Sony Chief: No PS3 Price Drop Before June 2008
PS3 ‘a lot more difficult to cost reduce’ than PS2
Jack Tretton
Sony Computer Entertainment America bossman Jack Tretton has gone on record to clearly state that there will be no price-drop for PS3 until at least June 2008.
In an interview with Game Informer magazine, when asked if price drops for the PS3 would be "as soon or as drastic as they were for the PlayStation 2," Tretton answered with a clear, "No."
The PS2 originally launched in the US in October 2000 at a price point of $299. The first price reduction on that machine, when the price was slashed to $199, was made by Sony in May 2002. Hence, if Tretton is to be believed, the PS3 is going to continue to set you back $599 (or the planned £425 in the UK) until well into the summer of 2008.
Tretton claims that the massive investment in research, development and hardware means that the PS3 is far “more difficult to cost reduce" than was the case with the PS2.
Tretton, predictably, doesn’t see this as a problem for Sony, telling the interviewer that consumers who do buy a PS3 for $599/£425 will “clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay."
Are you happy to spend £425 on a PS3 this coming March? Or do you plan to wait around for at least fifteen months or so until we see any significant price drop (according to Sony)?
In an interview with Game Informer magazine, when asked if price drops for the PS3 would be "as soon or as drastic as they were for the PlayStation 2," Tretton answered with a clear, "No."
The PS2 originally launched in the US in October 2000 at a price point of $299. The first price reduction on that machine, when the price was slashed to $199, was made by Sony in May 2002. Hence, if Tretton is to be believed, the PS3 is going to continue to set you back $599 (or the planned £425 in the UK) until well into the summer of 2008.
Tretton claims that the massive investment in research, development and hardware means that the PS3 is far “more difficult to cost reduce" than was the case with the PS2.
Tretton, predictably, doesn’t see this as a problem for Sony, telling the interviewer that consumers who do buy a PS3 for $599/£425 will “clearly see the value and not only want to buy one for $599, in some instances they're willing to pay ridiculous prices to buy one on eBay."
Are you happy to spend £425 on a PS3 this coming March? Or do you plan to wait around for at least fifteen months or so until we see any significant price drop (according to Sony)?
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Comments
SCiARA 23 Jan 2007 10:15
1/11
Why would Sony confirm price cuts such early on? It would be suicide to confirm as everyone will just wait for the cut rather than paying top dollar for it at launch!
SCiARA 23 Jan 2007 10:50
2/11
Apparently, reports from Japan are suggesting retailers are reducing PS3 prices by 20%?
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majin dboy 23 Jan 2007 10:58
3/11
i really think sony have priced themselves out of the casual market,UK anyway.a price drop would be an admittance of this.
miacid 23 Jan 2007 12:01
4/11
I must admit I was planning on waiting till later in the year in the hope that the price would drop in time for Christmas.
tyrion 23 Jan 2007 12:45
5/11
SCiARA wrote:
Apparently, reports from Japan are suggesting retailers are reducing PS3 prices by 20%?
Only of the 20GB model, as far as I know. Means that either, the 20GBs are the only models they have in, or they are trying to shift the 20GB model in order to stock more of the 60GB model which is selling well. I dunno which it is, but it's only the 20GBs that are being discounted.
alexh2o 23 Jan 2007 15:48
6/11
Im really surprised they didnt look at the original xbox! that launched here for £399 and no1 bought it, was priced way too high for consumers here, so weeks later they dropped it to £299 and started getting sales! I really doubt many people will buy a ps3 at £425, its just too much! parents will see the wii and 360 sub £200 and just go for those... students wont be able to afford it... the elders will know to wisely spend their money and ignore it... so it pritty much leaves rich people and blokes in their mid 20s with some cash to spend. Thats not a huge market!
DoctorDee 23 Jan 2007 18:29
7/11
tyrion wrote:
it's only the 20GBs that are being discounted.
Not surprising, the 20Gb is poorly considered... Just Sony trying to do something to reduce the price. That MAY work in the US or Europe, but in Japan I can't see people making a small saving to accept an inferior product.
schnide 24 Jan 2007 12:39
8/11
alexhooren wrote:
Im really surprised they didnt look at the original xbox! that launched here for £399 and no1 bought it, was priced way too high for consumers here, so weeks later they dropped it to £299 and started getting sales! I really doubt many people will buy a ps3 at £425, its just too much! parents will see the wii and 360 sub £200 and just go for those... students wont be able to afford it... the elders will know to wisely spend their money and ignore it... so it pritty much leaves rich people and blokes in their mid 20s with some cash to spend. Thats not a huge market!
I've said it before and I'll say it again - PS3 is not just a games machine like the 360 (for all intents and purposes) is. The PS3 is being positioned as a fully-fledged media centre.
It's Blu-Ray as well as a games machine. And it's "only" £400-odd. How many people do you know are getting rid of their CRT TV's to get plasma and LCD screens? They cost a lot more than a PS3 and somehow people are managing to afford those.
So what's another £400 for the latest machine to show it off?
Whether you agree with that train of thought or not, and I'm not even saying I do myself, that's the rationale of the potential PS3 market who'll be driving sales before a killer app arrives.
Nunu 20 Mar 2008 15:51
9/11
Well, in view of the global market turmoil raging through the western world, I expect consumer spending to start slowing fairly soon. This will have a knock on effect on console sales everywhere. The Xbox 360 pple are being fairly pro-active with their pricing strategy and are moving it downwards. The Wii still sells like hot cakes and is viewed as great for the price. PS3 on the other hand is risking a dent in it's sales if it doesn't do something soon, especially in the US (and it's still viewed as a game console, not a blue-ray player, by the majority of the "little people" -which critically puts it into a different product segment). I would anticipate a 10% reduction just to, at least, meet current consumer sentiment, possibly within the next month or two (wait till they do their finance review for the quarter ended 31 March. The directors will be looking at the numbers at the start of April and reaching a decision before the end of the month) Survival is key for Sony, because it's other product divisions are fairly average in performance.
James 6 May 2008 22:44
10/11
I can’t see the PS3 dropping in price again until after summer 2008, for a little under £300 you get a lot of hardware – Bluray for example. Can only see a reduction in response to any further price reductions of the Xbox 360…
I found this site www.consolecomparison.co.uk that updates you with the latest prices online from a load of retailers and made my search for the cheapest PS3 a hell of a lot easier!
I found this site www.consolecomparison.co.uk that updates you with the latest prices online from a load of retailers and made my search for the cheapest PS3 a hell of a lot easier!
sagar 24 Jun 2008 20:57
11/11
the sony ps3 has alot of hardware etc. but id rather wait for a price drop. i know its long, but 425pounds is just too much! i got my ps2 when it went to 120 pounds, which was fare, i want to know if the ps3 drops to around 200, then im certainly getting one