The PS3 price drop, part 2

0098386

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Original poster
Jan 18, 2005
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This is interesting. It appears Sony dropped the price of the 60gb PS3 by $100, and by the end of July the 60gb will be discontinued and th 80gb will be out... at $599.

SCEA announced a USD 100 price cut for PlayStation 3 earlier this week. A new 80GB model will come bundled with a copy of Motorstorm and will retail for USD 599.
http://www.gamesindustry.biz/content_page.php?aid=26704


And in ol' Europe land (lol, yea, Sony Europe) we're not getting the 80gb model. Instead of dropping the price (which is what people are really after), they're giving away accessories.

In Europe gamers will get a "starter pack" at an unchanged price of £425 for the 60GB machine, with two games and two controllers included.
http://news.bbc.co.uk/2/hi/technology/6896261.stm

They really don't like us chaps do they?
 

zap2

macrumors 604
Mar 8, 2005
7,241
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Washington D.C
I read that today....and that is annoy to say the least. People want a price drop,not more stuff bundled in. 80Gb isn't needed, you can upgrade the HD yourself.
 

mkaake

macrumors 65816
Apr 10, 2003
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mi
Wow.

I guess this means they really didn't 'get it' - that people really do want to like the PS3, but they don't like the price...

So after making a lot of people (finally) happy about the PS3, it turns out they're basically just clearing out old inventory so they can sell the 80 gig version at the old price point.

They really don't get it. No matter what the cost of the hardware inside of the PS3 is, they won't have a large retail success unless they drop the cost of the hardware to something a bit more reasonable. Once the console is affordable (relative to the other 2 offerings - let's not start arguing about jobs), it'll sell like hotcakes. People will eat it up. And a good amount of their bad press will suddenly go away...

Of course, by using the hardware they did, they made it difficult (or near impossible) to sell at a 'reasonable' cost, without taking on some pretty dramatic losses... and you can't sell at a loss forever.

I'll stop before I start a rant that no-one wants to hear anyway...
 

Sky Blue

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Jan 8, 2005
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That can't be true. They made a big song and dance about it at E3, but it's only going to be for a couple of months?
 

zero2dash

macrumors 6502a
Jul 6, 2006
846
0
Fenton, MO
That can't be true. They made a big song and dance about it at E3, but it's only going to be for a couple of months?
You mean a month, the current month. ;)



(reposted from the other/similar thread)
When I finally do get a Ps3 1-2 years from now, I plan on buying a used 20gig anyway. I'm surprised that they're going to cease production on the $499 60gig now, which was a start in terms of getting more people to buy the system.

$599 is too steep IMO no matter what pack-ins or incentives you give. The bottom line price of the system needs to be no more than $499, and optimally - $399 if they really want to start making a dent in the installed userbase of the other two consoles.

So far, Sony's done a few things right, and a lot of things wrong IMO. :rolleyes:


[additionally]
The Ps3 is not worth $600 right now.
I can't even find a reason later on down the road to pay $600 for it, even when the two titles I really want for it come out. (WipeOut + God of War 3) I won't even pay $500 for it. $400 is a stretch; ideally I'm hoping to get a used 20gig for $300-$350, that, I can deal with. The system isn't worth the money. The exclusives aren't there for me. And I don't really care at this point about having a BluRay player (even though I'd like to have one, I can certainly live without one for a few more years because I'm happy enough watching regular ass dvds in 480p).
 

sarcosis

macrumors 6502a
Apr 25, 2006
586
6
These United States
I have to say, i'm quite surprised by this move. I'm hoping that it's not true, but i think it is. Sony has their head so far somewhere, it's not in this world. The number say it. Let's see, 360 is still about 7-8 Million units still ahead. Wii is going crazy. PS3...chirp...chirp. It's lost many exclusives, only ones left are MGS4 and FF series. I think MGS4 would be worth it, but FF i'm getting done on. Other things have my attention.

Interesting thought though, what if this is a move to move a ton of units really quick. Price is good, looks like they are liquidating. 5 Free movies. Loooks like a ton of goodies. Might spark a buy frenzy only to say, "Oh wait, it's still here." that would tick off consumers, but it could be to just move a ton of units.
 

gkarris

macrumors G3
Dec 31, 2004
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"My Own Private Idaho”
I heard this is FUD - they're just going back to 2 price points, $499 and $599. I would imagine they will slowly get the non emotion engine models here to the US to make up for the price cuts...
 

zap2

macrumors 604
Mar 8, 2005
7,241
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Personal, I think Sony should have kept the 20GB, and dropped the price to 399, and the 80GB to 499, without Motorstorm/


But Sony is make more on 80Gbs PS3, they were on the 60Gb....because 80Gb dropped the emotion engine, and the price difference for a 60Gb-80Gb harddrives is small....Motorstorm is the only saving grace.
 

gkarris

macrumors G3
Dec 31, 2004
8,140
802
"My Own Private Idaho”
Personal, I think Sony should have kept the 20GB, and dropped the price to 399, and the 80GB to 499, without Motorstorm/


But Sony is make more on 80Gbs PS3, they were on the 60Gb....because 80Gb dropped the emotion engine, and the price difference for a 60Gb-80Gb harddrives is small....Motorstorm is the only saving grace.
I'm reading about Sony on consumer complaint sites. The one common word that's about about them is "arrogant".

They feel their machine is worth the big $$$. Hence never selling at at $399 (for at least the first 3 years).
 

srobert

macrumors 68020
Jan 7, 2002
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This got to be a mistake. It doesn't make sense. :confused:

1) PS3 priced at $600: Sales are very slow due mainly to high price.
2) PS3 price dropped to $500: Sales skyrocket 2500%
3) $500 model dropped. New starting price back to $600.

< DOES NOT COMPUTE >

The guy must have been misquoted.
 

2nyRiggz

macrumors 603
Aug 20, 2005
6,159
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Thank you Jah...I'm so Blessed
I think Sony is trying to get out all the 60 gig sku(which won't be at the end of july) and replace it with the 80gig sku which will drop down to $499 or $549. Sony only wants one model.

Does the president of SCEE got beef with SCEA....he was really acting like a jackarse.


I don't think it would make much since to put the price point right back to where it was...they are actually making a killing now.



Bless
 

Sky Blue

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Jan 8, 2005
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SCEA has denied 'inaccurate' reports that its $100 price cut on the 60Gig PS3 is simply a move to clear stock before offering solely the higher priced 80Gig version.

Image A spokesperson for Sony in the US told Next-Gen, “"As announced this week, SCEA's product offering in North America consists of a 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499. We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future."

Officials at Sony Computer entertainment Europe – including president David Reeves – had said that the US price would still be $599 because that would be the only model on offer once 60Gig stocks ran out. If true, this would have rendered the $100 price cut a virtually pointless gesture, meaning that PS3 had not been cut in price, but was simply being offered with extra memory and a bundled game.

SCEA has reacted with puzzlement to the European perspective, suggesting that there may have been an incorrect interpretation. The spokesperson said, “Those quotes [published by a UK-based game industry website] from David Reeves are not accurate. He said that if they had lowered the price in Europe, that territory would have run out of their current inventory by the end of July.”

Previously, a senior PR at Sony in London had backed Reeves statement, confirming that he had been talking about the US market, though the PR later distanced London from the remarks, telling Next-Gen, “I believe that is the plan, but SCEA has not formally made an announcement on any timeframe. As it affects the US you should confirm with SCEA.
”


SCEA subsequently denied the story entirely. However, questions will now be raised about the company's long term plans for the 60Gig version and for its $599 / $499 pricing strategy.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6427&Itemid=2
 

Antares

macrumors 68000
I think Sony is trying to get out all the 60 gig sku(which won't be at the end of july) and replace it with the 80gig sku which will drop down to $499 or $549. Sony only wants one model.
That does make sense. Producing only one model would save Sony on costs. Only one size drive for them to intall and one printed package rather than two. Not to mention the extra overhead involved in manage multiple SKU's. In the long run, the small cost savings could add up.
 

takao

macrumors 68040
Dec 25, 2003
3,820
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I think Sony is trying to get out all the 60 gig sku(which won't be at the end of july) and replace it with the 80gig sku which will drop down to $499 or $549. Sony only wants one model.
true but at the moment it is looking like the left hand isn't knowing what the right hand does because there are already words going around that europe will get a 120 Gb version instead of a 80GB version

on the plus side they anounnced that the european bundle including motorstorm, resitance and 2 controllers wil lcost 599

why not get rid of those 2 games and second controlelr and finally sell the god damn thing for 499 or 449 .. they would be selling a boat load more than insisting on the 599 price point which is killing them in europe
 

Sky Blue

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Jan 8, 2005
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and now...


http://atvs.vg.no/player/?id=10235

"[We do not] have a 2 SKU strategy in the US, we learned very quickly customers respond better to having one SKU than two." (lol, only when the lower-price SKU is crippled beyound all worth)

"We dropped the price on the 60GB model, as you know that model is no longer in production, once it's no longer on store shelves it will just be the $600 SKU."


Does somebody run Sony or is it every man for himself?
 

2nyRiggz

macrumors 603
Aug 20, 2005
6,159
66
Thank you Jah...I'm so Blessed
This is getting kinda nuts now because a lot of different execs at Sony are saying different stuff but that video confirms it I guess.

We'll just have to see..these companies always tell us something then turn around and do another thing.

Back to square one with the price I guess....hope ya'll get those 60gigs whiles they last.


Bless
 

Chone

macrumors 65816
Aug 11, 2006
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In any case... 2 games and 2 controls doesn't sound bad to me, those are things you were going to buy anyway so in a way you ARE saving money, in fact you are saving a whole 120$ plus whataver 2 controllers cost.

Isn't that like... good? A PS3 is worthless without games and they are giving you two for free...

Now the question is whether those two games are good games or cheap PS network arcade games.
 

zero2dash

macrumors 6502a
Jul 6, 2006
846
0
Fenton, MO
I used to think Microsoft was stupid for having 2 (and then 3) skus, but with Sony f'ng up this bad on making their minds up on skus and pricing...it's clear to me IMO that Microsoft had it right in giving people choices with lower priced options rather than saying "here's what you get, all or nothing; now pay up".

Sony is delusional. :rolleyes:
They act as if they're in the lead and no matter what they do, people will dig in. I guess they missed the memo about them playing "catch up" rather than "leading".
 

0098386

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Jan 18, 2005
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In any case... 2 games and 2 controls doesn't sound bad to me, those are things you were going to buy anyway so in a way you ARE saving money, in fact you are saving a whole 120$ plus whataver 2 controllers cost.

Isn't that like... good? A PS3 is worthless without games and they are giving you two for free...

Now the question is whether those two games are good games or cheap PS network arcade games.
I think you missed the part where the $499 60gb PS3 sold well.

People just don't want to pay $599/£430 upfront. Most shops here already bundle 2 games with the system, normally Motorstorm/Resistance and a cheaper game.
 

danny_w

macrumors 601
Mar 8, 2005
4,380
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Austin, TX
Wow.

I guess this means they really didn't 'get it' - that people really do want to like the PS3, but they don't like the price...

So after making a lot of people (finally) happy about the PS3, it turns out they're basically just clearing out old inventory so they can sell the 80 gig version at the old price point.

They really don't get it. No matter what the cost of the hardware inside of the PS3 is, they won't have a large retail success unless they drop the cost of the hardware to something a bit more reasonable. Once the console is affordable (relative to the other 2 offerings - let's not start arguing about jobs), it'll sell like hotcakes. People will eat it up. And a good amount of their bad press will suddenly go away...

Of course, by using the hardware they did, they made it difficult (or near impossible) to sell at a 'reasonable' cost, without taking on some pretty dramatic losses... and you can't sell at a loss forever.

I'll stop before I start a rant that no-one wants to hear anyway...
This reminds me of how Sony didn't "get it" in the pda market either (way back when). The Clie series, esp. the higher-end NR, NX, and NZ series, were always more expensive and constantly changing so that the consumer could never keep up. If I recall they did this same kind of "drop price, come out with new model, go back up in price" model back then too. And it didn't fly then either. Sony finally had to get out of the market completely (at least outside of Japan).
 

pilotError

macrumors 68020
Apr 12, 2006
2,238
4
Long Island
They finally completed the ramp up and overcame the laser diodes shortage and they eliminated the emotion engine in the 80GB version.

Why are they still selling it for $599?

Their Standalone Blu-Ray players have dropped to almost half, are they looking to turn to profitability faster?

I bought the $499 special because I wanted a decent Blu Ray player, but it sounds like the 80GB model is actually inferior.

Did they update the HDMI controller chips in the 80GB or any other improvements?
 

sikkinixx

macrumors 68020
Jul 10, 2005
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Rocketing through the sky!
*grabs Sony*


*slap!*


idiots. Way to ruin a near perfect E3. They had the best press conference, Killzone 2 got a general thumbs up, price drop, rumble controllers coming soon, lots of games, MGS exclusive...now this? They must have the stupidest people working in their front office. **** me.

Although the Motorstorm pack is a limited edition so maybe they introduce $500 SKU #4 after the 60GB are gone? They better, for their own sake.
 

gkarris

macrumors G3
Dec 31, 2004
8,140
802
"My Own Private Idaho”
Well, now it all makes sense when Sony originally stated, "what price drop?" They're just getting rid of all the 60Gig models and replacing it with the 80Gig w/ game package.

What if you don't want the game? (People aren't buying the Wii because of the pack-in).

The whole pack-in game thing is soooo 20th century....