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Discussion Starter · #1 ·
A high-resolution image of the 60GB PS3SCEA CEO says PS3 price drop still a ways off while Japan sees the cheapest PS3 yet



Along with the Neo Geo and 3DO, the PlayStation 3 is one of the most expensive consoles ever released. While price drops are inevitable during any console's lifespan, those holding off until a cheaper PS3 rolls around may find themselves waiting longer than expected. As noted by Joystiq, Game Informer magazine interviewed SCEA's President and CEO Jack Tretton and one of the topics discussed was PS3's cost.


The magazine asked if the PS3 would see a price drop schedule similar to PS2, which saw a reduction of a third from $299 to $199 just over a year and a half after launch. Tretton replied to the question with a simple No, thus leaving the current price points where they are at for at least the rest of 2007.


Tretton reasoned that the enormous R&D costs of the PS3 make it a lot more difficult to cost reduce than the PS2. There's a heck of a lot more under the hood and it costs us more money to make it, said Tretton. He may be referring to the fact that Sony is selling every one of its new consoles at a loss, making it nearly impossible to move on the price until manufacturing costs are reduced. Analysts currently estimate that Sony is taking a $241 hit on 60GB versions, and a $307 loss on 20GB PS3s.


The Sony executive remained confident in the machine's price point, saying that the PS3 still represents an excellent value. I think the consumers that get their hands on a PlayStation 3 clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay, Tretton said.


While Tretton's words apply specifically to the North American market, the pricing situation is a little different in other territories. The Japanese market received a price-reduced to ¥49,980 ($411) 20GB PS3 before the machine even launched in response to public outcry.


European gamers, who have had to wait for PS3 whether they mind it or not, will be seeing the new console in March at 599 ($777) for the 60GB, and 499 ($648) for the 20GB models - considerably higher than what North Americans and Japanese pay. The UK may get the worst of it all, as the 60GB PS3 will go for £425 ($842) for the 20GB PS3 it will be £350 ($694).


Although Europe may always lag behind the rest of the world for console releases, it may be the first territory to receive a drop in price. With the PS3 selling in Europe at prices much closer to the machine's manufacturing costs, Sony could have a lot more room to work with. If the PS3 gets a lukewarm - or even cold - reception at launch, it may not be surprising to see adjustments to price or, more likely, the introduction of value-added software bundles.


Going back to Japan, demand for the machine appears to be so low in certain parts of the country that retailers have taken it upon themselves to lower the price. Kotaku reports that sales of the console are so stagnant in Japan that select retailers are taking 20 percent off the price of the 20GB console in hopes to attract buyers. At the sale price of ¥39,980 ($329), Japan has PlayStation 3 at prices that make the rest of the world jealous.


http://www.dailytech.com/SCEA+CEO+Sa...rticle5810.htm
 

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i don't know how these comments are newsworthy. what else do you expect from a console that was just launched 2 months ago? they have not yet realized any cost reductions as its WAY too early in the system's life cycle. in a year or so, when price drops normally occur, his statements will change...
 

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The newsworthy part is that its not going to come down as quickly as the preceding generation, not that it will not be coming down soon.


Thats a fairly significant bit of news. For one it may prompt people to go buy a PS3 knowing that no cheaper model is coming out next year. There is a fair % of gamers who wait knowing next year it (Whichever console IT is) will be cheaper in XX months or so. Sony is letting them know this console will not be like the others. Thats again pretty newsworthy IMO.
 

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To be fair to Sony, I think Frank's second point is the more likely scenario. Signaling a price drop this early, even if one is in the works, is going to do nothing but cause sales to stagnate.


I'll still be shocked if we don't see a significant price drop by this year's holiday season.
 

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Quote:
Signaling a price drop this early, even if one is in the works, is going to do nothing but cause sales to stagnate.

Exactly, and its the same reason why MS won't confirm the release of a future Xbox360/HD-DVD/HDMI for the Fall of 07, for promoting IPTV.


ON EDIT: Almost forget, and bigger hard drive. No way in hell 20 gigs gonna cut it....
 

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There is another box involved in IPTV William, the data can be stored online or there. There is no need for the 360 to have a larger HDD for IPTV.
 

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Quote:
Originally Posted by FrankJ.Cone /forum/post/0


There is another box involved in IPTV William, the data can be stored online or there. There is no need for the 360 to have a larger HDD for IPTV.

Or, I hypothesize, you can stream to a Vsta enabled computer to save on it's HD. Xbox live anywhere should allow all the content available for the 360 to be accessed on the PC.


But back to the main point, I do think it would have been surprising if he had said anything other than what he did. Imagine if he had said, "yeah, we'll drop the price in a few months, so if price is an issue just hold off buying one for now."
 

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You still gona need IPTV ISP othewwrise no IPTV for you.


Anyway, the PS3 price issue - its really not that expensive for that you get out of the system as a whole. A great CD/MP3/Blu Ray/ PS1/PS2/3 in one box.


For 500-600 bucks. P
 

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


Or, I hypothesize, you can stream to a Vsta enabled computer to save on it's HD. Xbox live anywhere should allow all the content available for the 360 to be accessed on the PC.


But back to the main point, I do think it would have been surprising if he had said anything other than what he did. Imagine if he had said, "yeah, we'll drop the price in a few months, so if price is an issue just hold off buying one for now."

Nice! So instead of the 360 being just $399 for a premium, you will ALSO need a Vista enabled computer, wireless network, etc. Somehow I don't see MS adopting that strategy for the mass-market.


I don't really see what is that newsworthy about Sony not dropping prices right after launch. The 360 has been out for 14 months and still hasn't seen a price drop. Why would Sony be expected to drop the price so soon after launch when MS hasn't done so 14 months later?
 

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Frank, on a personal note, I am hoping MS feels the need for adding HDMI when they launch IPTV, but thats just me. So while MS does have plans, they still seem hush hush on exactly what there plans are regarding the 360, HD-DVD and HDMI. And I don't blame them...
 

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Quote:
Originally Posted by GW-SMOkeY /forum/post/0


You still gona need IPTV ISP othewwrise no IPTV for you.


Anyway, the PS3 price issue - its really not that expensive for that you get out of the system as a whole. A great CD/MP3/Blu Ray/ PS1/PS2/3 in one box.


For 500-600 bucks. P


its funny you didnt put DVD... LMAO
 

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he also forgot to add the chrome strip too!
 

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For an extra $60, they could have added a toaster too. Then you would have a $660

CD/MP3/Blu Ray/ PS1/PS2/3 and toaster in one box. Hopefully, it would be able to cook texas toast, and not just that small Wonder Bread toast.
 

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Discussion Starter · #15 ·
The reason for the post is if you look around alot of people keep assuming on here that a price drop would come by the end of this year or shortly after. Too many people here trying to talk about Sony's strategy as if they are in the board room planning it.
 

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What's going to happen with the sales of the PS3 when the Wii goes to $199 (probably in April after E3 and the same for the 360? Mind you the Wii may not have a pack in but it's rumored to ship in different colors at this time...........that alone would cause a sales spike for both Nintendo and Microsoft.
 

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well i certainly don't think sony has a chance in hell in competing with the other two consoles on price in this generation. they really screwed the pooch, and it will be interesting to see what they do to stem the tide...
 

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Quote:
Originally posted by Revolution2006

What's going to happen with the sales of the PS3 when the Wii goes to $199 (probably in April after E3 and the same for the 360?

Link???
 

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Sony will be just fine. They just need the games to come along and underline the systems hardware strengths.


People are still viewing it as a $600 movie player.
 

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Quote:
Originally Posted by Revolution2006 /forum/post/0


What's going to happen with the sales of the PS3 when the Wii goes to $199 (probably in April after E3 and the same for the 360? Mind you the Wii may not have a pack in but it's rumored to ship in different colors at this time...........that alone would cause a sales spike for both Nintendo and Microsoft.

Unsubstantiated rumor. What makes you think that the price will drop for E3 instead of for the 2007 holiday season?
 
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