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Why Sony will not drop the price of PS3.
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Old 18 Jun 2009, 09:09 PM   #1 (permalink)
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Default Why Sony will not drop the price of PS3.

In the midst of the 360 vs PS3 internet strife that has senselessly turned gamer against gamer over the past few years, I have noticed that PS3 has continued to keep it’s priced well above that of it’s competitors which could be said as the main reason that the PS3 is currently third in 7th generation console sales.

I am posting this because despite my sympathies for the people who want a PS3 but cannot allocate the resources to get one, I highly doubt Sony will address the issue of price in 2009. This is a multiposting, going on my FB, MSN Space and also several forums I frequent.

It should be stated out front that the primary reasoning behind my firm belief that Sony will not drop the PS3’s pricing lies in its sales and product comparisons to the Xbox 360. Not because I want to start yet another flame war on the subject, but because that’s what Sony Executives do when they weigh such decisions.

I know some places that I will post this and it will be read and discussed intelligently. I know other places that I will post this and the opposite will happen. I’m okay with that. This is for the intelligent people. The ignorant ones…well, I could really care less about what they do. They know who they are. Some probably don’t, but most do.

Okay so Xbox 360 launched in May of 2005. In the 49 months that it has been out on the market, it has sold (rounding to the nearest whole million) 30 Million units and placed a distant second in the “next gen console ‘war,’” but only if you actually count the Wii as a true next gen platform, which is at the very least highly debatable.

The PS3 launched in Japan only in November of 2006 and worldwide in March of 2007. For the sake of argument, we will use the earlier Japanese release date as PS3’s actual launch. In the 31 months that it has been out on the market, the PS3 has sold (again, rounding to the nearest whole million) 23 Million units and placed an even more distant third in the “next gen console ‘war.’”

As it averages out, the 360 has sold an average of 612,245 units per month since launch. The PS3 conversely has sold an average of 741,936 units per month since it’s launch. While (maddeningly to some) the PS3’s price has hovered nearly immobile between $399 and $499, while the 360’s low end unit starts at an astronomically more affordable $199 but does have models that move into the $399 range.

That makes the average price points of the consoles to be $299 for the 360 and $449 for the PS3. Based on those numbers, an approximation of dollars earned for both Microsoft and Sony on these consoles sits at $8.97 Billion for Microsoft and 360, while it’s $10.327 Billion for Sony and PS3.

Furthermore the PSP has sold 50 million units since it’s launch, and Sony is concentrating on content and delivery for the PSP to help boost sales of it’s improved PSP Go! Also the PS2 continues to sell very well, outselling both 360 and PS3 in the Japanese market over the last quarter of 2008.

Sony continues to support the PS2 community and will be releasing over 100 titles for the console this year. Of course at last count, PS2 total sales were hovering around 140 Million, which by the way made it the undisputed, clear cut winner of the 6th generation “console war,” outselling the Xbox by over 110 Million consoles…and that’s really a generous number, given that Xbox only sold 2 Million more units than Gamecube did.

Gamecube, BTW, despite it’s narrow margin of “defeat” by the Xbox, is considered an unmitigated failure. Guessing by Nintendo’s Wii sales figures and their current trend of basically showing up at E3 with nothing good or new to offer, and laughing at anyone who suggests they do otherwise…Nintendo’s executives really don’t care.

There’s other factors, of course the Blu Ray in the PS3 gives developers the ability to make games with up to 50 GB of data…and 200 GB Blu Ray discs are currently in development, possibly negating any pressure on Sony to release PS4 at all. There’s the built in wireless and Bluetooth capabilities that the PS3 boasts which neither the 360 or Wii supports without upgrade costs.

There’s also Sony’s free internet capability. Certainly PSN isn’t nearly as polished or as easy to use as Xbox Live. One doesn’t have to do anything more than to try to start a online MP game in Killzone 2 with a friend or friends to get an idea of how far behind XBL that PSN is. However it IS free and being that this is about “Why Sony won’t drop the price of the PS3,” that’s a factor.

Xbox Live’s best value is a $50 price point for 12 months of service. One and three month packages are also available at a lower price, but for the people who would use that to fund their online play year round, they will end up paying $96 and $80 for a full year.

Sony looks at these numbers, PS2, PSP sales, PSN sales of content, the greater value they deliver for gamers who play online as well as their standard technologies like wireless, Bluetooth and Blu Ray…they look at these numbers and then they look at the fact that they’ve brought in more money on console sales, and have sold more consoles per month than the 360…

Considering all of this, seriously why would they even entertain the possibility a price drop? People are buying the PS3 despite it’s “prohibitive” price tag. People talk about Kaz Hirai as being stubborn and pig headed when it comes to dropping the price of the PS3, but honestly it’s the smart move. There’s no need to drop the price when his console has a higher per month sales average and a higher yield on the purchase price.

Honestly, the way I see it is this: The PS2 sold roughly 140 Million consoles and is continuing to move them. With roughly 23 Million PS3 users and 30 Million 360 users, that means that there are anywhere from 50 to 90 Million gamers who are more likely than not waiting for PS3 to drop it’s price before buying a next gen console. Not only would a price drop be a boon to PS3 sales, but it may well be enough to push them back to the very top of the console hill.

And really, that’s where all the criticism of Sony comes from. The original Xbox was by all accounts a dismal failure, with only 2 million more units sold than Gamecube, and almost 120 Million LESS units sold than PS2. Playstation 3 being in third place overall in next gen console sales is amplified because of it’s previous success. Playstation and Playstation 2 totally trampled any competition that they saw, so seeing PS3 doing anything less than totally dominating the competition is a shock, and that’s where all the sharp criticism of Sony comes from.

However, despite the untapped potential sales for Sony’s console should they decide to bring the PS3’s price down to the land of reality, they will most likely continue to have “no comment” on a price drop, while all of the gaming community practically begs them to do just that so that the PS3 can finally be somewhat affordable in this horrible global economy.

And that is why the PS3 MSRP will not drop below $399 anytime soon…unfortunately for all those who don’t have one. Personally I paid $499 for my PS3 and would do it again if I had to. It’s more than worth the price tag and I’m not even a “hardcore” gamer. I plan on buying an Xbox 360 within the next 10 months as I REALLY want to play Gears Of War…and because my kids need a console to game on…

I am not a stockholder in either MS or Sony so I have no personal stake in who “wins” this “console war,” but I can see where people who want a PS3 are frustrated. Unfortunately despite the rumors that have started back up in the wake of E3, I doubt that a price drop is in the cards for PS3.

Thanks for reading. Good luck, and good gaming.
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Old 21 Jun 2009, 02:13 AM   #2 (permalink)
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Default Re: Why Sony will not drop the price of PS3.

Anyway...ACTUAL people who want to reply can feel free. I know...there's like...two of you. But you can.

Idiots will just get banned and their post deleted. Why?? Because they're stupid and I'm in charge.
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Old 21 Jun 2009, 11:57 PM   #3 (permalink)
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Default Re: Why Sony will not drop the price of PS3.

You're correct that Sony doesn't need to drop their prices, but they can still do their fans a favor. If the latest rumored price cut happens, combined with the release of Fight Night Round 4 in a couple days, it might be enough for me to hand over the money.
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Old 02 Sep 2009, 08:51 PM   #4 (permalink)
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Default Re: Why Sony will not drop the price of PS3.

PS3 hardware sales rise 30% following price cut | Ethiopian News

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Old 10 May 2015, 07:03 PM   #5 (permalink)
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Default Re: Why Sony will not drop the price of PS3.

though i thought they did lower it
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Old 07 Dec 2015, 06:44 PM   #6 (permalink)
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Default Re: Why Sony will not drop the price of PS3.

oh my goodness someones alive.
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