Sony Looks to 'Refine' PS3 Price

Via GameDaily a Financial Times interview with with Sir Howard Stringer, Sony's CEO, gives fans the first hope that price cuts may be coming soon. Lauding the Wii's performance in last month's NPD numbers, Stringer says that Sony is looking to 'refine' the PS3's pricepoint. "'Nintendo Wii has been a successful enterprise, and a very good business model, compared with ours . . . because it's cheaper,' Mr Stringer said in a video interview. 'That [price cuts] is what we are studying at the moment. That's what we are trying to refine.' Sir Howard said he expected 'energy [in PS3 sales] by Christmas, and then you will begin to see break-out games'. Sony is launching a virtual-world game called Home this year, and up to 30 other games."

Comments

It Needs "Refined"...

[morari]

By about $350...

Re:It Needs "Refined"...

[MS-06FZ]

That's funny, but just stupid. The PS3 is and always has been worth well more than its price in the store for a lot of reasons that nobody should have to justify anymore. That's ridiculous. Value is subjective. Sure, the PS3 is a fine machine, but to say that it's worth the price - that's something people have to decide for themselves. You could put $3000 worth of computer hardware into a little black box that does nothing but play MP3s - it doesn't matter that it cost you $3000 in hardware, though, because the thing is still worth no more to me than what an iPod costs.

If Sony's doing well at selling the PS3 at its current price point - then fine, good for them. For me, it's too damn expensive. There are much better ways I could spend $600, you know?

Re:It Needs "Refined"...

[twistedsymphony]

I think the point is most of the things that the PS3 can do don't appeal to the people who consider it to be over priced...

Maybe that $3000 MP3 player also plays games and Blu-Rays discs... but it's still just an MP3 player to those consumers who don't want to play games or Blu-Ray. To use another analogy if you were looking at two houses that were equal in all aspects except one had an extra 5 car garage and cost twice as much... if you have no cars, it doesn't matter if those 5 bays are "worth" the extra cost because you have no intention of ever using them, it's just a useless extremity that needlessly drives up the price.

The problem with adding features that drive up the price of your console is that every feature you add shrinks the potential market of people who will find 100% of your features useful and valuable.

Would be PS3 buyers who aren't interested in Blu-Ray see the blu-Ray features valued at $0... would be PS3 buyers who aren't interested in WiFi see the WiFi features valued at $0 etc... Eventually you have a machine that "just plays games" because a large group of gamers don't care about the noise and your console suddenly isn't valued at what you thought it was in the eyes of the consumer.

What was their first hint?

[realinvalidname]

Maybe the fact that a PS3 with one game costs as much as a 360 and a Wii combined?

Games

[strider2k]

I don't really care about the price. I'd be glad to pay the $600 US dollars for the premium. The sad part is, what games will I get? The answer is none. I don't have a big HD tv. So unless they release at least 1 big gun soon (MGS4 or FF13) then there's no incentive for me to buy. I guess I'll play my ds/gba (lots of good games) or board games (Settlers or Puerto Rico)!!!

When they do bring the AAA top tier games, then it'll be World War III in console terms.

Re:Captain' Obvious

[Daniel_Staal]

Actually, it's not obvious. The XBox 360 for instance is also cheaper, and not getting as much buzz at the moment. (Perhaps just because it isn't 'new' at the moment, but also because it isn't as 'different' as the Wii is.)

Yes, the Wii is cheaper, and yes it is sucessful, but is it sucessful just because it is cheaper? I sincerly doubt it. I think Sony and Nintendo intentionally aimed for different target audiences, and Sony found out that the audience they targeted at didn't exist in the numbers they thought existed. Now they will have to scramble to market a product to an audience it is not designed for. Meanwhile, Nintendo judged their market quite well.

Blu-ray is the problem.

[Fross]

A common argument for the high price of the PS3 is that "hey, it includes a blu-ray player!" Which is true, and changes something.

The PS3 isn't the most expensive console, rather, it is the cheapest available Blu-ray player.

So not only does Sony have part of the market for the next-gen console market with the PS3, but it also has the vast majority of the HD-video market as well.

The sales figures are testament more to the fact that nobody wants HD video at the moment, and forcing people to take it in a bundle is crucifying them. The PS3 may be better than the 360 (the games look about the same to me), but it costs $300 more (at least here in the UK) - that's a lot to a gamer. You can make a car with a gold steering wheel for an extra $50,000, but if nobody *wants* a gold steering wheel, then your car isn't going to sell at all, as good as it is, unless you can sell if without the steering wheel.

Re:Blu-ray is the problem.

[SparkyFlooner]

I have the 360 add-on HD-DVD player, and I find myself ignoring HD-DVD titles and just renting regular DVDs. (and yes, I have an hdtv) Regular DVDs still look good, you know? Even 200 bucks on an HD player seems like too much for what you get. I would've been content watching regular DVDs until the price of an HD player came down to 100 or less.

Re:When will they learn...

[Floritard]

I'll tell you right now, the price is stopping me. And that is all that is stopping me. I had a Wii for a few months. I bought it on an impulse (right place right time), partly because I was intrigued by the new control scheme, but mostly because it's waaay cheaper than the other "next-gen" systems. I have since given it away to a friend of mine because I promised to buy her one at some point, but also because there are no games out for it that I really want (yet). While I did get bored of it already, the lack of games wasn't something that stopped me from buying it in the first place. And the Wii is so cheap that I'll easily pick one up again when they become more available. Not so with that wallet monster PS3. I can build most of a new PC off newegg for the price of that little bastard. Games or no games, it gives me pause dropping $600+ on a fucking console, they're supposed to be the cheap alternative to PC gaming. As it stands now I really don't know what to do, there are games coming out that I am looking forward to but luckily they aren't here yet. I'm on the fence here, I'll definitely get another Wii, but I will also want either a 360 or a PS3 for those truly next-gen games. Despite Sony's incompetance of late, I really dislike Microsoft's history of foul play and would prefer to stop buying into their products, especially after this power-grab Vista/DX10 business. I'm not especially excited about giving Microsoft so much control over the gaming world. But that PS3 is so damn expensive that I'm worried if I buy it I'll be stuck with a failed system. An expensive failed system. This whole gen is off to a bad start if you ask me. Too much risk. I'm waiting, and the industry isn't getting my gaming dollar.