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PS3 Price Cuts
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Old 01 Feb 2007, 06:52 AM   #1 (permalink)
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Default PS3 Price Cuts

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Even though the PS3 is losing Sony a ton of money at the moment, the company is apparently seriously looking at a potential price cut for the next-gen system. A senior Sony exec told reporters that it's an option that may be used to expand the market.

Sony's PlayStation 3 was blamed just recently for bringing down Sony's profits, and now just one day after Lazard Capital Markets analyst Colin Sebastian said that a price cut for the console shouldn't be ruled out for this year, a senior Sony executive has gone on record saying that a price drop is an option to consider.

Although no decision on a price cut has been made just yet, according to an Associated Press report, "Pricing is among the factors Sony Corp. is studying as it expects to break even in its money-losing gaming business next fiscal year." Keep in mind that Sony actually lowered the PS3 price in Japan by about 20 percent before the console even went on sale.

"We may look at the price as part of our strategy to expand the market when the timing is right," Sony Senior Vice President Takao Yuhara told reporters at the company's Tokyo headquarters.

The obvious question, however, is: How can Sony realistically afford to bring the price down on the PS3 if the company is losing upwards of $300 on each unit sold? Moreover, Yuhara said that total annual loss at Sony's gaming division for the fiscal year through March could turn out to be even worse than the 200 billion yen ($1.6 billion) that the company previously forecast.

Nevertheless, Sony's plan to break-even during the next fiscal year in the gaming business actually does factor in price cuts. "Such factors, including price cuts to some extent, are factored in [the break even plan]," explained Yuhara.

A price cut would be a risky financial move for Sony, but Sony apparently isn't averse to taking risks these days. And if the company is able to streamline the production process while lowering the price and introducing "AAA" software at the same time, it's a strategy that could ultimately pay off.
http://biz.gamedaily.com/industry/feature/?id=15122

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Old 01 Feb 2007, 12:12 PM   #2 (permalink)
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Wow, that's amazing. Cheaper production costs + affordable pop + AAA games = profits. I never would have imagined such a concept. Maybe Nintendo did.
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Old 01 Feb 2007, 02:10 PM   #3 (permalink)
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Sony is thinking about a pricedrop out of necessity, but Microsoft can cut their price ANYTIME they want to. If they were to cut the price, it would almost certainly force Sony to cut their price.
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Old 01 Feb 2007, 04:16 PM   #4 (permalink)
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Originally Posted by Mister Lab
Sony is thinking about a pricedrop out of necessity, but Microsoft can cut their price ANYTIME they want to. If they were to cut the price, it would almost certainly force Sony to cut their price.
I also think it works the other way around too.

I say if Sony cuts the price on the PS3, you will definately see price drops on the 360 soon after.
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Old 01 Feb 2007, 05:09 PM   #5 (permalink)
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Originally Posted by Spear
I also think it works the other way around too.

I say if Sony cuts the price on the PS3, you will definately see price drops on the 360 soon after.
Yeah, except Microsoft gets to make the extra 50,000,000 or whatever by being so far ahead before dropping the price.
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Old 01 Feb 2007, 06:57 PM   #6 (permalink)
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Sony......

Just die.
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Old 01 Feb 2007, 10:08 PM   #7 (permalink)
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Originally Posted by Crazyskill
Sony......

Just die.
Probably not. They are Sony. Since the Mitsubishi scandal, I'm fairly certain they've taken over as the hub of the preeminent keiretzu in Japan. It would take a worldwide calamity for Sony to just go away.

However it does appear that they are paying the price for using Blu-Ray...

Bad fucking idea to start out with.

Meh. They'll figure it out. Either way, looks like I made the right decision not to.

Late.
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Old 01 Feb 2007, 11:05 PM   #8 (permalink)
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Well I knew it would come soon.
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Old 02 Feb 2007, 01:57 AM   #9 (permalink)
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Quote:
Originally Posted by Ze Pequeno
Probably not. They are Sony. Since the Mitsubishi scandal, I'm fairly certain they've taken over as the hub of the preeminent keiretzu in Japan. It would take a worldwide calamity for Sony to just go away.

However it does appear that they are paying the price for using Blu-Ray...

Bad fucking idea to start out with.

Meh. They'll figure it out. Either way, looks like I made the right decision not to.

Late.
I would love to see the business plan for the PS3....

The pitch musta been outstanding...

Sony introduced 2 new formats in the span of a year. Any first year business student could tell you thats a dumb idea
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Old 02 Feb 2007, 04:43 AM   #10 (permalink)
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I knew the price will drop, just not so soon.

It makes you wonder who designed this console? Kids or what, seriously, they lacked a lot planning. They should have calculated how much profit they'll be making from each unit sold and looked at the risks from over loading the console with stuff which cost a lot to make i.e blu ray compatible. They tried so hard to out-do 360 and Wii that they ended up going over board, out doing themselves and forgetting the first basic concept of a console is to play video games, then after that maybe a few extra, i.e music, dvds, etc, but gaming comes first.
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Old 02 Feb 2007, 12:09 PM   #11 (permalink)
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Quote:
Originally Posted by CK
I would love to see the business plan for the PS3....

The pitch musta been outstanding...

Sony introduced 2 new formats in the span of a year. Any first year business student could tell you thats a dumb idea
Not only 2 new formats, but 2 self competetive formats. Who the hell is going to buy a superman dvd, then buy it as a psp disk, then decide they need to have it on bluray all within a fucking year?!?!

[napoleandynamite]idiots![/napoleandynamite]

btw people, they're not dropping the price They're just saying that it might happen at some point, some day.
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Old 02 Feb 2007, 08:12 PM   #12 (permalink)
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Yes..This would happen when you can get the exact same system for over 200 dollars less..Or a new innovative one for 400 bucks less. Blu-Ray has flopped..Just as I and many others here said. What a waste.
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Old 03 Feb 2007, 01:36 AM   #13 (permalink)
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^Not really... not yet. To say that Blu-Ray has flopped implies that HDDVD has won out, which isn't true at all.
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Old 03 Feb 2007, 04:48 AM   #14 (permalink)
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Originally Posted by Art Vandelay
^Not really... not yet. To say that Blu-Ray has flopped implies that HDDVD has won out, which isn't true at all.
History has said, that once the porn industry supports a format...that format wins.

The Porn industry has put its support behind HD DVD.

Bluray loses.

btw....you can look it up, I speak truth
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Old 04 Feb 2007, 02:10 AM   #15 (permalink)
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Originally Posted by Spear
I say if Sony cuts the price on the PS3, you will definately see price drops on the 360 soon after.
Uhh... no. If Sony cut PS3 prices, it would probably only be to around $400. Still relatively high compared the 360. Not to mention that Microsoft would still be making a shit load of money while Sony would go even more into debt.

Unless Microsoft's units sold number drops to zero, they have absolutely no need for a price cut.
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