Sony CEO Confirms Limited $499 PS3 Stock
If you were confused about yesterday's stock announcement, you wouldn't be the only one. Thankfully Kaz Harai, SCEI CEO, has clarified the situation: the $499 60GB PlayStation 3 is a limited offering. They'll only be selling it here in the states until their current stock of the system is cleared out, at which point the only SKU remaining in the states will be the $599 80GB + Motorstorm bundle. The catch is that there is probably enough stock in hand for several months of sales at this price; hence the confusion yesterday about a 'fire sale'. Hirai confirmed this to a Norwegian videogame news site, and the video of the interview is available online. For some perspective, Next Generation has a commentary piece on this strange matter. "Now Sony looks as though it's been spinning consumers. The smart thing to have done would have been to come out and say that the 60Gig version is being discounted and discontinued, and that the bells-n-whistles PS3 at $599 is better value than ever. That didn't happen, and what many have seen as a pretty successful E3 for Sony has been marred by confusion over the future of the platform's strategy. So in those meetings next week, Sony will have cause to look back and consider how things might have been done better."
Does anyone know the status of the backwards compatibility on the new PS3 model they're coming out with? Because I heard they were thinking of ditching it at some point. Will that be happening in the 80 gig model?
-dave
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Stop using 'SKU' in news stories and posts. The word has no meaning outside internal retail outlets and distributors. Saying it makes you sound like a marketdroid.
Not a typewriter
This will spark interest in the 60GB console, and when all the supplies are moved they will cut the price of the 80GB console to $499. I don't see why people are upset about this.
This 60GB PS3 will be the last available model in north america with the PS2 compatibility 100% in hardware, no software emulation?
Anyone playing FF XI on a PS3? Any screenshots comparison with the Xbox 360 version?
On Monday they announced the price cut of the console. Gamers were excited.
On Wednesday they showed off whats to come to the console. Gamers were amazed.
By Thursday, early reports were coming in that the price drop was limited.
At this point we were all fooled by Sony once again. They showed us all their new products and I will admit some of which look really cool. Then they tried to slip this under the radar without anyone noticing. That would of worked ten years ago without much notice but its not that easy today
Whats worst of all though, when their done selling the 60gig model, all you have is a 80gig model which is actually more crippled then then the launch model which had the emotion engine for backward compatibility.
Sony sells a bunch of PS3s at $500, getting their marketshare up and bolstering the confidence of third-party developers, then when they've done that they sell a slightly better PS3 exclusively at $600, hoping that the better line-up (and, hopefully, better press) at that point will keep sales going.
I don't know if this will work or just bite them in the ass. I think it would've been a good idea to sell the new PS3 at $550 and leave Motorstorm out of it, and maybe a better idea to just sell the 60GB PS3 at $450 and stop trying to screw around with the market, but only time can tell.
Rob
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"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
You know... a lot of the problems that Sony has had recently are not necessarily the action they took. Discounting this version of the product so you can introduce an improved* version can be a great move. The quote in the summary brings up a good point, though - it's about their PR! They had a chance to make this great PR, or at least "neutral", but they instead choose to confuse everybody with this idiocy.
I think this has been typical of a lot of their boneheaded moves in the last few years; they have some brain-damaged idea they want to accomplish with the PR, and end up totally screwing the entire announcement. Someone needs to fire the entire PR department over there. It's really damaging their reputation in ways way above and beyond their "normal fuck-ups".
(*) - for some definitions of "improved", which is not really relevant to this point
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It seems likely that once the 60s run out that they'll sell an unbundled version of the 80 at the 499 price. It'd be insane for them to ditch that price just in time for the holiday sales.
If I was Howard Stringer the first thing I would do is fire the entire marketing staff. So far their advertising and handling of everything related to the PS3 has been bungled. From the crying baby advertisements that were outweirded only by Sega's Dreamcast campaign, the early arrogance in the press, to the latest price cut, its not a price cut debacle there hasnt been one element of their PR that has worked in their favor.
drop the price of the 80GB before Christmas. The PS3 is finally selling like it *should*. Sony would have to be complete idiots to give up this momentum, this just seems like a strategy to unload the 60GB hardware. I'm looking forward to some kinda offer or incentive to unload PS3s even more, like trade in your PS2 and get an extra $100 off the price of a 60GB. I think 2 million 60GB are still unsold I expect them to be moved before Christmas and then the 80GB will have a "price cut". This combined with the upcoming games has me excited for Sony
Hey, I'm no expert, but I'd imagine that this *isn't* the PR departments fault. I imagine that Sony execs do whatever bullheaded nonsense they want (like this fiasco) and then when PR goes, "Whoa, whoa! If you do that you're really going to piss people off!" they just get a cold reply of, "Well, we're going ahead with it. You're PR. You fix it."
And that's why you see Sony PR guys always desperately spouting whatever bullshit they can muster to defend Sony. They know Sony is being ludacris, but their job depends on them somehow spinning Sony's actions in a positive light.
I mean, otherwise, you'd think for like $500 a call, they could call anyone of us and we'd be like, "Ummm... you know Sony, I just really don't think that's a good idea, you know, to screw your fan base like that," and they'd be like, "Oh... really? Ok, cool. I guess we won't do it then. Thanks for the advice."
There is a new rumor that the 360 will drop to $199 for the core and $250 for the "real" 360. If this rumor holds true, then Sony might as well pack it in, as there is no way a $599 system will be able to compete against a system that is 90% it's capability at more than 1/3rd the price. Sony Bots have been touting the "Incredible capability" of the PS3 and what an awesome value it is. My biggest question is why the PS3 is not significantly better than the 360, especially given the year's lead time? I own a PS3 and a 360, so don't mark me as a flamebait. I am still smarting after this past Christmas day when my friends (all in their 30's, who have owned every game system ever, like me) came over to see the PS3 and play Resistance: Fall of Man. They could not stop laughing at me and the game. The consensus was, "You paid $800 for this?!"
"Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
Here, as I understand it, is the situation. Hopefully, if I get anything wrong someone will correct me...
Backwards compatibility goes down with the newer 80GB US models.
As others have pointed out, the newer systems lack an in-built Emotion Engine chip, so they rely on software emulation rather than hardware emulation.
The emulation is decent, but it's far from perfect. Sony themselves quote a figure of 88 percent compatibility with the software emulation rather than 100 percent with the hardware emulation.
And, even amongst those 88 percent of titles that work there are some glitches: it's not the case that 88 percent of titles work perfectly while 12 percent have some problems or won't run, rather it's the case that 12 percent won't run at all and 88 percent will run to some degree.
You can read that many ways, but to me it seems to suggest that 88 percent is a marketing person's figure more than anything else: if a game won't get past a fixed point, it has audio or visual glitches all over the place, or if it falls over all the time then you're stretching things if you consider that game in your 88 percent.
Of course, Sony isn't exactly advertising the fact that the newer 80GB models aren't as backwardly compatible as their predecessors. Granted, it won't matter to everyone, but it will matter to some, and those people won't thank Sony for their penny-pinching and shortsightedness.
I don't know what the hell is going on with Sony. When it came to the original PlayStation they ran a flawless campaign and sucked millions of new users into the console market. With the PS2 they didn't put a foot wrong and cleaned up again. But with the PS3 it seems like they've decided to see how much they can piss away the goodwill generated by their previous two generations and opted for one boneheaded move after another.
If they're not careful they're going to end up as yet another sorry story on fuckedcompany.com.
"Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
More info, from Wikipedia's PS3 page:
On March 20, 2007 Sony released a compatibility list; 1,782 of the 2,451 PS2 games (72%) released in Europe had noticeable issues, minor issues or no known issues, with the remainder being incompatible with the console.
As I understand it, the European PS3's only had software emulation. So, by Sony's own admission, backwards compatibility is at 72 percent, and may actually be even lower than that.
If I had any Sony stock I would have sold it a long time ago. These guys are finding new lows of stupidity every other day.
"Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
I never do this, but I must. The parent is correct. SKU is a game industry term, this is a story about the game industry, stop complaining about our vernacular. 3 SKU means there's three different versions of a product/game (3 platforms, 2 platforms, 1 special edition, or Halo 3's 1 normal, 1 special, and 1 uber special edition). Microsoft has 4 360 Console SKUs in america, meaning there's 4 different versions (core, premium, elite, and now halo 3).
Sony would have to be complete idiots to give up this momentum, this just seems like a strategy to unload the 60GB hardware.
A product that has "momentum" doesn't have to get "unloaded".
There are 0x40000000 types of people: those who understand 32-bit IEEE 754 floating point, and those who don't.
...well, remember the "hook to your TV" era of home computers? As soon as the 80GB model comes out, push through a firmware update that includes, oh, I dunno, something along the lines of BASIC w/built-in 3D graphics commands, and let people upload their software for free to a special section of the online store. I mean, $600 for a game console is insane (I'm still waiting for the price to come down and/or fewer bills) but $600 for a computer which you can develop homebrew games on, share 'em with the world, and, OH YEAH IT PLAYS GAMES TOO... see, that's a little more reasonable (especially if you already have the nice TV to hook it up to). Then again, I was always a fan of the TI-99/4A, so I wouldn't mind seeing things head back in that direction again.
As I see it, the XBox 360 is only about 1/6 as good as the PS3, and isn't that much cheaper.
First, the price: Microsoft charges for XBox Live. A couple of years of XBox live subscription pretty much wipes out any price advantage over the PS3. And I suspect the PS3 will continue to see price drops, but XBox Live will not. So, in the long run, the PS3 will be a bit cheaper. Not by much, but by a bit.
As far as the "goodness" of the system, the 360 is limited by the DVD, *not* by the hardware. The 360 has a better GPU, but the PS3 has quite a bit better CPU power. (Now, taking advantage of the cell architecture is a challenge; but the PS3 has quite a bit more raw horsepower than the 360.)
The 360 has about 8G of data per game. As it is, game companies often have to figure out how to fit their game into 8G. There are sacrifices, and those sacrifices are in *content*. The textures are scaled back, there's less video available, etc.
Blu-Ray can store up to 50G. That's about 6 times more storage than DVD. Sure, many games won't require more than 8G; but many will. Now, will they require 50G? Not many. But, *the option is there.* Game companies no longer have to sacrifice content just to squeeze the game onto a DVD.
So, by my reckoning, the PS3 is more than ( 100/90 )% of the 360. Quite a bit more. And since a lot of the value is on-line play, the price difference isn't that great, in the long run (though the upfront cost of the PS3 is daunting, for sure).
Sony has built a system that will take time to reach its full potential. That means the games will take more advantage of the system, and get better, just like they did with the PS2. Compare the first Rayman title with later titles like God of War or the later Ratchet & Clank titles. R:FOM is akin to the first PS2 Rayman title, in that it hardly makes use of the system.
Not that I'd pay $600 for a PS3. But I'm not a huge gamer.
Microsoft is to software what Budweiser is to beer.
So from what I gather, the 80GB PS3 is going to be like the European models, but with an additional 20 GB. Are there no more benefits other than a larger hard drive and the removal of the emotion chip? I mean, for the 60GB over the 20GB, there was the built-in Wifi, card readers, etc. So what I'm trying to get at here is this: Why shouldn't I just get a 60GB PS3 for $500, then swap the default hard drive with a larger hard drive if the 60GB ever gets filled up?
You know, it's no wonder the PS3 is selling as bad as it is. How can anyone take this company or division seriously when you have an executive in Europe saying "they're doing this to clear out units", the American executive saying "it's not a fire sale" and then the head executive in Japan saying "the Euro guy was right but he forgot to mention we have enough stock to last a few months". I'll admit Nintendo's done some stuff like this before, like when people were trying to find out if the Wii was region-free, but when you have a system that isn't selling, it's not the time to be displaying confusion and incompetence of this magnitude.
It's really starting to get really hard to understand the truth in any news that comes from Sony these days. These guys should run for Congress.
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From a PR perspective, I completely agree that Sony has screwed the pooch on managing consumer opinions, at least within the industry. Outside, however, the average consumer just sees a $499 60GB PS3 on sale.
I disagree with the people that insist Sony is driving for some "magic" $599 price point. If it were, I think the sales spike the will see from this price drop will convince them otherwise. The reality for Sony is that they have a huge number of 60GB systems collecting dust on store shelves. The still-born 20GB is largely vanished, and the 80GB isn't even available yet.
Now, if Sony was to announce the 80GB system at the same $499 that the 60GB has just been reduced to, how many of those 60GB systems would they be likely to sell, now or in the future? Not many, I'd wager, unless they planned to drop the price on those even further. The company would be foolish to do that, especially since the 80GB won't be around until August. The smart thing to do -- and what I suspect is Sony's plan all along here -- is to release the 80GB at $599 with the no-longer-in-production 60GB at $499 until the 60GB units are either depleted or nearly impossible to find (as opposed to now, where it's the only thing available!), then get another PR boost with another price drop lowering the 80GB to $499 as well.
So if an extra 20GB is worth an extra $100 or a few months waiting for you, go for it. For me, 60GB is plenty, and the hard drive is already pretty damn easy to upgrade way past the 80GB anyway, if one were so inclined.
It's long past time to call Sony's tactics for exactly what they are, from the PS3's beginning to right now: "Bait and switch." First, they released the $500 20GB version in such small quantities that people couldn't find them, then they discontinued them completely. Now, they've managed to convince people that selling a 60GB console at $500 constitutes a "price cut" (kids, if a console is $500/600 at launch and is $500/600 today, there's been no price cut), only to admit that they've discontinued that model, too - with every reason to believe, by the way, that the new 80GB model is costing them significantly less to manufacture than the 60GB model! The PS3's marketing from day one has been a scam, attempting to make consumers pay more for the PS3 than they expected. Bait. And. Switch.
I have a different take on the price drop that I haven't heard anywhere yet...I don't like it.
Why?
I have an XBOX 360 and a PS3, and I primarily play online games. When Vegas came out on the 360 I was addicted. When it came out on a few weeks ago on the PS3 I rented it to see the differences... and low and behold the online play on the PlayStation Network was 100x better than that of XBOX Live so I ended up immediately buying it.
Why?
No kids! I'm 28 years old and I can't stand playing games in rooms filled with 12 year olds. To me its like going to a movie and sitting right next to a crying 1 y/o...get a freakin baby sitter already! The lack of immature squeaky voices on the PlayStation Network can only be attributed to the PS3's price point.
So, in the end, I hope the Wii and XBOX 360 keep selling the way they are and making their way into the homes laden with kids because its providing me with a far superior online experience.
"The smart thing to have done would have been to come out and say that the 60Gig version is being discounted and discontinued, "
Can you imagine the field day, that Zonk and his Sony hating buddies would have...
Lets face it, it does not matter what Sony actually does, Zonk and his buddies will find a way to spin it into a negative..
If you want a $499 PS3, go out an buy one in the next month or so, if not, shut the fuck up about it.. It's really that simple..
If you want to talk Firesales, look no further than the HD DUD add-on for the 360...
I know of a particular product that requires a bit of momentum to unload.
Said product resides deep within the bowels. The literal bowels.
Hrm... might have a strong correlation.
This holiday season could be a "make or break" for Sony--and the fact is that they have little more to offer for Christmas than just a bunch of promises, titles that will also be released on the 360 (like GTA IV), and a $600 price tag. The 360 has Halo 2, Mass Effect, and a number of other EXCLUSIVES that will actually be sitting on store shelves this Christmas. And if MS lowers its price tag even more, Sony could well be permanently screwed, and see the PS3 go the way of the 3DO.
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So, if they manage to sell 145k systems in the July NPD report, that's selling like it should? Yea, big improvement over the 80k they normally do, but still pathetic and still way under what the PS2 did and the Wii is doing.
Meanwhile, if I invested in entertainment I'd be dumping the stock of any 3rd party dumb enough to give the PS3 an exclusive w/o serious cash incentives from Sony. It's business, Sony is so far behind now that the cycle has already started. They're fucked. It's a failure.
The bright bit is that even the failures get a decent library, so it'll probably still end this as a good or great gaming system, but there's no huge turnaround coming, no when this game comes out it'll push the PS3 to number 1. It's an also ran. Live with it.
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