Why Sony can't drop the price of the PS3

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XturnalS

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#1 XturnalS
Member since 2004 • 5020 Posts

http://ps3.kombo.com/article.php?artid=9769

Here is a pretty good article detailing what has happened to Sony and why they cannot lower the price of the PS3. It may also explain the $250 tag for the PSPGo.

I think this article will shed the light on the real reasons why Sony won't drop the price, sorry news to all those holding out but I don't think its coming anytime soon. But as the author states they can still gain some profitability by releasing exclusive content to those with one and/or can afford the high price tag. Which they have been doing, which I'll welcome with open arms.

This can also explain the rise in the wii's price in EU and lack of price drop all together.

Thoughts?

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AgentA-Mi6

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#2 AgentA-Mi6
Member since 2006 • 16740 Posts

I've been saying it for months, Sony wont drop the price any time soon, 400$ is the price plain and simple.

Nobody listens to the Old AgentA-Mi6.

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PSfanboy101

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#3 PSfanboy101
Member since 2008 • 1734 Posts

http://ps3.kombo.com/article.php?artid=9769

Here is a pretty good article detailing what has happened to Sony and why they cannot lower the price of the PS3. It may also explain the $250 tag for the PSPGo.

I think this article will shed the light on the real reasons why Sony won't drop the price, sorry news to all those holding out but I don't think its coming anytime soon. But as the author states they can still gain some profitability by releasing exclusive content to those with one and/or can afford the high price tag. Which they have been doing, which I'll welcome with open arms.

This can also explain the rise in the wii's price in EU and lack of price drop all together.

Thoughts?

XturnalS
Because it cost alot of money to make a playstaion 3 and if they cut the price they would loose money...arent they already loosing money anyway?
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PSfanboy101

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#4 PSfanboy101
Member since 2008 • 1734 Posts
[QUOTE="XturnalS"]

http://ps3.kombo.com/article.php?artid=9769

Here is a pretty good article detailing what has happened to Sony and why they cannot lower the price of the PS3. It may also explain the $250 tag for the PSPGo.

I think this article will shed the light on the real reasons why Sony won't drop the price, sorry news to all those holding out but I don't think its coming anytime soon. But as the author states they can still gain some profitability by releasing exclusive content to those with one and/or can afford the high price tag. Which they have been doing, which I'll welcome with open arms.

This can also explain the rise in the wii's price in EU and lack of price drop all together.

Thoughts?

PSfanboy101
Oh sorry thought you were asking why they couldnt. Because it cost alot of money to make a playstaion 3 and if they cut the price they would loose money...arent they already loosing money anyway?

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ZoomZoom2490

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#5 ZoomZoom2490
Member since 2008 • 3943 Posts

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

other reason's arebecause its the only true-next gen hardware, unlike 360 with a 12+ year old format, rrod, etc. Ps3 has the best 1st party support now and in the future.

i actually want sony to charge more for ps3, it offers over $1000 dollars more than what 360 does.

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Gxgear

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#6 Gxgear
Member since 2003 • 10425 Posts

Currency? That's all you got?

Sony can't win a price war why go would they go there in the first place.

Price drop is eventual, but it won't be to one-up competitors or because of customer appreciation.

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Danm_999

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#7 Danm_999
Member since 2003 • 13924 Posts

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

ZoomZoom2490
Well, arguably they do have to since their console is selling the worst of the three.
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Dark_Day

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#8 Dark_Day
Member since 2009 • 28 Posts

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

other reason's arebecause its the only true-next gen hardware, unlike 360 with a 12+ year old format, rrod, etc. Ps3 has the best 1st party support now and in the future.

i actually want sony to charge more for ps3, it offers over $1000 dollars more than what 360 does.

ZoomZoom2490
Why would they charge 1000 for a blu ray player?
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djsifer01

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#9 djsifer01
Member since 2005 • 7238 Posts
Because your geting a sweet deal at the price point its at. The price will drop when the cell becomes cheaper to manufacture.
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ZoomZoom2490

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#10 ZoomZoom2490
Member since 2008 • 3943 Posts
[QUOTE="Dark_Day"][QUOTE="ZoomZoom2490"]

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

other reason's arebecause its the only true-next gen hardware, unlike 360 with a 12+ year old format, rrod, etc. Ps3 has the best 1st party support now and in the future.

i actually want sony to charge more for ps3, it offers over $1000 dollars more than what 360 does.

Why would they charge 1000 for a blu ray player?

all im saying is that i would rather pay $1500 dollars for ps3 than owning the 12 year old hardware that breaks down every few months.
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gamecubepad

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#11 gamecubepad
Member since 2003 • 7214 Posts

I thought they couldn't lower the price of the PS3 because they still lose almost $100 per system. My brains are fried, but wouldn't that mean that if they dropped the price $100 they would lose $200. Hmm. Yeah that seems to compute alrighty. How would that be good for business?

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XturnalS

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#12 XturnalS
Member since 2004 • 5020 Posts

Ok last time I checked the title was a statement and not a question...The article already says why they can't...

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mattbbpl

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#13 mattbbpl
Member since 2006 • 23356 Posts
[QUOTE="Gxgear"]

Currency? That's all you got?

Sony can't win a price war why go would they go there in the first place.

Price drop is eventual, but it won't be to one-up competitors or because of customer appreciation.

Currency is actually a crucially important factor in matters like this. When the $400 you get from an item isn't worth the same amount of real money as the $400 you got from the same item a year ago, it hurts your profit margins.
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nervmeister

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#14 nervmeister
Member since 2005 • 15377 Posts

Because your geting a sweet deal at the price point its at. The price will drop when the cell becomes cheaper to manufacture.djsifer01
Speaking of which, how long does it usually take for new tech to become significantly cheaper to manufacture?

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mattbbpl

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#15 mattbbpl
Member since 2006 • 23356 Posts

[QUOTE="djsifer01"]Because your geting a sweet deal at the price point its at. The price will drop when the cell becomes cheaper to manufacture.nervmeister

Speaking of which, how long does it usually take for new tech to become significantly cheaper to manufacture?

It really depends on the tech involved. In the case of the Cell, however, its directly linked to the manufacturing process and, hence die size. The lower the manufacturing process (i.e. moving from a 65nm process to a 45 nm process) the less area of a silicon wafer is required for the chips, and thus the lower the cost will be. Since we typically are able to halve thedie size every 18 to 24 months per Moore's Law, therein lies your answer.

Edit: Sorry, it should have read "able to halve the die size"

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Bauers-Twin

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#16 Bauers-Twin
Member since 2007 • 14150 Posts
because its worth every penny
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gamecubepad

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#17 gamecubepad
Member since 2003 • 7214 Posts

That article was all fluff. They can't drop the price because they're bleeding too badly and they already lose too much per unit without the software sales to compensate. I love this line...

"This is an opportunity for Sony to create that which has not existed with their previous platforms: the honest-to-goodness Sony fanboy. Fanboys are ripest for creation when they have spent a large amount of money investing in a system they believed in that has now been left by the wayside by the rest of the market."

Are those tears I see running down his face?

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Gxgear

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#18 Gxgear
Member since 2003 • 10425 Posts

[QUOTE="Gxgear"]

Currency? That's all you got?

Sony can't win a price war why go would they go there in the first place.

Price drop is eventual, but it won't be to one-up competitors or because of customer appreciation.

mattbbpl

Currency is actually a crucially important factor in matters like this. When the $400 you get from an item isn't worth the same amount of real money as the $400 you got from the same item a year ago, it hurts your profit margins.

What does you statement have anything to do with currency?

Sony knew they were designing a console sold worldwide, currency is hardly the reason that the PS3 fetches $400 a pop.

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ZoomZoom2490

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#19 ZoomZoom2490
Member since 2008 • 3943 Posts

want the best hardware? you got to pay for it, end of story. this goes for everything else in life.

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mynamesdenvrmax

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#20 mynamesdenvrmax
Member since 2004 • 2228 Posts

[QUOTE="Dark_Day"][QUOTE="ZoomZoom2490"]

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

other reason's arebecause its the only true-next gen hardware, unlike 360 with a 12+ year old format, rrod, etc. Ps3 has the best 1st party support now and in the future.

i actually want sony to charge more for ps3, it offers over $1000 dollars more than what 360 does.

ZoomZoom2490

Why would they charge 1000 for a blu ray player?

all im saying is that i would rather pay $1500 dollars for ps3 than owning the 12 year old hardware that breaks down every few months.

Thats just plain silly. Even if the console broke every few months and you didnt have a warranty you could buy 5 360's with that much money. Whats sad is there were people who paid close to 1500 on ebay and for what?Nothing good came out for a long time.

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mattbbpl

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#21 mattbbpl
Member since 2006 • 23356 Posts

want the best hardware? you got to pay for it, end of story. this goes for everything else in life.

ZoomZoom2490
It's a common fallacy to attribute cost to quality.
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gamecubepad

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#22 gamecubepad
Member since 2003 • 7214 Posts

[QUOTE="ZoomZoom2490"]

want the best hardware? you got to pay for it, end of story. this goes for everything else in life.

mattbbpl

It's a common fallacy to attribute cost to quality.

Very true. Also, for $500 you can build a PC that would make your PS3 commit seppuku. BD drive included.

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locopatho

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#23 locopatho
Member since 2003 • 24300 Posts
[QUOTE="ZoomZoom2490"][QUOTE="Dark_Day"][QUOTE="ZoomZoom2490"]

they dont have to, they make full legit money on games, unlike all the pirated games that people get and get counted as sold on 360.

other reason's arebecause its the only true-next gen hardware, unlike 360 with a 12+ year old format, rrod, etc. Ps3 has the best 1st party support now and in the future.

i actually want sony to charge more for ps3, it offers over $1000 dollars more than what 360 does.

Why would they charge 1000 for a blu ray player?

all im saying is that i would rather pay $1500 dollars for ps3 than owning the 12 year old hardware that breaks down every few months.

Omg DVD is 12 years old! I suppose you don't use lightbulbs, that last gen tech is like, at least 100 years old! How could you POSSIBLY be seen with such out of date tech :roll:
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mattbbpl

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#24 mattbbpl
Member since 2006 • 23356 Posts
[QUOTE="ZoomZoom2490"][QUOTE="Dark_Day"] Why would they charge 1000 for a blu ray player?locopatho
all im saying is that i would rather pay $1500 dollars for ps3 than owning the 12 year old hardware that breaks down every few months.

Omg DVD is 12 years old! I suppose you don't use lightbulbs, that last gen tech is like, at least 100 years old! How could you POSSIBLY be seen with such out of date tech :roll:

Light bulbs may be a bad example as we've recently begun to ditch the old incandescent versions with compact flourescent designs. Your point still stands, though.
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hakanakumono

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#25 hakanakumono
Member since 2008 • 27455 Posts

I'm surprised that people are scoffing at this, considering that it's what's costing Sony the most right now and is responsible for losses in more than the gaming venture.

Very good article. The PS3's price has gone down for Sony, but not for consumers.

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XturnalS

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#26 XturnalS
Member since 2004 • 5020 Posts

I'm surprised that people are scoffing at this, considering that it's what's costing Sony the most right now and is responsible for losses in more than the gaming venture.

Very good article. The PS3's price has gone down for Sony, but not for consumers.

hakanakumono

Exactly which is why I think the PSP is releasing @ 250 and the Wii hasn't had a price drop and even went it in price over in EU. The exchange rate is killing their profit margins and they are seeing even less of a return on their consoles then ever before.