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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.'"

36 of 246 comments (clear)

  1. I just dont get it by pl1ght · · Score: 3, Interesting

    OK, i am usually one of the first ones to defend sony, and how much i love my PS3(which i do). But this is just too much. How can sony honestly be that stupid. Unless we are missing something and they are going to drop the 80gb model down to 499 after the 60gb is phased out this makes no sense at all. Why announce this after you have an amazing showing at E3 and then screw it all up with bad PR like this. Really ridiculous.

    1. Re:I just dont get it by RamblinLonghorn · · Score: 3, Interesting

      Agreed. The 100$ price cut just becomes a publicity stunt aimed at hyping the press in advance of E3. Combined with Microsoft's admission of the defects in the 360, the PS3 price cut had many people thinking that momentum had shifted. Now I personally see Sony as desperate. Even stranger is that the European market was told they would not get a 100$ price cut, but that they would get an announced bundle of a 60gb system, 2 controllers and 2 games for the standard same price. This seems like the way the North American model should have been handled.

    2. Re:I just dont get it by Applekid · · Score: 2, Interesting

      Pricewise, the EU market's been getting the shaft anyway. So I'm pleased for those across the pond can get a better deal.

      The thing is that there have been some loud voices from Konami and Capcom that say even a $100 cut is too little. Now there really it looks like it's still $600. Hasn't Hideo been kicking around the idea of going multiplatform on MGS4 if the price wasn't dropped?

      --
      More Twoson than Cupertino
    3. Re:I just dont get it by Cerberus911 · · Score: 3, Interesting

      That bundle is probably a way for SONY to get rid of all their rumble-less controllers before they announce their new vibrating ones.

    4. Re:I just dont get it by _xeno_ · · Score: 4, Interesting

      Even better is the admission that they're phasing out the PS3 model with "100% backwards compatibility" to replace it with one with "88%" compatibility. (I'm not sure what that 88% figure means, but it's what the guy said in the interview. Percent of games that work? Percent of PS2 emulated? He didn't say.)

      Then there's this quote:

      [GamesIndustry.biz:] But you're still asking people to commit GBP 425 to a games console. Isn't there a problem with the perception that that's an awful lot of money to shell out?

      It is, but surprisingly, people are paying that amount of money for it.

      It's like he's just begging for people to hate Sony. I don't get it.

      --
      You are in a maze of twisty little relative jumps, all alike.
    5. Re:I just dont get it by MeanderingMind · · Score: 2, Insightful

      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.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    6. Re:I just dont get it by Opportunist · · Score: 3, Funny

      The 88% is probably the average amount of a game you play through before it freezes for good and toasts your safegames in the process.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  2. Foiled again? by Applekid · · Score: 2, Interesting

    I wonder if their plan included possibly forcing Microsoft to cut the price on the 360 (and announce that at e3) and rubbing salt in that wound since Microsoft's game division lost money and with that $1 billion warranty extention deal.

    Didn't go that way, obviously, so, maybe my imagination for dark smoke filled conference rooms at Sony is running wild again.

    --
    More Twoson than Cupertino
    1. Re:Foiled again? by Macthorpe · · Score: 2, Informative

      The turnaround for console replacement is less than a month. They say two weeks maximum to receive and two weeks maximum to return it.

      So even if it did fail (the new consoles already have the issue fixed, so less likely now), your assertion that you'll wait 'months' for a replacement is false.

      --
      "It does not do to leave a live dragon out of your calculations, if you live near him." - Tolkien
    2. Re:Foiled again? by cbreaker · · Score: 2, Informative

      No, it's only been that some of the new refurb units have been outfitted with better cooling parts. There's been no indication of NEW units having the "fix." Eventually, they will do this on newly manufactured units, and eventually this will trickle down the retail market.. maybe by 2008.

      It's still a month to get it replaced. And it sucks, because there's no guarantee your data will be saved, and the 360 provides no way to back up all your data.

      --
      - It's not the Macs I hate. It's Digg users. -
  3. If I were MS by svendsen · · Score: 3, Interesting

    I would cut the xbox 360 (all versions) by $50 and say this is a permanent move. Would put sony on the defensive.

    1. Re:If I were MS by *weasel · · Score: 5, Funny

      I don't even think Microsoft has to worry about Sony at this point. Sony's too busy shooting themselves in the foot over and over.
      Apparently, the only reason their E3 announcements went over faily well, was because they'd paused to reload.

      Microsoft would be better suited pricing the 360 core to compete with the Wii and reinvigorate sales in the premium.
      (sales numbers have been falling off; they're pretty close to the limit on people willing to spend $400 for a console).

      --
      // "Can't clowns and pirates just -try- to get along?"
  4. Damn by Alzheimers · · Score: 5, Insightful

    ...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?)

    1. Re:Damn by Alzheimers · · Score: 2, Interesting

      The point I was *trying* to make was that there are plenty of options coming down the pipe for the rest of this year. While the price cut alone might not have influenced me into buying an PS3, their library is getting interesting enough that it might have pushed me (and many other consumers) over the edge.

      Gamers have a lot to be happy about this year -- an over-abundance of choice is not a bad problem to have. It's really only bad for Sony, trying to woo gamers who have already invested in a console or two into getting one more. Their Blu-ray format might be outselling HD-DVD 2:1, but they're still orders of magnitude lower than the numbers in DVD. As downloadable content becomes more prevalent (see also: MS's deal with Disney) they need to refocus on gamers, and I think Nintendo has shown the grossly underestimated casual market is one such target. Games like EchoChrome and LBP are the inroads, but you're not gonna win any fans in that segment until they show a willingness to play nice with the price. The announced cuts were a bold step (tho not quite enough) and by rescinding that price point the bait-n-switch is gonna turn off a lot of already reluctant consumers.

      If I owned Sony, I'd drop the price to 399 right now, add a billing structure to their online service, and put the entire Sony movie library for download ASAP. MS is already making a killing with Live and the VC on the Wii is a huge draw to the system. Free online content is a great selling point, but Live has shown that a subscription plan won't get rejected out of hand. Even if Sony swallows a huge(er) chunk of the upfront cost, the real money in this generation is going to come in the form of micropayments for downloadable content. Since Sony has announced that they're going to be selling retail titles (not minigames) via download, they're going to poison their retail model even further.

      It's about time one of the big three makes the jump to digital distribution. Sony looks to be out of the gate, but without the established install base their "retail partners" like EB are going to become less and less interested in giving them floorspace when they're not making the profits from sales (and resales) of shiny plastic disks. It's make or break time, and if they don't get burned by the customers, their distributers are going to leave them out in the cold.

  5. Hear that? by BlueParrot · · Score: 4, Funny

    That is the sound of another champagne bottle being opened over at Nintendo ...

    Seriously. It starts looking as if Sony WANTS to lose Europe.

    1. Re:Hear that? by Tol+Dantom · · Score: 2, Funny

      Yeah, it really seems like they're locked in a box with no windows over at Sony HQ. It took a $100 price cut to start to turn the overwhelmingly negative vocal consumer response, now people are ready to buy if only there were some games, but before they can get things going they announce that they're going to ruin it ahead of time. What is wrong with these people? Deny good things vehemently but rushing to tell the bad news must be some new form of corporate Tourettes syndrome.

    2. Re:Hear that? by Opportunist · · Score: 3, Funny

      I'm from Europe. Who or what is Sony?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  6. Re:Fire Sale?! by _xeno_ · · Score: 3, Funny

    BRB, Ordering some Sony fire.

    Ordering a spare laptop battery? (It had to be said.)

    --
    You are in a maze of twisty little relative jumps, all alike.
  7. A stupid non-story by DrXym · · Score: 3, Insightful
    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.

    1. Re:A stupid non-story by samkass · · Score: 2, Interesting

      Agreed! Sony obviously did the right move with the $100 price cut-- The PS3 has led the Amazon "videogames" best-sellers list (with the Blu-Ray remote #2 and extra controller #3) ever since the announcement. They're not going to undo that.

      On Amazon, the PS3 has been outselling the Wii since the price cut, and the XBox 360 is all the way down at #20. (Even the PS2 is outselling the XBox 360 on Amazon.)

      Before people go nuts about never buying anything PS3/Sony/blah blah blah again, why don't you wait to see what ACTUALLY happens?

      (It's also interesting that Blu-Ray remotes for PS3 appear to be selling more units than all the HD DVD players combined... another thing that Sony is not going to endanger with a boneheaded move...)

      --
      E pluribus unum
    2. Re:A stupid non-story by uerunner · · Score: 3, Insightful

      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.

  8. Time for a Management change at Sony.... by trdrstv · · Score: 4, Insightful
    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.

  9. Emotionless PS3 by Deathlizard · · Score: 2, Interesting

    And apparently, the 80GB PS3 removes the Emotion Engine (PS2) hardware and replaces it with software emulation. So not only are they not dropping the price, their making it less backwards compatible as well but hey, here's an extra 20GB and the only game worth playing on the PS3 to make up for it...

    It wasn't even a price cut to begin with. at most, it was a SKU shift. it would be the same thing if MS ditched the core system, dropped the premium to core prices, and priced the Elite and the original's premium price.

    I'm so glad I bought a Wii. No Backwards compatibility problems, no Blinking Red Rings of Death, and more Ben Franklins in my wallet.

  10. Seriously Sony... by Geek_3.3 · · Score: 4, Interesting

    Why is it that every time you almost convince me to buy a PS3 do you have to do something like this? Well, I suppose thanks are in order, since even a $500 upfront cost is still kinda steep and I didn't quite have the disposable income to blow on that just yet.

    All that said, I *will* likely buy a PS3... but not a nanosecond before there is a compelling game for it that will not be out for the Xbox 360. ( Yes, I'm looking at you, Square-Enix.) Hopefully, by then, the freakin thing will be at the $399 price point that I wanted in the first place.

  11. Re:Wrong by MeanderingMind · · Score: 3, Insightful

    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.
    --
    Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
  12. Bad headline by DoofusOfDeath · · Score: 5, Funny

    It's only a fire sale when Sony is selling laptop batteries.

  13. Insanity by Jaaay · · Score: 2, Insightful

    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.

  14. Re:PS3 is Top Seller on Amazon by GrayCalx · · Score: 2, Insightful

    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.

  15. *yawn* by WhiteWolf666 · · Score: 3, Insightful

    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.

    --
    WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
  16. Re:Wrong by Chris+Burke · · Score: 2, Insightful

    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?

    --

    The enemies of Democracy are
  17. Re:Stop with the "Software Emulation" FUD by Anonymous Coward · · Score: 4, Informative

    Incorrect.

    The North Americian Playstation 3 (which contains the Emotion Engine) does support 1080p output.

  18. Re:Only Zonk by MobileTatsu-NJG · · Score: 3, Funny

    "would post a $100 price drop and turn it into an his usual anti-sony campaign."

    Ha! If you think Zonk's behind Sony's bad PR, you've gotta lotta back reading to do, my friend.

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  19. Re:I call BS on this one. by nickyj · · Score: 2, Insightful

    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."

    --
    Causing Chaos Everywhere,
    Nik J.
    The strange world of a loner, in a populous city, drowning in society
  20. Re:Stop with the "Software Emulation" FUD by cmdrpaddy · · Score: 3, Informative

    The North Americian Playstation 3 (which contains the Emotion Engine) does support 1080p output. And not only that the North American PS3 supports more games. The software emulation in European PS3s has a large list of games that have "Should play on PLAYSTATION®3 with noticeable issues".
  21. Re:This is a Fire sale... by trdrstv · · Score: 2, Informative

    As referenced by the updated article, this claim by the SCE Europe president has been refuted by the SCE America PR. Sony announced this as a 'price cut', not a 'clearance'. It would be an obviously stupid move of them to force the consumer back up to the $599 price, it will not happen.

    Did you miss this part?

    Nevertheless, Kaz Hirai himself says the one SKU strategy is the plan. He told Scandinavian website VGTV, "[We do not] have a 2 SKU strategy in the US, we learned very quickly customers respond better to having one SKU than two. We dropped the price on the 60GB model, as you know that model is no longer in production, once it's no longer on store shelves it will just be the $600 SKU."

  22. Microsoft's real game division by tepples · · Score: 2, Interesting

    Yeah, Microsoft has to worry more about the fact that their game division has never done anything but bleed cash. Xbox is not Microsoft's game division. Windows is. Without the abundance of exclusive games for Windows, a lot more people would have already switched to Mac OS X or Ubuntu.