[PSXBatou]

 http://www.computerandvideogames.com....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

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

 

[phlydude]

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

 

[PSXBatou]



Quote:
Originally Posted by phlydude /forum/post/0


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."

 

[FiveMillionWays]

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.

 

[FiveMillionWays]

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.

 

[Tripjammer]

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.

 

[PSXBatou]

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.

 

[phlydude]

thanks for the posting of the article

 

[Mike LS]

^^


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.

 

[Blitzzz]

Story was a bit misinformed according to this article .


"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.

 

[jocktheglide]

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.

 

[ppshooky]

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.

 

[CommanderCool]

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

 

[Mike LS]



Quote:
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.

 

[Tichondrius]



Quote:
Originally Posted by Mike LS /forum/post/0


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

 

[Elwar]



Quote:
Originally Posted by Tichondrius /forum/post/0


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.

 

[Tichondrius]



Quote:
Originally Posted by Elwar /forum/post/0


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.

 

[RassilonZero]



Quote:
Originally Posted by Tichondrius /forum/post/0


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.

 

[Mike LS]

^^


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.

 

[Caswell]



Quote:
Originally Posted by Mike LS /forum/post/0


^^


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.