Sony Rules Out PS3 Price Cut for Holidays [Archive]

fitbabits

10-12-2008, 10:10 PM

Speaking in an interview with the Financial Times of London, president and group chief executive of Sony Computer Entertainment Kaz Hirai stated, “The answer is yes, if you’re asking, ‘Are these the prices we’re going with this Christmas?’”

Among the reasons for Hirai's optimism are the previously stated Blu-ray out the box and a hard disk drive as standard on every PlayStation 3.

While Hirai is confident of the PS3 doing well, he did acknowledge that pricing is becoming a concern, saying “we’re getting to the point where price becomes more important”.

http://i15.photobucket.com/albums/a390/fitbabits/kaz.jpg

Kaz Hirai

Hirai clearly believes that the PlayStation 3 has enough clout to encourage consumers to pay double the price of Microsoft's entry-level Xbox 360, which currently retails for $199 in the US, not to mention the considerably cheaper and more successful Nintendo Wii.

On the subject of the struggling global economy, Hirai believes that the video game industry will remain largely unaffected as long as consumer excitement remains at a high level.

Also of note in the interview, Hirai once again took pains to assure people that the much-anticipate beta of Home will make an appearance before the end of the year, with the full release still some ways away.

Source - Financial Times (http://www.ft.com/cms/s/0/0c6d283e-988a-11dd-ace3-000077b07658.html)

Phades

10-12-2008, 10:14 PM

Sony is going to get anihilated this holiday. The cost of entry being twice of their main competitor is a huge problem. The only reason I can think of for Sony not caring about this is that they've already decided they're not going to worry about the other guys and just aren't trying to directly compete anymore this generation. I think they've conceded defeat to Microsoft and are now just doing what they can to be profitable.

OldJadedGamer

10-12-2008, 10:17 PM

Yup, and Kaz's boss... President and Director; CEO, Electronics: Ryoji Chubachi stated just last year that Sony wouldn't drop the price.

then two weeks later they did. They will never, EVER admit a price drop before it happens.

Smoof

10-12-2008, 10:30 PM

If it dropped to $299, I'd probably pick one up.

fitbabits

10-12-2008, 10:36 PM

Think about this, though - for Sony to compete with Microsoft, they're probably looking at an astronomical price correction (there are no price drops these days).

Microsoft took a huge gamble launching first (and it's backfired in a big way with the RRoD fiasco), but they're now in the driving seat.

I remember talking to Shane Kim one time and him saying that Microsoft needed to get away from being in a 'reactionary' state of mind. Mission accomplished.

fitbabits

10-12-2008, 10:37 PM

If it dropped to $299, I'd probably pick one up.

If it did drop to $299, you can expect some features to be cut as well.

Lekon

10-12-2008, 10:48 PM

If it did drop to $299, you can expect some features to be cut as well.

Hell they've already cut features (Backwards compatibility) without cutting the price!

Victorvonviolence

10-12-2008, 10:53 PM

If it did drop to $299, you can expect some features to be cut as well.

Biff! Take that motion controls!

Pow! So long wireless built-in capability!

fitbabits

10-12-2008, 10:54 PM

Biff! Take that motion controls!

Pow! So long wireless built-in capability!
Kerrang! One USB port is more than enough! :)

Bingley Joe

10-12-2008, 11:19 PM

I'm no business tycoon, but I can afford to buy a PS3, want to own a PS3, and simply will not buy one due to the stupid price they're selling them for. It's just not worth it to me.

A more attractive case (read: more boring and like the rest of my A/V components) and the ability to bitstream all the most recent audio codecs would sell me one at the current top-end price.

Backwards compatibility would sell me one at the current entry-level price.

A lower price-point would sell me one.

Pick one and make a few extra sales, boys.

Wolvie

10-13-2008, 12:17 AM

Biff! Take that motion controls!

Pow! So long wireless built-in capability!

I could live without a WiFi connection personally.

Smoof

10-13-2008, 12:19 AM

If it did drop to $299, you can expect some features to be cut as well.

I'd be fine with some feature cuts. All I'd want is the ability to play games on it. I couldn't give a flying fuck about wireless, USB ports (times I've used USB on my PS2 = none), backwards compatibility, etc. All I care about is that it will play whatever games come out for it and it plugs into my monitor.

Victorvonviolence

10-13-2008, 12:28 AM

I could live without a WiFi connection personally.

OH ho ho you say that now. Imagine having to pay for a 100 dollar adapter for that same feature.

Unless you can cable it....then I got nothing.

OldJadedGamer

10-13-2008, 12:37 AM

I could live without a WiFi connection personally.

I wish they would have taken this out rather then BC. Remove the non-gaming functions first please.

pomeroy

10-13-2008, 12:47 AM

I wish they would have taken this out rather then BC. Remove the non-gaming functions first please.

You want them to remove Blu-Ray?

Victorvonviolence

10-13-2008, 12:59 AM

You want them to remove Blu-Ray?

Well as awesome as Talledega nights looks in HD...

OldJadedGamer

10-13-2008, 02:02 AM

You want them to remove Blu-Ray?

Considering it's literally the very last feature I care about or use on my PS3... yeah.

Wolvie

10-13-2008, 02:12 AM

OH ho ho you say that now. Imagine having to pay for a 100 dollar adapter for that same feature.

Unless you can cable it....then I got nothing.

I have a cable running from my modem, along the base boards(held in place with cable clips), up behind my entertainment center, to my 360. It would be a simple matter of taking that cable from my 360 and putting it in the PS3. But considering they probably won't take out WiFi, I'd just use my wireless modem anyways... so it's a moot point.

I wish they would have taken this out rather then BC. Remove the non-gaming functions first please.

Yeah, considering there are a ton of PS2 games I would still play, I'd say WiFI would be a better sacrifice,

Gorvi

10-13-2008, 02:46 AM

1) They really need to.

2) No company ever admits to a price drop before they do it.

Disgustipated

10-13-2008, 03:26 AM

Guess Sony is ruling out me buying a PS3 for Christmas. Quite a shame.

Purple Santa

10-13-2008, 04:05 AM

2) No company ever admits to a price drop before they do it.

Do you think they might drop the price? Or do you believe they really will stick it out through xmas with these prices?

SilentScreams

10-13-2008, 04:14 AM

Sony really are stubborn. Even when it's clear to see that their current pricing isn't doing them any favors they stick with it. Talk about head in the sand.

If the PS3 was the same price as a 360, I'd probably own one already. I'd wager most people would. They wouldn't be making as much money per unit, but their profits would surely be higher.

Chimpster

10-13-2008, 04:52 AM

No HOME anytime soon!?! I swear I just read somewhere that HOME would be launching November 19th, right alongside the NXE...

Crowe

10-13-2008, 05:22 AM

It's still way to expensive here in Aus. $686 from EB Games.

Gorvi

10-13-2008, 06:08 AM

Do you think they might drop the price? Or do you believe they really will stick it out through xmas with these prices?
Sadly, I doubt it. They seem to be sticking their heads in the sand somewhat. It could still happen, but they sure aren't acting like it. Not a smart move, IMO.

JayVe

10-13-2008, 06:20 AM

Do you think they might drop the price? Or do you believe they really will stick it out through xmas with these prices?

Will the PS3 have a price drop this holiday?

Colony of Gamers Poll (http://www.colonyofgamers.com/cogforums/showthread.php?t=1044)

Purple Santa

10-13-2008, 06:32 AM

Sadly, I doubt it. They seem to be sticking their heads in the sand somewhat. It could still happen, but they sure aren't acting like it. Not a smart move, IMO.

Well I just don't understand from a business point of view, aka profit, are they not dropping the price? I know, I know...they lose enough money on the PS3...but if they are going the "we want Blu-ray" in more homes...why not drop the price? I don't understand what the better strategy is by letting another gaming console who they do consider their competitor, be so much lower in price. Unless, bottom line, they are happy enough with the sales they have so far...and the small bump they will get at holiday season is good enough. But again, I thought the reason they wanted Blu-ray in the PS3 was to sell Blu-ray as a media...which I go back to why not get more PS3s in the homes meaning more Blu-ray in homes...Sony you truly are confusing me...

Will the PS3 have a price drop this holiday?

Colony of Gamers Poll (http://www.colonyofgamers.com/cogforums/showthread.php?t=1044)

A great idea for a poll...now if I knew how to do a poll...someone create a poll if you like..

JayVe

10-13-2008, 06:35 AM

someone create a poll if you like..

Sure thing... done (http://www.colonyofgamers.com/cogforums/showthread.php?t=1044).

Well I just don't understand from a business point of view, aka profit, are they not dropping the price? I know, I know...they lose enough money on the PS3...but if they are going the "we want Blu-ray" in more homes...why not drop the price? I don't understand what the better strategy is by letting another gaming console who they do consider their competitor, be so much lower in price. Unless, bottom line, they are happy enough with the sales they have so far...and the small bump they will get at holiday season is good enough. But again, I thought the reason they wanted Blu-ray in the PS3 was to sell Blu-ray as a media...which I go back to why not get more PS3s in the homes meaning more Blu-ray in homes...Sony you truly are confusing me...I too am really confused. Why build a single machine that's designed to battle on so many fronts at once?

Anyway, this is the only thing I can find that may remotely answer these strange actions... from back in 2006!

Sony not so concerned with market share -- ah, that explains it (http://www.engadget.com/2006/06/03/sony-not-so-concerned-with-market-share-ah-that-explains-it/)

We've been scratching our heads over all the wild Sony moves during the past few months -- with pricing themselves almost out of the game (http://www.engadget.com/2006/05/08/500-ps3-to-lack-hdmi-wifi-card-reader/) right at the top of our list -- but we'd been apparently laboring under a false assumption. Silly us, we thought Sony was planning on grabbing market share in this console generation, but we were oh so wrong. "The name of the game is not market share, it's how fast we can grow the industry," says David Reeves, head of Sony Europe, who went on to say "We want to try and double digital entertainment in the next five to six years. Whether we have 40, 50, or 60 per cent market share is not that important." Good to know guys, we're really sorry for getting on your case about all this stuff, we had no idea you're not feeling so competitive this time around. As a side note, Molly Smith, Sony's SCEA PR chief who was brought on shortly after the launch of the PS1, has recently and unexpectedly resigned her post, no word why, but we're sure she's glad to not be dealing with this little sound bite.Is Sony really growing the industry?

bean

10-13-2008, 09:43 AM

Rock Bandit

10-13-2008, 10:14 AM

I really do hope the price drop is this season. I've been holding out on at least a $300 price point and was ok with waiting however long until then but all this LBP talk has me itching for one NOW. Don't be pricks Sony, take my money.

Abednigo

10-13-2008, 10:15 AM

Sony is run by idiots. Arrogant idiots at that. Can they not see they're losing horribly to Nintendo and Microsoft? Are they in denial?

fitbabits

10-13-2008, 10:18 AM

Sony is run by idiots. Arrogant idiots at that. Can they not see they're losing horribly to Nintendo and Microsoft? Are they in denial?
No, they're in Japan.

Purple Santa

10-13-2008, 10:44 AM

Is Sony really growing the industry?

From their perspective, or how they are defining "growing" I guess yes. Nice find. I think this does explain why the lack of concern for market share...and I remember reading more than once the PS brand was PART of the Sony digital empire...so it's a TEAM deal...now if that is working or will work...<shrug> don't know...I left reading balance sheets etc long ago when I knew a major in business/accounting wasn't for me :)

JayVe

10-13-2008, 10:50 AM

From their perspective, or how they are defining "growing" I guess yes. Nice find. I think this does explain why the lack of concern for market share...and I remember reading more than once the PS brand was PART of the Sony digital empire...so it's a TEAM deal...now if that is working or will work...<shrug> don't know...I left reading balance sheets etc long ago when I knew a major in business/accounting wasn't for me :)

In more recent news, Michael Patcher says it will take another 10 years for the PS3 and 360 to catch up with the Wii (http://www.ecommercetimes.com/story/64727.html). Good thing Sony isn't interested in catching up.

"The Wii is the winner. The others won't catch up unless we measure over a 10-year period," Michael Pachter, a Wedbush Morgan analyst, told the E-Commerce Times.Good article that looks at the console war from a lot of different angles, including challenges and hurdles the leader faces.

OldJadedGamer

10-13-2008, 12:15 PM

I will buy a PS3 when it gets down to $300, and I had the money set aside to get it this holiday, but I'm graduating college and I may need that money to travel to interviews or to perform the sacred duty of making sure bean eats after this Xmas.

I bought mine for $220 bucks and it's worth every single penny. I would say from my experience with the PS3 lately (and I've used every... single... feature) that it's worth $299 and I think thats when the floodgates will open up and people will buy it in large numbers.

Adding Blu-ray isn't helping them as much as they thought it would with the PS3. It's like the chain around their leg with the machine.

TheFlyingOrc

10-13-2008, 12:20 PM

Adding Blu-ray isn't helping them as much as they thought it would with the PS3. It's like the chain around their leg with the machine.

Actually, while I think the BluRay player bumping the price up is a huge problem, I think this is the main reason they've been catching up to the 360 in overall sales - especially when you consider their low, low attach rate.

Rune_74

10-13-2008, 12:28 PM

No, they're in Japan.

Which in the last month means nothing since ps3 came in 3rd. Denial of there placing is actually kind of funny. Its like they see everything happening and just stand there saying everything is ok.

JayVe

10-13-2008, 01:05 PM

Adding Blu-ray isn't helping them as much as they thought it would with the PS3. It's like the chain around their leg with the machine.

I've gotten way more play time out of my Wii and 360 than my PS3, and they each cost less. Now that I can play region-free DVDs on the Wii, I rarely use the PS3 at all. I've been unable to watch my French DVDs since I gave up the original Xbox and XBMC. Glad to have the region-free playback back.

As for Bluray, other than planet Earth, I haven't seen anything that is worth paying more than DVD for. If Bluray discs were the same price as DVDs, I MAY consider them... but DVDs end up being so much more versatile. I can easily play a DVD at someone else's house, or in a car/portable player. I also love the ability to rip a DVD to watch on my phone or laptop. Bluray isn't nearly as functional in that regard... and more expensive.

pomeroy

10-13-2008, 01:06 PM

OldJadedGamer

10-13-2008, 03:25 PM

As for Bluray, other than planet Earth, I haven't seen anything that is worth paying more than DVD for.

HA! I got Planet Earth on HD-DVD and it looks just as good if not better then the Blu-ray version... and loads up faster as well!

But the PS3 has replaced my 360 as my main divx machine. It works super well but Blu-rays I couldn't care less about. I'm not a big movie rental type of person and the quality isn't that big of a deal unless the movie was made digitally.

Other then that, I just buy DVD's and rip them to divx then put them on my 1TB media server so everyone on the network can watch them. Until I can do this with Blu-ray, it's just a wasted feature of the machine to me.

JayVe

10-13-2008, 03:57 PM

HA! I got Planet Earth on HD-DVD and it looks just as good if not better then the Blu-ray version... and loads up faster as well!

You know, Planet Earth was so good. I wonder how much it costs to pick up one of those 360 HD-DVD drives and an HD-DVD Planet Earth. It may be more affordable than picking up Planet Earth on Bluray!

rvieira

10-13-2008, 03:57 PM

No one comments on price drops before they happen…. But we all know what’s going to happen next, new lower specs SKU with a more efficient cost of production with lower price and the current SKUs bundle with a high profile game or two crappy ones for the same price we have today.

Man every time I see a PS3 (or X360) price drop news I get more and more convinced that been an early adopter does pay the price anymore....at least I have PS2 backwards compatibility.

Also first post!

JayVe

10-13-2008, 04:01 PM

No one comments on price drops before they happen…. But we all know what’s going to happen next, new lower specs SKU with a more efficient cost of production with lower price and the current SKUs bundle with a high profile game or two crappy ones for the same price we have

Welcome!

Early adopter backwards compatibility FTW. I still pick up PS2 games from time to time that I missed and play them on the PS3. Granted, I did get screwed on a rumbling controller.

SilentScreams

10-13-2008, 04:07 PM

What was the reasoning behind taking out backwards compatibility?
I mean, I haven't counted or anything, but I'm pretty sure there are more PS2 games that I still play than PS3 games that I want to play.
It's not exactly compelling me to get the system. Sure I could have my PS2 plugged in as well, but it means that every time I want to play a different console, I have to risk life and limb going into the maze of wires behind my TV.

JayVe

10-13-2008, 04:16 PM

What was the reasoning behind taking out backwards compatibility?

The line is that backwards compatibility was removed to 'encourage' people to buy more PS3 software (http://www.1up.com/do/newsStory?cId=3163763).

Speaking with the Wall Street Journal, Sony Computer Entertainment America President Jack Tretton said the purpose behind removing backward compatibility was to push PS3 software. According to the Journal story, Tretton "conceded that removing that capability, along with a few other features, isn't dramatically reducing Sony's cost of manufacturing the console but will instead encourage buyers of the entry-level PlayStation 3 to purchase more games designed specifically for the new system."

Upsetting? Sony doesn't think it should be, since their research shows most PS3 buyers already have a PS2 anyway. You can handle having a PS2 perpetually plugged into your TV set, can't you?As for more general thoughts on the PS3 price drop, Tretton had this to say: "While we were incredibly excited about the technology in PS3 and while it was future-proofed to some degree, it was a bit ahead of its time. The downside of all that technology was the price we had to offer it to consumer at retail. We knew $599 was going to be a challenge for some people based on traditional videogame pricing."

It's a far cry from Ken Kutaragi's famous claim (http://www.1up.com/do/newsStory?cId=3141864) that users "will want to work more hours" to buy a PS3, huh?

Personally, I love standing in the store while a salesperson tries to explain to a potential customer that SOME models of the PS3 can play PS2 games but the only ones available now can only play PS1 games. Classic consumer confusion at its best. Sony couldn't have caused more confusion had they TRIED.

OldJadedGamer

10-13-2008, 04:29 PM

You know, Planet Earth was so good. I wonder how much it costs to pick up one of those 360 HD-DVD drives and an HD-DVD Planet Earth. It may be more affordable than picking up Planet Earth on Bluray!

A friend of mine got an HD-DVD player and Planet Earth together for $30 bucks. Half of what the Blu-ray version costs.

But don't forget that every PS3 still plays PS1 games. I was playing Klonoa on my 40 gig over the weekend.

Johan

10-13-2008, 04:35 PM

I believe the majority of people do not, and will not, own all three major home platforms (just talking consoles). The cost is too prohibitive, and most people are at least mildly rational in recognizing that the amount of time and money they have available for gaming is not up to the task of playing all the potentially worthwhile (as one would define them) games on each of the systems. People don't have the time and/or money to do that. [sidenote: Some of you, remarkably, do! I have no idea how, however..........]

Sony is on the losing end of that yardstick, in terms of pricing, in terms of gaming library, and arguably in terms of ubiquitous online community features. They're not priced to attract the casual market, nor does their IP have the recognition of Nintendo's in that niche. They're not priced to attract the hardcore market, and their library is limited as compared with the 360 as well. They're even slipping in Japan.

I think Sony will find that Blu-Ray will not offer a terribly long lifespan, as well. I see consumers dragging their feet into the HD era, and by the time BR is priced at a level that is mass-market friendly, it will be too late.

I doubt I will buy a PS3 this generation. If they reintegrate hardware-based PS2 BC, I actually would consider it. Without that, I'm not interested.

JayVe

10-13-2008, 04:38 PM

But don't forget that every PS3 still plays PS1 games. I was playing Klonoa on my 40 gig over the weekend.
WipEout XL

Joy

JayVe

10-13-2008, 04:39 PM

I believe the majority of people do not, and will not, own all three major home platforms (just talking consoles). The cost is too prohibitive...

...'specially if they gots 5 kids! Beautiful kids I might add. So beautiful you could probably afford a PS3 if you wanted to sell a few of 'em to gypsies.

I KID! :D

MagGnome

10-13-2008, 07:34 PM

I'd really like a PS3, mostly for Blu-Ray (via Netflix) and LittleBigPlanet, as well as a few other titles.

I won't pay four or five hundred for one though. I dropped $500 on my Elite, and I won't be spending that much on a console again.

Johan has a point though - I don't have time to play the games I have now!

rvieira

10-13-2008, 07:40 PM

Welcome!

Early adopter backwards compatibility FTW. I still pick up PS2 games from time to time that I missed and play them on the PS3. Granted, I did get screwed on a rumbling controller.

I forgot about rumbling controller...
But nowadays who cares about a rumbling controller ?
I do....:(

SilentScreams

10-13-2008, 09:19 PM

Another mark against the PS3 is that with my 360, Wii, PS2 and newly built beast of a gaming PC, I have almost no need for a PS3.
It simply doesn't have any exclusives I care about other than Disgaea 3 and possibly a rental of LBP.

KingGorilla

10-13-2008, 09:36 PM

Is Sony even doing any sort of ad push for their only good game for this Holiday, Little Big Planet?

I do have to say, it seems interresting that in NBA 2k9, KG is playing on a PS3 and not an Xbox, however. Those sorts of third party ties can be very helpful.

johnperkins21

10-13-2008, 10:30 PM

I agree with most of what Johan said.

Blu-Ray is important to some people, but it really seems to be the laserdisc of our generation. I don't see downloadable HD content really being the competition for it, but the price factor in relation to the perceivable increase in quality from DVD. Sony really counted on Blu-Ray catching on, making their machine the ubiquitous living room machine, kind of like the PS2 was in Japan.

If they dropped the price to $300 and added PS2 backwards compatibility back into the machine, I'd buy one right now. As it stands, the lack of BC along with the price and dearth of quality exclusives, I'm happy with my 360, PS2 and PC. The lack of a price cut this holiday season pretty much puts a nail in their coffin this generation. But hopefully that means they'll come back next year with even more vigor, and give us something we can't live without.

OldJadedGamer

10-13-2008, 10:40 PM