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Sir Howard Stringer commends Nintendo on Wii's "cheaper" business model

The issue of the PlayStation 3’s price tag is one that refuses to go away, at least until it is on-par with a competing console.

Sony executives have had a couple different stances on the topic. In the western world, SCEA CEO Jack Tretton said that PS3 will be “difficult to cost reduce” due to its expensive components. Phil Harrison of Sony Computer Entertainment Worldwide Studios said that he was feeling “absolutely no pressure at all” to drop the price of the PlayStation 3.

In Japan, Sony Senior Vice President Takao Yuhara said the company may look at price as part of its strategy to “expand the market.” Sony president Ryoji Chubachi said in April that the company was “in the midst of revisiting our strategy for the PS3,” which he later reiterated again in another recorded statement during June.

Regardless of what the true near-future fate of the PS3’s price point, there is a clearly communicated sentiment from the Japanese side of the company that realizes a sensitive issue in the eyes of consumers.

The latest affirmation on Sony’s attention to the price of its latest console comes from the very top: Sir Howard Stringer, the chairman and CEO of Sony Corp. In an interview with the Financial Times, Stringer said of the PS3 price cuts, “That is what we are studying at the moment. That’s what we are trying to refine.”

While Stringer’s comments do not make any direct indication of a price drop, it signals that Sony is not blind to the views of its customers. Stringer also said he expected “energy [in PS3 sales] by Christmas, and then you will begin to see break-out games.”

Stringer also commended Nintendo on its successful business model, not only because of its controller, but because of its relatively affordable price point. “Nintendo Wii has been a successful enterprise, and a very good business model, compared with ours ... because it’s cheaper,” Mr. Stringer said.

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Price Drop
By mdogs444 on 6/15/2007 8:36:47 AM , Rating: 1
I know that the PS3 is on the bring on technology, more so than the standard 360 and Wii consoles. However, what Sony fails to see is a business model that is more profitable.

Sony tries to Price everything so high, that not many people can afford it, or are willing to cough up that kind of dough.

I think a better business model would be to price it low enough so that every household can afford to have one, then make big profit off of accessories, games, and Blue Ray dvd movies.

If you limit the consoles ability to get out into the average home, you are then limiting your profits from accessories sales.

I think that is why the Wii is a much better seller, same w/ the PS2 over christmas, as well as the 360 (although thats not exactly cheap either, but in comparison to the average person, $200 - $300 savings is a lot).




RE: Price Drop
By Proteusza on 6/15/2007 8:54:09 AM , Rating: 1
Right now I think the guys who designed the console's hardware are saying, "I told you so!" to the entertainment guys who saw the PS3 as the ideal platform to push Sony technologies like the Cell processor and Blu Ray disc (although the Cell arguably has more place in a PS3 than an expensive blu ray drive)


RE: Price Drop
By jpeyton on 6/15/2007 2:25:04 PM , Rating: 1
PS3 sales will lag significantly behind Wii/XBOX 360 sales through the end of 2007.

The sweet spot for a console is $199 (which Nintendo managed to come close to, considering they do bundle a game with the Wii). $299 will make people think twice, but one or two great games will push them over the edge. $399 caters to the upper-middle class market, with HDTVs, broadband and surround-sound; a sizable market (but it won't win the console race for you). $499 and up is not feasible for mass-market sales; it simply doesn't matter what the feature set is.

If Sony wants to be a player in this generation of console sales, it won't happen unless the price hits $399. If they want to lead this generation, it won't happen unless the price hits $299. I don't see them hitting those price points in 2007 or 2008.


RE: Price Drop
By InternetGeek on 6/16/2007 8:23:12 PM , Rating: 2
2-3 good games don't push me over to get it or not. If the console is too expensive I just don't buy it, given that I will get a bunch of games per year.


RE: Price Drop
By FITCamaro on 6/15/2007 8:59:57 AM , Rating: 2
In the end with buying my 360 Elite, I ended up spending over $700.

Thats for the Elite($480), an extra wireless controller($50), a play & charge kit($20), Gears of War($60), the remote ($20), Best Buy's PRP($70), and tax. Total is $742.

If I had gotten similiar things for the PS3, the total cost would have been around $1000. $600 for the console, $50 for a controller, $60 for a game, $30 for HDMI cable(comes with the Elite so I'm including it), $10 for play & charge cable, $25 for DVD remote, Best Buy's PRP $90-100 (im guessing since the premium 360 was $50, the elite was $70), and tax. Comes to $915-925.

So when its all said and done for the things I bought its close to a $200 difference in price between the two. For that I can get the HD-DVD drive and watch high-def movies too. Not that I plan too.


RE: Price Drop
By mdogs444 on 6/15/2007 9:03:16 AM , Rating: 1
Thats exactly my point.

Get the console into the homes of consumers for a little as possible, and reap the benefits of profits by selling games, controllers, headsets, HD optical drives, Live, etc.

If you build a great console that people will love and can easily afford, your chances of taking over market share & profit with after market accessories just went through the roof.


RE: Price Drop
By javiergf on 6/15/2007 11:00:19 AM , Rating: 1
Another point... on the 360 elite you bought GOW... what games would you have bought for the PS3? Is there any good game out there?


RE: Price Drop
By Faust0 on 6/15/07, Rating: 0
RE: Price Drop
By StevoLincolnite on 6/15/2007 11:55:32 AM , Rating: 1
Yes, but you do NOT have to buy those accessories, I have my Xbox 360 connected to my in-car entertainment system, the only addon I have paid for is a second controller, that is it.
And for some people its easier, buying those accessories piece by piece week by week, as they are on a low income.
Here the Xbox 360 is $620 bucks and the PS3 is $999, Wii is $400, you do the math.


RE: Price Drop
By Faust0 on 6/15/2007 4:16:20 PM , Rating: 1
I Agree, that is Sony's shortcoming that they force you to pay for these features whether you want them or not, I see this as a result of criticism from the PS2 whereas in that arena everything came separately while Microsoft touted and campaigned the Xbox's AIB design. Blatant role reversal.

I am not arguing that PS3 has the lowest initial upfront cost. I was showing that the two systems with the same feature sets are priced [u]similarly[/u], in my previous post, which FITCamaro failed to do by displaying bloated and manipulated numbers.
Bottom Line, the difference between PS3 and 360 is now effectively $120 retail, not some $300+ odd dollars posted previously.

I do agree with that Xbox 360 is an easier hit to take on the the wallet, but you will definately pay more later, either through hardware or Live subscriptions.

Here the Xbox(Elite) is $479, PS3 is $599, and the Wii is $249, don't question my math.


RE: Price Drop
By Legolias24 on 6/15/2007 11:28:56 AM , Rating: 3
FITCamaro: Why did you include the price of the play/charge cable for the PS3 controllers? It comes with the console. I understand you are doing an apples to apples price comparison with what you paid for the Elite but that is one item you didn't have to buy. And I know it was only $10 and won't change your total cost comparison that much, but you didn't include the price of the HDMI cable that came with the Elite, so why include the "play and charge" cable that comes with the PS3?

Also, to be completely accurate with an apples to apples comparison (even though you didn't buy it and you indicated you don't want it) you would have to factor in the price of the HD-DVD player for the Elite because the PS3 has the built in Blue-Ray player.

Bottom line, two different consoles going after two slightly different types of consumers. People who want choice will more than likely go with the 360 due to its (relatively) low cost of entry and then add on the things they want as they go. If you want a bundled solution without worrying about having to buy add-ons (controllers not withstanding) then people will look at the PS3 (or at least that's what Sony is/was hoping).

Either way, we all know the PS3 is pricey but I'm happy with my purchase and don't suffer from buyer's remorse one bit. Also, it would be nice to see Sony drop the price to drum up more interest and sales. :)

- Legolias


RE: Price Drop
By bkm32 on 6/15/2007 1:40:27 PM , Rating: 3
Nice objective post. We need more of that here on DT versus the insane fanboy rantings and flamebait taunts.


RE: Price Drop
By FITCamaro on 6/15/2007 2:06:55 PM , Rating: 1
1) I bought my 360 to play games and watch DVD movies with upconvert(requires the HDMI cable). I don't care about high def. Even if I bought a PS3 tomorrow, I wouldn't go out and buy any Blu-ray movies. So no, I didn't include the HD-DVD drive.

2) I honestly didn't know that the PS2 controllers come with the cable. I saw that companies were selling cables so I assumed you had to buy it. If you don't, thats fine. Take off the $10.


RE: Price Drop
By Faust0 on 6/15/2007 4:22:12 PM , Rating: 1
if you don't care about hi-def then why upconvert DVDs? Still a biased post.


RE: Price Drop
By Legolias24 on 6/15/2007 4:45:13 PM , Rating: 2
[Hmm...interesting, my above post got voted down...I'm not sure what to say really as this is the first time it's happened! Oh well, life goes on. :P]

Just out of curiosity FITCamaro, how have you found the upconverting on the Elite? I did a comparison between my regular DVD player and my PS3 (we have a 1080i TV) and noticed small differences. The movie Alien looked good (the picture was slightly sharper with a bit more detail), Top Gun...not so good...but that was really more the colour in the beginning of the movie being so damn intense! Although my dad admitted that the settings on the TV could've been the culprit (I never bothered with a re-test) :P


RE: Price Drop
By FITCamaro on 6/15/2007 7:14:53 PM , Rating: 2
Well I haven't compared the two side by side but I watched the Da Vinci Code on my 360 recently and to me it looked remarkably better than the last time I watched it on my old Xbox via component.


RE: Price Drop
By deeznuts on 6/15/2007 1:35:26 PM , Rating: 3
quote:
I ended up spending over $700 ... Thats for the Elite ... Total is $742.

If I had gotten similiar things for the PS3, the total cost would have been around $1000. ... Comes to $915-925
Holy Bias Batman. Total of $742, round down to "over $700." Total of $915-925, round up to "around $1,000."

You sir, win my Spinmeister award for today. If the total was $901 would you still have said $1,000? And wtf is a play and charge cable and why are you including it?

Oh, and if anyone needs wifi and battery packs (I'm not saying everyone does, I don't use wifi) then the price becomes more even, and you still have the BD drive if that interests you.

But, PS3 has no games right now lol. Summer should be better.


RE: Price Drop
By FITCamaro on 6/15/07, Rating: 0
RE: Price Drop
By animedude on 6/15/2007 3:10:31 PM , Rating: 4
Go back to kindergarten. You need to learn rounding.

So $42 you round down, and $15-$25 you round up. You must work for the marketing department of impaired math center.


RE: Price Drop
By deeznuts on 6/15/2007 1:35:26 PM , Rating: 1
quote:
I ended up spending over $700 ... Thats for the Elite ... Total is $742.

If I had gotten similiar things for the PS3, the total cost would have been around $1000. ... Comes to $915-925
Holy Bias Batman. Total of $742, round down to "over $700." Total of $915-925, round up to "around $1,000."

You sir, win my Spinmeister award for today. If the total was $901 would you still have said $1,000? And wtf is a play and charge cable and why are you including it?

Oh, and if anyone needs wifi and battery packs (I'm not saying everyone does, I don't use wifi) then the price becomes more even, and you still have the BD drive if that interests you.

But, PS3 has no games right now lol. Summer should be better.


RE: Price Drop
By InsaneGain on 6/15/2007 2:29:23 PM , Rating: 2
But with the PS3 you are getting a HD movie player that the 360 does not come with. So if you want a HD player, you are spending more but you are getting more with the PS3.


RE: Price Drop
By Auriacan on 6/20/2007 3:43:57 PM , Rating: 2
Your forgetting the Xbox Live membership. That's another $50 a year? PSN is free.


RE: Price Drop
By michal1980 on 6/15/2007 9:15:17 AM , Rating: 1
1st. the ps3 should drop in price.

2nd, Sony is not bottom of the barrel everyone should be able to buy our stuff kind of company.
Sony spends alot of money on R&D (if its money well spent is a different argument). And ussually pushes new and different techs (value of both, debatable).
But in general sony makes higher end mass consumer devices, and on the tv side, generally high-end devices. Theres a priemum price you pay for that.

compaines like vizo/westinghouse, do very little engineering, there lcd panels are generally 1to2 generations behind compaines like sony. and therefor they can be cheaper.

So to say sony should sell volume, is not what sony is. Its not the dollar store.


RE: Price Drop
By mdogs444 on 6/15/2007 9:21:50 AM , Rating: 3
No one claimed it to be bottom of the barrel or a dollar store company. We all know that sony sells items as a premium - even though most are not better than the next one in line. You pay for the name, bottom line.

However, my point is that the xbox & wii are not bottom of the barrel either - but their sales and marketing schemes are what is driving consumers to them.

With the emergence of dell, and the success of HP, most family are onlys pending $600 - $700 on a home computer. Why would that same family spend the same amount on a video game console?


RE: Price Drop
By colonelclaw on 6/15/2007 11:01:03 AM , Rating: 1
so true - MS and Sony have seem to completely lost sight of the fact that what they sell are JUST games consoles, not PCs. yeah so you can do more with them than just play games, but for all the multimedia waffle MS and Sony speak, the vast majority of people buy them for gaming

for me the reason why i'm gonna buy a Wii isn't because it's cheap, it's because for me it's priced at a sensible level for a games machine

my hint to the new sony boss: drop the price by at least 200 dollars and people may start to buy it


RE: Price Drop
By Tmansport on 6/15/2007 1:36:46 PM , Rating: 2
It's not as simple as "Just drop the price $200". Do you know how many games and accessories you'd have to sell to make up a $200 loss. It's not like Sony makes $60 off every game sold, especially if the game is on a BluRay disk. If I recall, the PS3 already has a fairly low attachment rate, lower than then 360 and Wii. Sony needs to focus on lowering the cost of producing the PS3 first, and that should come fairly soon with drops in the price of BluRay components and the switch to 65nm cell. Better games would also go a long way in selling a gaming console


RE: Price Drop
By colonelclaw on 6/18/2007 11:34:26 AM , Rating: 2
i agree with everything you say, but as far as the consumer on the high street is concerned i think you really do have to drop the price $200.
when parents go out to buy a console for for their kid's birthday christmas or whatever, not only do they not know about any of the cost points of producing the console, bluray, games etc, but they don't care. they just want to buy a games console for a reasonable price. when they see a ps3 which costs more than a cheap laptop they just aint gonna buy it, and that's when they see the price of the Wii. we'll take one of those please...

sony need to take the pain now, and drop the price massively or before too long there wont be an installed userbase for the games companies to bother developing for


RE: Price Drop
By BladeVenom on 6/15/2007 9:44:29 AM , Rating: 1
The reason Sony has top quality LCD panels isn't because of Sony's R&D and engineering. It's because of a joint venture with top quality panel maker Samsung. http://en.wikipedia.org/wiki/S-LCD


RE: Price Drop
By FITCamaro on 6/15/2007 10:34:00 AM , Rating: 2
Yes but other manufacturers also use Samsung's Panels. And then theres Samsung themselves. And you can typically get the a TV from a different manufacturer thats as good (or better) than the Sony for less than the cost of a Sony.


RE: Price Drop
By EclipsedAurora on 6/15/2007 11:36:41 AM , Rating: 2
Yes. But u miss out something. S-LCD combines technology from Sony, and cheap Korean manufacturering power from Samsung.


RE: Price Drop
By KristopherKubicki (blog) on 6/15/2007 12:34:23 PM , Rating: 2
I'm not really sure if Sony is providing anything other than capital. To be honest, its all LPL's technology anyway -- it's just that it takes 3-4 billion to build one of these substrate facilities these days.


RE: Price Drop
By Andrwken on 6/15/2007 5:05:58 PM , Rating: 2
quote:
2nd, Sony is not bottom of the barrel everyone should be able to buy our stuff kind of company.


With the quality of their audio equipment, bad luck I've had with some of their trinitrons(never got more than 5 years out of either one i bought), and the fact that the first two playstations were field tested by the consumer to fix all the problems, I would say they are walking the tightrope in a lot of people's eyes on what kind of company they really are.


RE: Price Drop
By techfuzz on 6/15/2007 10:11:42 AM , Rating: 2
quote:
I think a better business model would be to price it low enough so that every household can afford to have one, then make big profit off of accessories, games, and Blue Ray dvd movies.

Sony has always been about marketing to the middle-class consumer, but at the mid to upper end of the scale. They've determined through their business model that this is exactly where they can make the most money. Unless their recent downturn in profits continues and their market shares erode considerably, I wouldn't expect any change in their business models to change anytime soon.


RE: Price Drop
By mles1551 on 6/15/2007 1:03:59 PM , Rating: 2
Someone needs to point out that the Wii is targeted towards small children and non-traditional gamers, thus it shouldn't be compared to neither the XBox360 nor PS3. Why would you compare the business model for the Scion to the business model for the 328i or an RS8

If Microsoft could fix their quality issues, Sony would be doing a lot more than just talking about price drops. The 3 rings of death is the only con to buying a 360 right now. And yes the warranty will cover it but who wants to waste their time taking them back or mailing them in?


RE: Price Drop
By mdogs444 on 6/15/2007 1:20:16 PM , Rating: 1
Whether the age group of the audience is the same or different, has no bearing on the fact that each console maker is looking for majority market share. Sony is last in market share, not due to having an inferior product, but due to people A)not being able to afford it and B)not wanted to shell out close to a grand for a game systems, some games, and a controller so your kid doesnt always have to play by himself

One reason they are talking price drop is the fact that sales are not where they predicted due to the consumers purchasing the Wii's & Xbox 360's due to a lower price point.

Sony predicted that the Blue Ray addition of the PS3 would grab the attention of not only video gamers, but home multi media enthusiasts. Unfortunately, the price tag didn't warrant the demand for the product.

If Blue Ray captured the market over HD-DVD for sure, and most people has High Definition LCD/Plasma tv's in their homes, I think sales would have increased drastically. But telling people they'll have to spend $600+ on a system that A)plays games just like the $300/400 Xbox and your home PC does, and B)warrants you a Blue Ray DVD player that may or may not amount to anything in the future (see Betamax, Minidisc, etc).

One problem with that is that the average person will see HD-DVD players being made by multiple electronics companies whos names they know - while the only Blue Ray player they see is made by Sony - who adds a large premium to the cost.

Consumers will be the judge, and how much $ they have to fork over will be the factor.


RE: Price Drop
By Legolias24 on 6/15/2007 1:43:18 PM , Rating: 3
While I agre with much of your post, this last part:

quote:
One problem with that is that the average person will see HD-DVD players being made by multiple electronics companies whos names they know - while the only Blue Ray player they see is made by Sony - who adds a large premium to the cost.


I don't totally agree with as there are more people than just Sony manufacturing BR players. If someone goes looking for a BR player, they will see Sony, but they will also see other vendors like Samsung, Phillips and LG (I think) to name a few!

- Legolias


RE: Price Drop
By mdogs444 on 6/15/2007 2:10:27 PM , Rating: 2
You are probably right. For some reason, i was thinking that most of the vendors were making HDDVD, while Samsung & Sony were making BD. Good catch.


RE: Price Drop
By mdogs444 on 6/15/2007 2:10:27 PM , Rating: 2
You are probably right. For some reason, i was thinking that most of the vendors were making HDDVD, while Samsung & Sony were making BD. Good catch.


RE: Price Drop
By jadedeath on 6/16/2007 12:52:32 AM , Rating: 2
actually only Toshiba is making HD right now, because they {like Sony} are undercutting themselves on the price in order to get more market penetration.

It's sorta working and it's sorta not. More players out there, but less disks sold overall compared to Blu-Ray.

Logan


RE: Price Drop
By wallijonn on 6/18/2007 12:40:50 PM , Rating: 2
Yes, but I see HD-DVD selling for $5 less than BR, $24.95 vs $29.99.

Now, you could say that anyone who gets into HD can afford $25 or $30 for a movie, but people are now used to paying $14.95 to $19.99 for a movie, so is the extra $10 worth it? Answer: Probably yes. But most are likely to be re-buying older films already in their library.

As far as the Ps2 vs Wii vs 360 vs PS3, PS2 games are going for $29.99 to $49.99, most Wii games are $49.99 and 360/PS3 games are going for $59.99. People notice that they can buy a game for $10 less for the Wii.


RE: Price Drop
By SigmaHyperion on 6/15/2007 2:03:39 PM , Rating: 3
quote:
Someone needs to point out that the Wii is targeted towards small children and non-traditional gamers, thus it shouldn't be compared to neither the XBox360 nor PS3. Why would you compare the business model for the Scion to the business model for the 328i or an RS8


Well... Sorta.

Your argument is based on the fact that not only are there two different levels of product but there are two different levels of consumer -- that a person buying a tC wouldn't be considering an RS8 (or vice versa).

For that to be true a person buying a Wii would have to not be a person that would buy a PS3 -- a different market segment. The question is -- is that really true?

And I'm not really sure if anyone knows the true answer to that question. We do know that a lot more than just "small children and non-traditional gamers" are buying a Wii. So, while it may be true that it's targetted to them, a lot of buyers are in that prime 20-30 traditional gamer market.

The question then becomes -- are people who buy the Wii not buying a PS3 because of it? Wii sales are certainly high and PS3 sales are certainly lackluster, so the sales numbers alone point to that. But that can be misleading. Just because a lot of people are buying a Wii doesn't mean those people would have bought a PS3 in the first place.
But sales numbers are still low and there's got to be a reason.
Is it price? Maybe. But maybe that really isn't the stumbling block that many seem to think it is. Sony drops the price $100, goes back to losing more money on every console than it is likely to ever make back just to get marketshare, but it turns out not really stimuating sales. Well that would certainly suck really bad for them. And there's certainly an argument to be made that does $100 really make that big of a difference on a $600 item where games cost $60 each, accessories about the same, and the competition is ~$200 cheaper. $100 off the top decimates profit potential, but will it really make a big difference in the market?

Is it game selection? Maybe. Maybe people are buying the Wii just to hold them over with some new games until the PS3 brings to market something really interesting to them. If that's the case lowering the price could be extraordinarily detrimental.

Is it features? Who knows. Maybe people really do just want something new and different rather than the same thing prettied up. Maybe that's what they need to focus on (hence their little online virtual life strategy) rather than price.

There's a million different things that it could be other than price that I'm sure a lot of people at Sony are going over. And certainly to some buyers its' one of those over another. The question is which is the one most likely to gain you the most buyers at the lowest cost to the company overall. $100 loss right off the top is huge. You don't make that kind of sacrifice easily because you're highly unlikely to ever make enough money off that buyer to break even on your hardware loss. You can do that on the early adopters who will eventually make up a tiny portion of your sales, but to continue that sort of loss 2 or 3 years into your launch is virtually impossible to do.


RE: Price Drop
By Locutus465 on 6/15/2007 2:04:27 PM , Rating: 2
And someone else should point out that many traditional gamers like me are buying Wii's before X-Boxes and PS3's (I wouldn't buy a PS3 but I'm sure some would) due largely to cost. Also, while Wii is designed to appeal to a broader audience than just traditional gamers, they haven't forgotten about us. Zelda is rocking, RE4 will be ported, Rayman raving rabids is a blast, and even games like Wii Sports are fun.


RE: Price Drop
By livelouddiefast on 6/16/2007 11:36:46 AM , Rating: 2
Sony is almost never associated with frugality. They built a name for themselves in the world of electronics, and to this day they make almost no bottom end equipment. Sony is partially about exclusivity and that's a lot of the reason for the popularity as well as hate toward the company.

Think of sony to electronics as just as showy, but same build as those fancy dior and prada handbags my wife always wants me to get her....


RE: Price Drop
By spluurfg on 6/17/2007 7:21:41 PM , Rating: 2
Honestly, I wonder why he was voted down. It was a pretty reasonable post, and he's correct in identifying the fact that console makers make losses on hardware and recuperate on accessories and games. The more consoles they sell, the greater their revenue base.

I agree with him in that I think that Sony overestimated the extent to which the consumers were willing to pay for the PS3. Perhaps many consumers don't recognize some of the value of it, especially the essentially subsidized Blu-Ray drive, but either way it seems that the other players are making gains from their price points.


Just curious...
By allnighter on 6/15/2007 9:36:38 AM , Rating: 1
... how many of you folks would actually buy one if they dropped the price by $100-150?
Anyobdy? Or did you simply jump on another opportunity for some good ol' "Bash the PS3" party.




RE: Just curious...
By peter7921 on 6/15/2007 9:56:28 AM , Rating: 1
I would.

But i want to buy it as a Blue-Ray player not for games yet.


RE: Just curious...
By noirsoft on 6/15/2007 10:29:44 AM , Rating: 2
I bought my PS3 because of a $100 trade-in offer from EB games on my PS2, so the answer to your question is yes, if only indirectly.


RE: Just curious...
By FITCamaro on 6/15/2007 2:16:51 PM , Rating: 2
You know I saw that. Will they accept older PS2s, not the slim ones? I still have an original PS2 with hard drive and network adapter (I used it to play FFXI). Don't use it anymore really but hey.


RE: Just curious...
By crystal clear on 6/15/2007 10:35:37 AM , Rating: 2
I did buy USD 600 !

For non gaming purposes-right now for experimenting !

"Yellow Dog Linux v5.0 utilizes the IBM 64-bit 3.2 GHz Cell processor to provide a powerful state of the art Linux server for Sony PLAYSTATION¨3."


RE: Just curious...
By psypher on 6/15/2007 10:36:41 AM , Rating: 2
at $150 cheaper, i think the ps3 has a lot of value. I would probably pick one up within a few weeks of the price drop.


RE: Just curious...
By NotAok on 6/15/2007 10:54:32 AM , Rating: 2
I don't see a price drop changing much actually. Like I know I'll get one eventually but the price isn't the thing holding me back right now, it's the software. If the PS3 had amazing titles out right now I would have one.


RE: Just curious...
By techfuzz on 6/15/2007 12:39:22 PM , Rating: 2
I there were some games that would interest me, I might be *more* likely to buy one after a $100-$150 price drop. I still don't think I'd jump on it immediately after the drop though.


RE: Just curious...
By darkpaw on 6/15/2007 12:44:06 PM , Rating: 2
I'd buy one next month if the price dropped $100. I was strongly considering getting the $500 version before they eliminated it.


RE: Just curious...
By Legolias24 on 6/15/2007 12:48:11 PM , Rating: 2
I bought mine for $660+Tax (CDN). EB games was selling it for that much, but Best Buy had R:FoM on the shelves as well as a few other accessories that I wanted so I got BB to price match! :P (BB had the console listed at $699)


First rectufy the refine
By crystal clear on 6/15/2007 9:15:59 AM , Rating: 2
quote:
“That is what we are studying at the moment. That’s what we are trying to refine.”


He should rectify rather than refine .

He should DEFINE a Uniform Pricing Policy-Just anybody in any part of the world should pay the same price.
If the price is USD 600 then all should pay its equivalent in their respective currency.
Clearly stating USD600+local taxes/duties(if applicable).
Why should buyers in the E.U. pay more?
Convert USD 600 to EURO & compare the prices(PS3) in the EU,then you will agree on what I say.
The same applies to prices in YEN to EURO.

All should get the same standardized product components in the PS3,No country should get more whilst others get less.
Example-Korean market(hard disks)

Anyway he has till Christmas to Rectify & Define & then Refine his stratergy.




RE: First rectufy the refine
By crystal clear on 6/15/2007 9:20:26 AM , Rating: 2
sorry typing error-title should read -Sorry

FIRST RECTIFY THEN REFINE.


RE: First rectufy the refine
By bldckstark on 6/15/2007 12:25:50 PM , Rating: 2
As soon as the entire world has one standard for electrical appliances, one set of import and export laws, and one video input standard, then I am sure there will be equivalent pricing. In other words, it will never happen.

Look at it this way, I am sure that you, just like me, were brainwashed at an early age to believe that you live in the greatest country in the world (wherever that may be), so you are just paying extra to get the goods delivered to you. You don't mind paying a premium because (insert country {or continent} name here) is the best.


RE: First rectufy the refine
By crystal clear on 6/16/2007 4:37:44 AM , Rating: 2
I forgot to quote an example such as Intel & Amd-both have uniform or standarized pricing poilcy.

Their prices are in USD for OEMs & another for retail-wherever you may be you, pay the SAME price "applicable".
Yes there are small fluctuations in price between this retailer and that.
But the official price of Intel remain the same.


RE: First rectufy the refine
By crystal clear on 6/16/2007 9:58:07 AM , Rating: 2
Read carefully what I wrote-

Clearly stating USD600+local taxes/duties(if applicable).

You reasoning is incorrect.Its now a free market!

If PS3 can sell for USD 600 in N.Y. then why not the same in London/Paris/etc.

Its the same product produced/assembled in the same factory-somewhere in China or Taiwan.

The COSTING IS THE SAME wherever the product is shipped !

Just add on local taxes & duties thats all.

Read this very carefully-

Brits pay 73% more for a PS3 than Hong Kong buyers do
http://www.reghardware.co.uk/2007/03/30/ps3_price_...


RE: First rectufy the refine
By crystal clear on 6/16/2007 10:15:46 AM , Rating: 2
Plus they Cheat you you by REMOVING

"the PS3's Emotion Engine chip"

They give you a Software FIX instead-

"The backwards compatibility is not going to be as good as the U.S. and Japan models," a Sony spokesman said.

http://www.reghardware.co.uk/2007/02/23/reduced_ba...


what a maroon!
By yacoub on 6/15/2007 8:31:48 AM , Rating: 5
"Study" and "refine" it down about a hundred to two hundred dollars; anyone could have told you that without needing deep thought.

If you produced a product that costs too much to sell it affordably that's your mistake.




RE: what a maroon!
By sdsdv10 on 6/15/2007 8:47:23 AM , Rating: 2
I haven't heard (or read) someone being called a "maroon" since I watched Bugs Bunny cartoons when I was a kid back in the 70's. Classic! ;-)


RE: what a maroon!
By FITCamaro on 6/15/2007 9:01:44 AM , Rating: 2
Whats wrong with you? I still watch Bugs Bunny cartoons today sometimes. ;)

P.S. - I'm 24. My mom is 55 and she still does too.


RE: what a maroon!
By NotAok on 6/15/2007 9:25:05 AM , Rating: 2
god, I'm trying so hard not to laugh right now (im at work) but the thought of calling someone a maroon makes me want to burst out... I can't wait to start calling people this again, this is amazing.

Thank you kind sir


$600 is not that bad
By elmikethemike on 6/15/2007 3:34:45 PM , Rating: 2
Am I the only one that bought a PS3 for the entertainment center value and NOT specifically for games??

For $600 you get one heck of a lot. I for one wanted Blu-Ray. It's one of the best and least expensive players on the market. I also wanted HD-DVD with my 360.

The cost for me for each console was about the same, but you don't see my complaining about it. Why? Oh yeah, because I don't rely on mommy and daddy to buy me things. I have a job. Yay for me. Boo hoo for you.

You don't like the price? Then don't buy it, get a 360 instead. Quit whining about it like little girls.




RE: $600 is not that bad
By mdogs444 on 6/15/2007 3:44:07 PM , Rating: 2
You fail to realize what the point behind the initial posts are -

To talk about why Sony is talking about price drops -> because they have the lowest market share of the console wars. They are too expensive for the average consumer to purchase. Has nothing to do with how much it comes with - you can throw in a hat, fleece jacket, and pair of running shoes for all i care - but the point is that a $600 price point before games is too high for most people.

Sure it has Blue Ray, Wireless, a Hard Drive, etc....but the fact is people want to see the low price point. Selling these at $300, making the hard drives, wireless, etc as accessories would increase the sales of the consoles themselves. If more people have consoles, then more people will buy games & accessories.


RE: $600 is not that bad
By colonelclaw on 6/18/2007 11:43:36 AM , Rating: 2
that's exactly the reason why it isnt selling - because people like yourself are so few and far between. most people just want a games machine and not an 'entertainment centre'

sony misjudged the market catastrophically, nintendo got it bang on


RE: $600 is not that bad
By wallijonn on 6/20/2007 12:45:06 PM , Rating: 2
quote:
For $600 you get one heck of a lot. I for one wanted Blu-Ray. It's one of the best and least expensive players on the market.


And now that Sony has come out with a $500 BR player there is even less reason to buy a PS3. The new unit even comes with a "free" remote. I wonder if it'll also include a free HDMI cable, one that doesn't cost $100. hmmmm.


.
By h0kiez on 6/15/2007 8:32:44 AM , Rating: 4
"Stringer also said he expected “energy [in PS3 sales] by Christmas, and then you will begin to see break-out games."

Wrong order chief. First come the break-out games, then the "energy".




Funny quote:
By peritusONE on 6/15/2007 12:54:04 PM , Rating: 2
From the article:
quote:
Stringer also said he expected “energy [in PS3 sales] by Christmas, and then you will begin to see break-out games.”

It's almost as if he is saying that once everyone starts buying their system, then break-out games will come. Not vice-versa. If you want me to buy your system, you need the games first.




RE: Funny quote:
By Locutus465 on 6/15/2007 2:24:36 PM , Rating: 2
There actually is a certain logic to what he says... I.e. what game company is going to waste time and money developing for a platform that only a very small percentage of the market actually owns?


Sony Should have WAITED!!
By Ravenlore on 6/15/2007 2:17:28 PM , Rating: 2
The hurry to launch the PS3 was the main problem with the PS3. Looking at the PS2 it is STILL out SELLING BOTH PS3 and Xbox 360. That time should have been used to

1. lower the cost of PS3 as componets for Blueray come down. cost for Cell and other compoets become made more.

2. Kits could have been in hands of developers longer to make games. Thus, launch games would have looked better and developers could more easily have better understanding prior to the launch,

3. Better tools could have been made prior to the launch and after the launch.

4. All the system updates would be there at launch and not later.

5. Add some extra memory or work on better overall ability of PS3 to differentiate it from the Xbox, Xbox360 and PS2 (games) as last gen games play the same as this gen games!!

AS for now lower the price, work on getting exclusives, work on better tools for developers to use. And make A SINGLE game that uses more of the consoles power.




By RunLikeHell on 6/15/2007 9:55:31 PM , Rating: 2
agreed


The BIGGEST Problem Next Gen faces
By Ravenlore on 6/15/2007 2:31:52 PM , Rating: 2
Facts I like them. Neither PS3 nor Xbox 360 is selling as well as PS2 did in its first year. Or second year for Xbox360. And Xbox360 did not even sell as well as Xbox did for months.

Both consoles face a hard future. The REASON. The games are virtually the SAME as LAST GEN!!!! SURE the GRAPHICS are BETTER now!! BUT the GAMEPLAY is basicly the same. I am sure you could have the buttons set up so it plays the same. the actions are the same.

can anyone name one game either now or anounced that can not connected to a game from last gen?? IS there one game that does not have a "been there done that" feeling???

Sure there are a lot of games last gen ther were all the same, but you just had to pay for the game and NOT $400.00-$600.00 DOLLARS for a new console to play the same kinds of games.




By Tmansport on 6/15/2007 6:19:58 PM , Rating: 2
While the gameplay elements might be similar, I disagree that there is been no progression in gameplay. first, look at all the non-linear sandbox type games that have come out or are going to come out on PS3/Xbox 360. Crackdown is a game that comes to mind. Medal of Honor Airborne is another game that looks sweet in that regard. Second, online integration has been a huge progression from last gen. Again, look at Crackdown and GOW with online cooperative modes. Forza 2 with its vast customization has taken online even further than just "playing" the games. We all know how big Halo 3 online will be.

To be honest, I don't know if the Wii is selling so well because of the motion controls or simply because it is so much cheaper. Mine has been collecting dust for weeks. To me, the games are extremely shallow and since there is no online yet, the Wii is really only fun when you have a couple of friends over. Just my $.02


Price Drop
By DotComEddie on 6/15/2007 2:47:17 PM , Rating: 2
quote:
Another point... on the 360 elite you bought GOW... what games would you have bought for the PS3? Is there any good game out there?


As an owner of both the X360 and PS3, Insomniac's Resistance: Fall of Man is still my favorite and ONLY game on the PS3. Fully featured multiplayer with support up to 40 players is worth the purchase alone!

DCE




RE: Price Drop
By Legolias24 on 6/15/2007 4:53:19 PM , Rating: 2
Yeah, Resitance: Fall of Man is a good game. I personally think Gears of War is better (as FPS' go) but I still think R:FoM is a good game and don't regret buying it one bit. I haven't experienced the multiplayer yet, but I will. :)


Nothing new !
By crystal clear on 6/16/2007 9:24:24 AM , Rating: 2
This news has been circulating around various websites since may,when this news came out from Taiwan-

Quote-
Taiwan-based makers of game consoles and components say that the coming end of Blu-ray laser packaging shortages should result in a PlayStation 3 price cut, perhaps as much as $100.

According to DigiTimes, Sony Shiroishi Semiconductor, a wholly owned subsidiary of Sony, is ramping up production of blue-violet laser diodes, which is the most scarce component in the blue-laser pick-up heads in use in the PS3 and other Blu-ray players.

The question is whether or not Sony will pass on the $100 in reduced costs to consumers, or if the company will choose to recoup losses stemming from the high manufacturing cost of the console.

Earlier this year Sony senior vice president Takao Yuhara told reporters that a price reduction was being considered by the company in order to boost sales. "We may look at the price as part of our strategy to expand the market when the timing is right," Sony senior vice president Takao Yuhara told reporters at the company's Tokyo headquarters.

http://arstechnica.com/journals/thumbs.ars/2007/05...

Add to the above the cost reduction in the production of the "CELL processor".(Right now dont remember the link to this news, but will provide subsequently-but a reliable source)

Plus cost reduction in "The Nvidia RSX graphics chip"
(Nvidia has started to cut prices on all its products by the way)

All put together a USD 200 price cut should get PS3 back into competition.




RE: Nothing new !
By dudecat64 on 6/18/2007 9:35:42 PM , Rating: 2
The first mistake that sony did with the ps3 was trying to sell it as a pc and not a gaming/home entertainment system like the ps2 was. No one is going to buy the ps3 for internet/websearching cause people already have computer at home and if not don't care to have one. Also the price has played a major factor in peoples minds. When i walk into a walmart and walk by the ps3 section and see hardly anyone in there looking at it and when i do they see the price and say "why don't we look at the Wii/xbox360 and see what games it has". I like sony but this is not a good sign for them when they can't even sell there systems at walmart. So sony has along way to go before they are back on top if ever.


The Competition
By crystal clear on 6/16/2007 12:34:32 PM , Rating: 2
The ordinary user/buyers do not realize the following & nor do I expect them to do so.
But people here on D.T. will certainly do so-

1)PS3, Xbox 360, Wii are 3 totally different platforms & architectures.
Only the game developer understands the complexities of this & how they differ from each other & how difficult it is to design/develop games.

Its the investment of TIME,Effort & MONEY involved that ultimately decides which & how many games are developed faster & put out into the market.

Xbox platform is the most game developer friendly & has a superior development platform.

Whilst the PS3 platform is more expensive to develop for, the architecture is trickier, the online infrastructure isn't as strong or mature as Xbox Live, and the installed base is much lower.

Until Sony sells many, many more PS3s or decides to write checks for games developers, we are looking at a platform with a higher cost of entry and lower possibility of sales.

Success or failure for the PS3 may simply come down to how many developers and publishers are willing to weather this early rough patch, or how many will jump ship to the more accessible and profitable alternatives.

2)The 360 and PS3 really require a HDTV set to shine, and the installed base of HDTV sets is still fairly low.

Could Nintendo, widely criticized for not supporting HD resolutions with the Wii, have had the right idea all along?

3)The fact that the Wii is burying both the 360 and the PS3 shows that perhaps sheer processing power & graphics are not the most important thing in selling consoles.

Price and an inventive controller scheme appear to have won out over advanced processor engineering.

Conclusions

Only Wii and Sony's last-generation hardware are moving in real volume

Buyers are still in the last generation, they have yet to take the major step of moving into the next generation.

Solution-

Developers should go cross-platform with their new games, spending more money to optimize for one particular architecture doesn't make much sense.




RE: The Competition
By Timeless on 6/17/2007 7:32:20 PM , Rating: 2
So what you're saying is that developers should have game on multiple platforms? Great! Totally love your idea! I'll be looking forward to Super Paper Mario and Halo on my PS3 in the years to come.


What will it cost?
By Tbonus on 6/15/2007 12:28:14 PM , Rating: 2
We can all agree that the PS3 is out of the price range for most of us, and that Sony is going to have a hard time getting back market share from Nintido and Microsoft not only because of the price, but because of it's library. My question though is what is a price drop going to cost me?
Every business has one objective, profit. Sony is already selling the PS3 at a loss, so how do they go about selling the system without braking the bank? I can only see this happening if they cut back on the quality, a kind of generic PS3 if you will. So now I can get me a PS3 for, lets say the same price as a Elite, what do I have? I can tell all friends that I have a PS3, but other than that what do I really have? You know all that I will have is a PS3 (P-lite) instead of a Elite system, and it will still suffer from weak game line up.
As much as I would to own a PS3 I would not want it unless it was top on the line, Atlon insted of sempron.




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