Sony may release only one version of PS3?

[-NakedZ-]

Phil Harrison has criticised Microsoft for planning to put two versions of the new Xbox 360 console on the market, claiming the decision will merely "create confusion" for consumers.

Microsoft recently announced that the Xbox 360 Core System, which does not include a hard disk, will retail for GBP 209.99 at launch. For GBP 279.99, consumers will be able to purchase a console with a 20GB hard disk, wireless controller, Xbox Live Silver membership, HD-AV cable and removable faceplate.

Speaking at the European Game Developers' Conference in London today, when asked if Sony might follow in the Redwood giant's footsteps the VP of studios replied: "Unlikely."

"Are there two versions of the Xbox 360 that people want to buy, is my question," he continued. "I don't know."

"This is my personal view, not my corporate view, but when I look at those formats, I think it just confuses the audience. They don't know which one to buy, developers don't know which one to create for, and retailers don't know which one to stock."

"So I think we wouldn't take that strategy. We wouldn't create confusion," he concluded.

However, Harrison did go on to suggest that consumers will have a variety of options to choose from in the longer term.

"There have been various versions and variants of PlayStations in the past - some run through the hardware and some through the software, and that's worked pretty well for us, offering different value propositions to the consumer."

"Exactly what we do with the launch? Too early to tell."

Full article

This may be a move, if true, against MS' recently SKUs announcement. Although it doesn't necessarily suggest HDD as default (depends on how people take it), it could be taken either way I guess. But it's still nice to see that Sony may head toward the "one system to rule em all" approach. But of course, it may comes down to pricing.

- Z

 

[EndR]

It strikes me to see that even Phil Harrison fails to see the "beauty" of 2 SKUs.
For the moment, or at release of 360, it dosen´t makes much sense, but that is for preparation.

The core pack comes to its own right when PS3 is released. Let us say that Sony manages in some magical ways to release the PS3 for 299 dollars. MS matches that price with their Premium pack and the Core pack dips below 200 dollars (or 199 dollars).

This gives MS "bragging rights" about being the only one of next gen (until Nintendo arrives) which has console out for below 200 dollars.

Now, the reason for 2 Skus are simple, there are people out there who cannot afford to shell out 399 or 299 dollars in one "buy". There are people who maybe wants to buy their stuff over a period of time.

For example, you can buy the core pack for 199 dollars and maybe a game. Next month, maybe you go for the hdd or a memory card. Month after that, a controller and so on.

So by having 2 Skus, it gives you flexibility towards consumers. I don´t see the confusion that Phil Harrison sees. If a family comes in and sees a next gen console for 199 dollars, then they will not be confused at all... they will go and buy it without hesitation..

 

[Calavaro]

Having one version is enough. If you can't produce one at the pricepoint that is demanded, you'll have to find a way to work around the problem, not toss more versions out there.
Having kids go out and buy "the cheap one" just to find out they'll have to spend another 80 bux (or so) for the HDD that game X requires, could potentially backfire for all involved.

 

[Carl B]

So by having 2 Skus, it gives you flexibility towards consumers. I don´t see the confusion that Phil Harrison sees. If a family comes in and sees a next gen console for 199 dollars, then they will not be confused at all... they will go and buy it without hesitation..

This must be why the market leader is and continues to be GameCube.

 

[EndR]

This must be why the market leader is and continues to be GameCube.

It is not as simple... The driving factor is still the games, Gamecube don´t have anything good..

Seriously, Software is still the driving factor and 360 will have more "mainstream" games..(Halos, Madden, GTA or Clones of GTA)... the games that NGC failed to have..

So it is not as easy as you can see..

 

[Carl B]

I agree that it's not easy - which is why I think parents going in and seeing a $199 vs a $299 console... well, it's not as easy as that either.

Anyway we'll see hoe it plays out.

As far as PS3 pricing goes though, I just don't see what there is from the 'main' system that could be removed anyway to provide a cheaper SKU. They're not taking the blu-ray player out, for instance.

 

[eDoshin]

It strikes me to see that even Phil Harrison fails to see the "beauty" of 2 SKUs.
For the moment, or at release of 360, it dosen´t makes much sense, but that is for preparation.

The core pack comes to its own right when PS3 is released. Let us say that Sony manages in some magical ways to release the PS3 for 299 dollars. MS matches that price with their Premium pack and the Core pack dips below 200 dollars (or 199 dollars).

This gives MS "bragging rights" about being the only one of next gen (until Nintendo arrives) which has console out for below 200 dollars.

Now, the reason for 2 Skus are simple, there are people out there who cannot afford to shell out 399 or 299 dollars in one "buy". There are people who maybe wants to buy their stuff over a period of time.

For example, you can buy the core pack for 199 dollars and maybe a game. Next month, maybe you go for the hdd or a memory card. Month after that, a controller and so on.

So by having 2 Skus, it gives you flexibility towards consumers. I don´t see the confusion that Phil Harrison sees. If a family comes in and sees a next gen console for 199 dollars, then they will not be confused at all... they will go and buy it without hesitation..

The flip side would be the perception that 360 has a version that is somehow scaled back and requires extensive add-ons to bring it to full feature .. and the higher priced item is somehow a "luxury" item, while PS3 is fully capable right out of the box. The danger would be if consumers believe that the lower priced 360 is an "inferior" product in relation to 360 when in fact its not.

 

[typoEDR]

In response to EndR's comment, wouldn't a price drop that quick just anger some of the early adopters? I know I would be furious if I picked up a 360 only for it to decrease by $100 within a few months.

 

[Sonic]

Microsoft does want to make a profit this generation with Xbox 360. By dropping the price that quickly on the machine could mean it loses billions on hardware all over again. That's not a good idea by any means. A price drop of $50 would be much better but probably still hard to swallow for MS. Not in terms of finances, but in terms of shareholders want to see the second go around turn a profit. MS should try to compete with PS3, bu not with price drops. It needs to do it in marketing, exclusive games, and other ways that don't look like MS is scared to take PS3 head on. But most importantly, MS needs to be concerned with increasing the userbase of Xbox 360 but also turning a profit.

As far as PS3 beign released without 2 SKU's, I find that to be the ideal solution. I was under the impession tht the PS3 would not have a hard drive but that it would be an add on.

 

[Shifty Geezer]

In response to EndR's comment, wouldn't a price drop that quick just anger some of the early adopters? I know I would be furious if I picked up a 360 only for it to decrease by $100 within a few months.

Price drops always anger buyers, but if you get the hardware at a price it's worth to you there's nothing to complain about really. Regards a price it would be marketting suicide. Even a $50 drop at PS3's release would instantly position the console as the inferior technology. PS3 = latest and greatest. XB360 = second best but cheaper. Not a message you want. MS need to make it desirable, worth buying over PS3 because it's a better system. It's the only way to play this game.

 

[Inane_Dork]

When he said it was his personal view, that kinda sounded like he was attacking MS because they are MS but he wants to keep his options open for doing the exact same thing in the future.

 

[talyn99]

Im afraid all this gas pricing nonsense will factor in aroudn x360's launch as well. Specially during the holidays. A $99 PS2, MIGHT outsell it.

 

[Azrael]

Im afraid all this gas pricing nonsense will factor in aroudn x360's launch as well. Specially during the holidays. A $99 PS2, MIGHT outsell it.

It probably would in any case. What is important is that the 360 sells OUT.

 

[Bad_Boy]

Having one version is enough.

QFFT!

 

[RancidLunchmeat]

Huh.

Seems to me this is just yet one more in the long line of "hints" that the PS3 is going to be expensive.

What are they doing? They aren't trying to price their cosole with the Core version, and that I think blows any $299 ideas for the PS3 out of the water. If the PS3 were coming in at $299, the statements would be totally different about how the Premium System was too expensive and full of features that aren't being used.

Instead, they are attacking the Core version.. the lesser version.. the cheaper version. Essentially saying that the Core version is stupid, a rip off, people who buy it are getting robbed, etc..

That's because Sony doesn't want to go to battle with the Core version at $299, which by the way, is exactly why the Core version exists to begin with.

Hell, even after you have Harrison bashing the Core system for fracturing the user base and confusing developers he then has to backtrack himself and say that different variants of the PS3 with different options will no doubt be available... at some point.

So what's his beef? That there's two variants available at launch? Please.

If Sony were planning on releasing a system at $299 like some people here are clearly praying and hoping for, they'd be attacking the Premium Version for being too expensive and having needless hardware (HDD). They wouldn't be attacking the Core system for being inexpensive and incomplete!

 

[Sis]

Having one version is enough. If you can't produce one at the pricepoint that is demanded, you'll have to find a way to work around the problem, not toss more versions out there.
Having kids go out and buy "the cheap one" just to find out they'll have to spend another 80 bux (or so) for the HDD that game X requires, could potentially backfire for all involved.

This is basically the "I'm the center of the world" argument. It requires the presumption that the purchasing habits of every Xbox 360 consumer conforms to how you are. One version is enough for you. The HDD is a necessity for you.

Personally, I would not buy an Xbox 360 core for myself. It makes no sense, for me. But, I know at least two people who might not mind saving 100 bucks because they don't have an Xbox and they don't have broadband.

Maybe--just maybe--Microsoft has much more consumer research into this than you do and that they understand the market better than you do. Or, perhaps I'm wrong and the whole purpose for a 2 SKU approach is really just some goofy marketing ploy to get under $300 dollars in the states.

.Sis

 

[Sovere]

Or, perhaps I'm wrong and the whole purpose for a 2 SKU approach is really just some goofy marketing ploy to get under $300 dollars in the states.

Well that's what I honestly think.

 

[Johnny_Physics]

As far as PS3 beign released without 2 SKU's, I find that to be the ideal solution. I was under the impession tht the PS3 would not have a hard drive but that it would be an add on.

1 SKU probably just means that the harddrive won't come bundled with the machine in any form and that it will only be available as a separate upgrade/purchase. At least that's what I see as the obvious solution.

 

[EndR]

In response to EndR's comment, wouldn't a price drop that quick just anger some of the early adopters? I know I would be furious if I picked up a 360 only for it to decrease by $100 within a few months.

I don´t think that this would be any problem. Hardcore-gamers are the ones that are the initial buyers anyway and they pay whatever it costs for the machine with some games. Early adopters usually don´t think about price that much, they are happy being "early adopters". I mean, you don´t have to buy the machine at release, everybody knows that prices will fall so if you are that price sensitive, why don´t you wait? That is the "price" of being an "early adopter".

Now, 2 Skus, at least for me, makes sense when the competitors are in market. Now, when MS will have the holiday for their own (being the only next gen machine on market), 2 Skus have maybe not so much meaning. MS themselves have said that the majority of the initial packages will be premium packs anyway.


Sonic wrote:

Microsoft does want to make a profit this generation with Xbox 360. By dropping the price that quickly on the machine could mean it loses billions on hardware all over again. That's not a good idea by any means. A price drop of $50 would be much better but probably still hard to swallow for MS. Not in terms of finances, but in terms of shareholders want to see the second go around turn a profit. MS should try to compete with PS3, bu not with price drops. It needs to do it in marketing, exclusive games, and other ways that don't look like MS is scared to take PS3 head on. But most importantly, MS needs to be concerned with increasing the userbase of Xbox 360 but also turning a profit.

The core pack allows just this. If you look at the margins for a wireless controller, a hdd and all the stuff that MS packs in the premium pack, all the extra stuff for 100 dollars. With the Core pack, only the hdd cost 99 dollars, meaning that the margins are higher if people buy the hdd as an add-on, then with the premium pack. ONe thing that is evident is that MS has put in lots of efforts on peripherals and it seems that peripherals can (and will) become a interesting channel of income for MS.

Not only that but also, MS has the userbase and the "established brandname" so people will buy Xbox360 and will still buy games, more now that it is established than before, with Xbox.

The core pack lets MS gain "more" money from peripherals and the more core packs they sell, the more add on such as hdds, controllers, remotes etc etc they will sell at better margins.

And not only that, now you can go in and buy a next gen machine for 199 dollars that is "as good as" PS3 and have the same types of games (The Maddens, Halos, GTAs-ish) etc but you don´t have to shell out more than 199 dollars to get one.

People that don´t have so much money, will not see a core pack for 199 dollars as something "inferior", but maybe more like an opportunity to go next gen without it costing too much and with time, you could expand your system with memory cards, controllers etc... the important thing is that it lets you buy stuff under a period of time and not everything right now..

 

[Inane_Dork]

Im afraid all this gas pricing nonsense will factor in aroudn x360's launch as well. Specially during the holidays. A $99 PS2, MIGHT outsell it.

I'm pretty sure Sony confirmed there would be no PS2 price drops this year.