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Sony's Harrison In No Rush to Lower PS3 Price
njkid1 passed on a link to a GameDaily interview they conducted at DICE with Phil Harrison, SCE WorldWide Studios President. Harrison stays mostly positive throughout the article, pointing out that the availability of consoles is a sign of a healthy supply chain. He denigrates rumble in controllers as a 'last generation' feature, and specifically discusses the company's decision-making process for lowering prices: "The PS3 technology, as with any of our platforms, starts off life at a high price and then we engineer cost out of it. And that process is an investment that you make to combine chips into a single chip or to reduce components or combine components and redesign things, and that investment is part of our planned R&D effort to reduce cost. At the appropriate time and when we can afford to, the business model of the industry is to pass those savings onto the consumer, but we're a long way away from doing that yet."
Why would they start trumpeting a price drop now? When one comes (whenever that may be), there won't be much if any of a warning. Even if they were going to do it next week, they won't tell anyone until it happens. The last thing Sony needs is ill will from the people who were still loyal enough to have already bought a PS3.
11 was a racehorse
12 was 12
1111 Race
12112
I'm in no hurry to buy one.
-- http://frobnosticate.com
Really, there's no point in dropping the price right now. Until Sony gets a couple of killer games out, dropping the price isn't going to really excite anyone.
Fanatically anti-fanatical
As a Nintendo shareholder, you have my deepest gratitude.
[Insert pithy quote here]
You mean Sony isn't completely obsessed with the price of their console, like potential customers are? They don't feel bad about the lack of rumble, like the potential customers do? They have their own strategy that doesn't involve pleasing potential customers?
You seem to think that "the press" has it's own agenda here, but in this case they are bringing up legitimate concerns that the public is putting forward and that Sony is ignoring. I won't go as far as saying "self-destructing", but ever since their E3 price announcement they have steadily been eroding the goodwill of gamers and turning off potential customers. Like myself...I was going to buy a PS3 before the sky-high price and lack of exclusives turned me off to it. Their attitude isn't helping me re-evaluate that decision.
Don't bother with the interview, btw. It's nothing more than PR-flak "we can do no wrong" spiel from a clueless non-gamer executive.
As a fan of the PS2 who WANTS the PS3 to succeed (I'll buy one when the price comes down...), I find this interview rather insulting. It's just so transparent that EVERYTHING he's saying is just a repeat of the company line, trying to turn negatives into positives.
Lots of PS3s languishing on shelves? "We do a good job managing our supply chain." Target in Newnan, GA, 4 PM on 2/25: 11 PS3s, 0 Wiis. Congrats on your expert supply chain management, Sony, but maybe you'd better focus on SELLING THE PRODUCT.
No rumble in the controllers? "That's a previous-gen feature." Yeah, and why would you carry over a minor feature that most users are neutral or positive about into the next generation...
Motion sensitivity? "Far more opportunity for future innovation..." Ah, so that's why Sony didn't even HAVE motion sensitivity in place until the last minute, then?
Arrgh. Just infuriating.
JRjr
If Sony wants to salvage the situation, they need to be doing something right now. Because here's what Sony's got: The worst development tools (vs. Xbox 360, great dev tools, and the Wii, with good tools, and lots of experienced developers in the field), the most expensive platform to develop for (partially due to poor tools, but also due to the use of expensive technologies like blu-ray), the smallest market share, and the slowest growing market share. If I were a developer, I'd be thinking long and hard about my commitment to the PS3 right now. The alternatives are looking very tempting. At this point I wouldn't even count on Final Fantasy remaining Sony exclusive. My guess is that Microsoft is probably flashing crap tons of "partnership" cash in their direction(It's what I would do if I were a Microsoft Gaming Division executive), while Nintendo is content to let their profitability and growth speak for themselves.
"Until then, you can make no conclusions about how the actual console is selling because retailers won't report this information fast enough!"
Erm, NPD (USA) and Media Create (Japan) keep close track of the sales of all major consoles, and as the PS3 has only been released in those territories, the statistics are comprehensive. Current stats:
November 2006:
Xbox 360 -- 511K
Wii -- 476K
PS3 -- 197K
December 2006:
Xbox 360 1.1 mm
Wii 604.2 K
PS3 490.7 K
January 2007:
Xbox 360 294k
Playstation 3 244k
Wii 436k
NPD also does Canada stats, but the PS3 has been the slowest selling console there as well (by far).
In short, I do believe there is reason for Sony to worry, but not to panic. Yet. This is a marathon, not a sprint, after all...