Sony: PlayStation 3 price drop

[Shifty Geezer]

But there is software on the horizon ...

For the Japanese market? Maybe there's lots there waiting for the upcoming titles on PS3, but the way that market is looking, it seems a different tack is needed, which I haven't heard Sony talking about yet (though doubtless among their unknown titles they've things in the works). If Sony want to keep SE on board, they want a substantial install base. And no SE would surely toll the death knell for PS3 in Japan, wouldn't it?

 

[blakjedi]

from my understanding talking to several retail folks about the price cut... this price is ephemeral. It will only last as long as there are 60 GB PS3s in the channel. Once the inventory is clear the price goes back up to the normal price for the 80GB sku. I'm hoping they are wrong.

 

[Shifty Geezer]

That's the theory. Although if Sony see sales high at $500, what benefit is there to putting the price back up where no-one wants to buy it? Especially after the taste of the lower price? They have to keep the price disparity to clear the 60 GB stock, but they'd be crazy to keep the price up for any length of time after that. Worldwide too. They need a price cut, not bundles. It's on the cards. It's happening before Christmas. They've had their component reductions. The company as a whole is doing well. Letting PS3 remain it it's current price would lose a significant amount of support. They can afford a price drop. It'd be beneficial to them in the long run. So what reason is there not to have one?!!

 

[dobwal]

For the Japanese market? Maybe there's lots there waiting for the upcoming titles on PS3, but the way that market is looking, it seems a different tack is needed, which I haven't heard Sony talking about yet (though doubtless among their unknown titles they've things in the works). If Sony want to keep SE on board, they want a substantial install base. And no SE would surely toll the death knell for PS3 in Japan, wouldn't it?

Probably not. I seriously doubt SE is the key to the PS3 success. FFXIII is going to be on the PS3 and even if it goes multi-plat, its still going to appear on the PS3 first. PS3 success is dependent on successful receptions of Sony's first and second party games.

 

[Gradthrawn]

For the Japanese market? Maybe there's lots there waiting for the upcoming titles on PS3, but the way that market is looking, it seems a different tack is needed, which I haven't heard Sony talking about yet (though doubtless among their unknown titles they've things in the works). If Sony want to keep SE on board, they want a substantial install base. And no SE would surely toll the death knell for PS3 in Japan, wouldn't it?

Looks like there's finally some games coming out for Japan. I'm not sure they're on the horizon, but they've at least been announced (at the recent Playstation event in Tokyo).

announcements at PlayStation Premier event so far (thanks to totobeni and byoushinn for some of these)

* Nobi Nobi Boy , namco-bandai: from the makers of Katamari Damaci
* Buu Buu Cocorecch , SCEJ : LocoRoco PS3
* Shin Sangoku Musou 5 (Dynasty Warriors 6) , Koei / exclusive
* Gran Turismo 5 Prologue ,SCEJ
* Disgaea 3 , nippon ichi
* Valkyrie of the Battlefield , Sega
* White Knight Story screens , SCEJ , level-5
* Tekken 6 PS3 screens , namco-bandai
* Soul Calibur 4 PS3 screens , namco-bandai
* Toy Home , ???
* New PSP colors
* Go!Sports Ski for PSN game
* Toshiro Nagoshi talk about a PS3 game for 2008 ( maybe Yakuza 3 )Valkyrie of the Battlefield is a game from Sakura Taisen team
* PSP slim " Crisis Core: Final Fantasy VII " edition
* Metal Gear Solid Portable Ops (PSP) expansion pack
* PSP slim digital tv tuner ( 1-seg)
* Railfan 2 announced* MGS4 gameplay was shown
* New ff13, ff13versus footage was shown (we'll see it at tgs)
* A release date was announced for the 'sound novel' game Imabikisou (10/25)
* Nagoshi said there are two games in development for the ps3 - One from the team of Yakuza (officially announced 14th september) Second game will be unveiled in the near future.
*new FFXIII screen shot

 

[Todd33]

I think that hot Shot Golf 5 just came out and sold like 150,000 on the first day. I guess it's big in Japan, they even have a bundle.

 

[cthellis42]

It wouldn't hurt! The risk is Sony losing more money on hardware. But if the hardware doesn't sell, they don't lose it. If it does sell, they're building essential user base. I don't think price will swing it much in Japan, as it's more software and market changes that are the limit. If there's no software on the horizon though, price is the only tactic Sony can use.

It could. They cost lower in comparison in Japan AND have the lower SKU commonly available... I don't see BR emphasis making a lower price start selling units, nor do I see what they already have really driving things along with a price cut...

It's going to be getting out the games that Japan really wants that the Wii doesn't have that will start moving PS3's in comparison: Final Fantasy, Gran Turismo, Metal Gear... There's lots more coming down the pipe, too, but they really need one of the huge sellers to open things up, and the rest will flesh things out. If they can drive the PSP/PS3 connection and show off the PSN (in ways other than "buying games") that makes it stand out against the Wii/DS, then so much the better. A price drop to go along WITH them would be OK too, but right now I don't think it will make anywhere near the difference that getting out ANY of those big games would.

 

[Shifty Geezer]

It could. They cost lower in comparison in Japan AND have the lower SKU commonly available... I don't see BR emphasis making a lower price start selling units, nor do I see what they already have really driving things along with a price cut...

It's going to be getting out the games that Japan really wants.

Games are going to take time. Sony can't do anything about that now. They could introduce a price cut now and sell the machine to those who would like what's available now and in the short-term future, even if not a big audience. What would be the negative effect of that?

 

[bomlat]

Games are going to take time. Sony can't do anything about that now. They could introduce a price cut now and sell the machine to those who would like what's available now and in the short-term future, even if not a big audience. What would be the negative effect of that?

the problem not about 1-2-10 game,but the production line that make the games.
They have to make 6-10 game on every week on every terrítory,otherwise the buyers will not see a reason to by the system.
This is the main point.Ten good dame can not sell a system.

 

[cthellis42]

Games are going to take time. Sony can't do anything about that now. They could introduce a price cut now and sell the machine to those who would like what's available now and in the short-term future, even if not a big audience. What would be the negative effect of that?

Less money. Little momentum. Nothing to play it off.

I was skeptical of the price cut in the US as well, but then it was already more expensive and they appear to be using it to shift old stock and roll in the new. (And it's still under question if they'll handle it well, or if they'll lose momentum by going right back up to $600 for too long.) And $500 was already one of the INITIAL price points out here, they just tossed that SKU.

What's the incentive to bump things, say, 10% now, as opposed to bringing in more from the sales they DO get, and timing a price drop along with a real release? They're already getting a boost from the Minna no Golf bundle (in both 20 and 60GB varieties), but I don't think they're going to get real momentum until one of the big titles goes--certainly nothing to distract anyone from the Wii.

Later on, the momentum can be larger, the production cost less, and... well... you'll have more pistons firing at the same time. I'd rather shift into a higher gear faster than get a smaller gain and risk stalling.

Not to mention a "fairly-soon" price drop would kind of annoy the people who DO pick up the MnG bundle right now, unless they're going to start handing out rebates.

Technically, it might not have been bad to drop it somewhat along WITH the MnG bundle's announcement (and a lull in Wii releases), but since they didn't... (or at least "not by much"--there might have been some sway, I suppose) I can't see a global drop coming in the near vicinity. They can't wait for one of the main three franchises, since they're not apt to be out in time for the holidays, but I don't see them dropping yet.

Yes, they usually drop price during the summer. Not so much "within the first year." They're a bit off-kilter at the moment, and have to choose their timing well.

 

[Shifty Geezer]

Less money. Little momentum. Nothing to play it off.

What's the incentive to bump things, say, 10% now, as opposed to bringing in more from the sales they DO get.

Well the question is what increase in sales they get. If it's only 10%, it's possibly not worth it. If it's 50-100% more, it will be. At this point in time, sales isn't the only factor. There's exposure too. Get PS3's out there, get people seeing them and seeing the different functions especially. A kiosk in a gaming centre isn't going to communicate all its functions as a PS3 round a friend's house will. Generating interest in the box is important for when top titles do hit, it's 'one more reason' to get a PS3, rather than 'the only reason'. Stronger sales is also important for convincing devs it's a viable platform. Sony saving a bit of money on the current sales may be nice for their balance sheets, but it's not the best choice for the 3rd parties out there.

The only negative I see is if the price is dropped but has no effect on sales, which would signal to the devs it's a dead end. For that reason, perhaps waiting for a stronger sales pitch is important, so the price drop is supported by more reasons to buy, and makes a real difference to sales.

 

[LunchBox]

Quite a good deal coz it's 100 bucks off and I saw an AD in bestbuy where you can also get 5 free BR movies.

 

[quest55720]

It could. They cost lower in comparison in Japan AND have the lower SKU commonly available... I don't see BR emphasis making a lower price start selling units, nor do I see what they already have really driving things along with a price cut...

It's going to be getting out the games that Japan really wants that the Wii doesn't have that will start moving PS3's in comparison: Final Fantasy, Gran Turismo, Metal Gear... There's lots more coming down the pipe, too, but they really need one of the huge sellers to open things up, and the rest will flesh things out. If they can drive the PSP/PS3 connection and show off the PSN (in ways other than "buying games") that makes it stand out against the Wii/DS, then so much the better. A price drop to go along WITH them would be OK too, but right now I don't think it will make anywhere near the difference that getting out ANY of those big games would.

The PS2 had crap for games for a long time and it still sold in japan. The GC eventually got big games out in japan but it did little good. I could be wrong but is seems the japanese get behind a product and don't look back. Like the DS once it started to build momentum it just took off. I think the PS3 might be a lot like the GC in japan. A big title hits sales spike for a few weeks then right back to bad.

I am not sure anything sony can do about japan. I think the taste of the market have just changed they no longer want traditional console games. The writing has been on the wall for a while. Unless tastes change or sony can pump out several games a week they are pretty much dead in japan. Nintendo is reaping the rewards for putting out 2 products that are an exact match for the new tastes of japanese gamers.

 

[AntShaw]

Quite a good deal coz it's 100 bucks off and I saw an AD in bestbuy where you can also get 5 free BR movies.

I keep seeing people using this 5 movie deal as a selling point. Is it really?

You get 5 movies, but you only get to chose out of 'categories' with specific, not neccesarily good movies.

http://i.i.com.com/cnwk.1d/pdf/rebates/13590.pdf

For what it's worth HD DVD has the same exact promo going on, with the same stipulation and equally craptastic selection.

I just find it hard to believe that this is pushing any type of player sales in either camp.

With that said, I hope the $499 US price point will stay once the inventory dries up! Per Sony, if they aren't going to make any $$ on them until 03/08, I can't see any other price reduction in the near future.

 

[Jov]

With that said, I hope the $499 US price point will stay once the inventory dries up! Per Sony, if they aren't going to make any $$ on them until 03/08, I can't see any other price reduction in the near future.

Sony would be doing very very well if they can clear out the 60GB SKU quick enough before considering to move the 80GB SKU to $499. That would put it about (or close) to 6 million units in the hands of gamers WW, which would be a very convincing for them to move the 80GB SKU at $499 to keep the momentum.

 

[Arwin]

It probably doesn't mean too much, but it's still at no. 2 in Amazon's list (this time behind the Wii ):

http://www.amazon.com/gp/bestsellers/videogames/ref=pd_dp_ts_vg_1/102-2419145-6589769

It hasn't been out of the top 2 since the price-drop.

 

[one]

http://www.ps3fanboy.com/2007/08/29/sony-has-run-out-of-60gb-ps3s-get-one-while-you-can/

Sony has run out of 60GB PS3s -- get one while you can

Posted Aug 29th 2007 7:00PM by Colin Torretta

Well we knew it wouldn't last forever. Sony has just confirmed with GamePro that they have run out of 60GB PS3s in their warehouses -- the only 60GB units left are ones that are in the retail channel now. This means that if you want a $499 PS3 with full backwards compatibility, you better hit up the shops soon.

 

[Acert93]

So the E3 announcement was just clearing inventory, so the 60GB/$499 units are limited in availability, at which point after their 60GB/$499 units are gone there will only be 80GB/$599 units available? Is that correct?

I thought the point of the E3 announcement was Sony had dropped the price of the PS3 to a more accessible $499. So as of right now the E3 announcement was a limited time price drop with future price drops pending?

 

[AlNom]

So the E3 announcement was just clearing inventory, so the 60GB/$499 units are limited in availability, at which point after their 60GB/$499 units are gone there will only be 80GB/$599 units available? Is that correct?

I thought the point of the E3 announcement was Sony had dropped the price of the PS3 to a more accessible $499. So as of right now the E3 announcement was a limited time price drop with future price drops pending?

Yup, got it in one

 

[Shifty Geezer]

Which is something i was thinking about this morning. We haven't yet had a PS3 price-drop, and Sony aren't announcing one. They're content to sit back on the sales on the moment. Meanwhile XB360 had a cut and has gained a little momentum. If PS3 sales drop back to where they were prior to the short-lived sale price, it's not going to look good for the platform. The cost to produce the hardware has dropped considerably, we know. So why the passive pricing strategy?