Heres some sad news: Sony is NOT going to cut PS3 prices.

P

PriyoBan

Adept
TOKYO (Reuters) - Sony Corp. has no plans to cut the price of its PlayStation 3 (PS3) at present to pep up demand and counter surging sales of Nintendo's rival game console Wii, Sony's president said on Friday.

Sony President Ryoji Chubachi also said in an interview that operating profit margin at its mainstay electronics unit, which makes hot-selling Bravia LCD televisions and Cyber-shot digital cameras, was likely to exceed its 4 percent target for the current year to March 2008.

"At present we have no plans," Chubachi told Reuters when asked whether Sony had any plans to cut the PS3 price.

Sony has packed cutting-edge technology such as a Blu-ray high-definition optical disc player into the PS3, driving up production costs and making its retail price more than twice as expensive as the Wii.

The higher price tag and lack of attractive software titles have been cited as main reasons the PS3 has been trailing the Wii in sales, and analysts have been widely expecting Sony to soon slash the price to spur on demand.

In a Reuters poll of four game analysts this week, three expected Sony to cut PS3 prices by $100 by the end of the year, while one analyst said a cut of $150 is more likely.

The PS3, with a 60-gigabyte hard disk drive, carries a price tag of $599 in the United States, while the Wii sells for about $250.

"If you take a look at how PlayStation and PlayStation 2 have taken off, this is not such an unusual start," Chubachi said.

When the PS2 made its debut in 2000, Sony was initially criticized for lack of strong titles, and some software publishers said the machine was too complex to develop for.
Click to expand...

Read the entire news here:Sony has no plans to cut PlayStation 3 price | Reuters
 
Retailer information points to a PS3 price drop to $499 coming July 12​

With price being many consumers’ sticky issue on the PlayStation 3, Sony appears to be adjusting the price of its new games machine sooner than expected.

A member of the DVD Talk forum acquired a Circuit City flyer for the week of July 15, and posted a number of gamer-specific deals. Of extreme interest is the retailer’s price on the PlayStation 3, listed at $499.99 after a $100 “price break.â€

It was originally unclear if the $499 price point was just a specific to Circuit City, but a merchandising manager at a supposedly large retailer confirmed with GameDaily that the price drop is to be retail-wide on July 12, with the first wave of ads to promote the new PS3 price starting July 15.

It is now believed that Sony Computer Entertainment America will be officially announcing the new $499 price of the PlayStation 3 at its E3 press conference next week, scheduled for the morning of July 11.

The $499 price point was previously occupied by the 20GB version of the PlayStation 3. Sony launched its console in November 2006 with two variants – one at $499 and the other a $599 – with the more expensive version featuring a larger, 60GB hard drive and Wi-Fi connectivity.

Citing reasons related to consumer demand, Sony in April discontinued the $499 20GB PlayStation 3 leaving only the more expensive $599 60GB model on the market. Since that move, the issue of price has cropped up in various interviews with Sony executives.

Sony president Ryoji Chubachi said to the Financial Times, “We are re-examining our [PS3] budgeting process in terms of pricing and volume. Sales assumptions change and the market is competitive. We are in the midst of revisiting our strategy for the PS3.â€

More recently, Sony CEO Sir Howard Stringer said in June regarding the PS3’s price, “That is what we are studying at the moment. That’s what we are trying to refine.â€
Click to expand...
PS3.jpg


Puzzlingly, amidst all the evidence of a pending price cut, Chubachi told Reutersearlier today, “At present we have no plans [to cut the PS3 price].â€

Although the upcoming new price of 60GB PlayStation 3 is the same as the discontinued 20GB version, which represents little actual savings for gamers looking for an even cheaper way onto Sony’s new game platform, those interested in the console’s high-definition movie playback capability will find some extra value.

All PlayStation 3 (and various other Blu-ray player) purchases made from July 1 to September 30 are entitled to five free Blu-ray Disc movies as part of a special promotion from the Blu-ray Disc Association.

The upcoming $499 price will also put the PlayStation 3 on par with Sony’s cheapest standalone Blu-ray Disc player, the BDP-S300.

When the PlayStation 3 first launched last year, it was an able movie player, but it lacked several important features of standalone machines – for example, DVD upscaling. Thanks to regular firmware updates from Sony, however, the PlayStation 3 is now able to upscale DVD movies up to a 1080p resolution – putting it on easily on par with the best Blu-ray Disc players on the market.
Click to expand...

Source : DailyTech - Sony Expected to Drop PlayStation 3 Price by $100 Next Week
 
They are NOT going to be reducing it any time soon. They're making tons of losses on it already. They don't need to be making more. If at all they do so, it should only be when the X360 gets one or once the games start to stream in steadily.
 
Well if they are running losses then it DOES make sense to reduce prices to make it more competitive with the others. When this happens a larger quantity is sold, which ultimately results in more profits in the long run. Your point about the games is valid though... more games means more royalty for Sony.
 
Ok, Sony sells a bunch of consoles for around 200$ loss off of each = a huge loss.

Sony sells twice as many consoles but for an even greater loss off of each individual console. I don't see the profits, only tons more losses. Both immediately and in the long run.
 
Ck Nish said:
They are NOT going to be reducing it any time soon. They're making tons of losses on it already.
Click to expand...

I really don't know why people could even fall for it now. Sony cutting the price tag is out of the question considering the losses they are already receiving. And none of their big-time exclusives have showed up yet.
 
Params7 said:
I really don't know why people could even fall for it now. Sony cutting the price tag is out of the question considering the losses they are already receiving. And none of their big-time exclusives have showed up yet.
Click to expand...

Maybe they won't even show up considering PS3's present condition in the market!!!
And with Microsoft kicking their asses who know's those exclusive's might turn into 360 exclusives.:cool2:
 
There's already talk going around that Peter Moore will brandish a new tattoo this coming E3. I just wonder which PS3 exclusive game will be the next to fall. Most claim it will be MGS4(With Konami finally admitting that it's possibleto bring it to the X360 and IGN saying it will come).
 
Back
Top