Print 55 comment(s) - last by Hemipower.. on Sep 25 at 5:07 AM

Sony's entry-level PS3 gets a price cut before launch

Console gamers in Japan were able to breathe a slight sigh of relief today when it was announced that Sony would trim the price of the basic 20GB PlayStation 3 console to 49,980 yen or $430 USD (down from $499 USD). The price cut is a direct response to the cries from the buying public over the high price of entry for the PS3 in comparison to its competitors. It was also announced that the base system would get HDMI output.

Even with the price reduction, the base PS3 is still priced well above its competition. It was announced two weeks ago that Microsoft would introduce the XBOX 360 Core System for the Japanese market at around $255 USD. Last Thursday, Nintendo announced a price tag of $212 USD for its Wii in Japan.

Sony's Ken Kutaragi remarked to reporters that "The Japanese users and media would not stop saying a price tag of over 60,000 yen, including tax, was too expensive." One must also remember that Kutaragi was also quoted as saying back in May that the $499/$599 price points were "probably too cheap."

It should be noted that while the price cut affects the 20GB PS3 model, there is no word on if the price will also fall on the higher spec'd PS3 with its 60GB hard drive, WiFi, and MemoryStick/SD/CompactFlash reader. There is also no word as to whether this price cut will extend to PS3s destined for US shores.

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Stick to your Guns
By swampwalk on 9/22/2006 2:12:17 AM , Rating: 2
It is definately unwise for Sony to engage in a price war before the system is even released.

Despite all of the PS3's problems over the course of the last year, the one thing that Sony has stuck with is that the PS3 = Quality. The idea that the PS3 offered superior technology justified it's higher price point and at least gave consumers the perception that this was the truth.

Cutting prices so close to launch undermines Sony's position. Given the shortage of units available at launch, good business would dictate a higher price point. It's a given that the units will sell out immediately regardless of price because of early adopters.

This move hurts Sony twofold; It increases the hit they take on each console sold, and sends out the message that the console might not be as superior as Sony claimed previously.

Also, why just price cut the budget systems?

RE: Stick to your Guns
By mushi799 on 9/22/2006 2:15:08 AM , Rating: 2
lol, sony gives a pricecut and some ppl will still criticize it. What can sony do for to please ppl nowadays?

"The price is too high", sony does a price then

its "undermines Sony's position", "good business would dictate a higher price point."

RE: Stick to your Guns
By swampwalk on 9/22/2006 2:34:22 AM , Rating: 2
It would be great if Sony took care of their investors.

You cut prices to entice people to purchase something they otherwise might not. All 100,000 units in Japan are going to sell out rather quickly regardless of price. Why would you want to make less money?

It would be a different story if more units were avaiable and they cut prices in the United States (where people are more prone to complain about the price) or Europe. But this is not the case.

Sony being profitable is important so a) They don't screw us over later on the price of games/accessories/online content to recoup the losses they take on the console. And b) so they can actually compete with the 360 in the US and Europe so that prices of all consoles and games become lower for the consumer.

RE: Stick to your Guns
By GhandiInstinct on 9/22/06, Rating: -1
RE: Stick to your Guns
By GhandiInstinct on 9/22/06, Rating: -1
RE: Stick to your Guns
By tuteja1986 on 9/22/2006 3:35:55 AM , Rating: 2
Actually i may actually buy the 20GB model , i couldn't care less about non intergrated wifi and it now has a HDMI slot. Now i just need my pal to camp out 1 whole day next the camera shop in japan that will have some PS3 :).

$430 + $40 shipping fee = better than $990AUD

RE: Stick to your Guns
By Strunf on 9/22/2006 6:45:48 AM , Rating: 2
"Speaking of ridiculously overpriced accessories, the Wii's controller will cost more than the games..."
Overpriced? the WII controller is far more sophisticated than any other controller and it will around 60$ heck even at that price I don’t think they make any profit with it... and some games will cost 60$ too.

RE: Stick to your Guns
By Vertigo101 on 9/22/2006 8:57:37 AM , Rating: 3
Don't kid yourself: It doesn't cost Nintendo $10 to make those controllers.

RE: Stick to your Guns
By Strunf on 9/22/2006 10:00:36 AM , Rating: 2
Doubt of it...

RE: Stick to your Guns
By tuteja1986 on 9/22/2006 10:20:12 AM , Rating: 2
I can tell you from an engineering point of view... that nintendo stands to make money on each console sold from day one. They will rake in money from the overpriced controller to the games. Imagine who many copies of Zelda will sell on virtual console and all they had to do was a make a emulator that will play these game. Nintendo isn't updating any virtual console games stuff like Microsoft made its partners add World Ranking , Online Competent , Updated graphic and sound before they could launch release it on Xbox live arcade.

Nintendo will make millions while Sony and Microsoft will loose millions. In fact the real winner is Nintendo and what i am predicting is that Nintendo Wii will be the most profitable console in gaming history.

In late 2004 to mid 2005 i thought Nintendo was in a ditch and was about to surffer the same fate as saga did.

RE: Stick to your Guns
By Strunf on 9/22/2006 2:51:31 PM , Rating: 2
Sure the goal of Nintendo is to make money but they will make it like everyone else in games, the console is already rather cheap, the controller isn’t that expensive at all when you take into account that for 60$ you have the nipchunk thing and a wireless remote, by comparison the WIRED Xbox 360 controller costs $40 and it has nothing new at all...

RE: Stick to your Guns
By Vertigo101 on 9/22/2006 3:40:55 PM , Rating: 1
You apparently don't understand that it costs MS next to nothing to make those controllers.

RE: Stick to your Guns
By rushfan2006 on 9/22/06, Rating: -1
RE: Stick to your Guns
By Fenixgoon on 9/22/2006 10:05:36 AM , Rating: 2
no company takes a loss on products? whatare you smoking?

all consoles are currently SOLD AT A LOSS. Sony, MS, and Nintendo (apparently they will profit from the Revolution) make money on accesories and games (due to licensing). Otherwise, the PS3 would cost A LOT more if Sony wanted to profit off of the initial sale of the PS3 console (same goes for MS and 360).

RE: Stick to your Guns
By StevoLincolnite on 9/22/2006 11:07:35 AM , Rating: 3
Allright, Nintendo has allways had the more "Advanced" Controllers so to speak. Or you could say the wierder looking ones. As for losses on consoles. Microsoft lost billions of dollars on their console. Yet broke even with the piece of the PIE that they sold through games. The PS2 lost money during its release. (They make money off it now though).
And the Nintendo Wii? Its using older/cheaper technology in comparison to the Xbox 360 and PS3, so they MAY make a loss on each console but it wouldnt be anything significant.
And the Wii Controller. Your paying for 2 controls for 60 bucks. And the PS2 control is allmost the same as the PS1 control. Guess what? they sold them at double the price for a long time there. Alot of people just used their controls from the PS1 on their PS2.
My Honest Opinion on the Console wars? This time, Nintendo will be on top, IF they can get some decent games. (They improved upon that to some extent on the game cube).
Microsoft will probably end up being the middle man once again. And Sony's exhorbant prices is going to ruin them just like sega. Even alot of game developers are bitching about sony. It seems everyone is bitching about sony! Oh well. Just my 2 cents.

RE: Stick to your Guns
By Strunf on 9/22/2006 10:15:09 AM , Rating: 2
Dude... first there's plenty of companies selling products at loss; secondly the building price is FAR from having the greatest share on the selling price (on this kind of market).

Don’t give a crap about the MS dude you have spoken with it's common knowledge MS and SONY and probably even Nintend didn’t get profits from the console's sale.

Even if costs $20-$25 to make what makes you think they will get ANY benefit by selling it at 60$ ?... Also 60$ is the price of the remote unit AND the nipchunck (?) thing.
Maybe they will get some benefit out of it but if they were selling the 2 units for 25$ like some of you seem to have wished sure as hell they wouldn’t have any profit.

RE: Stick to your Guns
By GhandiInstinct on 9/22/06, Rating: -1
RE: Stick to your Guns
By randomlinh on 9/22/2006 6:59:32 AM , Rating: 2
and... how much is the new ps3 controller? an xbox360 controller is $50.

not that I'm saying it's not expesnive, but it's not like the wii is a complete rip off (well, for now, we'll see how it plays on launch day).

And yeah, they should slash prices. They're already losing gobs of money anyway. It'll be an expensive lesson learned for them to fix for the next iteration. And if they try and recoup w/ jacking up costs for games... they'll just get even more backlash.

RE: Stick to your Guns
By djcameron on 9/22/2006 10:35:57 AM , Rating: 2
We the consumer have (stupidly) supported such price gouging. Take iPod accessories, for example... They charge 20 USD for a stupid rubber iPod cover, that costs 5 cents to make, and "we" gladly pay it.

RE: Stick to your Guns
By Armorize on 9/22/2006 4:31:10 AM , Rating: 2
that would be nice but its not gonna happen were still gonna pay 50-70 for games to make up for the differance, so one way or another americans are pretty much screwed and will have to shell out some major cash to get the console and games. I think the initial release into the us will get the high prices and when the next shipment comes in we might get a price cut.

RE: Stick to your Guns
By tophat on 9/22/2006 12:28:29 PM , Rating: 2
I agree that Sony is a bit premature in making the price cuts. I suspect that with the limited number of units available at launch, the units would still be able to command the $499 retail. The demand is still going to be there at launch and it, in my opinion, would only make sense to drop the price after the initial inventory (available units at launch) is depleted.

Either way, it is still good news for the consumers. Whether or not it would make much difference in market penetration is left to be said.

RE: Stick to your Guns
By Sunday Ironfoot on 9/22/2006 8:57:24 AM , Rating: 2
lol, sony gives a pricecut and some ppl will still criticize it. What can sony do for to please ppl nowadays?

He was just giving his opinion from a business point of few. I'm sure from a consumer perspective he's quite happy about the price cut, less money he needs to spend if he wants one after all.

RE: Stick to your Guns
By xsilver on 9/22/2006 8:57:37 AM , Rating: 2
Yes, I think that the price has gone in the wrong direction.
Because the initial units will sell so fast they should jack UP the price.. They can then reduce it when supply becomes more stable and the initial fanboi's have all bought there systems and need more of the general public to hop on

RE: Stick to your Guns
By leousb on 9/22/06, Rating: 0
RE: Stick to your Guns
By encryptkeeper on 9/22/2006 11:00:10 AM , Rating: 3
Sony really will lose big this generation if they only concentrate on things like graphics and having the 'best' technology. If you look at the cpu core speed numbers from the last generation (or the current generation rather) the PS2 clocked at under 300 MHz. But it was UNDOUBTEDLY the winner of the generation. Even with lots of customers complaining about dead PS2's they held on to be undisputed champion of the 2001-2006 game console era. Why? The huge library of incredible games. Most weren't successful because they looked good, (GTA 3 is a prime example) but they were just, well, good games. They have to balance good looking games and make them fun as well. If not they will fall into what happened to Sega, where the technology is ahead of it's time and ruins their focus on quality games.

The bad thing is, Sony's reputation for quality products has been seriously tarnished lately (PSP movies are a great example)

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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