With price being many consumers’ sticky issue on the
PlayStation 3, Sony appears to be adjusting the price of its new games machine
sooner than expected.
A member of the DVD Talk forum acquired a Circuit
City flyer for the week of July 15, and posted a number of gamer-specific
deals. Of extreme interest is the retailer’s price on the PlayStation 3, listed
at $499.99 after a $100 “price break.”
It was originally unclear if the $499 price point was just a
specific to Circuit City, but a merchandising manager at a supposedly large
retailer confirmed with GameDaily that
the price drop is to be retail-wide on July 12, with the first wave of ads to
promote the new PS3 price starting July 15.
It is now believed that Sony Computer Entertainment America
will be officially announcing the new $499 price of the PlayStation 3 at its E3
press conference next week, scheduled for the morning of July 11.
The $499 price point was previously occupied by the 20GB
version of the PlayStation 3. Sony launched its console in November 2006 with
two variants – one at $499 and the other a $599 – with the more expensive
version featuring a larger, 60GB hard drive and Wi-Fi connectivity.
Citing reasons related to consumer demand, Sony in April
discontinued the $499 20GB PlayStation 3 leaving only the more expensive
$599 60GB model on the market. Since that move, the issue of price has cropped
up in various interviews with Sony executives.
Sony president Ryoji Chubachi said to the Financial Times, “We are
re-examining our [PS3] budgeting process in terms of pricing and volume. Sales
assumptions change and the market is competitive. We are in the midst of
revisiting our strategy for the PS3.”
More recently, Sony CEO Sir Howard Stringer said in June regarding
the PS3’s price, “That is what we are studying at the moment. That’s what
we are trying to refine.”
Puzzlingly, amidst all the evidence of a pending price cut,
Chubachi told Reutersearlier today, “At present we have no plans [to cut the PS3 price].”
Although the upcoming new price of 60GB PlayStation 3 is the
same as the discontinued 20GB version, which represents little actual savings
for gamers looking for an even cheaper way onto Sony’s new game platform, those
interested in the console’s high-definition movie playback capability will find
some extra value.
All PlayStation 3 (and various other Blu-ray player)
purchases made from July 1 to September 30 are entitled to five free Blu-ray Disc
movies as part of a special promotion from the Blu-ray Disc Association.
The upcoming $499 price will also put the PlayStation 3 on
par with Sony’s cheapest standalone Blu-ray Disc player, the BDP-S300.
When the PlayStation 3 first launched last year, it was an
able movie player, but it lacked several important features of standalone
machines – for example, DVD upscaling. Thanks to regular firmware updates from
Sony, however, the PlayStation 3 is now able to upscale DVD movies up
to a 1080p resolution – putting it on easily on par with the best Blu-ray
Disc players on the market.
quote: Besides, if you wanna avoid the sales tax order it online. Just make sure it comes from out of your state and you py no tax. With so many online stores offering free shipping for expensive purchases like this it works out well.
quote: so better hope the IRS doesn't audit you sometime
quote: At the risk of fanboiism, MS is really getting its ass kicked in the console space. When the 360 came out, it completely cannibalized sales from the original Xbox and the same thing is happening with the Elite. On the other hand, the PS3 competes more with HD DVD players now than the other consoles and the PS2 outsells all other consoles other than the Wii. Since Nintendo makes a profit from every console it sells from the very first unit, its already recouped on GameCube development so it doesn't care if GC sales are cannibalized. Sony can afford to be patient because, even though the PS3 is not that big a seller as a console, its one of if not THE highest selling hi-def video players on the market. That leaves Microsoft struggling to keep up... MS NEEDED to release the Elite because the Wii slowed Xbox 360 sales to practically a crawl and the PS3 had too much upside. The PS3, especially with the $100 price drop and improved firmware, is a better value than the Elite. The basic economics is that MS is losing the console wars on almost every front. If MS didn't have such deep pockets, the Xbox line of consoles would already be off the market.
quote: The 360 has a game library that makes the PS3 look pathetic. Even the titles that are released on both systems are almost always better on the 360.
quote: MS is really getting its ass kicked in the console space
quote: I like Blu-ray over HDDVD because of the added disc space only, and this only helps Blu-ray's cause.