Console pricing thread

[makattack]

Just got an email from Sony showing they are running a cross-promotion with Amazon whereby you can purchase an 80GB PS3 for up to $250.00 USD off the retail price.

It requires purchasing either a game (with a $50 rebate) or a game + 2 movies (for a $100 rebate) using a new Sony credit card ($150 off first purchase):

http://www.amazon.com/gp/feature.html?ie=UTF8&plgroup=2&docId=1000299421

 

[Crossbar]

Just got an email from Sony showing they are running a cross-promotion with Amazon whereby you can purchase an 80GB PS3 for up to $250.00 USD off the retail price.

It requires purchasing either a game (with a $50 rebate) or a game + 2 movies (for a $100 rebate) using a new Sony credit card ($150 off first purchase):

http://www.amazon.com/gp/feature.html?ie=UTF8&plgroup=2&docId=1000299421

I guess we will see a lot of these value bundles as we are getting closer to christmas. I can´t believe that Sony is going through another holiday season at the same price point as last year. Here in Sweden the price has actually gone up recently because of the strong yen.

I see that Sony is touting the PS3s value. There is only one reason to why Sony is going this route, as I see it, and it´s because of blu-ray. It will be the first holiday season since blu-ray won the HD-format race. A lot of people didn´t jump in last christmas because of the uncertainty of which format would prevail. Now the uncertainy is gone I expect a lot of the people who bought new TVs for the olympics along with others to jump in. A few of those will probably opt for the PS3 as it still has a reputation of a good silent blu-ray player.

 

[Arwin]

They claim they won't be able to make more PS3s quickly enough to satisfy more demand than they project right now, and therefore think a price drop is not prudent right now. I'm not saying that's right, or good, or whatever, just that that's the closest thing to an official reason I've heard from Sony themselves.

 

[Crossbar]

They claim they won't be able to make more PS3s quickly enough to satisfy more demand than they project right now, and therefore think a price drop is not prudent right now. I'm not saying that's right, or good, or whatever, just that that's the closest thing to an official reason I've heard from Sony themselves.

I think the lack of production capacity is not the major issue. I think Sony is relying on the appeal of blu-ray to cut down on the subsidies of the hardware, because obviously the cost of hardware has come down since last fall. I think they are using that money on software: their own as well as third parties. Here´s Ray Maquire take on the question of price.

If you take the price of hardware down it's less money that people spend developing great software, and at the end of it our biggest focus is that we do create the LittleBigPlanets, the Motorstorms, the Resistances, the Killzones and the SingStar Abbas that just give people a great entertainment experience.

I think it´s possible Sony has also offered discounts on their royalties for third party publishers to get more developers aboard. The reason I believe that is that both Activision and EA have shown quarter reports where they´ve earned more from PS3 software than 360 software, which makes me wonder how that could be since the 360 versions usually tops the charts for multiplat titles due to its larger installed base.

The PS3 installed base may possible grow beyond 20 million units over the holiday season after that Sony may change their policies for subsidies of hardware since the base for game royalties will have reached much healthier levels.

However, I don´t expect any really big changes in price before the 45 nm Cell SKUs hit the market, because it´s main goal was to bring termal dissipation down, not just bring the price of Cell down and that will let them save money on redesigned PSU, heat sink, fans etc.

 

[rounin]

I believe Sony will have a price drop at Killzone 2's release. This will coincide with post Christmas 2008 and seems to be an idea time for this to happen. Right when sales start to falter due to ex-Christmas syndrome and after all the great releases of 2008.

 

[eastmen]

think it´s possible Sony has also offered discounts on their royalties for third party publishers to get more developers aboard. The reason I believe that is that both Activision and EA have shown quarter reports where they´ve earned more from PS3 software than 360 software, which makes me wonder how that could be since the 360 versions usually tops the charts for multiplat titles due to its larger installed base.

Sometimes its releases . Some times sony has more games out , Like haze was an eclusive that wasn't on the 360 and thus helped sony's numbers with that company.

believe Sony will have a price drop at Killzone 2's release. This will coincide with post Christmas 2008 and seems to be an idea time for this to happen. Right when sales start to falter due to ex-Christmas syndrome and after all the great releases of 2008.

I agree they will drop the price then. Most likely to $300 esp is ms outsells them by a large margin. That is the biggest game i can think of exclusive for the ps3 for a good while after that.

 

[obonicus]

Sometimes its releases . Some times sony has more games out , Like haze was an eclusive that wasn't on the 360 and thus helped sony's numbers with that company.

Haze didn't sell that well. On the other hand, I'm trying to think of 360/PS3 games released by Ubi in third quarter. R6V2?

And lower royalties actually might be plausible, though with their whole business model built on them it'd be a pretty desperate move. It might further explain their hard-line stance when it comes to price-cuts, though. If they're not making as much money per title, they'd naturally be reluctant lose profitability anywhere else.

I agree they will drop the price then. Most likely to $300 esp is ms outsells them by a large margin. That is the biggest game i can think of exclusive for the ps3 for a good while after that.

Sony has upcoming games, that if they're not slated for late 2009 could be manufactured into a massive game, ala Assassin's Creed and used to keep interest in the console up. That's a lot to ask, MS hasn't succeeded at it either, even if Nintendo has.

Sony's attempts at media this generation haven't been the best, though, and maybe going completely all-out Halo 3-style may be beyond their budget.

 

[eastmen]

Haze sold though its a few hundred thousand and i'm sure its more since it released.


As for sonys upcomnig games . they have killzone 2 in what febuary / march ? Whats after that which is any where near as big ? 360 doesn't have to much either from what I can see except halo wars in febuary and i'm sure thier biggest title is the new halo 3 game in nov .

 

[DrJay24]

God of War 3 is 2009, Infamous is April/May I think

Edit: I just read that Uncharted 2 is due next year, but I'd expect a Fall release. Another Ratchet and Clank is also hinted at for 09 at the end of Q4B.

 

[obonicus]

As for sonys upcomnig games . they have killzone 2 in what febuary / march ? Whats after that which is any where near as big ? 360 doesn't have to much either from what I can see except halo wars in febuary and i'm sure thier biggest title is the new halo 3 game in nov .

Well, yeah, but the 'size' of a game depends heavily on what sort of hype is generated. And these days, with how the press stands, they certainly can manufacture hype. If Sony tells the press that, say, KZ2 is entirely unforgettable enough times, they'll believe it, and from there, users will believe it too, as long as the game isn't completely terrible. As for what games, DrJay covers it. It's a matter of spacing them out appropriately, avoiding delays and keeping interest up.

I think it's entirely possible, but I suspect it's beyond Sony's ability, and maybe budget.

 

[djskribbles]

God of War 3 is 2009, Infamous is April/May I think

Edit: I just read that Uncharted 2 is due next year, but I'd expect a Fall release. Another Ratchet and Clank is also hinted at for 09 at the end of Q4B.

They hinted GT5 would be released in 2009... that's probably Sony's biggest exclusive now (or maybe FFXIII vs if that remains an exclusive). FFXIII, although not an exclusive anymore, will help the PS3 more than the 360 IMHO (if it gets released in Japan). edit: I meant in Japan.

 

[Zassk]

The 360 has several known exclusives for 2009, but not all qualify as "big". Star Ocean 4, Splinter Cell, Dungeon Hero, Warhound... unconfirmed reports of Mass Effect 2 and Forza 3... we're just as well (or poorly) informed as a year ago. It seems to be MS's plan to have a quiet Q1 every year, and then reveal the year's game lineup around E3.

 

[obonicus]

The 360 has several known exclusives for 2009, but not all qualify as "big". Star Ocean 4, Splinter Cell, Dungeon Hero, Warhound... unconfirmed reports of Mass Effect 2 and Forza 3... we're just as well (or poorly) informed as a year ago. It seems to be MS's plan to have a quiet Q1 every year, and then reveal the year's game lineup around E3.

Third-party conquests was E3, internal games was GDC (though casuals was E3 too). GDC's where Ninja Gaiden 2 and GeoW2 were announced.

 

[eastmen]

God of War 3 is 2009, Infamous is April/May I think

Edit: I just read that Uncharted 2 is due next year, but I'd expect a Fall release. Another Ratchet and Clank is also hinted at for 09 at the end of Q4B.

Have we seen any of these outside of cgi ?

 

[dobwal]

They claim they won't be able to make more PS3s quickly enough to satisfy more demand than they project right now, and therefore think a price drop is not prudent right now. I'm not saying that's right, or good, or whatever, just that that's the closest thing to an official reason I've heard from Sony themselves.

Really poor excuse. Sony's production level of the PS3 and its current price is where Sony thinks it is the least costly while maintaining market presence.

A $400 price tag doesn't warrant a higher production level and a lower price with increase production needed due to demand probably produces a level of cost that makes Sony uncomfortable.

 

[obonicus]

Have we seen any of these outside of cgi ?

Well, there's little reason to doubt R&C or Uncharted, for which I don't think there's even been CG. I don't know if Uncharted 2 has even been announced. But why does that matter?

Microsoft has two games announced for 2009, both Halo, and we haven't seen anything of the FPS Halo game apart from CG. That doesn't mean all Microsoft is gonna bring in 2009 is 2 Halo games. We know there's more games.

 

[wco81]

Best Buy warned this week that they were seeing unprecedented falloff in traffic/sales.

So either price cuts are needed or maybe things are so bad that consoles aren't going to move at any price.

There's also a rumor of a Wii bundle on Black Friday which would include a couple of games and extra controller for like $220 instead of $400.

 

[eastmen]

Well, there's little reason to doubt R&C or Uncharted, for which I don't think there's even been CG. I don't know if Uncharted 2 has even been announced. But why does that matter?

Microsoft has two games announced for 2009, both Halo, and we haven't seen anything of the FPS Halo game apart from CG. That doesn't mean all Microsoft is gonna bring in 2009 is 2 Halo games. We know there's more games.

Yes but microsoft announced gears of war 2 just months before it launched and have dne so with other games. Its sony that announces things that are years away.

 

[DrJay24]

There's also a rumor of a Wii bundle on Black Friday which would include a couple of games and extra controller for like $220 instead of $400.

It was a typo, $420.

 

[obonicus]

Yes but microsoft announced gears of war 2 just months before it launched and have dne so with other games. Its sony that announces things that are years away.

Gears was announced in the end of March, during GDC. It's true that Sony announces things pretty far away, but half a year isn't 'just months'. I don't even know when Fable 2 was announced, though, but it wasn't this year, and maybe not even last year. Alan Wake also has been teasing us for what, 2 years?