Sony already discontinuing $499 PS3?

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...

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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 apparently 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 an 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499. We will have ample supplies of both models to meet the needs of our consumers for the foreseeable future."

[UPDATE] Following a flurry of confusion, the matter was apparently settled by none other than Sony Computer Entertainment's president and CEO. Speaking to Norwegian game-news outlet VGTV, Kaz Hirai said in no uncertain terms that the 60GB version is being phased out.

"From a hardware perspective, the $499 price adjustment we did for the 60GB version for the American market, we're no longer in production for that product," he said in an on-camera interview. "Once that product is gone from the retailer shelves, then we're back to a $599 SKU only, so it's not like we have a two-price strategy in the US market. We found out very early on how consumers react to having just one SKU as opposed to two."

[UPDATE 2] SCEA has since confirmed the production cessation to GameSpot, but Karraker emphasized it would not be sudden. "The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted," he said. "We are offering a full-featured PS3 for $100 lower than the original price and will do so for months to come, allowing consumers the opportunity to acquire this model at this adjusted price."

Bogus or not bogus?: Not bogus, unless Hirai's bosses at Sony corporate change their mind.

Discussion

222 comments
ooJmong
ooJmong

Now THAT'S what I call business. Hey, consumers may hate it, but that's an ingenious way to raise sales by 2500%. haha And half of me is being an a$$. One reason I'm not incredibly saddened by this piece of news is that I got the PS3 after the price cut. YESSSSS

Hekynn
Hekynn

BAH Still toooo damn exspensive sony! I'm getting the Wii haha sony! But I will play your SoE games though :)

Seraphim_24
Seraphim_24

Just glad I Got mine while it was natively backward compatable. Let's face it Microsoft has not fared well in that department and Sony going the route of emulation means that some of our favorites won't work on the new system until summer 2099. Come on Microsoft make the other 24 of my 60 games work!

Gorilla97
Gorilla97

wow! they should have just called the PS3 the "F U", because that's what they're basically saying to everyone that's bought a PS3 so far. i was actually considering purchasing a PS3 after i heard about the price-cut, but not now. no way. no chance.

WGR_Darrin
WGR_Darrin

I seriously no longer have any idea what the hell Sony's trying to do. Do they want me to buy the PS3, or don't they? This sneaky price swapping is nothing more than basically assuming that gamers are idiots. This won't end well.

Lord_Satorious
Lord_Satorious

Sony doesn't want to sell a $500 PlayStation 3, they're taking a huge (about $400 at time of launch) loss on hardware as it is. So they modestly upgrade the hard drive while removing the Emotion chips, thus about equaling if not reducing the manufacturing costs, and put it out at the same price point as they've had all along. The 60 GB PS3 price cut and introduction of a 'new' 80 GB PS3 was a clever marketing move to get people to buy up remaining PS3s, and once the 'old' (likely superior) version is gone, all that will be left is the 'upgraded' version for $600. Sony and the press media made a big stir about the whole thing, but the way I see it, the situation is unchanged. A PlayStation 3 is still $600, only now backwards-compatibility is done through emulation, not hardware. Sony managed to spin what would otherwise be bad news into good news, because we all assume 'price cut' is a good thing. In this case, it's the consumers who are paying to buy what is essentially a dumbed down product. But hey, it's just backwards-compatibility right? It's all about current gen hardware and Blu-Ray, not last-gen hardware and all those old games. Then why do I feel even less inclined to buy a PlayStation 3?

KeLyfe
KeLyfe

Thats Crazy... And I'm waiting for the PS3 to lower it price to buy it too.. I'm for it to at least get to 300... Looks like i'm b waitting for a while...

DEMONiAM
DEMONiAM

Make up your mind, Sony.

Zguntype0
Zguntype0

This angers and saddens me because I was hoping to see this price cut stay so I can finally get a PS3, but what will I do with 80 GB of space I thought 60 was enough. trading the backward capabilty for 20 GB and a $100 more is not a fair trade at all I would much rather keep the stuff than get 20 GB more and paying $100 more. So I will really try to get the PS3 before this year is out but if they want me to buy the $600 version instead they are going to have to add a lot more than 20 GB.

fatafreak
fatafreak

bogus or not bogus?: its bogus, they would do this thats just retarded, they arent going to limit it to one console, the 360 has 3 different systems out, the PS3 will have the 60gb and the 80gb.

easteast
easteast

I don't think the 60GB PS3 needs to be made if there's still a 20 and 80GB versions.

mjaffery
mjaffery

weather they fooled us or not... it still seems like the 60 gig model just got a $100 cheaper... good for a nice linux box

foxhound009
foxhound009

It is a real price cut.... they're just denying it! Cuz the 60 gb emotion version of ps3 (more expensive to produce) doesn't sell... they know now theirs prices are too high so they're making a nice price drop... and to not lose money (by paying more for production) they're making a cheaper version (do you really think a 20 gb is worth $100 ?) that after few months also will be $100 less.... simple trickery

TTDog
TTDog

So not only are Sony screwing the PAL terroritories by refusing to drop the price, remove the emotion chipset, fail to offer the 20Gb version, they've now discontinued the 60Gb version... so PAL terroritories are now paying over the top for old redundant stock.... way to go Sony.

bomber787
bomber787

if you have a 60 gig, and your mad cause a 80 gig will come out, just upgrade your hard drive...... that simple stop crying, cause the hard drive is upgradable. ty.

darthzew
darthzew

Sony... you are one of the strangest companies in the world. How is this going to help you? Really, look at this, Sony is charging another hundred dollars (and no alternative) for 20 more gigs of space and Motorstorm. Microsoft is charging eighty dollars more for one hundred gigs of space extra and the other goodies that come with the Elite. Is it me, or are they getting desperate?

ScottEFresh
ScottEFresh

Sony can go to hell. They actually had me on the fence believe it or not as well but after this move I will be buying a Falcon 360 with a 3 year warranty.

RaiKageRyu
RaiKageRyu

See this Sony? _|_ It's my middle finger.

mkurts
mkurts

Thanks Sony - you've done it again. Why don't you just discontinue the PS3 for good so that it doesn't die a slow and painful death in the market ?

thekey
thekey

These things are just flying off the shelves! This thing is starting to look more and more like the 3D0.

Symphonycometh
Symphonycometh

I see a lot of members speaking out of Sony spite rather than my favorite pastime: logical thinking. This gen has the saddest fanboys...

hobojoe_
hobojoe_

It seems to me like the only reason for all of the confusion and clearance strategies are to increase the demand for the system...i doubt they'll be out of 60GB models anytime soon.

Dreski83
Dreski83

HAH! :lol: who else does flip-flops like this...? over payed sports players, criminals, psychos, and a good handful of women... quite the crowd to mix with there Sony :P Oh well, can't really knock on them for the business aspect of such moves... they are selling a quality BLU-RAY player and loads of junk movies for a reasonably cheap price, that has to count for something :roll:

Mkherkzen
Mkherkzen

I don't know about you guys, but I would feel cheated. The price drop is just a promo to get rid of the last 60GB models and, later on, it will be only $600 again...for something that's not worth it (IMHO). PS3 + 20GB + Motorstorm (for $50-$60) - Emotion Engine doesn't equal for $599 for me.

Vash67
Vash67

Now his puts me in an awkward position... Do I get what was the best console, and more than enough to meet my needs with 60GB, for $500 now... or do I wait to get the overkill that is 80GB and a game that I'm indifferent about for $600 later.....

Robert-A
Robert-A

Just means I'll get one within the next week instead of a few months as I want the emotion chip. It is still a crappy thing to do let's just hope they have a better trick up their sleeves.

LordBelgarion
LordBelgarion

Sure, this will make sales go up... (roles eyes)

msudude211
msudude211

Probably just a rumor. But hey, who knows?

Gamingcucumber
Gamingcucumber

If moving out the stacked inventory is all that they are going to do and call it a price cut....I mean......that's a Sale, not a price cut....

bam11bam
bam11bam

I call BS.....I say Sony is continuing to lie to their consumers and only want them to buy a PS3 desperatly right now and making them think that if they dont buy 1 soon they will miss out on a "good deal"(i guess:roll:)

mamoru
mamoru

okie...lemme get this straight.... the price drop aint a price drop but the price drop was needed 2 sell out all the 60GB which will b out of production...and then the 80GB will replace the use 2 be $600 60 GB??...............WTF?? u know wat theyre doing?? theyre killing all ps3 owners of the previous GB's...this is confusing as heck... i was convinced 2 buy a ps3 after the current E3..but..WTF?

jakeboudville
jakeboudville

if this is true..I'll doubt i'll get a ps3 soon

Jermwarfare
Jermwarfare

i dont see how anyone can put any weight into anything sony says anymore....man,thats alot of any's. but seriously,how shady can you get?

Crystall3d
Crystall3d

if heavenly sword + Kill zone 2 + tekken 6 + wiining eleven 11 + mgs4 was out already , i would be paying whatever the price (even 1200$) for my ps3 gladly but atm , not worth a penny

BondJames007
BondJames007

That completly sucks. Why don't they keep making more cause ever since they lowered the price hella people bought PS3s. We sould have a petition to keep the 60GB PS3s. I still haven't bought one yet. MAKE THAT PETITION!! MAKE THAT PETITION!!

kcoreht
kcoreht

This makes total sense. Microsoft didnt do the expected thing and drop the price of the xbox360 after Sony's initial price drop. Once Sony saw this they felt they couldnt continue to give the consumers a good deal. Its funny when these company say they dont pay attention to there competitors. Lame but funny. $500 is still too much anyway. Call me when a premium Xbox360 is $300 and a premium PS3 is $400. Until then I will continue to play my PS2 and XBOX.

jopak
jopak

i need sell my 60 gb PS3 for buy the 80gb

Awakening124
Awakening124

Sony's move itself makes sense, slashing the price of a unit they're no longer producing to clear it out of the warehouse, but the PR people promoting it as a straight up price cut and then coming out with the truth is just flat out stupid. I'll be getting my hands on a $499 PS3 though, I just hope I can raise the money in time.

vaejas
vaejas

Selling your hardware at a loss and including 1 or 2 games IS a price drop. But now all I need to decide is do I want to have the emotion engine or not... And the answer is, I'd rather buy a spare PS2!