E3 '07: Sony already discontinuing $499 PS3?

[UPDATE] European exec says North American price drop is just to flush out existing inventory, a statement contradicted by US reps, and then confirmed by Kaz Hirai himself.

by

Source: See below.

The official story: See below.

What we heard: The console wars heated up this week when SCEA knocked $100 off the price of the 60GB PS3 cutting into Microsoft's Xbox 360 price advantage. Unfortunately, gamers across the Atlantic won't get a similar price cut on the system. Last night, Sony Computer Entertainment Europe instead announced a new PS3 bundle that would come with two games--Resistance: Fall of Man and MotorStorm--and an extra controller.

When asked why European consumers aren't getting the same treatment, SCEE president David Reeves said that the North American drop wasn't really a drop at all.

"Let's understand what the Americans have done," he told GameSpot UK. "They're going to introduce an 80GB model at $599 with MotorStorm on August 1, and they've got stock in trade of the old model. They're just selling it off, they're not dropping the price. The price from August 1 is going to be $599 because all the 60GB models will have gone. They've got to find a way to get rid of the old stock, and that's what they're doing."

Reeves gave nearly identical statements to several European outlets, setting off a firestorm before the sun rose on the E3 Media & Business Summit in Los Angeles. To help clarify the matter, GameSpot contacted Dave Karraker, senior director of corporate communications at Sony Computer Entertainment America. However, his answer further clouded the waters by directly contradicting Reeves' statement.

"Those quotes from David Reeves are not accurate," he told GameSpot. "As announced this week, SCEA's product offering in North America consists of a 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499. We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future." Follow-up calls for further clarification were not returned.

Bogus or not bogus?: Indeterminate. On one hand, Reeves no doubt has insight into Sony's North American plans for the system. On the other, SCEE and SCEA are not the same operation, and it seems strange for SCEE to downplay SCEA's price cut announcement like this. (Shouldn't Microsoft and Nintendo be doing that instead?) It's also bizarre that SCEE would break "bad news" that--if true--SCEA would no doubt convey at a time of its own choosing, with every last word delicately selected so to ruffle as few feathers as possible.

At the same time, dropping the 60GB system less than a month after dropping its price makes no sense. On top of the consumer outrage at once again being deprived of a $499 PS3 (the original 20GB $499 system was discontinued in April), it could easily have fished out a retaliatory price cut from Microsoft. Such a forced cut might stifle Microsoft's ability to turn a profit with its console business this year (as it has repeatedly stated it will), but that won't do Sony much good if consumers are choosing between a $600 PS3 and a system half the price that plays a lot of the same games.

But Reeves ultimately isn't the one who makes the call on the system's North American price, and SCEA says it's not going to drop the 60GB PS3 for the for foreseeable future. Frankly, discontinuing a system after heavily promoting its price reduction would be a disaster, PR-wise. It also wouldn't do any favors for a system playing catch-up to the 360, which launched a year ahead of Sony's machine, and the Wii, whose budget price and nontraditional gameplay are stoking sales.

Discussion

240 comments
BlackMage009
BlackMage009

why is this such a surprise, we were told this was gonna happen when the 80 gig was released.

I2unner
I2unner

Where's the sense in buying the 80gb version for 100$ more instead of buying the 60gb version which can be upgraded easily if u need more space (what for? whoever is gonna use that thing as a real pc might use an additional usb harddrive or something)

jak345
jak345

ADVICE : DONT BUY THE PS3 I BOUGHT IT ONE WEEK AGO AND REGRET BUYING IT , buy the 360 it has more games and better online and i suggest buying the 80gb ps3 in november when good games come out now the ps3 is nothingand what sony did was cruel

majesticcryx
majesticcryx

Well,I`ve got nothing against PS3 (I´m owner of PS2,PC),but as I look the price between the XBox 360 & Play Station 3 is big difference.The price of PS3 is a little big huge.If the Sony wants to see,that the customers will stay by PS3,then they have to change a price.

Ratpads
Ratpads

hopefully we get more "stock flushes" then by Christmas the PS3 will come with a 80GB bundle at $399. i can almost see it "this is to help get rid of old inventory for the christmas sale rush we are expecting, this is not a price drop" =D

Faephoenix_Eyes
Faephoenix_Eyes

lol imo 60gb will be a good one to buy. I hardly am able to fill up 60gb of harddrive on my computer from just videos/music/pictures. the only way i can fill them up if i install lots of games like Supreme Commander, Oblivion, Command and Conquer, FEAR and such. so i doubt havin another 20GB for another $100 dollars will be worth it. So the $499 for the 60GB is the best =)

Vader_300
Vader_300

According to Game Informer, Sony is making $400 40GB PS3!!! The only catch, is that it has no backwards compatibilty :(

luke_divers
luke_divers

I figured this would happen when they announced the price drop in the first place. Seems like Sony constantly decides that the only thing better than shooting themselves in the foot is to go get a bigger gun and do it again. So far it's lookin like I'll be stickin with my PS2 till the next generation of consoles comes out. By then, with any luck, the current Sony leadership will all be out the door, and maybe we'll be better off. And if that doesn't happen, well, I can dream, can't I?

PhilElsen
PhilElsen

im sorry are sony going to do this every couple of months. first the 20GB then the 60GB now the 80GB. How many types of PS3 are there going to be??????

ajcali08
ajcali08

it costs them 700$ to make and they sell it for 500$

Vader_300
Vader_300

Sony doesn't care about their customers, they just give us a $600 paperweight and say "there you go, have fun" . This is why many PS3 exclusives are moving to the 360, and I have lost all respect for Sony.

matty_sen
matty_sen

whaooo and i thougth microsoft was hartless now this!(am not bein a fanboy) they did the same thing with killzone 2 at e3 2005 sure they lived up to the expetitons but after they found out people where on to them they started from scratch , there just like microsoft way to gready

Belka_Boy
Belka_Boy

What is Sony doing? How stupid would they be to drop the price and then discontinue the model? And then they make an 80GB ps3 bundled with a game? If they would have thought about that they would have priced the 80GB ps3 for the same price as the 60GB after the price drop. kI say it's just another nail in the Sony.

jmdude
jmdude

So, will the SONY price the 80GB model for $699 if the 60GB model will still be in stock?...

ParasiteArtist
ParasiteArtist

Its not really a price drop when it is the same price as the old 20g model. How about dropping to a real price? Make a competition out of it. Make it so I have to say, "for the same amount of money, I can get xbox 360 or a Ps3..Let me think about it..."

sirhamalot
sirhamalot

"strawberryheart I hate to say this (being more of a Wii and 360 fan) but I feel sorta sorry for Sony. It has made a system that is too powerful with to many bells and whistles. I want a PS3 but not for to much, however looking on their side its not looking good. Sony is losing so much money everytime they sell their system that it might really hurt them (which makes some of you happy?) But maybe everything will work out over time, I mean there are so many PS3 game esclusives that it might just save the day for Sony. After all we all know what happened to the Dreamcast (which is still one of my favs!!)" The Dreamcast failed because of a few reasons none of which were the price ($199). At the time Sega/Tommy was strapped for cash, EA said that it would not develop for the Dreamcast do to its' graphics card, and Sony was declaring that Toy Story graphics were capable on its' fancy new system. Sony turned out to be lying (which is why I wouldn't mind if they got out of the game market), and Sega was broke (despite me buying over 35 games for the system). Disclamer: I have never had much luck with Sony products, and am still bitter about a broken PS One, PS2, a TV, two Walkmen, and a few consumer products.

BlackRing
BlackRing

Hey! Any price drop is welcome news in my mind! The marketing game is speeding up in this industry, as expected. It's a day by day situation in the platform industry now. Microsoft is under the gun...and Sony is the shooter!

scarletsnake
scarletsnake

[This message was deleted at the request of a moderator or administrator]

Brain_Fart
Brain_Fart

I really wish Sony would get their game plan together, for the sake of us consumers. Kind of hard to go for a PS3 when a model might be discontinued, discounted, replaced, etc. so quickly. I'm going to wait til' the holiday season to see the real fireworks and make a choice then. Sony better at least be straight by then, else even more trouble will befall them.

Acuatico
Acuatico

Na na na na Na na na NAAAAA HEY HEY HEY GOOOOOOOODBYE. You had a nice run in the industry Sony.

CALBORN
CALBORN

Actually, I kinda happy bec the SONY company finally decided to drop the price to $499 but the problem is they are kinda stupid to say that the drop price is just to make the Ps3 60Gb old stock sell away.. This word may cause people think that Ps3 are getting worst and no one are buying Ps3... The News about coming out a Ps3 80Gb is not a big NEWS either... they juz add a game in to a bundle and the price are back to $599.. What are they thinking ?????? If a Ps3 60Gb plus a game is also equal to a $599 price ,wat the use of droping the price?? They idea to sell a console base on the old days where Ps2 and Xbox and Gamecube fight were giving a GOOD game... Think back last time , WHY Ps2 are much better than Xbox although Xbox provide better Grafik and high resolution is because Ps2 have nice game such as Final Fantasy, Kingdom Hearts, MGS,DevilMayCry and many other great game ... But now Ps3 are doing the same thing but in opposite way . this time PS3 are Xbox and X360 are PS2... X360 have so many successful game and Ps3 are losing their customer game like MGS4 and DevilMayCry. All of those game are Changing thier mind and go to the enemy and make peace , so they also could earn some money and not depend only on Ps3...HAIH~~~~~~~ Come on PS3 , PLZ AND I MEAN PLZZZZZZ make a good game and make my money worth buying a Ps3

Danstool
Danstool

As time passes, anything will eventually drop from it's normal price value. It's all part of marketing; (always sell high when it's out, then drop a little, to not loose the product's interest). However, i'm kinda glad PS3's price is dropping cause eventhough it has a good harddrive with lots of memory space, i personally wouldn't buy one for 700-900 dollars! But for now I'll wait, and stick with the wii.

PrinceUchiha
PrinceUchiha

I don't get Sony, if you had a system that was $599 and you had to have a price drop what's the point of making a new system selling 4 $599. Smh, make some games.

CaribouLou5
CaribouLou5

They never really 'dropped' the price anyways, the current prices are identical to the launch prices. No matter what size hard drive, they need better games (and more of them) and lower prices, as in , lower than $500. To release a 'new' $600 system is the exact opposite of what people want.

strawberryheart
strawberryheart

I hate to say this (being more of a Wii and 360 fan) but I feel sorta sorry for Sony. It has made a system that is too powerful with to many bells and whistles. I want a PS3 but not for to much, however looking on their side its not looking good. Sony is losing so much money everytime they sell their system that it might really hurt them (which makes some of you happy?) But maybe everything will work out over time, I mean there are so many PS3 game esclusives that it might just save the day for Sony. After all we all know what happened to the Dreamcast (which is still one of my favs!!)

PS2fan2000
PS2fan2000

Sony's days in the video game industry are numbered. The PS2 is the only Sony system keeping Sony alive.

mdavis999
mdavis999

i agree in europe we get ps3 and £400+ in america with the price drop its more of the same price all over, and Europe is getting A pack with two games and a controller :D nice sony and E3 was awsome

thephoenix365
thephoenix365

sony shoots itself in the foot.......2 E3's in a row......must.....not....sack....staff

paladin75
paladin75

To top it off, ive been told that if you purchase a PS3(or any BluRay player) you get a choice of 5 free blu rays. seems like a good move to me. still got the 360 for games and im about to get the cheapest priced blu ray player around that happens to play MGS4......good move on sony's part(in my opinion)

rafarmer
rafarmer

SCEA and SCEE just can't get along with each other, can they...?

xAngelxDustx
xAngelxDustx

very good point surppo...the playstation 3 is simply BALLIN =) every1 go out a cop a PSTriple...word 2 motha

surppo
surppo

it doesnt matter what it cost i got the homeboy hookup when girls see my system that cost more than their rent (ballin wit no basketball) they will be motion sensing my sexaxis controller not to mention the chrome chicks are attracted to shiny things lol. yall need to quit complaining all the time you chose this addiction it didnt choose you. quit being cheap its like complaining about the price of a cadillac you bought cause its a cadillac not cause its economical. buy a wii if you wanna be cheap girls like them too (offer to let them play with your wiimote) you might get some interactive entertainment lol. seriously i've never seen people take playthings so serious relax and fun cause you wont have any money.

osxgp
osxgp

Sony needs to figure out what they are doing. As a consumer, I am completely lost as to what their strategy is nor do I have much faith in them right now. How do they plan to climb back to the top when they can't even figure out what system they want to release, discontinue, or discount?

XxArmoredAcexX8
XxArmoredAcexX8

too bad awesome games for the ps3 took are coming in a year :( killzone 2 and ratchet and clank look badass but and xbox being 300 bucks.... welll then you can just spend more money on games like gears and armored core and ACE COMBAT 6

Knivez0r
Knivez0r

Bought my PS3 for 600 :| should have waited and i would have a 80gig right about now -_-

DVD7227
DVD7227

ALZex is right, people should continue to use what they have and wait till they drop them in christmas, the stores will be loaded with customers by this christmas

ALZex
ALZex

whats the moral of the story..... if you gonna buy ANY console... ..... wait a little bit longer.. at least til christmas.. when the really big specials will come out!! ... lets face it.. The really kick a$$ games coming out .. are all coming out in the Oct-dec period. Till then my Pc will have to do.

PeachyRamune
PeachyRamune

Blazenglory: You are the worst case of fanboyism and viral marketing I have ever seen.

Blazenglory
Blazenglory

Despite any praises or critics to either of the systems does not matter, the fact of the matter is this...the 360 is selling, the PS3 is not, that is why they are discontinuing these models, they think a little upgrade will justify price and it wont. Most people who buy a gaming console want that...a GAMING console...not some expense mediocre cpu with games on the side. Games should be number one and that is where PS3 messed up. Yes more games are coming to the 360 that were once exclusives. The 360 has amazing power, and yes a more POWERFUL graphics card, but you know what is key....the ease of programming it. Producers aren't going to waste months more time on a Ps3 exclusive that will only look slighly better then a 360 game that would have been done already. Sony kinda punched themselves in the gut with unfriendly configuration making it more alien then user friendly.

Blazenglory
Blazenglory

[This message was deleted at the request of the original poster]

skasucks478
skasucks478

Did you all forget about the Blu-Ray capabilities? This is only good if it get's crowned the king of HD disk media, but still you're also paying for that drive. The amazing processing power of the systems (http://www.gamerbeef.com/article7.html) is an added plus to a great technology that xBox 360 doesn't compare to. The system may seem a little weak to a lot of games out for the 360, but remember a lot of game companies have yet to unleash the full power of the PS3 (most were in a hurry to release games for the system and didn't put a lot of time or did bad ports). If you have the money, it's worth it. The day will come when you laugh at those sad people who are left in the dust with their 360's. 360's have a lot of perks that trump the PS3 in some areas (ie: networking with your windows pc) , but you get that HD drive (you have to buy extra with xBox) and a console that is worth every red cent you pay to get it.

nicholasnavarro
nicholasnavarro

sony is very sneaky getting a ps3 to 499 and saying you won't have this for much longer so you should buy it now which at the same time is getting their install base so third party developers won't keep on porting things from the 360 even right now developers are starting to develop for ps3 and port to 360. In my mind I think sony could actualy win if they stop stabbing themselves in their back.

Grim_Reaper018
Grim_Reaper018

This is a bad move by Sony, I mean this might help sell there software sales with the new bundle being the only way to obtain a PS3 during the holidays but then again it will cost the same old $600 US. This got Sony in a loop race to fight for profit. If this is how they want to play their game of profit then count me out. That $600 price tag is just the breaking point for a lot of casual gamers.

BrendanLee13
BrendanLee13

wattttt.. Haterz i was just about to buy a PS3 let see if theres still more 60gb ps3s