Playstation 3: Hardware Info and Price

[expletive]

I dont understand these arguments that are based around the idea of value and disregard price.

An Acura NSX is a great 'value' compared to a Lamborghini, yet the Honda Civic sells thousands upon thousands more, anyone want to guess why?

 

[RobertR1]

If MS drop the price on the premium package by $100 and Sony cannot respond then they'll have an uphill battle convincing consumers that it's something more than a gaming system. For a gaming console with a lot of cross platform games, paying twice as much will have a lot of people thinking twice. Even now the $200 difference between the 2 packages is getting people to think twice. Having your customers even thinking once is undesireable.

Look at the talk around the net of the PS3. Majority of the userbase just want to talk about the games because in the end, it's a gaming console with features. They will need do a LOT of marketing to change that perception that it's an entertainment hub that can ALSO play games.

Will they be able to do this during the lifecycle of this console? probably, yeah. How long it takes is the key.

 

[aldo]

IGN - As for the quick adoption rate, [Koei's Kenji] Matsuhara said, "This will be based on the response by the market." Impress asked if he feels the PS3 price to be too high, to which he responded in the negative, stating that the price is to be expected at the start of the system's life. He did express the desire for DVR-style recording functions, though.

If the $599 PS3 turns out to be a Blu-Ray playin', DVR recordin', high end game playin' machine, I think this will be a good deal. If it can also replace my George Foreman grill it will be a great deal.

Having it all in one fairly compact transportable package instead of a base unit, a power brick and a separate Blu-Ray drive is also a big plus. (I can live with a separate unit for the grill)

-aldo

 

[sir doris]

Is that directed to me?

no it wasn't, it was at other posts which had made the 3DO/CDI failed therefore the PS3 is doomed conclusions

 

[aldo]

The matter isnt if Sony competes MS directly or not. The real issue here is if the consumer understands what things justify the price of the PS3. But it seems they dont.

If they do understand what they get from the PS3 as a whole product it will compete the 360 easily.

But Sony would have reduced the price if they could. They d do anything to be more competitive.

I don't think it's even fully a matter of competing initially. The real question is does anybody really think that there will be PS3s on the shelf after the first 2 million are released internationally in November? After 2 million in December? After 2 million in...

At some point the shelves will start to stock, then Sony will have to consider price adjustments to compete. Obviously, they risk losing a few buyers who are unwilling to wait around to see if there are price reductions and opt for the cheaper available consoles.

-aldo

 

[Shifty Geezer]

no it wasn't, it was at other posts which had made the 3DO/CDI failed therefore the PS3 is doomed conclusions

Actually no post made that conclusion. I endeavoured to be clear in my post that from the stats, the only available information that could be derived was similarities between sales and success. I said

taken in isolation

and

Of course, that's not at all a fair consideration or scientific evaluation

I didn't bother to cover the exceptions to these observations because I understood them to be obvious to the intelligent peeps at B3D. My point was only to see what information there was in those stats, taken in isolation (which is how stats are generally used, for better or worse). That is, you can't look at those graphs and see info about how PS3 is different to 3DO or provides a higher quality product than CD-i as there's no such info contained.

I guess I ought to have been more comprehensive and provided all the arguments for and against all such observations, but that's best left to the experts like Acert

 

[Bobbler]

I don't think it's even fully a matter of competing initially. The real question is does anybody really think that there will be PS3s on the shelf after the first 2 million are released internationally in November? After 2 million in December? After 2 million in...

At some point the shelves will start to stock, then Sony will have to consider price adjustments to compete. Obviously, they risk losing a few buyers who are unwilling to wait around to see if there are price reductions and opt for the cheaper available consoles.

-aldo

After 2 million won't be an issue, it'll be after 6+ million that will dictate what happens (first 6 or so months). 2 million should be doable over those couple weeks around launch, easy. 4 more million over the next several months should be quite doable, but around April/May of 07 or so is when things will get interesting (I wouldn't be surprised, assuming all things stay the same and they do ship with these prices, to see a price drop at E3 07).

The pricing is really irrelavent early on -- it may be a shocker to many (it surprised me!), but it's the price after a couple years that matters (08-09 prices) in the grand scheme of things.

I continually see overreactions all over the place (GAF is notably hilarious currently!), but when talking about a product like this, I can't get myself too concerned -- as long as they handle price drops correctly (when sales slow down -- duh), I don't think there is much to fear for PS3.

It'll be an interesting generation coming up, whatever happens.

 

[mckmas8808]

Yeah seriously Sony will need to lower the cost of the system by $100 across the board by holiday 2007. They will not be able to compete with a $199 360 core and a $299 Premium and a $250 Wii.

Those prices are just too damn low to compete against. The PSP and DS price difference is one thing, but the difference between a $299 Premium 360 and a $499 PS3 is just too large. The casuals will just laugh at Sony.

 

[Acert93]

I guess I ought to have been more comprehensive and provided all the arguments for and against all such observations, but that's best left to the experts like Acert

Maybe I should have put a disclaimer? It was late, but the chart was interesting and worth posting. It is just a chart, not a prediction. It would have been interesting to get sales numbers for each of the consoles, even better yet sales at set price points. Now that would be interesting, if not completely relevant. Just really interesting because it would show how demand and price relate (of course killer apps, library size, marketing, other consoles on the market, and the economy all impact this stuff as well).

Personally I don't think the 3DO or Neo Geo have any direct relevance.

- Neither were the market leader for 1 generation before, let alone 2. Sony has.
- Neither had robust software support. Sony currently has a ton of software support, probably the most right now (if not, close to it).
- Neither had a large library of "killer app" franchises consumers were anticipating. MGS, FF, DMC, and the list goes on forever.
- Neither had a strong brand synonmous with gaming. We used to play Nintendo, now we play Playstation.
- Neither had backwards compatibility. The PS3 supports thousands of games.
- Neither had a robust OS, HDD, or HD media format supported by a host of industry partners and exclusive movies to justify their high costs. Sony has Linux, HDD standard, and Blu Ray which will have a lot of exclusive content like Spiderman.

The price is high, we all know that. But they could sell 6M at even higher price. The question is when will they get a price drop, how is the software coming along, and how well will Blu Ray content will do in the market. But there is too much in Sony's favor for them not to sell 10's of millions of PS3s.

 

[Fox5]

After 2 million won't be an issue, it'll be after 6+ million that will dictate what happens (first 6 or so months). 2 million should be doable over those couple weeks around launch, easy. 4 more million over the next several months should be quite doable, but around April/May of 07 or so is when things will get interesting (I wouldn't be surprised, assuming all things stay the same and they do ship with these prices, to see a price drop at E3 07).

The pricing is really irrelavent early on -- it may be a shocker to many (it surprised me!), but it's the price after a couple years that matters (08-09 prices) in the grand scheme of things.

I continually see overreactions all over the place (GAF is notably hilarious currently!), but when talking about a product like this, I can't get myself too concerned -- as long as they handle price drops correctly (when sales slow down -- duh), I don't think there is much to fear for PS3.

It'll be an interesting generation coming up, whatever happens.

I know a few people that have switched from PS3 to Wii just based on pricing, they figure the Ps3 will almost never be within a reasonable price range for them, whereas Wii is right off the bat. 360 is not given any consideration because it doesn't offer the same type of games.

Anyhow, the high prices will hurt Sony's sales, but it remains to be seen how much, Sony may be strong enough to survive it. They may even find they maximize profit at these prices, even with less sales.

 

[mckmas8808]

Anyhow, the high prices will hurt Sony's sales, but it remains to be seen how much, Sony may be strong enough to survive it. They may even find they maximize profit at these prices, even with less sales.

Yep. See the good thing for Sony is they will make an extra 1 billion dollars after the first 10 million PS3 are sold (being that they are about $100 higher core and Premium than what people expected it to be).

To me after the first 10 or so million and extra 1 billion dollars hopefully Sony will have a heart and take $100 off each PS3 device.

 

[DuckThor Evil]

I'm not sure if this is already posted, but it seems that UK is only getting the 60GB-version, maybe it's the same for rest of the Europe too?

http://www.mcvuk.com/newsitem.php?id=1036

 

[Acert93]

Yep. See the good thing for Sony is they will make an extra 1 billion dollars after the first 10 million PS3 are sold (being that they are about $100 higher core and Premium than what people expected it to be).

To me after the first 10 or so million and extra 1 billion dollars hopefully Sony will have a heart and take $100 off each PS3 device.

Is that make an extra 1B, or lose 1B less? As far as I knew they were expecting like 900M in loses the first year. Losing $900M and instead of losing $1,900M is different than making $1B!

 

[mckmas8808]

Is that make an extra 1B, or lose 1B less? As far as I knew they were expecting like 900M in loses the first year. Losing $900M and instead of losing $1,900M is different than making $1B!

Well yeah if you want to put it like that. I can't argue with Sony honestly with putting the price so high. I mean they are kinda right (as bad as this may sound) about it being kinda cheap. I mean really Blu-ray players won't even be $500, yet a whole PS3 will be with all of that extra stuff to boot.

But I would still like for Sony to lower the price next holiday season. People in 2008 aren't going to want to still be paying $500 for the base console.

 

[Acert93]

I'm not sure if this is already posted, but it seems that UK is only getting the 60GB-version, maybe it's the same for rest of the Europe too?

http://www.mcvuk.com/newsitem.php?id=1036

Not a bad strategy IMO. The 20GB-PS3 I felt was just a toke way of saying they had the PS3 at $499.

And it is looking like the PS3 will be GBP 425. Based on a site I just googled and converted, that is $803.82 USD.

EDIT: Using the Xbox 360 as a baseline we see the $399USD 360 going for 279GBP ($527), a 32% markup. (I have no clue if that includes tax in the UK, I know it does not in the US, which would typically add $15-30). So the GBP425/800USD PS3 price in the UK is pretty much the same sort of markup (30-35% range) MS applied to the 360.

In a perfect world you would think that there would be a flat markup. e.g. If the $299 360 had an extra $100 due to localization, why does the $399 version have $135 localization and the $599 PS3 a $200 localization? Ouch. The 1 USD = 1 EUR situation kind of sucks.

 

[Tap In]

If you want or need Blu Ray movies, then PS3 is not too high a price.

If you don't and you just want a game machine, then at this point in time, yea, it's too much.

There really is no choice though for sony, they can not afford to lose anymore $ than they obviously already are on this system and they can not neuter the stand alone Blu ray market with an even cheaper device/player. So I'm not blaming them for the price.

I think they made a mistake by putting blu Ray in the box but that may prove in the long run to be genius IF, it wins the format war (which means movie sales for Sony) and IF it actually proves to be more useful for games. (of which I'm not yet convinced)

I am of the theory that the main reason the HDD is in the lower system at all is due to low transfer rates (not sure if that's the right phrase) of Blu-Ray compared to 12 x DVD.

If it were able to, I think they would have been smarter to offer a $399 no HDD system.

 

[DUALDISASTER]

I think Sony's been fairly successful in pushing the PSP as a 'gaming and more' device, so beyond the fact that psychologically it might be easier for people to buy into that idea for a mobile device, I do think there's some precedent for people being able to grasp at a console being meant for more than just playing games. It'll be Sony's case to prove, but a guaranteed launch sell-out will put them in a better position to highlight the aspects they want highlighted.

Some people would disagree. Infact, most people on the internet say that the psp method will be it's downfall...just like the psp. Now, I dont think the psp is a failure and i don't know why people are saying that. Anyway, I talked to some customers and co-workers alike and they say for what it's worth, the ps3 is a steal AND they will get one. I think 13-17 year-olds think it's not fair because they don't have the money. The PS3 will be fine just based off the brand. I believe that once people see what types of games are possible, people will understand the price...I mean people buy 300 dollar mp3 players!

 

[mckmas8808]

If it were able to, I think they would have been smarter to offer a $399 no HDD system.

But also Sony has a complete vision of people downloading extra content onto their PS3s (sorta what MS is doing now with the 360, but Sony wants people to also download music, movie clips, etc). Selling a non-HDD PS3 would ruin those plans.

Also I think Sony wanted the devs to be able to code for the PS3 as if the HDD was there too.

 

[valioso]

I believe that once people see what types of games are possible, people will understand the price...

so what types of games are possible that are not possible on 360? Thats what they need to show.. so far I havent seen anything like that

 

[RobertR1]

Not a bad strategy IMO. The 20GB-PS3 I felt was just a toke way of saying they had the PS3 at $499.

And it is looking like the PS3 will be GBP 425. Based on a site I just googled and converted, that is $803.82 USD.

Add 2 games and an extra controller and you've got $1,000+. That's quite a sticker shock for a lot of people.