Gamedaily: Sony open to PS3 price cuts.

[liolio]

I was replying to his comment about price cuts being possible (see original quote). But anyway...

Firstly, by 2008, the PS3 will only be 1yr old. I don't think that's too late to start building up momentum to compete. The games that are being developed for the PS3 is quite appealing, and if SONY can reduce the consoles price, that will be a good start. I don't doubt that they have an uphill battle on their hands, but I also think that it's far too early to really say what the market really wants.

This is as anticipated as saying that sony is doomed, We know almost nothing of what is coming for MS and nintendo for 2008.

Given the Wii, success I'm sure nintendo will come this some huge announcements at E3 or at the Tokyo game show, I wouldn't be surprise if some huge jrpg make their way to the Wii for example.
I expect huge Japanese editors support for the Wii during 2008.
More, it's very likely that Wii will have the same multiplatform games as the ps3 and the 360.

For MS I wouldn't believe that they will have nothing impressive to show us in the same time frame.

No matter how much Sony cut the ps3 price, this price cut will be easily match by MS or even more by nintendo.
If the ps3 costs 499$/399$ by 2008, the Wii will cost 150$ and the 360 will be 199$/299$.

If Sony is in a REALLY bad position and they can afford a more dramatic price cut, we would have a
ps3 at 449$/349$ by 2008.
I think that nintendo wouldn't change the price because they would already be in a very different price range, so 150$ for the Wii.

For MS, it's different, we can think about two possibilities :
1) Everything is fine for MS and they don't fell the need to change the price, so we would have a 299$/199$ 360. This would mean that sony no longer scare them, not so great.

2) MS think sony is dangerous, so they cut the 360 price by the same amount as sony did with the ps3.
So we will have a 249$/149$ 360, but in fact this is even worse for sony, not only the 360 will be way cheaper than the ps3 but it will be very competitive against the Wii.

Anyway I don't think this will happen, it would bet on a 299/199 360 and 499/399ps3 for 2008.

Secondly, I believe that by the end of this gen, the PS3 will have the highest number of games. So one of those 3 factors you speak of should take care of itself.

Well, it's your opinion and I don't agree.

I don't know witch system will have the highest number of games by the end of this gen, what I know is that it's the system with the higher market share ( could be estimated that way "attachment rate X installed base" ) will have the higher number of games by the end of this gen.

 

[Paul_G]

I was replying to his comment about price cuts being possible (see original quote). But anyways...

Firstly, by 2008, the PS3 will only be 1yr old. I don't think that's too late to start building up momentum to compete. The games that are being developed for the PS3 is quite appealing, and if SONY can reduce the consoles price, that will be a good start. I don't doubt that they have an uphill battle on their hands, but I also think that it's far too early to really say what the market really wants.

Secondly, I believe that by the end of this gen, the PS3 will have the highest number of games. So one of those 3 factors you speak of should take care of itself.

Well it is possible, this is something others were discussing in another thread i think. It is possible, but it's simply not viable, that's what you're saying.

The PS3 may well be a year old in 2008, but whatever momentum it has built means nothing in isolation. One might look at the sales of the xbox and say 'wow, 25 million' or however much, but then you see PS2 sold many times that, and you'd not consider it to have sold very well. As it is, i can't see PS3 building the necessary momentum in time to stop 360 or Wii running away with things. The only way i see them changing this is to either drop the price or release some amazing games that negate the price, and to do it soon. Currently, the games that are coming in the next 6 months look good, if not real system sellers.

As far as games are concerned, i'm talking about the necessary conditions to start a snowballing lead. You need games to get more customers, you need more customers to get more games. You also need price drops to help drive both, since a cheaper console means more buyers and therefore more games. Having more games by the end of the generation will be irrelevant. By then, we won't care who won, it'll be the next round. What Sony needs is more games now not in a few years time.

 

[assen]

At some point, when the PS3 price becomes low enough, the relative price won't matter. The fact that there is a $150 360 won't stop a $250 PS3 from selling, if it has decent games; while NO amount of decent games will help a $500 PS3 against a $300 360.

(edit: sorry, missed the NO in "no amount of decent games", which turned the meaning my post upside down.)

 

[Paul_G]

At some point, when the PS3 price becomes low enough, the relative price won't matter. The fact that there is a $150 360 won't stop a $250 PS3 from selling, if it has decent games; while amount of decent games will help a $500 PS3 against a $300 360.

No it won't, but the relative sales will. Unless there is something wrong with the console, for instance there aren't any decent games or the graphics are poor, which in the case of 360, we know they're not, then it will continue to sell better than it's $100 more expensive rival, continuing the snowball effect.

 

[liolio]

At some point, when the PS3 price becomes low enough, the relative price won't matter. The fact that there is a $150 360 won't stop a $250 PS3 from selling, if it has decent games; while amount of decent games will help a $500 PS3 against a $300 360.

This won't happen soon
What will happen it's a 299$/199$ 360 facing a 499$/399$ ps3 and the the perception for consumer that system are on par technically.

When this will happen what will be the respective game library of both system?
Will very few games be enough to offset a 100$ difference?
Technically with most games on par do consumer will think its worse it?

Later, way later, the br playback ability will help as soon as 2008 or 2009, I'm far from sure.

 

[Archgamer]

By the time the PS3 becomes 250, both the Wii and 360 will probably have a 20-30 million lead on them.

 

[wazoo]

By the time the PS3 becomes 250, both the Wii and 360 will probably have a 20-30 million lead on them.

That is pretty unrealistic to think that the X360 will have lead wich would bigger than the total number of consoles they have sold previous gen when they have yet to prove they can sell to a bigger userbase, considering the library, the fact they are dead in Japan and have modest sales in Europe.

For the Wii, anything is possible, bad or good, considering Nintendo is changing the rules and the boundary of the market.

 

[liolio]

It's as unrealistic than expected the ps3 to sit on shelves in Japan...

 

[dobwal]

this is what many many people seem to forget, this is also the reason for such slow sales after xmas.

Jan, is always a hard month for many. There's no way most people can easily shell out $600 for the PS3 right now.

HOWEVER, that does not mean they do not plan on owning one eventually. Sony knows this, which is why they haven't panicked yet.

If by E3, PS3 sales are still slow, then they may look to announce a price cut (which i think is coming regardless of how much they sell by E3). The price cut many not be anything substantial, possibly $50 less on each and possibly another free blu-ray movie.

January is not the slowest month of the year especially not in the US where the summer months are usually the slowest. January marks the beginning of the slow season for sales in japan so I doubt you will see Feburary-September bringing a large up swell of better sales.

Sony will be able to afford this, remember the price of production is dropping steadily, and there is great need to move these systems that they are mass producing.

I think 4mil by E3 is easily possible and close to 10mil by xmas is not bad at all, hardly making the PS3 a failure. And furthermore, when the big PS3 games come out in 2k8, a price drop making the PS3 (atleast the 20gb) model available for $399 will start moving systems like crazy, and it will be the PS1 and PS2 all over again.

I'm surprised how many people don't see this. You expect millions of PS3 fans to pass up playing the new MGS, GT, Tekken, FF, R&C, KZ, DMC, GoW, not mention the host of AA first and second party games like heavenly sword etc? Get real.

Of course if you are a PS3 fan you are probably going to get a PS3. But there is no gaurantee that a PS2 owner will get the PS3 as Zelda, Mario and Metroid didn't stop fans of those franchises from abandoning the GC.

 

[dobwal]

That is pretty unrealistic to think that the X360 will have lead wich would bigger than the total number of consoles they have sold previous gen when they have yet to prove they can sell to a bigger userbase, considering the library, the fact they are dead in Japan and have modest sales in Europe.

For the Wii, anything is possible, bad or good, considering Nintendo is changing the rules and the boundary of the market.

His point is a counterpoint to a previous post

"At some point, when the PS3 price becomes low enough, the relative price won't matter. The fact that there is a $150 360 won't stop a $250 PS3 from selling, if it has decent games; while NO amount of decent games will help a $500 PS3 against a $300 360."

While that statement maybe true. If the PS3 must drop to $250.00 to be competitive then unless the PS3 drops to that price range pretty soon, the sales at that price range would have no impact as the market would have largely been determined. The market was already determined before the PS2 hit $250.00 during the last generation.

 

[TheChefO]

For the Wii, anything is possible, bad or good, considering Nintendo is changing the rules and the boundary of the market.

Agreed - regardless though, they will expand the market which in my eyes is a good thing.

For the PS3, anything is possible, bad or good, considering Sony is changing the rules and the boundary of the market.

^From a financial standpoint.

If Bluray is as successful as dvd this will be a very good thing for Sony. If it falls into mediocrity sales wise then not so much. Same for the games division.

Right now I give them much better odds to have BR be the next dvd than ps3 be the next ps2 (game/sales wise).

Assume BR dominates the market and HD-DVD pulls the plug this year (crazy and unrealistic I know but stay with me) - Would Sony then use these sales to offset ps3 losses and bring PS3 into mainstream pricing? (<$300)

 

[assen]

Assume BR dominates the market and HD-DVD pulls the plug this year (crazy and unrealistic I know but stay with me) - Would Sony then use these sales to offset ps3 losses and bring PS3 into mainstream pricing? (<$300)

No way. Even if HD-DVD throws in the towel this year (highly unrealistic), sales of Blu-ray movies will be dwarved by sales of SD-DVDs, and will be insufficient to subsidize PS3. Mainstreem pricing of PS3 will come from Sony's own pockets in 2007 and even 2008, not from the pockets of Blu-ray customers.

 

[Mendel]

real time price change?