Sony drops PS2 price to $129.99
- Thread starter Titanio
- Start date
They seemed to be selling very well at the current price, why bother to drop it only $20? I wouldnt think that a $20 difference would draw more people that wouldnt also be interested at $149?
EDIT:Though on second thought, it would pave the way for a $149 PS2/GOW pack, which would be a nice item during the holidays...
EDIT:Though on second thought, it would pave the way for a $149 PS2/GOW pack, which would be a nice item during the holidays...
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I guess at this level, price sensitivity is higher than usual. It is indeed arguable whether they really needed to drop right now, but I guess they're looking to spur sales further, and I guess it's a good excuse for a new marketing push, as described in the release.
I'm wondering if this will be matched by drops in other regions. Such a drop might be more useful elsewhere, also.
I'm wondering if this will be matched by drops in other regions. Such a drop might be more useful elsewhere, also.
Market dynamics are different now than back in the PSOne days.
Now there are 4 solid consoles (GC, PS2, Xbox360, Xbox), with 2 more coming within 6 months. There are also 3 flavors of hand-helds (GBA, DS, PSP) that's vying for attention. All with price ranges overlapping. Cut down XBox 360 sales now and gain an even larger marketshare for PS2.
Franchise titles will easily sell over 3-4 million with such a large user base, GOW2 etc. That keeps good revenue coming in to help mitigate PS3's costs and keep Sony profitable or growing revenue.
Another reason could be to announce it now, so that it doesn't get downplayed by E3 PS3 and PSP announcements, or it doesn't overshadow other announcemnets (unlikely).
Good news for anyone that was waiting on a PS2, or someone who wants a game system for themselves or back-up DVD player.
Speng.
Now there are 4 solid consoles (GC, PS2, Xbox360, Xbox), with 2 more coming within 6 months. There are also 3 flavors of hand-helds (GBA, DS, PSP) that's vying for attention. All with price ranges overlapping. Cut down XBox 360 sales now and gain an even larger marketshare for PS2.
Franchise titles will easily sell over 3-4 million with such a large user base, GOW2 etc. That keeps good revenue coming in to help mitigate PS3's costs and keep Sony profitable or growing revenue.
Another reason could be to announce it now, so that it doesn't get downplayed by E3 PS3 and PSP announcements, or it doesn't overshadow other announcemnets (unlikely).
Good news for anyone that was waiting on a PS2, or someone who wants a game system for themselves or back-up DVD player.
Speng.
Curious move...
If Sony were making a $50 profit on each console, they now need to have an increase of more than 50% to maintain profit levels. If the profit is less, they need to sell even more.
Software sales is obviously the objective of any console maker, but I think any new buyer this late in the cycle is going to be the ultimate thrifty gamer, few purchases and those at GH price or second-hand.
I think this is more to stagger the PS2 further from the newly released $199 'core' PSP package.
If Sony were making a $50 profit on each console, they now need to have an increase of more than 50% to maintain profit levels. If the profit is less, they need to sell even more.
Software sales is obviously the objective of any console maker, but I think any new buyer this late in the cycle is going to be the ultimate thrifty gamer, few purchases and those at GH price or second-hand.
I think this is more to stagger the PS2 further from the newly released $199 'core' PSP package.
GC+Xbox are just about dead, fwiw.speng said:
A $20 pricecut isn't going to stop anything.speng said:
speng said:
Everyone should really stop bringing PS3 into the argument, any companies objective is to make as much profit as possible.speng said:
Yep.speng said:
BenSkywalker
Regular
I don't get the point. $129 just doesn't have the kind of mass market appeal that $99 does. For that matter, $109 is a big difference when trying to market a device(compared to $99).
Closing in on the PS3's "official" announcement I would think they would want to devalue the PS2 as much as possible(from a hardware standpoint) while trying to capitalize on as much market visibility as they can. $129 is a step in the right direction, but why not go to $99 now(unless that is planned to coincide with GOW2)?
Closing in on the PS3's "official" announcement I would think they would want to devalue the PS2 as much as possible(from a hardware standpoint) while trying to capitalize on as much market visibility as they can. $129 is a step in the right direction, but why not go to $99 now(unless that is planned to coincide with GOW2)?
Nicked said:
It's less profit per unit, but I guess the aim is to increase volumes, and profit overall. I'd also guess they were making a more than $50 on each unit, at this stage.
Nicked said:
No, but it should spur greater PS2 sales. I think they want to maintain their leadership, or extend it, as competitive supply might increase.
BenSkywalker
Regular
Normal console price drop is from $149 to $99(Atari 2600, 7800, NES, Sega Master System, SNES, Genesis, TG-16, PS1, Saturn, N64, NGC). I understand what they are doing, I don't quite get why.
Lord Darkblade
Newcomer
If you can sell a product for $30 more and still make people think they are getting a bargain its silly not to. Sales of the PS2 at $149 were still reasonable, so a small drop will or should encourage more sales, they can later drop it more if its not providing the benefits they want however will it does its free profit!
BenSkywalker
Regular
Looking at a single product of course, but when you are dealing with a console it works a little differently. In the situation the PS2 is in right now I would say they want to price to keep them production limited throughout the rest of its lifetime. The royalties kickbacks they can make moving additional hardware should more then compensate them for any reduced margins in the short term. That said, if they are anywhere near their current production limitations then obviously they don't want to create a needless shortage while reducing margins.
mckmas8808
Legend
BenSkywalker said:
Sony has to have a way to make up for the high PS3 losses per system. So an extra $30 per console will help after 2 million worth of sales. That's an extra $60 million dollars.
You can't argue with that.
Ben:
Both N64 and PS1 went to $129.99 around June 1998, and stayed there for about a year.
mckmas:
Firms set prices to maximize income, not to earn enough to cover the cost of operations. If Sony were set to lose ten trillion or earn ten trillion on the PS3 launch the optimal price for PS2 would be exactly the same, either way.
Both N64 and PS1 went to $129.99 around June 1998, and stayed there for about a year.
mckmas:
Firms set prices to maximize income, not to earn enough to cover the cost of operations. If Sony were set to lose ten trillion or earn ten trillion on the PS3 launch the optimal price for PS2 would be exactly the same, either way.
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