Arwin, yes you did qualify your remarks but perhaps others do not subscribe to such simple solutions. Alas we could all just suggest that MS could give away the 360 for free and make it up on games and accessories, insuring market domination.
PS3 sales
- Thread starter Laa-Yosh
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Arwin, yes you did qualify your remarks but perhaps others do not subscribe to such simple solutions. Alas we could all just suggest that MS could give away the 360 for free and make it up on games and accessories, insuring market domination.
DuckThor Evil
Legend
Well the situation might be a bit more complicated than "they'll just do it"
I get the feeling it could sell a bit better right now, so should't the price cut already come forth. I'm not basically saying that you are wrong in any particular matter, I just think you are over simplifying the situation a bit. I personally feel that we will have to wait till 2008 for the PS3 to start making some serious impact. For 2007 it's too expensive and it lacks good games compared to the competition. Blu-ray-movies are not that big of a deal just yet either. Of course this has imo written all over it.
silhouette
Regular
For the availability, a quick way to check the store availability is the gamestop website. I just checked Atlanta and Dallas area, and almost all stores carry PS3 now. So, either it is not selling well, or Sony can match the demand. We will see which one is correct after we see January NPD number sometimes next month.
As mentioned in discussion about Tretton's comments, that viewpoint doesn't stand up to logical scrutiny. PS3 is expensive because it uses expensive components, and those expensive components will drop significantly in price in the not too distant future, barring terrible problems.
Two things:
1) Past strategies won't work for Sony as they have already thrown out past strategies with the costly design of the ps3. They also ignored the 3rd party exlusive strategy for too long in the west for it to be a factor early in ps3's cycle.
2) Your assumption that ps3 will sell 1 million units every month because sony can produce that manny (even if they have to cut costs) isn't based in reality. If they drop the price of the units $100 to $400-500 there is no guarantee they will sell 1million units/month. They may but I wouldn't bank on it. It would surely be more attractive than it is now but it would still be a more expensive games machine that has less games available. Not to mention if they drop the price by this much I'm sure MS will do the same and we will still be left with the same cost/games difference. And btw - this would place xbox360core under $200. Mindshare/momentum of a sub$200 next gen system that can play the next madden/gta along with a back catelog of 100+ games and extras would be difficult for Sony to regain.
Sony needs an exclusive killer app asap. Without it (and I mean soon), they are stuck in 3rd place this gen.
I edited my post to address your point.
"Sony ability to produce 12 million PS3 in one year doesn't mean you can assume that they can sell them all. There is no way to tell if Sony can drop the price of the PS3 to maintain steady demand to sell 12 million by the end of the year. Sony has already stated that a price drop is unlikely and would be hard due to financial constraints."
Furthermore your original point was that the PS3 had a chance of selling more in 5 months than the PS2 did in 12 months.
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scooby_dooby
Legend
He's completely over simplifying it. Eve in statements like "When they stop selling them, they will lower the price", sales never 'stop', they simply don't meet targets.
Perhaps you're saying that as soon as they become demand limited Sony will drop the price, I don't know if this is the case, it really depends on their ability to drop the price, and whether this drop in demand occurs one month from now, or 6 months.
I doubt PS3 will sell 12million this year, even after they drop the price to $399. It's possible, but given the faltering demand we're already seeing, I have my doubts. PS3 just doesn't give consumers enough reason to want it, everything is available on 360 at a much lower price, it needs the games to set it apart, I don't see that happening this year as MS has a much better 2007 exclusive lineup.
I agree with Dr Evil, 2008 is when PS3 will start to pick up real steam.
People should read the Stringer interview from last week. In it, it was mentioned that Kutargi had 'promised' PS3 to be profitable by the end of calendar '07. That suggests they're expecting massive falls in component prices which will cover the cost of subsidisng a launch (even at current prices)? If it is the case, then if they expect profit by the end of the year, I don't see why they couldn't manage a price cut to $399.
thatdude90210
Regular
The same one they use to make & sell a 60GB PS3 for $399.
Amazing how many people vote for $399 (for what is now the $599 version), like Sony has some magic parts bin where parts are cheaper than for anyone else.
With Xbox 360’s current line up through 2007 and its price drop. Not to mention the Wii’s hype. The ps3 with its high price point, lack of big exclusives (most exclusives are new IPs and their two biggest may not hit the west until 2008) and the fact that many reviews point out that the 360’s version of ports look and play better …. Well it’s an up hill battle. I simply don’t see Sony selling that many consoles.
DuckThor Evil
Legend
I voted for 399$, but I was voting for the entry level PS3... it has HDD too you know.
http://www.dailytech.com/article.aspx?newsid=5810
Game Informer magazine interviewed SCEA’s President and CEO Jack Tretton and one of the topics discussed was PS3’s cost.
The magazine asked if the PS3 would see a price drop schedule similar to PS2, which saw a reduction of a third from $299 to $199 just over a year and a half after launch. Tretton replied to the question with a simple “No,†thus leaving the current price points where they are at for at least the rest of 2007.
Tretton reasoned that the enormous R&D costs of the PS3 make it “a lot more difficult to cost reduce†than the PS2. “There's a heck of a lot more under the hood and it costs us more money to make it,†said Tretton. He may be referring to the fact that Sony is selling every one of its new consoles at a loss, making it nearly impossible to move on the price until manufacturing costs are reduced. Analysts currently estimate that Sony is taking a $241 hit on 60GB versions, and a $307 loss on 20GB PS3s. ( http://www.dailytech.com/article.aspx?newsid=4981)
+1
More given that Sony is laking games right now, and systems aren't flying off the shelves, I guess that MS will delay price cut some more, or will do it in a clever manner (bundle mostly), but they will drop the price just before Q4 to 199$/299$ (premium/core) bundled with one or two good old games, It will be tought for Sony.
So I voted that will to drop the price to 499$/399$ (premium/core) even if they 're bleeding to death if not it's quiet simple they will lost ground completly in US.
Sony is losing money on each console sold. If they apply the lowered cost of manufacturing the console strictly towards lowering the price of the console and thus succeed in stimulating demand they would actually be losing even more money overall. At this point PS3 software isn't selling nearly well enough to generate the kind of royalties to carry Sony if they continue to bleed money on the hardware. I think that any reduction in manufacturing costs would in the short term only partially be converted into a price cut and the rest would serve to decrease the ammount Sony is losing on each console they sell. PS2 profits aren't going to be able to make up the difference indefinately.
Ms will cut the price for Halo 3. Perhaps earlier to help pick up some early fall sales. Sadly for ms their only released killer app is a mature rated title (GOW) and makes it hard to bundle. No other game by itself has that much hype behind it. Perhaps they can do a kameo + viva piñata bundle. Or maybe a Kameo + PDZ bundle. I’m not sure. Would they go to a third party title they don’t publish?
However MS’s line up through the end of spring is very strong. I look to be spending $100 a month on 360 games between February and June. Guitar hero with a ton of quality live content packs would also sell a lot of systems. Esp. if wireless controllers are standard
I also don't see how Sony will drop the price this year by a large margin. If Isupply is even close to the mark I don't see Sony cutting over $200 in costs from the ps3 in 1 year. Not only that but what would a $100 price drop do to its image not even a year after launch? Esp. since MS has held out a year and Nintendo might be able to do the same
However MS’s line up through the end of spring is very strong. I look to be spending $100 a month on 360 games between February and June. Guitar hero with a ton of quality live content packs would also sell a lot of systems. Esp. if wireless controllers are standard
I also don't see how Sony will drop the price this year by a large margin. If Isupply is even close to the mark I don't see Sony cutting over $200 in costs from the ps3 in 1 year. Not only that but what would a $100 price drop do to its image not even a year after launch? Esp. since MS has held out a year and Nintendo might be able to do the same
Here's another Sony quote: "Startup costs for the PlayStation 3 have been hefty but Stringer said he expects the game console to break even by the end of the year."
source: http://abcnews.go.com/Technology/wireStory?id=2779681&page=1
true, but at the original time of the poll, there was no 20 GB HDD version... there was only one system announced with all the bells and whistles including 2 HDMI etc, etc... :smile:
so people were hoping for/expecting (80.13%) between $399 $499 fully loaded.
Right at product launch, you think a company is going to mention a price drop? No company mentions a price drop, it's suicide because people aren't stupid - they will wait.
scooby_dooby
Legend
I expected $399 with no HDD because with that configuration they would kill MS, I didn't think they would hand the generation away by going crazy $500-600 pricepoints....well they did
