In an interview with Reuters, Masanao Maeda, corporate director of the Sega Corp., voiced concerns over current pricing strategy of Sony's next generation console, PlayStation 3
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Sega Sees Need for PS3 Price Cut
- Thread starter B3D News
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I think they clearly see the need, but are postponing it as long as possible. They've got some strong software coming that may move some boxes. It'd be financially more sense to see what the software on its own can do, and then drop the price when sales remain low, rather than drop the price now. It could be that a million gamers are waiting for key titles before willingly spending their $600, and that'd be a lot of money Sony lost if they drop the price before the software.
Well, to be fair, Sony is in the best position to judge it. SEGA just wants a wider audience to sell its games to; when you're the one footing the bill for the hardware though, things aren't so cut and dry. SEGA above all others should know this... and I suspect they do, it's just that they of course - like all others - have to portray stances that better their own corporate interests.
I don't think it's "postponing it as much as possible" as "not wanting to dull the effect of it" if they did it now. I mean, just what do they have set up to capitalize on it? It would increase sales, but certainly nowhere near as much as the momentum it would create for a fall/holiday reduction in conjunction with the release of anticipated games, and the really big stuff falling on its' heels.
A price reduction now would simply seem like desperation, and there's nothing BUT the price reduction coming out right now that would seriously bring people to the platform, which is why--I guess--they're offering smaller deals at the brick and mortar stores and looking for, say, the Blu-Ray promotion to fill the gaps.
(In fact, holding off lets them more properly gauge how much of an effect BR alone has on PS3 sales, since nothing much exclusive and compelling is coming out until just after that BR offering ends.)
I think they probably WILL drop price this holiday season regardless of the performance at $600 from earlier titles, because they don't need the extra revenue nearly as much as they need to build momentum. (Also, $500 is really just one of those mental sticking points, which is why I'm sure they had the $499 SKU to begin with, so they could put "starting as low as $499" in advertisements and the like. Being closer to $1000 than you are to $0 is simply a mental hurdle.)
A price reduction now would simply seem like desperation, and there's nothing BUT the price reduction coming out right now that would seriously bring people to the platform, which is why--I guess--they're offering smaller deals at the brick and mortar stores and looking for, say, the Blu-Ray promotion to fill the gaps.
(In fact, holding off lets them more properly gauge how much of an effect BR alone has on PS3 sales, since nothing much exclusive and compelling is coming out until just after that BR offering ends.)
I think they probably WILL drop price this holiday season regardless of the performance at $600 from earlier titles, because they don't need the extra revenue nearly as much as they need to build momentum. (Also, $500 is really just one of those mental sticking points, which is why I'm sure they had the $499 SKU to begin with, so they could put "starting as low as $499" in advertisements and the like. Being closer to $1000 than you are to $0 is simply a mental hurdle.)
Both Sony's president and Sony's CEO have very publically discussed the need to bring the price down.
djskribbles
Legend
yup... Sony knows they need a price cut as well. i think they're just waiting for the best time to do it. if they do it now, it won't be much help, but if they do it when their games like Lair, Warhawk, R&C, Heavenly Sword, Uncharted and NGS get released, there sales could possibly increase significantly.
I'm not sure what it will take to get Sony back into the game at this point. I'm starting to think the market for $400(aka399) consoles in almost saturated in NA.
The problem is Sony needs to hit $400(aka399) like yesterday. But MS will hit back with $300(aka299) with in seconds and a better library to boot. The more this war goes on I feel Sony needs to hit $299-$349 to take back the drivers seat.
I know Sony has good software coming but the longer they stay in 3rd place the more devs will jump ship or port. I don't think they can afford to wait till 2008 to hit sub $398 pricing.
The problem is Sony needs to hit $400(aka399) like yesterday. But MS will hit back with $300(aka299) with in seconds and a better library to boot. The more this war goes on I feel Sony needs to hit $299-$349 to take back the drivers seat.
I know Sony has good software coming but the longer they stay in 3rd place the more devs will jump ship or port. I don't think they can afford to wait till 2008 to hit sub $398 pricing.
I agree, I think they might try and see what the upcomming fall games do for the sales, and then lower the price just before the holidays if it is needed, which I think it is as just great games might not be enough.
I wonder if this is the MS strategy as well. See what Halo3/GTA4 does and then lower the price. With the soon included smaller chips in their box it they should be able to earn quite a bit on the hardware as well, I wonder if they will do that or pass the saving to the consumers directly...
IMO, Sony should come off as desperate and drop the price before Halo 3 comes. While the word desperate may sound like a bad thing for a company status, they need it. The PS3 isn't even making 100ks in the US which is the biggest market. In another 4-5 months that won't even equal 1 million overall considering the rest of the world aren't buying it. They have been stuck on 3 million install base for quiet some time now. And by the time they get 4 million it'll take even longer to reach 5 million.
Those quality titles like Heavenly Sword and Lair won't cut it because they aren't big enough. They won't move hardware sales that will take them over the bridge. Unless a game like KZ2 fully delivers in reviews and graphics or have GT5 been ready this year, I can't see another big name title that can help them really move sales. You can say a combination of titles but that has little effect.
Those quality titles like Heavenly Sword and Lair won't cut it because they aren't big enough. They won't move hardware sales that will take them over the bridge. Unless a game like KZ2 fully delivers in reviews and graphics or have GT5 been ready this year, I can't see another big name title that can help them really move sales. You can say a combination of titles but that has little effect.
Sony needs to show their hand first before even attempting to make a price cut. Right now there are hardly even any big games out yet, so no suprise they aren't selling much. Further more you can debate on what their business strategy really is this gen given the prominent spot for bluray and all.
Indeed.
They've been making great strides lately in this realm and may be content with likely future profits on the back of Bluray.
At a certain point (2008?), the hardware becomes relatively cheap/competitive with xb360 and they can ramp/pricedrop to their hearts content.
My thoughts are this will be too late to regain a prominant position in the games market but as said, it may be that overall company profits and Bluray success overshadow immediate success in the games market. I foresee layoffs in the Sony Games division(s).
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