58:06 PM , Rating: 2
Not sure about PS3, but X-Box already suggests to end users that the download game updates in some cases (presumably game fixes) and allows for custom content downloads. Other than people playing with video market place as far as I know 20GB hasn't been a problem, I seriously doubt the play station's 60 would be an issue for extra (optional) maps. Ditto for x-box, honstly I'd be supprised if the maps couldn't be designed to fit well on external flash cards. The point is, in the interst of...reality...throwing all sorts of expensive difficult to manufature equipment into the play station 3 which was already going to have it's own manufacturing issues to work out was a bad choice.

I work as a programmer, one little rule we try to live buy is not making to many big changes all at once, it leads to problems, some times totally unforseen ones.


RE: Sony should do...
By kusala on 9/4/2007 7:05:10 AM , Rating: 5
They need more games to make up the loss and as of now they cannot do that. There is just not any good enough games. Mine is a dust collector :(


RE: Sony should do...
By CtK on 9/4/2007 7:59:42 AM , Rating: 3
Get Warhawk it is a great game!!!!


RE: Sony should do...
By mars777 on 9/4/2007 9:06:53 AM , Rating: 1
There are good games, and those are the less notable manga style games. It's just that you're looking at HALO games, with chewed up story and beautiful graphics :) I prefer more artistic approaches, which only sick japanese minds can grew in house with a limited budget :)
It's a matter of taste: you can only say there are not any good enough games for You.

PS.
I like to play an fps or two from time to time but...
for my taste the Xbox360 has too much FPS games and not enought good NONFSP ones, or they dont get enough publicity. And then ... Ubisofts next gen "Haze" has gone only PS3... Damn and i wanted to play it on the PC since i just cant put a comfortable gaming table in front of the TV!!!


RE: Sony should do...
By h0kiez on 9/4/2007 11:12:48 AM , Rating: 2
Just so you know, you're pretty much the only person arguing that the PS3 has a lot of great games available for the system.

Care to name any excellent PS3 exclusives? Say Lair...I dare you.


RE: Sony should do...
By Murst on 9/4/07, Rating: 0
RE: Sony should do...
By Murst on 9/4/2007 11:20:14 AM , Rating: 3
oops, it was the poster above him. In any case, Warhawk is an excellent exclusive.


RE: Sony should do...
By rdeegvainl on 9/4/2007 1:47:57 PM , Rating: 3
Resistance


RE: Sony should do...
By npoe1 on 9/4/2007 12:21:00 PM , Rating: 2
I bought Xbox 360 because of Forza 2, Blue Dragon and Lost Odyssey. I don’t like FPS the last one that bought was F.E.A.R. (PC) and previously Return to Castle Wolfenstein (PC). I only enjoy Japanese RPGs and Strategy Games.

I would love Xbox to have more RPGs and good ones. I hate handled consoles but I’m considering buying a PSP or a DS because none of the consoles seems to have a strong RPG backup. PS3 have White Knight and Wii have Dragon Quest. I would love that the golden era of RPG (PS) makes a come back.


RE: Sony should do...
By Locutus465 on 9/4/2007 1:32:33 PM , Rating: 2
OVERLORD!!! I'm also liking Dirt, DOA is always good, Fusion Frenzy 2 is fun and personally I like Champions League soccer.


Good deal, but...
By frombauer on 9/4/2007 9:04:25 AM , Rating: 3
I wanted to get a 60GB model because of the ps2 hardware in it, but there are simply too few good games available to justify the purchase. I'll wait until next year.




RE: Good deal, but...
By mars777 on 9/4/2007 9:20:13 AM , Rating: 3
Just look at the compatibility list for your games. There is chance that 100% of them are perfectly emulable. And you get the 1080p upscaling :)


RE: Good deal, but...
By frombauer on 9/4/2007 9:57:46 AM , Rating: 2
Hmmm the 60GB doesn't upscale to 1080p? Is this for regular DVDs? Thanks!


RE: Good deal, but...
By Murst on 9/4/2007 10:13:26 AM , Rating: 2
How do you upscale PS1 & PS2 games on the PS3? The only options I get is stretch and smoothing. And neither looks like any sort of upscaling has been done.


RE: Good deal, but...
By npoe1 on 9/4/2007 12:27:47 PM , Rating: 2
I’ve been trying to not buy the PS3 because there is not a game right now that justifies the purchase, but I’m not sure that the emotion engine worth $500, sure I have the PS and PS2 games, but yet is a hard to bite bullet.

How much do you think that will be the price on PS3 next year?


RE: Good deal, but...
By acer905 on 9/4/2007 12:57:52 PM , Rating: 3
(just a thought... why not just... use a ps2 to play ps2 games?)


RE: Good deal, but...
By rdeegvainl on 9/4/2007 1:50:39 PM , Rating: 2
Yeah, they do seem to still be selling like hotcakes, considering how old it is.


I'm gonna play the speculate game
By rdeegvainl on 9/4/2007 8:20:35 AM , Rating: 2
Ok I am deployed and not in the states so if this doesn't really match up to the reality there, let me know.
About the out of stock comment. What are the chances that that was just to drive up demand for the 60GB version. Maybe then they will say demand for a lower price version was outstanding enough that they either keep it around (maybe a rumored 40gb) or drop the price on the 80gb after everyone rushes for the 60gb. Maybe it is just wishful thinking, for when I get back there will still be a 500$ or less version.




RE: I'm gonna play the speculate game
By h0kiez on 9/4/2007 11:15:22 AM , Rating: 2
There will be a $500 version...that's what this story is about. Sony will be making the 80GB version (which costs them less to produce that the 60GB) occupy the $499 price point. They just can't announce that yet because they have to sell the glut of 60GB consoles in the channel first.


By roadhog74 on 9/4/2007 8:22:54 PM , Rating: 2
however it will still be costing them more to make it
than to sell it.

Getting the balance between market share and loses is
a rather difficult decision. I suspect they will be doing it
based on the number of games sold per PES3 to break even.

Relative to the XBox360 there sales aren't too bad.
The playstation 2 is still out selling both of them and
will probably continue to do so until Christmas.

If I was in charge of the xbox division at Microsoft
I would be making every effort to have a PS2 emulator
released for the xbox about 1 December.


Price Cuts
By mrteddyears on 9/4/2007 7:00:43 AM , Rating: 3
Sony have to drop the price of the PS3 in the USA and to fund that drop they will keep the prices high in Europe since the $$$ is very weak at the moment.

To me it is funny to see that the WII is now the fastest selling console in the UK.




RE: Price Cuts
By killerroach on 9/4/2007 8:26:09 AM , Rating: 2
I think the main motivation for Sony to lower the price on the 80GB model is to avoid reaping some very ill will from gamers who are already a bit wary that the whole tactic seems to be a bit of a bait-and-switch. Dropping the 80GB to $499 will make it seem a bit more like Sony is actually noting the public's concern about the price rather than using the $499 price point as "the point where Sony consoles go to die."


Touch choices...
By JSK on 9/4/2007 1:12:10 PM , Rating: 2
Buy a PS3 this week and get the amazon/blu-ray deal and get 8 Blu-Ray movies free at $500.

Or wait till next month, miss out on a month of Madden in hopes of a price cut on the 80GB and that their may still be a deal on movies also.

I dont really care about motorstorm, and the 20GB difference doesnt matter when its cheap to swap out a good hard drive. And I dont want to take the chance of missing out on the movies.

So I think I just answered my own question.




This has been expected
By MrUniq on 9/4/2007 10:32:56 PM , Rating: 2
After Halo 3 comes out this 80GB model will occupy the 499 price point most likely, without motorstorm in order to justify it's previous 599 price point. I was concerned about the lack of the PS2 hardware, but as I began to think, that may be preferable. Software emulation can lead to future modifications and enhancements that cannot be done at a hardware level. Plus you get the 80GB instead of 60, and who cares about motorstorm when it's going to sell for $19 within two years. The only thing I think Sony should focus on is allowing DVD format games in order to bring down some of the pricepoints...if that is not already happening. In addition they should focus on adding more downloadable casual games..Popcap comes to mind. The PS3 needs games, period. I would love to buy one, but I can't justify it's "fun factor" over an increasingly affordable XBOX 360.




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