Call me crazy, but what I see is Sony launching world-wide simultaneously for the first time in their history, and into the teeth of the Christmas season (one week before "Black Friday" in the U.S.). They *know* that they can't fulfill all that demand immediately.
What is the classic mechanism for bringing demand more into line with supply? Price. Further, it is so obvious as to qualify for "duh!" status that they will lose money (just like every other console launch from every other manufacturer in the history of forever) per box on hardware. And just as true that component prices will come down over time. So they want to sell it cheaper at first why, exactly?
Why in the world wouldn't they want to have the price high enuf initially to tamp down demand some anyway? Because they are deeply concerned to allow the ebayers to make their profit, when they, Sony, are losing a bit on each hardware sale? Puh-lease. The fact of the matter is that even at $599 they are going to sell every single box they can make as fast as they can make them in the first 6 months. This is what having a loyal fanbase in the tens of millions does for you.
What I expect is that about this time next year, once that initial demand of the hardcore is met, is when the first price cut comes. And, no, I don't feel sorry for those folks who shell out higher initially --it's called the "time value of money", and they get to strut around their neighborhood making the other gamers crazy jealous for those six months and enjoying the new games. "Hey, Timmy/Francois/Yoji. . .wanna come over to my place and play the PS3 this afternoon? Har-har!"
If I were to criticise them for anything at this point it would be for even announcing the lower priced box yet. I would have advised them to keep that in their pocket for later, as a "caring supplier who heard the cries of the fans" for a cheaper sku, probably timed for about the time of the first price cut predicted above.
That's my read anyway (not that I know anything other than what I see here. . .)
What is the classic mechanism for bringing demand more into line with supply? Price. Further, it is so obvious as to qualify for "duh!" status that they will lose money (just like every other console launch from every other manufacturer in the history of forever) per box on hardware. And just as true that component prices will come down over time. So they want to sell it cheaper at first why, exactly?
Why in the world wouldn't they want to have the price high enuf initially to tamp down demand some anyway? Because they are deeply concerned to allow the ebayers to make their profit, when they, Sony, are losing a bit on each hardware sale? Puh-lease. The fact of the matter is that even at $599 they are going to sell every single box they can make as fast as they can make them in the first 6 months. This is what having a loyal fanbase in the tens of millions does for you.
What I expect is that about this time next year, once that initial demand of the hardcore is met, is when the first price cut comes. And, no, I don't feel sorry for those folks who shell out higher initially --it's called the "time value of money", and they get to strut around their neighborhood making the other gamers crazy jealous for those six months and enjoying the new games. "Hey, Timmy/Francois/Yoji. . .wanna come over to my place and play the PS3 this afternoon? Har-har!"
If I were to criticise them for anything at this point it would be for even announcing the lower priced box yet. I would have advised them to keep that in their pocket for later, as a "caring supplier who heard the cries of the fans" for a cheaper sku, probably timed for about the time of the first price cut predicted above.
That's my read anyway (not that I know anything other than what I see here. . .)
