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Sony exec open to price cuts, MS and Ninty pee in pants

January 31, 2007
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You know how everyone was bitching about the PS3 being too damned expensive for its own good? And how arrogant and high and mighty Sony were acting for proclaiming that the next-gen starts when they fucking say so? Well, they may be half right once they start doing these price cuts. It’s almost unheard of that price cuts would occur so soon after a system’s launch, but I guess those PS3s on the shelves pictures finally pissed someone off.

MS and Ninty will most likely put up a brave front, but they’ve gotta be worried about this, since by lowering the price tag Sony’s taking away one of the biggest hurdles for gamers who want some PS3 lovin’.

The question is of course, when, and by how much? Sony reportedly loses $300 per unit, so can they stand to lose even more at this point? Let’s say they knock off a hunnerd dollars from the hefty $600 price tag, would that make it any easier for you guys to pick one up?

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19 Comments leave one →
  1. January 31, 2007 9:45 pm

    As long as the 20gig PS3 (drops $100 too, and) matches price with the 20gig 360, Sony wins (pound for pound with that Blu-ray player).

    I’d hit it.

  2. January 31, 2007 9:51 pm

    Agreed. The price in the UK is going to be extortionate (around about $850 at current rates), Sony will have to cut it to get folks other then hard-core gamers and videophiles after a cheap blue-ray player to buy it.

    I think Sony will hold on to the high price until they finished launching the PS3 and have managed to get a decent supply chain going. Maybe expect a drop for around about Black Friday ’07 in the States. Could earlier or later in Europe depending on initial sales this side of the pond.

  3. frisby permalink
    January 31, 2007 10:51 pm

    maybe sony will bundle the PS3 with killer apps and add some free points to the deal. That way they still get the money for the console, and get people buying online games sooner.

    PS3 with MGS and $100 worth of PS3 points to download classic PS games.

    Sounds like a better deal all around.

  4. rashadlogic permalink
    January 31, 2007 10:53 pm

    The PS3 is going to cost about 400 dollars.

  5. Linxdev permalink
    February 1, 2007 12:35 am

    Yep if it does go down to the price of the 360 then I would buy one over the 360. I will not replace the Wii. My guess is that MS may drop their price too.

  6. February 1, 2007 2:29 am

    Msoft has less to gain from a price drop. If they go low, i think it’d lose the image of being high tech hardware. Well i’m thinking about the Core going into $200 territory, i guess the premium in the 300s would be nice. For Sony though, 400 is their sweet spot on the 60gb. Then lowball the 20gig version or drop it altogether.

    I’d prefer a PS3 over a 360 because i think it’ll end up with more interesting exclusives than MS, and Sony will probably be the last of the 3 companies to roll out their next system. That future-proof thing means something to me.

  7. Linxdev permalink
    February 1, 2007 11:36 am

    As long as Sony sits idle and Nintendo and MS react they will lose more and more market share. Now is not the time to be open about the the thought of thinking about dropping the price. Now is the time to do _something_ to gain market share. You don’t have to drop the price but you should not sit idle.

    Years ago in Fortune magazine there was an article about that top 5 things or 10 things that a CEO could do that was bad. I can’t remember the mag or the article but I do remember that in that list was failure to execute. Winning a race is all about executing a plan. Sitting idle while others eat up your market share is about failure and failure to execute a plan. A plan to get back that lost market share.

    I did not win the lottery so I can’t buy every console at once. Since I spent my money on Wii it will be at least a year before I get a new one. I feel that maybe there are others in the same boat. They looked at the options and bought something else. They may not have the money to invest in a PS3 even if the price drops by $100. I don’t give a damn about Blue-Ray. I do not watch movies and I do not buy them. The only ones I’ve bought are kids movies for the children. I do not see HD or BR version of Spongebob yet.

    The PS2 has exclusives. The PS3 is losing them. !st plan of action would be to make sure Square Enix does not go to MS. Stick with PS3. Next drop the price maybe throw in a game. Don’t sit on your ass figure out a plan and execute it.

  8. February 1, 2007 11:57 am

    I think Linxdev is partly right: the time for sweet deals in a first launch is now gone. And despite all the talk about MS wasting their one-year headstart, they did deliver a couple of killer games for the 360, and with a solid online multiplayer to boot.

    Personally, the choice for my next console is not going to be about the hardware, but the software. That is why even if Sonly lowers the price of the PS3 to that of the 360, I will still buy the 360 this coming Spring, and that is because I really want to play Lost Planet and Gears of War (thank you very much, Jack!!). 360 & Wii: a match made in Heaven!

    I think Sony is being cornered into having to slash the price of their console, and they shouldn’t. Their console demand has to be justified now by a must-have title! But there isn’t one yet…

    The danger Sony faces by slashing their price by even just $100 is that it makes recuperating a profit even more difficult. MS is already starting to make a profit on the 360 due to GoW and their LIVE Arcade sales, but it took them nearly a year to get to that point. Nintendo, on the other hand, even if it started losing ground in sales to Sony and MS, already is out of the hole on its investment (heck, did they EVER get into that hole in the first place??). For Nintendo, it’s all profit from here on, even if they get pushed back to third place in video game sales, which is unlikely anyway.

  9. Linxdev permalink
    February 1, 2007 12:29 pm

    I love my PS2 but there is a part of me that wants to see the PS3 fail because of the arrogance of the Sony during the launch. I want to love it I just can’t get over their attitude.

  10. February 1, 2007 12:54 pm

    I think I am over Sony’s attitude (even though they still are at it, it seems! Check out the “Wii is an impulse buy” statement), but honestly, the 360 does offer a lot more right now, regardless of the hardware cost.

  11. Linxdev permalink
    February 1, 2007 1:01 pm

    Right. It is software that matters. I think Sony still thinks it is hardware. It could be 8mhz or 3.0GHZ if there is no software it does not matter.

  12. Linxdev permalink
    February 1, 2007 1:07 pm

    Sorry for last comment. It is starting to sound like a broken record. Software, Software, Software, Software… Well DuH!

  13. February 1, 2007 11:02 pm

    Fellas, i hope it sinks in this time, but as i’ve been saying forever: Sony is gearing up for their PAL launches right now. They aren’t sitting on their ass. The Japanese guy who spoke of a price drop said it’s something they’ll consider within the “break even plan”, meaning a price drop (for Japan, most likely) and other strategies to get units moving quickly, increase the attach rate, and get dat dolla.

    Let’s read all the facts next time, chaps.

    Everyone — EVERYONE — is arrogant in the game biz. Sony happens to be #1 and many people think they’re sinking, so their arrogance gets singled out. But don’t just call them arrogant when everybody else is, too. Neither Nintendo or MS are modest mice.

    I’m in Linx’s boat; i picked Wii for the forseeable future and its software isn’t there yet. Some is getting here in the Spring — just like all systems. PS3 included. Sony may seem hardware focused now because they just launched and they wanna attract techies, but they’ve been more focused on software than Nintendo has so far. Of the two, Sony has the largest number of exclusives and announced games period. Nothing to worry about for either side.

  14. Linxdev permalink
    February 2, 2007 10:18 am

    And I thought I was sailing this sea alone. Maybe I can get some sleep and had the tiller over to Rollin.

  15. Sum0 permalink
    February 2, 2007 3:59 pm

    The thing with the PS3 is that there’s been so much bad press, I’d feel dirty for buying it. (Not that I could afford either it or the 360, so price is a moot point, but naturally it’d be easier to afford the 360). Surely there’s no smoke without fire? I’ve trialed my friend’s X360, and it’s a very solid system, and there are more and more notable games coming out. On the other hand, I can’t see any reason for spending £155 extra on the PS3. I don’t have a HDTV, so BluRay’s a waste. The only PS3 exclusive that appeals to me is MGS4, which may well end up on the 360 anyway. On top of all that, despite the PS3 being a year ahead of than the 360, the best looking games in my opinion belong to the opposition.

    So… what’s the point in a PS3? I don’t see Microsoft and Ninty having much to worry about in the case of a price drop: and that’s not misplaced arrogance. They’ve got solid foundations so far.

    Bottom line is: even with a price drop to match the 360, if there’s no killer games to come on the PS3, then I’d still pick the 360.

  16. February 2, 2007 8:12 pm

    It’s pitiful that people continue to compare a 2 1/2 month old system to a 14 1/2 month old system. It’s another case of people’s dislike for one thing turning into a fabricated and exalted appreciation for another.

    Yea the games are on 360, yea the hardware is cheaper, yea BluRay is a waste, yea the PS3 games aren’t here yet. This is all relative to the period and the person. You’re not considering the variables.

    You don’t have an HDTV (or HD monitor) now, but what about in 2008 or 2010? PS3 doesn’t have many games now, but what about a month from now? MGS4 is supposedly the only game that appeals to you, but that’s you. The games industry doesn’t consist of you in this point in time.

    Same with Wii. WarioWare is fine, but that’s not what i bought the fuckin thing for. What’s the issue here? On one system a big game among lesser names is a bad thing, on another it’s “real fun” and quality and consistency. What the duck? Both systems’ future releases parallel each other. What’re you looking forward to on Wii? Mario, Metroid, AC, MKart — you know, Nintendo games; and the occassional (and i do mean occassional) offbeat title that may or may not be worth 50 dollars. And on PS3? Gran Turismo, God of War, Twisted Metal, FF — you know, Sony stuff; and the occassional uniqueness like Eyetoy or Guitar Hero that may or may not be you’re thing.

    [Soapbox] I’m not down on the 360, but what are these elusive exclusives that are so unmissable? There’s absolutely nothing that really makes it stand out to me. I hate to say it, but it has a TON of exclusive… war games. Man, those are find to find. If it weren’t for multiplatform titles, the 360 would be the most monotonous console on the market. If it isn’t already. Like you say, Ryan in disguise Sum0, it’s solid. Not exceptional, not extraordinary. Wii is exceptional, PS3 gives off airs of potential superbness. 360 has to live with being a solid Halo-box with solid fringe titles.

    Ahoy, bias incoming on the starboard side.

  17. Sum0 permalink
    February 5, 2007 4:50 pm

    Perhaps you’re right. It’s true that when it came out, I wasn’t a fan of the 360: “It’s a console for racing games and sports and action adventures,” I proclaimed. Admittedly, with the exception of the odd quirky game like Viva Pinata, which I understand is quite good, that it all it is: but they’re damn good racing/sports/action games.
    So yeah, it is unfair to criticise the PS3 before it gets into its stride. In a year or two’s time, a landslide of killer games could bury the 360. But a lot of the big games on PS3 are also on 360: for £155 cheaper. In my eyes, the 360 has an advantage.
    …perhaps I’m being overly biased. I must admit that, if Sony simply find a way of repeating the string of exclusive hits they’ve had on PS2, then the 360 is pretty much buried. But only if. The outcome rests in whether the Kojimas and the Wrights and the Molyneuxii fall in love with the PS3.

  18. Linxdev permalink
    February 5, 2007 5:03 pm

    Katamari…..

  19. February 5, 2007 5:32 pm

    Kudos, Sum0. You see that, people? That’s why i started this site, so we can lift the veil of bias from our eyes a little bit and think conscientiously. Thanks for making me feel justified, and for not sticking to your guns just for the sake of doing so.

    I should explain myself (slash rant) a little bit. The beef i had with 360 games and the niche they fall into came from reading the latest issues of Game Informer and EGM, and you know all the new exclusive scoops they have are of army-type shooters for 360; and possibly PS3 after a number of months. It’s just so tired already, i’m sick of seeing that. Just like i’m sick of seeing “New Zelda in 2008?” or “Mario poised for comback” and “New Tingle RPG screens!”.

    I like Zelda, i like Mario, i like all Nintendo series — but goddamnit, it’s like they’re treating me as if i were one of the fanbots who only pop wood for something touched by Miyamoto. I want newness, i want creativity, i want new kinds of games on my Wii. You know what? If Army of Two or Rainbow Six Vegas were on Wii, i’d dig them a lot more, both for the fact that it brings something alien to Nintendo’s console and makes Microsoft less “guilty” of just pandering to that specific group of gamers.

    You’re so right. Not one of us knows how Sony will handle everything once they’re settled in (ie. launched everywhere), so it is tough to say anything on the subject. But if they do get their stuff together, 360 is caught between a PS3 and a hard place. I believe they will, but that’s just me. I’m open to the possibility of them tanking, too, i just see more chance of something positive happening for them. Plainly because i see them doing the same scheme as Microsoft, but better and less specific.

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