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[Hollywood_mIRC]

I wanna see the August release of the sales data to see if Sony's BS about the $500 sales going nuts are true. I bet they aren't. I bet the sales go up a degree but they still will be considerably behind every other system on the market besides GBA/GC.

 

[joshcryer]

Does all this now mean that the 60gb model is the new 'tard pack?

No! Only a tard would buy the bundle which is clearly inferior technologically (it doesn't have the EE+GS), $100 is not worth 20GB and Motorstorm.

 

[Dave Long]

You need to have a rather analytical look at things to understand how the markets work. They don't need to have the 80GB without EE+GS model at $599, and they won't have that model at $599. This is a common practice in all areas. Look at Apple, they keep their pricing model quite secretive because if people knew "oh I just have to wait a few months and I can get 20 more GB for the same price" then they would go ahead and wait that few months. The markets have to take into account smart consumers, the ones who listen to what corporations say, so corporations cannot divulge pricing information for this reason.

I think your Sony goggles are messing with your head. A truly analytical look at this reveals that you don't price something at $599 for two months and then lower it again to $499.

Retail doesn't work like that. If we're talking about the 80GB model being $499 next May? Yeah, that I believe. I really don't think they have any plans to reduce the price of this newly introduced unit anytime soon unless sales really go in the tank and even then, the sheer weight of the losses at $499 are probably too much to bear.

Looking at the price of PS3 elsewhere in the world, it's pretty clear that Sony needs to keep it at $599 as long as possible becuause they likely are still losing money on every unit they sell.

 

[joshcryer]

I think your Sony goggles are messing with your head. A truly analytical look at this reveals that you don't price something at $599 for two months and then lower it again to $499.

Retail doesn't work like that. If we're talking about the 80GB model being $499 next May? Yeah, that I believe. I really don't think they have any plans to reduce the price of this newly introduced unit anytime soon unless sales really go in the tank and even then, the sheer weight of the losses at $499 are probably too much to bear.

Looking at the price of PS3 elsewhere in the world, it's pretty clear that Sony needs to keep it at $599 as long as possible becuause they likely are still losing money on every unit they sell.

They're not lowering the bundle price, they'll let the bundle sell out, maybe make other bundles, but they'll keep the bundle around and hope that smart consumers don't catch on to the utter banality of it all. They're hoping consumers will see 20GB and a game as a "great deal" and for the holiday season it may well be. This is like Nintendo releasing a bundle for more money than the system without it. Remember the All Stars Bundle that Nintendo released a long time ago? Bundles are not the consumer target, they're the soccer mom target.

 

[GavinGT]

Why do that when they can overcharge the consumer for a device and recoup some losses that they had? It's common sense. You release a clearly cheaper model for a higher price, throw some 'incentive' in there (the bundle may not even be costing them anything with the cost reductions) and you basically get more models sold without losing anything. I don't see how this is so hard for people to comprehend.

BOOKMARK THIS POST. I WILL BET MY ACCOUNT TO BE BANNED FOR ONE MONTH IF THEY DON'T KEEP THE $499 PRICE POINT AVAILABLE.

Even assuming that they are dropping the price of the 80GB SKU (which isn't even OUT YET!) it's still an awful move from a PR standpoint. Just when they had distanced themselves from the stigma of "599 US dollars", here they are right back in the thick of it. I also have a feeling that most consumers are just gonna settle for the 60GB model, but the stigma will still be there.

 

[Norse]

The price of the bundle isn't changing, they're phasing out the 60GB to replace it with the 80GB. They'll release a "non-bundled" 80GB for the same price of the 60GB now. This has been well established freaking 500 posts ago. Why people CONTINUE to post this non-sense is beyond me!

Established by who? A bunch of forum posters? The same posters who just days ago swore up and down people were stupid for even thinking the 60 gig would go way of the doh doh bird? You probably voiced your reasoning in that thread as well...didnt ya?

 

[ComputerNerd]

Why do that when they can overcharge the consumer for a device and recoup some losses that they had? It's common sense. You release a clearly cheaper model for a higher price, throw some 'incentive' in there (the bundle may not even be costing them anything with the cost reductions) and you basically get more models sold without losing anything. I don't see how this is so hard for people to comprehend.

BOOKMARK THIS POST. I WILL BET MY ACCOUNT TO BE BANNED FOR ONE MONTH IF THEY DON'T KEEP THE $499 PRICE POINT AVAILABLE.

You have to remember, there will be a gap between the areas that start selling out of the 60's first, and when they supposedly unbundle the 80's.

 

[MoxManiac]

SKU SKU SKU

 

[joshcryer]

You have to remember, there will be a gap between the areas that start selling out of the 60's first, and when they supposedly unbundle the 80's.

A gap as long as merchants buying the new 80GB system for $499 and putting it on their shelves? When they sell out of 60GB they'll get 80GB, it's simple. You guys think that because there's a bundle on the racks that somehow that detracts from a non-bundle. It's freaking ridiculous.

 

[GavinGT]

The price of the bundle isn't changing, they're phasing out the 60GB to replace it with the 80GB. They'll release a "non-bundled" 80GB for the same price of the 60GB now. This has been well established freaking 500 posts ago. Why people CONTINUE to post this non-sense is beyond me!

Wow, just wow. The only nonsense is that being spewed from your keyboard.

 

[TONX]

Wow, just wow. The only nonsense is that being spewed from your keyboard.

What nonsense? It isn't that far-fetched of an idea.

 

[joshcryer]

Wow, just wow. The only nonsense is that being spewed from your keyboard.

I have a feeling people on this thread simply don't understand how the markets work. Go to an Apple fan site and talk about their pricing, and you'll get the same sorts of analysis.

 

[Hcoregamer00]

I still maintain my stance that it is a good idea dropping the 60 gig, replacing it with a $499 eighty gig SKU once the holidays are done and just keep on price dropping it while adding more space if need be.

The problem is that the consumers are not supposed to know about it, nor are your rivals that can use this to their advantage. Secrecy would make people HAPPY, not freak out like in this thread. They need cohesive PR and should have said that Reeves was right instead of flip flopping and contradicting themselves left and right.

This feels like Phoenix Wright were you had to keep on pressing the witness for the right statement.

 

[Saint Gregory]

I can't imagine the party MS is having right now. Even their Jedi FUDmasters couldn't have orchestrated something like this.

Sony's party line for quite some time has been that they don't follow the standard price drop model anymore. They add value to their products instead of cuts and only drop their prices to clear inventory. The PSP had a price drop a couple months ago and now the new slim PSP is being introduced at it's old $199 pricepoint. The Playstation will likely follow that same pattern, what's so difficult to figure out here?

 

[Xeke]

Boy did I totally miss this thread.

Well Nintendo may have not had the best conference but...:lol

 

[fortified_concept]

Why do that when they can overcharge the consumer for a device and recoup some losses that they had? It's common sense. You release a clearly cheaper model for a higher price, throw some 'incentive' in there (the bundle may not even be costing them anything with the cost reductions) and you basically get more models sold without losing anything. I don't see how this is so hard for people to comprehend.

BOOKMARK THIS POST. I WILL BET MY ACCOUNT TO BE BANNED FOR ONE MONTH IF THEY DON'T KEEP THE $499 PRICE POINT AVAILABLE.

Nah. You should have made a bet instead with someone like Dave Long who calls you out and talks about "goggles" when his wishful thinking is through the roof. Personally I don't know what'll happen, I lean to your scenario but seriously who cares right now? The price is now 499$ and the usual suspects should stop whining until the situation changes. End of story.

 

[MoxManiac]

I can't imagine the party MS is having right now. Even their Jedi FUDmasters couldn't have orchestrated something like this.

Sony's party line for quite some time has been that they don't follow the standard price drop model anymore. They add value to their products instead of cuts and only drop their prices to clear inventory. The PSP had a price drop a couple months ago and now the new slim PSP is being introduced at it's old $199 pricepoint. The Playstation will likely follow that same pattern, what's so difficult to figure out here?

How sony could be so stupid with deciding to take that approach?

Consoles need to reach the 200-300 range to become mass market.

 

[GavinGT]

What nonsense? It isn't that far-fetched of an idea.

Taking the uninformed words of forum posters as gospel actually does sound far-fetched to me.

 

[ComputerNerd]

A gap as long as merchants buying the new 80GB system for $499 and putting it on their shelves? When they sell out of 60GB they'll get 80GB, it's simple. You guys think that because there's a bundle on the racks that somehow that detracts from a non-bundle. It's freaking ridiculous.

Here's the problem. You're acting as if no area in the US will ever only have the 80GB in stock at $600.

You have to face facts that some areas might be out of the 60's several months before the 80 gets its non-bundle $500 version. (not to mention that that in and of itself is speculation at this point, however it is likely.)

It'll take stores a lot longer to sell through their 60's than it takes to receive a shipment of 80's. The time period between the first store selling their last 60, and the last store selling their last 60, will be several months.

 

[crazyscreenwriter]

Dunno, might've alreayd been posted but:

http://kotaku.com/gaming/clustered-****s/kaz-confirms-60gb-ps3-discontinuation-278414.php

From Kotaku's Article:

"We're no longer in production for [the 60GB PS3], so once that product is gone from the retailers shelves, then we're back to the $599 SKU only..."

 

[joshcryer]

Here's the problem. You're acting as if no area in the US will ever only have the 80GB in stock at $600.

You have to face facts that some areas might be out of the 60's several months before the 80 gets its non-bundle $500 version. (not to mention that that in and of itself is speculation at this point, however it is likely.)

It'll take stores a lot longer to sell through their 60's than it takes to receive a shipment of 80's. The time period between the first store selling their last 60, and the last store selling their last 60, will be several months.

So you're arguing that the stores will have only 80GB bundles available for several months? :lol

 

[Link316]

I think your Sony goggles are messing with your head. A truly analytical look at this reveals that you don't price something at $599 for two months and then lower it again to $499.

nah you're confused, nobody's saying they're going to drop the Motorstorm bundle from $599 to $499, we're talking about a nonbundle 80GB PS3 unit for $499, and eventually that will be the only SKU since the Motorstorm bundle SKU is limited

 

[GavinGT]

So you're arguing that the stores will have only 80GB bundles available for several months? :lol

And you expect them to announce a new price/bundle like every month. If Sony says they're going back to having 1 SKU at $599, it's safe to say that will be their business model for at LEAST a couple months.

 

[ComputerNerd]

So you're arguing that the stores will have only 80GB bundles available for several months? :lol

Given the information we currently have, what makes you think they won't? Are you saying they'll unbundle the 80's when the 60's have yet to be sold out in any area in the US?

Now THAT would confuse people. What would they do then? Sell the 60's at 500, the unbundled 80's at, what, 550? And the bundled 80's at 600? lol. If I was a regular consumer, I sure as hell would be confused by 3 different PS3's, all within 100 bucks.

 

[joshcryer]

Sony isn't going to wait until all 60GB PS3s are sold out to start shipping and selling the 80GB PS3s. Once their inventory sells out they'll start shipping 80GB models, and the stores will stealthily get them. It'll be a very minor SKU change and we'll see posts here on NeoGAF about guys finding 80GB models for sell outside of a bundle. You'll have 60GB models on store shelves, perhaps even being sold at clearance (by the stores, not Sony), right next to the 80GB models. Has anyone never seen incremental technology improvements? It all happens at the same time.

 

[joshcryer]

And you expect them to announce a new price/bundle like every month. If Sony says they're going back to having 1 SKU at $599, it's safe to say that will be their business model for at LEAST a couple months.

It's not a new price, it's just an incremental enhancement. You can go to Wal-Mart any day and see some old inventory right next to the "new model," let's use a DVD player example. There were DVD players that could have their firmware upgraded to do DivX/XviD playback, so I went to the store and was looking at SKUs and I found the new models right next to the older models! On the same store shelf!

 

[Xeke]

So you're arguing that the stores will have only 80GB bundles available for several months? :lol

At the current sales rate, sure, why not.

 

[Saint Gregory]

How sony could be so stupid with deciding to take that approach?

Consoles need to reach the 200-300 range to become mass market.

First of all I don't think Sony sees the PS3 as the typical mass market game console. I fully believe that at some point Sony will introduce a PS3 model meant for the mass market but it certainly wont be the PS3 in it's current form.

A quick question for those in retail about something I've always wondered about. When a company decides to drop the price of a product that's already on the market, who absorbs the cost of that drop? Does the company issue the retailers some kind of refund or credit or is the the retailer forced to eat the loss? I'm pretty sure that I read that the wholesale price of the PS3 is really close to retail.

 

[My Arms Your Hearse]

Sony is beyond stupid. Everyone making decisions should be immediately replaced.

 

[joshcryer]

At the current sales rate, sure, why not.

The bundle will naturally be sold to stores at a much lower ratio than the flat system? You know, corporations have guys that sit back and do sales numbers and statistical prediction and all that foldera, right? They're not going to ship a million bundles and 100k 60GB machines.

 

[draggoon01]

I predict Sony's now-to-holiday strategy is actually quite simple:

60GB drops to $499, 80GB introduced at $599

80GB drops to $499, 120GB introduced at $599

Rinse and repeat (and stay in the headlines for each price drop).

what are you talking about?????

in 6 years that'll be a $600 price drop and you'll get a 200gb $500 system!!!!!! people would be fools not to buy such a deal.

think about it. the system launched for $600 and you'll get a $600 price drop. it's basically free after you pay $500 !!!!! free you hear me, free!!!!

and if you don't believe in the freedom sony will give you then you must be a terrorist

 

[GavinGT]

It's not a new price, it's just an incremental enhancement. You can go to Wal-Mart any day and see some old inventory right next to the "new model," let's use a DVD player example. There were DVD players that could have their firmware upgraded to do DivX/XviD playback, so I went to the store and was looking at SKUs and I found the new models right next to the older models! On the same store shelf!

So when Kaz says $599 will be their ONLY SKU, you somehow assume he means the exact opposite?

 

[GrimReaper]

Dunno, might've alreayd been posted but:

http://kotaku.com/gaming/clustered-****s/kaz-confirms-60gb-ps3-discontinuation-278414.php

From Kotaku's Article:

 

[smurfx]

Given the information we currently have, what makes you think they won't? Are you saying they'll unbundle the 80's when the 60's have yet to be sold out in any area in the US?

That THAT would confuse people. What would they do then? Sell the 60's at 500, the unbundled 80's at, what, 550? And the bundled 80's at 600?

yes that's what he is saying. once all the 60GB ps3's are all pretty much sold out sony will then start shipping out the bundle less packs and sell them for 499.99. i don't think people will see many of the 80GB bundles at th stores. what retailer would buy them? i bet they rather buy all the 60GB ps3's that they can get because those will sell better.

 

[Dave Long]

I have a feeling people on this thread simply don't understand how the markets work. Go to an Apple fan site and talk about their pricing, and you'll get the same sorts of analysis.

I have a feeling that you've got a self-importance problem.

This is nothing like an iPod and even if it was, keeping the price at $599 is actually the thing they're most likely to do.

 

[joshcryer]

So when Kaz says $599 will be their ONLY SKU, you somehow assume he means the exact opposite?

He's wrong. The bundle will not be the only way to get a PS3.

 

[pooteeweet]

:lol

 

[Xeke]

The bundle will naturally be sold to stores at a much lower ratio than the flat system? You know, corporations have guys that sit back and do sales numbers and statistical prediction and all that foldera, right? They're not going to ship a million bundles and 100k 60GB machines.

You're right, they wont ship anywhere near that number of anything. They already have too many sitting on shelves.

 

[Mooreberg]

I told you guys it wasn't a real price drop.

At best it was back to the pricing scheme they had last summer, but with more storage space (and some extra features like the card reader and wifi on the $499 unit). Now it's... something else.

 

[joshcryer]

I have a feeling that you've got a self-importance problem.

This is nothing like an iPod and even if it was, keeping the price at $599 is actually the thing they're most likely to do.

When the iPod had incremental technology enhancements (bigger space) the price stayed the same?

 

[crazyscreenwriter]

First of all I don't think Sony sees the PS3 as the typical mass market game console. I fully believe that at some point Sony will introduce a PS3 model meant for the mass market but it certainly wont be the PS3 in it's current form.

Then whats the point?

By the time this mass market PS3 is out they are going to be buried by the Wii and the 360. Especially if the 360 gets a price cut this year. There are already software developers saying they aren't going to develop titles for the PS3 because of the install base. No one is going to be waiting around for a mass market SKU.

 

[GavinGT]

He's wrong. The bundle will not be the only way to get a PS3.

So, the exact opposite, then? I guess that's what Sony fans have been reduced to doing - take what they tell you, then believe the opposite.

 

[Hitokage]

Maybe I'm crazy here, but when you have bundle and non-bundle packages being sold, those are seperate SKUs. The term "SKU" has become so synonymous with "model" that some of you seem to be getting confused.

 

[joshcryer]

The 60GB PS3 will be available in North America for $499 until supplies of that unit are depleted. We have ample inventory to meet the immediate needs of consumers in this territory for several months to come. We won't be making any further announcements regarding our PS3 model hardware strategy in North America until the 60GB model is exhausted and market conditions are evaluated.

Translation: we are doing like Apple and not telling people that we're going to sell the 80GB model for the same price as the 60GB model. The reason we're doing this is because Apple is smart and we like following their pricing models.

 

[Norse]

He's wrong. The bundle will not be the only way to get a PS3.

yeah, and the 499 60 gig ps3 wont go away like the 20 gig....err wait!

 

[Gary Whitta]

Oh man you need to do that with the Newman fish truck.

 

[crazyscreenwriter]

When the iPod had incremental technology enhancements (bigger space) the price stayed the same?

Ipod prices have gone down a bit but they've always been about the same. But the PS3 isn't the Ipod. People loved the Ipod and would buy it at $299 / $399. People do not particular care about the PS3 and they've already spoke that $599 is too much for a gaming console.

 

[Dave Long]

He's wrong. The bundle will not be the only way to get a PS3.

lol! Now you're saying the President of Sony Computer Entertainment, the guy who probably sets ALL these policies, is WRONG!

I have officially seen it all on GAF.

 

[GavinGT]

Maybe I'm crazy here, but when you have bundle and non-bundle packages being sold, those are seperate SKUs. The term "SKU" has become so synonymous with "model" that some of you seem to be getting confused.

True, but they haven't announced a non-bundled 80GB model yet. At any price. When the 60GB is gone, they plan to have 1 SKU (the bundle).

 

[Xeke]

Translation: we are doing like Apple and not telling people that we're going to sell the 80GB model for the same price as the 60GB model. The reason we're doing this is because Apple is smart and we like following their pricing models.

They should learn to copy more things apple does. Sleek. Products.