Sony to Raise Prices in Europe

[JayVe]

From the Wall Street Journal by way of SonyInsider, the news is that Sony is set to raise prices for Europeans (http://www.sonyinsider.com/2008/12/17/wsj-sony-to-raise-prices-in-europe/). Apparently, Europe has become the largest market for Sony, even more than North America or Japan. Pair that with Europeans' tendency to spend more money for premium products with an emphasis on design, and you end up with what could be considered by some to be price gouging.

“Even as the electronics industry wages a price war in the U.S. to drum up sales, Sony Corp. is heading in a different direction in Europe. In an industry where prices for televisions and digital cameras have consistently declined, Sony says it will next month start raising prices of a range of products sold in Europe. The reason: It needs to recoup some of its foreign-exchange losses after the yen has soared more than 25% against the euro since July. A stronger yen cuts into overseas revenue when brought back as yen.

The price increase, likely to be followed by other Japanese makers, shows how vulnerable Japanese companies still are to sharp currency fluctuations. Making matters worse, some of their fiercest competitors, South Korea’s Samsung Electronics Inc. and LG Electronics Inc., have seen the Korean won fall 30% in value against the dollar and 25% against the euro this year. The companies haven’t announced price changes in Europe. But at the very least, the weak won allows the Korean rivals to hold prices flat in Europe while absorbing some of the price cuts in North America.

A price increase could also slow Europe’s emergence in recent years as a critical market for Japanese electronics makers, which already face stagnating sales at home and cutthroat pricing in North America. In the past few years, the euro’s strength against the yen and a surge in consumer spending from emerging markets in Eastern Europe helped spur revenue growth.

European consumers, who tend to put an emphasis on design, have been more willing to pay a premium for high-end products compared with U.S. consumers.

[fitbabits]

http://kungfurodeo.com/wp-content/uploads/2007/01/chicken_doom_cover_final1.jpg

[TheFlyingOrc]

I'm not certain how this is supposed to make them richer.

[JayVe]

http://kungfurodeo.com/wp-content/uploads/2007/01/chicken_doom_cover_final1.jpg

That, my good friend, is very classy.

[fitbabits]

That, my good friend, is very classy.
Thanks! It took me all of 30 seconds to find it. :)

[JayVe]

Thanks! It took me all of 30 seconds to find it. :)Class and efficiency rolled into one? You are truly a scholar and a gentleman.

[Nura]

Yeah, because 575$ isn't enough for a PS3, let's charge more for it!

[TheFlyingOrc]

Yeah, because 575$ isn't enough for a PS3, let's charge more for it!

This probably doesn't relate to the PS3. Which is why I did not post a DOOM.

[JayVe]

This probably doesn't relate to the PS3.
You know, it wouldn't shock me if this DID apply to the PS3. Sony could just as easily introduce a new bundle that packs-in 2 games and a movie, ups the hard drive size a little, and sell the thing at a new, higher, price point... all while phasing out the current systems.

To many, it would be seen as a bundle, and not 'exactly' a higher price.

Edit: Not saying they will, but they could... and it wouldn't shock me one bit. Everyone keep in mind that Sony has already gone through a LOT of restructuring, cutbacks and layoffs over the last 2 years, and are now focused 100% on profitability. When the economic crisis hit, they found themselves with very little fat left to cut, having already trimmed non-essential aspects of their business.

[TheFlyingOrc]

You know, it wouldn't shock me if this DID apply to the PS3. Sony could just as easily introduce a new bundle that packs-in 2 games and a movie, ups the hard drive size a little, and sell the thing at a new, higher, price point... all while phasing out the current systems.

To many, it would be seen as a bundle, and not 'exactly' a higher price.

That's possible. I very heavily doubt they will just increment the cost of the current unit, though.

[Chris_D]

I hope Sony recovers from this.

[KidCactus]

You know, it wouldn't shock me if this DID apply to the PS3.
I know that at least the Swedish Playstation distributor, Nordisk Film, has already raised the price on the PS3 in October/November, due to the Swedish Krona/Euro exchange rates. So I wouldn't be surprised to see the same thing happen with the rest of Europe now.

[SilentScreams]

High end products? Sony?

I call bullshit.

(I haven't had the best of times with Sony products in the past. Indulge my bitterness)

[Wellscha]

Europeans don't mind being exploited.

[violent]

Another anti-Sony thread? Can we get upset at someone else for a change?

[SilentScreams]

Another anti-Sony thread? Can we get upset at someone else for a change?

To be fair, if they weren't raising prices for some absurd reason, we wouldn't be mad at them.
It's entirely self-inflicted.

I won't deny that some people look for reasons to hate on them, but it doesn't change the fact that they keep on providing them.

[KidCactus]

To be fair, if they weren't raising prices for some absurd reason, we wouldn't be mad at them.

This is an absurd reason...? :confused:

[Sl1pstream]

They're lowering PS3 prices though. There should be a bundle available (soon) that has the 300 Blu-Ray and a remote controller for 299.95 euro.

[Johan]

I don't see how you avoid changing prices with changing exchange rates, especially if they're drastic enough to hit the bottom line, and MOST especially if your customers are willing to bend over and bring the lotion (which I don't know is the case here; we'll see).

Europeans don't mind being exploited.

And the formerly colonized world rejoiced. :D

[violent]

To be fair, if they weren't raising prices for some absurd reason, we wouldn't be mad at them.
It's entirely self-inflicted.

I won't deny that some people look for reasons to hate on them, but it doesn't change the fact that they keep on providing them.

That's some eloquent shit right there. Good work.

[DangerousDaze]

You know, it wouldn't shock me if this DID apply to the PS3.

It doesn't apply to the PS3. This is actually quite old news (http://kotaku.com/5101733/sony-raises-prices-on-products-ps3-unaffected).

[KidCactus]

It doesn't apply to the PS3. This is actually quite old news (http://kotaku.com/5101733/sony-raises-prices-on-products-ps3-unaffected).
That was regarding the UK though, not Europe.

[DangerousDaze]

That was regarding the UK though, not Europe.

So it is. I guess we'll just have to wait and see if PS3 prices go up in mainland Europe. Sucks to be screwed so many times on Sony prices over here.

[Narradisall]

This is the PERFECT plan to make money during a recession! Because people that bought premium goods before aren't possibly going to tone down when they're losing they're jobs from buying new plasma TV's blu-ray players and PS3's all of which are generally overpriced anyway.

At the rate Sony are running their business I wouldn't be surprised to watch their market share start to crumble.

[JayVe]

Sony has again stated that there are no plans on reducing the price of the PS3 this year, or next Spring, and that focus is on profitability first. Even when profitable, we shouldn't expect a price drop.

Our target this year is to break even, not on a cumulative basis, but on an operating business. Our point of view from the 100 markets we work in, we have PS2 which we’re making a profit on, PSP where we also make a profit, and PS3 where, if we just look at it in Euro terms, we are in a profit on software even though we still make a loss on hardware. It’s likely we will get into profit in Europe this year. So SCEE is a solid, safe pair of hands for SCE.

Does that mean once you’ve broken even you will reduce the price of the hardware to stimulate more sales?
No, we are not going to go down in price on PS3 – neither are we going to go down in price on PS3 in spring time either. Absolutely not, whatever you might have heard to the contrary. Our strategy is very much value added.

That doesn’t mean we are going to add pieces of software – we might add original ideas to the machine. What we want is to make the machine value for money.

The whole interview (http://www.mcvuk.com/interviews/394/Action-Station) is an excellent read, and probably front-page worthy.

The whole 'Add Value' approach reminds me of the problems Sega had with the Saturn. The Saturn was a complicated machine, with multiple processors. It was not easy to reduce the cost of the system to compete with the PS1 and N64. As a result, the price of Saturn remained higher than the competition at retail but included bundle deals to help add value to the system.

[DarkDay]

Another anti-Sony thread? Can we get upset at someone else for a change?
This isn't an anti Sony thread, its a post about another dumb move by a company that we use to play games with. Lets be honest and call a spade a spade, they do, we report on it.

If it was MS raising and not lowering it would be posted and people would be just as miffed.

You seem to becoming more of a Sony protector more and more, imo they really don't deserve it.
Also its just a small chunk of news.

Silly Sony, reward the territory that treats you best by raising prices...Fail.

[violent]

You seem to becoming more of a Sony protector more and more, imo they really don't deserve it.


That's not it at all. I enjoy all my consoles equally. My comment was more relevant when this thread was created along with like 3 others and all had the same outcome: Stupid Sony. I was just getting bored of it is all. I agree that news is news.

[DarkDay]

That's not it at all. I enjoy all my consoles equally. My comment was more relevant when this thread was created along with like 3 others and all had the same outcome: Stupid Sony. I was just getting bored of it is all. I agree that news is news.

I think the problem is is that even though its news and should be posted regardless of company, when its Sony related a lot of people jump in and trash, its almost like a bulls eye for some which in turn screws up any rational discussion.

Its too bad really that this crap still goes on.

[violent]

I think the problem is is that even though its news and should be posted regardless of company, when its Sony related a lot of people jump in and trash, its almost like a bulls eye for some which in turn screws up any rational discussion.

Its too bad really that this crap still goes on.

Yeah, I would have reacted the same way if we got 3 consecutive anti-MS stories. In regards to Sony, I agree. The bullseye thing is really old these days and to see the adamant attackers is all too depressing. But hey, this is the internet. You have to know your audience I suppose.

[JayVe]

You seem to becoming more of a Sony protector more and more, imo they really don't deserve it.

I don't see Violent as a Sony apologist at all.

Edit: Oh, looks like it has been covered.

[violent]

I don't see Violent as a Sony apologist at all.

Edit: Oh, looks like it has been covered.

You're my wind JayVe. I'm sorry you had to see what you did in that last thread.