backtop

Blog: Gadgets PS3, PSP See Price Hikes in Canada
Marcus Yam (Blog) - January 26, 2007 4:53 AM
Print E-mail del.icio.us 14 comment(s) - last by dice1111.. on Jan 30 at 2:18 PM

PlayStation 3 at Future Shop

PlayStation 3 at Best Buy

PlayStation 3 at Sony Style

PSP Entertainment Pack at Amazon
The price of PlayStation 3 rises just after the All-Star break

The price of the PlayStation 3 has always been a hotly debated topic. It’s well known that Sony packs a ton of marvelous technology inside its latest console, resulting in a loss on every unit sold, but regardless of that, the PlayStation 3 is an expensive gaming machine.

Gamers in the U.S. are asking for a price cut, Japanese gamers are already got a drop and Europeans are just plain waiting. Canadians, however, could be seeing one of the first ever console price hikes. Note: all prices discussed in this story are in Canadian dollars, unless otherwise specified.

Future Shop and Best Buy, the two biggest consumer electronics retailers, without warning, quietly raised prices on the PlayStation 3. As listed on Future Shop Web site, the 60 GB version now costs $699.99, an increase of $40. Best Buy’s Web site also reflects the new 60 GB price of $699.99. Neither site has the 20 GB PS3 in its listings, but a Future Shop employee did say that the lesser PS3 is now listed at $599.99, a $50 increase from the original price.

It’s important to note that Best Buy and Future Shop are both operated by the same parent company, so it’s unclear if the price increase is a result of a revised nationwide price set by Sony or just a retailer-level decision. Sony was not available for comment at time of writing.

One possible explanation for the change in price is due to the fluctuation of the Canadian dollar. Between the time of the console’s price announcement and present day, the Canadian dollar has fallen relative to its American counterpart. At the present exchange rate, US$599.99, the price for a 60 GB PS3, works out to $709.18.

The PlayStation 3 isn’t the only Sony console to see a rise in price. The PSP Entertainment Pack went from $279.99 to $299.99. The change in price is noted not only at Future Shop and Best Buy, but also at Amazon.ca.

Strangely, Sony’s own e-commerce site SonyStyle.ca still lists its PlayStation 3 hardware at the originally announced prices. At this current time, the 60 GB PS3 shows as in-stock and can be purchased for $659.99 with free shipping.

Although it’s uncommon for consumer electronics to vary pricing according to exchange rate, Nintendo once set the precedent for an adjustment when it lowered the price of the GameCube due to the rising Canadian loonie.

I’ll let you know as I find out more.

Comments     Threshold


This article is over a month old, voting and posting comments is disabled
Price increase?
By vdig on 1/26/2007 8:53:34 AM , Rating: 3
I know that Sony said the console retails for $599 U.S., but increasing the cost to reflect that in Canadian dollars after setting the price at launch is pretty bad in the eyes of the Canadian consumer. This is especially noticeable since most PS3 users need to buy the HDMI cable, and perhaps even an HDTV if they do not have it, to really experience the console.

I understand that, money wise, this would seem like the good way to prevent further losses per PS3 unit. This, however, makes it even harder for many Canadians to even justify the PS3 unit. I see it in another viewpoint, in that making it harder to afford the PS3 also means that people are going to buy far fewer titles. If there are few PS3 gamers harping about the PS3 library, then it is counter productive in terms of boosting much needed word of mouth praise for the PS3. These word of mouth recommendations are the most effective form of advertising, which in turn brings in more clients. For proof as to why such word of mouth is important, one can, once again, easily look to Nintendo. The word of mouth for the Wii is staggering. I still hear plenty about it. It is almost always good impressions, even when they concede the graphics to other consoles, and when they do concede, they draw that comparison to the 360, not the PS3.

I think that raising the price is a mistake. However, if there are other reasons that are not so obvious, maybe it could be justified. I just can't justify it myself.




RE: Price increase?
By Flunk on 1/26/2007 11:54:18 AM , Rating: 5
Actually this just gives me more reasons to buy an Xbox 360. Thanks Sony for making my choice so easy.

(I'm Canadian)


RE: Price increase?
By mm2587 on 1/27/2007 12:07:22 PM , Rating: 2
you could always just buy a ps3 from sonys website for its orginal price and free shipping... I predict a discussion full of more sony bashing (not that you specifically did) when really this apears to be a bestbuy/future shop decision.


RE: Price increase?
By nurbsenvi on 1/28/2007 2:00:18 AM , Rating: 3
Well at least you Canadians can GET the console at $699
In Australia not only 60GB model costs AU$999(which is like CA$999) it has not even been released!!! HAHAHA
HOw Shit is that.


RE: Price increase?
By dice1111 on 1/30/2007 2:18:31 PM , Rating: 2
According to xe.com (30/01/07 @ 1:16pm CST)

$699.00 CAD = 767.523 AUD
$999.00 CAD = 1,096.64 AUD
1 CAD = 1.09803 AUD 1 AUD = 0.910722 CAD

Even though your a bit off about the conversion, you are still getting ripped. I'm sorry to hear that.


RE: Price increase?
By xphile on 1/28/2007 6:10:35 AM , Rating: 2
Raising a retail price, if it is in fact true is unprecedented. No matter what the exchange rate is this never happens once its been set. Sony have serious sales problems, partly because of price. What kind of genius thinks making the price higher is going to solve them? The well known Sony business practice called "Hari-Kiri" is at work here.

There simply are no reasons to justify this as a valuable retail move for either Sony or the retailers involved. Oh well no I'm wrong, there is just ONE. Sony's finance department just figured out a new marketing strategy:

"We are making a loss of up to 300 hundred US dollars on every 60gb unit we sell. We are looking to sell tens of millions of units. The result is going to be a catastrophe. But we are Japanese and we can not be seen to give up, we would lose face. Let's quietly raise the retail price until nobody ever wants to buy one. If nobody ever buys one, we lose no money!"


Target Market
By ahkey on 1/26/2007 4:36:52 PM , Rating: 2
Do remember that not all people can afford a console like PS3 - it appeals to a certain demographic: The Rich Kid. If he's prepared to pay however many hundred for it, then why not $50 more?

Sounds like a sound strategy of recouping losses to me.




RE: Target Market
By xphile on 1/28/2007 6:22:44 AM , Rating: 2
Hell sure, why not double it, or triple it. Im sure you and the other 2000 odd rich kids in the world with daddy's who are billionaires wont have a problem with a 2 or 3 hundred thousand dollar price tag and maybe oh ten grand a game. Nice and exclusive toy to brag about then.

See your analogy doesnt work, cause gee thats fuck all sales and Sony's still super duper in the shit. Increasing the price in ANY way hurts their sales and they simply cant afford it. Less consoles sold = less games sold (where the profit IS) = longer to recoup costs overall = longer to be able to drop the price and still make money = total loss to the competition.

It is NOT about recouping losses - if it was about recouping losses they'd stop selling the fucking thing outright - no losses at all then. Its about market share and a primary school student could do a better job of it than Sony is with this sort of senseless crap.


RE: Target Market
By Chillin1248 (blog) on 1/29/2007 6:08:53 PM , Rating: 3
However the amount they will recoup on price is worth nothing compared to the publicity they will receive - negative that is.

-------
Chillin


Wha huh?
By edge929 on 1/26/2007 5:06:47 PM , Rating: 2
So let me get this right. A few select stores in Canada RAISED the price on the already unaffordable PS3?

Increasing price on a low demand/high supply item is never a winner. Isn't that basic economics?

In other news, the world will be freezing over tomorrow.




RE: Wha huh?
By Hoser McMoose on 1/29/2007 3:01:33 PM , Rating: 2
Low demand/high supply?! Coulda fooled me!

From www.bestbuy.ca PS3 page:

"Online Availability
This product is sold out."

From www.futureshop.ca PS3 page:

"Quantity Remaining: 6 Limit 1 per household."

Note that is quantity of 6 for the entire country. I dunno about everyone else who says they see PS3s stacked up, but at least in my part of Canada (K-W in Ontario) they are damned near impossible to find. I still have yet to see one stocked on store shelves.

That being said, the Nintendo Wii is even harder to find! Both Future Shop and Best Buy are completely sold of that one, as is pretty much every other electronics retailer in the country.

Ohh, and another point of note, this isn't really a few select stores, it's just ONE retailer. Best Buy owns Future Shop and they're really just two names for the same retail chain. However I wouldn't be at all surprised if other electronic retailers follow suit.


Good
By gramboh on 1/26/2007 12:15:33 PM , Rating: 1
This will make it easier for people to steer clear of this awful piece of crap and buy an Xbox360 for significantly less money. Anything that makes Sony lose market share in North America is good.




RE: Good
By gramboh on 1/26/2007 12:16:24 PM , Rating: 2
Sorry about the double post, I get that stupid "Ooops" error every time I post. Why hasn't that been fixed yet?


Good
By gramboh on 1/26/07, Rating: -1
"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher

DailyTech Poll
Which web browser do you use on your primary personal machine? 






44 Comments











botimage
Copyright 2009 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki