http://www.computerandvideogames.com/article.php?id=156012

I'm well invested in my PS3, i hope Sony hurries with the games. Right now there is a big software shortage, all the games i want have relase dates months ahead of now :D

Note: this is not an official Sony price drop, its at a retail level.

if someone can post this story, it would be great...websense doesn't like the link

if someone can post this story, it would be great...websense doesn't like the link

"Japanese retailers cut PS3 price
Tuesday 23-Jan-2007 10:29 AM PS3 sales grind to halt - retailers slash price by 20 percent

Reports from Japan suggest that retailers have knocked the PS3 price down by as much as 20 percent in an attempt to drum up some business. A few good games would help, we reckon.

With demand for Wii at an all time high it must be hard for Sony to watch sales of PS3 almost dry up before their very eyes. It's also been reported that PS3 suffered its worst week of sales earlier this month in Japan as well. Things could be better.

But don't expect an official price cut from Sony any time soon. SCEA boss Jack Tretton has said that it would be hard to cut the price because the system is sooo expensive to make. Speaking to Game Informer, Tretton replied, "No... There's a heck of a lot more under the hood and it costs us more money to make it."

Sony's announcement of the UK launch seems to have been delayed a few days while the company irons out all the details."

Reports from Japan suggest that retailers have knocked the PS3 price down by as much as 20 percent in an attempt to drum up some business. A few good games would help, we reckon.

With demand for Wii at an all time high it must be hard for Sony to watch sales of PS3 almost dry up before their very eyes. It's also been reported that PS3 suffered its worst week of sales earlier this month in Japan as well. Things could be better.

But don't expect an official price cut from Sony any time soon. SCEA boss Jack Tretton has said that it would be hard to cut the price because the system is sooo expensive to make. Speaking to Game Informer, Tretton replied, "No... There's a heck of a lot more under the hood and it costs us more money to make it."

Sony's announcement of the UK launch seems to have been delayed a few days while the company irons out all the details.

Sounds like the land of the rising sun doesn't like the PS3's price. Doesn't look good for Sony in the long run.

They will have to cut the price of the PS3 like this in the US and Japan and even Europe..

60 GB PS3 will drop to $449.99
20 Gb PS3 will drop to $349.99

Notice this is a $150 price drop for US models...that would be the smallest cut...they might also try to throw in Wifi to the 20gb model.


If microsoft cuts the XBOX 360 to $199 and $299...then sony will have to go deeper like $299 for the 20 GB and $349 for the 60 GB..

If nintendo cuts to Wii price to $199 this christmas...then its all over....A $299 PS3 20gb model with wifi would be a steal, as long as good games come out.

Also there are no good Wii games beside Wii Sports and Zelda...to keep the momentum of the Wii, nintendo will have to have more GOOD games to come out by this christmas 2007 and bring on there online gamming network.

We will see a PS3 pricecut by late Q3 2007, at least $150 cut, they need to go deeper and cut $200..and keep themselves no more than $50 more than the premium Xbox 360 on the 20gb PS3 model...and they will be good.

I highly doubt Sony will make a price adjustment until the cost of materials and building the PS3 comes down. When they can get rid of the EE and other PS2 chips and emulate it then you may see a price drop, when the prices of the blu-ray diodes and other expensive components (cell BBE) go down then we may see a price reduction. I dont forsee a price reduction until Holiday Season 08 at the earliest, and that is being generous.

thanks for the posting of the article

^^

Just can't see Sony taking that much more of a hit on every box they move. Honestly I can't even see them admitting that they need to....no way can I see them actually doing it.

Story was a bit misinformed according to this article (http://www.gamespot.com/news/show_blog_entry.php?topic_id=25329411&sid=6164563&tag=latestnews;title;1) .

"The official story: After conferring with their Japanese counterparts, US Sony reps dismissed the PS3 sale as a single chain trying to promote itself. "It looks like it is only one retailer, Don Quijote, and they are running a special for a limited time on a limited number," said the rep. "

I wish they did drop the price officially, but that's not going to happen until next year at the earliest.

whats the lost on each console? I heard like 300 for the 60 and 200 for the 20gb is this true? if they do cuts they will hurt even more...the only system I can see doing cuts is Wii.

I thought I read somewhere that the PS3 was making under $50 per console sold, not losing money. Can't remember where I saw that.

before mid 2008 i think the price will drop...but thats just my prediction..but 499 for the 60gb doesnt sound bad to me

I thought I read somewhere that the PS3 was making under $50 per console sold, not losing money. Can't remember where I saw that.

That's the 360, not the PS3. There were links posted in the xbox forum a couple of months ago about how MS is now in the black on 360 production costs. Seems like the amount was $50 or $75.
Definitely not the PS3. Last #'s I heard were as posted above...at least $200 in the red for each unit.

That's the 360, not the PS3. There were links posted in the xbox forum a couple of months ago about how MS is now in the black on 360 production costs. Seems like the amount was $50 or $75.
Definitely not the PS3. Last #'s I heard were as posted above...at least $200 in the red for each unit.

The 20 GB PS3 costs Sony $800 to make. The 60GB costs $850.
Now when consumers buy the PS3 for $500 (20GB) you realize that's the RETAIL price, not the wholesale price, which is what Sony is selling it for to the retailers. The wholesale price is typically at least 15-20% below the retail price. So if Sony's net income from each 20GB PS3 is around $400, they are losing $400 on each console.

So no, I don't think they will cut the price any time soon

The wholesale price is typically at least 15-20% below the retail price.
Most new consoles retail at MSRP, and in some cases, a few dollars above. Retailers don't make profit on hardware, unlike traditional electronics.

Most new consoles retail at MSRP, and in some cases, a few dollars above. Retailers don't make profit on hardware, unlike traditional electronics.

MSRP is the retail price. Wholesale price is the price the retailer pays to the manufacturer or supplier. For example: MSRP for 20GB PS3 is $499, but best-buy probably buys it from Sony for around $400. Retailers make a profit on every item they sell.

MSRP is the retail price. Wholesale price is the price the retailer pays to the manufacturer or supplier. For example: MSRP for 20GB PS3 is $499, but best-buy probably buys it from Sony for around $400. Retailers make a profit on every item they sell.
Most retailers make almost NO profit on the game consoles.
Like maybe a few dollars on each unit.
I have a friend who owns a game store, and its actually cheaper for him to buy consoles retail at costco or target than it is to get it through a "wholesale" distributor (doesnt have to pay shipping).
Given, its not a big chain, and the big chains might get a tiny discount for higher quantities, but it isnt much.

^^

True here too (I think anyway).

I remember #'s posted right after the PS3 lauch showing dealer pricing, and it was no more than $10 or $20 less than retail.

^^

True here too (I think anyway).

I remember #'s posted right after the PS3 lauch showing dealer pricing, and it was no more than $10 or $20 less than retail.

Which would explain the majority of retailers pushing large bundles on customers during the XBox / GameCube launch. Nothing more frustrating than being told I can't buy a console because I don't want to load up on weak launch titles and 3rd party accessories. So glad that practice ended, at least at the brick-and-mortar retailers.

I just saw this in the Yahoo news headlines:
http://news.yahoo.com/s/ap/20070131/ap_on_hi_te/japan_sony_4

TOKYO - Although Sony is blaming its faltering profits partly on PlayStation 3 price cuts in Japan, a senior executive said Wednesday that further slashing prices may be in store for the just-launched video game machine.

This certainly has my attention. If they do drop the price and its a reasonable drop then I will most likely be picking one up. Although I maybe sleeping on the couch for while since I know getting the PS3 will piss off the wife. :D She keeps telling me I do not need another console and the funny thing is I have only bought 1 console this generation. I had 2 from the last generations so it is only fair I get 2 this generation.

They will have to cut the price of the PS3 like this in the US and Japan and even Europe..

60 GB PS3 will drop to $449.99
20 Gb PS3 will drop to $349.99

Notice this is a $150 price drop for US models...that would be the smallest cut...they might also try to throw in Wifi to the 20gb model.


If microsoft cuts the XBOX 360 to $199 and $299...then sony will have to go deeper like $299 for the 20 GB and $349 for the 60 GB..

If nintendo cuts to Wii price to $199 this christmas...then its all over....A $299 PS3 20gb model with wifi would be a steal, as long as good games come out.

Also there are no good Wii games beside Wii Sports and Zelda...to keep the momentum of the Wii, nintendo will have to have more GOOD games to come out by this christmas 2007 and bring on there online gamming network.

We will see a PS3 pricecut by late Q3 2007, at least $150 cut, they need to go deeper and cut $200..and keep themselves no more than $50 more than the premium Xbox 360 on the 20gb PS3 model...and they will be good.

What the hell are you smoking? The PS3 has been out like 3 months and you are expecting them to cut the prices down by $150 dollars? Unless they sell outragous amounts of PS3's I highly doubt they will drop that price as you predict. You sound like all those analysts that predicted the PS3 will fail and all that other mumbo-jumbo. The PS3 20GB or 60GB is a steal either way you look at it. All the technology you get for the price is a steal. You state "We will see a PS3 pricecut by late Q3 2007" what proof do you have? That is nothing but a misleading opinion of yours. Sounds to me that you want them to drop the price of the PS3 to match the PS2's launch price so you can hurry up and get one. In my opinion if they do any price cuts I don't think it will be anything huge. If anything the price cuts that will be worth it will maybe be late 2008 or sometime in 2009. That would be my guess.

*EDIT* Don't mean to be offending sorry if I came off that way. :D

I would expect them to include a game with the system and keep the same price before doing a price drop.

Price drops reek of desparation. Including a game is simply good marketing. :D

I just saw this in the Yahoo news headlines:
http://news.yahoo.com/s/ap/20070131/ap_on_hi_te/japan_sony_4

TOKYO - Although Sony is blaming its faltering profits partly on PlayStation 3 price cuts in Japan, a senior executive said Wednesday that further slashing prices may be in store for the just-launched video game machine.

This certainly has my attention. If they do drop the price and its a reasonable drop then I will most likely be picking one up. Although I maybe sleeping on the couch for while since I know getting the PS3 will piss off the wife. :D She keeps telling me I do not need another console and the funny thing is I have only bought 1 console this generation. I had 2 from the last generations so it is only fair I get 2 this generation.
of course, price drop before the start of sales - where PS3 was priced lower to start than expected... and Sony said they wont do price cuts at least until 2008...

It eventually has to hit $299 for the 20GB to get the massive sales that will be required to recoup investment. Maybe not 2007 but I would think by holiday 2008.

It eventually has to hit $299 for the 20GB to get the massive sales that will be required to recoup investment. Maybe not 2007 but I would think by holiday 2008.
No way... it would be way too soon. That means 360 would be priced $100 in 2008.

What the hell are you smoking? The PS3 has been out like 3 months and you are expecting them to cut the prices down by $150 dollars? Unless they sell outragous amounts of PS3's I highly doubt they will drop that price as you predict. You sound like all those analysts that predicted the PS3 will fail and all that other mumbo-jumbo. The PS3 20GB or 60GB is a steal either way you look at it. All the technology you get for the price is a steal. You state "We will see a PS3 pricecut by late Q3 2007" what proof do you have? That is nothing but a misleading opinion of yours. Sounds to me that you want them to drop the price of the PS3 to match the PS2's launch price so you can hurry up and get one. In my opinion if they do any price cuts I don't think it will be anything huge. If anything the price cuts that will be worth it will maybe be late 2008 or sometime in 2009. That would be my guess.

*EDIT* Don't mean to be offending sorry if I came off that way. :D

Dude i am not offended...I like your rebuttal...I got a PS3 60 Gb on November 17th, I was smart and got in line at Gamestop during the preorder...I got a Wii by standing in line for 1 hour on November 19th at a walmart at 11pm. Back then people did not think the Wii was going to be so scarce. It took me till march 2006 to get a Xbox 360.

I am not saying the PS3 is going to fail...I love this box more than all the others. hell I love the PSP! but lets look at it and what it is..The Wii is kicking ass in sales...Sony can not afford the Wii to sale 20 million units by end of 2007. They will have to cut the price of the PS3 by at least $100 maybe even $150 this Christmas 2007 to stay competitive. Actually the Wii is not really a competitor (yeah right), it is the Xbox 360. Sony needs to get to 12 to 15 million units sold by end of March 2008. They can do it if they cut the price by at least $100. And they will this christmas 2007. Do we really know how much they lose on every console made? NO. All the crap that says they lose like $200 to $300 is made up. Sony has never said how much if any they lose on each PS3 sold or made. 53 pecent of statistics are made up in this world.

I say Drop the 20 GB model and sale only the 60 GB model for $449 by Christmas 2007...then drop it another $100 during Christmas 2008 to $349, and they will sale 75 million by 2010!

Sony will dominate this generation!

of course, price drop before the start of sales - where PS3 was priced lower to start than expected... and Sony said they wont do price cuts at least until 2008...


Of course sony is going to say they are not going to drop the price...They want you to buy one now!

it is worth it though...It is a nice piece of hardware...but come of people...we want mass penatration.

$299 for the 20 GB model and $349 for the 60 Gb model will blow this baby out of the water...along with Killzone 2, Lair, GTA 5, GT 5, ect....