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PS3 Manufacturing Costs Reduced By 70% News
PS3 Manufacturing Costs Reduced By 70% News
TotalVideoGame - July 31, 2009
Submitted by noobie (468) at 3:46AM PST on July 31, 2009
During a conference call for overseas investors following Sony's Q1 09 financials, Nobuyuki Oneda Sony Corp's CEO and Executive Vice President has revealed that manufacturing costs of the PlayStation3 have dropped by 70%.
“The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” Oneda-san replied when asked about manufacturing costs.
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1welshbloke posted on PLAYSTATION 3 (PS3) at 4:20AM PST on August 6, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
I was always in Favour of the Pro being the new arcade and the Elite the new Pro. That said the Elite becoming the Pro continues to offer choice to consumer which I think has been one of Microsofts selling points. Also dropping down to 2 SKUs is good for business and makes selling a lot easier simpler for the consumer to understand. Of course they still need to understand why one needs a hard drive and one does not.
Depending on what Sony do I still expect Microsoft to not maybe match it but certainly give it a run for the money with some movement downward on price possible focusing in Europe.
With sales being depressed for much of the year it will interesting to see how much both Sony and Microsoft can tempt the Xmas buying public.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 3:12AM PST on August 6, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
Sure ok, how about we leave it at that? :-)
@welshbloke / @Joe80
As far as Microsoft are concerned, It seems to be pretty much confirmed they are going to drop the Pro model and cut the Elite to it's price to compete with the $299 PS3. Whether they go lower than that and/or cut the price of the Arcade remains to be seen. I'm not sure they will. Bundles are a cert though.
Microsoft seem to be content with plodding along and soaking up what sales they can get at $199 without investing too much, presumably with an eye on Natal and 2010. I really don't see much overlap between the cost conscious consumers who will be looking to pick up a $199 Arcade and those who will be excited to pick up a PS3 at $299 so in a sense there might not be much point in them cutting prices because PS3 is going to get a significant end of year uplift anyway and Microsoft's growth area is likely at the $199 level where they will already be $100 cheaper.
The Wii by far is going to have the toughest compares this holiday and it's unclear if they are going to do anything to keep sales at their previous crazy level. It may well turn out that things are pretty equal between all three when all is said and done.[ Oracle ] [ Level 21 ] [ Rank: 291 ]bids
1OuterHaven posted on PLAYSTATION 3 (PS3) at 9:54AM PST on August 5, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
Lol? I think ur the one who is "hurt" since u keep saying the PS3 is having a lackluster year when the 360 itself is doing the same level that the PS3 is. Really u keep saying how bad the PS3 is doing and how Sony wont reach targets but the 360 is half the price of the PS3 and even in this recession it can barely beat the PS3. I was just pointing out that the PS3 isn't having as bad of a year like u say it is.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1welshbloke posted on PLAYSTATION 3 (PS3) at 11:17PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% Newsbids
1welshbloke posted on PLAYSTATION 3 (PS3) at 11:16PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@Joe80,
Sony have in my opinion the opportunity to run away with this years Christmas sales if GT5 does come out before Xmas the Slim arrives and a decent cut offered this will be very attractive.
But last year Microsoft saw the power of putting together a package along with a deep price cut, I just think they will not be willing the let Sony walk away with in the same way they did last year so expect they will realign the product offering, cut the price and offer bundles.
With regards to Attacking or defenging. At least it is showing some passion and getting some talking done, this site will die If we leave it as is. It needs the passion of fans.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
1Animate posted on PLAYSTATION 3 (PS3) at 6:26PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
I see more people "attacking PS3 and defending 360" then I see the opposite. Although I agree that PS3 hasn't done too well this year. I'm surprised it hasn't done worse in this economy.
I don't know if MS will do another price cut this year. I think if they do it will be small. Like if PS3 80 gb goes to $299. I could see 360 Pro go to $279. I think 360 bundles are likely.[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 3:18PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% NewsWhy has this become the "defend PS3, attack 360 sales" thread? Outerhaven, you keep moving the goalposts as if making an observation about PS3 sales hurts your feelings. I clearly didn't say price wasn't a factor. It just isn't the only factor.
I'll just let the holiday NPD's speak for themselves I think.
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1welshbloke posted on PLAYSTATION 3 (PS3) at 2:18PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
Halo 3 ODST very much like Halo, Forza 3 and Left for Dead 2 all good titles all coming out in time for Christmas. In addition Modern Warfare 2 although Multiplatform does extremely well on the 360.
Another Major Live update to coincide with Christmas which I think they will market the hell out of.
If Sony pull out a big price cut then Microsoft will follow.
I am not saying it will not happen as you say just that if you ignore the competition you will be disapointed. So far the PS3 has not lived up to its hype and consistenly disapoints. After all it is supposed to have Europe in the bag due to brand loyalty and the PS2 userbase.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
1OuterHaven posted on PLAYSTATION 3 (PS3) at 12:22PM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@welshbloke,
THe 360 has been on the market for a long time now. Its cheaper than the wii, they just cannot go any lower with their price. Even if the drop the arcade now and promote pro i dont think they will sell that much more, especially if PS3 can be had for $100 more, ppl who have waited for a PS3 will undoubtedly go for it. There are just some people out there who are waiting for Sony to cut its price. 360 is gonna have a hard Christmas if they dont drop the price/arcade upgrade to pro because they have no games coming out this winter that are like Gears or Halo. Especially in Europe where the PS3 dominated the 360 until it cut its price below the wii.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1welshbloke posted on PLAYSTATION 3 (PS3) at 10:06AM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
Also you cannot purchase a new 360 Arcade in Europe at that price or at least I am unaware of this offer.
Xbox 360 console Arcade Germany = €179.95 or $255
With Sega Tenis from UK = £134.99 or $225
To pick it up in the UK at the price quoted (and the UK pound is weak against the Euro) it would need to be around £105 which it simply is not.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
2welshbloke posted on PLAYSTATION 3 (PS3) at 9:09AM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
The problem with Price is it very easy for Nintendo and Microsoft to counter. If Sony reduce the price by $100 dollars then Microsoft follow suit and what you are left with is the PS3 is still expensive. It all becomes relative.
For example Microsoft could do away with the Arcade and drop the Pro to the arcade price and the Elite to the Pro price. Nintendo certainly have room to move on price as well.
What we could end up here is what is the pent up demand for the PS3 this far down the line. I believe it is still substantial but as the PS3 has not delivered to date I would be hesistant to stick my neck out.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
2OuterHaven posted on PLAYSTATION 3 (PS3) at 7:56AM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
" Over the last 12 months, one of these consoles has sales up YoY in the top three territories and reversed the sales trend in continental Europe." Hmm i wonder why? Maybe because the 360 is cheaper than the wii everywhere? or the fact that in Europe an arcade is actually 179.99 (US dollars). U really dont think price plays any factor especially in this recession?[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 3:14AM PST on August 4, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
I really don't see what the 360 has got to do with it. I only mentioned it in response to you. "PS3 is doing great at this price" sounds like spin I'd expect to read on a Playstation forum.
Over the last 12 months, one of these consoles has sales up YoY in the top three territories and reversed the sales trend in continental Europe. The other one is down everywhere apart from Japan which is a market that's crashed. (Funnily enough the price hasn't changed much there which would indicate that price is not the only problem)
Shipped numbers for the quietest quarter of the year mean very little if not taken in to the appropriate context.
Back on topic, the price cut / slim will do wonders for the japanese market so long as they get compelling software out to support it. I wouldn't say GT5 is a given at this point though.
The western markets are a different kettle of fish as the competition is much stronger and more likely to react to whatever Sony do. It will have an impact of course, the question is how much.
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1OuterHaven posted on PLAYSTATION 3 (PS3) at 7:30AM PST on August 3, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
At first u say, "n the US & UK there's hard data showing quite some difference." Obviously PS3 sales are down. Who can afford the most expensive console on the market in this recession. My point is that if the PS3 is having a lackluster year then 360 by the same standards is having a terrible year because it is half the price of the PS3 and sells the same in a quarter. I am not saying PS3 would get the 13 million target, but they are in prime position to own the holidays with GT5 and PS3 slim that are rumored.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
2welshbloke posted on PLAYSTATION 3 (PS3) at 3:07AM PST on August 3, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
Sony need to do something pretty special to make the numbers. The shipped numbers are to retail so we do not know how many are in the pipe. It is entirely possible that one has more than the other in the retail pipe and the evidence certainly would point to Sony at the moment.
They need the $100 price cut and it is not clear they can afford it. One could argue they probably cannot afford not to at this time of year but big sales of the PS3 at a much reduced cost will hurt them but it is possible they need to carry the pain.
The problem they have is one division actively losing money to increase sales may mean jobs going in another. This is not an easy business decision.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 1:06AM PST on August 3, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
You'll notice I never said anything about the 360 originally. PS3 sales are down year on year in almost every territory we have data for. They won't sell 13m this year.
So yeah, lacklustre. We agree.[ Oracle ] [ Level 21 ] [ Rank: 291 ]bids
1OuterHaven posted on PLAYSTATION 3 (PS3) at 9:31PM PST on August 2, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
The numbers and shipped for the 360 as well and it is worldwide. US and Uk does not equal the world. If PS3 is having lackluster year then so is the 360. It is blindingly obvious that the price of the PS3 is holding it back.Release a slim and GT5 bundled and then the sales would rocket.
Sony has a target of 13 million btw.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 4:13PM PST on August 2, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
Neck to neck? If you're referring to one quarter's shipped numbers that doesn't mean a lot. In the US & UK there's hard data showing quite some difference.
Sony has a target of 11m PS3's sold this year and they've a very slim chance of attaining that even if the slim does very well, so yeah lacklustre.[ Oracle ] [ Level 21 ] [ Rank: 291 ]bids
1OuterHaven posted on PLAYSTATION 3 (PS3) at 11:38AM PST on August 2, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
Lacklustre year? they sold neck to neck with the 360 sales worldwide u know for the last quarter. (20-100k less) And in this recession, PS3 costs twice as much as the competition, i think price is a very big factor.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1deftangel posted on PLAYSTATION 3 (PS3) at 5:47AM PST on August 2, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@welshbloke,
The slim is definitely real. Indications are it will be announced at GamesCom (although their previous big price cut looked cut and dried for Games Convention at the same time of year but got pulled at the last minute).
The timing of the announcement is in part down to when they can clear inventory of the old model. Sales have been very lacklustre this year so there is every possibility it gets pinged to TGS. Certainly in Japan, only a big relaunch of the system is going to turn it around for them. Their problems there are not just price/content related.
With that in mind, Sony must know they need to cut $100. $50 is going to do nothing other than provoke a collective "meh" and will likely lose them just as much money in failing to move the needle as they'd lose making it three figures.[ Oracle ] [ Level 21 ] [ Rank: 291 ]bids
2welshbloke posted on PLAYSTATION 3 (PS3) at 11:17PM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% NewsI still think the Slim will release sometime in August but getting close now so could be September.
I also think $100 is still to rich. They might of managed to get the console production costs under the retail price but I doubt that when adding other activities related to the product they can consider that it makes a profit.
So based on that I think the slim will appear in August or possibly if I am wrong late September at the Tokyo Game show with possibly the announcment of an unexpected early showing of GT5and a price cut of $50.
I do not expect any of this to seriously affect the ltd sales unless they demonstrate sustained growth which to date they have not managed if fact they have a lot of catch up to do first.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
2apujanata posted on PLAYSTATION 3 (PS3) at 4:11PM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@OuterHaven,
I agree that slim's possibility as the real deal is getting bigger with this announcement of cost reduction.
When do you think slim will launch ? August ? September ?
I wonder if Slim got some feature removed to further reduce cost.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
1ixaarii posted on PLAYSTATION 3 (PS3) at 4:10PM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% NewsVery curious how this works out. They might wanna make a lil profit and test the waters with just 50, then again they might expect future lowering of costs and not want to give the impression of a falling product with another price drop in 6 months.
Btw, I might've missed it but i was just reading this article on console wars projections. Seems pretty good to me so thought i'd recomend it and am curious what you guys think (if it wasn't so long term and had the dkp i would definitely short/buy some more stocks based on it, well, not quite based, i had similar concepts for quite a while now).[ Oracle ] [ Level 20 ] [ Rank: 444 ]bids
1OuterHaven posted on PLAYSTATION 3 (PS3) at 8:36AM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% News@deftangel,
We will most likely see a $299 price tag this year. I think the slim could very well be the real deal.[ Guru ] [ Level 17 ] [ Rank: 570 ]bids
1welshbloke posted on PLAYSTATION 3 (PS3) at 4:46AM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% Newsbids
1deftangel posted on PLAYSTATION 3 (PS3) at 3:58AM PST on July 31, 2009. RE: PS3 Manufacturing Costs Reduced By 70% Newsbids
18noobie posted on PLAYSTATION 3 (PS3) at 3:46AM PST on July 31, 2009. Article: PS3 Manufacturing Costs Reduced By 70% NewsDuring a conference call for overseas investors following Sony's Q1 09 financials, Nobuyuki Oneda Sony Corp's CEO and Executive Vice President has revealed that manufacturing costs of the PlayStation3 have dropped by 70%. “The cost reduction since we introduced the PS3 is very substantial and this is on schedule,” Oneda-san replied when asked about manufacturing costs.[ Oracle ] [ Level 20 ] [ Rank: 468 ]
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