Print 58 comment(s) - last by bozilla.. on Mar 23 at 8:53 PM

Sony's 20GB PlayStation 3
Best Buy puts 20GB PS3 on the chopping block

A change is in sight when it comes to Sony's PlayStation 3 at Best Buy stores. Sony's PS3 currently comes in two flavors: the $599 USD 60GB version and the $499 USD 20GB version. Both consoles feature a Blu-ray optical drive, but the 60GB version adds 802.11b/g wireless networking and a MemoryStick/Secure Digital/CompactFlash reader for digital camera media.

According to internal Best Buy documents obtained by Joystiq, it looks as though the retailer is no longer going to stock Sony's 20GB PlayStation 3 console. The document lists the 20GB PS3's status as "discontinued."

The writing has been on the wall for the 20GB PS3 for quite some time now. It was revealed back in November that Sony is losing roughly $307 USD for every 20GB PS3 that it sells versus a smaller $241 USD hit for the more expensive 60GB version.

SCEA communications director Dave Karraker also told Joystiq last week that retailers have been overwhelming placing orders for the more expensive 60GB PS3. "Retailers have been requesting the 60GB model, the mix has been about 80 percent 60GB, 20 percent 20GB retailer orders. So, the reason you might not be seeing the 20 GB is simply that retailers have been ordering more of the 60 GB unit," said Karraker.

Sony still plans to make its 20GB PS3 available to retailers who want to sell it, but the number of retailers willing to stock the device may soon be dwindling. If that happens, the price disparity between the 60GB PS3 and the Xbox 360/Nintendo Wii will only grow further.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

How Much does BB make on each unit?
By DFranch on 3/18/2007 9:55:39 PM , Rating: 3
My guess is that Best Buy makes a larger profit on each 60gb unit than each 20gb unit. That is why they are ordering more. Sony is losing much more per unit on the 20gb model, So I'm guessing they charge Best Buy more making their profit lower. For instance if Best buy makes $30 for each 60gb model and $15 for the 20gb model, they will order more of the 60gb model.

By Aikouka on 3/19/2007 12:43:36 AM , Rating: 2
Exactly what I was thinking, Franch, the profit margin must be lower enough to warrant Best Buy to force any PS3-purchasing consumer to buy the 60GB model instead. You could also go on conspiracy theories and say that Sony's trying to do it... but I think I'd put my money on the profit margins =P.

"Folks that want porn can buy an Android phone." -- Steve Jobs

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki