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PS3 Japanese Price Drop 'Ridiculous'

Gamasutra reports on comments from a Japanese analyst group, characterizing the pre-launch price drop for the Japanese market as ridiculous. From the article: "Meanwhile, Naoki Fujiwara of Shinkin Asset Management suggested that the price reduction was 'negative for the short term because the company may not be able to sell enough consoles to cover an instant loss caused by the price cut.' The PlayStation 3 was already expected to be sold at a loss, with Sony allowing up to five years to recoup the costs. Shares in Sony fell 1.9 percent following the announcement, although this coincided with a generally poor day for the Tokyo Stock Exchange and may not be entirely related to the price cut."

3 of 70 comments (clear)

  1. Seriously what is getting attached to that HDTV by linzeal · · Score: 2, Insightful
    Slashdot users have always been at the bleeding edge of technology adoption and sometimes we understandably are willing to pay the premium for features but this time Sony I think has overestimated the response of their base. It is not exactly lean times for many of us yet a wary eye has been placed on new formats that come out at 10x the price they will be in a year. If the blu-ray technology is anything like DVD tech, we will have ~100 dollar players next Christmas. The playstation does have an alluring bunch of exclusive games such as metal gear, but Final Fantasy will be coming to other next-gen consoles as well now. The only real selling point of the PS3 is the blu-ray and I simply do not have any need to go beyond the res current-gen DVDs can provide as I only have a 27" LCD.

    I have misgivings about Microsoft as much as the next Slashdotter but given the Xbox 360 has already seen price breaks in some of its games and it has a price that I more typically associate with something that I "play" with. I think I am going with Microsoft this time. I might get a Wii as well, because I find it offers much better multiplayer games for parties.

  2. Re:Wait what? by SkullMac · · Score: 3, Insightful

    Ah, but in order to sell more units, they must order more parts to manufacture the extra units. A larger order for parts means a larger bulk discount, thus reducing the loss per unit. As component prices continue to fall over time, this can eventually become a profit per unit.

  3. Re:Recall: Intel's Free 4004 CPU, You buy the RAM by ClamIAm · · Score: 1, Insightful

    Sony subsidizes the PS3 & wants to sell content...

    Um, sure. Too bad Sony has said absolutely nothing about how much each unit costs to produce.