PS3 Price drop and 40GB SKU confirmed *

[-tkf-]

Now, personally I'm not 100% still in thinking this will happen, but it's a manner now that we can reconcile the dramatic price-drop with some real manufacturing-side drivers.

On the other hand (see, here comes the positve spin, the optimism that never manifested itself... so far ).

Rumble is ready, there is plenty of AAA games ready for XMAS to back up the machine, the price reduction on every crucial component should be done, the warehouses are totally filled up, PSN has content, Eye Play is done, home is nearly there with a open beta, LPB is on schedule for a beta(?), the PS3 is percieved as being a 500-600 dollar console which makes a 2-300 reduction a total steal. And the dirty secret, Blu-Ray needs a 299,- player, If Sony wants to drop the Megaton Nuclear Dirty No Enemies left Bomb in the console war and REALLY make an impact this is it, and november would a perfect time for the most perfect move yet to be seen in any console war.

No more pussy footing around making semi sick pr releases about percieved success and being the fat kid on the block that once could. 399,- would be a "nice" effort just not a big "in ur face" effort, 299,- is a nuclear wake up call, the games has begun, the king is back and he want the queen to return to his chambers...

 

[TheChefO]

Bait & Switch is both illegal and in general a tactic that has backfired more times than can be counted in the history of marketing.

I'm not saying it would literally be a paper launch. Just limited manufacturing.

This would be completely understandable with having a new manufacturer taking the reigns on this sku.

 

[Laa-Yosh]

Fun fact:

£300 = $600

 

[-tkf-]

I'm not saying it would literally be a paper launch. Just limited manufacturing.

This would be completely understandable with having a new manufacturer taking the reigns on this sku.

As far as we know they have millions of consoles waiting to be sold.

 

[AlphaWolf]

On the other hand (see, here comes the positve spin, the optimism that never manifested itself... so far ).

Rumble is ready, there is plenty of AAA games ready for XMAS to back up the machine, the price reduction on every crucial component should be done, the warehouses are totally filled up, PSN has content, Eye Play is done, home is nearly there with a open beta, LPB is on schedule for a beta(?), the PS3 is percieved as being a 500-600 dollar console which makes a 2-300 reduction a total steal. And the dirty secret, Blu-Ray needs a 299,- player, If Sony wants to drop the Megaton Nuclear Dirty No Enemies left Bomb in the console war and REALLY make an impact this is it, and november would a perfect time for the most perfect move yet to be seen in any console war.

No more pussy footing around making semi sick pr releases about percieved success and being the fat kid on the block that once could. 399,- would be a "nice" effort just not a big "in ur face" effort, 299,- is a nuclear wake up call, the games has begun, the king is back and he want the queen to return to his chambers...

Why stop there why not go for $49.95? Oh right, because shareholders would lynch them. You'll note the article is talking about 299 british pounds, not dollars. While increasing install base is great, going billions in debt to do so, is not a great career move.

 

[TheChefO]

...the king is back and he want the queen to return to his chambers...

Ehh.

$400 would be a great start, but they need more and better games available to compete head to head.

The crown is still Nintendo's until someone takes it.

 

[TheChefO]

As far as we know they have millions of consoles waiting to be sold.

Ideally for consumers and devs you're right.

I'm just pointing out a potential method for increased mindshare and desireability without incuring huge losses if their BOM reductions aren't in place yet.

 

[RancidLunchmeat]

$400 would be a great start, but they need more and better games available to compete head to head.

How did you get to $400?

And I agree, I don't see this lineup of AAA games that are available for the system.

In fact, other than Resistance (still), I can't think of a single game that would make me want to purchase a PS3.

Now a great deal of that is due to the fact that the other titles are available on other systems. But that's part of the PS3's entire problem, isn't it?

 

[-tkf-]

Why stop there why not go for $49.95? Oh right, because shareholders would lynch them. You'll note the article is talking about 299 british pounds, not dollars. While increasing install base is great, going billions in debt to do so, is not a great career move.

Cut the BC stuff, forget the Wifi and the card readers, add the cheaper (alot it seems) Blue Laser, the die shrink, the reduced power and cooling and the ram prices may have dropped to. I´m not so sure were talking billions.

 

[-tkf-]

Ehh.

$400 would be a great start, but they need more and better games available to compete head to head.

The crown is still Nintendo's until someone takes it.

They have a good bunch ready for Christmass among them some nice exclusives. Nintendo has games?

 

[scooby_dooby]

How did you get to $400?

And I agree, I don't see this lineup of AAA games that are available for the system.

In fact, other than Resistance (still), I can't think of a single game that would make me want to purchase a PS3.

Now a great deal of that is due to the fact that the other titles are available on other systems. But that's part of the PS3's entire problem, isn't it?

By the end of the year the PS3 will have Resistance, Heavenly Sword, Ratchet & Clank, Haze, UT2007 and Uncharted in it's exclusive stable, as well as the majority of 3rd party support.

That's a solid lineup.

If 360 can move 1.1 million last december at $400, on a lesser library, I see little reason to believe the PS3 can't at least match that at a similar pricepoint.

 

[Joe DeFuria]

If 360 can move 1.1 million last december at $400, on a lesser library, I see little reason to believe the PS3 can't at least match that at a similar pricepoint.

The reason would be competition.

I'm not saying the PS3 won't or can't move that many units, but a valid reason why PS3 might not, is due to competitors offerings.

The landscape that MS was competiting in last December is quite a bit different than what the PS3 will be compete against this year.

 

[djskribbles]

also Ninja Gaiden Sigma, MotorStorm and Warhawk.

 

[Shifty Geezer]

Not to mention LBP beta and EOJ and online SingStar, which may not appeal to some traditional gamers but which have (or are likely to have) some serious clout.

 

[Zaphod]

As far as we know they have millions of consoles waiting to be sold.

2.3 million, up from 1.9 million at the end of the previous quarter, with in-transit inventory estimated at 600,000 units (plus whatever numbers already in retail) as of July 1, according to their last quarterly financial.

That kind of inventory, unless they're prepared to take a significant hit, should limit their pricing agility when introducing a possible new SKU.

 

[scooby_dooby]

The reason would be competition.

I'm not saying the PS3 won't or can't move that many units, but a valid reason why PS3 might not, is due to competitors offerings.

The landscape that MS was competiting in last December is quite a bit different than what the PS3 will be compete against this year.

Well the Wii will remain sold out, which is no different than last year. And 360 faced the competition of 2 brand new consoles.

Of course the landscape is different, we could go on for pages analysing every last difference, but the point is that the 360 with a significantly weaker brand name, and smaller userbase, moved over 1million units, in the face of new console launches by both Sony and Nintendo at $400 USD.

I would be fairly surprised if the PS3 was not able to match that.

 

[Nesh]

http://www.computerandvideogames.com/article.php?id=172535

If they strip ot down to such a huge extend they totally lose the point of offering an entertainment device. Most of the most important functions will be gone including functions that are directly related to Home, media center and media distribution functions, connectivity with other devices etc.

Really the should better release a PS3 as it is with a 20GB HDD than one with 40GB and everything else cut off.

I d buy the latter for sure. I am interested on the ton of functions the PS3 offers. And I am waiting for a price drop to get THAT PS3. Not a stripped down version. I bet there are many like me who wouldnt get that cheap PS3.

On the other hand who knows? Next gen visuals, BR functionality and motion sensors priced a bit more than Wii? People who care only about gaming will buy it for sure.

But they will be splitting the userbase. Developers who want to add extra features in their games that are critical for the gameplay experience will be unsure what to do. And they will throw all their original plans on making the PS3 a complete system for entertainment away.

After that why bother adding features that a great deal of gamers wont be able to try?

 

[TheChefO]

If 360 can move 1.1 million last december at $400, on a lesser library, I see little reason to believe the PS3 can't at least match that at a similar pricepoint.

But at the same time, gamers will have a choice between xb360 and ps3 this year.

Last year it was choose xb360, or ...

It isn't quite the same market and Sony(ps3) has lost a lot of mindshare/hype.

Seems the hype for Halo3 is also building up quite a bit and the reviews generally back the title as a worthy AAA title. This hype along with a few other titles this year should push the momentum clearly in MS' camp.

Not to mention, this lower priced sku should see a proper response by MS on the price front, further pushing momentum on their side.

Sony will likely stay on the conservative side WRT losses.

 

[dobwal]

By the end of the year the PS3 will have Resistance, Heavenly Sword, Ratchet & Clank, Haze, UT2007 and Uncharted in it's exclusive stable, as well as the majority of 3rd party support.

That's a solid lineup.

If 360 can move 1.1 million last december at $400, on a lesser library, I see little reason to believe the PS3 can't at least match that at a similar pricepoint.

I agree as 1 million in December in the US is a pretty average amount of console to move. However, I imagine that 1.5 million at the $499.00 is possible for the PS3for both November and December and 1.5 million in the US for November and December for the PS3 at $399.00 will be kind of disappointing.

However, going in and during to holiday season 06, I believe the 360 had a much better lineup than the PS3 going into 07.

 

[scooby_dooby]

However, I imagine that 1.5 million at the $499.00 is possible for the PS3for both November and December

Current sales paint a much different picture.

At only 130k/month, PS3 is far below 'average' sales. generally you'll see a 2x bump in Nov, and another 2x in Dec.

Using that rule of thumb, I would say anything over 250k for Nov, and 500k for Dec is overly optimistic.

Pointless argument anyways, as Sony seems to have realized that they do indeed need to cut their price for this holiday, that install base should be their priority over short-term revenues, as I also believed, and now it's just a matter of time until it's announced.