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  1. #1

    • Mr. Faranheit
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    So you thought it was a price cut?

    OMG! You have to admire Sony for sticking to their guns. It seems that the price cut was actually due to the discontinuing of th 60GB model. We will be back to $599 when they run out of this version and are back to one tier with the 80GB.

    SANTA MONICA, Calif.--Today, the E3 Media & Business Summit wound down in Santa Monica, with at least one exhibitor having already packed up and left the show floor at Barker Hangar. However, this morning saw the biggest controversy of the show heat up, with a maelstrom of confusion surrounding the $499 price drop of the 60GB PS3, which was just announced Monday.
    Last night, Sony Computer Entertainment Europe CEO David Reeves told GameSpot that the discounting was merely a markdown of a model which had been discontinued. Just hours later, his statements appeared to be contradicted by a senior Sony Computer Entertainment America spokesperson, who said that quotes from Reeves in the press were "not accurate."
    "As announced this week, SCEA's product offering in North America consists of an 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499," SCEA senior director of corporate communications Dave Karraker told GameSpot. "We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future."
    At almost the same time, a television interview with the global head of Sony Computer Entertainment settled the matter once and for all. Speaking to Norwegian game-news outlet VGTV, SCEI president and group CEO Kaz Hirai said in no uncertain terms that the 60GB PS3's days are numbered.
    "From a hardware perspective, the $499 price adjustment we did for the 60GB version for the American market, we're no longer in production for that product," he said in an unedited on-camera interview. "Once that product is gone from the retailer shelves, then we're back to a $599 SKU only, so it's not like we have a two-price strategy in the US market. We found out very early on how consumers react to having just one SKU as opposed to two."
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  2. #2

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    Re: So you thought it was a price cut?

    I don't think the reaction was to the two-tiered pricing, it was due to the fact that the 40gb was a stupid idea in the first place.


  3. #3

    • Mr. Faranheit
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    Re: So you thought it was a price cut?

    Quote Originally Posted by sir clinksalot View Post
    I don't think the reaction was to the two-tiered pricing, it was due to the fact that the 40gb was a stupid idea in the first place.
    It was a 20 and a 60. It seems kind of lame to bring it back up to $600 when it is already known that it doesn't sell at that price.
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  4. #4

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    Re: So you thought it was a price cut?

    I think the PS3 isn't selling because most of the good games won't be here till 2008. I really enjoy Sony products, and I'm waiting!

  5. #5

    • Pilot EdForceOne
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    Re: So you thought it was a price cut?

    There is a bit more to the story... but I agree this is a ill-conceived move by Sony. By dropping their price before the next product is here.. as well as the market knowing that the 'next' product is also likely to drop price soon after as well. This just builds more 'wait and see' in the market.

    One analyst said
    "Wedbush Morgan analyst Michael Pachter said in a research note that Sony had an estimated 2 million to 3 million 60-gigabyte models in inventory and that once they were sold out, it would lower the price on the 80-gigabyte version.

    "Although we think that Sony's public relations gaffe was unfortunate, we do not believe that the company has ill intent, and we expect the $499 price point to be maintained until early next year, when the 80GB model will likely by cut again to $399," Pachter said"
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  6. #6

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    Re: So you thought it was a price cut?

    Quote Originally Posted by justjohn View Post
    It was a 20 and a 60. It seems kind of lame to bring it back up to $600 when it is already known that it doesn't sell at that price.
    That's right, I was 'trying' to give them the benefit of the doubt.

    Okay, the 20GB was a really stupid idea.


  7. #7

    • Pilot EdForceOne
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    Re: So you thought it was a price cut?

    This is going to create a total freeze in purchasing of PS3s.

    People are expecting the $600 price point to fail, so the $600 price will come down again. So forward looking buyers aren't going to buy the $500 model when they know the 'next' model will come to that price soon as well. And with no 'killer games' right now driving buying SOONER rather then later. The 'wait and see' crowd will have even LESS incentive to buy the current hardware.

    Sony is going to have to release the next unit... drop its price.. and then fire-sale the old hardware to get rid of it. Really poor Product Management moves on their part. No wonder they are struggling as a company so much.

    Man I love my Sony HDTV... but at this rate they are going to really start divesting units soon or look for more more leadership changes to correct this sinking ship
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  8. #8

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    Re: So you thought it was a price cut?

    Game Informer has a rumor floating around about a 40GB non backwards compatible PS3 to sell for $399.

    According Game Informer magazine, a $399 40gig PS3 system is on the way, but it will have no backwards compatibility. They actually expected to hear the announcement at E3 on it. So they may have just heard different rumblings altogether.
    http://gamers-creed.com/Consoles/42.html

    I hear you on the buying freeze flynnibus, I'm def a member of the wait n see crowd. I'm still waiting on the MS pricedrop before I get a 360, so I know there has to be tons of people doing the same for the PS3.

  9. #9

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    Re: So you thought it was a price cut?

    Quote Originally Posted by flynnibus View Post
    This is going to create a total freeze in purchasing of PS3s.

    People are expecting the $600 price point to fail, so the $600 price will come down again. So forward looking buyers aren't going to buy the $500 model when they know the 'next' model will come to that price soon as well. And with no 'killer games' right now driving buying SOONER rather then later. The 'wait and see' crowd will have even LESS incentive to buy the current hardware.

    Sony is going to have to release the next unit... drop its price.. and then fire-sale the old hardware to get rid of it. Really poor Product Management moves on their part. No wonder they are struggling as a company so much.

    Man I love my Sony HDTV... but at this rate they are going to really start divesting units soon or look for more more leadership changes to correct this sinking ship
    I think the same thing is going to happen with the new PSP. Why would you buy the current version when the new one is just around the corner?

  10. #10

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    Re: So you thought it was a price cut?

    Quote Originally Posted by Soulquarian View Post
    I think the PS3 isn't selling because most of the good games won't be here till 2008. I really enjoy Sony products, and I'm waiting!
    I think its not selling because its too expensive for the average person.

    SANTA MONICA, Calif.--Sony announced on Monday that it would be cutting the price of the PlayStation 3 in North America to $499 in the US and $549 in Canada, and that the 80GB version of the console, originally announced to be coming to Korea only, would also be making its way to North American soil in August. However, the company refused to say whether or not price cuts and the 80GB machine would also be coming to other regions, stating simply that, "This is a North American announcement only." However, a Sony Europe spokesperson said that an announcement "following on from the SCEA one" would be coming later in the week.
    Today, Sony Computer Entertainment Europe CEO David Reeves confirmed in a press conference that the price cut would only be for North Americans, and that the console would definitely not be getting a price cut from the current 425/599 euro price (approx $850). Aussies are getting a similar deal--there will be no price drop from the current price of A$999. Another blow was dealt to European and Aussie gamers with the news that the souped-up 80GB version would also not be coming to the regions.
    Instead, a new bundle called the "value pack" will be put on sale for the same price at which the stand-alone console was previously available, which will include a 60GB PS3, two controllers, and two games--Resistance: Fall of Man and MotorStorm. This will be available for the usual price in all the regions, although the games would vary from region to region.
    It's not all bad news--the new PlayStation Portable will be coming to Europe at the beginning of September in black, silver, and white "initially."
    The new bundle will be available immediately in SCEE territories, and will be rolled out in all other territories by August 1. David Reeves commented: "Why are we doing this? We believe added value works in the PAL territories."
    The Sony exec also hinted the company would be revealing three new features and services for the PlayStation Portable at the Leipzig Games Convention that would be exclusive for Europe, and that there would be "something really special" for the PS3, as well as more PSP colors.
    Teaches those PAL regions to buy the PS3...
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  11. #11

    • Pilot EdForceOne
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    Re: So you thought it was a price cut?

    Quote Originally Posted by Soulquarian View Post
    I think the same thing is going to happen with the new PSP. Why would you buy the current version when the new one is just around the corner?
    Yeah, but that case is a bit simplier... the redesigned PSP is to sell for the same price as the current one immediately. That virtually kills current PSP purchases outright (for the educated buyer)... and the PSP price drop is a bit older and out there long before the redesigned PSP slim was confirmed.

    Here we have a price drop... followed virtually immediately with news of a higher end unit. Sony can't keep the price of the higher end unit up.. because they've already seen the higher price doesn't work. So it too, while it may be announced at the higher price.. would certainly fall quick. That's just too chaotic for the consumer - and certainly shows a bit of a tail spin inside Sony on what their game plan really is. They should have dropped the PS3 price back in about Feb-March IMO.

    If Sony is smart, they'll salvage this a bit and sell the 'new' version at the current $499 price and continue to discount the old hardware when the new unit comes out.

    The good news is the stat I saw somewhere put the PS3 at only a 1 to 2 disadvantage to the Wii... but that same article said the Wii sold 2.8 million units.

    Where are these 4 million units Nintendo claimed to have at launch??? They need to get their own **** sorted out. This stringing out the customer stuff is not good long term.
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  12. #12

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    Re: So you thought it was a price cut?

    I think I would have more respect for Sony if they would have announced the "price drop" at the same time as announcing the discontinuation of the 60gb full-PS3 and just called it what it really is... a clearance sale. The fact that they purposely waited a few days to announce the discontinuation just screams to the consumer that they STILL don't get it.

    What's really sad though is that if you don't buy the current 60gb model now, all that's going to be left is a $599 gimped 80gb model. $100 more for an extra 20gb, Motorstorm (BTW, did you know that it sold over 1 million copies? You should because that's all Sony seems to want to talk about!), and gimped backwards compatibility compared to the current 60gb model. Yay.

    Hell, the fact that Namco doesn't think making a version of Beautiful Katamari for the PS3 is worth it to them, a game that probably doesn't cost that much to make and a proven sure-fire winner in sales says a lot about the PS3. I'd understand if a gaming developer says that their multi-billion dollar game isn't worth making for the PS3 because it's too expensive when taking to account the console's install base... but come on, Katamari doesn't cost that much money to make. That's just sad.
    Last edited by Burnt Toast; 07-21-2007 at 11:44 AM.
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