Print 109 comment(s) - last by afkrotch.. on Jul 28 at 10:28 PM

Along with $100 off the 60GB model, SCEA announces an 80GB PS3 Motorstorm bundle for August

It’s official – the PlayStation 3 has dropped $100 less than eight months after it’s highly anticipated launch. According to the official press release, the current 60GB will carry a $499 price tag effective today.

The $499 price point was previously occupied by the 20GB version of the PlayStation 3. Citing reasons related to consumer demand, Sony in April discontinued the $499 20GB PlayStation 3 leaving only the more expensive 60GB model on the market.

Word of the price cut first appeared last week when retailer flyers appeared across the U.S. and Canada showing the Sony console with the lower price. It was originally believed that Sony would announce the price cut during its E3 press conference on July 11, though the company may have decided to bump up its date after the cat found its way out of the bag.

Unknown last week, but announced today by SCEA is an upcoming new PlayStation 3 model with an 80GB hard drive. The 80GB PlayStation 3 will occupy the $599 price point that the 60GB previously held, and will also come packed in with a full version of racing game MotorStorm. The 80GB MotorStorm bundle will begin shipping in August.

“As we move into the next phase of PS3, it's important that we continue to evaluate our product line, offering consumers the technology and features that meet their growing needs for new forms of media and the way in which it is delivered,” said Jack Tretton, president and CEO of SCEA. “The introduction of the 80GB PS3, the new pricing for the current 60GB model, the availability of more than 100 new software titles this fiscal year and, finally, the expansion of services for PlayStation Network, will provide even more options for users and will help bring new consumers into the PS3 fold.”

Rumblings of a PlayStation 3 with larger hard disk drive capacity first came in March when Sony filed with the FCC papers describing a PlayStation 3 with an 80 GB hard drive inside. Sony did not confirm nor deny the plans for an 80 GB unit at that time, saying only, “As mentioned when we made the product announcement for PS3, the system will have different configurations (thus, 60GB HDD with memory card slots and Wi-Fi and 20GB HDD without memory card slots or Wi-Fi both exist). Application to the FCC has been made with various possibilities in mind, however, it does not lead to a new product announcement at this time.”

Then, during the second half of May, Sony announced an 80GB PlayStation 3 for the Korean market, citing the country’s high speed network infrastructure and video-on-demand systems as a reason for the extra 20GB.

After the 80GB PlayStation 3 was revealed for Korea, SCEA responded to questions regarding the larger drive’s release in North America, saying, “We’re constantly looking at new… configurations [for PS3], but currently there are no plans to change current hardware offerings [in North America].”

Now that the price of the 60GB PS3 is slashed by $100, might this be a sign of things to come for Europe and Australia? Not yet, as Karraker says, “This news does not affect any other PS3 territory.”

Only eight months after release, the price cut for the PS3 may be one of the quickest in console history. With $100 off the current top model, Sony may be responding to the relatively sluggish sales of its consoles when compared against its competition.

Price is a common point of contention for those who haven’t yet picked up a PlayStation 3, though many point to the current lack of exclusive, compelling software. “Even with a $100 drop, the PS3 is still the high-end console,” Lazard Capital Markets analyst Colin Sebastian told GameSpot. “But price cuts typically generate incremental demand, and I don't think this situation will be any different. Bottom line, this may not be enough to kick-start PS3 sales into the mass market—but it's a good first step.”

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RE: Just 20GB more?
By darkpaw on 7/9/2007 9:20:44 AM , Rating: 2
Yah, $100 extra for a game and 20gb is a complete rip off.

I definately want to get the 60gb now that its $499, just need to convince the wife.

RE: Just 20GB more?
By Faust0 on 7/9/2007 2:02:58 PM , Rating: 2
There's just no satisfying you people, makes me wanna punch babies, that price point WAS occupied by the 60gb and w/o a game.

I feel so slighted I bought a 60gb no more than 3 months ago.

RE: Just 20GB more?
By thatguy39 on 7/9/2007 4:15:36 PM , Rating: 2
if theyre losing money on the console, how can it be a ripoff?

business knowledge anyone?

RE: Just 20GB more?
By Some1ne on 7/9/2007 5:20:34 PM , Rating: 3
It's a ripoff when you consider that for an extra $100 all you get is 20 GB of extra space and a game. HDD prices are at roughly $0.25 per GB, meaning the extra 20 GB is worth about $5.00. Add in $50 as the value of the game (and ignore the fact that the cost of the game to Sony is probably even less than the value of those 20 extra GB), and you get that Sony is charging $100 for $55 worth of upgrades, a pretty substantial ripoff, I would say.

The fact that Sonly loses money on the console regardless is irrelevant in this case, and it certainly doesn't mean that it's therefore not a ripoff to pay an extra $100 for a set of upgrades that have a street value closer to half that amount.

RE: Just 20GB more?
By wallijonn on 7/27/2007 2:21:22 PM , Rating: 2
HDD prices are at roughly $0.25 per GB, meaning the extra 20 GB is worth about $5.00.

Yes and no. While that figure is true for 3.5" HDs, it is probably not true for 2.5" drives, much less for SATA 2.5" drives. Yes, the price difference is about $15 between the 60GB and the 80GB SATA models (@newegg). But you don't really think that a retailer is just going to charge you the difference, do you?

RE: Just 20GB more?
By afkrotch on 7/28/2007 8:54:34 PM , Rating: 2
60 gig - $49
80 gig - $55

Both prices from Newegg, both 2.5" SATA hdds, and both 5400 rpm drives.

MotorStorm - $57

Also priced at Newegg.

Course, what's the price for the updated bluetooth in the new 80 gig model? What's the price reduction for the loss of the EE chip? What's the price increase when factoring in software emulation development?

RE: Just 20GB more?
By Seer on 7/9/2007 11:30:14 PM , Rating: 2
as Some1ne said, purchases are always made at the margin. Economics knowledge anyone?

RE: Just 20GB more?
By jadedeath on 7/11/2007 8:47:19 PM , Rating: 2
You mean like how the 360 was 100 bucks for 20 gigs, that's ok and this isn't?

Pull the other one.


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