PLAYSTATION 3 (PS3) > Articles
bids
20
20
PLAYSTATION 3 (PS3)
PS3 price cut at TGS?
PS3 price cut at TGS?
GI.biz - September 4, 2007
Submitted by Powertrade (219) at 10:48AM PST on September 4, 2007
GI.biz covers The simExchange's research report that Sony will have to cut the price of the PS3 by $100 to remain competitive.
Discussion - Submit a comment
bids
1Jesse2050 posted on PLAYSTATION 3 (PS3) at 7:32PM PST on September 6, 2007. RE: PS3 price cut at TGS?@Just_Ben,
You are right about being desperate. Sega Saturn did a similiar technique before it finally died out. They released 3 free games with the system shortly after a price cut.
You cant put sales figures on desperation or pride, you can on a price cut. Sony can take the high road and try to survive at the current price, but if you ask me, that road will be short.
One thing I learned about business, sometimes you got to swallow your pride.[ Admin ]bids
-1Animate posted on PLAYSTATION 3 (PS3) at 12:52PM PST on September 6, 2007. RE: PS3 price cut at TGS?@Jesse2050,
Thank you. This is what I've been trying to say. PS3 needs a price cut this year bw now & November. It's all about marketshare, selling enough games, & keeping 3rd party support.[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
0Just_Ben posted on PLAYSTATION 3 (PS3) at 2:09AM PST on September 6, 2007. RE: PS3 price cut at TGS?Well, yes the PS3 has a problem at the moment, but Sony can't lower the price (under 499$) again, it would just look to desperate. Also I would say we should look at the first full Christmas for the PS3, maybe it can par out in America and get ahead in Europe. The higher the price of electronics, the higher the jump around Christmas, because thats the time people have money for it. And the PS3 did not have a Christmas in Europe, yet.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2Laoldar posted on PLAYSTATION 3 (PS3) at 11:06PM PST on September 5, 2007. RE: PS3 price cut at TGS?@Jesse2050,
Well said. Sony really has to work on getting more exclusives or for developers to utilize their platform's strengths.
Also, Sony has really struggled in Japan compared with the PS2. While it seems strong compared with the 360, it's really been a huge blow to them already.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
8Jesse2050 posted on PLAYSTATION 3 (PS3) at 9:59PM PST on September 5, 2007. RE: PS3 price cut at TGS?The best is Kotaku's coverage. Apparently I am Gary Coleman, hehe.
Anyways, a comment on Laolder and Joe80's comments.
If Sony does not start selling more consoles in North America they will slowly start fading away (Dreamcast..). Obviously, worldwide, the PS3 and Xbox360 are pretty close in sales (thanks to Japan) but the system cannot survive without North American support. If the big American publishers stop producing titles for the PS3 or keep delaying titles (Didn't Orange Box just get delayed for the PS3??), then they will start to lose support in Europe, and then Australia. PS3 can't survive alone on the revenue of the Japan market. It is like a rippling effect that we see sometimes in the Stock Market. If the NASDAQ sneezes, Europe catches a cold (and vice versa). Same stuff happens in the gaming market.
Simply put, Sony needs to sell more systems or else they can kiss software support good bye. If I was a consumer getting ready to decide to buy a Video Game system, I just need to ask myself "Do I want to wait 2 weeks after a new a hot multi-platform release to get it on the PS3 or do I want it right away on the 360?"
And I don't want to hear about PS3ˇ¦s superior graphics capability. No third party publisher is currently taking full advantage of that. Developers are making titles for the 360 first and then porting to the PS3.
I know that statement seems like I am anti-PS3, but I am not, I just report and make decision on the facts. I can only hope one day that I can write a report on the success of the PS3.[ Admin ]bids
2kspraydad posted on PLAYSTATION 3 (PS3) at 8:01PM PST on September 4, 2007. RE: PS3 price cut at TGS?bids
2Anyone subscribe to the Wall Street Journal Online? They have an article about Sony getting ready to challenge Apple with an On Demand TV & Movies. Perhaps it should say Sony to Challenge [MS]...
link & beginning of article:
http://online.wsj.com/article/SB118885177843416106.html
"TOKYO -- Two years after taking the helm of Sony Corp., Chief Executive Howard Stringer is quietly preparing a big move to expand the company and challenge rival Apple Inc. in an area that has thus far promised more than it has delivered: video-downloading services.
People familiar with the situation say Mr. Stringer is planning to use Sony's technology-packed PlayStation 3 and PlayStation Portable videogame machines, along with its Bravia high-definition televisions, to develop products and services to let users download television shows and movies, similar to the way they download music and videos using Apple's iTunes store and iPods."[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
2@kspraydad,
How many of their consoles have been made in the last 6 months? Back before they did their first price cut, it was known that there were 2 million PS3s that had been shipped out by Sony but were sitting on store shelves (difference between shipped and sold numbers). The new 80gb model probably has a new cost of manufacture but they're still taking a hit on the old models.
Hopefully someone will break down a new model and figure out how much it should cost.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
3kspraydad posted on PLAYSTATION 3 (PS3) at 4:58PM PST on September 4, 2007. RE: PS3 price cut at TGS?The most recent ESTIMATE of manufacturing cost I've seen for the PS3 is from Nov 2006. All these analysts talking about losses on the console vis a vis price cut...not one of them gives ANY indication of CURRENT costs of manufacture.
Perhaps SONY is doing better on the cost cutting side than we know? (blue diodes/HDD costs/scale/no emotion chip) etc etc ...[ Oracle ] [ Level 21 ] [ Rank: 475 ]bids
2@Joe80,
I remember it :) Looks like you're not the only one who thinks so!
Regardless of what Sony does at TGS, I think it's obvious now that their hubris cost them dearly. They kept saying that consumers would pay more for a PS3 (and be thankful that it wasn't higher) but they were clearly wrong.
Personally I think that Sony can cut the price all they want, it won't get them the top spot. However, if they can encourage developers to get their big titles out of the door (MGS4, RE5, SOCOM, GT5, FF13, DMC4, GTA4, God of War 3, etc) then they might be able to convince gamers to pick one up. By the end of this year Nintendo will have out a Zelda, Metroid, Mario, Smash Bros (Kart to come soon)...the 360 will have its Halo (nevermind Gears, Bioshock, etc). What major franchises will Sony have out? I think a major stumbling point is that their major franchises are absent from their system. There's really no excuse to not have any of the big brands out within the first year. Someone really dropped the ball here.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
4bids
4@Powertrade,
From the article, this is exactly what I've been saying recently when I was debating with Laoldar that Sony will be better off with selling more consoles at a lower price with decent software sales, instead of selling PS3's at a higher price with less software; and the benefit it will bring to 3rd parties. I looked quickly but I cannot find where we had that discussion. I'll check again later:
"Divinch believes that although a price drop would incur a greater financial loss per console manufactured, he feels that such action is necessary as "Sony’s third party software support could be at serious risk if they allow Microsoft to continue to widen the sales gap."[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
2Powertrade posted on PLAYSTATION 3 (PS3) at 10:53AM PST on September 4, 2007. RE: PS3 price cut at TGS?@Powertrade, in case you missed it, they are referring to the new simExchange Research report that is up.[ Guru ] [ Level 21 ] [ Rank: 219 ]bids
20Powertrade posted on PLAYSTATION 3 (PS3) at 10:48AM PST on September 4, 2007. Article: PS3 price cut at TGS?
About Us - The simExchange is the video game stock market and the source
for video game sales forecasts.
-1
As I have asked before...do we know what the CURRENT cost of manufacture is for the PS3?
We all seem to assume that the losses are as big if not bigger than Nov 2006 if SONY were to lower the price ... but how do we KNOW this? AFAIK Sony doesn't break out their console manufacturing costs in their fiscal reports so losses in the gaming division may or may not be related to losses on the console (it could be losses related to setting up and running PSN or in game development no?)