Best Buy done with PS3 20GB model

Sony's PlayStation 3 is currently available in two flavours: the $499 USD 20GB version and the $599 USD 60GB version with 802.11b/g wireless networking and a MemoryStick/Secure Digital/CompactFlash reader. Based on a printout from Best Buy's computer system, it seems that the retailer has marked the 20GB PS3 model as discontinued. Joystiq confirmed the claim with three separate stores, and indeed it appears that Best Buy will no longer carry the 20GB model.

Earlier this week, Sony's David Karraker stated: "Overwhelmingly, retailers have been requesting the 60GB model, the mix has been about 80% 60GB, 20% 20GB retailer orders." According to iSuppli, Sony is losing $307 per 20GB console and $241 per 60GB console. It would seem that the logical choice for Sony would be stop production for the 20GB version: the 60GB model is the more popular choice and it doesn't set Sony back as much. However, Sony probably doesn't want to limit their customer's choice (Best Buy isn't helping) and isn't about to go ahead and make the price difference between a PS3 and a Wii/360 even greater.

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News source: Joystiq

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I'd be curious to know how the Xbox 360 Premium vs. Core sales are doing. What types of percentage splits are we looking at? I know I bought a Core because at the time I couldn't find a Premium. I bought everything to "make" it a Premium and it cost me a little more, but it was less than getting a Premium on eBay.

IMO, the whole idea of making different versions of a console so consumers have a choice is dumb. I thought it was a dumb idea for the 360 and for the PS3. I would rather have companies release a single version of their console like they used to do in past times. So every console gets the same features. Then developers will know exactly what their potential user base will have, and they can further utilize said features. So this news is exactly a plus in my eyes, even though I don't plan on owning a PS3.

What will tick me off about this new development is that some Sony exec will no doubt release a statement saying how well the PS3 is selling. The fact that Best Buy is dicontinuing the product is proof that it's not selling well, but I still have a feeling Sony will spout some jibberish to the contrary.

spacer said,
What will tick me off about this new development is that some Sony exec will no doubt release a statement saying how well the PS3 is selling. The fact that Best Buy is dicontinuing the product is proof that it's not selling well, but I still have a feeling Sony will spout some jibberish to the contrary.

I know, I can't wait to see what their excuse is :P

So what happens if someone comes back with a PRP on a 20gb? Do they replace it with a 60gb or tell them tough luck?

Anyone who bought the 20gb model since it's launch should be allowed to now come in and exchange it for the 60gb model.

You bring up a very good point. If Sony really is about to discontinue the 20gb model, anyone out there that owns one will be screwed if something happens to it and they have an extended warranty that they bought from that store or something. They go in to get a new one or something and are told "sorry that model has been discontinued", I'd be very angry if that were to ever happen.

But I don't plan on ever owning a PS3. This is not me bashing it either so don't start any flame war. I haven't been happy with Sony and how they treat the people who buy their products since PS2 came out.

The way I remembered it working was you could replace it with the same item at no cost, or if they dont have it (or carry it anymore) you could replace it with something of the equivalent price or something more expensive and pay the diffreence from your original price...but it was 6yrs ago when I worked at best buy so I'm not sure if it's still like that

SkyyPunk said,
The way I remembered it working was you could replace it with the same item at no cost, or if they dont have it (or carry it anymore) you could replace it with something of the equivalent price or something more expensive and pay the diffreence from your original price...but it was 6yrs ago when I worked at best buy so I'm not sure if it's still like that
Not if what you are after is a warranty vlaim. They cant charge you because they decided to stop making it 6 months after it went to the market.

I assume one of 2 situations will occcur.

a) You will get it replaced with a 60GB model or at least parts from a 60gb model (I mean if the HD isnt broken they may choose to give you your one back or whatever...you may not get a free upgrade per say just what needs to be fixed fixed).
b) its possible that the manufacturer/sony will retain a set amount of 20gb models for warranty purposes only so that at least for a while they are able to exchange for the 20gb model.

Smigit said,
Not if what you are after is a warranty vlaim. They cant charge you because they decided to stop making it 6 months after it went to the market.

I assume one of 2 situations will occcur.

a) You will get it replaced with a 60GB model or at least parts from a 60gb model (I mean if the HD isnt broken they may choose to give you your one back or whatever...you may not get a free upgrade per say just what needs to be fixed fixed).
b) its possible that the manufacturer/sony will retain a set amount of 20gb models for warranty purposes only so that at least for a while they are able to exchange for the 20gb model.


Warranty claim is different, I am talking about using the PRP at Best Buy :P

nope.. the number is exact. It's not 300+ dollars.. it's exactly $307 as reported and $241 for the 60GB model. The Xbox was loosing like $150 per box but now it's making like $70 profit on each one sold because of mature manufacturing processes and cheaper parts

Patchou said,
errr... I know Sony is losing money on each PS3 but.... $300? am I the only one who thinks this is exagerated?

No its not. Sony and MS always worked like this. Microsoft lost millions by selling the original XBOX but didn't matter much, their goal was not to make profit from the beginning (like Nintendo) but to establish a strong customer base since it was their first console. Also keep in mind that unlike PC gaming, console manufacturers get big cash from licensing fees by sold games. This is where they expect to make profit from.

As for PS3, losing 300 bucks per console makes sense if you consider that Bluray players cost around 1k and PS3 is much more than just a player.

Though imo what Sony misunderstood is the fact that the majority of PS3 buyers will want one to play games and they don't care much about watching Bluray movies. Thus while the console itself is cheap considering the player aspect it looks severely overpriced for someone that just looks for a gaming console. This though is not bad for people that actually want to buy a Bluray player. They get to buy a cheaper than average player that is actually much more than that.

If you consider all the above it's easy to figure out why Wii sells like crazy. The controller sure helps but the price is unbeatable. Unless Sony swiftly proceeds on a price drop (which is very hard given the money they lose already) I don't see them making much profit out of PS3 ever. Also the Wii VS PS3 situation is not something new. Same thing happened with DS vs PsP. At the end specs didn't matter much (though indeed a portable console is a different thing), still they should have gotten the point.

Well, I know they're losing money on new launches but still, $300 seems a lot to me. What I wonder the most actually is where the prices come from. I mean, for exampl, you can't assume that Sony pays $600 (or whatever) for each BlueRay drive they put in a PS3 because your local store sells it for the same price. Note that I'm not saying you're wrong, I just wonder how these precise numbers can be computed as I doubt Sony itself gives the info.

And yes, I agree, gamers don't care much about BlueRay in general. The good thing for them will be more storage space for the games in the future but I still think Sony did "too much" for the PS3 and it's unfortunate that such an expensive system does not offer any interesting game (at least, I speak for myself.. I have a Wii and I had a lot of fun with it since the day 1).

Patchou said,
Well, I know they're losing money on new launches but still, $300 seems a lot to me. What I wonder the most actually is where the prices come from. I mean, for exampl, you can't assume that Sony pays $600 (or whatever) for each BlueRay drive they put in a PS3 because your local store sells it for the same price.

I was reading the other (I am not sure it was on NeoWin or not) about a new Bluray or HDDVD LED that would allow write speed of 6x compared to current usual 2x and some super-exotic 4x. Sharp also said they expect to sell these LEDs for about 50.000 yens which translated into about $428.

Now keep in mind that we are talking about a simple LED, not the whole drive. And obviously this price is for companies wishing to employ this LED on their drives. Of course PS3's LED is not this expensive, its not even a writer to begin with but you may assume they pay something like 100 bucks if I was allowed to take a wild guess. When you combine costs for Cell CPU which is also fairly exotic and expensive to manufacture and keep going with smaller parts you can easily reach a total cost of its retail price just for the components. Then you have add packing costs, distribution costs and of course the salaries of the people that actually work in your factories.

Harbinger said,
As for PS3, losing 300 bucks per console makes sense if you consider that Bluray players cost around 1k and PS3 is much more than just a player.
Well thats just what sony and others are selling the players at. I doubt they are making a loss on Blue Ray players and that they do infact cost 1000 to produce. I also doubt they loose 300 per a console although I understand they are likely losing some money.

Harbinger said,

I was reading the other (I am not sure it was on NeoWin or not) about a new Bluray or HDDVD LED that would allow write speed of 6x compared to current usual 2x and some super-exotic 4x. Sharp also said they expect to sell these LEDs for about 50.000 yens which translated into about $428.

Now keep in mind that we are talking about a simple LED, not the whole drive. And obviously this price is for companies wishing to employ this LED on their drives. Of course PS3's LED is not this expensive, its not even a writer to begin with but you may assume they pay something like 100 bucks if I was allowed to take a wild guess. When you combine costs for Cell CPU which is also fairly exotic and expensive to manufacture and keep going with smaller parts you can easily reach a total cost of its retail price just for the components. Then you have add packing costs, distribution costs and of course the salaries of the people that actually work in your factories.

they dont use LED's they use Laser diodes... they are different sure they both emit light, but lasers are directed light in a single direction shape and size, LED's dont do that, and wouldn't work as optical readers

@Smigit > That's the price they're reselling the good for to wholesalers. There's probl 40 to 50% markup in that price. Not the cost of manufacture. Its probably protected by patents etc so until the production scale goes up, they're going to charge astronomical prices to make up for it.

The loss isn't calculated really, I think, from Sony's wholesale costs. Its what are we losing if we were to sell the sum of the parts of the PS3 + development + marketing + misc costs to individual consumers.

I think they should make a PS Walkman edition. They problably have a bunch of tape Walkmans left in a warehouse somewhere. Would cost a lot less. And it would be so much better playing off a tape. Rewind or FF to the best part!