Sony CEO dismisses price cut chatter on PlayStation

[idahoblue]

Probably old, but I couldn't find it. Lock, mock etc if my search fu is weak.

Source: http://www.reuters.com/article/techn...5670C120090708

SUN VALLEY, Idaho, July 7 - Sony Corp Chief Executive Howard Stringer brushed off concerns that the PlayStation 3 video game console is too expensive, and said the company is unlikely to sell parts of its business amid the recession. Stringer, arriving at the Allen & Co conference in Sun Valley, Idaho, on Tuesday, described recent comments about PlayStation's price by Robert Kotick, the CEO of video game publisher Activision Blizzard Inc, as standard business tactics. "He likes to make a lot of noise," Stringer said, when asked about the comments. "He's putting pressure on me and I'm putting pressure on him. That's the nature of business." Last month, Kotick told the Times of London that Activision might cease developing games for the PlayStation if Sony did not cut the price of the console, which competes with Microsoft Corp's Xbox and Nintendo Co Ltd's Wii. "When we look at 2010 and 2011, we might want to consider if we support the console," Kotick had said. Asked about the logic of not cutting prices, Stringer said, "I (would) lose money on every PlayStation I make -- how's that for logic." Stringer and Kotick are among the couple of hundred tech and media executives convening in Sun Valley this week for the annual confab. Asked about consolidation in the entertainment industry, Stringer said Sony was not looking to get rid of any assets. "We're learning to fuse content and hardware. This wouldn't be a time to get rid of either," he said. Stringer said he will be participating in a panel about the recession at the conference. "I see green shoots but it's a very light shade of green," he said. While the executive said that the economic situation in most of Asia is looking good and that he sees a bottom in China, it was still too soon to call a bottom to the recession overall. "It's very hard to tell whether this is just a minor trough on the way to recovery or a trough on the way to a trough," said Stringer.

[Drkirby]

So PS3 Slim will be $400. Got it.

[Mrbob]

boink

[Zhuk]

The editor adds the 'would' part he is probably oblivious to what Stringer is referring to is that Sony already loses money on every PS3 that it makes.

[HUELEN10]

So PS3 Slim will be $400. Got it.

I'll buy it at that price, certainly beats the shit out of a 60GB that sounds like a Train.

If it is less, so much the better. 400 USD was to be expected anyways.

[ShockingAlberto]

They're in an unenviable situation.

They can lose money or mindshare.

If they don't have a pricecut planned, they're going to be losing more and more ground as time goes on. It's leaving money on the table. And things don't change around much in this industry in the middle of the generation.

If they do have one planned, saying anything before they do it will cost them a lot when people buy loss-earning PS3s and not at-cost PS3s because they're waiting for it. Then when the price cut comes, who knows how long it will take to become profitable again?

Whether they do or they don't, I wouldn't want to be them right now.

[a Master Ninja]

"He likes to make a lot of noise," Stringer said, when asked about the comments. "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

How is Stringer putting pressure on Kotick?

[Mrbob]

The editor adds the 'would' part he is probably oblivious to what Stringer is referring to is tha Sony already loses money on every PS3 that it makes.

Indeed. Late night brain fart! Time to get some sleep!

[daegan]

How badly do Sony really need to sell more systems? They need their userbase to buy more software, not just from them but from 3rd parties. I don't really think growing their install base is going to make that problem go away.

[SolidSnakex]

This is a "What do you expect him to say" situation. No one at Sony can say "Yeah, we're going to price drop the PS3, just not right now". So you're only going to get these denials for now leading up to Gamescom or TGS where the price will be dropped.

[industrian]

How is Stringer putting pressure on Kotick?

No idea, but by now Kotick should have a clue as to who slashed his tyres.

[bigcheese]

This is a "What do you expect him to say" situation. No one at Sony can say "Yeah, we're going to price drop the PS3, just not right now". So you're only going to get these denials for now leading up to Gamescom or TGS where the price will be dropped.

Yea, exactly. I take this with a grain of salt.

[RBH]

The editor adds the 'would' part

Key thing to point out.

[NeoUltima]

So PS3 Slim will be $400.

Probably. They'll toss in some old games with it though to keep people from whining.

[Snowden]

Not all CEOs can be as loose-lipped as Balmer about what they're actually going to do in the future.

[xbhaskarx]

Since Stringer said "I (would) lose money on every PlayStation I make" that means he really said "I lose money on every PlayStation I make" right?

Doesn't putting it in parenthesis mean the word was added, as opposed to brackets which would mean the writer replaced some other word with "would"?

Edit, this is what I'm trying to say:

The editor adds the 'would' part he is probably oblivious to what Stringer is referring to is that Sony already loses money on every PS3 that it makes.

[laserbeam]

Not all CEOs can be as loose-lipped as Balmer about what they're actually going to do in the future.

It is not as if Sony has a million options. They price cut and lose even more money or not price cut and maybe break even.

Since Stringer said "I (would) lose money on every PlayStation I make" that means he really said "I lose money on every PlayStation I make" right? Doesn't putting it in parenthesis mean the word was added, as opposed to brackets which would mean the writer replaced some other word with "would"?

The Parenthesis does indicate an editorial decision to insert the word.

[Deku]

10 year plan etc. etc.

I think Sony is pretty serious about staying profitable and to stabilize their money losing PlayStation business, and though price cuts are surely on the horizon, doing it in the time frames suggested by the most rabid price-cut supporters here would be like calling for the sun to set at noon on the equator.

[xbhaskarx]

How is Stringer putting pressure on Kotick?

One could argue that by saying "He likes to make a lot of noise" Stringer is calling Kotick's bluff and daring Activision to actually stop supporting the PS3.

[ronito]

market share sony! market share!!

[Snipes424]

I'll buy it at that price, certainly beats the shit out of a 60GB that sounds like a Train. If it is less, so much the better. 400 USD was to be expected anyways.

Either I am going deaf or I can't hear my 60GB PS3 90% of the time, even when the extra fans come on it's pretty damn quiet. Maybe I just got lucky.

[dammitmattt]

I'll buy it at that price, certainly beats the shit out of a 60GB that sounds like a Train. If it is less, so much the better. 400 USD was to be expected anyways.

No it wasn't. Everyone here has expected it to be either $350 or $400. There's no other possible way they can come close to their expected numbers.

A slim PS3 SHOULD be less money because it will be smaller with less parts, just like the PS2 slim.

And my 60GB is quiet as a mouse...shame about yours.

[Chumly]

So another confirmation straight from sony that they are still losing money selling the PS3 (Currently)

[Deku]

A slim PS3 SHOULD be less money because it will be smaller with less parts, just like the PS2 slim.

Well it should be, and if done at the tail end of the 10 year Plan (tm) it SHOULD be.

But then we have the PSPgo for $250.

I think Sony has it owns plans and we're not privy to how they plan to dominate the world quite yet.

[permutated]

Waiting for that price drop Sony...

Eagerly waiting. I want a console but they're so fucking expensive.

[bigcheese]

Either I am going deaf or I can't hear my 60GB PS3 90% of the time, even when the extra fans come on it's pretty damn quiet. Maybe I just got lucky.

Yea, I have a 60GB, and I don't know what he's talking about. It's much quieter than my 360.

[bloodforge]

Well it should be, and if done at the tail end of the 10 year Plan (tm) it SHOULD be. But then we have the PSPgo for $250. I think Sony has it owns plans and we're not privy to how they plan to dominate the world quite yet.

I think their world domination plans got a swift kick to the head then fell flat on its face.

[pseudocaesar]

Sony should retail 1st party games at $49 as an incentive to buy 1st over 3rd party software. Im sure if MAG + headset was $49 it might fair better against MW2.

[laserbeam]

Sony should retail 1st party games at $49 as an incentive to buy 1st over 3rd party software. Im sure if MAG + headset was $49 it might fair better against MW2.

The HMS Sony already hit an iceberg why would they want an asteroid to hit it next.

[cakefoo]

Since Stringer said "I (would) lose money on every PlayStation I make" that means he really said "I lose money on every PlayStation I make" right? Doesn't putting it in parenthesis mean the word was added, as opposed to brackets which would mean the writer replaced some other word with "would"? Edit, this is what I'm trying to say:

Assuming the writer lacks comprehension skills, sure. But, if Stringer said

"If I drop the price, I lose money on every PlayStation I make."

then the writer correctly cut off the redundant 5 words and added the (would) so that it represented what Stringer would have said if he knew the first half of his statement was going to be cut off.

[badcrumble]

Sony should retail 1st party games at $49 as an incentive to buy 1st over 3rd party software. Im sure if MAG + headset was $49 it might fair better against MW2.

I don't think you totally understand what first party software is for and that would immediately piss off every third party developer out there.

[pseudocaesar]

They need to do something. Nintendo went a few years without 3rd party, im sure Sony's is more than capable of doing the same.

[HUELEN10]

My 60GB is quiet as a mouse...shame about yours.

Yeah, that's why I sold it. Waiting on the slim!

[OldJadedGamer]

I don't think you totally understand what first party software is for and that would immediately piss off every third party developer out there.

Why? Most PS2 first party games came out for $40 when all other third party games were $50. Also, all first party PSP games were $40 when other third party games were selling for $50.

[Kagari]

Why? Most PS2 first party games came out for $40 when all other third party games were $50. Also, all first party PSP games were $30 when other third party games were selling for $40.

Fixed that for you.

[timetokill]

How is Stringer putting pressure on Kotick?

Obviously he's hurting Kotick's bottom line, and making Kotick look bad to investors.

[Concept17]

Well duh, a price cut on current hardware would lose them money.

A cheaper slim that uses less expensive parts however is another story.

[dammitmattt]

Fixed that for you.

I paid $50 for some PSP games (GTA comes to mind). And I seem to remember God of War being $40, which is why I rented it instead of buying it.

[Kagari]

I paid $50 for some PSP games (GTA comes to mind). And I seem to remember God of War being $40, which is why I rented it instead of buying it.

Seems that the "bigger" first party titles are priced at $40.

[Shadow780]

No way GTA PSP was 50USD, I don't recall I paid more than $40 on it on first day.

Edit: Ah yes, LCS was $39.99 and VCS was $49.99, I got LCS for $40.

[OldJadedGamer]

Fixed that for you.

Uhhh, no. Maybe for someone who didn't buy a launch unit and buy games in the first year. PSP third party games like Madden and GTA were retailing for $50 bucks while Sony first party games were $40.

Don't confuse the price now with the price then.

[AniHawk]

Asked about the logic of not cutting prices, Stringer said, "I (would) lose money on every PlayStation I make -- how's that for logic."

Classy.

[2 Minutes Turkish]

I really hope Sony sticks to their guns and focuses on profit over marketshare. Nintendo proved you can come back stronger next round.

Please Stringer, don't pander to forum fanboys

[dammitmattt]

No way GTA PSP was 50USD, I don't recall I paid more than $40 on it on first day.

It was definitely $50 at launch.

[Shadow780]

I must been thinking LCS.

LCS was $40 and VCS was $50.

Are there any other non LE games on PSP that was $50 at launch?

[Kagari]

Uhhh, no. Maybe for someone who didn't buy a launch unit and buy games in the first year. PSP third party games like Madden and GTA were retailing for $50 bucks while Sony first party games were $40. Don't confuse the price now with the price then.

Ahh. I didn't buy a PSP until the end of 2006, so I guess I missed those times.

[WhiteAce]

This is a "What do you expect him to say" situation. No one at Sony can say "Yeah, we're going to price drop the PS3, just not right now". So you're only going to get these denials for now leading up to Gamescom or TGS where the price will be dropped.

completely disagreed in this case - Stringer is a straight talker, the only person with any sort of balls at Sony.

He said pretty much what is going on - but speaking of expecting people to say - i was expecting someone to say exactly this as a retort for the "bad news"

But that's because you're all living in a fantasy world, so hey.

$449 Slim, PS3 old gets bundled. Sony's throat was slashed way before Stringer , now he's just left with clean up.

Sony should retail 1st party games at $49 as an incentive to buy 1st over 3rd party software.

they used to do this in Japan, but they have since reversed the practice. Was a really really nice incentive.

[omg rite]

Asked about the logic of not cutting prices, Stringer said, "I (would) lose money on every PlayStation I make -- how's that for logic."

Well if that's the case they should probably rethink their strategy for PS4. They can't fund a console out of Stringer's personal bank account.

[AdventureRacing]

Nintendo went a few years without 3rd party, im sure Sony's is more than capable of doing the same.

Nintendo's first party is far stronger and there business model doesn't rely on 3rd parties.

[Averon]

completely disagreed in this case - Stringer is a straight talker, the only person with any sort of balls at Sony. He said pretty much what is going on - but speaking of expecting people to say - i was expecting someone to say exactly this as a retort for the "bad news" But that's because you're all living in a fantasy world, so hey. $449 Slim, PS3 old gets bundled. Sony's throat was slashed way before Stringer , now he's just left with clean up. they used to do this in Japan, but they have since reversed the practice. Was a really really nice incentive.

Why would Sony jack up the price for the PS3 slim? At worst, the Slim stays at $399.