PS3 in the US press...

[quest55720]

The PS2 is outselling the 360 based on price. I seriously doubt that PS2 would outsell if it both were equally priced at either $129 or $399. A few friends of mine who are well off still belive that the 360 costs too much. They practically laugh at the PS3 price tag. In the end, consumers have a different pricing threshold for "gaming systems" than enthusiasts. Looking back at gaming console histories you can see the trend of sales increases, sharply in some cases, as price drops.

The biggest thing Sony has going for them is not that it's Linux or BR capable. It's simpy the next "PlayStation." Spending money on marketing for Linux would be a waste. The enthusiast niche already knows about it. If anything I'd spend a ton of marketing budget on BluRay. It's really been a pain in the PS3's side and needs to contribute at some point, financially speaking.

Very great points I agree with you a 100%. I still think blue ray and HD-dvd will be hard to get main stream until the price of stand alone units gets sub 200 dollars. I just don't see a lot of people who are able and willing to buy movies 2x. One HD copy and another DVD copy for the other TVs in the house hold. DVD players have gotten so cheap people have them on practically every TV in the house. If the 30 dollar copy of the movie will only play on 1 device in the house I just don't see people jumping in.

I think your linux points are right on it is a niche market with little to no appeal to the mainstream. It would be a waste of money to advertise something the masses could careless about.

 

[patsu]

It's a nearly unanimous conclusion that the PS3 doesn't offer anything that justifies the price tag when compared to the 360.

Technically, the people who bought (or are waiting to buy) PS3 can appreciate its worth/values. They vote with their dollars instead of posting forum articles.

 

[Powderkeg]

Technically, the people who bought (or are waiting to buy) PS3 can appreciate its worth/values. They vote with their dollars instead of posting forum articles.

Technically, those people are what you would consider to be hardcore fans, which hardly make up the majority of PS2 owners. Thus, they will justify the purchase regardless of how good it actually is because they are buying into an idea or belief more than a system. Likewise, in the end their actual contribution to sales will be quite minimal.

Casual gamers don't buy launch systems, are much more influenced by price, and make up the vast majority of sales. They are the ones who buy $120 PS2's 6 years after the system launched. They won't buy a PS3 until it gets into the same price range, which considering the launch price of the PS3, may not be until after the PS4 is launched.

 

[DuckThor Evil]

Technically, those people are what you would consider to be hardcore fans, which hardly make up the majority of PS2 owners. Thus, they will justify the purchase regardless of how good it actually is because they are buying into an idea or belief more than a system. Likewise, in the end their actual contribution to sales will be quite minimal.

Casual gamers don't buy launch systems, are much more influenced by price, and make up the vast majority of sales. They are the ones who buy $120 PS2's 6 years after the system launched. They won't buy a PS3 until it gets into the same price range, which considering the launch price of the PS3, may not be until after the PS4 is launched.

I agree with you on everything else besides the last point. PS3 "core" is already quite cheap in Japan and PS2 was almost as expensive as PS3 in Europe, actually PS3 core costs about the same as PS2 did. I woulnd't make too far out conclusions on the US launch price as there is little reason to doubt that Sony wouldn't adjust their prising according to the market situation, that's why they already lowered the price in Japan and they will surely do the same in other markets too if needed. Naturally MS will have the edge on prising during this whole generation, but still I fully expect Sony to price PS3 according to market demands, which imo means it'll probably reduce in price similar to the way PS2 dropped in Europe.

 

[Ben-Nice]

Casual gamers don't buy launch systems, are much more influenced by price, and make up the vast majority of sales. They are the ones who buy $120 PS2's 6 years after the system launched. They won't buy a PS3 until it gets into the same price range, which considering the launch price of the PS3, may not be until after the PS4 is launched.

Then what do you call the people buying the system years 3-5?

 

[Geo]

Right-o. Love fest above deleted. Move along, move along. . .

 

[Magnum PI]

Casual gamers don't buy launch systems, are much more influenced by price, and make up the vast majority of sales. They are the ones who buy $120 PS2's 6 years after the system launched. They won't buy a PS3 until it gets into the same price range, which considering the launch price of the PS3, may not be until after the PS4 is launched.

Great definition.

Oeuf corse, everyone knows that the casual gamers wait for the time when a console is phasing-out to buy one of them.

In 2005, they were still playing on their psone...

Casual gamers are about 20 % of gamers, no more !

 

[DuckThor Evil]

Great definition.

Oeuf corse, everyone knows that the casual gamers wait for the time when a console is phasing-out to buy one of them.

In 2005, they were still playing on their psone...

Casual gamers are about 20 % of gamers, no more !

Heh I think that conversation was already done, thus Geo pruning the thread as it got a bit ill tempered.

 

[patsu]

Technically, those people are what you would consider to be hardcore fans, which hardly make up the majority of PS2 owners. Thus, they will justify the purchase regardless of how good it actually is because they are buying into an idea or belief more than a system. Likewise, in the end their actual contribution to sales will be quite minimal.

Casual gamers don't buy launch systems, are much more influenced by price, and make up the vast majority of sales. They are the ones who buy $120 PS2's 6 years after the system launched. They won't buy a PS3 until it gets into the same price range, which considering the launch price of the PS3, may not be until after the PS4 is launched.

Yes, they are subjective. Some clearly bought it for Blu-ray because of hi quality playback and exclusive Blu-ray content, some bought it for the hardware (larger hard disk, WiFi, excellent build quality, Blu-ray, Cell, sexy looks, ...), some bought it for the games, yet others bought it for Linux and open platform, many have a combination of the above reasons, some even paid 4-5 times the market rate to own it.

The hardcore and casual buying patterns will be there regardless of whether it's PS3, PS4 or Xbox 720. The point is there are folks who think that PS3 is worth it (A sweeping statement like "unanimously think that PS3 does not offer better value/worth" does not describe the market data/feedback).

 

[scooby_dooby]

PS2 was almost as expensive as PS3 in Europe, actually PS3 core costs about the same as PS2 did. .

And that price was dropped by 33% only 10 months after launching in the UK, so obviously the $299 GBP pricepoint is not sustainable for long, even for Sony.

And what's the expected UK launch price? Around $425 GBP for the top model? That's way more than the PS2 was, which needed to be brought down to $199 less than a year after launch.

 

[London Geezer]

The point is there are folks who think that PS3 is worth it (A sweeping statement like "unanimously think that PS3 does not offer better value/worth" does not describe the market data/feedback).

Of course. Value is personal, and always will be. This is what Sony is trying to work on, they need to convince you that the PS3 is actually good value.
Some will always see it as too expensive, some will see it at good value, and some will see it as "cheap" considering what it has, and depending on what they can afford.
That's where the other elements in their marketing mix (the product itself, the promotion and the distribution) need to balance correctly to make sure that the price is sustainable. It won't be easy, but Sony can always drop the price if they feel it's the only thing that's holding them back.
It's more likely that they will just pump out the promotion, making sure they really milk the whole "With all the things PS3 can do, it's really good value!!" message for all it's worth, while in the meantime releasing good games to make sure there are reasons to buy the thing. Oh and that's without mentioning the distribution issues.

 

[London Geezer]

And that price was dropped by 33% only 10 months after launching in the UK, so obviously the $299 GBP pricepoint is not sustainable for long, even for Sony.

And what's the expected UK launch price? Around $425 GBP for the top model? That's way more than the PS2 was, which needed to be brought down to $199 less than a year after launch.

I don't remember the PS2 dropping to $199 in the first year...?

At least here in the UK it held its price for a bloody long time. If it dropped so much so quickly in the US, then the price drop was probably made up for with the higher euro/uk prices...

 

[Sankari]

I don't remember the PS2 dropping to $199 in the first year...?

At least here in the UK it held its price for a bloody long time. If it dropped so much so quickly in the US, then the price drop was probably made up for with the higher euro/uk prices...

Europe didn't have any price cuts in the first year if I recall correctly, it was by the end of 2nd year if I recall correctly that the first price cut happened. I could remember it wrong but there definately were no price cuts in the first year.

 

[Arwin]

Europe didn't have any price cuts in the first year if I recall correctly, it was by the end of 2nd year if I recall correctly that the first price cut happened. I could remember it wrong but there definately were no price cuts in the first year.

That's not what I remember. In the Netherlands, the first price-cut came after about six months.

 

[patsu]

Of course. Value is personal, and always will be.

Yap, I think we are agreeing.

 

[Magnum PI]

Heh I think that conversation was already done, thus Geo pruning the thread as it got a bit ill tempered.

Unless the powderkeg post is also pruned, I'm allowed to object it.

 

[DuckThor Evil]

I actually think there were price cut before PS2 turned 1 in Europe. It launched in november 2000 for 3000mk~500e and I bought it in august 2001 for 2500mk~420e if I remember correctly.

 

[SugarCoat]

North America

US$ 299.99 (October 26, 2000, release date) (CAD$449.99)
US$199.99 (May 14, 2002) (CAD$299.99)
US$179.99 (May 13, 2003) (CAD$249.99)
US$149.99 (May 11, 2004) (CAD$179.99)
US$129.99 (April 20, 2006) (CAD$129.99)

Japan

JPÂ¥39,800 (March 2000, Launch Price)
JPÂ¥35,000 (June 29, 2001)
JPÂ¥29,800 (November 29, 2001)
JPÂ¥25,000 (2002)
JPÂ¥19,800 (November 13, 2003)
JPÂ¥17,800 (June 2004)
Open price (November 3, 2004, SCPH-70000)
JPÂ¥16,000 (September 15, 2006)

United Kingdom (including VAT, 17.5%)

GB£299.99 (November 24, 2000, Launch Price)
GB£199.99 (September 26, 2001)
GB£169.99 (September 1, 2002)
GB£139.99 (October 1, 2003)
GB£104.99 (August 18, 2004)
GB£94.99 (August 23, 2006)

 

[scooby_dooby]

I don't remember the PS2 dropping to $199 in the first year...?

At least here in the UK it held its price for a bloody long time. If it dropped so much so quickly in the US, then the price drop was probably made up for with the higher euro/uk prices...

No it didn't hold it for very long at all, at leat according to wikipedia:

GB£299.99 (November 24, 2000, Launch Price)
GB£199.99 (September 26, 2001)

If it dropped, the reason could only be due to lowered demand because they had no real competition in the space at the time (other than PS1 I guess)

 

[dobwal]

Using price points as a way to categorize gamers is a very faulty method, don't you think?

Isn't logical to assume that the cheaper a console becomes the more likely it will be purchased as a gift?

Whats the chance of the cheap console be given to someone who will barely use?

Whats the chance of the cheap console being a "my first" console that will be used extensively by the user?

How many of you were introduce to gaming by a console purchased at its original price point?