The new PS3 sales pitch: Better gaming, better technology, better value

[EpicZero]

I must say this is quite a good piece of PR work, Sony should hire you.
But honestly, it's going to take a lot more to convince people to purchase the PS3 at those high prices. I really don't know why Sony announced the price, it was one of the largest blunders I think Sony has yet to make. For a company that is praised for their excellence in marketing, their conference sure made you doubt that. If a person who has bought every PlayStation device at launch so far is doubting whether or not to even get a PS3 for a looong time, you know their PR has failed. (Which is why I wonder how or if they are going to try to overcome the E3 conference. Price Reduction before launch? Miracles may happen.) Your arguments do make sense, however, this is really only beneficial to a very small minority. The vast gaming population is not really interested in Linux, or the other buzz words Sony can use.

 

[mckmas8808]

Sony very well could dominate E3 07 but until then their machine is not a very desirable gaming console especially at the price presented. They're currently losing the price and games library war.

This is just not true. Maybe to you it's not desirable, but to many others it will be.

 

[Titanio]

Slightly OT, I don't really have the time or energy to engage in this discussion more fully, but here's one small gesture that may go a long way for some people in overcoming the price..

Sony may offer discounts on TV/PS3 purchases

He also said that Sony is working on retail promotions that will couple PS3 consoles and Sony's HDTVs later in the year, which “could include discounts,â€￾ but there are no details on the plan at this time.

They already do this with some other products - where I am, typical discounts range from €150 to €300. So if you're looking for a TV this year, you may be able to pick up a PS3 quite cheaply alongside it..

 

[cthellis42]

I must say this is quite a good piece of PR work, Sony should hire you.
But honestly, it's going to take a lot more to convince people to purchase the PS3 at those high prices. I really don't know why Sony announced the price, it was one of the largest blunders I think Sony has yet to make.

It would be worse to announce that high price later, IMHO. If you think people are reacting poorly to it now, just what do you think they'd say if they felt they were being ambushed with it a month before launch?

What Sony is missing right now is the compelling message and follow-up. They have time to fill it in, especially since the general populace isn't seeing anything right now, so they're mainly letting it foment in the gamer society right now while they're crafting a proper advertising blitz.

At least, one can hope. And hope they do it well. It's not a simple message to convey...

 

[Nesh]

This is just not true. Maybe to you it's not desirable, but to many others it will be.

Not just will. It already is desirable. Its just that the price hurts despite that.

 

[Crossbar]

I think it's pretty obvious that Sony will push the PS3 into the same space as the Windows Media Center.

Phil Harrison: "The 60 gig capacity is not only to download but to archive locally. The 60 gig solution will be attractive to users who want to PS3 as their primary music players, like me. I will put my entire music collection onto my PlayStation 3. I will archive all of my photos onto my PlayStation 3. It seems like a really insignificant feature but being able to simply slideshow your photos on your tv is actually a really compelling feature of PlayStation 3."
"And over time, downloading HD content -- whether it be TV content, film content -- clearly needs a lot of hard drive space."
http://www.gamepro.com/news.cfm?article_id=55089

There is also of course some symbiosis between the different Sony divisions. Actually the photo feature and the blu-ray may be what push me to buy a 1080p TV set.
Seems like Sony is coming up with a range of back projection 1080p TV sets this summer. A coincidence? I think not.

The payback may come from many different direction: BD films, high end Tv sets, game royalties, music download, etc.

 

[cthellis42]

Not just will. It already is desirable. Its just that the price hurts despite that.

Ain't that the truth.

In the end, it'll depend what's out there when they launch. If you're geeky enough, you can usually find a lot of compelling bits of tech to latch onto, even when the games aren't fleshed out yet.

 

[Carl B]

I think what it comes down to is, is there enough demand for the duration of the $600/500 bracket? Is there enough demand for the price after the first cut, and then the next, and the next....?

There doesn't have to be *more* demand for the PS3 than the 360, just enough to sell units produced. For launch I think they're good. How well they do after that point will depend entirely on the consumer and the aggregate demand, rather than the relative demand that a lot of threads have been focused on lately.

 

[Tap In]

I think what it comes down to is, is there enough demand for the duration of the $600/500 bracket? Is there enough demand for the price after the first cut, and then the next, and the next....?

There doesn't have to be *more* demand for the PS3 than the 360, just enough to sell units produced. For launch I think they're good. How well they do after that point will depend entirely on the consumer and the aggregate demand, rather than the relative demand that a lot of threads have been focused on lately.

exactly

 

[linthat22]

I have to give kudo's to Acert93, that was a very well written PR thingy. And also a good rebuttal to those attacking it.

 

[Bad_Boy]

Ok but why do all your top games show only 720P which the 360 can already do? Sorry, my TV's only do 720/1080i so I have no need to for 1080P and I'm not in the market for a new TV anytime soon.

Obviously this is a benefit for those in the market for new tv's, what sony is saying is that "we offer a resolution higher than any other console."

I've never seen something techonology related hold out for 10years and still be useful. I just wanna play games and right now I can't see a good library for your console for until late 2007+

Surely you have used DVD's, even to this day, which was first available to consumers in 1996. Hmm...thats about 10 years I think.

Having it plugged in via an ethernet cable isn't a big deal to me but thanks for the free feature!

Again, this is aimed toward users who only use wifi or prefer wifi in their home. But again sony could say this is a feature none of their competitors have.

Can you confirm that no MS games will make use of the HDD? I already know that Oblivion benefits from having a HDD as I'm sure other devs will recommend one also.
.

Sony has said that every game that comes out of their company will take use of the HDD, and I dont see why every third party developer wouldnt do the same. This cannot be said for MS games.

How do you know that MS won't make Live Free once it has some decent competition? Also, I like that I can buy games off live and play them on my Vista PC, 360 and cell phone (for some titles). Will your Online allow that also? If you're gonna open it up to the internet, what anti virus, anti spam and other technology you have that'll stop hackers from messing up my PS3? I don't want to deal with the same issues that I have on the PC! Too much hassle.

How do you know that MS will offer live free even after decent competition? As for the vista/pc/cell phone games, you obviously would have to have different sku's for that to be possible as you cannot install pc games on your 360. and thats more money, Live anywhere seems to just connect the three. And Sony has mentioned that there will be ways to connect your ps3 games through the internet of your computer or through your psp. As for hackers/viruses, PS3 will have regular firmware updates just as the PSP does to fight back viruses and such, but will also support homebrew at the same time. Sony even has a site to support indy developers who would like their own games and ideas offered over Sony's network. ( http://us.playstation.com/beyond/default.htm )

Right now, I don't see a lot of games you have that interest me until late 2007 onwards but I definitely keep an eye out. Didn't you say that heavenly sword got pushed back to 2007?

I dont think Heavenly Sword was ever confirmed to be a launch title, and Sony could argue that the reason launch titles were pushed back would be to assure quality over getting games rushed out. (the same thing happened with oblivion, graw, etc.)

Do you have Mass Effect, Lost Planet and Bio Shock also? It seems this time around they also have a lot of exclusives and picked up GTA 4 and exclusive episode content. Also, a lot of games this generation are cross platform and I don't know anything about your release dates except for what year. A better timeline would be really nice.

Bioshock is rumored to be coming to the PS3, as for the others...Does MS have Lair, 8 Days, Getaway, Rachet & Clank, Heavenly Sword, MGS4, FFXIII, Virtua Fighter 5, Naughty Dog's new IP, etc. I could go on, hell any other company could go on about their exclusives(meaning all of the big three). Sony could argue that games sell the hardware, and you probably noticed that in their previous 2 consoles they offered the most software and will continue to do so.

Ok, I'll wait but how long will I be waiting? I guess I'll get one when I see the benefit which right now I don't. I don't care how powerful it is in the numbers but for 2006 and well into 2007 the 360games look better. Also, I have no idea how the CGI stuff will actually look like as a game but I'll play close attention.

Sony could argue that it varies between developers but what they can guarantee is that the games offered in the future will look exponentially greater than the games you see in the first 1 or two years, because of their high learning curve. And that you will continue to see games that will amaze in years to come.

I didn't buy a new console to play old games. Again, you guys are really far behind the library since you're a year late.

Again not aimed toward you. Sony could say BC is not about a sales pitch, as with MS, they will offer the biggest backwards catalog so that 99% of your previous games bought will not go to waste. It also aims towards the developers who will continue to support their old consoles for years to come, as they are not giving up on the ps2 as soon as the ps3 drops. For example, god of war 2 is coming out after the ps3 comes out.

I'm going to have to learn linux now!? I just wanna play games! If you give me full web browser that means I'll be able to watch all the different movie clips online, open up PDF's, listen to different music formats and all the other browser things my PC allows? Can I save attachments from my email and view them? what about printing? If not, I rather use my PC, it's more convenient. How will you protect my PS3 from viruses, spyware and hackers?

Ofcourse not, for the average joe there will be the regular PS3 OS which is simple for anyone to use. But Sony could say to support the growing homebrew community, we offer an alternative no other console does. With homebrew, who says you wont be able to do those things?

huh? Most of your games are also 720P and the 1080p titles don't appeal to me. DVD can do 720P HD fine. Where are you getting this information from?

Probably not aimed at you again, but sony could say for those who want 720p--we give you 720p, for those who want 1080p--we will offer 1080p. Blu-ray is also not just about more resolution, its also more content, something DVD cannot offer you on the levels that Blu-ray can. But for those who want more resolution, of course blu-ray will support higher resolutions than DVD can.

Ok, I guess but I just want it for games first and foremost. Right now I can't see a reason to get the PS3 until late 2007 onwards but thanks for your time! Hopefully your price drops a little also, we see True HD like you said on all your top titles and reviews on the BluRay player built in are much more clear. It's still a great console but I can't see a need for it for some time.

The hardcore buyers will be the ones who dish out big bucks in late 2006 and early 2007, for the casual buyers sony could say that we will continue to support the games and other content well into the next decade so If you want to buy in late 2007 sony will be right behind ya, and will probably offer price drops accordingly.

Of course this all goes back to what Bobbler said...

Generally people interested in a product and are on the fence aren't the type who will actively counter rationalize like you just did.

Most wont argue on every single point such as you did, and will find benefits out of the arguments that you cannot. As I said, some features are aimed at the general public, and not just you personally.


//time for me to go sleep now

 

[Acert93]

I think what it comes down to is, is there enough demand for the duration of the $600/500 bracket? Is there enough demand for the price after the first cut, and then the next, and the next....?

There doesn't have to be *more* demand for the PS3 than the 360, just enough to sell units produced. For launch I think they're good. How well they do after that point will depend entirely on the consumer and the aggregate demand, rather than the relative demand that a lot of threads have been focused on lately.

Summerized well.

On a tangent, I am getting a feeling we may be seeing the same pricing of SKUs until 2007. I get the feeling the 360 may not get a significant price drop in 2007. If demand > production then there is no need to reduce price. Take MS's position. Q1 will be getting Bioshock and some strong multi-platform titles (BiA3, MoH:A). Q2 will have Mass Effect. Q3 will have Halo 3 and the Halo movies. Q4 will have GTA4 and whatever else they have slated for the holiday season. This is on top of their Fall 2006 lineup and back library and a continuous stream of 3rd party software. MS is getting killed in Japan, but I think for the US having Halo and GTA on the same platform will continue to push sales. So why should MS drop the price and take on more losses? Similarly, Sony will finally be getting enough units out in late 2007 to meet consumer need and will have a ton of great software (MGS4, FFXIII, backlibrary of launch titles) and Blu Ray should be getting some substance by that time and the HDTV consumer kick will be even higher.

With cost reduction efforts still under way, production slowly ramping up, and consumers still demanding the hardware I am not sure there will be a need for big price drops until 2008. The PS2 shipped something like 6M units in its first 6 months, and then another 20M units in the next 12 months. I could be wrong, but it does not look like there is that sort of ramping up right now (and probably for good reasons... my guess is to allow price reduction, maintain a high price, and minimize losses until the 65nm process node takes over). This will annoy the casual fans who want the consoles, but MS/Sony want the consumers with cash because they buy the most software. At some point both will need to work toward the lower price points, but price drops are only needed when either demand dries up and/or the competition makes a price move for strategic purposes. But if both consoles are producing at max capacity and still selling through... why would they even think of dropping the price?

As for as Sony and MS are concerned, as long as they sell every unit they are making there really is no need for price cutting. What will be very interesting is at what point do consumers decide when the value no longer justifies the price. That is where all our predictions fall short as no one knows. I would agree with EndR that software drives hardware--at least at some point.

Last gen Halo and GTA3 came out of nowhere to push sales. Who will be the Halo and GTA this gen? Will Blu Ray quickly dispose of HD DVD and generate consumer interest? Will consumers continue looking at quality gaming at a cheaper price or has the market, as a whole, matured to the point we want full fledged convergance? Or is the market split on thus? And how will online gaming impact the market--will it actually become mainstream? And the Wild Card: Will Wii execute and create a totally new, and successful, niché in the industry where we can actually see 3 valid, healthy, and competitive formats meeting unique customer needs?

I honestly cannot think of a time in the industry when there were so many questions (real questions) and excitement. Not just about hardware, but about experience, convergance, and refined software. The industry has really stratified and each company, while sharing core ideas (or stealing! haha), they all have staked their claims this generation.

Now time to watch it all unfold

 

[Bad_Boy]

Last gen Halo and GTA3 came out of nowhere to push sales. Who will be the Halo and GTA this gen? Will Blu Ray quickly dispose of HD DVD and generate consumer interest? Will consumers continue looking at quality gaming at a cheaper price or has the market, as a whole, matured to the point we want full fledged convergance? Or is the market split on thus? And how will online gaming impact the market--will it actually become mainstream? And the Wild Card: Will Wii execute and create a totally new, and successful, niché in the industry where we can actually see 3 valid, healthy, and competitive formats meeting unique customer needs?

I honestly cannot think of a time in the industry when there were so many questions (real questions) and excitement. Not just about hardware, but about experience, convergance, and refined software. The industry has really stratified and each company, while sharing core ideas (or stealing! haha), they all have staked their claims this generation.

Now time to watch it all unfold

Great questions indeed, obviously cannot not be answered today or probably not for a while, but I am there with you in waiting for the answers. I'm excited as well about the turnout of the big three and the content they will offer. I'm with linthat22 on this, Kudos to you for a great write up, also to xbdestroya for his article. PR just might be the biggest factor this time around, more than it has ever been in the console world.

 

[pc999]

Didnt read all of this but there are more arguments.

1- I want to play now but I cant pay more than 400$ (total).
2- I want a Wii too, that will cost to much.
3- I cant live without Halo, Forza, Fable...
4- My friends already have XB.
5- I just want to play.

Probably one can get few strong ones more, plus some just prefer on against the other and using the same argment than others while value is important it isnt everything (if I can bought a 100M$ worth thing by 10M$ I would still not buy).

Anyway if the rumured price cut on XB360 to 220-300$ and price cut on Live or free (with ads I think) is true must of those arguments will not work or at least it will lose a lot of streght, if they arent I (and I would advice others to do the same) would just wait and see how things shapes.

The truth is that this kind of arguments do not win , if you look hystory of consoles most of them had win or lost because of diferent things than those made by arguments like this.

 

[mckmas8808]

Not just will. It already is desirable. Its just that the price hurts despite that.

Yeah that price is a motha. My pockets are going to be hurting this Christmas. Sorry girlfriend no $300 gift for you. Here take a Coke and a smile.

 

[mckmas8808]

Summerized well.With cost reduction efforts still under way, production slowly ramping up, and consumers still demanding the hardware I am not sure there will be a need for big price drops until 2008. The PS2 shipped something like 6M units in its first 6 months, and then another 20M units in the next 12 months. I could be wrong, but it does not look like there is that sort of ramping up right now (and probably for good reasons... my guess is to allow price reduction, maintain a high price, and minimize losses until the 65nm process node takes over).

Actually I read that Sony will target to ship close to 20-25 million PS3s per year. I wish I could find the link. Can someone help me out?

 

[Bad_Boy]

Actually I read that Sony will target to ship close to 20-25 million PS3s per year. I wish I could find the link. Can someone help me out?

well if they really do intended on making 2 million a month, and can keep that type of output up with no problems... I guess it wouldnt be impossible. But thats just theoretically speaking.

 

[NavNucST3]

Come now, hypocrisy is not limited to one side of the fence -- I'd say there's plenty of it that goes around, regardless of what you're console preferences happen to be. Pointing it out exclusively on one side also doesn't help your case. I think you're also overexaggerating the rationalizing that has gone on.

You are welcome to your opinion, but one need only peruse the previous threads when the dual sku approach was announced and the prices were announced for the 360 last year. I have already mentioned in many other threads the rationalizing that went on about the hdd, the two skus, and dvd for the "green" side of the fence. My first sentence was in no way derogatory towards xbd, I think if you asked him how our conversations typically go between each other, I don't think either of us would ever say we drove each other up a wall. I happen to think he is one of the most even headed people with a personal preference.

 

[NavNucST3]

I think what it comes down to is, is there enough demand for the duration of the $600/500 bracket? Is there enough demand for the price after the first cut, and then the next, and the next....?

There doesn't have to be *more* demand for the PS3 than the 360, just enough to sell units produced. For launch I think they're good. How well they do after that point will depend entirely on the consumer and the aggregate demand, rather than the relative demand that a lot of threads have been focused on lately.

I think there is easily more demand than there will be product...although, I guess for the most part it may depend on your other thread about the sentiment of Japanese gamers towards the PS3. I think they will forego their complaints about the Xbox being big from yesteryear and have no problems buying the "big boned" PS3.

 

[expletive]

Slightly OT, I don't really have the time or energy to engage in this discussion more fully, but here's one small gesture that may go a long way for some people in overcoming the price..

Sony may offer discounts on TV/PS3 purchases



They already do this with some other products - where I am, typical discounts range from €150 to €300. So if you're looking for a TV this year, you may be able to pick up a PS3 quite cheaply alongside it..

Its the TV you're getting cheaply, the PS3 is still $599.

So let me understand this, the PS3 is a great value becuase youre getting a game console, a BR player, AND an HDTV for $2500?