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The 60GB PlayStation 3 will soon sell for the same price as its late 20GB sibling

The Circuit City ad showing the PS3 selling for $499 (Source: Kotaku)
Retailer information points to a PS3 price drop to $499 coming July 12

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.

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Its about time
By mdogs444 on 7/6/2007 8:34:55 AM , Rating: 2
Regardless of Sony saying that they have no plans to drop the price, they know it has to be this way in order to compete. When losing out to a console (xbox 360) whos return rate is through the roof, its not a good sign.

I know many were skeptical on buying the PS3 because of price, limited games, & BD/HD format war - but many were also skeptical on buying the 360 with the RROD issue and only a 1 yr warranty. Now that sony is dropping price to $499, and MS has extended the warranty to 3 yrs.....which becomes the better deal, and which will see higher increased sales?




RE: Its about time
By 05SilverGT on 7/6/2007 8:46:03 AM , Rating: 2
I agree it's about time however; there still aren't many games worth buying that aren't already on 360. I'm tempted to buy a PS3 but I just need some more content first. On a side note I feel for all the 360 users with issues. Knock on wood I haven't had an issue with my launch Prem or Elite. These kinds of problems aren't exclusive to MS though. The new Sharp Aquos LCDs have a banding issue and so far Sharp has sent me five replacement sets with the same problem. Defects can happen anywhere.


RE: Its about time
By isorfir on 7/6/2007 8:53:33 AM , Rating: 2
This might not tip the scales for current 360 owners to buy a PS3, but anyone on the fence has even more of a reason to go with a PS3 now.

For roughly the same price as an Xbox 360 Elite, you also get a Blu-ray Player, user replaceable hard drive and Built-in wireless, all without the worry of RRoD? Nice.


RE: Its about time
By jay401 on 7/6/2007 8:57:52 AM , Rating: 2
If only it had the library of games the X360 has...


RE: Its about time
By LtFarva on 7/6/2007 10:17:19 AM , Rating: 2
Other than Gears, Mass Effect, and Halo3, I can just get almost everything else I want on the PC.

What's even more confusing is that I'm a big RPG fan, always love a good colsole RPG, so you would assume the Japan-made PS3 would be the choice for me, but right now, I have no idea.


RE: Its about time
By jpeyton on 7/6/2007 6:38:06 PM , Rating: 1
Poor Sony; when we first heard of the $499/$599 launch price, I already knew they were doomed.

Expect the $100 price drop to increase sales 20-25% to 100,000 units/month in N. America. Still about half the XBOX 360's numbers and about 1/3 the Wii's numbers.


RE: Its about time
By Chillin1248 (blog) on 7/8/2007 12:08:17 AM , Rating: 2
Would be nice to see a teeny price drop over here where I live (Israel). A PS3 costs roughly $1,100-$1,400 USD here and a Wii costs ~$300-400 USD last I checked. Tom Correlis can correct me if I'm wrong.

-------
Chillin


RE: Its about time
By Rage5469 on 7/8/2007 1:02:24 AM , Rating: 2
Um, try PS1 and PS2 games in this library and you have quite a bit of a selection. As for PS3 games, try over 60 that are out right now. And don't forget the downloadable games in the Store...cheap ones, but fun ones...ask my wife..heh heh.


RE: Its about time
By FITCamaro on 7/8/2007 8:57:39 PM , Rating: 2
Now we're adding in legacy titles to a console's game library?


RE: Its about time
By cscpianoman on 7/6/2007 9:13:20 AM , Rating: 5
And I bet sometime within the next month or so Microsoft will announce a price drop.


RE: Its about time
By mdogs444 on 7/6/2007 9:26:59 AM , Rating: 1
After they just announced an extended 3 year warranty and 1 billion dollar deduction they have to take for console fixing?

Highly doubt that as they just took a huge hit. I personally think a 3 year warranty and $399 is better than $299 and 1 year warranty. Especially now that they have confirmed "changes" to the 360 to help prevent hardware failure (65nm? new heatsink design?)


RE: Its about time
By Araxen on 7/6/2007 11:38:15 AM , Rating: 2
It's a 3 year warranty for a system with a design flaw. After 3 years, you'll be buying another 360. So you'll end up paying more for the 360 in the long run.


RE: Its about time
By mdogs444 on 7/6/07, Rating: 0
RE: Its about time
By ObscureCaucasian on 7/6/2007 11:58:20 AM , Rating: 5
With the losses both Sony and MS are taking on this generation, it's not hard to see both companies making this generation last 6-7 years. The sooner they rush to a new generation the sooner they get losses again.


RE: Its about time
By Verran on 7/6/2007 12:58:17 PM , Rating: 5
This is a very good point, but it's also indicative of M$ and Sony's lame outlook on the console market as a whole. In 6-7 years, the current hardware will be a joke, but they'll continue to push it because they buried themselves so hard at launch. The console buyers are the ones who suffer.

This "strategy" is one of the main reasons that Nintendo was able to sieze such a strong market share. Most people don't look at a console as a decade-long investment. They see it as a fun toy.


RE: Its about time
By ObscureCaucasian on 7/6/2007 2:39:02 PM , Rating: 4
That means either after 6-7 years the Wii will be incredibly outdated, or Nintendo will be the first mover in the next generation, delivering a system w/ better graphics than the PS3/360, but staying fairly modest for its time.


RE: Its about time
By Acid Rain on 7/6/2007 4:26:11 PM , Rating: 1
"The console buyers are the ones who suffer."

I totally disagree.
in 6 years they'll get for $200 a gaming experience who is still unmatched by any other piece of hardware they can get for the same amount (not counting other consoles). now they get for $400-600 a gaming experience that will last them longer then a high-end computer that costs 2-3 times as much. honestly PS2 after 7 years (7!) is delivering a gaming experience a 7 years old high-end computer would never deliver.

this is the inherit advantage of having a specific, widely used, hardware platform to develop for - so if the "buyers" are looking for gaming experience - they are aren't suffering at any time-point by purchasing a high-end console in my view.


RE: Its about time
By Acid Rain on 7/6/2007 4:28:58 PM , Rating: 2
actually a PS2 cost $120 (not 200) for a year now so that might be PS3 price in 6 years.


RE: Its about time
By SigmaHyperion on 7/7/2007 2:24:56 PM , Rating: 2
While Sony has said that they fully-expect the PS3 to last 6-7 years, Microsoft has said that they don't expect the lifespan of the 360 to be any greater than that of the original Xbox -- which was only 4 years. So you might see a next-gen 360 as early as Holiday 2009, whereas Sony isn't expecting to release theirs until more like 2012.

Now, that was before all the money-losing problems that the 360 has had. And that was before they knew that Sony was planning on waiting so long to release their next-gen. So only time will tell if MS follows through with that development schedule.

They've got as much as 4 full years between when they originally wanted to replace the 360 and when Sony wants to replace the PS3. That's, essentially, an entire console generation headstart that they could get next time around. So they might wait an extra year or two; they'd still beat the PS4 to market by at least a good couple years unless Sony can really accelerate its' development -- a major problem for them this generation that they'd b hesitant to repeat.

On the other hand, if the 360s problems are so integrated into its' design that nothing short of essentially starting from scratch will fix them, it might be more cost-effective in the long-run to just take the lickings this generation and work on perfecting the next one. Just keep doing charge-offs for the warranty work and work on getting a new design out before 2010.

With a 2-3 headstart on Sony, it doesn't really matter how much goodwill Microsoft might lose this generation, people are going to buy their next one anyhow. People will wait a year if it means getting the next-gen console they really want, but with a multiple-year delay between the two, they're not going to want to wait that long to play the next-generation of games. And the later adopters that come along even after the PS4 is released will just be swayed by the huge price advantage that MS will be able to pull off because it was released so much earlier.


RE: Its about time
By ObscureCaucasian on 7/6/2007 12:02:04 PM , Rating: 2
I can't imagine that the flaw will still be present in 360's made 3 years from now, I'd imagine that 1 billion dollar repair is pretty good incentive to get them to fix their problem.


RE: Its about time
By Chadder007 on 7/6/2007 9:28:12 AM , Rating: 2
In another forum they said an announcement will come next Tuesday of a price drop for the XBox360.


RE: Its about time
By mdogs444 on 7/6/2007 9:36:57 AM , Rating: 3
Link to that post? Id be curious to read that


RE: Its about time
By Oregonian2 on 7/6/2007 4:22:53 PM , Rating: 2
Of course there is the minor issue that a head honcho at Sony TODAY denied that there will be a price cut.

Just lowering the price to compete sounds good, but I don't think they'll sell them for 99-cents just so they'll REALLY sell (which they would). There is the minor issue having to do with profit being of a negative signed nature already.


RE: Its about time
By TomZ on 7/7/07, Rating: 0
RE: Its about time
By ObscureCaucasian on 7/7/2007 12:36:33 PM , Rating: 2
Did you expect him to say, "yes were going to price cut in a week?" Talk about killing sales.


RE: Its about time
By jacarte8 on 7/6/2007 9:00:54 AM , Rating: 2
I'm pretty anti-Sony but the desire for Blu-Ray to go along with my HD-DVD goodness is getting so high...

$499 means used ones will be so cheap from Gamestop...

Must resist... credit cards...


RE: Its about time
By awer26 on 7/6/2007 9:20:01 AM , Rating: 4
Yeah, I love the used stuff at Gamestop! [/sarcasm]

A brand new game is $49.99 and a used on is $45 (after some poor guy sold it to them for $10). Honestly, a 10% or less discount is not enough to get me to buy a used PS3 (or any used expensive electronic). You'll be paying $100s in accessories and games, so why not splurge and just get a new system.


RE: Its about time
By akugami on 7/6/2007 11:07:06 AM , Rating: 2
I'm sure most have seen my posts on Sony and the PS3 and know I'm not exactly positive on them at the moment. I can say I'm now extremely tempted at $500 for the PS3. I won't even have to pay taxes since my brother works in Maryland and passes by Delaware (no sales tax) so it'll just be $500. He (my brother) swings down to where I live every couple of weeks and could pick one up on the way. Good move on the price drop if it's an official drop. At $400 I would positively be in. At $500 I'm swaying towards picking one up now.


RE: Its about time
By shortylickens on 7/6/2007 11:11:41 AM , Rating: 2
I am also anti-sony but this will not encourage me to buy one yet. In my mind it went from really overpriced to a little overpriced. I will probably have to wait at least another 6 months for an ideal MSRP, and only then if the competition can force them to reduce it once more.


RE: Its about time
By GhandiInstinct on 7/6/07, Rating: 0
RE: Its about time
By akugami on 7/6/2007 1:10:58 PM , Rating: 2
Depends...how many games and accessories are you buying and are you being charged sales tax on the free movies? Assuming a sales tax of 10% you'd need to buy $1000 in goods to get hit with $100 in sales tax. I don't know of any state in the US with a sales tax of 10% though. I believe the average is about 8% nationwide, though it obviously varies from state to state.

At $500 and assuming an 8% sales tax, that's only going to be about $40 in tax. Buy an extra controller and a game and it should only be about $600 with just under $50 in sales tax.

Obviously places outside of the USA with VAT's are going to get hammered. However we don't know if places outside of the USA are going to have a price drop. Heck, we haven't even gotten solid proof this is not a special sale and not the permanent price drop. Sony might be running a one or two week special to generate some interest and move some consoles then putting the price back at $600 before dropping it in November for the holiday season.


RE: Its about time
By GhandiInstinct on 7/6/2007 2:25:11 PM , Rating: 1
Ok so $40 tax, mind you this would be higher priced at 600, still that means you're saving $60 with this price drop. It's still ridiculous, that's the price of a game.

Again, I fail to see any encouragement here with $100 off, $200 is a whole new ball game, then it makes the blu-ray cell potential package a lot more enticing.


RE: Its about time
By shortylickens on 7/6/2007 3:45:31 PM , Rating: 2
Dude, open your mind.
Its one sixth the base price. Any place else you take off 1/6th just for the hell of it (no strings attached) and people are going to be thrilled. Imagine if all the auto makers reduced prices by 1/6th but without any fine print, it just becomes the new price.
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.


RE: Its about time
By theapparition on 7/7/2007 3:24:49 PM , Rating: 2
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.

And then make sure you then claim that taxable item on your state income tax return. Just because the out-of-state retailer can't collect state tax doesn't mean you don't have to pay it. In fact you do, so better hope the IRS doesn't audit you sometime.


RE: Its about time
By SmokeRngs on 7/9/2007 10:07:36 AM , Rating: 2
quote:
so better hope the IRS doesn't audit you sometime


The IRS doesn't care and doesn't have any say over the matter anyway. Sales tax is state and local tax which means only the states can conduct an audit or prosecute for not reporting internet purchases.


RE: Its about time
By shortylickens on 7/10/2007 4:05:50 PM , Rating: 2
THANK YOU!
I am SO glad somebody here knows the difference between state government and federal government.
That sort of knowledge is seriously lacking in DT and the AT forums.


RE: Its about time
By dosun on 7/6/2007 3:57:39 PM , Rating: 3
Some people just look for excuses to bash the PS3. Depending on the state you are in, you are saving over $100 with this price drop.

The Xbox 360 Premium + the 120gb hard drive would end up costing more than the PS3 with the price drop.


RE: Its about time
By MrTeal on 7/6/2007 7:00:50 PM , Rating: 2
I can't wrap my head around your logic. If you factor in the sales tax, the $100 price drop saves you more , not less, than $100. Whereas before at $600 and 8% you were paying $648, now you're only paying $540.


RE: Its about time
By rockyct on 7/7/2007 6:58:22 AM , Rating: 2
This $100 price drop is huge. Before, the PS3 cost about the same as the Xbox 360 premium + their HD DVD add on (no HDMI or wifi however). That made sense as a price point, but not much incentive for the public. You were forced to buy a HD player with your console, but there was no cost incentive. Now, hardware wise, you are paying $20 more to get a HD player compared to the elite (which still doesn't have wifi, but does come with cables).

A $200 price cut makes absolutely no sense when the PS3 will now sell quite well until early next year. The next step will be Microsoft changing the color of the Elite back to white and calling making it the premium model, and the Premium the basic.


RE: Its about time
By Rage5469 on 7/8/2007 1:11:51 AM , Rating: 2
So spend the $60 on a game. You're gonna do it anyway.


RE: Its about time
By krazyxazn on 7/6/2007 11:20:24 AM , Rating: 1
5 FREE BLU-RAY MOVIES WITH A PURCHASE OF A BLU-RAY PLAYER (that includes PS3).

No clue if these games are PS3 exclusive, but it doesn't really matter to me. Going by Gamestop's release dates. They are usually up-to-date with them.

Stranglehold, Lair, G.R.A.W. 2, Dynasty Warriors Gundam (LMAO, DW fan and a fan of some Gundam), Warhawk, Coded Arms Assault, Heavenly Sword, and BlackSite: Area 51.

These are the games for the next 2 months. Didn't add any sports games cause I don't play them and got no clue what are good in those series so I just stayed out of their way.


RE: Its about time
By ogreslayer on 7/6/2007 2:22:35 PM , Rating: 2
I was gonna pick up the PS3 next weekend anyway so a price drop is just a bonus. But the library is still pretty horrendous. So, I am not really sure what kind of benefit the price drop will be until Madden 08 and a few more of the high million selling franchises come out on the unit.


RE: Its about time
By Locutus465 on 7/8/2007 10:54:23 PM , Rating: 2
I hope this prompts microsoft to follow suit with at least a similar price drop. That would put them in a much better position (heck, the core 360 would be a great wii competitor).


3 years for next-gen? I doubt it
By Mach Omega on 7/6/2007 2:22:52 PM , Rating: 2
MS is still in the red overall in its XBox division so I highly doubt it will bring out a new XBox in the next three years. The Wii is so far behind technologically than the 360 or the PS3 that it really wouldn't matter if Nintendo brought out a new console because its unlikely it would have the horsepower of the current gen hardware. Plus, why take on the R&D costs when the Wii is already the kickin the crap out of the competition? Nintendo should and will ride the Wii for every dollar it can.

MS COULD come out with a new XBox soon but that would only drop the division further into the red... it makes more sense to ride this gen as long as possible and try to get into the black, THEN drop the hammer on Sony by releasing a new system every three years. That strategy probably would have worked if the Wii hadn't been so awesome. With the PS2 and its game library still selling like hotcakes, the Wii is actually truly stealing sales from the 360.

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.




RE: 3 years for next-gen? I doubt it
By pammy ut on 7/6/2007 7:00:28 PM , Rating: 1
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.


Mach Omega, no offense but that's the best fairy tale I've heard since Snow White and the 7 dwarfs.

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. The ratings and reviews don't lie.

The big loser in the console wars is the PS3, everybody knows that. Game developers HATE the Sony machine, and all indications within the development community indicate that's NOT going to change. As many developers have said in the past, and continue to say today... designing games for the PS3 is a "mess".

Bottom line: The 360 is hands-down the choice for 'serious' gamers who want the best in next-gen gaming. The PS3 is weak for games, making it more suitable for 'casual' gamers, and of course movie buffs, because it's a great blu-ray player.

Enough said.


By Timeless on 7/7/2007 3:08:41 AM , Rating: 2
You didn't read his post before writing did you? Nowhere in the Mach Omega's post did he ever compare the library of games from one console to another. And he didn't even say that the PS3 was better than the X360 except by specs, which even then is highly doubtful. In fact, if you read WHOLE post you would see that Mach clearly stated that the Wii and the PS2 were the current leaders. As for your last paragraph, I got nothing to say except "MS fanboyism."


RE: 3 years for next-gen? I doubt it
By Mach Omega on 7/7/2007 9:41:08 AM , Rating: 2
XBox fans hate this type of stuff, but it's simply true. Here are a few facts:

1. Microsoft's XBox division is still IN THE RED. Only deep pockets are holding it up.

2. Microsoft has a one year lead on both other consoles and yet still has barely moved 10 million units. The PS2 outsells the 360 at least 2 to 1.

3. Sales of the Wii have been devastating to the 360. Before the Elite came out, 360 sales had practically grinded to a halt.

4. Both Sony and Nintendo continue to make money off of there vast gaming assets while MS only relies on its current gen hardware. Sony makes a ton of money off of PS2 sales and its 120+ million installed base. PS2 games still sell like hotcakes. Nintendo is always in the black on R&D costs because of the modest tech in its systems and each console it sells makes a profit RIGHT OUT OF THE DOOR. Needless to say, the Wii and DS are kickin the crap out of everything right now. Every time MS releases a new console, sales of its previous consoles SHUT DOWN. 360 sales destroyed the original Xbox and Elite sales are directly effecting Premium sales.

5. MS has sold the fewest consoles and games BY FAR of any of the major console makers. It's not even close. The 360 is doing well but hardly so well as to bridge the CHASM of total game and console sales between it and Sony and Nintendo.

6. The PS3 is last among next-gen consoles but WELL AHEAD in sales of any HD video player. Once again, it's not even close. With the PS2 still selling well (and the PSP holding its own), Sony can afford for economies of scale to kick in for the PS3 to compete with the other consoles... in the meantime, it is helping Blu-ray crush HD DVD. How much money do you think Sony stands to make from Blu-ray licensing? Quick answer: A LOT. Once HD DVD is stomped, then economies of scale kick in (as well as Sony's massive game development holdings) and the PS3 starts to effectively compete with the other consoles. It's a win-win for Sony as long as it weathers the storm. Which brings me to my last point:

7. The PS3 is the BEST value among all the game consoles. Sounds crazy, right? So crazy that if MS had included a HD DVD player and HDMI on its first release of the 360, it would have been MORE expensive than the PS3. So crazy that MS stilll CAN'T AFFORD to bundle a HD video player with the 360 because it would make it MORE EXPENSIVE than the PS3. As time goes on, economies of scale favor the PS3. Don't believe me? Then ask yourself why MS released the Elite. I'll tell you: 1) to reenergize sales that had stagnated after the release of the Wii and 2) to try to fend off the PS3 by offering more disk space and HDMI. I won't even mention the Wii because it isn't even in the PS3's class.

If this upsets some folks, then what can I say? The facts speak for themselves. If anyone is "spinning" anything, it's MS and its fanboys. The 360 is a good machine, great in some ways, but it has peaked. As Sony continues to improve the firmware of the PS3, it continues to improve its value against the 360. The market is shifting in Sony's direction... big screen TVs with high-def. The 360 was made for everyone still with analog TVs. As prices drop for big screen LCDs and plasmas, The PS3 is already positioned to be the console of choice. Sony didn't help itself by putting out the PS3 only half done but, let's face it, if Sony had released the PS3 with the current firmware, there would be no question that it was the superior console. It would have buried the 360. MS can thank all of the bad press the PS3 received because that's really the only reason the 360 is still a factor (and XBox Live).


By Rage5469 on 7/8/2007 1:08:51 AM , Rating: 2
<BOWS>

Well said. And I agree.


By Mach Omega on 7/7/2007 10:05:21 AM , Rating: 2
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.


Funny, because almost every screenshot that I've seen of games released on both systems shows a slight edge in graphics in favor of the PS3. The 360 games tends to have more and better content than the PS3 versions. So better graphics on the PS3, better content on the 360. Sounds like a stalemate.


RE: 3 years for next-gen? I doubt it
By robber98 on 7/6/07, Rating: 0
By akugami on 7/7/2007 12:06:59 PM , Rating: 3
Well...from a business perspective I'd call losing billions of dollars not just from the original Xbox but the Xbox 360 "getting your ass kicked in the console space." However, it may only be just me.

Microsoft did well in terms of sales numbers on the Xbox. Everyone knows it's extremely difficult to get into console manufacturing today. It's why Sega, a great company, couldn't hack it. What MS didn't do well was limiting losses on the Xbox. It wasn't a case of making money (which would have been a bonus) it was a case of limiting losses as they get their foot in the door. So Xbox losing money was excusable.

Now comes the 360. It's losing a lot of money and while sales were good before the Wii and PS3, it's now getting clobbered. Sales are stagnating. The Wii has stolen it's thunder and whatever else it has left is chipped away by the PS3. While the Xbox 360 is not losing as much money now as in it's initial release, it's still losing money and I would be surprised if they can break even at the end of the 360's life cycle. I'd be extremely surprised if they recover all losses from the Xbox and Xbox 360.

I have a Xbox360 in the house so no fanboy spin from me. Only opinion.


By OxBow on 7/6/2007 9:45:41 AM , Rating: 2
With so many clamoring for a price drop and looking for any inkling that they'd be dropping the price, it's pretty impressive that they were able to keep the lid on this so long. For this to coincide with their other announcements at E3 next week seems to indicate that the PS3 will be gaining momentum.

Rocky start, rootkit hate, etc. etc. etc. there are a lot of people out there who revile Sony. Fine, but please consider this. The PS3 is designed to be a comprehensive entertainment center for many years to come. People wanting a high def movie player will certainly look at the PS3 regardless of the game situation. While there are a some franchises that are no longer "exclusive" many new IPs are coming out, some of which look truly incredible. All of this points to a good future for the PS3. Think of it as a locomotive, slow to start but carrying a lot of stuff, once it gets moving it'll be hard to stop.




By bozilla on 7/6/2007 10:15:54 AM , Rating: 1
You line of reasoning is astonishing. So you are saying let's go ahead and buy PS3 and keep it for years and years to come, while others will come out with once again brand new generation of hardware? Hah, yeah right. Dude, times are changing, We can expect end of next year for Microsoft and probably even Nintedo to show the specs for the next gen. This will the start of the 3rd year with X360 already. The only reason Sony is telling you that you should keep the console is because they lost so much money on PS3 that they will need a lot more time to recover, so it's not in their interest to lose you as a consumer.


By Chaser on 7/6/2007 10:41:15 AM , Rating: 2
How about a link for any "nexgen" gaming hardware official announcements? Or maybe a new "Nexgen" High Def DVD format?


By Hemipower on 7/6/2007 4:58:45 PM , Rating: 3
I think your the one thats a little confused here, buddy. If there were a shred of truth in your statement that the 360 will have a new system so early it will only be their downfall. I owned the xbox and own the 360, if they abandon the 360 the way they did the xbox1 and expect people to fork over another 400 they are seriously mistaken (I definitely won't).

I believe they had to get the 360 out of the gates early hence the early departure, add to that the low support for the xbox1 and its easy to see why. Its not the same this time around. The 360 has all the support and you won't see them jump ship any time soon.


By ObscureCaucasian on 7/6/2007 11:55:51 AM , Rating: 5
Late in the cycle is when the companies make the most money. Companies lose money during the first few years (unless made by Nintendo lol) and when the installed base is high and software becomes cheap then they start making money. MS was eager to get into this generation because of the nature of the original Xbox, it was expensive to make. Sony wasn't as excited because they were (and still are) making a ton of cash off the PS2.

As for the price cut heres how it compares to other consoles

Time at original Price:
PS3(assuming July 15 price cut) 236 days
PS2 565 days
PS1 250 days
Xbox 181 days
Gamecube 176 days
Dreamcast 245 days
Xbox 360 600+ days (will be 600 come July 15th)

Numbers via Joystiq


Liars
By phattyboombatty on 7/6/2007 10:31:02 AM , Rating: 2
This morning, Sony is officially stating that it has no plans for any price cut of PS3. If a price cut does occur next week, Sony will clearly be shown to have lied today. This is consumer fraud and Sony should be held to the fire for it. The guy who relies on this statement and goes out and purchases a PS3 the day before a price cut would be understandably pissed off. I understand why companies don't want to announce price cuts in advance, because essentially no one would buy the console until the price cut occurred. But rather than outright lying to the public, why don't they just say "As an official policy Sony does not discuss future price cuts." That way they wouldn't give away anything and they also wouldn't have to lie.




RE: Liars
By Chaser on 7/6/2007 10:47:44 AM , Rating: 2
So Sony hasn't lied yet but they will be? Brilliant. I think I saw you at a gas station one day having a fit over price changes except they were going up.

Sony can change the price anytime they like. They do not need to announce it until its effective. And in the meantime you still don't have to buy one until it IS effective. Or stick with your Nintendo.


RE: Liars
By phattyboombatty on 7/6/2007 11:13:30 AM , Rating: 1
You're right that Sony can change the price at any time, and there's nothing wrong with that. My whole point was that they shouldn't lie about having no plans to lower the price of the PS3. You must have missed my comment about how it would be wise for Sony to just use a "no comment" approach. I'm pretty confident that there's a memo sitting on Sony executives' desks right now that describes their plan to lower the PS3 price including the exact dates that it will happen. If they don't want to reveal that fact, more power to them. But to explicitly state that it doesn't exist is wrong.

By the way, how many times have you ever heard any statements from oil companies that they have no plans to raise or lower the price of gas in the future? Never, because they're not that stupid. They just raise or lower the prices without any statements, and Sony would be wise to follow that approach.


RE: Liars
By mdogs444 on 7/6/2007 11:45:18 AM , Rating: 2
I do see where you are coming from - but by issuing a "no comment" statement, or even admitting that they are planning a price drop - that will halt sales until that date. So they are left with two choices: either cave in and drop prices right at that second, or dismiss any knowledge of the price and keep it as it until the scheduled drop and then make a public announcement.

I would say questionable ethics from a consumer standpoint. But from a business standpoint, they are taking the right path.


RE: Liars
By rockyct on 7/7/2007 6:42:04 AM , Rating: 1
Yes, of course. Let's all continue the Sony hate bandwagon. Although...Nintendo denied rumors of the DS lite two days before it was announced. Hmm...I guess we'll have to start up the anti-Nintendo bandwagon. It may take awhile though. No one's been on it recently.


RE: Liars
By Rage5469 on 7/8/2007 1:15:58 AM , Rating: 2
When they say no plans for the cut, this could mean,"...until July 15th."


tempting but not even close...
By hrah20 on 7/6/2007 3:08:09 PM , Rating: 2
its a step in the right direction, but far from affordable, 500 bucks still a lot of money, if we could grow money on trees, Maybe..

I'm waiting a little longer thank you !!!




RE: tempting but not even close...
By Belard on 7/6/2007 4:58:37 PM , Rating: 2
Back in the 90s, SNK released a console that sold mostly in Japan, it was over $600...

Here is what we had in the OLD days, when $1 got you more for your money.

1993~1994 ($100 back then is like $170 today)
3DO = $700 : It had a CD-ROM only. Played games only.
Amiga32 = $400 : Played ported Amiga Games. (512mb)
Sega SAT= $400 : (Saturn)CD-ROM only. Stupid MiB (RAM)
Sony PS = $300 : Games and Audio CD player.

1990 : SNK NeoGep = $650! It was cartridge-based with the Motorola 68000 CPU (16/32bit 12mhz) Ouch.

The PS3 at $500 is not bad... but still expensive.

Just think... todays Video cards are already more powerful. ;)


RE: tempting but not even close...
By Xavian on 7/7/2007 2:36:18 AM , Rating: 2
Why don't you list Nintendo's Systems?

Like the NES, SNES and N64? probably quite a bit lower then those you listed eh?


RE: tempting but not even close...
By Xavian on 7/7/2007 2:37:26 AM , Rating: 3
Oh and btw, all those you listed besides the PSX, flopped spectacularly. Right now, the PS3 is tracking BEHIND the saturn.


499 US DOLLARS...
By umeng2002 on 7/6/07, Rating: 0
RE: 499 US DOLLARS...
By wallijonn on 7/6/2007 12:40:27 PM , Rating: 2
quote:
I like Blu-ray over HDDVD because of the added disc space only, and this only helps Blu-ray's cause.


Huh? I'm wondering of Java+ is going to work on the PS3. Otherwise HD-DVD has the better feature set (PIP doesn't need to be hard coded into another version of the movie. So in effect BR has two different movies on one disc. Where's the space savings then?)


RE: 499 US DOLLARS...
By Master Kenobi (blog) on 7/6/2007 2:21:21 PM , Rating: 2
In theory it doesnt right now, but it should with a firmware/software update.


RE: 499 US DOLLARS...
By umeng2002 on 7/6/2007 9:27:59 PM , Rating: 2
I'd rather have better quality picture and sound than Java+ features.


RE: 499 US DOLLARS...
By Goty on 7/6/2007 11:10:48 PM , Rating: 2
So why not buy Blu-Ray?

=P


Finally!
By Legolias24 on 7/6/2007 9:06:41 AM , Rating: 2
Good on you Sony for finally bowing to consumer pressure. I know some people will say it's still not enough to justify buying the console, but to be fair, at least this price drop is finally happening. The only thing that sucks is that I bought my PS3 in April so I'm missing out on all these great promotions. Oh well, I still like my machine. :)




RE: Finally!
By therealnickdanger on 7/6/2007 9:21:24 AM , Rating: 2
I would be one such invdividual who believes it needs to go down another $100 (to $399) and also prove that it can carry exclusives worth having. I had a hard time paying $399 for my 360, but I have definitely gotten my money's worth and then some. 360 should go down to $299...


RE: Finally!
By Chaser on 7/6/2007 10:50:47 AM , Rating: 2
Lets just make it $100.00. Then they can under sell the Wii, PSP, etc.


I think Microsoft..
By Legionosh on 7/6/2007 9:37:10 AM , Rating: 4
..will be dropping their price VERY soon if Sony does indeed drop their price to $499. I don't think MS has the luxury to have the 360 Elite only $20 less than the PS3 (even for as little as a month), even if it DOES has the better game library.

I think the $499 price point is close enough that people will VERY seriously consider a PS3 if they were looking at buying an Elite, so MS will have to do SOME sort of price drop (and they should drop the price on the HD-DVD and wireless adapter while they're at it..the HD-DVD should be $150 and the Wi-fi adapter should be $50, bottom line).

I think a $200 core, $300 premium and a $400 Elite would do MS a LOT of good. The $200 core would be even less than a Wii (yes you would need to buy a 360 memory card, but even buying a 512 MB model puts it at the same price as a Wii, sans game of course). Heck, MS could throw in a 64MB card in the $200 core and probably still make a pretty good killing (as far as sales go, not profit).

To be able to play games like Gears of War, Blue Dragon, Mass Effect, Halo 3, Forza 2, BIOSHOCK (YES!!), Assassins Creed, etc for only $200 sounds like an opportunity that gamers would be hard pressed to pass up.

(for $200 I'd probably buy a second 360..that's just too cheap to pass up)

Yes I do own a PS3 (finally got it 2 weeks ago) and while it is a good console, it's basically being used as a PS2 since there's just not any games on it I MUST have (R:FoM is good, but I will wait to buy it until the price drops, and the same for Motorstorm).

Well that's MY thoughts (and opinion) on this topic. I welcome any comments (and if you're going to rate me down, at least have the decency to explain WHY).

Kevin

legionosg@msn.com




RE: I think Microsoft..
By BMFPitt on 7/6/2007 3:19:20 PM , Rating: 2
This is just the news I've been hoping for. I'm in the market for a 360 in the next month or so, because I'll be moving out (away from my roommate's 360.) If Microsoft decides to go with a same-day price drop (or even a bundle with an extra wireless controller for $400 or something) just to steal their thunder, it'll work out great for me.


Not So Fast!!!!
By deeznuts on 7/6/2007 1:19:49 PM , Rating: 2
http://money.cnn.com/2007/07/06/news/international...

Don't know if he's saying this to stop hemorrhaging of sales.




RE: Not So Fast!!!!
By phattyboombatty on 7/6/2007 1:38:10 PM , Rating: 2
Read the ninth paragraph of the story above. Your link is nothing new to this story.


RE: Not So Fast!!!!
By deeznuts on 7/6/2007 6:22:33 PM , Rating: 2
I provide a link to an actual article with actual quotes instead of a one line paraphrase. Your post brought nothing to this world. I.e. useless.


Uh huh
By Polynikes on 7/6/2007 9:27:46 AM , Rating: 2
It's still not affordable. At least not until Gran Turiso 58 and Metal Gear Solid 12 come out.




RE: Uh huh
By Goty on 7/6/2007 11:12:45 PM , Rating: 2
Get a job, then it will be.


Gutted Version?
By Slaimus on 7/6/2007 10:40:44 AM , Rating: 2
Are they going to release the European version that is gutted of PS2 compatibility hardware with the price cut? That seems like the only way they can do some cost saving to make up for the difference.




RE: Gutted Version?
By Nick5324 on 7/6/2007 10:53:02 AM , Rating: 2
I imagine that very soon all PS3's will ship without the EE chip, meaning PS2 games play via emulation. The other cost saver I could see for them is this: http://www.dailytech.com/article.aspx?newsid=7073&...


I may consider it now...
By Durrr on 7/6/2007 10:50:36 AM , Rating: 2
for playing HD content and as a media server. It would cost much more to get a HTPC with a HDCP video card, Blu-ray drive and decent hard drive w/ Wi-Fi. 600 bucks hurt the bank, but 500, its looking more attractive. If the price ever got to 399, I'd jump on that like there was no tomorrow.




RE: I may consider it now...
By Chaser on 7/6/2007 10:52:11 AM , Rating: 2
Don't hold your breath.


OH
By graydaze on 7/7/2007 5:55:39 PM , Rating: 2
I really doubt that a price cut is going to happen any time soon. Come on people this is just wishful thinking. Sony is not going to drop the price simply because people are whining about it. I do however believe the PS3 price should be lowered in other countries where they are paying relatively higher prices compared to the U.S. I hate when analyst claim that the BIGGEST limiting factor that the PS3 is not selling is its price tag. The reason PS3 sales are so sluggish right now is because most people haven’t found a good enough reason to go buy one YET. Just watch how sales will soar through the roof once Blu-ray becomes the clear cut victor in the HD format war and the software library of games and movies begins to grow.




RE: OH
By bgm063 on 7/8/2007 3:53:29 AM , Rating: 2
I don't know if I can fully agree with you on the issue of price. Yes.. non-US countries are deserving of a price drop. Even I'd be crazy to think otherwise, but in the US, price can make or break you along with all the other factors such as reliability, warranties, support, etc. I think it depends on how you look at the machine.

If we're looking at the PS3 as a gaming console, I'm sorry but you can't deny price as the biggest limiting factor. As long as a PS3 purchase has gaming as a reason to buy, consumers will continue to be pissed with the price. More than likely, the gamers are the ones wanting to be heard and asking for the price drop. (Not that I blame them)

As a Blu-ray player, it's one of the cheapest ways (if not the cheapest way) to get Blu-ray in the home. In that case, you have to look at how much folks are into High Definition content. I can't really speak on the HD format war because I haven't really done my homework or chose to do it, but in terms of gaming consoles, it's not very cool if, for example, a college student has to save up all that money to buy a PS3. Plus, look at how the PS3 puts a damper in that Christmas spending budget of the parents. The amount of money that Sony is asking for the PS3 might be rent or a mortgage payment depending on who you ask. That's just my point of view.


Rumble
By Devenish on 7/6/2007 9:15:10 AM , Rating: 2
I have to agree with most here that this is a step in the right direction, now I am on the fence waiting for rumble support and software that justifies the purchase.




PS3 Great Deal
By krazyxazn on 7/6/2007 11:19:05 AM , Rating: 2
5 FREE BLU-RAY MOVIES WITH A PURCHASE OF A BLU-RAY PLAYER (that includes PS3).

No clue if these games are PS3 exclusive, but it doesn't really matter to me. Going by Gamestop's release dates. They are usually up-to-date with them.

Stranglehold, Lair, G.R.A.W. 2, Dynasty Warriors Gundam (LMAO, DW fan and a fan of some Gundam), Warhawk, Coded Arms Assault, Heavenly Sword, and BlackSite: Area 51.

These are the games for the next 2 months. Didn't add any sports games cause I don't play them and got no clue what are good in those series so I just stayed out of their way.




needs a bigger price cut
By colonelclaw on 7/6/2007 12:17:57 PM , Rating: 2
well, if it's true it's a good start, but i'm not sure it will be enough. the key market sony needs to appeal to is the parents buying a birthday or christmas present. my gut feeling is they are still going to see it as far more expensive than the wii and go for that instead. parents don't care about features such as high-def, blu-ray etc, but they do care about cost




Great!
By Min Jia on 7/7/2007 3:59:27 AM , Rating: 2
Good news for the US people. I live in Hong Kong and bought my PS3 in March from a local Sonystyle store for $483.




By crystal clear on 7/7/2007 6:33:32 PM , Rating: 2
USD100 price is good for a start(Back to school season)+ another USD100 price cut for the Christmas buying season,that will be good for all incl Sony.

These price cuts are applicable in the USA, what about the rest of the world,dont they deserve the same price cuts like in the USA ?




LOL
By yacoub on 7/13/2007 8:28:02 AM , Rating: 2
Now the word is that the price drop is temporary. Yes, temporary. When those units sell out, the price goes back UP. And that'll be for the inferior 80GB version with software emulation. wtf Sony?




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