trapical Posted February 1, 2007 Share Posted February 1, 2007 http://news.com.com/2061-10797_3-6155119.html?tag=tb Sony may be eyeing price cuts for its next-generation PlayStation 3 video game machine in a bid to break even on the console by the end of fiscal 2008, it told reporters in Tokyo. According to the Associated Press, Sony senior vice president Takao Yuhara said that while no specific plans have been made, the company is considering reducing the price as a way to boost sales. "We may look at the price as part of our strategy to expand the market when the timing is right," Yuhara said. Sony had already reduced the price of the PS3 in Japan prior to launch. But with prices--which go up to $599 for a full-featured PS3--leaving some feeling that the machine is too expensive, the company may be worrying that it cannot sell enough of the consoles to make up for its tremendous overhead. At the same time, market share in the next-generation console race is crucial, as Microsoft's Xbox 360 has already been selling well for more than a year, and Nintendo's Wii is currently the sales darling. Industry observers have long assumed that Sony would eventually cut the PS3's price in order to woo more customers--especially since it loses more than $200 on each unit--but no one expected movement on that so soon Pie chart version of NexGenWars: http://img484.imageshack.us/my.php?image=013107gv9.jpg Right so apparently Sony realized they're not doing so hot. They state they are thinking about a $100 price drop for the system. My question is, wouldn't an expected future price drop make current people even less likly to buy one since they know it will be cheaper in the future? A comment on CNET brings up some other interesting points: I am not sure I follow. In mid/early november of last year they built the consoles for a cost of ~$840, and sold them retail at $599. Of that $599 sale price, the retailer gets a cut, and there are other associated costs like shipping that likely drove their per console losses into the $280 range.Even after taking their cut of $60/game that number does not leave much room for a price reduction. The real question is, to what extent has the manufacturing cost come down since early/mid November? Assuming the numbers have not changed and they make $20/game profit, it would take selling 14 games to each console buyer to break even. A $100 price cut on the console would bring that number to 19 games. Most people don't have the cash laying around to go buy 19 PS3 games at $60+tax (a $1200 cost) and there are not that many good titles worth playing for the people who do. Another factor to consider though is that Microsoft was making ~$75 a console before the end of last year and could likely afford a price reduction. This would not be a good time for Sony to attempt a price war against Microsoft. Link to comment Share on other sites More sharing options...
____ Posted February 1, 2007 Share Posted February 1, 2007 Am I the only person thinking this is an act of desperation to get sales? Link to comment Share on other sites More sharing options...
Nadril Posted February 1, 2007 Share Posted February 1, 2007 Bad time to do this IMO... They have already gotten a lot of negative hype over an overpriced system, bumping it down $100 won't help at all. Why? Because the 360 would still be $100 cheeper (for the best models) and the Wii cheaper than that. if someone wants the PS3 most likely they will have enough to get the enitre thing. However, I don't think they can really get any up in the air customers (dunno why console to buy) to get a PS3 like this. They would go after the 360 or Wii for it's price range / games list. Link to comment Share on other sites More sharing options...
unknownmasterofnothing Posted February 1, 2007 Share Posted February 1, 2007 I will buy for a maximum of 350 for it. For me its just a ps2 with just better graphics, nothing new. Link to comment Share on other sites More sharing options...
crimsonking Posted February 1, 2007 Share Posted February 1, 2007 Lets hope they reduce PSP prices as well, they are going for the same price as the Wiis, and they've been out for how long now? I'm definatly not going to be getting a PS3 any time soon, even f they dropped the price more, cause it doesn't even seem to have any decent games on it yet. ~^v^~Ex-Leader of the Divine Flames of Redemption~^v^~ Link to comment Share on other sites More sharing options...
trapical Posted February 1, 2007 Author Share Posted February 1, 2007 Lets hope they reduce PSP prices as well, they are going for the same price as the Wiis, and they've been out for how long now? I'm definatly not going to be getting a PS# any time soon, even f they dropped the price more, cause it doesn't even seem to have any decent games on it yet. I actually feel sorry for Sony. I mean they spend all this money in R&D and achieve fantastic graphics, and now there totally in a rut. Tiny market share, bad PR, and expensive developing costs means 3rd party companies aren't exactly flocking towards Sony. Yet that's exactly what it needs to get out of this mess. Vicious cycle. Meanwhile Microsoft pays the 3rd party companies well and it has the market majority so it's doing fine. And then the Wii is selling beyond anyone's expectations and the games are easier to create so 3rd party companies are flocking towards it. :-s Well good luck Sony (you'll need it) and fantastic job Nintendo. Link to comment Share on other sites More sharing options...
crimsonking Posted February 1, 2007 Share Posted February 1, 2007 Its such a shame too... They did so well with the PS2. ~^v^~Ex-Leader of the Divine Flames of Redemption~^v^~ Link to comment Share on other sites More sharing options...
____ Posted February 1, 2007 Share Posted February 1, 2007 On the side.... The war between HD-DVD and Blu-Ray hasn't exactly done much to push PS3 sales either. Neither format has really won many people over from DVD and Blu-Ray was a HUGE pitch for the PS3; but with neither of them really "dominating" DVD, people aren't exactly in a hurry to invest in either* After all - the difference between HD and SD isn't that grand to the average consumer; and those are the people who make the difference - not the early adopters. * Like, when DVD replaced VHS it happened pretty quick because of the obvious advantages: longer life better quality ease of use (no more rewind, fast forward, etc) compact Between SD and HD it's effectively down to picture clarity. And most people simply don't care for such a small difference. Link to comment Share on other sites More sharing options...
jemathonical Posted February 1, 2007 Share Posted February 1, 2007 I think sales will increase a little bit, but not enough to make the PS3 'successful'. Just my two cents ^Sir Jem 05-The Bunny Drinking Blog?^ Click it! Link to comment Share on other sites More sharing options...
RebelAssassin Posted February 1, 2007 Share Posted February 1, 2007 i bet it wont happen in the UK www.PETAkillsanimals.com Link to comment Share on other sites More sharing options...
limpbizkit Posted February 1, 2007 Share Posted February 1, 2007 retilers wouldnt if they bought it at such and such and are losing on profit not gonna happen Tif 360 MGC Leaderboard Link to comment Share on other sites More sharing options...
indy500fan Posted February 1, 2007 Share Posted February 1, 2007 $500 is still too much for a gaming system. Hell, I thought the $250 for the Wii was too much. Link to comment Share on other sites More sharing options...
knives669 Posted February 1, 2007 Share Posted February 1, 2007 It'll still be expensive as hell. :anxious: I still plan on getting one.... someday. When the price is much much lower. Link to comment Share on other sites More sharing options...
limpbizkit Posted February 1, 2007 Share Posted February 1, 2007 It'll still be expensive as hell. :anxious: I still plan on getting one.... someday. When the price is much much lower. so xmas 09? Tif 360 MGC Leaderboard Link to comment Share on other sites More sharing options...
knives669 Posted February 1, 2007 Share Posted February 1, 2007 It'll still be expensive as hell. :anxious: I still plan on getting one.... someday. When the price is much much lower. so xmas 09? Yep. Sounds about right. :) Link to comment Share on other sites More sharing options...
Augsback Posted February 1, 2007 Share Posted February 1, 2007 That's always a plus. Darkrick: I'd say Blu-Ray sales are dominating now after the numbers by release by Amazon, Dvdempire, and Nielson/Videoscan of Home Media Magazine. Link to comment Share on other sites More sharing options...
____ Posted February 2, 2007 Share Posted February 2, 2007 That's always a plus. Darkrick: I'd say Blu-Ray sales are dominating now after the numbers by release by Amazon, Dvdempire, and Nielson/Videoscan of Home Media Magazine.They aren't dominating DVD which is what really needs to happen to win a format war ;) Link to comment Share on other sites More sharing options...
Augsback Posted February 2, 2007 Share Posted February 2, 2007 That's always a plus. Darkrick: I'd say Blu-Ray sales are dominating now after the numbers by release by Amazon, Dvdempire, and Nielson/Videoscan of Home Media Magazine.They aren't dominating DVD which is what really needs to happen to win a format war ;) That is true, my fault. I'll come back in a couple years and say that. I went a little to far into the future. #-o Link to comment Share on other sites More sharing options...
____ Posted February 2, 2007 Share Posted February 2, 2007 My point is that Sony really need it to win NOW to make an integrated Blu-Ray player a reason to buy a PS3 for the current cost :P Link to comment Share on other sites More sharing options...
timmay929 Posted February 2, 2007 Share Posted February 2, 2007 Even with the price cut, i'd still rather get a 360. It's still a lot cheaper and I want to try something new. I also heard XBOX Live owns. 122 Combat : 99 Hits : 99 Attack : 99 Strength97/99 Defence : 99 Fletching : 99 Woodcutting Link to comment Share on other sites More sharing options...
unknownmasterofnothing Posted February 2, 2007 Share Posted February 2, 2007 They should do something like $350 for ps3 and get a free psp. Link to comment Share on other sites More sharing options...
pault Posted February 2, 2007 Share Posted February 2, 2007 They should give them away, and then sell the games for 5,000$ each. Link to comment Share on other sites More sharing options...
Riku3220 Posted February 2, 2007 Share Posted February 2, 2007 to me PS3's and PSP's are the most pointless thing in the world. the PSP can do everything the PS2 can do except go onto th internet but its.... portable.... at least do something new like nintendo did with the DS's and the Wii's PS3 i think is just a PS2 with better graphics..... pointless Link to comment Share on other sites More sharing options...
Parabola Posted February 2, 2007 Share Posted February 2, 2007 The title is a bit misleading since no plans to cut the price have been confirmed. Even in the quote that the OP posted it only says: "We may look at the price as part of our strategy to expand the market when the timing is right" They might consider it, and if they consider it they might decide against it. Link to comment Share on other sites More sharing options...
aquariusman Posted February 3, 2007 Share Posted February 3, 2007 Even with the price cut, i'd still rather get a 360. It's still a lot cheaper and I want to try something new. I also heard XBOX Live owns. XBOX Live does own, and I only play it at friends'. 360 emphasizes on XBOX Live, which is why they are so succesful. Like alot of people here have said, PS3 is pretty much PS2 in High-def with a $500+ price tag. Also, granted I'm from Canada, sending only tens of thousands of units to a country with population 32 million (quite small compared to the U.S., albeit) doesn't exactly help to sell units and raise popularity. There's no such thing as regret. A regret means you are unhappy with the person you are now,and if you're unhappy with the person you are, you change yourself. Thatregret will no longer be a regret, because it will help to form the new,better you. So really, a regret isn't a regret. It's experience. Link to comment Share on other sites More sharing options...
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