Today's price really confirms the idea that another major price drop might occur right before Christmas.
1) July is a slow month to announce a price especially since this generates buzz in the industry and gets you good press time. I understand it's E3 but they could have announced the drop and then say it would be affective like November or December. No they said the price change was immeadiate and everywhere in NA territory.
2) 80 GB model is just a gimmick to see if people bite on it. Why would you buy 20 extra gig and Motorstorm for an extra $100 buck when you can get an 100 GB drive on the web for $35-40 and get Motorstorm at gamestop for $30-35? Sony is just testing the market to see if there is any real demand for this size of hard drive. They know having multiple SKU is a bad idea especially after the Xbox 360 Elite. This package has very little value to it and Sony knows it very clearly.
So I think the long term thinking is stop the bleeding right now with a $100 price cut and test the 80 GB model's demand. I expect around November that Sony will announce a 2nd price cut of $100 going to a full $399.99 and making the 80 GB the standard SKU and discontinue 60 GB model.
Why Sony does this?
1) Microsoft is bound to respond with a price cut of their own sooner or later but sometime near the Halo 3 launch at which point the gap between the 360 and PS3 is again up to $200. Sony will not sit there and wait to shrink it's market share so they will need to counter once more.
2) Many people don't understand that the high price of the PS3 is due to Blue Ray diodes which are now becoming less expensive to mass produce and higher yields. At some point Sony has to make a BOLD move and risk even greater loss in hopes of staying close in the race and hoping the technology becomes the industry standard in a few years so they come out ahead.
3) We already know BD is currently leading the HD format market and if by the end of the year most retailers pull the plug on HD-DVD then Sony can take deep breaths. This single factor could lead to the mentioned price cut because with the format war over, Sony can afford to take up losses in the hardware department knowing they can recover them from royalties of BD movies. Look at it this way, Sony is trying to create a large user base to make money from both game and BD movie sales so either way they get royalties from every single disc sold. No Hollywood studio will deny a 10-12 million userbase already established for BD by the end of the year.
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