20GB PS3 Discontinued

[Crossbar]

That's not what I'm saying. Sony's costs are going to drop substantially later this year when 65nm becomes standard and when BR costs lower. The marketplace is forcing them to $500 on the high SKU. If they drop the lower SKU then they won't lose as much money.

I seriously doubt they will reach high volumes just by dropping the price to $500.

And why is the marketplace forcing down the price of the high end SKU?
I think the high end SKU can be slightly changed (like a slightly larger HD, that costs Sony maybe $5 extra) and the price can be kept as is.

 

[quest55720]

That's not what I'm saying. Sony's costs are going to drop substantially later this year when 65nm becomes standard and when BR costs lower. The marketplace is forcing them to $500 on the high SKU. If they drop the lower SKU then they won't lose as much money.

The question is will those cost savings go towards breaking even on the hardware or a price cut? With MS dragging its feet on a price drop it wouls seem sony is our best hope for price cuts this fall.

 

[Diamond.G]

The FCC is how the 80gb was first "uncovered"

http://forum.beyond3d.com/showthread.php?t=40023

Might it be a case of the FCC needing to know if any changes are made to a previously approved product?

It seems to me that if it was Sonys intention to replace the 20gb version with a 60gb version sans the "premium" stuff then they should also have informed the FCC about that by now.

Um if you read the PDF, they submitted that the Bluetooth module constuction is different than before. But they feel it doesn't change the electrical/RF characteristics. They also mention using a reverse F antenna for the BT module.

They stated that they added a larger hard drive but the drive doesn't affect the RF characteristics.

(Slightly OT)Can anyone find a FCC filing for the Elite?

 

[cthellis42]

My bet is that what they are doing now is trying to completely get rid of 20GB SKU stock that they have left in inventory. And in a few months a new 20GB SKU will be released in NA/JP- and this time with a software BC solution like the EU PS3. This version will be cheaper to produce and eventually (if not immediately) cheaper for consumers as well.

Now that's a point I hadn't thought of and makes a lot of sense, especially since the lower SKU is the easiest one to interrupt. An early redesign to pull costs down makes sense, and with two SKU's they have one cover any potential interruption in the other while rolling out the new models.

 

[Johnny Awesome]

I seriously doubt they will reach high volumes just by dropping the price to $500.

And why is the marketplace forcing down the price of the high end SKU?
I think the high end SKU can be slightly changed (like a slightly larger HD, that costs Sony maybe $5 extra) and the price can be kept as is.

I can guarantee that demand will be higher for the premium SKU at $500 than it was at $600. It's basic economics.

 

[Johnny Awesome]

The question is will those cost savings go towards breaking even on the hardware or a price cut? With MS dragging its feet on a price drop it wouls seem sony is our best hope for price cuts this fall.

130k units in the US per month isn't going to get Sony anywhere. They need to do something to spur demand.

 

[AntShaw]

Removing the 20gb seems silly.

The only way it makes sense is if they drop the 60gb down to the $500 SKU and introduce a new 80-120gb at $600 range.

For those thinking Sony is price dropping in the next 6 months, your insane.

Sony knew full well going in what they were doing when they were selling a console at a $500 & $600 price points. Their ego and assumption they would sell 6 million by March with no games, is proving to be not such a wise decision.

With the the costs of the makings of the PS3 so high, the only thing they could do at this point, is resort to what XBOX had to do last gen, and thats lose money hand over fist on every console sold. If they are forced to get in a pricing battle with MS, it could get a little ugly.

If they are only going to be selling machines at nothing less then a $600 price point. Whoa.

 

[Arun]

For those thinking Sony is price dropping in the next 6 months, your insane.
[...]
If they are only going to be selling machines at nothing less then a $600 price point. Whoa.

???
I think a lot of people would be ready to eat their hat if Sony didn't reduce the PS3's price at all between today and December. Or is your point that they'd reduce *in* 6 months, rather than before then? It's possible that they'd try to delay it, yeah, but then again they've got fabs to keep running and they can't ust stockpile 90nm parts ad infinitum...

 

[NERO]

???
I think a lot of people would be ready to eat their hat if Sony didn't reduce the PS3's price at all between today and December. Or is your point that they'd reduce *in* 6 months, rather than before then? It's possible that they'd try to delay it, yeah, but then again they've got fabs to keep running and they can't ust stockpile 90nm parts ad infinitum...

I am prepping my hat with balsamic vinegar and mustard in order to eat it if Sony does price cut this year. Just by looking at past history one can see that it is highly unlikely that a console price cut occurs in the first year of the console's existence.

----
Arun Demeure. Are you wearing a scarf as you post and are you typing with gloves on?

 

[Subtlesnake]

Is this also happening in Japan?

 

[quest55720]

I am prepping my hat with balsamic vinegar and mustard in order to eat it if Sony does price cut this year. Just by looking at past history one can see that it is highly unlikely that a console price cut occurs in the first year of the console's existence.

----
Arun Demeure. Are you wearing a scarf as you post and are you typing with gloves on?

I agree they probably will not drop the price on their own. If MS would finally do the right thing and price cut sony would have to follow. It is to bad MS is being stupid and not price cutting on the other hand looks like sony can not afford financially to price cut unless forced. IMO the longer with out a price cut the longer it is till HD gaming really takes off. MS might have have a super line up this fall but the casuals will ignore it at 399 dollars.

 

[NERO]

I agree they probably will not drop the price on their own. If MS would finally do the right thing and price cut sony would have to follow. It is to bad MS is being stupid and not price cutting on the other hand looks like sony can not afford financially to price cut unless forced. IMO the longer with out a price cut the longer it is till HD gaming really takes off. MS might have have a super line up this fall but the casuals will ignore it at 399 dollars.

I'm pretty sure MS will lower the price of there skus and make some wicked cash with Halo 3 bundles but this business of the new black sku is throwing me off. I guess they are just future proofing but....eh I don't know.

Is this also happening in Japan?

OT: Subtlesnake,

I am only going off what has been written and it seems to imply that Sony is discontinuing 20GB sku<period>. A lower sku could be brought back but from what I've read it hasn't been mentioned.

 

[TheChefO]

So they lose $90 more (supposedly) on the 20GB than the 60 GB, and you're recommendation is to lose the 20 GB model and sell the 60 GB at $500, to lose even more money. If the SKU price were the issue, wouldn't it be more sensible to drop the 60 GB version? Release a lot of custom peripherals to improve PS3 20 GB abilities (card reader + wifi, official PS versions with markup). Why not also add an HDD less PS3 where people add their own, to get the entry price even lower?

For the record, the 60 GB version outsells the 20 GB version, so not being able to sell a $600 machine seems misconception. They're having more trouble selling the cheaper model!

Not a good indicator, since the 20Gig has not really been available since the NA launch. Most sources have been saying that retailers stopped ordering them months ago. this actually is the 3rd story I've seen like this in the past 3 months. (the other 2 were on NeoGaf where this is common knowledge)

In every situation I've seen ps3's available, it has been the 60gb model. To say the 20gb is not in demand is to assume it is widely available which is hardly the case. Fact is, Sony has been manufacturing more 60gb models to offset their costs and force would be ps3 owners into the more expensive model. Similar to the xbox launch. Difference is, users can install their own larger HDD in the cheaper ps3 model. Xbox buyers do not have this choice so the value of the more expensive model is more immediate for hardcore gamers (HDTV cables, Wireless, HDD vs a larger HDD and a media reader (which can be purchased 4th party for ps3)).

Interesting move if true.

 

[Shifty Geezer]

In every situation I've seen ps3's available, it has been the 60gb model. To say the 20gb is not in demand is to assume it is widely available which is hardly the case.

I never said there wasn't demand for the 20 GB version. Only that it's less than 60 GB - that Sony aren't unable to sell a $600 console as Jonny Awesome says. If the market were that price sensitive, why aren't all those people buyng 60 GB machines waiting to get 20 GB machines instead? If the 60 GBs sat on the shelves as the 20 GB were lapped up, Jonny would have a point. If it's a $500 price point that's needed, Sony would manage better at that by selling a majority of 20 GB units rather than scrap the 20 GB and sell the 60 GB unit at $500 and lose even more money per unit.

 

[AntShaw]

???
I think a lot of people would be ready to eat their hat if Sony didn't reduce the PS3's price at all between today and December. Or is your point that they'd reduce *in* 6 months, rather than before then? It's possible that they'd try to delay it, yeah, but then again they've got fabs to keep running and they can't ust stockpile 90nm parts ad infinitum...

As it stands right now, I cant really see how Sony can reduce their price to anything less then $500. Even if they do away with the 20gb version. I don't see a price drop happening until march of 2008.

The ONLY way I could see this changing is if we see the 360 drop to $199-$249 for the core, and $299-$349 for the premium. That would be the ultimate pressure move by MS and it would put Sony as sitting ducks. Literally.

If MS continues to hold tight with their current pricing strategy, Sony doesn't make any moves either. I can see them 'staying the course' until they are behind the 8-ball and have to make a move. Which they aren't there yet, but that time could be getting closer and closer.

 

[Shifty Geezer]

As it stands right now, I cant really see how Sony can reduce their price to anything less then $500. Even if they do away with the 20gb version.

20 GB version with 65nm Cell and RSX, and cost reduced BRD drive, for $450, isn't inconceivable.

 

[Deusp]

I am prepping my hat with balsamic vinegar and mustard in order to eat it if Sony does price cut this year. Just by looking at past history one can see that it is highly unlikely that a console price cut occurs in the first year of the console's existence.

Sony did it with the PS1. It went from $299 to $199 within it's first year in the US.

And you only have 3 examples anyways. That's not a whole lot of precedent either way.

 

[NERO]

Sony did it with the PS1. It went from $299 to $199 within it's first year in the US.

And you only have 3 examples anyways. That's not a whole lot of precedent either way.

Ok. I know its kind-of cheating but Sony was selling it in Japan for 1.5 years before this price cut. This is before the Playstation brand was established. I simply can't think of any other instances of price cuts in the first year of a console's life.

 

[AntShaw]

20 GB version with 65nm Cell and RSX, and cost reduced BRD drive, for $450, isn't inconceivable.

It sure isn't.

With that said, i'm still predicting 2008 before we see a price drop!

 

[Deusp]

Ok. I know its kind-of cheating but Sony was selling it in Japan for 1.5 years before this price cut. This is before the Playstation brand was established. I simply can't think of any other instances of price cuts in the first year of a console's life.

Xbox1 went from $299 to $199 after only 8 month. Gamecube went from $199 to $149 after about 10 months. In Europe these pricecuts coming even faster, with Xbox cutting their price after a couple of months or so. So pricecuts within the first year are not unprecedented.