The Core doesnt sell because its a waste of time. The 20GB PS3 was delibertately supply constrained - I thought that was common knowledge. The 60GB PS3 is the bread and butter, and is now cheaper than it was previously and will constitute the majority of PS3 sales for the next couple of months.
Sony: PlayStation 3 price drop
- Thread starter Titanio
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The Core doesnt sell because its a waste of time. The 20GB PS3 was delibertately supply constrained - I thought that was common knowledge. The 60GB PS3 is the bread and butter, and is now cheaper than it was previously and will constitute the majority of PS3 sales for the next couple of months.
Sorry, but how is that more realistic? We've seen several retailers say this, and we know that so far consumers have voted with their wallet. Yes, we also know that Sony makes a little bit more money off the 60GB version / loses a little less money, depending on where in the timeline you are. But is that the same for the 360's Core? And is that difference large enough to offset a larger install base that buys more games and spends more online?
Gradthrawn
Veteran
I see. But, if they were willing to take the hit on the 20GB SKU before, this Holliday season would seem to be a damn good reason to take the hit again for 3 - 4 months. They're doing it for Japan as we speak (and have been since launch). A limited re-introduction of the 20GB model for $400. That pricepoint for entry, along with the Holliday lineup of games, would seem to be one of the best ways to move a lot of units. Short term loss for long term gain, no? Unless the short term loss is too great.
You've just contradicted yourself, and then answered your own question from your previous post.
The 80GB PS3 isnt good value, but its there for those 5% of customers who have to have the best version of whatever they buy. I doubt it'll make up the majority of PS3 sales when its released in August.
I think a lot of people are missing the point on the 20GB and why it was killed.
First off, Sony lost a lot of money on the 20GB, and producing more of those would have bled them more than producing a lot of 60GB units, and that makes sense.
Then, I think when Sony noticed that PS3's in general were not selling, it was in their best interest to stop shipping 20GB PS3's completely, and shift all of the remaining units to Japan.
This affords them more room to bleed less in area's where PS3's are selling more (i.e. the US and EU). Thus, bleeding less will give them more room to drop the price as soon as possible. The 80GB SKU, which as of now we only know part of the details (inclusion of Motorstorm and 80GB HDD, no one knows packaged in goods yet).
So, if the 80GB SKU is viewed as an 'elite' SKU, and Sony packages in say, a Blu-Ray remote and *possibly* a headset, or even just the headset, would it be viewed as a good value then?
Right now, Sony's concerns are to minimize losses, and they are hoping that those who intended to buy a 60GB at $599, will now buy an 80GB at $599 along with Motorstorm (and hopefully other packaged extras).
This is more of a business move and price reshuffling, than it is a price drop.
First off, Sony lost a lot of money on the 20GB, and producing more of those would have bled them more than producing a lot of 60GB units, and that makes sense.
Then, I think when Sony noticed that PS3's in general were not selling, it was in their best interest to stop shipping 20GB PS3's completely, and shift all of the remaining units to Japan.
This affords them more room to bleed less in area's where PS3's are selling more (i.e. the US and EU). Thus, bleeding less will give them more room to drop the price as soon as possible. The 80GB SKU, which as of now we only know part of the details (inclusion of Motorstorm and 80GB HDD, no one knows packaged in goods yet).
So, if the 80GB SKU is viewed as an 'elite' SKU, and Sony packages in say, a Blu-Ray remote and *possibly* a headset, or even just the headset, would it be viewed as a good value then?
Right now, Sony's concerns are to minimize losses, and they are hoping that those who intended to buy a 60GB at $599, will now buy an 80GB at $599 along with Motorstorm (and hopefully other packaged extras).
This is more of a business move and price reshuffling, than it is a price drop.
60Gb PS3 is a good and proven value. I don't think gamers at large will compare it to the 360 Core pack because the latter is gimped (specifically no hard drive). The 60Gb and 80Gb differs only in 20Gb disk space and is every bit as functional. The 60Gb is also more strategic compared to 20Gb and Core Pack: It has built-in WiFi. So people don't have to pull cable in their living room for Internet connectivity. Sony may have found out that a higher percentage of 60Gb SKU go online (so that they can jump start and sustain the online business).
As for why 599, there are many possibilities. My wild guesses are:
* This is likely half the announcement
* 599 may be needed to meet their margin targets (The higher priced SKU help to fill in losses from the lower end SKUs -- The market will ultimately decide what the average margin is). 599 may be needed to harmonize with standalone Blu-ray player pricing. It may also imply that Sony is targeting the higher tier of the gamers' market (for now). Advertisers should be keen to market their portfolio to people in this segment (i.e., The 599 SKU is designed to fish/auto-select these gamers from the population).
* 80Gb PS3 is needed to maintain their logistics and pricing dynamics. Say if they move on to 100Gb, the 80Gb will fall by US$100... and any 60Gb left will likely fall by another sum (Someone should check how much they are selling 20Gb PS3 now). Over time, we should see PS3 at various price points on the market.
Like I said, wild guesses since I don't have any internal numbers from Sony.
As for why 599, there are many possibilities. My wild guesses are:
* This is likely half the announcement
* 599 may be needed to meet their margin targets (The higher priced SKU help to fill in losses from the lower end SKUs -- The market will ultimately decide what the average margin is). 599 may be needed to harmonize with standalone Blu-ray player pricing. It may also imply that Sony is targeting the higher tier of the gamers' market (for now). Advertisers should be keen to market their portfolio to people in this segment (i.e., The 599 SKU is designed to fish/auto-select these gamers from the population).
* 80Gb PS3 is needed to maintain their logistics and pricing dynamics. Say if they move on to 100Gb, the 80Gb will fall by US$100... and any 60Gb left will likely fall by another sum (Someone should check how much they are selling 20Gb PS3 now). Over time, we should see PS3 at various price points on the market.
Like I said, wild guesses since I don't have any internal numbers from Sony.
I think the whiplash we're seeing in terms of 20GB SKU, no 20GB SKU, etc etc... is almost entirely due to management tensions during the Kutaragi era vs the post-Kutaragi era. I certainly don't see their plan here as being to move consoles at any cost... rather a measured move to reclaim the $500 pricepoint with an action benefiting the consumer, retail, and that of their own internal supply controls.
Maybe the 80GB will include the shockaxis
Will this be specific only to the new 80GB model?, and can this be somehow retrofitted to work with older models? At least an option to Upgrade the orginal controllers?
He wasn't serious. A new controller would be launched completely separately from any specific model and probably bundled with a game / games that supports it specifically.
I expect that they'll phase out the 60GB, that the 80GB will turn into your $499 sku with Motorstorm taken out. The 80GB bundle is limited ediition, but I think a bundleless 80GB at 499 will replace the 60GB. I think bundling it with Motorstorm at 599 is a way to soothe those who buy it at that price, so they don't feel too badly about it when it drops.
How quickly all that happens, I guess depends on how quickly the 60GB sells since they do have some inventory to burn through, but I'd expect at least by Xmas.
inefficient
Veteran
Well the did need a way to transition the US model from the HW EE to the fully software PS2 BC model. This 80GB SKU seems to be it.
Though I think that by the time the 80GB model drops to $499, there will be a $399 model announced. I would not be at all surprised if this takes place just 6 months from now.
Though I think that by the time the 80GB model drops to $499, there will be a $399 model announced. I would not be at all surprised if this takes place just 6 months from now.
As far as I know, the HDD is the only difference, I'm hoping there are extras packaged in, such as HDMI, Component, Headset, maybe a Blu-Ray remote, who knows. It needs more though.
And honestly, i don't see them phasing out the 60GB model, not anytime soon at least. If they did that, it would happen around the time MGS4 dropped.
And honestly, i don't see them phasing out the 60GB model, not anytime soon at least. If they did that, it would happen around the time MGS4 dropped.
They were restricted functionality though. Coupled with early adopters who read up on these things, they made no sense. A year later or so, the early adopters have adopted early, and now MS and Sony are trying to reach Joe Public. At least the medium core sections of Mr. Public. This is when we're expecting Core to sell (as you've been an advocate yourself, with the price drop) and where the bottom end model matters. Is the 20GB version was still around, I expect that to appeal moreso relative to the expensive models too.
scooby_dooby
Legend
It's more realistic for many reasons, a couple:
1) Sony was bleeding money, their losses were high enough on the 60gb model, without incurring additional losses through the 20gb model.
2) Consumers have rejected the $599 pricepoint, there is next to no demand for that model. The price is the obvious barrier to entry, therefore consumer demand would be higher for a cheaper model.
I simply don't buy it. There sure as hell was and is demand for a 20gb PS3 for $100 less, espcecially when you can upgrade the HDD with your own off the shelf model.
10 million 360 users are using their 20gb HDD just fine, and 100million PS2 owners had nothing more than memorycards last gen. Suddenly, 90% of these people 'need' a 60 gb HDD? As if!
The only possibility I can reasonably entertain is that the initial wave of hardcore purchasers were not interested in the 20gb model....that lasted what 4 weeks? And then sales stepped off a cliff, at that point there must certainly have been relatively strong demand for the cheaper model, but it was nowhere to be found.
scooby_dooby
Legend
I still don't agree with the logic.
A consumers is gonna realize the $599 package is not a great deal, but they will still look at $499 and say "Holy smokes, that's a lot of green for a console", it's not suddenly gonna make it seem like a better deal, or convince them that $500 is in their price range. Especially when the system actually did launch at $499 in the first place.
I think it's sort of backwards thinking.
scooby_dooby
Legend
Agreed. I was simply illustrating the point that the consumer is savvy enough to recognize where the best pricepoint/deal is, and the introduction of an overpriced bundle is not going to fool anyone.
But yes, the $100 pricedrop is a good move, and as I said, even though the $600 sku muddies the waters a little, I doubt the consumer will have any trouble seeing that the $499 sku is the best choice.
Good news on the price drop but i don't understand why Sony would reposition their premium SKU with a smaller HD than the 360 Elite. You know how Megabyte, Gigabyte, Megapixel, Gigahertz-driven consumers are and I can't help but feel a lot of them are going to see the Elite having a bigger hard drive to be at LEAST as valuable as BR movie playback on the PS3.
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