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Gadgets Sony Teeters on PlayStation 3 Price
Marcus Yam (Blog) - April 19, 2007 11:05 AM
Print E-mail del.icio.us 37 comment(s) - last by IWILLDROCKYOU.. on Apr 22 at 4:11 PM
Sony considers dropping the price on its console... not

The Financial Times reported early on Thursday that Sony is reconsidering its pricing strategy for the PlayStation 3 in an effort to speed up sales in Japan and the US.

The story quotes Sony president Ryoji Chubachi saying, “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.”

Shortly after Chubachi’s comments were recorded, news from Bloomberg quotes a Sony spokeswoman refuting the president’s words. “PS3 prices and shipment plans for the future should be determined by market trends and competition. Sony currently doesn't have any specific plan to cut the PlayStatio 3's price,” said company spokeswoman Mami Imada in Tokyo.

Chubachi’s comments were in reference to the relatively sluggish sales of the PlayStation 3 in the Japan and North American market, as Sony appears to be quite pleased with the console’s performance in Europe.

Although shares of Sony Corp. are up thanks to healthy sales of Bravia televisions, the once highly profitable SCEI is reporting disappointing financials in its division. With the PlayStation 3 hardware still being sold at a considerable loss even at its current price points, a change in pricing strategy appears to be financially difficult.

The very topic of price of Sony’s new console has appeared numerous times. In February, Sony senior VP Takao Yuhara said, “We may look at the price as part of our strategy to expand the market when the timing is right.” Later that month, Sony Worldwide boss Phil Harrison expressed that he feels “absolutely no pressure at all” to drop the PS3’s price.

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Drop the price and increase your user base
By psypher on 4/19/2007 12:39:36 PM , Rating: 2
If sony drops it's price on the 60GB version of the PS3 to say $450 and i can get it with absolutely no bundle package, i would buy it. I have never really liked xbox's for some reason (not fanboyism, something just doesn't feel right about them), so i have been holding out on getting a new system until PS3 prices drop. At this point i am considering buying a WII though. And if i do that, then i am not getting a PS3 as well... 3 gaming systems is enough... I already have 2 computers that fit the bill, so i won't buy 2 consoles.




RE: Drop the price and increase your user base
By kuyaglen on 4/19/2007 1:11:16 PM , Rating: 2
I'm thinking that it would be less a price drop but more of an add another controller and a full game package kinda deal.


RE: Drop the price and increase your user base
By vitul on 4/19/2007 2:30:07 PM , Rating: 3
I own a xbox360 and the only reason i ended up getting one was due to the price of the ps3.

The problem sony is going to have is people like me where they want a ps3 I loved the playstation and ps2 2 fav consoles. I didnt like the xbox whatsoever i bought it played it for a month and it collected dust for YEARS before i finally sold it on craigslist for 50bux.

The 360 i can honestly say has about 5 games really worth the 65bux I only own 3 games (gears of war, guitar hero 2, fight night round 3) there is a few other games ive played that were good but just not enough for me to pay the 65bux for.

Ok ok here is my point as much as i want a ps3 it seems most games for now and the next 6months mostly are coming out on both systems well i already own a xbox360 and if i keep buying games for it by the time i have 10 or so games why would i buy a ps3? Ive already got a solid game base for the 360 to enjoy and mostly i only play 1 console unless some revolutionary game comes out that i cannot live without.

If the ps3 doesnt drop its prices by fall i know i will probably never purchase one, and i know others who feel the same way.


RE: Drop the price and increase your user base
By mars777 on 4/19/2007 2:47:14 PM , Rating: 2
I can't understand this type of reasoning:

I can take a credit for buying a car that is 2000$ more pricy, but i can't spend 150$ more on a console :P

I'm sorry if this does not apply to you (maybe i am wrong) but this was reading between the sentences.


By AndreasM on 4/19/2007 5:40:59 PM , Rating: 3
Because a car has more utility, and I assume that the 2000$ increase would be worth it in terms of added value (otherwise it would be foolish to borrow money for that purpose). When someone says they can't spend 150$ more on a console, it doesn't mean that they are unable to procure said amount of cash, it means that they think paying 150$ more doesn't give them enough added value.


By BladeVenom on 4/19/2007 5:53:03 PM , Rating: 2
Maybe because most people aren't willing to take out a loan to buy a PS3. If they are maybe Sony should start setting up loan offices at PS3 retailers.


By herrdoktor330 on 4/19/2007 8:32:50 PM , Rating: 2
Here's my angle:

So you decide you're going to plunk down about $600 for a PS3. Wonderful. Now... what games are you going to play on it?

One? Two? Maybe a Next-Gen port?

That's my angle. There's nothing available for PS3 that's going to get people to buy. Once Halo 3 comes out, people are going to forget all about that Resistance: Fall of Man game. And I'm not trying to be a fanboy about it because I'm not even a console gamer. But I am one to know that you can't sell a console without a killer app. Intellevision was an awesome console back in the day... but it didn't play Pac-Man or Donkey Kong, so there was no exciting software that drove sales.

Honestly, Sony should have sat on their hands for another year and waited until they had a bombshell of revolutionary games to really get people excited to buy. Then you'd see these things flying off the shelves, along with some of the most mindblowing games you could imagine. But the reality of the situation is you have a weak collection of exclusives and ports that aren't programed to take advantage of the platform.

Anyway.. that's my 2 cents. I'm going to go play some PC DOS games now...


By theflux on 4/20/2007 1:29:50 PM , Rating: 2
The console just launched. The 360 was out for a year before Gears of War came out. I understand what you are trying to say, but good games take time.


There's gotta be something they can do
By BPB on 4/19/2007 12:39:00 PM , Rating: 2
Technically speaking it's a great product, and I'm very interested in getting one to use the blu-ray and cell processing. It's actually quite a lot for the money when you compare to MS' offering. But the gaming itself is better, at least for now, and in my opinion, on the 360. I don't see how they can go lower on price, but I also think they have to do something to spur sales. They've put themselves in quite the tight spot, haven't they? I hate to admit it being a PC gamer and Wii lover (and a happy Xbox user), but I would like to have a PS3, I really would. Especially since I plan on getting a very pricey HD projector. But for $600? No, not yet. Of course I'm also considering just picking up the MS HD DVD player. That might make me happy for a little while.




RE: There's gotta be something they can do
By Mitch101 on 4/19/2007 12:42:24 PM , Rating: 2
Make your own HD projector.

PART 1 of the $400.00 DIY HOME PROJECTOR (PARTS SELECTION) 720P version
http://www.freshscoop.com/modules.php?name=Reviews...

1080P version at around a grand.
http://www.lumenlab.com/forums/index.php?showtopic...


RE: There's gotta be something they can do
By BPB on 4/19/2007 1:16:25 PM , Rating: 2
Lemenlab stuff I've seen, but the other is new. Thanks!

Do you have experience with this? If so, what are your impresions? I was planning on spending $1,500 to $3,000 (after rebates) at Costco for an HD projector.


RE: There's gotta be something they can do
By Mitch101 on 4/19/2007 1:52:44 PM , Rating: 2
Its all about your budget.

If you can afford a high end projector then go with the high end. Its plug and play ready out of the box.

If your decent at making things and have the free time a DIY solution is a fun project and the output is surprisingly very good if you build it using the right components. (Lamp is critical) Its a great conversation piece as well. But because of the size your space might be a concern. Mine have generally gone in a basement behind a wall with only the opening for the lens.

As for light output who watches a projector with the lights on anyhow? We dont even watch TV with the lights on. Imagine if movie theaters left the lights on. Its decent but not desirable.

Gaming on 120" 10-feet from the screen beats any LCD/HDTV monitor config. Your dell 24" monitor its nice but its not life size. Make sure you stock up on motion sickness pills first. IMAX for gaming at home.

Im also in the process of redesigning a computer desk as I feel the asthetics of current desks really dont work.

Im also finishing a 4ft tall arcade cabinet I recently made for the kids. I needed to do something with the 19" monitor I couldnt sell and didnt want to put into a landfill.

If you have questions there is a forum area and I will be glad to answer them.


By Zoomer on 4/21/2007 5:09:33 PM , Rating: 2
I watch videos on my LCD screen with some soft light. I'd take that than seeing all that light leakage!

I miss my G520.


Chubachi replies:
By tk109 on 4/19/2007 12:43:30 PM , Rating: 5
When confronted with the question of a price drop Chubachi only had this to say: "rarrwarr warrr rarre"

Yodachi commented: "Difficult to tell the future of Playstation 3 it is. A price drop there will not be"




RE: Chubachi replies:
By sviola on 4/19/2007 2:18:34 PM , Rating: 1
Just lame.


RE: Chubachi replies:
By sadffffff on 4/19/2007 2:25:13 PM , Rating: 2
LOL! i was thinking the same thing!


RE: Chubachi replies:
By slunkius on 4/20/2007 1:26:03 AM , Rating: 2
got a crappy day start, but this post fixed it. really good one


Raise the price
By Plasmoid on 4/19/2007 1:33:26 PM , Rating: 1
Well lets see... Europe got a late launch and the highest prices (outside of Australia... which is closer to Europe then Japan, apparently)

Solution is obvious, raise the prices to be in line with European prices and take them off the market for 3 months and then flood the market with them... but take out the hardware ps1 chips.

Oh and put out lots of PR saying Americans and Japanese were getting it to cheap and they want it more expensive and other such announcements....

Worked in Europe...




RE: Raise the price
By mars777 on 4/19/2007 2:41:56 PM , Rating: 2
I'm from europe and i can explain why did it have a success in europe:

Generally speaking europeans are not much bashers, are less patriotic (microsoft is an US firm vs Sony Japan), and are buying the PS3 mainly because of it's media center capabilities.


RE: Raise the price
By Aikouka on 4/19/2007 3:33:26 PM , Rating: 3
But based on what I've seen, read and experienced, the XBOX 360 offers a better media center experience than the PS3 does (including 3rd party software running on PCs). Although, personally, I don't use my XBOX 360 for media center capabilities as I'd rather negate the hassle of fiddling with settings for soft-coded subtitles and things of that nature. I just use a PC.

But anyway, for me... not buying a PS3 has nothing to do with its price point. Not buying a PS3 has everything to do with me not being able to justify it from a games standpoint. Maybe if the Gundam game turned out to be decent, but reviews paint it to be much less than stellar... there's simply nothing great at the moment. I still would rather pay $500 for the 20GB edition, but unfortunately, Sony discontinued it.

From looking at gaming stores such as EB Games, the summer should probably help Sony a bit when it comes to PS3s sold.


RE: Raise the price
By BladeVenom on 4/19/2007 6:02:56 PM , Rating: 2
It's not a success in Europe. Just read about the big Sony launch event in Paris. They only sold 50 out of a 1,000, and had more police there than customers.


RE: Raise the price
By OrSin on 4/20/2007 10:33:46 AM , Rating: 2
I own the 360 and the media center on that is all I use. The game was good for long time but My Gf watches movies stream from my pc on it every day. I guess if you like buy blue ray disc sure its good. But i Burn dvd to my computer and store them thier. S0 300+ dvd collection is right at our finger tips. plus for the less honest of us the bit torrent are so readily avaible that I Al ammost stop HBO and shodtime and jsut down load the sieres I like from thier. Sorry but blue ray just dont cut it compare to the moedia center options Xbox has.


Teetering?
By retrospooty on 4/19/07, Rating: 0
RE: Teetering?
By michal1980 on 4/19/07, Rating: -1
RE: Teetering?
By Stablecannon on 4/19/2007 2:50:54 PM , Rating: 2
And the people who get mad about people bashing sony (you know who you are) are some of the biggest idiots I know of. I mean...Why? The PS3 is expensive and its too high for most people, so they complain, if the Xbox 360 was 600, I would complain too. But, guess what its not? $600.


RE: Teetering?
By BPB on 4/19/07, Rating: 0
RE: Teetering?
By BladeVenom on 4/19/2007 6:15:26 PM , Rating: 3
360 games are already high definition, and even look better than PS3 games. By the time anyone needs one they'll be $39. MS has said you never will, but once they're cheap, I'd bet they reconsider that.


RE: Teetering?
By namechamps on 4/19/2007 7:08:41 PM , Rating: 3
quote:
But the 360 IS $600 if you want an HD DVD drive. Something you may need down the road if 360 games ever support HD. Maybe all Sony needs to do is offer a non-blu-ray version. Of course blu-ray is THE reason I'm interestedand considering a PS3.


The xbox 360 will never require a HD DVD drive. The HD DVD is for movies only. Has been confirmed by Microsoft at least 10 times. If they decide to go to a higher cap disc (HD DVD, BD, HVD?) it will be in their next console and then likely the costs will be much cheaper.

BD offers nothing for gaming. Sony's only reason for making the BD drive as part of the PS3 was to win the "format war" for HD movies. Don't fool yourself that the BD discs make games better. Modern games are built using textures and they dont require double or triple the disc space when you increase the game resolution. As shaders become more important the need for more and higher quality textures will be greatly constrained. A bullet in a game rendered med quality texture and couple kb of shader code will look a magnitude better than a bullet rendered with ultra high resolution texture and no shaders.

DVD is a perfectly fine medium for games at least for the next 4-5 years. By then the "next" gen console will be out.


RE: Teetering?
By BPB on 4/19/2007 8:59:05 PM , Rating: 2
Thank you for making my point. When I said "Something you may need down the road if 360 games ever support HD", I meant games that were so big they couldn't fit on a standard or DL DVD. I think you may be right about bigger DVD's not being needed for 4 or 5 years to fit a single game (though I'd bet Sony proves you wrong), but I could see Sony releasing games on Blu-ray discs that would also include prior versions. Lord knows there are plenty of games that are on gen 5 or higher. Being able to release all on one DVD would be nice. Of course there's also the extras they can include, and video.


All but one-
By bldckstark on 4/19/2007 1:12:32 PM , Rating: 2
My 5 yr old twin boys get their Wii tonight for their birthday. We probably won't see them again for a month. Of course, I got it out early and played with it. Under the reasoning of set up and checking it out for problems to appease my wife.

So now we have a Super Nintendo, N64, Gamecube, DS Lite, 3 Gameboy SP's, one color Gameboy, a PS2, XBox, XBox 360 with HDD. Which do they play more? Gamecube.

No PS3 in sight for my family. We can't afford to pay $600 at on time for one system, then get 3 more controllers and games.




RE: All but one-
By Mitch101 on 4/19/2007 1:20:17 PM , Rating: 3
Interesting as my kids also have similar access and they prefer the X-Box with Super Monkey Ball.

I tell the wife all the time for X-mas we should have bought them cardboard boxes and bubble wrap.


RE: All but one-
By PrimarchLion on 4/19/2007 1:23:28 PM , Rating: 2
How do they make due with only one DS Lite, or is it yours and they don't know about it. If my twin cousins only had one DS Lite, well, it wouldn't be pretty.


RE: All but one-
By Scorpion on 4/19/2007 3:12:12 PM , Rating: 2
Holy crap. I sure hope your kids can make money when they are older by being so good at playing video games...


Normally I dont say positive things.
By Mitch101 on 4/19/2007 12:36:46 PM , Rating: 2
Normally I dont say positive things about sony because well Sony is the one starting it.

However if they drop the price of the PS3 I may consider getting the console but I would have to take a closer look at the coming game titles as I havent seen a must have game for the unit yet. Thats me like it or not.




By Timeless on 4/19/2007 3:28:47 PM , Rating: 2
Really now? I don't see any must have games for any consoles yet I still have all three. That's me, like it or not.


Can sony even lower the price.
By namechamps on 4/19/2007 7:00:52 PM , Rating: 2
Isn't Sony losing like $200+ per unit right now. Figure the royalties per game is something like $10 and the average consumer buys 6 games. Then figure junk like cables, controllers, accessories, etc net them another <$140 per console over it's life. They are lucky to break even over the life of the console. Drop the price $100 or $150 as some on this board have suggested and the console becomes a lifetime revenue loss. Sony isn't in the business to hand away shareholder's money.

I know ps3 cost will go down but the 360 and Wii will get price cuts in the fall. If Sony cuts prices now before their production costs go down they lose more money and then are unable to cut prices again in fall. Right now it's $600 vs $400 vs $250. By fall figure a $100 price drop from Microsoft and $50 price drop from Nintendo. So we are looking at $500 vs $300 vs $200. That's even with a price drop. If Sony drops now it will have less emotional impact then if they drop same time as it's competitors.

Correct me if I am wrong but I think Sony's game division will have a bad year in 2007 regardless and likely 2008 won't be that great either.




By IWILLDROCKYOU on 4/22/2007 4:11:37 PM , Rating: 2
I agree with you completely. I honestly think sony messed up with the PS3. They did a terrible job at looking for a target audience. The only people that buy the PS3 are people that have always bought playstations. Nintendo and XBOX looked to attract previous customers and new customers something that Sony didn't even consider. What Sony needs to do to lower the price is offer a PS3 without the the blu-ray disk. This would help them increase market share and their margins.


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