Interviews// Sony Europe Boss David Reeves
I’m not going to answer your question...
David Reeves: Yes I do. People will look at this and be critical compared to what the U.S. are doing. But we actually told the trade this six weeks ago under NDA, and they are over the moon – they can’t wait to start. I think Woolworths are going to start with something even bigger, and maybe others too.
SPOnG: But a spanner in the works is that GameStation, pre-value pack, was selling PS3s for £399 with a game. There must be something going on when retailers voluntarily slash their margins. Do you think we’ll see more retailers dipping under the £425 RRP?
David Reeves: I think, in the U.K., yes. In the U.K., there’s intense competition. You’ve seen the stated intention of Asda, in the last couple of weeks, to take as much market share as they can and become market leaders in the games industry, or something to that effect.
The situation in the U.K. is unique – it is so competitive. People are going to come out at £399 with a game, to get people into the store to buy another game and another game. That’s the name of the game.
In France, for example, you can’t do that because there’s a law on price-control. In Germany, they hold the prices – you can even go onto amazon.de and they won’t pull the prices down or put offers in. In Switzerland, too. Even in Russia, they’re not discounting. I do think that the UK is a unique situation and you’re going to see all sorts of deals.
SPOnG: Do you think that’s purely a function of our extensive retailer scene?
David Reeves: In Germany, they wait for us to go to them and say: 'What is the offer this week?'
I think one of the big reasons the videogames industry has grown in the UK, and it continues to outperform any other market, is the strength of the retail trade and its competitive nature. I think they do a fantastic job. They market the hell out of the games industry and they make a lot of noise. And that’s what’s needed.
SPOnG: Everything you’re saying indicates there will be a price-cut before Christmas – can you comment on that?
David Reeves: We don’t plan these things just from one week to the next – we look at these things in the context of an overall plan and overall budget. Our plans are in place – we know exactly what we’re going to do and when we’re going to do. We knew what the Americans were going to do and they knew what we were going to do. In Japan, they’ve also done a bundle – with Hotshots Golf I think.
I’m not going to answer your question, because that would get me into tremendous hot water. But we have a plan and we’re going to stick to it. We are confident but not arrogant about reaching a very, very good installed base on PS3, and having the same momentum that we had with the PS2.
We’re not putting our heads in the sand – we know it’s not selling that well, but we know that it’s selling according to the targets. Ray Maguire (managing director of Sony Computer Entertainment UK) has this graph and he tells me whether it’s half a per cent above or half a per cent below – and it’s actually spot-on the graph.
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Comments
DoctorDee 19 Jul 2007 14:03
1/7
Asda comes out of hiding once a year. Claims that it will dominate the computer games market - gets an MCV cover and then goes away again without doing anything.
realvictory 20 Jul 2007 01:35
2/7
He makes it sound planned and under control, but that is irrelevant - what is relevant is what people actually think. Whether there's a reason or not for something, if it looks bad, then it's a problem.
Making a bundle and not putting the price down isn't intrinsically going to make more people buy a PS3 - because the point was, it was too expensive in the first place. You get more in a box now, but it's still the same price. In some shops, you get any game included for £399. Why would anyone want a bundle, which is inferior to what you can already get?
The Wii was too expensive, but it was within a range that was affordable. The XBox 360 has had an advantage since the PS3 launch, as now it's not the most expensive games console.
If everyone wanted Blu-ray, then people might see extra value, but if they don't care, it's unnecessary extra cost. Speaking of which, my opinion is that, although people "want" a PS3, they don't want one enough - they need a significant reason to get one - a reason to pay £400 for what's basically a toy. People (well, not all people) who buy these things aren't as stupid as they are made out to be - it's a better deal now, but if I could afford it and/or if I wanted one enough, I would have bought a PS3 already. To me, at least, the new price doesn't seem much different.
Making a bundle and not putting the price down isn't intrinsically going to make more people buy a PS3 - because the point was, it was too expensive in the first place. You get more in a box now, but it's still the same price. In some shops, you get any game included for £399. Why would anyone want a bundle, which is inferior to what you can already get?
The Wii was too expensive, but it was within a range that was affordable. The XBox 360 has had an advantage since the PS3 launch, as now it's not the most expensive games console.
If everyone wanted Blu-ray, then people might see extra value, but if they don't care, it's unnecessary extra cost. Speaking of which, my opinion is that, although people "want" a PS3, they don't want one enough - they need a significant reason to get one - a reason to pay £400 for what's basically a toy. People (well, not all people) who buy these things aren't as stupid as they are made out to be - it's a better deal now, but if I could afford it and/or if I wanted one enough, I would have bought a PS3 already. To me, at least, the new price doesn't seem much different.
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DoctorDee 20 Jul 2007 08:55
3/7
realvictory wrote:
Making a bundle and not putting the price down isn't intrinsically going to make more people buy a PS3 - because the point was, it was too expensive in the first place. You get more in a box now, but it's still the same price. In some shops, you get any game included for £399. Why would anyone want a bundle, which is inferior to what you can already get?
I have to disagree. The bundle gives you an additional controller - and two good games. That is a real saving - very few people would buy a PS3 without a game, and most people would choose one of the games included in the pack. The fact is, you can walk out of the shop with the console, something to play on it and the means to play with your brother/pals and you will have spent less money. There's no way that is not a saving. Since the bundle has the same rrp as the console previously had, shops will discount the bundle exactly like they discounted the console - so you'll see it for £399 either immediately, or soon after launch.
While it may not appeal to you, it will appeal to some people. That is likely to increase sales - not necessarily greatly - but then the console is selling as well as PS1 and PS2 did, and we all know what they went on to achieve.
hollywooda 20 Jul 2007 16:27
4/7
"they’re going to stick with the PS2, because they still enjoy the games, don’t have a high-definition TV and don’t necessarily want to play Blu-rays"
Thankyou!.... see Sony thats why the PS2 is successful!... its a games console!?!?... 1st!....with games....you see?..no?...
Thankyou!.... see Sony thats why the PS2 is successful!... its a games console!?!?... 1st!....with games....you see?..no?...
deleted 21 Jul 2007 18:45
5/7
come on there is no price drop, and the deal is crap,
hmv currently offer,
a PS3, Any 2 Games, An Extra Sixaxis, HDMI Cable, Any 2 Blu ray Moviesand a voucher book with £100.00 discounts for ----------- £425.00 err isnt that what sony is giving us minus the bluray discs and hdmi, yes it is so if hmv can do that and is either making or breaking profit, then sony can do better, they should of given us that pack for £350 and ps3s would fly off the self even 399.99 would change then mentality thats its over £400.00 quid, and it could compete with the elite?
hmv currently offer,
a PS3, Any 2 Games, An Extra Sixaxis, HDMI Cable, Any 2 Blu ray Moviesand a voucher book with £100.00 discounts for ----------- £425.00 err isnt that what sony is giving us minus the bluray discs and hdmi, yes it is so if hmv can do that and is either making or breaking profit, then sony can do better, they should of given us that pack for £350 and ps3s would fly off the self even 399.99 would change then mentality thats its over £400.00 quid, and it could compete with the elite?
tyrion 24 Jul 2007 07:34
6/7
haritori wrote:
a PS3, Any 2 Games, An Extra Sixaxis, HDMI Cable, Any 2 Blu ray Moviesand a voucher book with £100.00 discounts for ----------- £425.00 err isnt that what sony is giving us minus the bluray discs and hdmi, yes it is so if hmv can do that and is either making or breaking profit
HMV are not making a profit on that bundle. What they are doing is driving business and encouraging repeat business with the vouchers. They are banking on making back their losses on the PS3 offer with the increase in profit on the repeat business.
DoctorDee 24 Jul 2007 10:53
7/7
haritori wrote:
come on there is no price drop, and the deal is crap,
The deal is not crap. As for no price drop, it is important for Sony, for pride, honour or whatever not to drop the price right now. Bu they have delvered a far more appealing package for the same price... it's NOT a price drop, but it IS a value increase. You can argue all day about how it isn't... but you'll be wrong all day long.
even 399.99 would change then mentality thats its over £400.00 quid, and it could compete with the elite?
But the fact is, retail were selling the stanf alone PS3 for £399 - they'll sell the bundle for £399.
So you'll get exactly what you are asking for.