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Sony CEO dismisses price cut chatter on PlayStation

laserbeam

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Mar 23, 2007
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Averon said:
:lol Why would Sony jack up the price for the PS3 slim? At worst, the Slim stays at $399.
$249 PSP. Why would they jack up the price for a unit cheaper to produce?
 

Dead Man

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Aug 24, 2007
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Averon said:
:lol Why would Sony jack up the price for the PS3 slim? At worst, the Slim stays at $399.
Why would they jack up the price of the GO?

Edit: Beaten, damn you!
 

Vilix

I think Bayonetta and Samus are more iconic than Lara Croft.
Aug 9, 2006
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Averon said:
:lol Why would Sony jack up the price for the PS3 slim? At worst, the Slim stays at $399.
If they jacked up the price for the PSP Go, a version of the PSP with less features than the PSP 3000, then why wouldn't do it for the PS3 Slim?
 

JoJo13

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Apr 5, 2006
1,815
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Vilix said:
If they jacked up the price for the PSP Go, a version of the PSP with less features than the PSP 3000, then why wouldn't do it for the PS3 Slim?
PSP-3000 has a smaller form factor and 16 GB?
 

Azure Dream

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Oct 30, 2004
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JoJo13 said:
PSP-3000 has a smaller form factor and 16 GB?
Flash memory is trivial (or replaced by a memory stick), and I don't think the PS2 went up in price when it first started slimming down...

It actually has slightly better internals, supposedly, but it's not clear why yet. Extra firmware feature overhead maybe.
 

Tobor

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Sep 15, 2006
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Vilix said:
If they jacked up the price for the PSP Go, a version of the PSP with less features than the PSP 3000, then why wouldn't do it for the PS3 Slim?
Sigh. You guys are going to pound this same bullshit until everyone thinks it's true, huh?
 

Averon

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Aug 27, 2008
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You people really think Sony is going to have a single $449.99 sku after all the grief they've gone through with $400+ pricing already? Doubtful. Now, if Sony continues to make a fat PS3 and sell it cheaper ($349 or so) then a $449 Slim make a little bit of sense. But seeing that they already are losing money on the current PS3s, and lowering the prices will only exacerbate the losses, I find that scenario highly unlikely.
 

charlequin

Banned
Oct 19, 2005
26,635
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idahoblue said:
Why would they jack up the price of the GO?
Because they're bribing retailers with a big-ass margin in order to get them to carry it.

Tobor said:
Sigh. You guys are going to pound this same bullshit until everyone thinks it's true, huh?
If by that statement you mean "make use of a factually accurate argument that some people are not fond of," then yes, probably.
 

SamBishop

Banned
Jun 6, 2006
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www.totalplaystation.com
permutated said:
Waiting for that price drop Sony...

Eagerly waiting. I want a console but they're so fucking expensive.
I hate to sound like an elitist or something, but I can't wait until the price comes down for you and indeed everyone else on the fence. The single biggest issue the PS3 has right now is just that it's too fucking expensive. The games are there (in droves), the hardware reliability is there (counter to Sony's other consoles), it simply needs to be cheaper. I firmly believe that once that happens and people can actually afford to give the system a shot, they'll see what those of us who dropped a shitton of money already know: the PS3 is great.

Unfortunately, that greatness is utterly out of reach for most people, and that's not only understandable, it's bloody frustrating.
 

Tobor

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Sep 15, 2006
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charlequin said:
Because they're bribing retailers with a big-ass margin in order to get them to carry it.



If by that statement you mean "make use of a factually accurate argument that some people are not fond of," then yes, probably.
You're completely incapable of judging value on anything other than what you want in a product. That's ok, we can't all grasp the bigger picture.

There's nothing factual at all about that statement, it's an opinion, and a biased one. AS much as I hate the UMD drive, I'm glad it's still on the market for people who still want one. It's the principle of understanding a product's position and purpose, even if you don't personally want one.
 

spwolf

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Feb 15, 2007
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Kulock said:
Flash memory is trivial (or replaced by a memory stick), and I don't think the PS2 went up in price when it first started slimming down...

It actually has slightly better internals, supposedly, but it's not clear why yet. Extra firmware feature overhead maybe.
16 GB is trivial, but you can buy complete dvd player these days for less than 16 GB of memory :lol

Hows that for logic?
 

spwolf

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Feb 15, 2007
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guys you know its just exec talk - he cant say they will drop the price until they do.
KZ2 + MGSIV bundle shows they will clearly drop the price, so no worries.
 

diddlyD

Banned
Feb 20, 2007
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Zhuk said:
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.
your inference is wrong, look at the end of the sentence. "how's that for logic?". the editor probably added the "would" to adjust the sentence to take into account context that was left out in the article. for example he probably said something like "he says it would be logical for me to lower price on the ps3. if i lower the price, i lose money on every ps3 i make. how's that for logic?"

i'd really find it hard to believe that sony is still losing money on ps3 at $400. its a blue ray drive, an old gimped cell, an old graphics chip, a little memory, and a small hard drive. there is no way that costs them more than $400 to manufacture.
 

Hesemonni

Junior Member
Feb 27, 2007
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Lucky me, won't have to buy another console for atleast a year and when I finally do I can buy another years worth of PS3 exclusives second hand (and without the horrible platinum cases).
 

Zhuk

Banned
Dec 6, 2008
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diddlyD said:
i'd really find it hard to believe that sony is still losing money on ps3 at $400. its a blue ray drive, an old gimped cell, an old graphics chip, a little memory, and a small hard drive. there is no way that costs them more than $400 to manufacture.
Sony's CFO said in May that the PS3 costs 10% more to produce than they sell it for, therefore my inference was correct and yours is wrong :)

http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/
 
Aug 30, 2007
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diddlyD said:
i'd really find it hard to believe that sony is still losing money on ps3 at $400. its a blue ray drive, an old gimped cell, an old graphics chip, a little memory, and a small hard drive. there is no way that costs them more than $400 to manufacture.
Shouldn't the division be doing better than?

They make money off the software for PS3
They make money off the hardware/software for PS2 and PSP

If they make money off PS3 hardware shouldn't their games division be turning a healthy profit?
 

Stinkles

Clothed, sober, cooperative
Sep 5, 2004
66,974
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Tobor said:
You're completely incapable of judging value on anything other than what you want in a product. That's ok, we can't all grasp the bigger picture.

There's nothing factual at all about that statement, it's an opinion, and a biased one. AS much as I hate the UMD drive, I'm glad it's still on the market for people who still want one. It's the principle of understanding a product's position and purpose, even if you don't personally want one.


I don't understand your outrage. He's insinuating the Go has less features than the 3000 - notably the UMD - you now seem to be agreeing that the UMD serves a valuable purpose.

Where's the beef?
 

Tobor

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Sep 15, 2006
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xbhaskarx said:
How did these comments on a PS3 price drop and Activision's threats turn into another PSP Go discussion?
I don't know, but I certainly fell for it. I'm tired of having this same stupid argument over and over again, yet I keep right on doing it.

OuterWorldVoice said:
I don't understand your outrage. He's insinuating the Go has less features than the 3000 - notably the UMD - you now seem to be agreeing that the UMD serves a valuable purpose.

Where's the beef?
The UMD does not serve a valuable purpose for me or for anyone who would be in the market for a Go. If it is for him, then great. All I'm saying is, I'm tired of people saying the UMD is a valuable feature all the time for every user, that's not the case. And now I'm talking about it again. Arggh.

/logs off for the night
 

Woo-Fu

incest on the subway
Jan 2, 2007
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You don't get to see my cards until we put them on the table, and sometimes not even then.
 

Zhuk

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Dec 6, 2008
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Tobor said:
There's nothing factual at all about that statement, it's an opinion, and a biased one.
Being able to play physical and digital media on a machine with a larger screen is a more feature rich machine than one that only plays digital media on a smaller screen.

Commanding a significantly higher price point for a machine that does less considering that its costs of manufacture would be comparable or cheaper is what the issue is with many in the industry and with consumers.

If someone said that the Go! would cost more than a 3000 before E3 I would haven't believed it, and I am guessing SonyGAF wouldn't have either.

The Go! needs to be cheaper.
 

UntoldDreams

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Feb 6, 2007
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PSP Go has Bluetooth and has been stated by Sony during some offhanded interview that they would like to be able to tether to your cell phone for internet access using Bluetooth.

** That is a powerful feature with great potential and if that works that alone would make it the best version of the PSP
 
Jul 2, 2007
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Tobor said:
It's the principle of understanding a product's position and purpose, even if you don't personally want one.
Understanding a product's position and purpose is one thing, perceived value is entirely different and not in any way related.

The device has to justify it's cost to the consumer, simple as that. The PSP Go! does not (especially for those of us in Europe).
 

Woo-Fu

incest on the subway
Jan 2, 2007
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Zhuk said:
The Go! needs to be cheaper.
The Go! needs to be whatever price Sony wants it to be. People who don't like it can always buy a regular PSP.

You are acting like there are a 100million consumers out there just dying to play PSP games who are unwilling to do so on a PSP-3000, but would happily fork over the same amount of money to play those games on the Go.

PSP Go threads make a lot more sense after s/the go! needs to be/I want it to be/g.
 

M°°nblade

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Jul 30, 2007
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Tobor said:
The UMD does not serve a valuable purpose for me or for anyone who would be in the market for a Go. If it is for him, then great. All I'm saying is, I'm tired of people saying the UMD is a valuable feature all the time for every user, that's not the case. And now I'm talking about it again. Arggh.

/logs off for the night
Valuable or not, the UMD drive is a feature. As long as Europe doesn't get PSN cards, a visa/mastercard card will be the only way people can actually buy a game for their PSP go.

I'm not against DD, but removing the UMD drive is simply too drastic.
 

Rhazer Fusion

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Of course they are going to deny a price drop. If everyone knew they were dropping the price soon, who would buy a PS3 that knew the inevitable was coming? Also, I think a price increase on the PS3 Slim is plausible. I think it is going to be $400, but it really wouldn't surprise me if the PS3 Slim was $450 at launch.
 

HK-47

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Oct 24, 2007
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Didnt they jack up the Go because retailers wanted higher profits per unit due to the whole DLC thing that cuts them out of the loop?
 

Azure Dream

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spwolf said:
16 GB is trivial, but you can buy complete dvd player these days for less than 16 GB of memory :lol

Hows that for logic?
Retail prices != Sony's costs, not to mention they can produce both of those things themselves anyway. :lol
 

M°°nblade

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HK-47 said:
Didnt they jack up the Go because retailer wanted higher profits per unit do to the whole DLC thing that cuts them out of the loop?
Is the PSP go going to replace the PSP 3000 or will both models co-exist?

Maybe the PSP go is more expensive because they want to get rid of the old models first.
 

Azure Dream

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M°°nblade said:
Is the PSP go going to replace the PSP 3000 or will both models co-exist?
They won't really co-exist no matter what they say, whichever model performs better, they phase out the other one. If the Go is received well, Sony drops the "old bulky model." If the Go flops, Sony talks about how consumers love the good ol' standby PSP and physical media and carries on with that. They're more likely to stick with the Go, but if the retailer pushback is strong enough, they may decide it's not worth the battle.
 

mj1108

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Jun 8, 2004
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Rhazer Fusion said:
Of course they are going to deny a price drop. If everyone knew they were dropping the price soon, who would buy a PS3 that knew the inevitable was coming? Also, I think a price increase on the PS3 Slim is plausible. I think it is going to be $400, but it really wouldn't surprise me if the PS3 Slim was $450 at launch.
I would like to think that the PS3 Slim is Sony's way of figuring out how to cut costs to bring the price of the unit down -- not raise the price. If the PS3 Slim is $400, I will laugh.
 

Koren

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Mar 11, 2005
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It make some sense for Sony to think profits on hardware first. There's absolutely no evidence that dropping the price would give them back a lot of market shares. They are in a difficult situation, I guess they'll try everything to support the PS3 without loosing too much money on it. I'm eager to see how PS4 will be (I don't say it'll happen soon, but I think they will developp it quite differently from PS3, in a far more cost-effective way).

Kulock said:
They won't really co-exist no matter what they say, whichever model performs better, they phase out the other one. If the Go is received well, Sony drops the "old bulky model." If the Go flops, Sony talks about how consumers love the good ol' standby PSP and physical media and carries on with that. They're more likely to stick with the Go, but if the retailer pushback is strong enough, they may decide it's not worth the battle.
Why is there a need to choose ? GBA SP and Micro managed to co-exist, the market were different enough. I hope PSP 3k will stay, though, if that means that Go should die, it's fine for me.

Snipes424 said:
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.
You are and I'm too with my japanese 20GB, it seems. There's two different kind of original PS3, one being loud, the other far quieter.
 
Apr 14, 2008
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laserbeam said:
$249 PSP. Why would they jack up the price for a unit cheaper to produce?
They need to jack up the price of the Go because otherwise retailers would have no reason to stock it. Normally money is made by retailers on games (and accessories). They wouldn't have sales of either new or used games with the Go.

With the ps3, things are different. Retailers aren't begging Sony for higher margins. In fact, both retailers and publishers are begging Sony for a price drop, just so they can start moving some units.

PSP Go = retailers want a higher price so they can actually make money
PS3 Slim = retailers (and everybody else) want a lower price so they can finally move some units
 

Ramenman

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Apr 4, 2007
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Okay deny it all you want, but please plan it secretely.

a Master Ninja said:
How is Stringer putting pressure on Kotick?
I guess there's a lot he can do as the Official Leader of the industry.
 

Paracelsus

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Jun 24, 2007
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They must think it is really their last "wait for" if they're denying it so fiercely.
 

DrXym

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a Master Ninja said:
How is Stringer putting pressure on Kotick?
It wouldn't surprise me if the recent PS3 licensed 3rd party peripheral logo was one of the major factors for the noise that Activision has been making recently. Maybe Activision wants the logo to sell its crappy skating / music devices but is pissed by the price, or terms such as interoperability with similar kinds of games etc.
 

HocusPocus

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Oct 19, 2005
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That's interesting. I think consumers have dismissed the price of the PlayStation 3. Funny how that works.
 

gofreak

GAF's Bob Woodward
Jun 8, 2004
43,347
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ICallItFutile said:
Isn't denial a sign that it's not going to happen while no comment usually means it will?
I don't think you can read anything into comments about pricing before it happens. Sony has denied and no-commented rumours about price-cuts until they were blue in the face before previous cuts. Uncertainty about the prospects of a pricecut do Sony no harm in terms of keeping stock moving for now.

As for Go pricing as it relates to slim..I'd figured the premium on Go was helping SCE's bean counters justify a PS3 pricecut. But maybe that's just an optimistic take on the situation ;) What wouldn't surprise me is if Slim isn't cheaper..but if there isn't a PS3 (e.g. the 80GBs) that is cheaper this year I would be surprised.
 

spwolf

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Feb 15, 2007
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gofreak said:
As for Go pricing as it relates to slim..I'd figured the premium on Go was helping SCE's bean counters justify a PS3 pricecut. But maybe that's just an optimistic take on the situation ;) What wouldn't surprise me is if Slim isn't cheaper..but if there isn't a PS3 (e.g. the 80GBs) that is cheaper this year I would be surprised.
here we ago again - you have to understand that Slim will be cheaper to produce than 80 GB for SCE. So they can not lower the price of 80 GB more than price of Slim, they will lose more money :).

So 80 GB will simply go away, and Slim will replace it.
 

gofreak

GAF's Bob Woodward
Jun 8, 2004
43,347
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spwolf said:
here we ago again - you have to understand that Slim will be cheaper to produce than 80 GB for SCE. So they can not lower the price of 80 GB more than price of Slim, they will lose more money :).

So 80 GB will simply go away, and Slim will replace it.
That'd be ideal, but I just have a sneaking suspicion that there'll be too much 80GB inventory to eat through. Hence it would get the price cut.

To put it a slightly more neutral way.. I'll be surprised if you can't get a PS3 for an official RRP of under $399 this Xmas. Whether that PS3 will be a 80GB or a Slim, I don't know. But I would be very surprised if there's no movement on price for a second holiday season in a row.
 

Nemo

Will Eat Your Children
Sep 10, 2007
18,385
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They should bring the white PS3 over to europe/america already. PS3 has always been about style, why not expand on that.
 

Cruzader

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Jul 23, 2007
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[Nintex] said:
I'm calling a $399 slim, it seems to be all the rage in Japan to 'add value' instead of lower the price. See PSP Go, DS Lite and DSi.
LOL its was pretty much known when the pics leaked and Go was announced. good try.
 

Johann

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HK-47 said:
Didnt they jack up the Go because retailers wanted higher profits per unit due to the whole DLC thing that cuts them out of the loop?
Retailers need a pretty big incentive to carry that. Obviously, they won't directly make money off software. They also have their employees teach customers the difference between the GO and previous models, especially the fact it won't play "UMD tapes."

Anyway, I'm expecting to get as big of a margin on the PS3 Slim as possible. SCE is under a lot of pressure to perform well through the PSP re-vitalization campaign and making the PS3 sell a whole lot more. They already have enough problems with the yen going haywire and the loss of easy PS2 money.
 

spwolf

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Feb 15, 2007
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gofreak said:
That'd be ideal, but I just have a sneaking suspicion that there'll be too much 80GB inventory to eat through. Hence it would get the price cut.

To put it a slightly more neutral way.. I'll be surprised if you can't get a PS3 for an official RRP of under $399 this Xmas. Whether that PS3 will be a 80GB or a Slim, I don't know. But I would be very surprised if there's no movement on price for a second holiday season in a row.
no way, they wouldnt bundle 2 awesome games if they were not planning for the price cut.... Now will Slim be $300? Not sure... But Sony does have good targets which suggest nice price cut.