Economic depression. 400 dollar PS3 = dead?

I live in europe, so the full aftershock of the US depression has yet to hit us, but how is this affecting the sales of the PS3?

Any cool articles about this?

I mean, the 360 is like 150 dollars and the PS3 still 400? Huge difference.

I live in europe, so the full aftershock of the US depression has yet to hit us, but how is this affecting the sales of the PS3?

Any cool articles about this?

I mean, the 360 is like 150 dollars and the PS3 still 400? Huge difference.

chadwardennn

My two of my friends just got them and were starving college artist, not starving, but it's not too bad, it's effecting smaller business more than anything else

During economic recessions, and depressions, usually it is the entertainment industry that thrives. Like in the Great Depression, people looked to nickle theatres to get their mind of the troubles of the depression they were in, so the entertainment industry thrived.

Of course, having a console that is cheaper will definately help it do better, but I can't see it doing all that well in the tradgey that is quickly catching up on the US. This is because 199$ for even an arcade is really expensive when you are struggling to make house payments/CC payments, or were just laid off your job.

Of course, this is all the fault of the people who are too poor to pay back their sub-prime loans, and the Banks who are stupid enough to loan out so many sub-prime loans, and mostly the government for making it mandatory to issue some subprime loans. Hopefully the election will elect a president who will be able to fix these problems (Obama if he chooses Warren Buffet would be a good choice, McCain would be a good choice if he used Warrent Buffet too). Of course, we dont even know if we will go into a recession/depression, of course it is defiantely looking like we are headed toward a bear market, but we'll see.

Things will only sell less(some less than others), but they won't "die".

I live in europe, so the full aftershock of the US depression has yet to hit us, but how is this affecting the sales of the PS3?

Any cool articles about this?

I mean, the 360 is like 150 dollars and the PS3 still 400? Huge difference.

chadwardennn

but I see your point. People will rather buy a Wii or 360 than a Ps3 now. But you'll have to keep in mind that all the consoles are luxury items. People are holding back on that stuff and will buy more things that is needed

you are in worst shape then we are. azell07

[QUOTE="azell07"] you are in worst shape then we are. killerfist

Unlike teh blink troll that made this post, I hope this can be a painless contraction phase for all of us. I really hope we can all prosper, so we continue buying 400 dollar/euro blue ray players.

[QUOTE="killerfist"][QUOTE="azell07"] you are in worst shape then we are. azell07

Unlike teh blink troll that made this post, I hope this can be a painless contraction phase for all of us. I really hope we can all prosper, so we continue buying 400 dollar/euro blue ray players.

And yeah I hope this depression wont last long. But I really doubt that. I think we're looking at 1 year atleast.

I live in europe, so the full aftershock of the US depression has yet to hit us, but how is this affecting the sales of the PS3?

Any cool articles about this?

I mean, the 360 is like 150 dollars and the PS3 still 400? Huge difference.

chadwardennn

They say if the U.S economy slides any more (which i cant see it doing) the EU banks will go to shat

ps3 is $400 and it has shortages of games i dont think anyone would buy it oh and also NO CONSOLE SHOULD COST MORE THAN $200.wally2nv

That's funny, because when you think about, they all do cost more than $200.

Well, the 360 costs more once you decide to go pick up the HDD...the Wii costs more than that, as does the PS3.

I think the PS3 will be fine. The 360 is at $200 yet it only beat the PS3 by just over 100K in September. It'll be 3rd in NA this holiday season but probably 2nd WW.Floppy_Jim

[QUOTE="Floppy_Jim"]I think the PS3 will be fine. The 360 is at $200 yet it only beat the PS3 by just over 100K in September. It'll be 3rd in NA this holiday season but probably 2nd WW.MojondeVACA

No, it's not "nothing". It's just amusing that the PS3 outsold the 360 by 200K in the month that MGS 4 (Not a system seller according to some people) came out. Yet in the month the 360 reaches the magical $200 price point, it "only" outsells the PS3 by barely over 100K. And some people even thought the Arcade model could take on the Wii.

there's no point beating the dead horse, PS3 is already finished. FACTUnbiasedOpinion

50Cent Bulletproof ftw!

/sarcasm..

TC, we're not in a depression yet. If the 700 billion $ plan completely fails, THEN we have to worry. For now we just have to wait though, I don't even think we're in a recession yet.

During economic recessions, and depressions, usually it is the entertainment industry that thrives. Like in the Great Depression, people looked to nickle theatres to get their mind of the troubles of the depression they were in, so the entertainment industry thrived.

diped

This is also true, everyone went to the movies during the depression to get their mind off of it. I don't know how they paid for it, but they did.

"full aftershock of the US depression"

lol, people keep throwing out this......do you people understand what the depression was like? We are so far from what the depression was it's not funny. Could we end up there, maybe......who knows. But people make it seem like we have 10% unemployment rate with everyone going hungry while they live in a cardboard box. Calm down everyone, all this means is most people have to cut back on excess spending. The fact that gasoline will be dropping like a ton of bricks very soon will help as well.

But overall, yes the price of the PS3 in this economic enviroment won't mix very well. Sony is reluctant to drop the price further because they are just now making a little profit off the hardware. Any price cut and they are back in the red. Something tells me they are going to change their mind when they see the X360 outsell them 3 or 4 to 1 in Oct.

TC, we're not in a depression yet. If the 700 billion $ plan completely fails, THEN we have to worry. For now we just have to wait though, I don't even think we're in a recession yet.

angry_fork

You would be correct. We are not in a recession yet, we could lead down that path but its more of a wait and see game.

I dunno about dead but these folks think there could be trouble.

Analyst: Sony Should Consider PS3 Price Cuts In Tough Holiday Battle

With production costs still a formidable challenge, Sony has said not to expect Christmas price cutsfor the PlayStation 3 -- but EEDAR analyst Jesse Divnich believes the PS3 may be taking a big hit from recent Xbox 360 price reductions.

Ahead of September's NPD results expected next week, analysts are bracing for a mixed bag in video game performance. The month's results are expected to suffer greatly in year-over-year comparisons to last year's September, when Halo 3 saw its record-breaking launch.

Despite this, Divnich estimates that Xbox 360 sold 320,000 units in September -- a new monthly record for the console, and a 31 percent weekly sales increase over August. On the other hand, Divnich anticipates PS3 sales to decline 7 percent to 43,000 units a week.

While the analyst says the surge in sales is largely attributable to mainstream consumers attracted to the Xbox 360 Arcade SKU's sub-$200 price point, Divnich warns the monthly NPD may turn out to show the PS3 suffering by comparison.

"We still urge Sony to consider a possible hardware price cut this holiday season," says Divnich. If September hardware sales fall below our estimate (under 200,000 units), it could be an indication that the Xbox 360 price cut played a bigger role on hindering PS3 sales than what we originally expected."

In stating that it had no plans to reduce PS3 prices, Sony has instead touted its software lineup as its primary strength for the crucial holiday season. While Divnich agrees that titles like Resistance 2 and LittleBigPlanet are likely to drive core adoption of the PS3, he also expressed "doubts that either title will lure in casual and mainstream gamers."

"The $399 price point is simply too steep to entice the casual and mainstream markets, regardless of how great Resistance 2 and LittleBigPlanet may be," he says.

Moreover, Divnich anticipates that Gears of War 2will be the season's top-selling game -- and if the rest of Microsoft's first-party software outperforms Sony's in quality and popularity, it could spell further trouble for the PS3.

"We could begin to see a considerable amount of potential PS3 owners, who may be waiting for a PS3 price cut, to choose the Xbox 360 over the PS3," says Divnich.

You clearly don't know what a depression is.SolidGame_basic

The majority of people really don't know whats going on do they?

The worlds banking system is on the verge of collapsing. We don't know at the moment if that $700bn will stop the banks running scared or if they will horde it, still not loaning it to anyone. Its almost the same situation as the great depression.

Now if everyone panics and tries to take their money out of savings accounts, then we are up the **** creek without a paddle.

Monetarypolicy is buggered, confidence isnonexistent and if the banking system gets worse, theacceleratortheorycan't happen, closing off an easier avenue to getting out.

Now we are not in arecessionyet, i believe its 3 quarters of thefinancialyear with negativeeconomicgrowth.

you economic strategists really crack me up. everyone claims to be an expert on the economy and market.LoZonedOut

do explain please

gamers actually care about the ECONOMY?

OMG.

gaming consoles=luxury items

VIDEO GAMING itself is a luxury experience.

so the employee of one bank says, "omg, i don't have a job so i'll have to buy the 360 instead of a ps3!"

the depression makes the people of america and the people who invested in such companies "depressed" not the gamers.

You're asking children on a videogame forum about economic impact? The vast majority in here have their videogame products bought for them. The reality is anyone making less than $150,000 a year is feeling the imapct in a large way. The XBOX 360 will destroy the PS3 this Christmas simply because of price. The Moms and Dads will see a videogame system whos name they recognize for less money than a Wii now. The Parents do not care about HDD's or HDMI cables they will see a $199.00 system and a copy of Gears of War 2 the kid has been asking for at a price that is easily digested. The reality is perhaps Microsoft has made a few mistakes but this one great move will change the very face of this console race come this Holiday.Khansoul

I live in europe, so the full aftershock of the US depression has yet to hit us, but how is this affecting the sales of the PS3?

Any cool articles about this?

I mean, the 360 is like 150 dollars and the PS3 still 400? Huge difference.

chadwardennn

Thanks to the globlization of Finance their is no such thing as a US depression anymore. Were all in the same boat now, sure it's our fault... mostly anyway, but were all connected so it's going to be a world wide depression, not just a US depression.

gamers actually care about the ECONOMY?

OMG.

gaming consoles=luxury items

VIDEO GAMING itself is a luxury experience.

so the employee of one bank says, "omg, i don't have a job so i'll have to buy the 360 instead of a ps3!"

the depression makes the people of america and the people who invested in such companies "depressed" not the gamers.

joopyme

gamers aren't people of america?

Either way, the credit crunch, and tighing of budgets will result in less games sold. Luxury experience or not, video games are normal goods.

[QUOTE="joopyme"]

gamers actually care about the ECONOMY?

OMG.

gaming consoles=luxury items

VIDEO GAMING itself is a luxury experience.

so the employee of one bank says, "omg, i don't have a job so i'll have to buy the 360 instead of a ps3!"

the depression makes the people of america and the people who invested in such companies "depressed" not the gamers.

GundamGuy0

gamers aren't people of america?

Either way, the credit crunch, and tighing of budgets will result in less games sold. Luxury experience or not, video games are normal goods.

ALL gamers aren't the people of america.

video games these days, probably are considered as you say, "normal goods" because it has developed a very populated market. but it is still a luxury experience, nonetheless, it will indirectly result to a "lesser sales" in videogaming merchandise.

Well, firstly, we're not really in the depression stage yet. Why, not one person has jumped to his death on Wall Street :P

If history is any indication, things that bring us joy and entertainment usually sell MORE during economic recessions. However, said objects of joy and entertainment didn't usually run $400, so it's up in the air. I see this economic downslide, if it remains at the level it is at currently, effecting Sony itself more than the consumers. However, should things gets worse...

During economic recessions, and depressions, usually it is the entertainment industry that thrives. Like in the Great Depression, people looked to nickle theatres to get their mind of the troubles of the depression they were in, so the entertainment industry thrived.

Of course, having a console that is cheaper will definately help it do better, but I can't see it doing all that well in the tradgey that is quickly catching up on the US. This is because 199$ for even an arcade is really expensive when you are struggling to make house payments/CC payments, or were just laid off your job.

Of course, this is all the fault of the people who are too poor to pay back their sub-prime loans, and the Banks who are stupid enough to loan out so many sub-prime loans, and mostly the government for making it mandatory to issue some subprime loans. Hopefully the election will elect a president who will be able to fix these problems (Obama if he chooses Warren Buffet would be a good choice, McCain would be a good choice if he used Warrent Buffet too). Of course, we dont even know if we will go into a recession/depression, of course it is defiantely looking like we are headed toward a bear market, but we'll see.

Things will only sell less(some less than others), but they won't "die".

diped

it's not just the banks and people, it's also the freakin credit companies doing what ever the hell they please. I work for a debt settlement company, and these credit card companies are out of control, raising rates through the roof because the feel like it? Most consumers will never be able to pay off any decent debt at the rates they push.

First step is they need to get rid of the default rate STAT.

On that note, it's going to hurt everyone...but I think it would hurt sony more being the highest priced console.

[QUOTE="Khansoul"]You're asking children on a videogame forum about economic impact? The vast majority in here have their videogame products bought for them. The reality is anyone making less than $150,000 a year is feeling the imapct in a large way. The XBOX 360 will destroy the PS3 this Christmas simply because of price. The Moms and Dads will see a videogame system whos name they recognize for less money than a Wii now. The Parents do not care about HDD's or HDMI cables they will see a $199.00 system and a copy of Gears of War 2 the kid has been asking for at a price that is easily digested. The reality is perhaps Microsoft has made a few mistakes but this one great move will change the very face of this console race come this Holiday.POJO_MOFO

Well, firstly, we're not really in the depression stage yet. Why, not one person has jumped to his death on Wall Street :P

If history is any indication, things that bring us joy and entertainment usually sell MORE during economic recessions. However, said objects of joy and entertainment didn't usually run $400, so it's up in the air. I see this economic downslide, if it remains at the level it is at currently, effecting Sony itself more than the consumers. However, should things gets worse...

Verge_6

we are about a spit away from a depression, with the stock market crashing...there has been a 2 trillion loss in 401k and savings. Foreclosures out the wazu, sales are down for companies which is leading to a 6+% in national unemployment and climbing. Then you have a bailout plan that most americans didn't want, and now because the US is the financial capitol of the world, other countries are starting to feel the credit crysis.

lol this is lemmings talking.

mom i want a ps 3 for x-mas sorry son the economy is bad i have to get you a 360 instead.

come-on now parents or adults that want one are not going to let the economy stand in there way to get what they want this holiday season. ps 3 does not = a car,boat,home ect. it is only 400 bucks.

I wish I could tell. PS3 isn't sold to banks & it doesn't deal with sub-prime loans. We've yet to see massive market layoffs across all other industries..that would be a telling factor..but then again, if a majority of us become unemployed, I guess we would turn to our systems to console ourselves. Pun intended.

[QUOTE="MojondeVACA"][QUOTE="Floppy_Jim"]I think the PS3 will be fine. The 360 is at $200 yet it only beat the PS3 by just over 100K in September. It'll be 3rd in NA this holiday season but probably 2nd WW.Floppy_Jim

No, it's not "nothing". It's just amusing that the PS3 outsold the 360 by 200K in the month that MGS 4 (Not a system seller according to some people) came out. Yet in the month the 360 reaches the magical $200 price point, it "only" outsells the PS3 by barely over 100K. And some people even thought the Arcade model could take on the Wii.

But MGS4 was a BIG game for the PS3, regardless of what other fanboys thought. Maybe it only outsold the PS3 by 100,000 (which is respectable anyway) because it's leading up to the Christmas period, so people will probably buy it during November/December.

I wish I could tell. PS3 isn't sold to banks & it doesn't deal with sub-prime loans.

jknight5422

Precisely. At it's current stage, this recession is set to affect Sony, rather than the PS3 itself.

The majority of people really don't know whats going on do they?

The worlds banking system is on the verge of collapsing. We don't know at the moment if that $700bn will stop the banks running scared or if they will horde it, still not loaning it to anyone. Its almost the same situation as the great depression.

Now if everyone panics and tries to take their money out of savings accounts, then we are up the **** creek without a paddle.

Monetarypolicy is buggered, confidence isnonexistent and if the banking system gets worse, theacceleratortheorycan't happen, closing off an easier avenue to getting out.

Now we are not in arecessionyet, i believe its 3 quarters of thefinancialyear with negativeeconomicgrowth.

redstormrisen

The key difference between then an now is all people are fed insured up to 100k. Saying people are just going to panic and take everything out of their savings accounts......no that's no going to happen. What could happen is the rich elite will start to take their money out or at least spread it around to make sure they are covered.

This is one reason why there has been a lot of talk raising the fed insured limit to 250k or 500k. If they were to do that your senario would ever happen.

[QUOTE="jknight5422"]

I wish I could tell. PS3 isn't sold to banks & it doesn't deal with sub-prime loans.

Verge_6

Precisely. At it's current stage, this recession is set to affect Sony, rather than the PS3 itself.

If they keep a $400 price point, I'm sorry but yes the recession will effect PS3 sales.

[QUOTE="Verge_6"][QUOTE="jknight5422"]

I wish I could tell. PS3 isn't sold to banks & it doesn't deal with sub-prime loans.

darthogre

Precisely. At it's current stage, this recession is set to affect Sony, rather than the PS3 itself.

If they keep a $400 price point, I'm sorry but yes the recession will effect PS3 sales.

In my opinion, not at its current state. If things worsen, and we start having a repeat of '29, then of course the PS3 will be effected. But as of now, businesses, for the most part, are feeling the brunt of the recession, rather than their specific products.

Not even a noticable impact in my area at the moment... on anything. In fact, the only thing to happen has been gas prices going down.Velric

it won't effect the "real" economy for a few months. the Gas is down because of fear of global slow down which equals less future demand. (happened in the depression too) we're also seeing much lower retail numbers. they will lead to more job cuts if things don't change.