PS3 slim in 2009, rejoice or too early?

[gongo]

What we know so far:

-Sony to announce slim PS3 next month or TGS, released by September
-PS3 will get a price drop, phat or slim, a drop is coming
-PSeye+ development is coming along very well, next summer to be retailed
-MS will make a big push for Natal, signs point to a "new" Xbox+ with bundled natal and some specs upgrade(higher resolution forward compatible?)
-Natal appears to lag being PSeye+ development
-Motion technology is the next big thing for casual market

As above, must Sony be forced to introduce the PS3 slim this year? I think it will be better to just drop the phat PS3 to $299 80GB SKU and hold back the slim PS3 bundled with PSeye+ next year when the economy picks up. Selling a slim PS3 might give the PS3 brand an instant reboot but the timing and duration seems too abrupt for long term effectiveness. How will Sony combat the Natal marketing hype? We know MS Xbox division is very good at hyping in the western markets.

 

[Shifty Geezer]

I think some of your 'known' things are more guesses.

 

[JPT]

If the normal PS3 costs more to manufacture than the slim, then dropping the price on the normal and not release slim until summer 2010 is a no go.

 

[Arwin]

It's never too early! Well except of course when you've got retail stocked with tonnes of PS3s maybe, but otherwise, Slim should normally mean you can make the device cheaper? And that's always a good thing. Even just shipping costs! The only costs I can think of are making some changes to your production lines.

 

[deepbrown]

Interesting: http://www.ghoststorm.co.uk/?p=2750

WHSmith: "We are clearing PS3s to make room for any new products that may come from Sony in the future.”

 

[Shifty Geezer]

I was thinking that, but gongo's point is, I think, that a slim with PSMotion as a sort of relaunch would do better for PS3 than a slim now, a price drop later, and motion after that. A bigger impact may be more beneficial in the long run than some quieter growth. That said, motion is due out 'til next year. PS3 wants to sell volumes over Christmas. Sony want the slim and price drop for that.

 

[Arwin]

However successful PSMC may eventually become, even IF it does, can you imagine it would bring in signficant amounts of money before 2011 at the earliest? I have a difficult time believing that. Instead, they should have as many PS3s out there to benefit from the fantastic titles they are and have been releasing. There's tonnes of other reasons as well.

The longer I think about it, the more likely it seems that the PS3 Slim is coming out this year and before Christmas. It's probably the only sensible way they can achieve the much needed price-drop while staying financially sound.

 

[Shifty Geezer]

However successful PSMC may eventually become, even IF it does, can you imagine it would bring in signficant amounts of money before 2011 at the earliest? I have a difficult time believing that. Instead, they should have as many PS3s out there to benefit from the fantastic titles they are and have been releasing. There's tonnes of other reasons as well.

Indeed. That doesn't prove the notion that 'it's never too early to have a slim'. I think there are possible cases where a slim should be delayed to have maximum returns. Now, with PS3, isn't one of them.

 

[Arwin]

Ok, fair.

 

[holsty101]

What's pseye+? The motion controller? Or does the OP mean a new camera? There hasn't been any reports on that, has there?

 

[Shifty Geezer]

I presume PSEye+ is what we're all calling PSMotion. Or perhaps the software for PSEye applications like EyePet. Basically not PSEye, which was a camera that sat around doing nothing if it wasn't playing EoJ, but PSEye doing something to rival Natal.

 

[Silent_Buddha]

It's too bad there wasn't a 3rd option for neither. As I won't be voting either way.

It's a tough one to judge whether it's too early or not. And "Just in time" really doesn't fit as many might feel it's either too late or "finally they are they doing it."

Myself, I'm a bit split on this.

On the one hand, I think a price cut is too early as i don't think this holiday is going to be particularly big for any console maker. That added to Sony still losing money makes a price cut + large ramp very risky.

On the other hand. With big risks comes the potential for big rewards. Sony has to do "something" to stimulate sales. And a price cut has been needed for a while. Additionally there's outside pressure by third party devs to reduce the price of the platform. So there's a lot of incentives for them.

But I can't shake the feeling that from a business and bottom line standpoint, this has the potential to seriously backfire and really sink them further into the red. Unless, that is, the economy has a miraculous recovery and this doesn't in fact end up being the worst year for gaming related revenue in almost a decade.

Regards,
SB

 

[Richard]

I'm not all that engaged with consoles but, considering the current PS3 model. How slim are rumours putting the PS3 slim at?

 

[AlNom]

I'm not all that engaged with consoles but, considering the current PS3 model. How slim are rumours putting the PS3 slim at?

Original PS2 size is what I last heard.

 

[Nesh]

Original PS2 size is what I last heard.

I wonder if its going to come with a large power supply

 

[AlNom]

I wouldn't mind.

 

[gongo]

The current results is surprising at 80-20 for just in time. I must be out of touched with the consoles world. However i would think the positives of having a brand new SKU and brand new addon would be better use together and as a failsafe ammo against what your rivals are also preparing? How do those who voted just in time see this unraveling? Please post some comments why you voted so.

 

[22psi]

Yeah but what will the price be? That's the most important thing.

 

[obonicus]

I think I'm just implicitly assuming that the only way to sustain a proper price cut on PS3 is to introduce the slim.

 

[JPT]

The current results is surprising at 80-20 for just in time. I must be out of touched with the consoles world. However i would think the positives of having a brand new SKU and brand new addon would be better use together and as a failsafe ammo against what your rivals are also preparing? How do those who voted just in time see this unraveling? Please post some comments why you voted so.

I think the vote options are to limited.

Basically Sony/PS3 is hurting due to high price, it seems they need to drop the price. Most likely they can not do this without losing more money with the current model. The only option seems to be to introduce a lower bom cost version ie the slim.

As I see it.

1. Keep current price and and not reach sales goals for the current year and lose money on hardware.
2. Drop price on current sku and reach sales goals (assumption yes) and lose even more money on the hardware.
3. Introduce slim, drop price and reach sales goals and maybe get close to break even on the hardware.

So if you want to introduce the slim next year with motion control stuff to create a hype/impact. what about the time between now and when they release it?

For all we know Sony might be contracted for a certain component MOQ for the year anyway, so if they manufacture the devices or not, the components will have to be bought or penalties incurred.