PS3 price cuts already being considered...

[NoLiMiT06]

This week, Sony announced that profits had fallen some 5.3 percent over last year in the company as a whole, with the game division suffering third quarter losses of 54.2 billion yen (approx $455 million). Some had predicted that the company would be recording even greater losses--in a survey conducted by Bloomberg of five industry analysts, the median estimate was that the company would report a 50 percent loss.

Historically, the time period after a console's launch sees the parent company reporting a loss, a gamble that is intended to pay off when profits are recouped from software sales. Sony's senior vice president, Takao Yuhara, has told AP in an interview that the loss could in fact be more than the 200 billion yen (approx $1.6 billion) that Sony has currently forecast for the financial year ending March.

Many of the costs associated with the PlayStation 3's launch were higher than anticipated, including advertising promotions, and production delays forcing the company to use air rather than sea shipping.

Yuhara revealed that Sony's strategy was to have the games division breaking even by the end of the next fiscal year, March 2008. He told AP that, ''Such factors, including price cuts to some extent, are factored in'' the company's break-even plans. No date was given for when Sony would be considering making the cut, or how much it would be slashing from the current price of $599 for the 60GB model (which will be 599 euros in Europe, ?425 in the UK).

The company has already made the unusual move of cutting the PS3's price in Japan, where the console was launched on November 11, taking the 20GB version to 49,980 yen ($429), 10,000 yen ($85) less than previously slated. However, this move appeared to backfire, as it was slammed by some analysts, and the company's shares took a tumble after the announcement.

Source: GameSpot

Obviously they can't sale any so they are going to lose alot more money if they actually go through with this.

[The Scarecrow]

This is a common practice and planned to pull in the christmas hype and revenue to recover the cost of the development of the system. Not surprising.

[Mathachew Veteran]

This is a common practice and planned to pull in the christmas hype and revenue to recover the cost of the development of the system. Not surprising.

Christmas is a month+ over and just under 11 month away for 2007. If anything, price cuts do not come until that time is approaching, in which now it's a thing of the past and such a long way ahead. Dropping prices is common but only after the product has been released for much, much more than two and a half months.

Bringing the price down is a sign of weakness because it makes Sony look like they don't have confidence in their product. Share holders would be none too pleased about this; they invest in the company so that they can continue to make a profit, while the money the invested has been squandered on an expensive system that has, for the time being, been more hype than anything else.

If Sony cuts prices this early, it is surprising. The money lost per console will increase as a result, and thus, profits will fall even more.

This should be a real eye opener for Sony. Faster and expensive doesn't mean better.

[Marduk]

maybe they won't need to drop the price later this year, they should have SOMETHING out for the Ps3 by at least the middle of this year right?

Think about xmas, I can only imagine what MS might do with the 360 to make it even MORE appealing next xmas, considering everything they did this xmas.

[The Scarecrow]

hahaha This was planned. I am sorry but with the lines to buy the systems when it came out and now a talk of a reduction is planned. Yes some wait months to do a price cut but with this type of device its not uncommon its happened before and doesnt mean its a sign of weakness. It was simply way to stick it to the consumer on release.

[Elliott]

hahaha This was planned. I am sorry but with the lines to buy the systems when it came out and now a talk of a reduction is planned. Yes some wait months to do a price cut but with this type of device its not uncommon its happened before and doesnt mean its a sign of weakness. It was simply way to stick it to the consumer on release.

Yea, I'm sure they were planning to miss the Christmas rush completely with high prices. :rolleyes: Xbox 360 and Wii whooped the PS3's ass this holiday season, and Sony's been trying to recooperate ever since. It's like damage control central over there at Sony Computer Entertainment.

Also, sticking it to the consumer is generally a bad idea. Read: not a good one.

[Mathachew Veteran]

hahaha This was planned. I am sorry but with the lines to buy the systems when it came out and now a talk of a reduction is planned. Yes some wait months to do a price cut but with this type of device its not uncommon its happened before and doesnt mean its a sign of weakness. It was simply way to stick it to the consumer on release.

The X-Box and GameCube saw price drops six months after their release. The X-Box 360, having been released in November of 2005, still has a price tag of $399, and we're just over 14 months. And for Sony's history, the Playstation waited nine months while the PS2 went 18 months without seeing a price drop.

What's so common about a price drop not even three months after release of a major gaming console that is supposed to last for the next ten years? If anything, Sony holds out the longest on dropping prices. Dropping it now or anytime soon is uncommon. Sony's plan, contrary to what you want to accept, was to have lines waiting when new shipments arrived, just like what happens every time new shipments come in for the Wii. Guess again.

[Neo003]

Sony is little too late on realizing that they are doing a bad job marketing PS3. PS3 is a great machine as great as 360 and Wii (well in it's own way), but sony first of all didn't secure the title second they didn't supply enough unit on release date (even well after that) and third the launch title were the worth ever (except Resistance: Fall of Man).

Also it's been month's and there are not any good titles for PS3, I was planning to buy PS3 since it's launch but first there were no units then now when ebgames has units but there are not any good game for me to get excited about buying a PS3 right away. I bought PS2 just for MGS3 & GOW (God of War not Gears of War :D ).

[SimplySchizo]

Sony is little too late on realizing that they are doing a bad job marketing PS3. PS3 is a great machine as great as 360 and Wii (well in it's own way), but sony first of all didn't secure the title second they didn't supply enough unit on release date (even well after that) and third the launch title were the worth ever (except Resistance: Fall of Man).

Also it's been month's and there are not any good titles for PS3, I was planning to buy PS3 since it's launch but first there were no units then now when ebgames has units but there are not any good game for me to get excited about buying a PS3 right away. I bought PS2 just for MGS3 & GOW (God of War not Gears of War :D ).

I'm with you. Soon as the Metal Gears, and GTA's and higher caliber game comes out, im willing to bet it'll be a whole different story. It's like when RE4 came out on the GC, how many people ran out and baught a GC simply for that one game?

Regardless, i'm definitely gonna be there to grab a PS3 for Metal Gear/GoW3/GTA4...ect

You'd be crazy to miss out on these.

[soniqstylz]

I'm with you. Soon as the Metal Gears, and GTA's and higher caliber game comes out, im willing to bet it'll be a whole different story. It's like when RE4 came out on the GC, how many people ran out and baught a GC simply for that one game?

Regardless, i'm definitely gonna be there to grab a PS3 for Metal Gear/GoW3/GTA4...ect

You'd be crazy to miss out on these.

The GC was a $199 system.

[BGM]

not forgetting the new final fantasy game! :D

[Ji@nBing]

I'm with you. Soon as the Metal Gears, and GTA's and higher caliber game comes out, im willing to bet it'll be a whole different story. It's like when RE4 came out on the GC, how many people ran out and baught a GC simply for that one game?

Regardless, i'm definitely gonna be there to grab a PS3 for Metal Gear/GoW3/GTA4...ect

You'd be crazy to miss out on these.

You can't compare people buying the GC for one game to people buying the PS3 for those few exclusives. The GC was affordable. I don't know how much it cost when RE4 came out, but probably under $200. $200 and $700 are very different ball parks.

As much as I love my PS2 and would love to play those games, it simply isn't worth $700 for 3 games. I think you'd be crazy to pay $700 for a couple of games, but hey, that's just me. Personally I'm going to wait until the PS3 is in the $200 range (and who knows how long that will be? I mean, they still haven't dropped the PSP price after over 2 years) and then pick one up and play those games (that's if MGS4 and FF haven't been ported to the 360 by then). In the meantime I'll have my 360 and Wii to provide me with more than enough hours of great gameplay.

As far a price drop on the PS3 anytime soon, don't expect it to make any difference. It will probably be $50 max. When you are paying that much already, is $50 going to be the deal breaker for you? I highly doubt it. People who think it's too expensive will still think it's too expensive.

[+StevoFC MVC]

The GC was a $199 system.

wasn't it $99 when RE4 came out?