Sony: "Being cheaper than your competitor is never a bad thing"

SCEA CEO Jack Tretton acknowledges that lowest-priced system is not always the most successful, but believes consumers will gravitate toward PlayStation 4 value proposition.

SCEA CEO Jack Tretton was backstage during E3 rehearsals when he learned that the Xbox One would go on sale for $500, a full $100 below the PlayStation 4's $400 price point.

The executive told Bloomberg in a new interview that Sony saw this pricing advantage as a "positive," though he said cheaper doesn't always mean more successful.

"I think ultimately, the gamer looks at ten-year product lifecycles; they look at the software offerings; they look at the value proposition," Tretton said. "And the lowest priced system isn't always the most successful, but being cheaper than your competition is never a bad thing."

Tretton said all the pieces are in place for the PS4 to be successful at launch this holiday, noting it all comes down to execution at this point.

"I feel like we've got the gamer on our side; I feel like we've got the development community on our side; and now we've got execute," he said.

Asked what the most important thing to "get right" with a product launch like the PS4 is, Tretton said this is communicating the value proposition of the system.

"The most important thing to get right is the consumer proposition, the value proposition," Tretton said. "That people say, 'I saw it, it looks great, I've got to have it.' And if that's the answer, then you've got a winner on your hands."

The PS4 launches on November 15 in North America, November 29 in Europe, and in 32 countries total by the end of the year.

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
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1183 comments
abcdefgabcdefgz
abcdefgabcdefgz

yeah yeah just show us the games. We wont know anything until later on with when we see more of the games until then who cares what system is stronger or turns on with voices?

Gargus
Gargus

400 bucks isn't "cheap" persay. But I think the PS4 is a better value because it isn't full of pointless things that drive the cost up more than it needs to be.

Sony seems to be trying to give gamers more value with the hardware superior ps4 for less money than the xb1, or the PS+ system where you get a 18 games right off the bat and 5 more each month with other benefits for just 50 bucks while XBLG only gives you 2 games a month for more money.

So despite being less expensive I don't think cheap because cheap to me sounds like poor quality. Ive paid 20 bucks for headphones that were cheap while 3 dollar ones I bought were great.

Bahamut50
Bahamut50

@Gargus He said cheaper, not cheap. There is a small difference xD

Bladestop
Bladestop

Looks like they learned from the PS3 launch.... never again launch a system at $600 for the cheaper version.

Zetsuie
Zetsuie

Of course being cheaper than your competitor is NOT A BAD THING! if you can give your audience complete satisfaction and make them want your product while being less expensive than the competitor, you've won the race!!!  i mean lets go back to when they wanted us to tweet whether we were for xbox one or ps4.....what else is there to say? not only is xbox one over priced....but the whole online 247 thing and you cant play old games...your not going to market a product very well like that AT ALL, hasn't worked for microsoft now and it wont work for them later on until they decide to step up their game and listen to the consumer. And before anyone says i am butthurt, i prefer xbox 360 over ps3 anyday and i would like to say the same about the xbox one over the ps4 but i cant do that right now.

CaptWaffle
CaptWaffle

With how awful the economy is..... that 100 bucks will make a bigger difference than it would otherwise.

Algearond
Algearond

I like Sony much more the M$ in this regard, but I still cannot forgive them the security breaches they had a few years ago.

Bahamut50
Bahamut50

@Algearond I can. People make mistakes. Instead of ignoring theirs, they gave us free games in an attempt to say "we know this can't really make up for it, but we at least want to try". Ugh, the bias.

mtait01
mtait01

What he said is 100% true. Just look at Samsung at the moment, raking it in

FollowY0urBliss
FollowY0urBliss

Oh, this is the top story.  cool.

Goodnight everyone, I'm sexy!   Hah.

lazhyz
lazhyz

"I feel like we've got the gamer on our side; I feel like we've got the development community on our side; and now we've got exeggcute." Gen 1 people should appreciate that. Thumbs up if you get the reference?

Damnation_6
Damnation_6

A Xbox One story not on top of the news page? What sorcery is this?

DeViLzzz
DeViLzzz

@Damnation_6 If I had it my way the story on MS switching marketplace to cash would be the top news story here on the site.  MS just giving me another reason to spend more on Nintendo or PC. While Sony has been looking like the good guy they still are the same company that had taken out patents and whatever else on a system to block used games so they can't be trusted either. Sony is cheaper and the better choice for two next gen consoles coming out for many reasons right now but it doesn't mean I should give them money either.

soaduk
soaduk

Am I the only one finding gamespot a really **** place to be these days? Every article is just followed by 100000 comments from butthurt sony fanboys...it's really tiresome for us real gamers. Please can you all just go and play on your vitas or something?

CaptWaffle
CaptWaffle

@soaduk 

Its both sides.  Your comment doesnt really help..... its just more mindless brand loyalty.

Bahamut50
Bahamut50

@soaduk Idk man, every site for gaming has butthurt ANY fanboys. Can't hate on the gamespot community when it's also any other major gaming news site.

minhnodda
minhnodda

WOW this guy is a genius. Been cheaper is never a bad thing. No tell that too ninento. Been cheaper is good during a recession. I should have sold my pc and bought the ps4. Oh wait pc games are cheaper.  humble pack, and steam summer sale. guess 30-40 dollar worth of pc game is always better than 1 50 dollar ps4/xbone game.

DeViLzzz
DeViLzzz

MS getting rid of MS points another reason to go to PS4 .....


and hell the console is cheaper and better hardware wise anyway

A8ADD0N
A8ADD0N

@DeViLzzz 

Am I missing something? How was that a bad thing? MS Points is one of those things that no one ever cared for, and now that they're changing it to real currency that somehow displeases you? Ohhh, right...I almost forgot this is the internet.

DeViLzzz
DeViLzzz

@A8ADD0N People were able to buy MS points cheaper than from MS and do it on a very regular basis and thus you got more value for your points.  Also people mentioned today that when MS put up the new cash store they raised prices on various items.  Gratz MS on ****ing me and others who were smart enough to know MS points were a good thing.

krystyla
krystyla

They should have paid to get more than 10 PS4s at gamescom. I did not bother standing in line for 4 hours just to try the controller. There were dozens of X1s everywhere albeit only with minor titles ala lococylce but that sufficed to fall in love with the controller once again

Primeyuri
Primeyuri

I hope both consoles do great. That way both companies will keeo trying to do their best.  

Zetsuie
Zetsuie

@Primeyuri if anything they are butting heads together and microsoft is feeling the headache


so_hai
so_hai

It can be bad to be cheaper if you are also inferior. I'm not saying that the PS4 is, but there's no absolutes like that in the free market.

kurtven
kurtven

Wow I really love to live in Little Denmark,

The stores have alredy set the prices to 716$ for the PS4, so I'm getting mine from the UK

mrsniper83
mrsniper83

I love how so many people bash the xbox but yet they won the console war over the years, have a better online community, and have you ever noticed that pro gamers are always playing on xboxs.Hearing all this fanboy crap has really put me off as a gamer, it doesn't matter what sony or Microsoft will do because you all won't be happy.

puukusa
puukusa

@mrsniper83 Xbox won console battles, but PS won the war. Also, not sure what do you mean by "community" - tools or people. It you think that people on xbox side are better then you are a tool. If it's software - I'm fine with PS stuff + PS Home is quite cool.

I'm pretty sure pro gamers don't play consoles at all.

McGregor
McGregor

@puukusa You'd be wrong about pro gamers, they do play consoles. For example, you think all those pro-gamer halo tournaments are played on a PC? Anyway, I'm not sure who won the "war" or "battles" but I know that I don't play my PS3 as often as my 360, and I don't play either of those as often as I play games on PC. I'd like to see a "battle" or "war" where the gamers win...

puukusa
puukusa

@McGregor "Halo pro-gamer tournament" now that's just silly. Just because someone adds "pro-gamer" to the title of the tournament, it doesn't really make it pro-gamer.

Likewise i have both, but my dustcollector is xbox. First party games (IMO - inFamous 2, Uncharted, GoW, Heavy Rain, the last of us, let me add upcomming Beyond to the list) are better on PS than xbox.

And I don't get all the "xbox better controller" talk - it's cheap chinese crap. Buttons make cracking sound. after a year of hardcore use, battery contacts keep disconnecting during the game.

I've learned my lesson - not getting both consoles next-gen. I don't like Halo and "Army of two" is ok enough to skip Gears of War

McGregor
McGregor

@puukusa @McGregor I'm just waiting to see which one has the games I want, that aren't also available on PC (chances are it will be a PS4, at least at this point).

As for "pro-gamer" if they are getting paid for it, regardless of skill level, makes it professional.

Halo went down hill to the point that it's not even worth a purchase anymore, and I don't play the multiplayer because it's boring to me...I gave up on gears after the end game boss in gears 2 was so easy I didn't realized I'd beat the game until the credits rolled...

puukusa
puukusa

@McGregor in that case we have a "pro-gamer poker tournaments" going on at my house ;)

McGregor
McGregor

@puukusa That must be a crazy game of poker! I'd hate to come over and play for fun.

Good anology, but not quite the same thing. That's like saying "we play football in the backyard and take bets on who wins" vs "I get paid to play football".

so_hai
so_hai

@mrsniper83 They may have a better online community, but so they should. After all, they paid for it.