Sony President - 'Revisiting PS3 Strategy'

Choice quote: "Sales assumptions change"

Posted by Staff
Ryoji Chubachi, Sony's president
Ryoji Chubachi, Sony's president
The Financial Times reports today that Sony is re-examining its PS3 price/volume budgeting process - this follows[url=http://news.spong.com/article/12320] news yesterday of GameSeek's sub-£390 PS3 deal.
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The FT reports that, in an effort to ignite sluggish PlayStation 3 sales in Japan and the crucial US market, the company is looking closely at its pricing strategy.

Ryoji Chubachi, Sony's president, said yesterday: "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." Mr Chubachi also said he thought Sony had hit its bullish shipment target of 6 million consoles at the end of March.

As of this morning no one at SCEE was able to respond to our call for clarification on the European pricing.

The FT claims that, “Analysts have said that Sony could lower the price of the PS3 by $100 (£50) in the US and €100/ £68 ($136) in Europe in time for the crucial Christmas sales period.”

Yuji Fujimori, an analyst at Goldman Sachs, has increased the operating loss forecast for Sony's games division to Y70bn ($591.4m) from Y60bn for the current fiscal year ending next March.

SCE President Kaz Hirai, said yesterday, "We're looking at it as a marathon rather than a sprint…The real test of a platform's [longevity] is in three years from now or five years from now."

Sony's games division in Europe is to cut up to 160 jobs (8 per cent of its workforce) with further announcements on the job losses due later today. Stay tuned for the latest on that.

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Comments

Showing the 20 most recent comments. Read all 36.
LUPOS 19 Apr 2007 14:44
17/36
tyrion wrote:
No built in HD-DVD either. This won't happen until at least 4x HD-DVD drives are available due to streaming bandwidths


OY! didn't even realize he said that. Yea, I've no delusions of included HD-DVD.

I will however be gettign an ELite (if i can find one) because I can sell my premium for 250 and the 120gig drive upgrade will be 180 on its own for a grand totaly of 430. Meaning I only spend $50(plus tax) and get a new console with a new one year warranty and the quieter DVD drive I hope :)
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Rutabaga 19 Apr 2007 14:48
18/36
LUPOS wrote:

I will however be gettign an ELite (if i can find one)

Why not get a PS3 instead?
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LUPOS 19 Apr 2007 14:54
19/36
Rutabaga wrote:
LUPOS wrote:

I will however be gettign an ELite (if i can find one)

Why not get a PS3 instead?


Um, I have a 360 to trade, I have many games for it I love. I'm not a fool ;)

I'll most likely get a PS3 before the year is out, but man can not live on motor storm alone. I'm actually having more fun playing the beta of shadowrun than I would with pretty much anything PS3 has right now. Compound that with crack down, gears, dead rising, oblivion, halo3 beta soon, and tons of other worthwhile games (BIOSHOCK!!!) and I cant see any other "Logical" choice.

When the holiday season rolls around and lair is out and maybe MGS4(though I doubt it) I will probably get one. But as it stands now its a waste. Plus all signs seem to point to a price drop by years end so I would be retarded to buy one now to not play it only to play it when its price comes down in 6 months.
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Rutabaga 19 Apr 2007 15:02
20/36
Fair point.

I actually meant to quote your "and the quieter DVD drive I hope :)" for my Why not get a PS3 comment? So it kind of lost it's intended meaning ;-(
headcasephil 19 Apr 2007 15:02
21/36
and i did not put in all so hear wee go
ps3 console $599.99 uk price £399.99 with free xmen br film if you get it from gamestation
hdmi cable $ 29.90 uk price £15.04
extra controle $40.00 uk price £34.99
one game $59.99 uk price £39.99
total $729.88 uk price £455.02

Xbox 360 console $399.99 uk price £279.99
Xbox 360 HD-DVD Player $199.99 uk price £134.99
Xbox 360 Wireless Controller $37.99 uk prick £24.99
one game $59.99 uk price £39.99
total $697.96 uk price 479.96
i have not put the PS2 memory card adapter coz you do not need it
and you laft out the xbox hd drive if you are doing like for like
so usa pay a little more for the ps3 but in the uk if you are wanting to play hd fims its cheaper than getting the xbox and then getting the hd drive
the bild on the ps3 is better than the xbox i have not had it over heat like the xbox so stop the ps3 hate coz it a bit of a boar now
LUPOS 19 Apr 2007 15:11
22/36
phil c wrote:

the bild on the ps3 is better than the xbox i have not had it over heat like the xbox so stop the ps3 hate coz it a bit of a boar now


Ai, but you don't "need" an HD-DVD drive to play games. You need games to play games. 360 wins out at both price and catalog at the moment and it doesn't appear that is going to change any time soon.

No hate.
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tyrion 19 Apr 2007 17:13
23/36
LUPOS wrote:
Ai, but you don't "need" an HD-DVD drive to play games. You need games to play games. 360 wins out at both price and catalog at the moment and it doesn't appear that is going to change any time soon.

Never does this soon after a launch. The 360 had a drought of new games that was partially alleviated by Live Arcade titles, just the same as PSN titles are helping to alleviate the PS3's games drought. We've played Blast Factor more than any other PS3 games so far.
LUPOS 19 Apr 2007 18:55
24/36
tyrion wrote:
Never does this soon after a launch. The 360 had a drought of new games that was partially alleviated by Live Arcade titles, just the same as PSN titles are helping to alleviate the PS3's games drought. We've played Blast Factor more than any other PS3 games so far.


Completely agree. The difference beign developers bet on the safest horse so to speak. In the last round it was obviously the PS2, now things are switched up a bit. The 360 doesn't have a "huge" lead but its got enough of a lead that when combined with the PS3's perceived poor reception (fun phrase to say) it makes the 360 the most appealing to develop for. Not counting the Wii of course which isn't really in direct competition IMHO.

Very curious to see how this whole thing unfolds.
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Jerome 19 Apr 2007 20:50
25/36
Lol beater choice. What HD component cables are you referring to that cost $60? That's ridiculous. A HDMI cable does not cost $100 either. Prices have gone way down for HD cables. Those prices are outrageous. Who would pay that much for those cables right now? Crazy.

Why would someone want a PS2 memory card adapter? The space the PS3 gives you for PS1/PS2 saves should be used for the games you actually still play frequently like a God of War or Final Fantasy, or a very scratched up disc the PS2 cannot read. Not nearly every game in your possession. The BC was not meant to be used in that particular manner.

Why is another controller needed except for replacement? The best PS3 games right now are pretty good online or strictly single player. There's nothing a friend could really do except watch you. I mean who plays Resistance's offline multiplayer. That's BS.

The PS3 isn't about multi-player right now. Games like Oblivion, Motorstorm, Resistance, and Virtua Fighter 5 are for people who like to play alone.

Also the premium 360 isn't meant for HD gaming or downloads of off XBLM so why is it even in the arguement? That's why the Elite 360 was made. The best current 360 model is meant for gaming not your living room. While the PS3 on the other hand, right now is vice-versa.
Andy 20 Apr 2007 12:15
26/36
Allow streaming and playback of DivX and Xvid, and sales will increase.
Mark 20 Apr 2007 14:31
27/36
Alex, you should really look elsewhere if you are going to factor the cost of an HDMI cable into the overall price of a PS3. Best Buy's HDMI cables are ridiculously overpriced. You can buy them elsewhere for around $10.00. I have tested them against the overpriced Monster HDMI cable and see no difference in picture or sound quality. Furthermore, a complete price comparison would more closely resemble:

360 Premium $400.00
Wireless Adapter $100.00
HD-DVD Drive $200.00
Extra Controller $50.00
Game $60.00
Total: $810.00

PS3 60GB $600.00
Extra Controller $50.00
Game $60.00
HDMI Cable: $10.00
Total $720.00
Exequiel 20 Apr 2007 15:25
28/36
Whats the Point of ADDING THE HD-DRIVE OF 200$ TO THE COST OF THE XBOX360?

I don't need an dvd-drive, and as for your 10$ PS3 CABLE, NO EVERY CONSUMER IS WILLING TO WAIT 2 WEEKS FOR SHIPING AND HANDLING FROM EBAY * CUZ YOU FIND IT CHEAPER ANYWHERE IN A STORE!*

MArk, it's obvious you just want to complement the PS3 Price level,
Am no xbox360 fan, i practically don't even play Consoles anymore but common man, THE PS3 IS WAY MORE EXPENSIVE then what you are stating Mark, just admit It!
Rick 20 Apr 2007 16:19
29/36
PS3 is just too much, its £400. Theres no way ill spend that kind of money on a console, i would have to be crazy to spend that much. I like playstation but im going over the Microsoft xbox 360 as they are cheaper.
MK24ever 20 Apr 2007 17:46
30/36
The price is right. You are paying more but you are also getting more. You can't compare prices directly, that stupid, it's like to say that a €75.000 mercedes is worst than a €50.000 Renault, it's not about the amount of money but about the quality and performance of the product. I'm from Portugal and I had no problem to pay €600 for the PS3 (And no, I'm not rich, not even close to it), I don't understand why US and Japan and UK that are countrys with a level of life about 5x better than ours in Portugal complain so much about it's price, like Kutaragi said, if you want more money you should work more, you can't ask for a Mercedes if you don't do enough to have it. What is happening is that people want to buy a top notch product at the price of an obsolete one (x360...) or at the price of a Calculator machine (Wii)... With PS3 you pay for what you get, if Sony makes the price lower that the current price they will offend all the people who allready bought their product, I suggest Sony to be carefull about that. Let the AAA games come out and will see how things will be, if Sony don't sells what they expect than yes, they must try to lower the price a bit because if not softwar-houses won't be making games for a small installed base of PS3 users.
rfom 20 Apr 2007 20:58
31/36
"component vide cables=60.00 or HDMI=100.00"
rubbish - USD20 at most for HDMI
You neglect to add that the USD235 extra includes
1. The entire PS1 / PS2 library
2. Far better quality
3. Free multiplayer
4. Better picture quality through HDMI and wifi
5. A much bigger hard disc (5 times) for those demos or downloads

Thats before you even reach the much-maligned BR, which admittedly is not needed for gaming yet
zoydwheeler 20 Apr 2007 20:58
32/36
?
zoydwheeler 20 Apr 2007 21:01
33/36
hahahaha you f**king idiot
lestat_croatia 22 Apr 2007 07:04
34/36
Does this means low quality of Playstation 3
due bad sales he he ps3 is alredy bad quality
with large number of defect .
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AeclipseK 22 Apr 2007 14:44
35/36
The real reason is that there is no games for the ps3. Everything comes out for ps2 first and the 360 keeps getting new games. I am tired of bying the ps2 version first and then the ps3 version 3 months later. god damn cant wait till msg and grand tursmo.
wtf 23 Apr 2007 02:53
36/36
Everyone seems to work in retail these days. Everytime a PS3 article comes up about sales, 90+% of comments that people make say they work in walmart or best buy. what a load of b******s. "I work in here and there are loads of PS3's on the shelves"
If there are no PS3's on the shelves what does it suggest to you? High demand or low shipment rate.

The Wii is selling strong and you don't see many of them so who is buying the Wii? Is it non-gamers? a mixture of Nintendo faithful and non-gamers? or just the Nintendo faithful? There are least near 20 million Nintendo lovers around the world and with Paper Mario and Zelda selling strong this suggests to me that its still the Nintendo faithful buying it. I would like to know if the Wii can surpass the cube in world-wide sales? If Wii sales get to 20 mill would the Wii sales come to a halt?

Nintendo fans haven't had a console for a few years, there wasn't much on the cube and for the past few years there has been virtually nothing on the cube, so its not suprising to why they are so keen to buy a Wii. With PS2 players they are still playing it and are waiting for the need to jump to PS3 but this maybe a while yet as PS2 is still going strong.
The Wii is losing its apeal and you are only getting nintendo faithful buyin it but I don't think the game sales will be strong, they're still waiting for a big game to come and that might not be for some time. My mate is a Nintendo fan and he has been on hold to buy a Wii untill the games come out that he wants. He said he would have Zelda but he really is waiting for Mario Galaxy and Metroid but those games haven't shown signs that they'll be any good. I got him to admit that he has been dissapointed with the library of Wii software, there is nothing besides Zelda that he wants and all these fun motion games aren't apealing to him. He has been saying if he had the money he would get a PS3.
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