No PS3 price cut for Europe because it would 'Annoy'

MRU

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Out of the horses mouth. Sony PR must stop taking lessons from Bush

Sony: EU PS3 Price Cut Would "Annoy" People
Sony Computer Entertainment Europe president David Reeves justifies European PS3 bundle.
by Rob Burman, IGN UK
UK, July 23, 2007 - Sony Computer Entertainment Europe president David Reeves has said that a European PlayStation 3 price cut - similar to the $100 drop announced in America - would "annoy a lot of people", justifying the European Value Pack, which comes bundled with two games and two controllers.

Speaking on the semi-official PlayStation blog Three Speech, Reeves explained that the summer period just isn't the right time to start slashing costs: "The sales rate goes up for a couple of weeks, because there's not much demand out there, and then the sales rate comes down again until you get to the end of September/the beginning of October and it all starts to heat up".

He added that the US price drop was more acceptable as the PS3 has been on sale there for more than six months. However, Reeves would not speculate as to whether Europe might receive a reduction in a similar time frame.

"We have a plan and we're going to stick to it," he said. "We are confident but not arrogant about reaching a very, very good installed base on PS3, and having the same momentum that we had with the PS2. We're not putting our heads in the sand - we know it's not selling that well, but we know that it's selling according to the targets."

As Reeves put it, "I see this more as kind of like a tsunami. It starts out small and gathers speed and eventually, after four or five years, it will start to take you over." That being the case, Reeves noted that this Christmas isn't critical for Sony, with the company looking ahead to Christmas 2008 for the PS3 to really take off.


"We know it isn't selling but it's making it's targets" :rolleyes: OMG did he actually say that. What a sap.

Christmas isn't critical for Sony, were looking to Christmas 2008 to take off ? :rolleyes::rolleyes: Just get's better doesn't it folks.


Because I'm sure by Christmas 2007, Wii & 360 will not have sold any more units and after all the biggest selling period for retail (holiday season) isn't that important, after all we are Sony - were not arrogant because we know better......
 

2nyRiggz

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Aug 20, 2005
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Thank you Jah...I'm so Blessed
Its the norm aint it...someone from sony talking out of there arse. Every christmas is important...ALL sales count don't you think.

Just hoping those 2007 game make the target release date.



Bless
 

MRU

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Its the norm aint it...someone from sony talking out of there arse. Every christmas is important...ALL sales count don't you think.
We know that, so why the BS coming from Sony again. It makes you want to get all the PR guys in one room and slap them all profusely.
 

Osarkon

macrumors 68020
Aug 30, 2006
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Price drop's only 'annoy' people who have just bought the damn console, for everyone who wants one, they love price drops. That's just how it is and how it's always been, whoever heard of a company refusing to have a price drop for something as ridiculous as that.
 

0098386

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What?

Who on earth would it annoy? Sure you have early adopters, but they're (we're?) fools who don't mind paying extra to be part of the early crowd anyway!

It's not even that good of a deal. IIRC Play and even Gamestation and Virgin have some very sweet PS3 deals.

It's a shame that 300 film has made my classic "this is madness" line a cliche.
 

Coded-Dude

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Q: So why didn’t we get a PS3 price-cut in the UK?

David Reeves: If you’re a consumer — and we introduced the PS3 in March for £425 or 599 Euros – let’s say you bought one at the end of April and have been using it, playing Resistance: Fall of Man and MotorStorm. We’ve only been on the market for three and a bit months. Our thought process was: “Wait a minute – we’re actually not doing too badly – we’re not selling as well as Wii or DS – but seasonality-wise, compared to, say, PS2 at the same time we launched it in 2001, we’re actually doing quite well on a regional level”. It’s exactly the target that we sought. July is not really a gamers’ month unless you get a big, big title. So we thought if we reduced the price, we’d annoy a lot of people. We did think about it, but we also felt that it wasn’t doing that badly. In the US, they’ve been going for more than six months, so they took the decision that going down in price was a better thing to do than a value pack.

Q: The fact remains that right now, if you want to buy a 60GB PS3 over here – admittedly with an extra controller and game – it will cost you £425, but in the States, it will cost £250. That raises the spectre of grey-market imports, which Sony has been tough on in the past. Is that something that worries you?

DR: The value in there is £120 to £125. We know that most people, anyway are going to buy two to 2.5 games. So when you do the maths, it’s going to be $499, which is £250, plus two games and a Sixaxis controller. So that’s going to come up to £380 to £390. But there’s VAT in Europe, so you have to take 15 per cent off, and there’s GST in the US, and the average sales tax is 8.5 per cent. So when we did the maths, and this is the case in Australia as well, they are exactly the same. We could have omitted the Sixaxis controller and just put two games in, but it wasn’t enough – we wanted to have a level playing field. But not drop the price – because we believe that dropping the price in the summer doesn’t work.

If you drop the price in the summer, the sales rate goes up for a couple of weeks, because there’s not much demand out there, and then the sales rate comes down again until you get to the end of September/the beginning of October, and it all starts to heat up. We’ve had more success doing that either earlier in the year, in March, or later in the year, but doing it in the summer just hasn’t worked for us. We’ve tended to do these starter or value-added packs, and people have come out and said: “You know, that’s not bad”. That keeps us going in the summer. But we realised we had to – to use an old Chris Deering expression – take some air out of the tyres to get to the next level.

Q: What are the big first-party PS3 games that really stand out for you beyond Killzone 2?

DR: They haven’t been announced, but I’ll give you the thought process. We now have, every quarter, something called Gameshow where we all get together globally and look a what Worldwide Studios are producing. Now, we don’t see every game at every session, but every session, we see five or six new IPs which we can rate. I can, hand on heart, say that there are six or seven such games, coming in the next 18 months, which are absolutely spectacular. There are some that are very emotional – one of the objectives we gave Phil Harrison is to make people cry. We know that in the middle and the back end of next year, these are going to come out and people will say: “I have never seen anything like that before”. We just have to be a little bit patient – there will be more God of Wars and so on. What has been remarkable is that there was a crash programme to put games ion the PlayStation Network – LittleBigPlanet was originally designed for that. We’ll see that some of them will be online, but some will be done as full-blown games. We started that programme over three years ago.
FULL INTERVIEW

He makes some decent points, but alas - he(they) can't please everyone.
 

0098386

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IMO they should have forgotten about bundling games, or giving the options which ones you can pick (LOL. Resistance and Motorstorm), dropped the price £100 and stuck with 2 controllers in the box.

HDMI cable inbox plz. If HD is the future and all that.

VGA accessory needed.

Still though. Thanks for not annoying me Sony!
 

Coded-Dude

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Well your annoyance will be short lived ;), as they will more than likely drop the price this winter(if not it will be dropped by march - and there will be great games by then as well)
 

GFLPraxis

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Actually, as far as arrogant Sony comments go, I would say this isn't one. Nothing on the scale of "People will work two jobs to get one" or "We could sell five million without any games on brand strength".

If you put the quote in context, the Sony guy backs up his reasoning pretty well. It makes sense for Sony. However, he cites poor summer interest as a good reason not to drop the price; this is true, but the question is, does this mean Sony WILL drop the price around Christmas?

If they do, then great. If they don't drop the price around Christmas, then this guy was just talking fancy to get out of the question. Hopefully they will drop the price.

But I think people are getting too defensive whenever Sony comments, based on past arrogance. I found it interesting at E3 that when I met Sony PR directors they were always new to the company. I gave one advice to watch out for comments like Kutaragi was making as that is what is getting their fanbase irritated.

"I see this more as kind of like a tsunami. It starts out small and gathers speed and eventually, after four or five years, it will start to take you over."
Okay, that's just ridiculous; after five years, the console war is over and no one cares anymore. Sadly, this is probably what's going to happen; by the time Blu-ray is so cheap that the PS3 drops to the same price as the 360 and they're both in the $150 range, the PS3 will start selling well and perhaps even outselling everything, but it'll be so far behind the war'll be over and the Wii 2 and XBox 720'll be coming.
 

Coded-Dude

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I guess you'd have to understand it from a business perspective for it too make any sense at all. (edit - what Antares said)

Sony would definitely annoy/abandon all early adapters if they dropped the price a mere 3months(and some change) after launch.
To them, that is a bigger mistake than "annoying" gamers who were probably never gonna buy the console in the first place.
How many would just return their console for a refund, and turn around and buy the reduced price one.......?
 

sikkinixx

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Jul 10, 2005
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Rocketing through the sky!
I thought it was getting a price drop at the Lezpeg (sp?) show next month?

but again Sony would do well to put a leash on their PR department (particularly Reeves after E3 and then this ...doh) and pray that everyone doesn't buy 360's/Wii's before they actually have some games worth buying.