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PlayStation (Games) Businesses Sony

Sony Rejects PS3 Price Cuts 187

Despite hopeful comments by analysts, Sony has gone on the record (again) saying that it has no plans to cut the PS3's pricetag any time soon. Next Generation reports: "'PS3 prices and shipment plans for the future should be determined by market trends and competition. Sony currently doesn't have any specific plan to cut the PlayStation 3's price.' Analysts believe a price cut is inevitable, as the company struggles to catch Microsoft's early lead with Xbox 360, and the $250 Wii continues to sell as many as can be produced. However, Sony's plan has generally been to hold tight and hope that demand for Blu-ray drives will increase, by the end of this year." Relatedly, the company has outlined releases for the second quarter of this year on the PS2, PS3, and PSP systems.
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Sony Rejects PS3 Price Cuts

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  • by Lachryma ( 949694 ) on Thursday April 19, 2007 @04:37PM (#18803807)
    Consumers reject Sony.
    • Its my toy (Score:5, Insightful)

      by jriding ( 1076733 ) on Thursday April 19, 2007 @04:48PM (#18803961)
      They keep playing the old its my toy and if you don't want to play by my rules you can't play with it... But they don't seem to notice that not many people are willing to play with their toy based on their rules. This includes both game makers as well as customers. Over all I keep hoping that they will see the light and the ps3 will take off with both good games and good price... but untill then I will just keep what I have.
      • Re: (Score:3, Interesting)

        by cHALiTO ( 101461 )
        I think the problem is that most people who would buy a ps3, are waiting for a price drop, which forces Sony to *continually* go out and say that there will be none. Otherwise I don't know why they keep saying this over and over, once would be enough.

        Which would prove that the current price is way too much (Most people always thought that, I know, but still some fanboys kept saying things like "if you want the best you have to pay the price" and that sort of shit).

        Disclaimer: You can call me a fanboy myself
      • Yes -- it's hard to teach people a lesson by taking your ball and going home, when someone comes up with another ball and they keep playing on. Sucks, really.
    • Consumers reject Sony.
      Yes, but it's not because of the price of the PS3. I wouldn't buy it if it were $250. There's still aren't any games I want to play on it!
    • Re:Counter-Headline: (Score:4, Interesting)

      by DownWithTheMan ( 797237 ) on Thursday April 19, 2007 @05:36PM (#18804633)
      I agree with this 100%!

      I was/am a big Sony fan-boy because of the library of games the Playstation has always sported... I'm an RPG addict, and the Playstation enabled my addiction to no end. But after the wonderful Sony root-kit adventure and the current $600 price tag, I don't think I'll be buying a PS3 any time soon. Let's not forget to mention that Next-Gen game prices have all gone up another $10. All in all they basically priced me out of the market and I am refusing to save up for one.

      The only Next-Gen system I own right now is the Nintendo Wii. Why? The controls are incredibly innovative (much like the DS, and I thoroughly enjoyed my experience with it). The price tag was ONLY $250 and current games are still set at the $44.99-49.99 price... Oh yeah, and let's not forget Zelda and the Twilight Princess... All in all this spells one happy Wii gamer who will be waiting until those PS3 systems drop in price, and up-coming RPG releases become Best Seller titles and the prices drop to $19.99 - 29.99
  • by butterflysrage ( 1066514 ) on Thursday April 19, 2007 @04:37PM (#18803809)
    dig in your heals and hope no one catches on to that fact...
  • by Anonymous Coward
    I wish all links spanned entire summaries.
  • by cxreg ( 44671 ) on Thursday April 19, 2007 @04:43PM (#18803891) Homepage Journal
    cutting the price at this point wouldn't help game sales enough to offset the extra loss they'd be taking on each unit, because the library is still pretty sparse. might as well suck it up and sell whatever units are selling. when the really good games start coming out later this summer and fall, sales will pick up and I wouldn't be surprised to see a november cut of about $100
    • by powerlord ( 28156 ) on Thursday April 19, 2007 @05:10PM (#18804299) Journal
      Not to mention even if they WERE going to have a price cut, denying it is "standard practice".

      Take a look at Nintendo (who everyone seems enamored with at the moment), and remember what happened when they had the last round of price cuts on their handheld ... and denied any price cuts were about to happen when asked about the week before?

      Look. Suck it up. Price cuts WILL happen at some point. If you want to wait for whenever that will be, then wait. If you don't, then don't. I agree that once the games start rolling this Summer and Fall things will start looking up, and I also wouldn't be surprised by a price drop before the holidays.
      • by Phisbut ( 761268 )

        Look. Suck it up. Price cuts WILL happen at some point. If you want to wait for whenever that will be, then wait. If you don't, then don't. I agree that once the games start rolling this Summer and Fall things will start looking up, and I also wouldn't be surprised by a price drop before the holidays.

        -----BEGIN SARCASM SIGNED MESSAGE-----

        But Sony has no reason at all to cut prices. After all, the demand for the 60GB model is so freakin' huge [slashdot.org] that they need to drop the 20GB model. When you have such a hi

    • "when the really good games start coming out later this summer and fall"

      please, anyone can make a list of those ps3-seller games? I mean, I am sure that next year we will see some action, maybe a new god of war or a final fantasy, but this year? what has been announced this year that will make the masses run to buy a ps3?

      my point is, i think sony is going to suck it up for at least a year, and i fear they start to rush developers to take out games not as good as they could have been, and that's bad news for
      • by cxreg ( 44671 ) on Thursday April 19, 2007 @05:44PM (#18804751) Homepage Journal
        please, anyone can make a list of those ps3-seller games?

        Exclusive material that people are very excited for, most if not all of which is expected this year:

        Motorstorm (already out)
        Metal Gear Solid 4
        Killzone
        Heavenly Sword
        FF13 (despite recent headlines, 13 and 13vs are still PS3 exclusive for now)
        Lair
        Afrika
        LittleBigPlanet
        Home

        And others coming down the line, like the next Gran Turismo and Tekken games

        And there's games such as GTA4, Assassin's Creed, Katamari 3. People talk about a lack of exclusivity as if it's no longer available on the first platform. That's just stupid. The fact that a game is going to be available elsewhere doesn't mean it's not going to sell tremendously well on the PS3, and many people will buy one just to play their favorite franchise because it's what they're familiar with. Not to mention that it IS a better machine, and there's a good chance that multiplatform games will look nicer on the PS3. This has happened already with Oblivion.
        • Motorstorm (already out)
          Metal Gear Solid 4
          Killzone
          Heavenly Sword
          FF13 (despite recent headlines, 13 and 13vs are still PS3 exclusive for now)
          Lair
          Afrika
          LittleBigPlanet
          Home


          Other than Heavenly Sword and FF13 (which will be ported, they announced it), I don't sense any anticipation to speak of for the rest of that list.

          Going to be a cold winter at Sony HQ.
          • by ivan256 ( 17499 )

            FF13 (which will be ported, they announced it)

            Link please?

            I won't be holding my breath while you try to find it. Perhaps you should while you're looking though. It would be one less troll around...

            Here's why FF-XIII will be on PS3:

            Japanese Console sales as of 4/1/2007:

            PS3: 880,000 (Growing at 16.8k/month)
            X360: 380,000 (Growing at 3.8k/month)

            The Final Fantasy series typically sells as well in Japan as in the US. The only way the Final Fantasy series goes multi-platform with 13 is if the PS3 completely flop

        • by Rycross ( 836649 )
          You forgot Uncharted by Naughty Dog.
    • The PS3 is still ahead [eproductwars.com] of the XBox 360 sales at Amazon (look at the trend data for the PS3 and 360 sales rank in the "primary Systems" category), as it has been ever since Amazon was able to keep the PS3 in stock starting about March 23rd.

      I think Sony is holding off on any price move until Microsoft looks like it's doing something similar. Instead the most recent move from Microsoft is releasing an even more expensive version of the 360, so that the gap to get a console and a Blu-Ray player at the same tim
      • Maybe at Amazon, but page B1 of the Wall Street Journal [wsj.com] (expensive subscription required, I get it in print) says that the xBox360 is eating the shorts off of the PS3 in the US market, and the Wii is beating the PS3 by a long margin.

        Amazon may not be where most people buy gaming consoles.
        • Yes but that is written from older data, before the end of March. The April sales figures should be more illuminating.

          The Wii is beating both handily, to the extent they can provide stock... I'm a little surprised Nintento has had such a long term problem with supply, but I think they just did not realize how popular it would be.

    • But that assumes they can beat Xbox's game line-up. I'm pretty much played through all the good games on the xbox (a rather short list so far), and I am clamoring for the fall line-up they have announced for fall 07:

      • GTA 4
      • Halo 3 * exclusive
      • Ace Combat 6 *exclusive
      • Unreal Tournament III
      • Guitar Hero III
      • Huxley
      • Halo Wars *exclusive
      • Gears Of War 2

      Xbox has a pretty awesome lineup for Q3 and Q4 2007. (if they all are released as expected) IMO, Sony cannot wait till late '07 to start putting out descent titl

    • by Fozzyuw ( 950608 )

      I wouldn't be surprised to see a november cut of about $100

      Hey, why wait for a Sony price cut? EBgames/Gamestop is offering a $100 PS3 for the trade-in of a PS2 (an extra controller and a 8MB card). Probably because GS makes a killing on used systems/games and the PS2 is out selling the PS3. Though, even with a $100 trade-in credit, I still wouldn't buy a PS3 for $500. Sure, it's not a price cut, but the PS3 does have some backwards compatibility with PS2, so it might be the kicker for some.

      Then aga

    • by Duds ( 100634 ) *
      Except that the lack of units sold will lead to the cancellation or format shifting of other projects, leading to a sparse library in 18 months too.
  • My eyes! (Score:4, Insightful)

    by The Real Nem ( 793299 ) on Thursday April 19, 2007 @04:46PM (#18803919) Homepage

    Of the 134 words in the summary, 24 were not part of a link. I'd post something constructive, the I could bare to rear more than 10 words of the summary (and we all know the golden rule about reading TFA). Sheesh!

    • Looks like you didn't preview your post either.
      • Actually, I did. I have mild Dyslexia and consequentially a very difficult time with interchanging words. I'm often blind to it without rereading something 10 times or more.

    • by a16 ( 783096 )
      Don't worry, it's just Zonk again. Is it too much to ask for editors to learn how to use hyperlinks without screwing them up, and failing that, preview before publishing to the front page of one of the top 500 sites [alexa.com] in the world?

      Frankly, it's embarrassing.
    • I could bare to rear

      Don't most people have to "bare" in order to "rear" anyways?
  • Seriously, is Sony intentionally driving itself into the ground? (and no, I'm not trolling)

    It's a known fact that consoles don't bring in revenue, it's in-house games and accessories and licensing fees. If the PS3 price were even remotely close to the XBox 360, I could see Sony not cutting the price on grounds of competitive pricing; that's clearly not the case. I can't see sales ticking up significantly through the first price drop, unless there's something I'm missing.

    • by Applekid ( 993327 ) on Thursday April 19, 2007 @05:02PM (#18804169)
      Consoles don't usually bring in revenue, no, but the PS3 is estimated to cost $800 per unit to get out the door but it's selling for $600. (The $500 model is discontinued.) Typically, the cost per unit is considered proprietary information so it's only an estimate. This means it's hard to pin down but I do believe this is the highest net loss per unit of any console ever. If they already have to sell a bunch of games and accessories (X) to break even, if they drop the price by another $100 they'll just have to have an average of each user now buy (X * 1.5) games and accessories.

      They're bleeding on PS3 right now, so should they bleed more? I guess someone crunched some numbers and came to the same conclusion you did.

      Putting on my tinfoil hat, I'd say these rumors of price drops that simply will NOT die are a combination of 1 part wishful thinking, 1 part wanting to make existing owners panic, and 1 part of helping to stifle sales as consumers who are on the fence about pricing would most certainly not want to buy if they anticipate a drop.
      • the PS3 is estimated to cost $800 per unit to get out the door but it's selling for $600.
        sitting on store shelves collecting dust is an interesting definition of selling : )
        • If not customers, it'll be retailers and distributors that eat that $600. Sony still gets to claim it since they shipped. (Middle men are making some money on them but it isn't much.)
          • by Rydia ( 556444 )
            If I recall, after a point retailers are able to force-sell excessive stock back to the manufacturer at discounted cost. I remember Nintendo tried to not do that and got bit sometime in the 80s.

            So even if they are shipped, that doesn't mean Sony is completely in the clear.
    • Re: (Score:2, Informative)

      by barjam ( 37372 )
      The Wii is being sold at a tidy profit.
    • Re: (Score:3, Interesting)

      by DrXym ( 126579 )
      The PS3 isn't just a console though, it's an entertainment system. Sony have lots of potential for revenue - sales of the system, games, downloadable games, DVDs, music, memory sticks + other accessories, blu-ray discs and of course HD sets. In the future they're bound to also sell music, films and TV shows through the system too. And users have lots of justification for spending more because it plays blu-ray, dvds, cds, games etc.

      I have no idea if Sony are doing the right thing, but people who thing the

    • by BobPaul ( 710574 ) *
      Sony is still probably selling at at least a $100 loss on components/manufacturing. Microsoft and Nintendo are both probably selling at around a $50 gain on components/manufacturing. If Sony were to cut the price they would take an even bigger loss.

      Right now it's safest for Sony to keep the price high while component/manufacturing costs decrease so as to diminish their losses. Even if they are selling slowly, they are still selling. If they decreased the cost, certainly they would sell faster but they might
    • It's a known fact that consoles don't bring in revenue, it's in-house games and accessories and licensing fees. If the PS3 price were even remotely close to the XBox 360, I could see Sony not cutting the price on grounds of competitive pricing; that's clearly not the case. I can't see sales ticking up significantly through the first price drop, unless there's something I'm missing.

      Sony has a 2 pronged problem. Too expensive, and lack of compelling exclusives. If they Dropped the price $200 and had a $39

  • Wow (Score:4, Insightful)

    by stratjakt ( 596332 ) on Thursday April 19, 2007 @04:48PM (#18803967) Journal
    Wait for demand for Blu-Ray drives?

    Is there any demand, whatsoever?

    Hell - demand for HDTVs isn't even all that high.

    Regardless, I can watch HD movies via Comcast on demand, download them via XBox 360, or to a PC.

    I have no problem at all getting HD content onto my screen.

    Why should (most)people care about plastic discs anymore?

    • "Wait for demand for Blu-Ray drives?

      Is there any demand, whatsoever?"

      Yes! I have a demand for the blu-ray drives; get down to the sub-$400 price point. Hurry!

      Personally, I'll be buying regular, old-fashioned, highly copyable, widescreen (if available) DVD5/DVD9 movies and shows until they stop making them, or when either one, or both, of the HD "standards" becomes:

      1) easily copyable
      2) an actual standard
      3) priced nicely
      4) there is no number 4
      5) guaranteed to play on any supposedly compatible drive. is tha
    • Re: (Score:2, Insightful)

      by pete-classic ( 75983 )

      Why should (most)people care about plastic discs anymore?

      Bandwidth?

      I don't have HDDVD or Blu-ray. Every HD source I've seen so far is seriously over-quantized. Cable, satellite, downloads (legal and otherwise) all look like crap (in ascending order of crapitude).

      It seems to me that the powers that be decided that more lines means more room for loss. HD in practice seems to be mostly a wash.

      I've got an ATSC tuner coming in tomorrow. Hopefully that means Lost and Heroes in actual HD.

      It appears that over-t

      • Movies on video marketplace on XBox Live look as good as their HD-DVD/BluRay cousins.

        Sucks you dont have broadband.
    • Wait for demand for Blu-Ray drives?

      Is there any demand, whatsoever?

      Hell - demand for HDTVs isn't even all that high.


      Actually, even the tech pages at the Wall Street Journal [wsj.com] admit that most people shouldn't buy HD-DVD or Blu-Ray yet, as it will be at least a year before anyone really has a need for either, and noone can predict what will happen. But you're correct about HDTV - demand won't really kick in until 2009, when everyone will start buying them (since they won't sell non-HDTV-capable sets in the US
      • Re: (Score:3, Informative)

        by Detritus ( 11846 )
        The FCC is mandating digital TV, not High Definition TV. I saw a cheap SDTV (14" CRT, digital, 480i) at a local big box store for $125. That meets the FCC's mandate and will allow you to watch all over-the-air programming, it just down-converts HD to SD.
    • Why should (most)people care about plastic discs anymore?

      You won't see ANY compression artifacts on blu-ray, even in fast-moving scenes. This is enough to get me off DVD... It really makes DVD look like VHS. Maybe those buying superbit won't care but everyone else will.
  • hyper-link much?
  • by Aeron65432 ( 805385 ) <agiambaNO@SPAMgmail.com> on Thursday April 19, 2007 @04:57PM (#18804099) Homepage
    They claim that "PS3 prices and shipment plans for the future should be determined by market trends and competition." There is no competition for who can sell the PS3, so they can arbitrarily price it wherever they want. This is a simple supply-demand curve, and they have put the price level where supply far exceeds demand, and anyone who has been to a Gamestop, Target, etc. can tell you this. I asked an employee at Target if he had any Wiis and he laughed a bit and said "No, but I've got plenty of PS3s.
  • by geders ( 206556 ) on Thursday April 19, 2007 @05:00PM (#18804147)
    I don't understand why people are confused about the lack of a price cut announcement.

    You don't tell the public that a poorly selling, expensive product is going to be $100 cheaper next month unless you want even lower sales for the next month. Lower sales for that month means even lower numbers of customers looking to buy software for the machine.

    The announcement of the PS3 price cut will come the same day as the PS3 price cut (see PSP price cut as an example).
    • by SuperKendall ( 25149 ) on Thursday April 19, 2007 @05:30PM (#18804553)
      You don't tell the public that a poorly selling, expensive product is going to be $100 cheaper next month

      Generally you have the right idea but PS3 sales are actually not all that bad - it's currently at a higher sales rank [eproductwars.com] than the 360 on Amazon, and has been since March 23rd when Amazon finally was able to keep stock around.

      I think you are right about the day of announcement of the PS3 price cut, but would further predict that it will come the day after the day Microsoft announces a 360 price cut, which will of course be same day Microsoft also cuts prices. Sony and Microsoft are waiting til one does a cut before the other one, and both are enjoying higher profits (and unknoably lower sales) as a result.
      • Sales rank is meaningless because Amazon.com sells far too few consoles to be considered a large sample; after watchin Amazon sales/sales rank for several weeks I noticed that (about) 20 sales in a day will put you close to #1 in the games section. NPD on the other hand is far more accurate and has sales for the month of March at:

        Wii: 259,000
        XBox 360: 199,000
        PS3: 130,000

        reuters link [reuters.co.uk]

        Also, Japaneese numbers have been released pretty constantly and the year to date sales for the PS3 and Wii are:

        Wii: 1,173,7
    • Ding ding ding ding! I'd give you +6 Insightful, but there isn't such a thing. And I have no mod points. Annnnd I'm kind of lazy, but you're spot on!
  • At the moment... (Score:2, Interesting)

    by Mockylock ( 1087585 )
    They have no reason to drive down prices. Right now, they're actually losing on units as-is. Not only that, but I'm pretty sure that people are buying the hell out of them, regardless of the price due to it simply being a Playstation. I couldn't see them changing the price and going from losing a bit on each unit, to plain burying themselves with every purchase.

    If Microsoft somehow purchases the Blu-ray/HD-DVD combo drives for 360 expansion, I believe Sony would be taking a swift kick in the nuts. I do
  • by FleaPlus ( 6935 ) on Thursday April 19, 2007 @05:06PM (#18804213) Journal
    In related news, Sony Computer Entertainment Europe is looking at layoffs of 10% of its workforce [kotaku.com], with additional layoffs planned for Japan and the US [kotaku.com]. Of course, Sony says this has nothing to do with low demand for the PS3.
    • It probably doesn't, although having a so-so launch lineup probably isn't helping much.

      If anything it probably has something to do with how well God of War and God of War II did. My guess is that the US development team showed up the rest of the entertainment division so badly, that everyone not involved in those two games look like dead weight both figuratively and on the books.

  • by asc99c ( 938635 ) on Thursday April 19, 2007 @05:20PM (#18804447)
    I've gone for the full 1080p setup over the last few months, which includes a PS3. Last weekend we had a few people round and spent a bit of time playing Gran Turismo HD and Motorstorm. Two of the guys have 360s and were pretty impressed by the jump in graphics quality. GT plays properly in 1080p, and although Motorstorm only runs at 720p, it is really breathtaking. I can't fairly comment on Xbox360 quality because I've never seen one hooked up properly - the PS3 looks rubbish connected through SCART or component at 576i resolution, and for Xbox360 that's the only setup I've seen. So my unfair comment is that really the Xbox360 is half a generation behind Sony/Nintendo. Other consoles that have tried the same thing have started well and kind of fizzled out once the competition got going.

    I know a few people thinking about getting a PS3, and it's not really the price issue that's holding them back but the content. Gran Turismo and Grand Theft Auto are two of the big games people are waiting for. Also a lot of places are still price gouging - the games seem to be £35 online but £50 on the high street. Some decently priced Blu-Ray movies would also be good. I found Tesco are selling them for £13 now, but most retailers are still around the £25 mark. Unfortunately I can't find Casino Royale or Planet Earth in stock anywhere :(
    • Re: (Score:3, Insightful)

      by GrayCalx ( 597428 )
      Just wanted to throw in that the 360 does look pretty amazing at 720p. So far seeing ps3 games and 360 games at 720p I haven't seen anything on the ps3 that really "wow'd" me. (Not to say it didn't look good, just nothing that made me regret getting a 360). Can't speak to the 1080p though, so thats definitely an opportunity for Sony to excel if the 360 doesn't start putting its own 1080p games out.

      On the other hand again its ridiculous to say that the graphical output of a 360 in HD is a half-generati
      • Re: (Score:3, Insightful)

        by asc99c ( 938635 )
        Yeah the Wii isn't half a generation ahead of the 360 graphically. But it does have controllers a generation ahead. That's part of the problem launching first. Sony got to see what people thought of the 360, and also hear what Nintendo was doing, and try for the best of both.

        The tilt sensors in the PS3 controller are a nice touch and I'd like to see some games make better use of it. Tony Hawks uses the tilt sensors for balancing on grinds / manuals. It feels like a really natural way to do it and for m
    • Gears of War @ 1080i looks pretty darn amazing, even though it's component video. Comparing a high def signal to a non high def signal is silly, a lesson I recently learned. I sold my HDTV and had ordered another. Before the new TV arrived, I was playing on a standard old 4x3 tube. Gears of War looked so much worse on that TV :( (not bad per say, but not nearly as nice as 1080i).
    • Re: (Score:3, Insightful)

      by Raenex ( 947668 )

      I know a few people thinking about getting a PS3, and it's not really the price issue that's holding them back but the content.

      If $600 is no big deal for you when buying a game console, and you read Slashdot, I'm guessing you are a well-payed techie with lots of free spending money, and your friends are too. Sony needs people outside of this niche. I've read lots of forum posts from people who want to buy a PS3 but are waiting for more games and a price drop. I'm thinking they could sell a lot more at $400, but I don't think they can afford to sell them at this price, even 6 months from now.

      Better luck next round, Sony.

  • Didn't RTFA but that quote doesn't actually feature a denial from Sony, just that they haven't made any noises about a price cut publically.

    In the UK prices dropped £25 ($50) as a special offer for the Easter holidays. However despite these holidays ending the price remains reduced as stores are trying to clear stockrooms filled with PS3 units. Consoles have very tight margins compared to games but take up huge amounts of space. Stores can't sell the consoles at the current price, the longer they ha

  • Guess they know that, without price cuts, they will be at best 3rd place.

    Which is kind of a shame, in that they have the better internal machine, even if they have very very few fun games that are designed for it.

    I'll just be having fun downloading the final version of Opera for free to use on my Wii, and playing Super Mario Paper Cut ...
  • Cartmanland Strategy (Score:3, Interesting)

    by rlp ( 11898 ) on Thursday April 19, 2007 @07:06PM (#18805945)
    Sony needs to take their current marketing plan to the next level - "This is the incredible new Sony PS/3 - and YOU CAN'T BUY ONE!!!"
    • by rlp ( 11898 )
      My bad - Sony isn't using the Cartmanland Strategy, Nintendo is. And it's working!
  • Ok so let's assume the article is true, then sony's being stupid, games arn't going to sell 600 dollars, yadda yadda. It's exactly what you think now.

    However how could it be untrue? Well Sony could be thinking about a price drop (If they have a brain in their head they are considering it, hell all companies are considering when not if they will cut prices). However any producer of goods knows this fact, NEVER let them know their's a price drop coming. Why would I buy a 360 today for 400 dollars when I c

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