60GB PS3 Price Cut Not Just a 'Fire Sale'

Heffenfeffer writes "Those excited about the $100 price cut that the 60 GB PS3 recently received should act quickly — according to an interview from SCEE president David Reeves: 'All they're doing is taking their stock in trade that they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July.' When asked if the 60GB PS3 would be no more after the fire sale, he confirmed, 'In America, yes ... what the US are offering from the 1st of August is a USD $599 version with one game.'" Meanwhile, the EU won't be getting the 80GB system at all. Instead, they'll be getting a new starter pack bundle pack with two games and an extra controller for the same cost as the current system on its own (£425, or $862). Update: 07/13 17:17 GMT by Z : Okay ... it's really challenging to understand what's going on when Sony as an entity is saying two different things. Despite the above coming from a Sony executive, it looks like this is completely untrue. Says a Sony of America spokesperson: "SCEA has reacted with puzzlement to the European perspective, suggesting that there may have been an incorrect interpretation. The spokesperson said, 'Those quotes from David Reeves are not accurate.'"

Comments

Damn

[Alzheimers]

...and they were this close to winning me over with games like EchoChrome and LittleBigPlanet. Guess now I'll have more time (and Money) for Bioshock, Super Mario Galaxy, Assassin's Creed, Fallout 3, Metroid Prime 3, Mass Effect, Rock Band, Halo3, Hellgate, Starcraft II, Gears of War...

(get the point here, sony?)

A stupid non-story

[DrXym]

Do people SERIOUSLY think Sony is going to hike the price up by $100 again? Of course they're not. They'll clear the 60Gb models out and then probably produce an unbundled version of the 80Gb model at the same price in time for Christmas.

This story is simply someone spreading shit.

Re:A stupid non-story

[uerunner]

You shouldn't be comparing the PS3 and Wii sales on Amazon. You can buy a PS3 for regular price (now $499), but all the Wiis available on Amazon are people reselling them with the current minimum cost after shipping of over $400. It's ridiculous to try to compare those two things in order to make a point.

This is not meant to be some fanboy comment looking to push the Wii, but just a math nerd pointing out the flaws in your logic.

Time for a Management change at Sony....

[trdrstv]

Seriously. I was encouraged when crazy Ken got the You can do no further harm "promotion", then later the boot but GODDAMN. Do the current Sony execs own a bunch of Nintendo stock?

A $499 version can be purchased at Gamespot for $399 with a trade in of a PS2. This makes it the same price as 360 PRO AND it has the PS2 slimline chip built in. If you owned a PS2 you probably had a few games for it. This was a VALUE ADDED proposition for the PS3.

Then they had the get 5 BluRay disks promotion, which is another VALUE ADD tactic.

Now they are going to stick with the $599 price, drop the 'cheaper alternative' again and pull out the PS2 chip?

Somebody else needs to take the reigns or Sony will remain a distant 3rd this gen.

Re:Wrong

[MeanderingMind]

The current 60 gig PS3 is now out of production and is now $499 as anyone can see

Right, but that's not the issue.

There will be a 80 gig model that is introduced next month that will have partial software emulation - right now European PS3s with EE emulation are at ~90 percent PS2 compatibility. As the remaining stock of 60 gigs get sold the 80 gig will come down to the same price as the current 60 gig model.

This is. Sony has not said, by any stretch of the imagination, that they intend on lowering the price of the 80gb model. They may do so, but we have no guarantee.

As most people know, harddrives don't really drop in price they just get larger capacity for the same price and eventually the low end drives start to become more expensive. That is happening with the 60 gig laptop drives and Sony is moving on to the cheaper in bulk 80 gig drives. So costs will be about the same for the larger harddrive. The removal of the EE hardware and the usual manufacturing cost cutting, including 65nm later this year, will mean the 80 gig PS3 model will be actually cheaper to manufacture than the current 60 gig models.

So by the time you can't get a 60 gig anymore 80 gigs will have moved down in price to $499.

Let us assume for the moment that you're right, 60gb laptop drives are increasing in price to the point where soon they will be more expensive than 80gb laptop drives. Here's a look at current prices.

Via Newegg:
Western Digital - 60g: $47.99
Western Digital - 80g: $59.99
Hitachi - 60g: $49.99
Hitachi - 80g: $54.99
Seagate - 60g: $49.99
Seagate - 80g: $59.99

So, the prices are somewhat close, ranging from $5-$15 difference with the 80gb drives consistantly more expensive. This gives some credence to the theory that soon the 60gb drives will be more expensive as they cease to be manufactured.

However, the following was in the article summary:

In America, yes ... what the US are offering from the 1st of August is a USD $599 version with one game.

There are a whopping 18 days left before the 1st of August. I find it hard to believe by any stretch of the imagination that in so short a time...
A) The price difference between 60gb and 80gb drives will be significantly in favor of the latter.
B) The 65nm proccesses coming "later this year" will arrive and have an effect.
C) Sony will actually think to pass the benefits onto the gamer rather than themselves.

If the price of the 80gb model drops, it's more likely because they'll unbundle the game. Sony could pleasently surprise us, but I'm not counting on it.

Re:I just dont get it

[MeanderingMind]

I know you're excited that the PS3 has been topping Amazon.com's bestselling list for video games. It is something to be happy about, but think about the context.

1. At #4 is the Wii, which as of this comment Amazon doesn't have stocked save for random people selling their own.
2. This is one online store amoung many others physical and virtual. Individual store sales vary, even on a day to day basis within the same store.

Like I said, it's a milestone, but it isn't as damning for Sony's competitors as an NPD report would be.

Insanity

[Jaaay]

Both Sony and MS seem to be whatever they can to destroy their positions, only Nintendo seems to understand it's better to have one standardized system at a standard price than several models at several prices with different functionalities and compatabilities. This is a bit like how Sega self-destructed with the 32X/MEGACD. You ruin the whole advantage of having a console instead of a gaming pc once you start getting a choice of consoles with different abilities and different available upgrades.

Re:PS3 is Top Seller on Amazon

[GrayCalx]

Good thing every gamer buys every console and video game from Amazon so that we can use it as a accurate view of the industry.

*yawn*

[WhiteWolf666]

Have any of you ever tried to buy a car at a dealer?

"This is a *special* price! It'll go up next week!"

Yeah. Right. I'll believe it when I see it; Sony won't shoot itself in the foot like that. This is just a marketing ploy to drive sales just a little bit more.

Re:Wrong

[Chris Burke]

As the remaining stock of 60 gigs get sold the 80 gig will come down to the same price as the current 60 gig model.

What makes you think that?

As you note, the price of the 60 gig drives hasn't gone down, so that isn't why the price dropped. The price of the 60 GB model dropped because they want to clear out the inventory to make room for the 80 GB model. The 80 GB drives will cost the same as current 60 GB drives. So Sony doesn't get to make cheaper PS3s, the only reason the 60 GB model was discounted is to clear inventory, so on what basis do you think the 80GB drive is going to drop to $499 in the near future?

Re:I call BS on this one.

[nickyj]

Let's fix that:

Later...

Sony: "The 60GB stock has been all sold. Maybe now we can turn a profit on these suckers with another upgrade."