Sony delay PS3 until November

[Titanio]

A 360 price cut will be tied to how quickly they can come down the cost curve..and they're not doing that very quickly so far. I think it's been said also that internally they've made a commitment to senior management to break even by a point next year (can't remember exactly when..just remember this being said), which could constrain them. It all depends on the returns they're getting away from hardware, I guess.

Regardless, though, how effective any price cut on MS's end is would depend very much on PS3's offering and how it is presented to the market. Pricing can be a double-edged sword, and Sony has experience maintaining premiums on their products. Sony marketing won't be lacking for material to work with in this regard.

 

[liolio]

So if Sony manages an October '06 launch in North America and a November '06 launch in Japan, will they be able to supply both territories adequately? Or will the launch dates mostly be there so that MS doesn't have more time unchallenged? If it's a slight technical issue, it would seem reasonable that they have good supply with such a delay.

And yeah, MS needs to capitalize on this, but they're in about the worst possible position to do so. MS really could have made a killing if they were a bit more lucky.

I think Sony should be able to slightly better Supplie NA and Japan than MS does:
1 no european launch

2 In regard to the New gf7600/7900 Sony seems to have choose a very reliable and effectif part for the gpu

3 Cell will be out for 1 or 2 years

So i think that Sony will not know the same trouble as MS. Anyway i don't expect infinite availability of the product.

 

[scooby_dooby]

If I were MS I would bring on another 2 factories for a total of 5, they should be pumping out a million units a month to capitalize on this.

 

[m1nd_x]

I think the smartest thing for MS to do, instead of doing direct price cuts would be to beef up the premium package and then move what they have now as the premium package to the core, keep the same prices... for instanse:

---Xbox 360 Core System ($299)
- Xbox 360 Game Console
- Wired Controller
- Composite A/V Cable
- 20GB Hard Drive

---Xbox 360 Premium System ($399)
- Xbox 360 Game Console
- Wireless Controller
- Combination High-Definition Component and Standard A/V Cable
- HD-DVD Add-On
- 100GB Hard Drive
- Ethernet Cable
- Headset

Maybe not exactly like that, but something similar.

 

[Megadrive1988]

yeah.


I'd like to see more balance to this new generation. with Sony' console marketshare under 60%

a healthly PS3, Revolution and Xbox 360 is best for this industry. nobody should be under 20% or over 59%

 

[Inane_Dork]

So i think that Sony will not know the same trouble as MS.

Oh, I don't think that either. That combined with a delay would be exponentially stupider than SCE's been for a long time. I just wonder what kind of supply we can realistically expect if the launches are so close together.

 

[nelg]

Merrill Lynch's crystal ball was working pretty good on this point.

The analysis cited reports that the launch of PS3
could be delayed by between 6 and 12 months, with the result being an autumn
launch in Japan and a late 2006 or early 2007 launch in the U.S. We address the
possible impact on different businesses in this note.

 

[Titanio]

If I were MS I would bring on another 2 factories for a total of 5, they should be pumping out a million units a month to capitalize on this.

If I were MS I'd be making sure demand was there to warrant that first, lest an embarassing halt in production was required later. MS is selling all they can ship now, but it's very early days, and we're still seeing early hardcore adopter demand unsatisfied. There'll come a point where MS will have to work a lot harder to sell the system - where endlessly pumping up supply wouldn't necessarily be the smartest choice.

 

[liolio]

A 360 price cut will be tied to how quickly they can come down the cost curve..and they're not doing that very quickly so far. I think it's been said also that internally they've made a commitment to senior management to break even by a point next year (can't remember exactly when..just remember this being said), which could constrain them. It all depends on the returns they're getting away from hardware, I guess.

Regardless, though, how effective any price cut on MS's end is would depend very much on PS3's offering and how it is presented to the market. Pricing can be a double-edged sword, and Sony has experience maintaining premiums on their products. Sony marketing won't be lacking for material to work with in this regard.

I don't agree the most part of the ps2 sales were done when the price came down.
Anyway even if Ms choose to reduce xbox price it won't be enought to catch up with the budget of causual gamers

For those who expect that Sony will use 65nm process (i don't) Ms can do the same.
And probably don't want, ATI have show everybody how process shrink can go wrong.
I think Sony is more or less in the time frame they had choose.

 

[dukmahsik]

I think the smartest thing for MS to do, instead of doing direct price cuts would be to beef up the premium package and then move what they have now as the premium package to the core, keep the same prices... for instanse:

---Xbox 360 Core System ($299)
- Xbox 360 Game Console
- Wired Controller
- Composite A/V Cable
- 20GB Hard Drive

---Xbox 360 Premium System ($399)
- Xbox 360 Game Console
- Wireless Controller
- Combination High-Definition Component and Standard A/V Cable
- HD-DVD Add-On
- 100GB Hard Drive
- Ethernet Cable
- Headset

Maybe not exactly like that, but something similar.

i agree with that except for the hd-dvd addon that's too much money

 

[Dave Baumann]

For those who expect that Sony will use 65nm process (i don't) Ms can do the same.
And probably don't want, ATI have show everybody how process shrink can go wrong.

A shrink on a know architecture is generally less trouble than a new process and new architecture.

I wouldn't believe that MS are being reticent about reducing the silicon costs.

 

[Inane_Dork]

I think the smartest thing for MS to do, instead of doing direct price cuts would be to beef up the premium package and then move what they have now as the premium package to the core, keep the same prices... for instanse:

---Xbox 360 Core System ($299)
- Xbox 360 Game Console
- Wired Controller
- Composite A/V Cable
- 20GB Hard Drive

---Xbox 360 Premium System ($399)
- Xbox 360 Game Console
- Wireless Controller
- Combination High-Definition Component and Standard A/V Cable
- HD-DVD Add-On
- 100GB Hard Drive
- Ethernet Cable
- Headset

Maybe not exactly like that, but something similar.

I don't see that they have to choose between beefing up and cutting price. They can cut the price of the Core system (which is its raison d'etre anyway) to $249 or $199 and pack in more stuff with the Premium system. 2 controllers, 2 games, free XBL Gold service, whatever. I think that's the situation MS's competitors worry about the most. Can Sony keep up with a comparable system that's half the cost, and how appealling will the Rev be if it does not have a significant price advantage?

That's my guess, anyway.

 

[scooby_dooby]

If I were MS I'd be making sure demand was there to warrant that first, lest an embarassing halt in production was required later. MS is selling all they can ship now, but it's very early days, and we're still seeing early hardcore adopter demand unsatisfied. There'll come a point where MS will have to work a lot harder to sell the system - where endlessly pumping up supply wouldn't necessarily be the smartest choice.

I'd rather risk over supplying the market than miss an opportunity to take an early lead in the HW race.

Also, I don't see how closing a plant or two is embarassing, 99.99% of people would never even hear about it.

I dunno..I just don't think the current supply is cutting it.

 

[Titanio]

I don't agree the most part of the ps2 sales were done when the price came down.

Of course, it's true of any system. But it doesn't mean that if you cut like PS2 you'll be a PS2. Pricing is one element in the mix, and playing the "cheap" card can help and hinder depending on the situation.

I'd rather risk over supplying the market than miss an opportunity to take an early lead in the HW race.

Also, I don't see how closing a plant or two is embarassing, 99.99% of people would never even hear about it.

I dunno..I just don't think the current supply is cutting it.

More than embarassing, it'd be costly. We here, at least - those who follow the industry - would probably hear about it..I remember Nintendo having a very public shutdown of Gamecube production for a while, and it didn't help the image of GC as a successful console.

 

[scooby_dooby]

I don't think a $199 price can ever truly hurt anything. $199 is the sweetspot that almost anyone can justify. And really, this is a non-issue because we can already see how strong the 360 line-up is going to be, so lack of quality titles will surely not be an issue.

A $199 pricepoint for xmas 06 would be a pretty deft move IMO, if they can keep up with supply. However, if you listen to Micheal Pachter, they have commited to becoming profitable in 07, so he doesn't see a pricedrop until 2007.

I don't expect a big price drop, but definately some bundles with free games, GRAW, COD2, PGR3 etc.

 

[Titanio]

I don't expect a big price drop, but definately some bundles with free games, GRAW, COD2, PGR3 etc.

I think that's possibly a little more likely. Trying to up the value proposition rather than lower the absolute pricing.

 

[scooby_dooby]

More than embarassing, it'd be costly. We here, at least - those who follow the industry - would probably hear about it..I remember Nintendo having a very public shutdown of Gamecube production for a while, and it didn't help the image of GC as a successful console.

Ya..but I'm MS! I don't care about silly things like money! No..but seriously I think the worst thing they can do is be supply limited for the next year, they should absolutely sell as many consoles as possible, it's worth the investment to establish that lead.

Only MS knows what their current supply levels are, but if it's under 500k/month I would seriously condsider opening some additional plants.

 

[superguy]

I'm not worried about deman/supply. I'm sure Microsoft is far more aware of the details of that than we could be.

And frankly I'd like to see a lot more software on 360. The first "lull" is over, but now there is a second lull coming I think.

And for the future, if I really look out there's only TWO games I really really want. Gears and Halo 3.

MS needs to get more graphical showcases like Gears in the pipeline.

However I think the great sales of 360 titles are helping as we speak. I think evey publisher is looking at those numbers wishing they had a 360 title right now. So they will get them out fast. Conversly a Ubi with GRAW is raking in the cash. Add in the ten dollar next gen premium.

The top two titles NOD last month were 360. They beat every PS2 title.

 

[Mythos]

I don't think a $199 price can ever truly hurt anything. $199 is the sweetspot that almost anyone can justify. And really, this is a non-issue because we can already see how strong the 360 line-up is going to be, so lack of quality titles will surely not be an issue.

A $199 pricepoint for xmas 06 would be a pretty deft move IMO, if they can keep up with supply. However, if you listen to Micheal Pachter, they have commited to becoming profitable in 07, so he doesn't see a pricedrop until 2007.

I don't expect a big price drop, but definately some bundles with free games, GRAW, COD2, PGR3 etc.

A price cut can hurt if the value percived of the product is diminished. If Sony can make the case that the PS3 is a better value than a X360. Then MS would lose the advantage of a price cut. [Sony has used this stragety]

 

[scooby_dooby]

And for the future, if I really look out there's only TWO games I really really want. Gears and Halo 3.

MS needs to get more graphical showcases like Gears in the pipeline.

They do, Mass Effect, Too Human, Splinter Cell 5, Blue Dragon come to mind. Even lost planet & dead rising look pretty impressive, all exclusive except SC. Also, Forza 2 is definately coming which will be their equivalent to GT5, should be one hell of a graphical showcase.