production getting lower, price drop soon to follow?..

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ps2gcnxbox

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#1 ps2gcnxbox
Member since 2003 • 41 Posts

price drop may come sooner because of lower production costs...

http://ps3.advancedmn.com/article.php?artid=4406

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emitsu97

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#2 emitsu97
Member since 2003 • 10720 Posts

Only important thing in that article:

"God knows whether they will, but lower costs usually lead to lower prices. The right question to ask is whether the full bill of materials is below $499, allowing them to cut price and still avoid losing money," Wedbush Morgan Securities analyst Michael Pachter said. "I'm not competent to answer whether it is, but I am competent to say that when cost is below $499, we should look for a cut to that level."
 

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Shaqneel

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#3 Shaqneel
Member since 2006 • 1413 Posts
Well, the blu-ray laser diodes are getting cheaper as the article said, but that still leaves the cost of the ps3 at about 775 dollars (originally costs sony $900) meaning they are losing less money.  Even if they begin to make a profit at the $600 price tag, they will probably not lower the price for at least a year or two because they need to be earning comfortable profit margins in order to lower the price, otherwise they will still lose money.  In other words, they will lower the price when they can still make a tidy profit on the system with the lowered price.  Finally, it is still selling quite well even at the $600 price tag, so it may just be competition, not cost of materials that will drive the price down.
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Hulabaloza

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#4 Hulabaloza
Member since 2005 • 1322 Posts
It's going to happen this year, but probably not till the CHristmas time.   That's when they'll need the biggest boost.
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rothman713

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#5 rothman713
Member since 2007 • 693 Posts

It's going to happen this year, but probably not till the CHristmas time. That's when they'll need the biggest boost.Hulabaloza

That would be a good plan.

Dropping the price of the system when some killer games arrive, when Home is up and running, and to steal the headlines of the holiday season.

I would hope they're wise enough to make it a $100 drop and not some measly $50 drop. 

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Correyov31

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#6 Correyov31
Member since 2005 • 358 Posts
I don't know about that. They still have to make up for the amount they lost on each sell. The lower productions cost will help them to gain some ground though.
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rothman713

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#8 rothman713
Member since 2007 • 693 Posts

Lol Price go lower that would solve 1 of the hundreds of PS3 problems lol :) who cares can it cook pork chops?JuniorXL4

You'll need a noisier and hotter-running system for pork chops.

Pork needs to be well-done before it can be deemed fit for human consumption. 

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freediro

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#9 freediro
Member since 2006 • 3782 Posts

Lol Price go lower that would solve 1 of the hundreds of PS3 problems lol :) who cares can it cook pork chops?JuniorXL4

try using you 360 that thing gets hot enough to cook a prock chop! 

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mztazmz

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#10 mztazmz
Member since 2003 • 1405 Posts
As of a month ago, Sony was losing around $250 per console. They want to get to break even ASAP before they drop the price. I think it's quite a ways off until that happens.
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choasgod

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#11 choasgod
Member since 2005 • 5710 Posts
Expect a price drop in October.

  I recon the price will drop $40 - $60 just before GTAIV comes out ...
    That would reduce 360's price advantage going into holiday season, make people whom dont have a 360 / PS3 whom are buying 1 for GTA4 potional PS3 customers and yea ...
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deactivated-61ff675e61178

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#12 deactivated-61ff675e61178
Member since 2004 • 12558 Posts
Price drop + great games this fall = win for Sony come holidays
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Lazy_Boy88

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#13 Lazy_Boy88
Member since 2003 • 7418 Posts

Well, the blu-ray laser diodes are getting cheaper as the article said, but that still leaves the cost of the ps3 at about 775 dollars (originally costs sony $900) meaning they are losing less money. Even if they begin to make a profit at the $600 price tag, they will probably not lower the price for at least a year or two because they need to be earning comfortable profit margins in order to lower the price, otherwise they will still lose money. In other words, they will lower the price when they can still make a tidy profit on the system with the lowered price. Finally, it is still selling quite well even at the $600 price tag, so it may just be competition, not cost of materials that will drive the price down. Shaqneel

You have no clue how the costs are divided up don't pretend like you do. 65nm Cell chip is being made, Blu-ray diodes will cost $8 along with prices just natrually going down as mass production ramps up, it's going to be far less than what it cost at first to make. I think I read an article in Jan/Feb that they weren't losing money on each unit anymore and that was before major cost cutting parts. 

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#14 G-Legend
Member since 2005 • 7387 Posts

Expect a price drop in October.

  I recon the price will drop $40 - $60 just before GTAIV comes out ...
    That would reduce 360's price advantage going into holiday season, make people whom dont have a 360 / PS3 whom are buying 1 for GTA4 potional PS3 customers and yea ...
choasgod

exactly i've been saying they would probably drop the price of the PS3 this year for certain reasons and no1 believed me and you should expect one in October or so.

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martyman19828

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#15 martyman19828
Member since 2006 • 149 Posts

the 360 has been on the market approx 4 times as long as the ps3 has.

360 has sold 9 million units and ps3 3 million.

I dont see the problem here, nor do i see the hundreds of posts on the ps3 being "overpriced" with people constantly complaining about how much it costs. 

it is NOT overpriced considering the next gen system with the blu-ray capabilities! 

Sadly it was not marketed for blue collar incomes like the ps1 and ps2's were.  Had this been the case they would have opted out on the HDTV capabilities and made them cheaper.  Costs are costs, markets are markets, thats just how it is!

Sony discontinued the 499 20gb version.  Does anyone else see the irony here?  It was 100 cheaper but yet no one wanted it.

So quit b!tching about the price, save some money, or buy a "more offordable" next gen console (360) and get off the ps3 boards.

 

 

 

 

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crck

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#16 crck
Member since 2006 • 2559 Posts

the 360 has been on the market approx 4 times as long as the ps3 has.

360 has sold 9 million units and ps3 3 million.

I dont see the problem here, nor do i see the hundreds of posts on the ps3 being "overpriced" with people constantly complaining about how much it costs. 

it is NOT overpriced considering the next gen system with the blu-ray capabilities! 

Sadly it was not marketed for blue collar incomes like the ps1 and ps2's were.  Had this been the case they would have opted out on the HDTV capabilities and made them cheaper.  Costs are costs, markets are markets, thats just how it is!

Sony discontinued the 499 20gb version.  Does anyone else see the irony here?  It was 100 cheaper but yet no one wanted it.

So quit b!tching about the price, save some money, or buy a "more offordable" next gen console (360) and get off the ps3 boards.  

martyman19828

Finally someone who makes sense.  Sony already had a $500 system and for whatever reason they got rid of it.  How does dropping the more expensive option to the price of the lower option really do anything?  If people wanted a ps3 they could of got one for $500 but then didnt or not in large enough numbers to boost sales.  Dropping the $600 system to $500 is like advertising a car with a starting price of $10k.  Then telling people they lowered the price but the starting price is still $10k.  It doesn't make much sense as a marketing campaign.  The ps3 needs some impressive games more then anything.  $500 for a system without a strong library of games is the same as a $600 system with no games.  Neither will sell in large numbers until people have a compelling reason to buy one.  That either has to come in the form of some excellent exclusives or Blu-ray finishing off HD-DVD not a price drop.