Rumor: Slim PS3 on the way?

The 3k base unit now costs 168.99 euro at play.com ... . A 16GB memory card (pro duo) costs about 99 euros. See where I'm going?

 

So it's priced crazily high so the stores will want to sell it...but who'll want to buy it?! That way of thinking is just flawed. It reminds me of a Calvin and Hobbes cartoon. No-one's buying lemonade on a winter's day at $5 a glass, so he considers selling it at $10 a glass so he only has to sell half as many.

If Sony need the retailers to be on board and they want hard media, they shouldn't make a Dd only device. If they want to go DD, they should sell it through alternative channels. Make it cheap and sell it online. Those with the savvy to buy download only titles will get one. What they've done serves neither party.

 

I wonder if the PSN DD turns out to be a great success and becomes readily used by the PSP Go as well as the PSP 1k, 2k and 3k market, how will that affect the retailers handling of the 3k PSP. If UMD sales drop steadily after PSP Go release, we may end up seeing the 3k at its current price point for a long while. If you have declining UMD sales even with increased PSP sales then the retailers might not pass on any cost savings to consumers when Sony reduces the wholesale price of PSP over time.

 

Either that or Sony will fix the price of DD releases to be exactly equal to those on the shelves at retail. I personally believe the latter, or would even go so far as to suggest that they may even price DD titles higher for the added "convenience". What you've highlighted is one of the biggest obsticles of DD over retail software, and I for one don't see Sony or anyone else offer a console DD service offering DD games at a lower price point than thier retail equivalent.

See Steam in Euroland and the Uk for that matter (e.g. Prototype for PC released at £35 on steam whilst £24 at retail)

 

Retailers don't care if they sell 20 or 100 as long as the profit margin makes it worthwhile. If it sells only 20 then retailers will simply reduces shelves space and make room for the consoles/handheld that do sell. Sony could use alternative means but mainstream channels are necessary for success as they are where the bulk of the sales come from. Plus, alternative channels would know they don't have to compete with mainstream channels so the price of PSP Go would still be high, outside of Sony selling the PSP Go from its own website at a modest price.

 

I'm rather at a loss to see why Sony didn't just do both??? Of course retailers are going to want to do everything possible to hinder the growth of DD only software distribution platforms.

Sony could have offer a retail PSPGo at £249 to allow the retailers their own mark-up, as well as offering an on-line option straight from the Sony website (and Sony high street stores) at a much more "reasonable" price. If anything it would allow Sony to test the waters with the distribution of the PSPGo hardware as well.

If they can distribute software directly to the consumer, and hardware too, then who the heck needs retail altogether? Apple gets it...

 

That's true. At the same time, if digital download takes off and UMDs are not performing, the retailers will be happy to reuse the shelf space for something more profitable. PSPGo *may* offer a good transition. The rest will be lowering price over time (as long as the margin is there).

 

Except, if retailers told Sony if they sold the PSP Go from Sony B&M and/or online stores at a lower price,the retailers wouldn't stock the PSP Go, then Sony would have to capitulate. Sony has no leverage right now. They can't say well we will pull the PSP 3k and PS3 if you don't sell the PSP Go. I think the retailers would literally laugh in Sony face and go "you need us more than we need you unless you want NPD numbers in the low 5 digit range for the PSP and PS3 every month".

 

If they really want to price PSPGo cheap as a strategy, they could explore other channels (e.g., BestBuy, Sony Style, smaller gaming stores) if traditional gaming stores don't want to play. The savvy gamers will know where to look for a great deal. Once the critical mass is there, more distribution partners will be interested, especially if it helps to bring foot traffic. Sony has other PSP models in gaming stores but a cheap PSPGo will likely cannibalize them (This is another problem, probably more severe than the revenue stream one since it burns the bridges).

 

Sigh... sadly this is the truth of the matter.

I guess I'm hoping that someday I'll be able to see a reasonably priced DD-only portable gaming device with a Playstation sticker on.

I do wonder how retailers will respond to the Microsoft offering full 360 games through XBL?

Back to the orignal topic, given all that's been said, I think we can safely assume the PS3 Slim will be priced lower if not at the same price point as the current PS3 (well... pre-holiday price drop anyway).

 

I can't imagine the price won't drop. As others have pointed out, the Go! is probably cheaper to manufacture than the 3000, and probably priced to recoup the R&D costs right away. And then we'll see the price drop, especially if it underperforms. Still, this doesn't mean that the retailer's cut will be reduced.

For starters, retailers will be looking at the publishers, not at Microsoft. On top of that, the initial list of titles shown in the screenshot was a bunch of games from 2007/early 2008. Assassin's Creed, Bioshock, CoD4, Burnout: Paradise. On top of that, expect prices to be the same for the most part -- you might actually be able to save money on MS Points and get bargains that way, though. That's not to say that you won't get a more current library, as time goes on.

Finally, 360s actually sell software. You can't really say the same for PSP. Here Sony is replacing a piece of hardware retailers make almost no money on and a bunch of low-selling software titles with a piece of hardware that will make retailers money and, probably, point cards (which I hear are profitable, but I don't understand exactly how that is).

 

But that's exactly my point in asking the question! Retailers make money on 2007/2008 used game sales, but as these games appear as though they'll begin appearing on XBL, I can surely imagine these DD sales will start eating into the retailers biggest cash cow (used game sales). Again, the very fact that 360s do sell a significant amount of software, means that MS DD proposition is a greater threat to retailer margins than the PSPGo (IMHO).

 

Except that these games will be sold at new (as opposed to used) prices, undoubtedly. Probably the resale value of a bunch of games retailers may not even carry new anymore is low. Also, the point is that retailers need no incentive to carry the 360. If Sony tried to push forward a PSP that wouldn't sell software and will sell at typical margins, they'd tell Sony to stuff it.

 

I see what you mean there obonicus.

 

Actually, they won't be purchased with points, just good old fashioned currency.

 

Are you sure? What I had heard is that they'd use points, but list the 'dollar equivalency' at the same time.

 

God WHY WHY WHYYYYYY!!!??? Why do we have to have points and not dollars?

Jack

 

http://gizmodo.com/5274395/xbox-liv...demand-download-mass-effect-bioshock-and-more

"Microsoft had too much news for the keynote, so they're taking care of the spillover now: First up, full Xbox Live games on demand. That's right, you can download Mass Effect, Bioshock and more. Using a real credit card—no Xbox Live points—with retail-like pricing. They're coming in August."

 

http://www.joystiq.com/2009/06/06/video-xbox-360-games-on-demand-service/

Check the video. At around 33s it shows the price in MS points. Though maybe it'll allow people to buy points in exact amounts, plus tax? It's hard to tell with a price like $20.

 

D'oh, that's a shame. I like Microsoft points, there's always deals on them so I stock up and get games cheap. Oh well, I guess that's over