Rumor: Slim PS3 on the way?

[Shifty Geezer]

Different experience?

You can only use PSP Go if you have access to the internet to download content. It also offers a smaller screen. It also costs a lot more. It's not a direct replacement for the PSP, but a parallel SKU. It may not be a drastically different experience, but it is different enough to be a whole new SKU that exists alongside the other PSP SKU.

The only reason to keep the original PSP is that 100% of the market does not have access to broadband and/or Wifi. You could snatch out the DVD of the 360 and offer a digital download only sku.

Right, and would you then replace the XB360 with this new drive-less SKU? Nope! Whereas the PS3+ (I'm not calling it a Slim because it's not a true slim) is a replacement for the current fat model. As soon as people know the Slim is coming out and will be superceeding the Fat, they'll stop buying the Fat. That's the reason to not announce it until the last minute, because they'll abruptly end whatever demand there currently is for Fat and then need to worry about how to get rid of that stock without losing buckets more money on it.

Although is PSP Go is anything to go by, PS3+ will launch at an extra $200 premium! Way to expand your userbase, Sony

 

[obonicus]

Yes, its more portable but the core experience is still the same and having 10-20 games downloaded from PSN and readily available on the PSP has been around for a while now.

But it's not about the core experience, it's about the ancillary experience -- that's changed enough, that, along with a much higher price-tag I don't think Sony would worry about the Go! eating into existing PSP sales. Which isn't the case for the PS3 slim change, especially with the rumored price reduction.

I can understand that Sony will like to give time to retailers to dwindle their current stock of PS3 but even the PS2 slimline was introduced a couple of months before release. The PS3 Slim is a marketable event and I doubt that Sony will just release them into the wild without trying to create some level of hype before they are actually available for retail.

Well, like I've said, the reports say that this will show up in August (maybe September). GC is mid-July, so that fits into your schedule.

 

[Crossbar]

Yes, its more portable but the core experience is still the same and having 10-20 games downloaded from PSN and readily available on the PSP has been around for a while now.

A very limited set of games have been available for download so far, but yes it still play PSP games and that is of course the core experience.

I can understand that Sony will like to give time to retailers to dwindle their current stock of PS3 but even the PS2 slimline was introduced a couple of months before release. The PS3 Slim is a marketable event and I doubt that Sony will just release them into the wild without trying to create some level of hype before they are actually available for retail.

I agree, I wonder if they are saving the announcement for a certain occasion as the Game Convention in Köln in order to make as large splash in the pond as possible?

I predict Sony will announce a price drop of the 80GB PS3 at about the same time.

Edit: deja vu

 

[DJ12]

I thought Kaz said it would be the same price as the normal PSP? Have I missed something?

 

[Crossbar]

Although is PSP Go is anything to go by, PS3+ will launch at an extra $200 premium! Way to expand your userbase, Sony

Yep they will certainly let the early adopters pay a premium no doubts about that.

If Sony or MS rolls out a PS3+ or 360+, I think it will in the short term be to keep some the user base (the hard core) and in the long term be to extended the life cycle and that will implicitly expand the user base.

Motion controllers will of course also help expanding the user base, Sony and MS are learning. :smile:

 

[dobwal]

A very limited set of games have been available for download so far, but yes it still play PSP games and that is of course the core experience.



I agree, I wonder if they are saving the announcement for a certain occasion as the Game Convention in Köln in order to make as large splash in the pond as possible?

I predict Sony will announce a price drop of the 80GB PS3 at about the same time.

Edit: deja vu

Yeah, my prediction is even if Sony is taking PS3 Slim delivery right now, they are going to stock pile them for awhile. One to allow the current inventory to be sold while in a month or two introducing a price cut to further reduce inventory. This will be followed a 1 to 2 month marketing campaign for the PS3 Slim than finally a release at the post price cut retail price.

This will ensure that they have enough supply for the initial launch and the holiday season. I think the last thing Sony wants to have happen is a bunch of $500-$600 PS3 Slim on Ebay being the only avenue for consumers late into December.

 

[Shifty Geezer]

Yep they will certainly let the early adopters pay a premium no doubts about that.

Well they didn't with PS1 and 2 slims. The PSP Go is an anomoly at the moment, and it'd be setting a truly stupid precedent!

 

[Crossbar]

Well they didn't with PS1 and 2 slims. The PSP Go is an anomoly at the moment, and it'd be setting a truly stupid precedent!

I thought that PS3+ meant some kind of upgraded console, but if not then yeah it would be pretty stupid.

Edit: I guess am confused because of the lack of a stardadised PS3 Slim naming convention.

 

[DuckThor Evil]

Well they didn't with PS1 and 2 slims.

Sony might however keep the current price point for a little while and the drop it depending at when they are releasing this, that essentially would be collecting premium from the early adopters.

 

[obonicus]

Well they didn't with PS1 and 2 slims. The PSP Go is an anomoly at the moment, and it'd be setting a truly stupid precedent!

The PSP doesn't really match the PS1 or PS2, it's the 4th version of the system -- all the others were the cost-cutting ones. This is the premium version.

 

[patsu]

Sony might however keep the current price point for a little while and the drop it depending at when they are releasing this, that essentially would be collecting premium from the early adopters.

... or if (and IMHO, only if) quantity is limited, they can sell it as a bundle only to maintain the current premium. This will likely skew it towards new PS3 owners to increase their base. Then drop the bundle and go to the new lower price when quantity has ramped up.

I don't know how Sony will play their game.

 

[Shifty Geezer]

I thought that PS3+ meant some kind of upgraded console, but if not then yeah it would be pretty stupid.

Well the PS2+ wasn't really upgraded. It was quieter and they improved DVD reading, but removed the Firewire and a couple other bits. I think PS3+ fits previous models okay.

The PSP doesn't really match the PS1 or PS2, it's the 4th version of the system -- all the others were the cost-cutting ones. This is the premium version.

Only because they're charging a premium! The new model released several years later on cheaper technology should cost less. Likewise a PS3+ should cost less, both due to lower production costs and because Sony are losing marketshare hand-over-fist, even in 'Sonyland', and sooner or later they need a cheaper box to actually get some new install base!

 

[obonicus]

Only because they're charging a premium! The new model released several years later on cheaper technology should cost less. Likewise a PS3+ should cost less, both due to lower production costs and because Sony are losing marketshare hand-over-fist, even in 'Sonyland', and sooner or later they need a cheaper box to actually get some new install base!

Not at all. It's premium because they call it premium; it's a strange expectation among the console-buying crowd that you'll actually be paying what it costs to make a system, or oftentimes even less than that. This is more in-line with other consumer electronics -- you're paying for the redesign. It's the future, and Sony's not even the first to do it.

 

[Shifty Geezer]

Not at all. It's premium because they call it premium; it's a strange expectation among the console-buying crowd that you'll actually be paying what it costs to make a system, or oftentimes even less than that.

The expectation isn't that device price will be proportional to cost price, but the fact PS3 costs as much now as it did 2 years ago and is losing market share. Sony need a price-drop, right? Do you really think new hardware that is cheaper to make is then going to be sold at a higher price with zero extra features (assumption) where there's even less demand than there is now?? Ordinary business sense says now is the time to price-cut, when costs are reduced. Ordinary business sense does not say keep the current unappealing high-price and introduce a more expensive model.

 

[obonicus]

The expectation isn't that device price will be proportional to cost price, but the fact PS3 costs as much now as it did 2 years ago and is losing market share. Sony need a price-drop, right? Do you really think new hardware that is cheaper to make is then going to be sold at a higher price with zero extra features (assumption) where there's even less demand than there is now?? Ordinary business sense says now is the time to price-cut, when costs are reduced. Ordinary business sense does not say keep the current unappealing high-price and introduce a more expensive model.

Oh, I'm talking about the PSP. I agree with you on the PS3 and don't think Sony will raise the price. The reason why they did for the PSP are fairly clear for me. It's a completely different situation -- the PS3 is already positioned by Sony as a premium item. The PS3 also isn't carrying a price-tag that will increase retailers' good-will in relation a system they can't sell games for (especially in Europe).

 

[dobwal]

Not at all. It's premium because they call it premium; it's a strange expectation among the console-buying crowd that you'll actually be paying what it costs to make a system, or oftentimes even less than that. This is more in-line with other consumer electronics -- you're paying for the redesign. It's the future, and Sony's not even the first to do it.

I didn't pay upfront to cover hardware costs for my cable box, Iphone or my security system. Its not strange its rather common when the selling of the hardware isn't actually the primary generator of revenue. However, the PSP Go can't depend on that because the PSP isn't the best mover of software and software sales aren't as stable and dependable like revenue generated from contracts on cellphones or Cable TV.

If Nintendo came out with a DS Go with a similar uptick in features, I doubt it would come at a such a high premium because the DS performs rather spectacularly when it comes to revenue generation through software sales.

 

[obonicus]

I didn't pay upfront to cover hardware costs for my cable box, Iphone or my security system.

Are you advocating a subscription system for games, then? I'd be up for it, but I suspect a lot of people here wouldn't.

Its not strange its rather common when the selling of the hardware isn't actually the primary generator of revenue.

If they're either on the subscription model or the razorblade model. How common is the razorblade model, especially for consumer electronics? It's not even unanimous in the console industry.

However, the PSP Go can't depend on that because the PSP isn't the best mover of software and software sales aren't as stable and dependable like revenue generated from contracts on cellphones or Cable TV.

Right. But isn't it telling that the leader this generation doesn't depend on game sales for its profit, either? And that both the 2nd and 3rd place consoles, despite solid sales (especially for the 2nd place) had to struggle to reach profitability? I'm just saying to expect more of it in the future, like it or not.

 

[Prophecy2k]

I didn't pay upfront to cover hardware costs for my cable box, Iphone or my security system. Its not strange its rather common when the selling of the hardware isn't actually the primary generator of revenue. However, the PSP Go can't depend on that because the PSP isn't the best mover of software and software sales aren't as stable and dependable like revenue generated from contracts on cellphones or Cable TV.

If Nintendo came out with a DS Go with a similar uptick in features, I doubt it would come at a such a high premium because the DS performs rather spectacularly when it comes to revenue generation through software sales.

Wasn't the DSi released at a higher price point though?

(I'm unaware, as I don't really follow Nintendo systems anymore)

 

[dobwal]

Are you advocating a subscription system for games, then? I'd be up for it, but I suspect a lot of people here wouldn't.

I probably would bet that a subscription based digital download model touted by Sony, MS or Nintendo would just as popular as with the gaming crowd as Netflicks is with the movie crowd. I bet when broadband penetration goes above 85-90%, they will offer such a service.

If they're either on the subscription model or the razorblade model. How common is the razorblade model, especially for consumer electronics? It's not even unanimous in the console industry.

Unlike, the majority of electronics, consoles act as profit generators and have several revenue streams othan than the sale of hardware so its easy to see why the last 4 out 6 console released has used such a model.

Right. But isn't it telling that the leader this generation doesn't depend on game sales for its profit, either? And that both the 2nd and 3rd place consoles, despite solid sales (especially for the 2nd place) had to struggle to reach profitability? I'm just saying to expect more of it in the future, like it or not.

Isn't it telling that the last two leaders of previous generations have used this model and that even in this generation the majority of console sold into the market are sold at a loss. Its not the profit model thats the problem, its the way MS and Sony implemented it. Do you prescribe to the belief that the Wii would have fared worse it was release for $150 and sold at a loss by Nintendo? Selling at above cost hasn't been the key to Nintendo success. The key to Nintendo success has been to offer something more than just a big uptick in visuals.

Anyway we getting off topic. The PSP Go high price probably has more to do with Sony's lack of faith of the PSP as a profit generator through software sales than it does in offering a new premium PSP with new features.

The PSP Go lacks a UMD drive and has a smaller screen. Futhermore, I can go buy one 16 Gb flash card for ~$70 dollars off the internet, so I bet it cost Sony less than $20 dollars to get that amount of memory on the PSP.

 

[obonicus]

Isn't it telling that the last two leaders of previous generations have used this model and that even in this generation the majority of console sold into the market are sold at a loss. Its not the profit model thats the problem, its the way MS and Sony implemented it. Do you prescribe to the belief that the Wii would have fared worse it was release for $150 and sold at a loss by Nintendo? Selling at above cost hasn't been the key to Nintendo success. The key to Nintendo success has been to offer something more than just a big uptick in visuals.

I'm not saying that selling above the cost was key to Nintendo's success. I'm saying that selling below cost is unnecessary. And dangerous, if your whole profitability strategy hinges on you being in first place. And I'm saying that the other companies have noticed this as well -- Stringer has even remarked on it.

Anyway we getting off topic. The PSP Go high price probably has more to do with Sony's lack of faith of the PSP as a profit generator through software sales than it does in offering a new premium PSP with new features.

It doesn't have new features, it has the label of 'premium'. Yeah, they're only doing it because they have to sell it at higher margins. But they're not doing that because they don't believe in the PSP as a profit generator -- I'm pretty sure that Sony makes money off the 3000 line by now. The price is higher because the idea is for even retailers to make actual money off gaming hardware. That is a novel idea, and one not even Nintendo was gutsy enough to try -- but absolutely necessary, since DD will cut deeply into the retailer's bottom-line. And of course, we're shocked. Sony has practically gone on record on this retailer-markup, too.