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Suggestion for Sony

post #1 of 41
Thread Starter 
I think everyone will agree that Sony needs another price drop to attract more buyers. I think there is a way for them to do a price drop and still not lose a whole lot more than they are already losing. Unfortunately it would require replacing the two current skews with new ones.

I think Sony needs greater separation between the "core" and "premium" units if you will. I would suggest a core unit at either $299 or $349 that has no Wi-Fi, no memory card slots, nothing more than the basics and no more than the current 80gb hard drive. 40gb would be better, but that may be considered too big of a step backwards (prehaps).

The "Premium" system could be $449 or perhaps even remain $499(?). It would have the Wifi, card slots and be bundled with an HDMI cable, dvd remote, PS Bluetooth headset and 1 game and 1 blu-ray disc. This would have at minimum the 160gb hard drive, maybe even more.

I think even though the majority of consumers would likely choose the "core" system, a fair number would also go for the "Premium". The Extras that are included with the premium units would not cost Sony $100, so they'd make a little more money on those systems.

They are going to have to drop the price anyway at some point and I think this would help sell a few more higher priced systems.

Myself, I bought the 60gb system at launch mainly for the added features over the 20gb version, namely Wifi. If I were in the market today, I'd likely get the 80gb unit since the only real difference between it and the 160gb system is the hard drive and included game.

Of course this is just one persons opinion.
post #2 of 41
Yes, they should confuse the consumer even more than they already have.
post #3 of 41
The last thing Sony needs to do now is create more confusion between SKU differentiations then they already have. Also we'd need a detailed list of how much the features you mentioned cost Sony to implement in the PS3 to know if that would be enough to warrant such an immense drop in price.

I don't really think Sony needs a price drop anyway. Their goal isn't to take the number one spot with the PS3, it's to be profitable and the PS3 is doing alright at the moment. In fact it was keeping pace with the 360 on a month-to-month basis until the price drop. When it's profitable to drop the price of the PS3 to sell more units that's what Sony will do.
post #4 of 41
The high end SKU exist solely for a much larger margin, it's not for the consumer. The same goes for the Elite 360.
post #5 of 41
Thread Starter 
I agree that Sony has had too many sku changes. So far none of the changes have made much sense (to me). At this point they should either do something like I'm suggesting or they should drop the higher priced sku altogether. Anyway, this is just my opinion, I'm not trying to start a fight or anything.
post #6 of 41
Quote:
Originally Posted by Anthony Cler View Post

I agree that Sony has had too many sku changes. So far none of the changes have made much sense (to me). At this point they should either do something like I'm suggesting or they should drop the higher priced sku altogether. Anyway, this is just my opinion, I'm not trying to start a fight or anything.

Why do they need to? Their current plan is working. Sure they'll take **** from the world's idiots because they're not "Numbar OneZ!!!1!" in the console war but it doesn't really matter as long as they come out profitable.
post #7 of 41
Thread Starter 
You may be right. But with Microsoft droping it's price and with stand alone blu-ray players droping below $200, I think there will be pressure for Sony to reduce the price of the PS3 as well. That pressure will likely come from lower hardware sales.

No matter what Sony says publicly, they do not want to lose to Microsoft.
post #8 of 41
Thread Starter 
Quote:
Originally Posted by tgable View Post

The high end SKU exist solely for a much larger margin, it's not for the consumer. The same goes for the Elite 360.

Yes, there are a group of consumers who will purchase the more expensive sku no matter what, but there is an even larger group (most of us) who will buy the higher end sku if it offers true additional value.
post #9 of 41
Quote:
Originally Posted by Anthony Cler View Post

No matter what Sony says publicly, they do not want to lose to Microsoft.

WHAT???


Source?
post #10 of 41
Thread Starter 
Quote:
Originally Posted by PvtChurch View Post

Their goal isn't to take the number one spot with the PS3, it's to be profitable and the PS3 is doing alright at the moment.

Martez,
I didn't say that Sony said anything. I said no matter what they say, they don't want to lose to Microsoft (or anyone for that matter).
post #11 of 41
While I agree they don't need to change the ps3 itself any more, it would be nice if the $500 package at least included a friggin HDMI cable.

I worked at a retail store this winter for some extra cash and there were many people who were confused about how to hook up the ps3 to get HD. I told them they needed separate cables like an HDMI or component, but the component cables we sold were $30 and the HDMI was $50. Even after telling them about the Big lots cables or online retailers, many customers decided not to buy the ps3 due to the hastle/cost of extra cables .

It seems silly to advertise this High def system and not even include a $2 HDMI cable...
post #12 of 41
Thread Starter 
Quote:
Originally Posted by Kevuda View Post

While I agree they don't need to change the ps3 itself any more, it would be nice if the $500 package at least included a friggin HDMI cable.

I worked at a retail store this winter for some extra cash and there were many people who were confused about how to hook up the ps3 to get HD. I told them they needed separate cables like an HDMI or component, but the component cables we sold were $30 and the HDMI was $50. Even after telling them about the Big lots cables or online retailers, many customers decided not to buy the ps3 due to the hastle/cost of extra cables .

It seems silly to advertise this High def system and not even include a $2 HDMI cable...

Yeah, that was something that kind of bugged me when I got my launch unit. It's not a big deal for me to get the cable from monoprice, but a lot of consumers will simply use the included composite cable and wonder why Blu-ray doesn't look any better than dvd.

Another thing was the lack of any kind of headset. Again, I have a bluetooth headset, but that's not much use if no one else has one. I know more guys have them now-a-days, but back then playing Resistance online and hearing one or two guys out of 40 wasn't as much fun as it could have been.
post #13 of 41
I'm just gunna flat out say that a price drop is a bad idea.

And it's not like a "core" version of the ps3 isn't going to take any R&D money. Not to mention extra production/shipping costs because these core units are going to be done on a differnet assembly line (even if it's the same factory, it's taking away from lines for the premium version).

We have enough threads about this so, but then again we have multiple threads on a lot of topics.

The point is that a price drop seems like a no brainer to us, but it's not an ultimate solution, and it wont guarentee ps3 will take second and certaintly not first.

PS3 is just starting to get cost down on the current ps3 design. If they keep tooling away at the current price tag they can still take the 2nd place spot off of software sales.

I wouldn't expect a price drop or design changes until the next xbox or ps comes out.
post #14 of 41
Quote:
Originally Posted by Anthony Cler View Post

I would suggest a core unit at either $299 or $349 that has no Wi-Fi, no memory card slots, nothing more than the basics and no more than the current 80gb hard drive. 40gb would be better, but that may be considered too big of a step backwards (prehaps).

I'm surprised they haven't done something like this yet.

I don't know why Sony's so blindly devoted to having built-in wireless. It's not a very big deal to most people. Follow MS's lead and just make an overpriced add-on adapter. Are they getting a kick-back or subsidy from someone for including wireless in every console? Of course, it isn't what's pushing the PS3's price tag into the stratosphere.

Most every other feature they've already committed themselves to. They've cut out all the extras as it is. Everything else will just have to come down in price as the production process becomes cheaper and the tech costs come down.

It'd be great (and still possible in the future) if Sony could offer something like MS's Arcade sku with flash memory and an empty expandable drive slot. But since it'd have to be at least 10gigs, it'd probably be more expensive to produce than the current 40gig model. Maybe in a year or so that'll be profitable, but not yet. Maybe time it with a late 2009 price drop?
post #15 of 41
wireless is a lot more important than you realize. This is coming from someone who works in the Internet field

I wiling to wager most owner are connected wirelessly.

Also u will notice they only cut the features the average consumer doesn't know or care about. The average person wants a large hdd even if they have no idea what it means. They just want that big number to brag about

To suggest getting rid of wireless hdd or bd playback (wrong thread, I know). May save us money, but I think it would shoot Ps3 in the foot. They can't win this race playing copy cat. I say play it out and hit the ground running in the next gen.
post #16 of 41
Quote:
Originally Posted by confidenceman View Post

I'm surprised they haven't done something like this yet.

A basic SKU with no wireless and no memory cards? They did already, and it sold so poorly that they pulled it.
post #17 of 41
Quote:
Originally Posted by Martez View Post

A basic SKU with no wireless and no memory cards? They did already, and it sold so poorly that they pulled it.

But it was also priced at $499. Sony's in a tough spot. Keep the same skus and drop the price in time for Killzone 2. Not the most ideal solution but it should help move some units.
post #18 of 41
Quote:
Originally Posted by Degenerazn View Post

But it was also priced at $499. Sony's in a tough spot. Keep the same skus and drop the price in time for Killzone 2. Not the most ideal solution but it should help move some units.

Killzone 2 looks great and has a lot of hype, but it also has Killzone 1 weighing it down. I think a price drop right before a guaranteed hit like God of War 3 is more likely. It also gives them more time to get production costs down.
post #19 of 41
Quote:
Originally Posted by Martez View Post

Killzone 2 looks great and has a lot of hype, but it also has Killzone 1 weighing it down. I think a price drop right before a guaranteed hit like God of War 3 is more likely. It also gives them more time to get production costs down.

Special Edition Red Kratos PS3 please.
post #20 of 41
Quote:
Originally Posted by zetram View Post

wireless is a lot more important than you realize. This is coming from someone who works in the Internet field

I wiling to wager most owner are connected wirelessly.

Also u will notice they only cut the features the average consumer doesn't know or care about. The average person wants a large hdd even if they have no idea what it means. They just want that big number to brag about

To suggest getting rid of wireless hdd or bd playback (wrong thread, I know). May save us money, but I think it would shoot Ps3 in the foot. They can't win this race playing copy cat. I say play it out and hit the ground running in the next gen.

Why? They started off with a sku that had no wireless in it in the first place. They have been taking features away since it released to get cost down. I wouldn't expect them to take BD and HDD that would be shooting themselves in the foot but wireless they can make an option IMO.
post #21 of 41
Since when did 80gig PS3 jump to $499??? Do your research $399.
post #22 of 41
Quote:
Originally Posted by kciaccio View Post

Since when did 80gig PS3 jump to $499??? Do your research $399.

At one point it was $499. Just like the 20gig was $499 and 60gig at $599 when launched.

Here is the research report.

http://en.wikipedia.org/wiki/PlaySta...kx1zkAAAB6Cp1V

You will also find the skus that are no longer in production.

Production cost:

The PlayStation 3's initial production cost is estimated to have been US$805.85 for the 20 GB model and US$840.35 for the 60 GB model.[69] However, they were priced at US$499 and US$599 respectively,[70] meaning that every unit was sold at an estimated loss of $250,[69] contributing to Sony's games division posting an operating loss of ¥232.3 billion (US$1.97 billion) in the fiscal year ending March 2007.[71] In April 2007, soon after these results were published, Ken Kutaragi, President of Sony Computer Entertainment, announced plans to retire. Various news agencies, including The Times[72] and The Wall Street Journal[73] reported that this was due to poor sales, whilst SCEI maintains that Kutaragi had been planning his retirement for six months prior to the announcement.[73]

In January 2008, Kaz Hirai, CEO of Sony Computer Entertainment, suggested that the console may start making a profit by early 2009, stating that, "the next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing" and, "that (profitability) is not a definite commitment, but that is what I would like to try to shoot for".[74] However, market analysts Nikko Citigroup have predicted that the PlayStation 3 could be profitable by August 2008.[75] As of July 20, 2008, Sony continues to incur a loss on every PlayStation 3 unit sold

Isn't production cost now down to $46 from the intial high cost? They are close to there goal if that is the case.
post #23 of 41
Quote:
Originally Posted by Martez View Post

Killzone 2 looks great and has a lot of hype, but it also has Killzone 1 weighing it down. I think a price drop right before a guaranteed hit like God of War 3 is more likely. It also gives them more time to get production costs down.

Yeah, I still don't understand why Sony's putting so much money behind this project. It'll probably sell well to current PS3 owners, but I don't think it'll help push a price drop. Besides, the game is hitting too soon to be affected by a console price drop. Price drops tend to precede major releases, not follow them.

Now that you say it, your guess about GoW3 sounds dead on. Drop the price early summer 2009 (April/May), help sell GoW3 a few months later (Sept/Oct). Hell, GoW3 may even come out around the same time as GTAIV did last year (April). That'd be perfect timing with a price drop. Who knows? We have yet to hear anything but rumor and speculation about a release date, so it could happen.

EDIT: Also, keep in mind that prior entries in the series have released in March.
March 2005 = God of War
March 2007 = God of War 2
March/April/May 2009 = ?
Even Ready at Dawn's PSP God of War released in March (of 2008).
post #24 of 41
I work at Sony. We always come to the AVSForums to do our research on what's next for our company's products, especially our Playstation division. I'll pass these comments on to my superiors and we'll see what we can come up with.
post #25 of 41
Quote:
Originally Posted by tomfoolery_79 View Post

I work at Sony. We always come to the AVSForums to do our research on what's next for our company's products, especially our Playstation division. I'll pass these comments on to my superiors and we'll see what we can come up with.

I wish Sony listened to AVS. Then we could get the 60gb back into production! lol We want the best and we want it yesterday! Oh yeah.. We did have it yesterday! Dag!
post #26 of 41
Thread Starter 
Quote:
Originally Posted by zetram View Post

wireless is a lot more important than you realize. This is coming from someone who works in the Internet field

I wiling to wager most owner are connected wirelessly.

Also u will notice they only cut the features the average consumer doesn't know or care about. The average person wants a large hdd even if they have no idea what it means. They just want that big number to brag about

To suggest getting rid of wireless hdd or bd playback (wrong thread, I know). May save us money, but I think it would shoot Ps3 in the foot. They can't win this race playing copy cat. I say play it out and hit the ground running in the next gen.

I'm definetly not suggesting that Sony drop bd playback or the hard drive from their core unit, that would be insane.

Also, I don't think dropping Wifi from their Core unit would save anything and it may even cost them a little as others have suggested, but It would create needed separation from the "Premium" system.

Actually the Premium unit wouldn't need a pack-in game or movie, just the HDMI cable, headset, remote, Wifi and larger drive. I think that would be enough for a lot of consumers to pay the higher price. I know I would.
post #27 of 41
Quote:
Originally Posted by Kevuda View Post

It seems silly to advertise this High def system and not even include a $2 HDMI cable...

This bugs me as well. The PS3 ships with no IR port and crappy cables (like you said, that's like about $2.50 extra it would cost to include those...probably less).

Had the same issue with the wii. Ok, I know it's not HD, but it ships with RCA cables (480i resolution), so I had to go buy the component just to get 480p out of the thing.

At least my 360 came with the right cables, but I'm not sure if all models/skus do.

Oh, and of course back in the HD DVD days the player didn't come with HD cables. WTF?!?!
post #28 of 41
It's a conspiracy to get you to buy overpriced retail cables at the time you purchase the hardware.
post #29 of 41
Quote:
Originally Posted by Martez View Post

It's a conspiracy to get you to buy overpriced retail cables at the time you purchase the hardware.

Probably. I mean, it's MonSter.

Or mONSter (throw in a "Y" and rerarrange the letters and you get "SONY")

Or even mONSTEr (you have to throw in another N, an I, and a D and rearrange the letters to get "NINTENDO")

My tinfoil hat is around here somewhere.
post #30 of 41
Quote:
Originally Posted by mproper View Post

Probably. I mean, it's MonSter.

Or mONSter (throw in a "Y" and rerarrange the letters and you get "SONY")

Or even mONSTEr (you have to throw in another N, an I, and a D and rearrange the letters to get "NINTENDO")

My tinfoil hat is around here somewhere.

It's not just game companies. I remember buying an upconverting player before I got the PS3 and it came with regular AV cables *facepalm* I couldn't find a single player in Best Buy that came with it's own HDMI cable.
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