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Why did sony announce PS3 price at E3?

612 Views 14 Replies 9 Participants Last post by  longshot
Fans and industry insiders were universally surprised at Sony for releasing the PS3 price so early as it has generated terrible press. The line of thought is that it would be better served for late summer which would also help keep fence sitters from buying 360s or other competitive products such as HD-DVD. Nevermind they could possibly showcase a few more quality "next gen" games instead of getting "PGR3 looks better than that" type reactions. I don't think the "tell them now to prepare people for sticker shock" was the primary intention.


Does anyone doubt they did this due to pressure from BLURAY partners who have $1000 players lined up for sale against $500 HD-DVD? Lets face facts, those will be very, very tough sale if people were expecting a $299-$399 Playstation 3 this winter - as unrealistic as that pricing is many people felt it to be realistic.


I believe the $600 pricing (hdmi) opens the door for stand-alone bluray players thru spring 2007 due to pricing and what will be obvious shortages.
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Same negative press no matter when you release the price tag. At least now there's 5 or 6 months for people to get over the high price tag. I imagine Sony wants to focus on games, how they look and play, rather than a price tag come August/October.
Quote:
Originally Posted by chinch
Fans and industry insiders were universally surprised at Sony for releasing the PS3 price so early as it has generated terrible press. The line of thought is that it would be better served for late summer which would also help keep fence sitters from buying 360s or other competitive products such as HD-DVD. Nevermind they could possibly showcase a few more quality "next gen" games instead of getting "PGR3 looks better than that" type reactions. I don't think the "tell them now to prepare people for sticker shock" was the primary intention.


Does anyone doubt they did this due to pressure from BLURAY partners who have $1000 players lined up for sale against $500 HD-DVD? Lets face facts, those will be very, very tough sale if people were expecting a $299-$399 Playstation 3 this winter - as unrealistic as that pricing is many people felt it to be realistic.


I believe the $600 pricing (hdmi) opens the door for stand-alone bluray players thru spring 2007 due to pricing and what will be obvious shortages.


When the 360 announced their price at $399.99, I said to myself and friends that it was ridiculous to pay that much for a console. I now have one sitting on my shelf at home.


I will get over the price of the ps3 eventually and break down and buy one as well, provided it has stand out games. The only reason I upgraded to "next-gen" was due to Call of Duty 2 and FNR3. So aside from Blu-Ray the ps3 has to have a must have exclusive game to get my purchase. But I am sure I will bite the bullet if it looks pretty good.
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Quote:
Originally Posted by rdank
Same negative press no matter when you release the price tag. At least now there's 5 or 6 months for people to get over the high price tag. I imagine Sony wants to focus on games, how they look and play, rather than a price tag come August/October.
Yes on the negative press but showing your hand that early puts others in position of power with competitive products (Wii, 360, HD-DVD) who can significantly tweak their marketing and product plans. It seems like this created more DOUBT to possible customers then it did solidify their purchase. Announcements that do that are best to avoid now and deal with later... even if they waited until July that is 4+ months in advance for the "get over the high price" phenomena.


It is perplexing, except when you factor Blu-ray hardware partners
Just curious, do you work in advertisement or marketing? Not trying to be a smart ass here at all. Just wondering where you are pulling some of your ideas from. I don't do this sort of work and just took a guess personally.
Quote:
Originally Posted by rdank
Just curious, do you work in advertisement or marketing?
hehe... that didn't take long (aims crosshairs on the messenger). marketing yes but not presently. i'd like to be "enlightened" from real marketing experts (this is not advertising yet) :)
Hopefully you saw my edit as you were repsonding. Again, I wasn't trying to be a smart ass or resort to stupid, "Yeah, well when did you major in marketing?" type comment.
:) i didn't see the edit but didn't take it personally. i really WOULD love to know what were the factors leading to the decision (to announce the price at E3 and not wait).
I think sony really had no choice. It was time for them to strart releasing the final details and what better time than E3. If they would have released the price points at any other time, thats all people would have focused on instead of the features and games. At least now while its in the news everywhere they can defend their pricing arrangements and promote other things in their system to take peoples mind off the high price tag. At least thats my unprofessional opinion
3 reasons.


1) for people to get over it by the time of release for the system. IF you tell them now all the bad press and ideas come out, but by the time the system is released its all a moot point.


2) Give people that want the system a chance to save it to buy it.


3) They actually thought there product was worth the money.
I was suprised they announced it so early as well, I was almost certain they wouldn't. I am excited and happy with what they are offering (aside from no HDMI option in the $499 package which seems it would hurt them in the end (loss of potential sells on blu-ray software depending on ICT) if those specs don't change, I think they might).
Quote:
Originally Posted by rdank
Same negative press no matter when you release the price tag. At least now there's 5 or 6 months for people to get over the high price tag. I imagine Sony wants to focus on games, how they look and play, rather than a price tag come August/October.
I think this went beyond the same...
It was announced so the sticker shock could be absorbed by the time the units ship. Seriously, Sony wants the "bad" press to be finished when it releases. Right now there is an uproar, but it will be accepted by the time they ship and then the focus can be on more positive news. All the complaining is about sticker shock, not that its actually too expensive.
Quote:
Originally Posted by FrankJ.Cone
It was announced so the sticker shock could be absorbed by the time the units ship. Seriously, Sony wants the "bad" press to be finished when it releases. Right now there is an uproar, but it will be accepted by the time they ship and then the focus can be on more positive news. All the complaining is about sticker shock, not that its actually too expensive.
This is what a fan would say more than an analyst. Bad press and negative reactions don't just "end" magically. All the complaints i've seen for the most part are indeed "it's too expensive", even gamers who like blu-ray (but don't necessarily want to champion it) are upset at the high entry cost.


Also, consider what if competition lowers price (Wii and/or 360). It's not like Sony is launching against a bankrupt competitor (dreamcast) for 18-35 market... now you have TWO NEGATIVE press reactions, both at crucial times).

Quote:
Originally Posted by chap
3 reasons.

1) for people to get over it by the time of release for the system. IF you tell them now all the bad press and ideas come out, but by the time the system is released its all a moot point.


2) Give people that want the system a chance to save it to buy it.


3) They actually thought there product was worth the money.
Good points but again if announced in Aug/Sept (further keeping 360 fence sitters at bay) the same results would be achieved without 3-4 months of negative press


#3 makes sense only to blu-ray... which is not the primary market/audience. A $600 video game console in and of itself is silly for gaming only).
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Waiting until fall to announce pricing would have been a larger disaster. A previous poster is right. The sticker shock will fade and allow the focus to be on the games.
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