Sony: PlayStation 3 price drop

[RobertR1]

isnt that the same doherty that said bd+ wont be breached for 10 years?

yep, same genius.

 

[patsu]

That's mainly the case due to how pitiful the PS3 libraby has been to date. They're "in demand" by default. Now that Liar, Warhawk and other actually desireables games are on their way out, the focus and anticipation will shift towards such titles.

Not really. MotorStorm and Resistance still have no replacements among the new titles. In fact, I bought MotorStorm just 2 weeks ago. Unless there is a MotorStorm 2 on the shelf, MotorStorm is still a flagship title for offroad racing.

After thinking more about this, I have to wonder about the temporary price drop. It seems very much out of desperation. The "we need to ship this many units by then!" coming back to bite them.

What does that mean?

In any volume based business, you have to produce a certain amount of units to keep the train moving even if you're taking losses. So with 60GB US units being produced and stock piling with low sales for months now, they had no choice but to dump their inventory. The 60GB SKU is now being replaced by a 80GB sku for the same price. However without the EE hardware unit and likely some other cost savings, the loss per unit is less than selling the existing 60GB at $599. However, selling even a revised 60GB unit at $499 continously puts the loss per unit above the margin set by the old 60GB SKU being that was being sold for $599. Thus you price drop is temporary only to clear inventory.

Mark down is a common technique for depleting old models. You don't have to be desparate to do it (especially when PS3 is selling briskly now).

I like Reeves' interview. In US, it's Tretton's call. So we will have to see what happens when 60Gb depletes.

 

[one]

Also I can't believe some people believe all of what Reeves say, it's unlikely they can clear all 60GB PS3s in the inventory in 3 weeks. He basically says "60GB is soon to disappear, better be quick to grab them at $499!!!", just another marketing speech.

 

[Evildeus]

Also I can't believe some people believe all of what Reeves say, it's unlikely they can clear all 60GB PS3s in the inventory in 3 weeks. He basically says "60GB is soon to disappear, better be quick to grab them at $499!!!", just another marketing speech.

You are completly right on that

 

[assen]

especially when PS3 is selling briskly now

Excuse me, in what alternate reality of yours is the PS3 selling "briskly"? It might edge slighltly in front of 360 in a handful of European countries, and 2-3x in Japan, but in either case the sales of both are miniscule.

 

[patsu]

Jack Tretton mentioned that PS3 US sales is 90% higher now. There are reports of PS3 sold out by forumites, and also: http://www.amazon.com/gp/bestseller...5&pf_rd_t=2101&pf_rd_p=221591101&pf_rd_i=home. No idea how long this will sustain.

 

[.Melchiah.]

By the way, you do have some level of choice in games in the U.K. - it's not just Motorstorm and Resistance, you can also pick Ridge Racer 7, Formula 1 or eh Genji.

It would be wonderful if I could choose MotorStorm and Ridge Racer 7. Do you happen to know whether that's possible?

 

[Evildeus]

Well 5 days at least, not bad i would say. From my point of wiew, i thought it wouldn't last more than 1 week. Let see next tuesday...

 

[DJ12]

I don't think many people will be upset with Motorstorm and Resistance at any rate, they are by far the best games you can buy at the minute.

 

[Vic]

Excuse me, in what alternate reality of yours is the PS3 selling "briskly"? It might edge slighltly in front of 360 in a handful of European countries, and 2-3x in Japan, but in either case the sales of both are miniscule.

But how do you know that?

From what I understand its been outselling 360 throughout Europe, and is#1 on Amazon.com since the pricecut whereas 360 is much lower in the ranking.

Europe could have done with a price-cut, but in terms of the US the 360 has the better games currently, but the PS3 offers better value, especially comparerd to the Elite SKU.

 

[tongue_of_colicab]

x360 hasnt been selling good in Europe so that doesnt say alot The fact is that both the ps3 and x360 arnt selling at the pace MS and certainly sony expected. Even if sales are up 90% that still is only 200k a month, that is less than 360? and the majority is probably kinda like the launch rush and once the 60gb is gone it will be just the same again as you still have the 600dollar price tag.

 

[one]

http://uk.reuters.com/article/wtMostRead/idUKN1229896920070712

GAMES EXPO-INTERVIEW-Capcom: Sony likely to cut PS3 price again
Thu Jul 12, 2007 7:25AM BST

SANTA MONICA, Calif., July 11 (Reuters) - Sony Corp (6758.T: Quote, Profile, Research) is likely to lower the PlayStation 3 price again by the year-end following this week's $100 cut, a senior executive at Japanese game software maker Capcom Co. Ltd. (9697.T: Quote, Profile, Research) said. "The number of PS2 users is still growing and a shift to the PS3 is on the back burner," Capcom Chief Financial Officer Kazuhiko Abe told Reuters in an interview on Wednesday.

"But, the price has been cut once and it is likely to be cut again towards the end of the year. I expect the (PS3's) installed base to grow gradually."

Sony on Monday cut the price of the PS3 to $500 in the United States in a move to breathe life into sluggish demand.

 

[Archgamer]

The quote where Reeves was saying that the 60 gig will sell out by end of July and no more coming is just PR talk to help push the sales even furthur. He's giving the consumer the thought that if they don't buy the 499 model now they'll have to paid more for the 80 gig. There is no way the 60 gig model will run out that soon. 60 gig models have been overstock by probably 2.5 million in the US. There is no way 2.5 million is gone in a month. That's ridiculous.

I am expecting by holiday that the 80 gig version will be at 499 without the game. There is just no reason to have it at 599 since Sony should be convince that a system at that price won't sell. 60 gigs should be depleted by then.

 

[tongue_of_colicab]

Well as sony says they will be the clear winner in March 2008

PlayStation 3, you will see, will be far and away the winner when you look at it by March '08. They really, really will,

Source: GamesIndustry.biz

They better drop it in price alot, and quick as they need to be selling way over a million a month from now if they want to exceed the wii and x360 by March.

 

[Cheezdoodles]

Did sony actually say that? I dont believe it.

PlayStation 3, you will see, will be far and away the winner when you look at it by March '08. They really, really will,

Source: GamesIndustry.biz

If they did, they need a serious reality check.

They are trailing right now with what? 7 million or so consoles? That means selling 875000 consoles per month MORE than the competition. This for a console who has been averaging 200k\month worldwide.

 

[Faeton73]

Bzzzt. Local stores have done exactly that.

If there are local stores selling the PS3 for 499€, they must be doing it on their own

Anyway, here's the official presss release for the 599€ european bundle

http://www.scee.presscentre.com/Content/Detail.asp?ReleaseID=4387&NewsAreaID=2

 

[Mr. Domino]

Did sony actually say that? I dont believe it.

Maybe he is speaking of sales per month rather than the overal sales number worldwide?

 

[pipo]

Did sony actually say that? I dont believe it.

http://forum.beyond3d.com/showpost.php?p=1032840&postcount=316

If there are local stores selling the PS3 for 499€, they must be doing it on their own

Yup.

 

[Vic]

Amazon are selling the PS3 for £425, plus 3 games, (VF5 being one of them) 2 controllers and a HDMI cable. Alternatively, for £400 you can have the above package but with any 2 games.

Best deal I've seen so far.

 

[Deleted member 7537]

Vgcharts.org

Console Weekly Total
DS 97,404 13,204,775
Wii 77,394 3,717,046
PSP 50,890 8,678,650
PS2 43,406 44,353,568
PS3 41,005 1,624,358
360 35,084 6,537,592
GBA 14,451 40,680,595

http://www.vgchartz.com/aweekly.php