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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RE: Stick to your Guns
By rushfan2006 on 9/22/2006 9:01:10 AM , Rating: -1
LOL...."you make me laff"....

Anyway...dude don't be one of those naive types that thinks companies don't make money on what they sell. Trust me that controller -- 99.9999999999% chance it costs no where CLOSE to $60 to make.

Newsflash company puts a product out to lose money. Even these consoles where folks say "yeah they took a bath on that console" at least price them to break even their costs and then they plan on the games making the profit.

Like a few years ago when people said "MS lost money on the xbox"....after speaking with someone who works MS...they broke even on their costs, the implication that they "lost" money meant they didn't GAIN any profit directly from the console's sale....(ie. its not like it cost them $400 to make the xbox and they sold it for $300.).... hunch is that "sophisticated" Wii controller that is sold for $60....cost Nintendo maybe $20-25 to make.

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
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
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