PS3 in the US press...

[Sankari]

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?

*raises hand*

Got my SNES at European launch day. Got my PS2 at European Launch day. I forgot when I got my PS1. Definately not launch though.

I agree that the price point isn't very effective argument. Its the software that counts, otherwise Gamecube would have been the winner last gen.

 

[scooby_dooby]

I agree that the price point isn't very effective argument. Its the software that counts, otherwise Gamecube would have been the winner last gen.

It's both.

 

[London Geezer]

It's a combination of how good the product is, how good the promotion is, how extensive the distribution is, and also the price. It's 4 things that need to be balanced. One element on its own means nothing.

 

[Mintmaster]

l-b, of course it's all those factors, but what scooby's saying is that even with the best software, the best hardware (Sony DVD playback!), the best brand recognition, and no competition from MS or Nintendo until March 2002, Sony still cut their price to GB£199.99 only 10 months after the UK launch.

The only reason they would do that is if they knew price dramatically affected their sales. If a monopoly didn't let Sony have their way last time, why would it be easier for them in the face of heavy competition this time? Does the UK really have that much more disposable income now? From the point of view of value, do you honestly think Bluray is as desirable now as DVD was in 2001?

scooby has a very solid point. The price will have to drop quickly for Sony to do well in UK/EU.

 

[pipo]

scooby has a very solid point. The price will have to drop quickly for Sony to do well in UK/EU.

Like, before launch quickly?

 

[London Geezer]

l-b, of course it's all those factors, but what scooby's saying is that even with the best software, the best hardware (Sony DVD playback!), the best brand recognition, and no competition from MS or Nintendo until March 2002, Sony still cut their price to GB£199.99 only 10 months after the UK launch.
.

Ok, am i the only one to see the connection between the "early" PS2 price cut and the imminent release of Xbox and GC?
That's hardly "no reason"! Sony cut the price because two big competitors were finally entering the market a month or two down the line.

The only reason they would do that is if they knew price dramatically affected their sales.

Not necessarily, as i've explained. Competition can influence that, and in PS2's case, MS and N were launching their new products in November (or was it October) 2001, so of course Sony lowered the price!

If a monopoly didn't let Sony have their way last time, why would it be easier for them in the face of heavy competition this time?

Hey i didn't say that, i just clarified that there was a reason why PS2 got a price cut when it did.

Does the UK really have that much more disposable income now?

*looks at bank account* Err... no.

From the point of view of value, do you honestly think Bluray is as desirable now as DVD was in 2001?

As i said, value is personal. But if you want my personal opinion, no the Bluray playback has no value to me at the moment. In March, maybe, but to be honest i haven't bought a CD or DVD for bloody years and i don't think i will start again just because of Bluray.

scooby has a very solid point. The price will have to drop quickly for Sony to do well in UK/EU

I know! I was the first one to say that Sony will probably drop the price very soon after launch, like MS did with the Xbox. MS lowered the price of the Xbox specifically because it was just too expensive (like PS3). Sony lowered the PS2 price because of new competition entering the market (like a possible X360 price drop when PS3 comes out here). Bit different.

 

[dantruon]

in economic, you only reduce price when supply > demand, however in the ps3 case, demand>>>>>>>>>>supply, so no price drop in a while.

 

[London Geezer]

in economic, you only reduce price when supply > demand, however in the ps3 case, demand>>>>>>>>>>supply, so no price drop in a while.

Of course, but supply will get better and IF Sony sees that PS3 is not selling as well as it should, they will consider dropping the price.

We're talking "possibilities" here of course. We have to wait and see how things go, if the market can sustain the high price of PS3, if demand will stay that high after supply is not limited anymore and lots of other things.

 

[Sankari]

It's both.

DUH. I was just pointing out which matters more. Atleast for me.

 

[Corwin_B]

Ok, am i the only one to see the connection between the "early" PS2 price cut and the imminent release of Xbox and GC?
That's hardly "no reason"! Sony cut the price because two big competitors were finally entering the market a month or two down the line.

Not necessarily, as i've explained. Competition can influence that, and in PS2's case, MS and N were launching their new products in November (or was it October) 2001, so of course Sony lowered the price!

In Europe, XBox and NGC were released in March 2002, and 6 months is a long time in consoles cycles... It's not "imminent" in any case. I don't think there were many people putting off the purchase of a PS2 due to a future Nintendo release or to the XBox release (an unproven competitor that most people thought would fail). And if there was a lot of demand at the GBP299 pricepoint, I can't see Sony missing the extra income of an holiday season.

Regarding dropping the PS3 price quickly, are Sony in a position to do so ? If you drop the price too early, you run into the risk of angrying early adopters (unless you make up with some kind of deal, like MS did after the first EU XBox price drop), and the tie ratio you need to break even for each console sold at that pricepoint increases.

 

[scooby_dooby]

Ok, am i the only one to see the connection between the "early" PS2 price cut and the imminent release of Xbox and GC?
That's hardly "no reason"! Sony cut the price because two big competitors were finally entering the market a month or two down the line.

Honestly I think you're looking for connections that aren't there, instead of the obvious answer that PS2 was simply too expensive at $299 and demand was drying up.

XBOX didn't launch until April 2002, so that certainly does not explain a PS2 pricedrop in September 2001, couple months...actually more like 7 months.

Gamecube as well, did not launch until May 2002, doesn't explain a pricedrop 6months earlier, right at the beginning of an uncontested holiday season.

You're definately looking for connections that aren't there, it's obvious that demand dried up at the $299 pricepoint and Sony reacted accordingly.

 

[Kryton]

Honestly I think you're looking for connections that aren't there, instead of the obvious answer that PS2 was simply too expensive at $299 and demand was drying up.

XBOX didn't launch until April 2002, so that certainly does not explain a PS2 pricedrop in September 2001, couple months...actually more like 7 months.

Gamecube as well, did not launch until May 2002, doesn't explain a pricedrop 6months earlier, right at the beginning of an uncontested holiday season.

You're definately looking for connections that aren't there, it's obvious that demand dried up at the $299 pricepoint and Sony reacted accordingly.

Do you have figures showing this tail-off then sudden resurgance in buying?

 

[zed]

Honestly I think you're looking for connections that aren't there, instead of the obvious answer that PS2 was simply too expensive at $299 and demand was drying up.

XBOX didn't launch until April 2002, so that certainly does not explain a PS2 pricedrop in September 2001, couple months...actually more like 7 months.

ps2 prices
North America
* US$ 299.99 (October 26, 2000, release date) (CAD$449.99)
* US$199.99 (May 14, 2002) (CAD$299.99)

 

[scooby_dooby]

ps2 prices
North America
* US$ 299.99 (October 26, 2000, release date) (CAD$449.99)
* US$199.99 (May 14, 2002) (CAD$299.99)

We're talking about Europe...

 

[scooby_dooby]

Do you have figures showing this tail-off then sudden resurgance in buying?

No, but do you really need them? Sony wouldn't drop price by 33% just for the hell of it, and there was no competition (impending or otherwise) at the time.

 

[London Geezer]

Honestly I think you're looking for connections that aren't there, instead of the obvious answer that PS2 was simply too expensive at $299 and demand was drying up.

XBOX didn't launch until April 2002, so that certainly does not explain a PS2 pricedrop in September 2001, couple months...actually more like 7 months.

Gamecube as well, did not launch until May 2002, doesn't explain a pricedrop 6months earlier, right at the beginning of an uncontested holiday season.

You're definately looking for connections that aren't there, it's obvious that demand dried up at the $299 pricepoint and Sony reacted accordingly.

Scoobs, i'm really not "looking for connections" for the sake of it. I just seemed to remember that the Xbox and GC were launched in Nov 01, i saw the PS2 price drop a month or two before and i thought i'd post about it.
If i was wrong, then i stand corrected. I think i've made it clear that with this marketing discussions i'm 100% neutral. :smile:

 

[Mintmaster]

No, but do you really need them? Sony wouldn't drop price by 33% just for the hell of it, and there was no competition (impending or otherwise) at the time.

Well, it doesn't necessarily mean demand was drying up. Maybe Sony just realized that the market for a GB£299.99 console is much smaller than that for a GB£199.99 console.

Either way, your point stands. As soon as the initial demand for a £425 console dries up, they'll have to reduce the price. It'll probably happen by holiday 2007.

Anyway, we are way off topic. I think we should separate all this pricing talk into another thread, because it's useful discussion IMO.

 

[ManuVlad3.0]

PC World review:

So there you have it: the PlayStation 3 in a rather large nutshell. It truly is technologically superior to both the Xbox 360 and the Wii (which isn't really a direct competitor). But to succeed, Sony and its third-party partners must tap into their traditional strength of delivering compelling games for the console. The PS3 looks like an expensive box at first, but seems less so when you compare its cost to the cost of a stand-alone Blu-ray player, a high-end PC graphics card, the Xbox 360 with its HD-DVD add-on, or even a Media Center PC.

 

[StefanS]

Look guys, the whole X vs Y debate is a) rather dull b) discussed to death and finally c) does belong on the Beyond3d fora.