No price cut! Logic?

As expected it was confirmed by Sony (not that long ago) that there will be no price cut this year. I wonder what if it was 100 bucks cheaper? Do you think sales would be better?(I know i would buy one if it was cheaper) After all isn't it that software makes money instead of hardware and should that be their goal to have more hardware out there?

Can someone explain me Sonys strategy?

As expected it was confirmed by Sony (not that long ago) that there will be no price cut this year. I wonder what if it was 100 bucks cheaper? Do you think sales would be better?(I know i would buy one if it was cheaper) After all isn't it that software makes money instead of hardware and should that be their goal to have more hardware out there?

Can someone explain me Sonys strategy?

Vojkan80001

Who cares, i bought one at 599, well worth the price.. 

I believe Sony is waiting for the killer app games to come out and see how will that affect sales. If it does sell well then Sony shouldn't be so worried and wouldn't have the need to drop the price. If it doesn't sell well then Sony will most likely drop the price.

Sony can afford to not have enormous amounts of systems sold, if they were desperate they would lower the price this year. Sony is playing the wait and see game.

This is exactly the example of people who are not happy no matter what...

Sony is losing about $300 or so dollars PER SYSTEM already. They are losing money on every single system they sell, and even more on everyone they arent.

The system doesn't crash, is quiet, is the most powerful system, has a blu-ray drive, has free playstation 3 network, is a multi media device, a home entertainment system, and a great system.

It's pretty much the cheapest blu-ray player (and it's a pretty good blu-ray player at that)... And it's WAY more then just a blu-ray player.

Yes, sales would go go up if there was a price cut... But people can't just be happy that it's already too cheap for it's own good.

It's more powerful, has more to offer, runs better, and has a blu ray player... And the 360 Elite is almost $500... Just $100 cheaper. And the only thing the elite has over the PS3 is the 120 GB hard drive.

I can see what you are saying... And that most people are not going to pay that much for a video game... But it is more then a video game, and I wish most people would realize this.

they say they cant drop the price anymore because it cost so much to make. I think it actually cost $850 to make. So its hard to drop the price any time soon. Though i feel they could have said that so people dont wait for the price cut and buy it now.  But no matter what over time the price will go down because they eventually find ways to make it with cheaper parts, make it more efficiantly. For example blue laser diodes are supposedly becoming cheaper, and the cell chip i read somewhere that they can make it smaller, this all leads to dropping the price. Look at the psp, it was 299 when it first came out a couple years ago, now its at $169 (note its a basic package, only system and plug now) I expect the price to go down $50 at least for the holidays, possibly $100 with the stuff i explained before.

The strategy i think is that the price is not the end of the world, this system is going to be out for 10 years (note ps2 is on 7+ now) Note the quicker the price goes down on a product the shorter the life of the product is. So while 360 keeps droping its price, a new xbox will have to be made in about 4 years from now. And the ps3 will have 5 more years left and at that time it will be cheaper and most likely dominate the market like the ps2 is now. Ps3 will almost cover 2 life cycles of MS consoles during its life, so its a great value!

i have been trying to read their strategy myself. The sytem being future proof is a great idea. Once HDTV and Bluray takes over (note it took 3 years for dvds to become mainstream) the ps3 will be right there waiting as a no brainer choice.

Ps3 will be slow and steady for a couple years then pick up alot of steam. Also the fact that its really hard to make games on makes sure that as the years go on they will only look better and better. Lastly it has been said that its a better choice to make games on ps3 then port over to 360 (bc of the multi core thing) so thats a big plus. So will be getting better versions very soon.    

If Sony were to lower the price by $82 they will loose over $1 billion in revenue. Howard Stringer promised the stock holders a 5% profit margin by the end of the year, it isn't going to happen by the PS3 loosing them an extra billion dollars.

At this moment in time, all Sony are focused on is getting the price of the PS3 down, so they can start selling them at a profit. Sometimes:

profits+revenue>marketshare+yourneeds

Sony can't inpliment a price cut until it starts seeing their cost-per-unit come down.  That's already begining to happen with cheaper production processes for the Bluray diodes, but they'll need to see drops in production costs across the board before cuts can be made. 

As expected it was confirmed by Sony (not that long ago) that there will be no price cut this year.

Vojkan80001

Sony will probably wait unitl MS cuts the price of the x360. Sony cannot afford for the x360 to increase its lead even further. So, it will be forced to cut its price when MS does.

Regardless of what the fanboys believe, a $600 console will never be a mass market product. History has proven time & time again that consoles enjoy their best sales at the $200 price and below.

Both the x360 and PS3 will need to get down to at least $300 before sales will truly take off.

I heard they were haveing a price cut in august or early september by a $100 which is great for people who are still saveing up for it! ;)jacky531

they say they cant drop the price anymore because it cost so much to make. I think it actually cost $850 to make. So its hard to drop the price any time soon. Though i feel they could have said that so people dont wait for the price cut and buy it now.  But no matter what over time the price will go down because they eventually find ways to make it with cheaper parts, make it more efficiantly. For example blue laser diodes are supposedly becoming cheaper, and the cell chip i read somewhere that they can make it smaller, this all leads to dropping the price. Look at the psp, it was 299 when it first came out a couple years ago, now its at $169 (note its a basic package, only system and plug now) I expect the price to go down $50 at least for the holidays, possibly $100 with the stuff i explained before.

The strategy i think is that the price is not the end of the world, this system is going to be out for 10 years (note ps2 is on 7+ now) Note the quicker the price goes down on a product the shorter the life of the product is. So while 360 keeps droping its price, a new xbox will have to be made in about 4 years from now. And the ps3 will have 5 more years left and at that time it will be cheaper and most likely dominate the market like the ps2 is now. Ps3 will almost cover 2 life cycles of MS consoles during its life, so its a great value!

i have been trying to read their strategy myself. The sytem being future proof is a great idea. Once HDTV and Bluray takes over (note it took 3 years for dvds to become mainstream) the ps3 will be right there waiting as a no brainer choice.

Ps3 will be slow and steady for a couple years then pick up alot of steam. Also the fact that its really hard to make games on makes sure that as the years go on they will only look better and better. Lastly it has been said that its a better choice to make games on ps3 then port over to 360 (bc of the multi core thing) so thats a big plus. So will be getting better versions very soon.    

winner-ps3

Hate to say it but he's right....Nice observing and investigating dude.....

[QUOTE="jacky531"]I heard they were haveing a price cut in august or early september by a $100 which is great for people who are still saveing up for it! ;)unkownpain69

When I got my first PS2 back in 2002 it was still at 300$, it's price since launch...Now the first time SONY cut the price was at the end of 2002 or beginning 2003 if my memory serves me correctly...So by the time SONY cuts the PS3's price it will be about mid 08 or beginning 09...Long time right???

This is exactly the example of people who are not happy no matter what...

Sony is losing about $300 or so dollars PER SYSTEM already. They are losing money on every single system they sell, and even more on everyone they arent.

The system doesn't crash, is quiet, is the most powerful system, has a blu-ray drive, has free playstation 3 network, is a multi media device, a home entertainment system, and a great system.

It's pretty much the cheapest blu-ray player (and it's a pretty good blu-ray player at that)... And it's WAY more then just a blu-ray player.

Yes, sales would go go up if there was a price cut... But people can't just be happy that it's already too cheap for it's own good.

It's more powerful, has more to offer, runs better, and has a blu ray player... And the 360 Elite is almost $500... Just $100 cheaper. And the only thing the elite has over the PS3 is the 120 GB hard drive.

I can see what you are saying... And that most people are not going to pay that much for a video game... But it is more then a video game, and I wish most people would realize this.

Bigfoot_Slayer

When I got my first PS2 back in 2002 it was still at 300$, it's price since launch...Now the first time SONY cut the price was at the end of 2002 or beginning 2003 if my memory serves me correctly...So by the time SONY cuts the PS3's price it will be about mid 08 or beginning 09...Long time right???

DeadMan1290

You cannot base the PS3 price drop on the PS2 price drop. They both have their totally different factors.

The biggest one : Competition. PS3 is the most expensive by a lot, and its not helping it, so they would surely eat a little loss to drop the price as soon as possible.

Another is that they already cut off the Emotion Engine chip, so the price it costs them dropped. 

I think every developer from here to timba2 and 3 have said there needs to be a price-drop for PS3 to be suceessful and to get them back to fired up to make games for the systems. Economics says that consumers will always buy the cheapest product (that's why the Wii is doing so well), since the PS3 will never become the cheapest, it must become cheaper or the 2-true next gen consoles and offer the games the consumers wants to play. Not to mention that $600 is the scariest price point ever.

Who cares, i bought one at 599, well worth the price.. Psmol200

Couldn't have said it better myself 

As expected it was confirmed by Sony (not that long ago) that there will be no price cut this year. I wonder what if it was 100 bucks cheaper? Do you think sales would be better?(I know i would buy one if it was cheaper) After all isn't it that software makes money instead of hardware and should that be their goal to have more hardware out there?

Can someone explain me Sonys strategy?

Vojkan80001

Cutting the price so early is not a good thing as it shows desperation. Similiar to what happened to the Dreamcast to the point they were giving it out for free.

uk is gona get price cut to £350 by decemberIQT786

Where is the proof?

well its either this:get a better paying job than your current one or get a second job.that way i dont have to listen you cheap bastards complaining about the price because it's really annoying it's like listening to a bunch of immature 7 yr olds."drop this,drop that,release more,update this"just enjoy your ps3 alright or if you dont have a ps3 well save up, fill up your piggy bank and buy it because it simply is the best console out now,though not the best seller its the better.period.crumbs21

i have 2

 

I think every developer from here to timba2 and 3 have said there needs to be a price-drop for PS3 to be suceessful and to get them back to fired up to make games for the systems. Economics says that consumers will always buy the cheapest product (that's why the Wii is doing so well), since the PS3 will never become the cheapest, it must become cheaper or the 2-true next gen consoles and offer the games the consumers wants to play. Not to mention that $600 is the scariest price point ever.

imnotacrook

 You're right that consumers will choose the lowest price, however, this is only in a perfectly competative market.  The X360, Wii, and PS3 are all completely different products.  For the same reason consumers pay $80,000 for a Corvette and $16,000 for a civic, consumers will pay $600 for a PS3.  You can't compare apples and oranges.  As with any new console, titles take time.  Jesus people, give it some time, titles will come.

 

I think every developer from here to timba2 and 3 have said there needs to be a price-drop for PS3 to be suceessful and to get them back to fired up to make games for the systems. Economics says that consumers will always buy the cheapest product (that's why the Wii is doing so well), since the PS3 will never become the cheapest, it must become cheaper or the 2-true next gen consoles and offer the games the consumers wants to play. Not to mention that $600 is the scariest price point ever.

imnotacrook

what the hell is timba2 and 3? 

The PS3 may actually go up in price soon due to supply and demand. As there have been threads were people are leaving Microsoft and coming on board with Sony. This will start having a ripple effect through the market driving the price up on the Sony unit and driving the price down on the Microsoft unit(think of all the used 360's that could flood the market for maybe half the price of a new unit). This is beginning to happen around here in small numbers as of now.

[QUOTE="winner-ps3"]

they say they cant drop the price anymore because it cost so much to make. I think it actually cost $850 to make. So its hard to drop the price any time soon. Though i feel they could have said that so people dont wait for the price cut and buy it now.  But no matter what over time the price will go down because they eventually find ways to make it with cheaper parts, make it more efficiantly. For example blue laser diodes are supposedly becoming cheaper, and the cell chip i read somewhere that they can make it smaller, this all leads to dropping the price. Look at the psp, it was 299 when it first came out a couple years ago, now its at $169 (note its a basic package, only system and plug now) I expect the price to go down $50 at least for the holidays, possibly $100 with the stuff i explained before.

The strategy i think is that the price is not the end of the world, this system is going to be out for 10 years (note ps2 is on 7+ now) Note the quicker the price goes down on a product the shorter the life of the product is. So while 360 keeps droping its price, a new xbox will have to be made in about 4 years from now. And the ps3 will have 5 more years left and at that time it will be cheaper and most likely dominate the market like the ps2 is now. Ps3 will almost cover 2 life cycles of MS consoles during its life, so its a great value!

i have been trying to read their strategy myself. The sytem being future proof is a great idea. Once HDTV and Bluray takes over (note it took 3 years for dvds to become mainstream) the ps3 will be right there waiting as a no brainer choice.

Ps3 will be slow and steady for a couple years then pick up alot of steam. Also the fact that its really hard to make games on makes sure that as the years go on they will only look better and better. Lastly it has been said that its a better choice to make games on ps3 then port over to 360 (bc of the multi core thing) so thats a big plus. So will be getting better versions very soon.    

DeadMan1290

Hate to say it but he's right....Nice observing and investigating dude.....

thanx man, ive been trying to figure this out

The PS3 may actually go up in price soon due to supply and demand. As there have been threads were people are leaving Microsoft and coming on board with Sony. This will start having a ripple effect through the market driving the price up on the Sony unit and driving the price down on the Microsoft unit(think of all the used 360's that could flood the market for maybe half the price of a new unit). This is beginning to happen around here in small numbers as of now.

jimm895

  Either your the world's worst comedian, or you just made one of the dumbest statements ever uttered, and on this board, that's saying a lot.

   You think because a few upset idiot fanboys on a few message boards are "claiming" they are going to leave MS and only buy Sony that that makes a fair representation of the overall marketplace?  What, you think no one ever threatened to leave Sony before? You can't be that daft.

   Sony has two million units that they have shipped and not sold, there are stacks upon stacks of them at most retail stores across the country, the Wii is outselling the PS3 5 to 1 both in NA and in Japan, the 360 is outselling the PS3 better than 2 to 1 in NA.  Did you for one second stop to think about what kind of a scale your so called "ripple effect" would have to occur at for your scenario to even begin to happen?  Please think for a second before you utter forth such garbage.  You just dropped the collective IQ of PS3 fans down alteast a point with that comment.

   As far as the price drop, or lack there of, Sony is doing the only thing they can do, assuring the public that it's safe to go out and buy one now and not get ripped off by having a price drop in a month, and they are assuring the stock holders as best they can by not showing weakness with a price drop. 

   The truth is, while Sony isn't in dire need of help just yet, so far, this is a long way off of where they thought they would be with the PS3 at this point, despite how they or fanboys want to spin it in the media and on message boards.  Under normal circumstances, a price drop would be 2 years away from happening, espcially considering how much money per unit Sony is losing, but the mere fact they are considering one is a sign that they know they need a stimulas for the system. 

   Just because they say there are no plans for a price cut this year, doesn't mean crap really, they could turn around next month and announce one at E3 if the data suggested it was a wise choice.  But right now the pressure is only minimal.  If MS drops the 360 price point, if the big budget games either fail to move units, or get pushed back to next year, or if this horrible sales slump starts to drag on more than a couple months, or any combination of those circumstances, and I promise you that what Sony said a couple months ago goes right out the window and all bets are off. 

   If things go to hell for Sony, they will have to do something, even if it is at a cost.  They may be losing 250 bucks a unit right now, but costs are coming down.  The problem with that is however, that there are 2 million units sitting around in warehouses and stores that are not selling, and before Sony can start to reap the rewards of lower production costs, retailers have to sell thier stocks and start ordering more units that have been built at the lower costs to Sony.  However with worldwide sales only moving 200,000 units or less a month, that isn't going to happen very soon if things stay the way they are. 

   It may show weakness in the short term, to cut the prices,  but Sony can't let things slip away from them either. They cannot go another 6 or 8 months with sales numbers like they had the last month or so, so if all the safety nets fail, you can bet your arse that a price cut will be coming sooner rather than later.   

They're already losing about $300 per console...

Once the games start coming out this Fall/Winter, more people will buy the console.

Once Blu-Ray gets more popular, it's already got a much brighter future than HD-DVD, more pople will buy the console. Actually, when 300 and Spiderman 3 come out on Blu-Ra, you'll see a couple thousand units sold. 

GTA: IV will help sell many PS3's. Killzone 2 should open many peoples' eyes. Once Metal Gear Solid 4 comes out...well then it's on. And when Final Fantasy XIII comes out...well then...it's over. The best Microsoft has to counter that is what? Fable? Please...don't insult me. Halo-heads will be Halo-heads. Their loss...Resistance online works just all well in my opinion. And I don't have to pay for it. 

Maybe after people are done enjoying those games, Sony might drop the price of the PS3. Remember, the price of the Xbox 360 has INCREASED to $479. That doesn't include Xbox Live, which if you don't have, there's basically no point in owning an Xbox. 

In my opinion, it makes far more sense to include a PSP with the PS3 than to reduce its price this holiday season. Remember...it will be around that time that God of War: Chains of Olympus for PSP comes out. Remote Play should have all of its problems worked out by then. Home will be out...

If Sony really wants to start going for the kill, they should make bundles this holiday season that give you a free PS3 with the purchase of a 60" Sony Bravia 1080p HDTV... 

They're already losing about $300 per console...

Once the games start coming out this Fall/Winter, more people will buy the console.

Once Blu-Ray gets more popular, it's already got a much brighter future than HD-DVD, more pople will buy the console. Actually, when 300 and Spiderman 3 come out on Blu-Ra, you'll see a couple thousand units sold. 

GTA: IV will help sell many PS3's. Killzone 2 should open many peoples' eyes. Once Metal Gear Solid 4 comes out...well then it's on. And when Final Fantasy XIII comes out...well then...it's over. The best Microsoft has to counter that is what? Fable? Please...don't insult me. Halo-heads will be Halo-heads. Their loss...Resistance online works just all well in my opinion. And I don't have to pay for it. 

Maybe after people are done enjoying those games, Sony might drop the price of the PS3. Remember, the price of the Xbox 360 has INCREASED to $479. That doesn't include Xbox Live, which if you don't have, there's basically no point in owning an Xbox. 

In my opinion, it makes far more sense to include a PSP with the PS3 than to reduce its price this holiday season. Remember...it will be around that time that God of War: Chains of Olympus for PSP comes out. Remote Play should have all of its problems worked out by then. Home will be out...

If Sony really wants to start going for the kill, they should make bundles this holiday season that give you a free PS3 with the purchase of a 60" Sony Bravia 1080p HDTV... 

knicknut17

Wow, if Sony thinks like some of you guys, they are absolutely doomed in this console race.

Basically Sony has two choices. It can either cut the price and actually compete in the console war, or it can go into a hermit-like mode like Nintendo has previously been doing (generally not caring about 3rd parties/total sales, so long as they make a profit). If they opt for the latter, well, I personally don't see it working out but hey, it's their business. I just won't be a customer.

By the way, I should add that until a year or so ago, most of Sony's divisions were doing extremely poorly. Do you know what kept them afloat during those hard times? The gaming division....now that the other divisions are getting better (especially with the HDTV craze), it seems to me that it would be far better to take more losses now to restore the gaming division. 

Assuming that they want to compete, they have absolutely no choice but to drop the price, and soon. If the PS3 were just a touch behind the 360 in NA and maybe selling half (roughly 25K per week) of what the Wii sells in Japan, I think they could maintain the current price and play the waiting game. But given the fact that the PS3 has the actual potential to sell in Japan given its history and even when you combine NA+JPN numbers it doesn't outpace the 360, then yeah, Sony needs to be moving more units. You're never going to catch up if you're selling less.

The fact is, the PS3s system selling-exclusives (FF, MGS) aren't due until next year and the PS3 isn't selling enough to hold on for those. Yes, there are definately some new games that have potential, but it's rather hard to predict whether they're going to even be good games, let alone system sellers. At $500 ($450 definately seems to be the sweet spot for the PS3, as many on SW agreed that they would pick one up at that price), I think some people could be swayed given the Blu-Ray drive and free online from picking up a certain other console.

Finally, I just want to say some of your answers are completely laughable? Get a second job? Really, it would be better for a company to take a loss than to EVER tell potential customers that. I want to play games- if I have to get a second job (which would give me less time for gaming, increase stress and fatigue, ect), then I'll just buy something else as a consumer. Really, whether you think the PS3 is a bargain at $600 is irrelevant- the vast majority of people are saying it isn't. 

  Sony has a history of taking the longest for dropping the price on their systems.  The PS2 has been out for 7 years and it's still not at $100.  .mikeslemonade

Lol you can't compare PS2 that is best selling system EVER and it is currently second best selling console, after Wii. So there is no reason to drop PS2 price  when it is selling so well. PS3 situation is totally different. Sales are not that good no matter what people here say and that is why "price cut" question is so often and actually needed

Wow, if Sony thinks like some of you guys, they are absolutely doomed in this console race.

Basically Sony has two choices. It can either cut the price and actually compete in the console war, or it can go into a hermit-like mode like Nintendo has previously been doing (generally not caring about 3rd parties/total sales, so long as they make a profit). If they opt for the latter, well, I personally don't see it working out but hey, it's their business. I just won't be a customer.

By the way, I should add that until a year or so ago, most of Sony's divisions were doing extremely poorly. Do you know what kept them afloat during those hard times? The gaming division....now that the other divisions are getting better (especially with the HDTV craze), it seems to me that it would be far better to take more losses now to restore the gaming division. 

Assuming that they want to compete, they have absolutely no choice but to drop the price, and soon. If the PS3 were just a touch behind the 360 in NA and maybe selling half (roughly 25K per week) of what the Wii sells in Japan, I think they could maintain the current price and play the waiting game. But given the fact that the PS3 has the actual potential to sell in Japan given its history and even when you combine NA+JPN numbers it doesn't outpace the 360, then yeah, Sony needs to be moving more units. You're never going to catch up if you're selling less.

The fact is, the PS3s system selling-exclusives (FF, MGS) aren't due until next year and the PS3 isn't selling enough to hold on for those. Yes, there are definately some new games that have potential, but it's rather hard to predict whether they're going to even be good games, let alone system sellers. At $500 ($450 definately seems to be the sweet spot for the PS3, as many on SW agreed that they would pick one up at that price), I think some people could be swayed given the Blu-Ray drive and free online from picking up a certain other console.

Finally, I just want to say some of your answers are completely laughable? Get a second job? Really, it would be better for a company to take a loss than to EVER tell potential customers that. I want to play games- if I have to get a second job (which would give me less time for gaming, increase stress and fatigue, ect), then I'll just buy something else as a consumer. Really, whether you think the PS3 is a bargain at $600 is irrelevant- the vast majority of people are saying it isn't. 

Vampyronight

I give you 10 out of 10 for your post!

As expected it was confirmed by Sony (not that long ago) that there will be no price cut this year. I wonder what if it was 100 bucks cheaper? Do you think sales would be better?(I know i would buy one if it was cheaper) After all isn't it that software makes money instead of hardware and should that be their goal to have more hardware out there?

Can someone explain me Sonys strategy?

Vojkan80001

selling ps3 @ higher price to sell ps2 more to cover the losses on ps3 production ? secondly the ps3 is well worth the price.. I mean for 400 US you can get a console which dies and everyone around the world is complaining about the failure rate.. so you have to see the production values of different companies..

secondly you have to see what you are getting... PS3 is the REAL center of ur living room... the multimedia capabilities are awesome and the Games are great.

 Resistence - MotorStorm - Oblivion.. the Standard Hard Drive is an awesome gift to developers for nex gen and just wait for a few months tell they start admitting it..

Look at oblivion, its a much richer game on the PS3 because of the Hard Drive.

Finally, I just want to say some of your answers are completely laughable? Get a second job? Really, it would be better for a company to take a loss than to EVER tell potential customers that. I want to play games- if I have to get a second job (which would give me less time for gaming, increase stress and fatigue, ect), then I'll just buy something else as a consumer. Really, whether you think the PS3 is a bargain at $600 is irrelevant- the vast majority of people are saying it isn't.

Vampyronight

You have to realise that SONY just does not has 3.6 million hardcore fans.. my friends are waiting to get a ps3 till they see Ninja Gaiden or Lair, they don't care about the price .. but why arn't they getting it already ? because they are playing God of War and final fantasy.. those games just came out ... you od make good points but the 600 us price tag is not the reason for few more millions.

I think SONY need to make a dedicated dev tools division so their tools are developed next to the hardware they are producing... just watch till RainBowSix comes out.. its not going to be as good as the xbox360 version, however I hear that GRAW 2 is coming along nicely.