E3 '07: Hirai: 60GB PS3 'no longer in production'

SCEI CEO tells Norwegian television that Sony won't have a two-price strategy in the US market, SCEA says $499 model will be available "for months."

SANTA MONICA, Calif.--Today, the E3 Media & Business Summit wound down in Santa Monica, with at least one exhibitor having already packed up and left the show floor at Barker Hangar. However, this morning saw the biggest controversy of the show heat up, with a maelstrom of confusion surrounding the $499 price drop of the 60GB PS3, which was just announced Monday.

Last night, Sony Computer Entertainment Europe CEO David Reeves told GameSpot that the discounting was merely a markdown of a model which had been discontinued. Just hours later, his statements appeared to be contradicted by a senior Sony Computer Entertainment America spokesperson, who said that quotes from Reeves in the press were "not accurate."

"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," SCEA senior director of corporate communications Dave Karraker told GameSpot. "We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future."

At almost the same time, a television interview with the global head of Sony Computer Entertainment settled the matter once and for all. Speaking to Norwegian game-news outlet VGTV, SCEI president and group CEO Kaz Hirai said in no uncertain terms that the 60GB PS3's days are numbered.

"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 unedited 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."

SCEA has subsequently confirmed the phase out, but emphasized that it would be gradual. "The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted," Karraker told GameSpot in a follow-up interview. "We have ample inventory to meet the immediate needs of consumers in this territory for several months to come."

Karraker also responded to criticism that loudly promoting the new $499 price point while quietly discontinuing its production amounted to a bait and switch. "This is absolutely not a bait and switch," 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."

2031 Comments

  • jakjbt

    Posted Dec 26, 2007 4:32 pm PT

    ye why buy a ps3 xboxs are better and framrates dont mess up...but you have to admit,ps3s are pretty

  • Skeledragon

    Posted Aug 29, 2007 1:42 pm PT

    why buy a ps3, when you can buy an xbox 360? its a whole lot cheaper, and it has more and better games

  • karan7

    Posted Aug 24, 2007 3:08 pm PT

    Ps3 home to be out on the octorber 4th on a thursday???heard on n4g.com??

  • Megawizard1

    Posted Jul 30, 2007 1:41 pm PT

    "We have ample inventory to meet the immediate needs of consumers in this territory for several months to come."

    They don't have to worry about the 60gig models running out of supply for some time because no one's buying either one! XD

  • cricketboy2238

    Posted Jul 25, 2007 3:29 pm PT

    Good for them, they should stick to one SKU. Why not the 60GB? I doubt anyone's really going to miss those extra 20 gigabytes, especially when you can replace the unit's drive with a bigger one than 80GB for less than the $100 price difference. Having multiple SKUs just leads to confusion, and the people who really care about that extra space make up such a small share of the people who are actually buying PS3's that it just isn't worth it.

  • sizzlingdviper

    Posted Jul 24, 2007 1:41 am PT

    Doesn't really matter if the 60Gb version is discontinued,after all,the only difference with the 80Gb is hard drive space.OK,if you want to download loads of movies,but for most gamers,the 60Gb is ample.If you keep worrying about waiting to see which version continues+which is phased out,then you'll never get around to owning a PS3.So do yourselves a favour+go out and get yourselves a ,now more sensibly priced 60GB PS3

  • TTDog

    Posted Jul 20, 2007 1:46 am PT

    Will hold off buying one until they make their mind up what model they actually want on the streets/shelves.

    Wouldn't suprise me to see a 100Gb version coming out at the start of 2008, or a 120Gb version this time next year. Both laucnh models discontinued in less than a year, it isn't helping consumer confidence.

  • condemned100

    Posted Jul 19, 2007 11:46 am PT

    Sony is just desperate for sales i don't blame them no one bought it when it was at $599.99. But come on who are they fooling people are still not gonna buy it at $499.99 in my local Target the Ps3's have been there since launch.

  • Rakuho

    Posted Jul 19, 2007 11:17 am PT

    and then the 80 will be 499, it's all good. there are still millions of the 60gig PS3s left, that's quite a clearance. so just because they are not producing any more of them, i don't see why anyone is complaining. just go and get one while supplies last, or you'll b**ch yourself out of a great deal.

  • 1stRifle

    Posted Jul 19, 2007 8:59 am PT

    Whyyyyyyyyyyyyyyyyyy?!

  • condemned100

    Posted Jul 19, 2007 4:29 am PT

    it's a better idea to just wait until the ps3 drops to at least $399.99 for the 40 GB.

  • StarDust666

    Posted Jul 19, 2007 3:50 am PT

    don't get the ps3 YET! never know when next year rolls around, sony might bring out 320GB ps3 and only GTA 4 can be played on it... or you can wait a little longer... and longer and longer.... its a typical sony style

  • CarlosY2Jericho

    Posted Jul 19, 2007 1:41 am PT

    Well, people, get your 499$ PS3 before they sell out then.

  • Scarletred

    Posted Jul 18, 2007 8:46 pm PT

    What is?

  • PS2_PC_FAN

    Posted Jul 18, 2007 7:39 pm PT

    OMG. Well Thats OK.

  • Scarletred

    Posted Jul 18, 2007 5:20 pm PT

    RDo: He said that because the 360's system is so closed in, that is why it has been delayed. Also no in the long run I don't see the 360 getting more games and content because for 1, I don't know what will happen with the online of both and 2 blue-ray allows for more content than what the 360 can.

    The reason why I see it as an advantage to have a system that can play the game along with having mods is because I don't want to buy a $1000+ comp. just to have a game I can make mods on especially when I can just get them from someone else.

    Also the reason I mentioned Oblivion is because so many people wanted the pc version just to download mods. If the PS3 didn't have that feature for UT3 then I'm sure that most would by the PC version. Now they don't have to spend $1000+ for a pc when they can get basically the same experience from a 500-600 dollar console.

    Also, no I dn't think Sony needs MS based on the whole "most people have a MS product without having a Sony product" because of the fact that you don't have to have a PC with windows to play some games. You wanna talk about how Sony needed Ms. Tell me why before the PS3 came out MS was saying you couldn't reach 1080p games. All of a sudde once it comes out they wanna make 1080p games. And back to the PC part, I could easily say MS needs Son'ys computers to put their windows software on knowing very well I don't have to have windows.

  • rdo

    Posted Jul 18, 2007 12:40 am PT

    scar he said that and gave that as the reason for the delay. he said it is being worked out. epic will have them loaded from an ingame menue rather than marketplace for the free ones. i'm not denying ms wants to squeeze every penny, they do. bot on average for every penny ms makes the publisher makes two or three. thats one of the reasons the 360 is so strong, it gives publishers and developers more money, which makes them more interested in the 360. in the long run the 360 gets more games and content. i can choose not to buy, but it's nice to know it's an option. that i do have the choice, not that i cant get it at all.

    that being said i have a reserved copy of ut3 for the pc, not the 360. i wont just be able to play mods, i'll be able to make them. and i can mod the mods to my likeing. my options are limitless with the pc version.

    you mentioned oblivion. how many mods are avalible on the ps3? the same ones avalible for the 360. sure the ps3 version contains a few mods for free...of a year old game. and i do plan to buy the goty version of oblivion for the pc, and get everything the ps3 can get and more for less.

    but lets take this down to the nitty gritty. if ps3 owners have a pc they can play alot of 360 games, as long as that pc is windows based. in other words you can play the games if you have a sony platform and microsoft platform. not much of a suprise that owning both you could play both. what is suprising is that you need a pc at all. sony claimed the ps3 was a super computer, an all in one device. why do you still need a pc? why do you still need a pc? why do you still need ms? there are more microsoft owners without a sony product than sony owners without a microsoft product. infact untill the ps3's release you couldn't buy a sony pc without microsoft preinstalled. sony see's ms as that necessary. microsoft can survive without sony, sony cant survive without microsoft.

  • bam226

    Posted Jul 17, 2007 8:41 pm PT

    Damn Sony, when will you dumbasses learn to stop screwing with people. Lemme get this straight; 80 gig hd, no emotion engine or psx chip, all for $600 again!! You guys r smoking some serious sh%#!! IF anything it should go for $400 cause then youll be at the same level as the 360 at least.

  • blazinpuertoroc

    Posted Jul 17, 2007 7:27 pm PT

    the system is selling now...why discontinue it?!?!?! ugh idiots!

  • hunter8man

    Posted Jul 17, 2007 5:24 pm PT

    I just heard something on G4 that Sony is rumored to be releasing a $399 40Gb PS3 that will have no backwards compatibility. That would be 4, yes 4 versions of a console in less than a year.

  • Scarletred

    Posted Jul 17, 2007 5:00 pm PT

    wilsonss what are you talking about there have been multiplat games that were better on the PS3 than they were on the 360.

  • randy120

    Posted Jul 17, 2007 4:58 pm PT

    I was in Gamestop yesterday. It looked like a PS3 clearance sale. The sign seemed to indicate this was while supply lasts kind of deal. Even at $499 the PS3 was piled high.

  • Scarletred

    Posted Jul 17, 2007 4:56 pm PT

    rdo: oh really. so why did rein say that the 360 wouldn't be able to have player made mods from the PC because the 360's system was too closed in and the PS3's was more opened. i won't deny there will be some official mods as they did with oblivion but thit was confirmed there won't be any player made mods.

  • rdo

    Posted Jul 17, 2007 4:48 pm PT

    scarlet mark rein says the 360 will have the maps and mods. as to why i have 2 360s, because it is easier to take a didk from the family room to my bed room that dragging an entire console and hooking up the cables and cords. because i am lazy, and because i have so many games to play i play them when i wake up and before i go to bed. but the hdtv in the family room does have a better pic and thats where i play when i get home from work. also if i dont feel like playing the same thing as other people, we can both play different games, or we can play multiplayer without shareing the screen. currently i'm loveing forza 2.

  • monty_4256

    Posted Jul 17, 2007 4:36 pm PT

    to narok
    to change from 60 GB's to 80 GB's doesn't cost that much, the same essential hardware is still there, you don't reuire a whole new HDD, just to add extra space into the allready existing one, which means they'll probably provide an extra disc AT MOST in there

    so it's not that much more expensive to make... but I agree with you, it's not the best strategy ever thought up

  • Scarletred

    Posted Jul 17, 2007 4:36 pm PT

    Narok: No tht isn't what they are doing. The 80 gig system cost less to make because they didn't put the PS2's hardware in there (which causes less backwards compatibility) so now it cost less to make. Though how much less i'm not sure. So basically, they will either profit from it or won't lose as much as they did before.

  • Narok

    Posted Jul 17, 2007 4:26 pm PT

    So... they're selling the same system that was costing them loads of money to make at a LOWER price, and are now selling for the same old price an even more expensive to make system, costing them even more money.

    Brilliant.

  • Scarletred

    Posted Jul 17, 2007 4:25 pm PT

    rasterror:first off i said that it was my personal opinion that the Ps3 line-up is better than the 360's because what the PS3 has coming out appeals to me more than what the 360 has coming out. i'm not gonna name all the titles but I will name the ones that appeal to me the most: Lair, HS, Warhawk, Uncharted. Second In home you don't have to walk around to find people to play. you can just choose to launch an online game anytime you want. if you watched G4 you would have know that. why don't you stop putting words in my mouth and stop crticizing something you obviously don't know anything about.

  • trigger501

    Posted Jul 17, 2007 4:25 pm PT

    im a PS fan, but i bought the 360 coz of the games, my tax return is comming out soon and i could remember telling myself around 6 months ago that i would definitely get a PS3 when i get my tax return, but with the lack of games, MGS being delayed to 08 (as opposed to the 07 release), FF still in the "TBA" state, and the good games in the PS3 being available to the 360, i think my tax return would be going to either Sony (still faithful) or clarion car sound system... what im saying is, Sony should do what they do (like bribe or secretely fund game makers) and get games out there for their system. Who in their right mind will buy something that will only excite u for 15 hours or so and then just be a dust collector after that??? i dont think price is a factor here, its juz common consumer sense, Value for money....

    P.S. part of my tax return will also go to a N8800 GTX.. so my PC can chew games like CRYSIS like it was Marshmallow... :p

  • kng_osiris

    Posted Jul 17, 2007 4:16 pm PT

    i laugh at all of you the console war has just started and we have people fighting about two systems and mostly about games that havnt came out yet u guys couldnt possibly all hardcore about one sytem becuase if u are half of us would still be playing segas (no offense sega) but what all of us fan boys need to admit if there is great games out for one sytem and ther on a sytem that u sworn to hate will u not go and buy it just because of a few words that say im a harcore fan boy?
    is ther truth to my word or not?

  • skirlnik

    Posted Jul 17, 2007 3:59 pm PT

    Sorry haters - you failed. People are buying the PS3. Good thing you put so much energy into your "arguments." I have played extensively on Xbox Live - my buddy bought one because it came out first. I know for a fact that the PSNetwork is just as good - don't get pissy because you have to pay for internet on your console... Keep hating - it's a great system, and it's inanimate, so you can't even hurt its feelings!

  • PipeBigboss

    Posted Jul 17, 2007 3:57 pm PT

    Give Sony a break

  • TTDog

    Posted Jul 17, 2007 3:25 pm PT

    @GTA5Addict: Well it could hardly slow down sales of the PS3 any more than they have now, people weren't exactley falling overthemselves to buy a machine at £499 before... can't see it changing too much now.

  • rasterror

    Posted Jul 17, 2007 3:06 pm PT

    Scarletred, first, what Ps3 games do you know that we don't that makes it's line-up in 07 better than the 360. Second, why should I have to walk around in a virtual world just find people to play games with? I just want to click and go. Three, Home looks like a joke. People who have a 360 have too many great games to walk around, shoot pool. or bowl in some boring virtual world. Is that the best PS3 has to offer?

  • Scarletred

    Posted Jul 17, 2007 2:58 pm PT

    I agree with army_man.

  • Scarletred

    Posted Jul 17, 2007 2:47 pm PT

    1ung3r: I can play online with my PS3. Home will only make it better. I also don't need 2 360's to have a better online experience than what 1 ps3 can offer. Also MGS has great gameplay, and if you don't like the cutscenes just skip them. Last time I checked Sony=/= Kojima productions or konami. Sony can make games with good gameplay like God of War, but I guess you wouldn't know since 360 can't get it. MGS has weak gameplay? Yea ok....and Gears isn't the best game out right now. (sarcasm incase you didn't know).

  • 1ung3r

    Posted Jul 17, 2007 1:55 pm PT

    You need 2 360's to play together over your home network or online with 2 xbox live accounts. But I guess you wouldn't know that since sony has no real working online service. Sony specializes in offline games with long cutscenes and weak gameplay, like metal gear.

  • robbieboyd11078

    Posted Jul 17, 2007 1:50 pm PT

    amen army_man14

  • army_man14

    Posted Jul 17, 2007 1:45 pm PT

    "hey rdo wat do you mean mgs4 is going on the 360 your just jelous that you cant have the best game on xbox well boo hoo caus you aint getting it hahahahahahaahahahahahahahahahahahahahahaha. your well sickened everyoneknows mgs4 is a sony only game(if you know what i mean)"

    mgs isnt the best game overall numbnuts, thats just your pathetic opinion. these "console wars" are pointless. sony, microsoft, and nintendo will never fail in the gaming industries, so get over yourself. people have preferences, so if you like your console, then go play it and have the fun that youre supposed too instead of persuading people that only your console is the best and everybody elses is crap, it doesnt work like that. each console has plenty of good games coming out.

  • Omnislush

    Posted Jul 17, 2007 1:06 pm PT

    One of these days, Sony will realize that they need to come up with a permanent fix. They should see the buzz that price cut has created for them, and actually make it permanent. Instead of 60 gig PS3's sitting on store shelves, we'll now have 80 gig PS3's sitting on store shelves. I know that some will see the value of this 60 gig PS3 @ $499 and think it is a great deal, but it is still $499. Until it permanently goes down to $399 or less, Sony will have problems selling their consoles. Of course, by the time they do that, Microsoft will have a price cut in place that will still make Sony look ridiculously expensive. Don't get me wrong--I love Metal Gear like most of you do--but I refuse to pay $499 for a system just so I can play one game.

  • Scarletred

    Posted Jul 17, 2007 1:00 pm PT

    i've always had this question. Why do so many people have 2 360's?

  • dsa777

    Posted Jul 17, 2007 12:56 pm PT

    Personal opinion, I don't like the ps3, I do have one along with 2 360's a Wii ans DS. The software is cumbersome and annoying, why can't I have sound throught the optical and the HDMI at the same time? Why do I have to install every game and seemingly update the software everytime i turn the thing on. Why isn't anything plug and play needing me to play a find me in the menus game all the time. At the moment PS3 online interface is rubbish, I have to quit my game evertime I want to do anything and yes I do like achievemments!!
    The price "drop" isn't one , in europe , tough , even in the states, 60gb units gone, so is the $499. How can that be.
    So don't spin me a ps3 is the second coming , it isn't , it will improve,I know that, but right now it's a shiney black brick hiding behind the LCD catching dust for me!

  • Scarletred

    Posted Jul 17, 2007 12:55 pm PT

    In either case, don't take in to what patcher says anymore. First he said that MS would drop the price at e3 now he is saying Sony is going to drop the price of the 80 gig, once the 60 gigs run out and they stop making the ps3+motorstorm deal.

  • Scarletred

    Posted Jul 17, 2007 12:34 pm PT

    rdo: what are you talking about, MGS4 is exclusive to PS3. Don't gimme that crap about what Kazumi said because for 1 he is head of Europe and NA, and 2. he isn't even in the game and systems departments. All he was doing is making predictions. MGS4 is exclusive to PS3. Also 360 won't have mods that can be imported from the PC.

  • Scarletred

    Posted Jul 17, 2007 12:30 pm PT

    mike_mgoblue:It is your opinion that the 360 has the best line up, but don't try to change other peoples minds and argue with them. In my opinion the PS3 has the best line up for 07. I've played halo 1 and halo 2. Halo 1 was awesome, and halo 2 just was meh. According to your logic on how killzone was, halo 3 for me should be bad. Games that I'm most excited among the many that are coming out are HS, Lair, andHaze which Will be released for the 360 Q2 2008 WHICH IS THE EARLIEST TIME WHICH IT WILL BE RELEASED (if it is released for 360). The creators said that the exclusivity of Haze to ps3 will last from the time of its release through q1 2008. You then bring up VF5 and all the things it will have for 360 that won't be on the PS3. I've heard of possible better graphics, never heard of better AI, but have heard of exclusive online play. If you wanna throw that in I could throw in UT3 which will have the exclusive ability to import mods from the PC which IMO will help sell alot judging from seeing how so many people wanted the PC version of oblivion over the console version JUST to hae mods. Also as I said before why are people saying PS3 games cost more than 360 games? Here in TX both 360 and PS3 games cost 59.99. Also the creators of GOW said they were thinking of ideas for God of War 3. This is just my opinion but I think that the ps3 has the best 07 line up. That doesn't change the fact that I will be getting a 360 later though.

  • rdo

    Posted Jul 17, 2007 12:25 pm PT

    lol skir. we can have halo3 you want NEW games, like kill zone2, mgs4 (also to apear on the 360) and final fantasy 13? why pay for multiplayer? because it works. are you really going to try to use a ps3 against a pc in ut3? bad move. if you try it just go ahaid and name your self frag bait. it can import mods that must be made on a microsoft windows live based pc? do you really think those windows mods aren't going to work better on the 360? and dont worry i wont tell you i feel sorry for you, you wouldn't believe me anyway untill i can stop laughing.

  • TleeBlue

    Posted Jul 17, 2007 12:23 pm PT

    I understand Sony's situation and their need to sell ps3 in order to instill some user bases. however, this is a short term fix that could come back to haunt Sony later. Certainly, this price cut will help ps3 sale substantially but what happens after stock of 60gb ps3 run out? Customers had two choices: $500 or $600. Then all of sudden, they only have one choice. You can argue that you are getting more for the money but in most people's mind, it is almost same as raising the price of ps3 all over again. You don't raise price for old console In console business. I can' t remember that happening ever. You cut prices, not raise them. If you think ps3 didn't sell month ago, you will really see ps3 going nowhere if this happens. This is a bad move by Sony. They only did this out of desperation and it shows.

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