Price Cut to Hurt PS3 Sales in the Long Run?
By Jonathan on Tuesday, June 19th, 2007 at 9:10 AM PST In Sony, Sony, Sony
There’s an interesting article up on the Sony Protection Group’s website about how a price cut for the PS3 may not actually help sales of the system. In the article, they analyze the sales of the PSP before and after its own price cut. While the price cut did boost sales of the handheld temporarily, it seems the following weeks showed a sharp decline:
“All the spike has done is shift some sales sooner but REAL extra sales are non evident. Now, we will NEVER know if the price cut will extend the length of time Sony can keep selling the PSP but we can see that it was a very temporary spike. All that a price cut does is satiate the demand from those that are price concious [sic]. It does not, by itself, create demand.”
While I see their point, I think comparing the PSP and the PS3 — as many seem apt to do — is kind of a stretch. For one thing, the home console market and the handheld market are very different. For another, the PSP really lacks the games to sell a system; a problem the PS3 may remedy by winter. Sony’s been promoting the hardware strength of it’s console since before its launch, with few positive results; so I don’t think that’s the problem. The release of a number of new games may ramp up the value of the system, but a price cut will also garner the important “impulse buyers.”
Also, and I say this as a proud Wii owner, Nintendo seems to be setting itself up to be de-throned as the reigning console champion. They only have a handful of worthwhile games coming out this year, compared to the plethora of exclusives the PS3 has planned. If there was a time to get the jump on them, I’d say it’d be now.
There’s another reason a price cut could hurt in the long run, Microsoft would surely follow suit with a price cut of there own and the nearer they get to that $199 sweet spot the more market share they’ll enjoy.
I believe that MS could clean-up right now if they took a bit more of a hit on the price of the 360 and if they did it now before Sony, it could be game over for the PS3.
Sony has done almost everything a corp. would do if it was trying to destroy it’s reputation and market share, starting with a ridiculous price point.
If the price of the PS3 isn’t reduced dramatically within the next six months, the PS brand will go the way of the 3DO. It may already be too late.
Have we not seen this before!?!?! O that’s right it was the PS2 same crap, “price point”, and “no good games,” if memory serves me right, a year later BOOM!!!! the ps3 was red hot… I’m no fan boy but Nintendo will do it normal thing, Metroid, Mario, Zelda, and nothing but crap games, like the gamecube before it. As for as the xbox goes what a rip off, pay for this pay for that all your xbox is broke pay for it to get fix… I went through HELL with my xbox, and it still is crap. Who wants to talk about games!?!?! its been a year 360 has put out C+ and B games, Halo might be its first A but from the beta A- and that’s not a joke. I will wait to buy a PS3 but I am more the certain it will be the leader lets say… um… this time next year…
What plethora of exclusives does PS3 have lined up for this year??
november may be the moment for a price drop or some good bundel pack to bust there sales. here in mexico it sales for 1000 us dllr.
CJ – do you realize that for the ps3 to catch the 360 – (forget about the wii) by this time next year – at the curent price or even 100 dollars less the PS3 hardware sales alone would account for almost half of the yearly video game markets total sales potential. and this before even beginning to talk about selling games?
the ps3 is quite simply too god damn expensive. Even at 400 bux the xbox 360 is too expensive. the 360 will never sell 10 m units in one year at 300/400 bux because thats around a quater of the industrys gross value. You cant squeeze blood from a stone. even with somewhat desirable titles.
if u want a ps3 with an attach rate of 3.0 ur talkin about consumers putting down nearly 1000 dollars at the counter between cables games and controllers. Even more if you realize that most consumers dont have HDTV and might not want a ps3 with out a monster HD set.
FOR CHRIST SAKES….THE WII IS KILLING THE COMPETITION RIGHT NOW!!!!.EVERYONE IS TALKING ABOUT A PRICE CUT MAKING A DIFFERENCE FOR SONY AND THE 360 BUT NO ONE HAS REALISED THE OBVIOUS UNSEEN FACTOR.THE WII IS MAKING A PROFIT FROM DAY 1 ON EACH CONSOLE SOLD.NINTENDO IS IN A POSISTION TO DO A PRICE CUT OF THEIR OWN RIGHT NOW AND GET TO THAT $199 SWEET SPOT FASTER.THE WAY I SEE IT NINTENDO PUT ITSELF IN THE BEST SCENARIO POSSIBLE!ANYONE EVER HEARD OF THE PHRASE”FIRST FROM LAST”???LET THAT PLAY IN YOUR MINDS AND THEN YOU’LL SEE MY POINT!
WII IS THE SH*t!
Microsoft will never be able to put an end to Sony as long as Sony does SOMETHING about the price. The 360 will likely be cheaper than the PS3 for atleast the next 2-3 yrs until the price of technology evens out enough (like last gen). But as many analysts are quick to point out, 360 sales are pretty flat everywhere outside of the U.S. It suffers from the same problems as the xbox. The library DOES have a few great games, but overall it’s just pretty stale & doesn’t generate any wide public interest. MS has done a good job in getting multiplats this gen… but when it comes to exclusives they still don’t have much to offer to anyone but fans of shooters, period.
Oh, and the Gamecube was always cheaper than the competition last gen. The price alone isn’t going to make a difference… no matter how quick the Wii & 360 drop in price, we saw that last gen. The Wii is in danger b/c even if it drops to $99, if the other two consoles drop into the affordable ’sweet spot’, it will no longer be the preferred affordable console. It’s quite simply the most dated of the three… and it’s still new. That said, I am still looking forward to the next MP.
John, have you not been reading any gaming sites lately? The PS3 has the most exclusives being released for Q3/Q4 of 2007 out of the 3 consoles and has been getting the most media attn for them as well (with the exception of MS’s Halo 3).
I own Wii, 360 and PS3.
For some time now, Wii has been collecting dust, there is no game I want to play. I’m not into “GameCube on Wii” gig. My Wii is on eBay right now.
Now, 360 and PS3, I’m just loving the future. Just look what’s coming in the next 3-6 months. I don’t care if you’re MS or Sony boy, this is going to be good. As for who’s on first and who’s on second, don’t care, just keep it close and that will make it great for all gamers. These 3 companies will not rush to spend $$$ on quality if they’re ahead of competition reach.
oh come on. i live in the uk. so i payed a hell of a lot more for a ps3, also got hdtv… i have a shit part time job in a hotel workin two days a week. pay is crap. yet it didnt take long at al to get ps3 and hdtv got it on launch and everything i need to use the bluddy thing so stop al the BS about “the price is too high” if i can get 1 any1 can. hell the only people moaning about the price are people on the dull… oh and i pay for them to! so shut the fuk up!
the good games are supposed to come out this summer like rainbow six vegas, graw 2, heavenly sword, ratchet and clank 5, warhawk and etc.
well to bad you could play rainbow six and graw 2 months ago on the box
Microsoft isn’t doing anything to Sony. Its we the consumers who are doing it plus Sony themselves. The PS3 is expensive and you can get a similar experience on the X360. Dropping the price of the PS3 will result in a price cut for the X360 and vice versa. Unless you’re specifically trying to get a PS3, the X360 will look even more appealing because it would be that much cheaper.
The PS3 is a very capable console, and while it does have a blu-ray player built in, don’t be surprised if MSFT releases a blu-ray add-on like they did for HD-DVD. That way you only pay for the console if you’re not interested in blu-ray/HD-DVD. Also, if anything fails, at least they’re separate so you won’t have to replace everything.
The Wii definitely is dominating the competition. If MSFT drops the price of the X360 by $100 before the end of the year, then there’ll be a lot more X360 gamers. Videogame developers/publishers will definitely take note of this. Sony had the advantage last gen with the PS2 and its huge installed base. Which publisher would want to ignore that? If the X360 and Wii take off this Fall with respects to sales, then both will hold the advantage. The only reason the PS3 hasn’t sunk is because of the support built by the PS2. People simply assumed that moving to the PS3 was the most logical choice. However, with the decisions Sony have made, its no longer so straight forward.
In the end, Sony will be fine, even if the PS3 doesn’t turn out as well as they thought. They’ll most likely win the format war so they’ll be making a lot of money of blu-ray.
[Cj:
]
Have we not seen this before!?!?! O that's right it was the PS2 same crap, "price point", and "no good games," if memory serves me right, a year later BOOM!!!! the ps3 was red hot… I'm no fan boy but Nintendo will do it normal thing, Metroid, Mario, Zelda, and nothing but crap games, like the gamecube before it. As for as the xbox goes what a rip off, pay for this pay for that all your xbox is broke pay for it to get fix… I went through HELL with my xbox, and it still is crap. Who wants to talk about games!?!?! its been a year 360 has put out C+ and B games, Halo might be its first A but from the beta A- and that's not a joke. I will wait to buy a PS3 but I am more the certain it will be the leader lets say… um… this time next year…
Took the words right out of my mouth!
That’s exactly what i always say. But some argue back that the demographic has changed since back then, the consoles are more expensive now, blablabla, but ultimately nothing’s changed since the PS2 cept the technology that revolves around it.
Everything is all playing out exactly as it did back then when the PS2 was first out.
The same cannot be said about the games, on the other hand, because they have been evolving over the years, and i believe that the PS3 is the only console capable taking that evolution to it’s next step.
Inevitably, someone *cough Hideo Kojima cough* will come up with a breakthrough that will take full advantage of the horsepower packed under that hood sooner or later, whether it’s a year from now or 3 years from now… and the games will set new standards other consoles can’t meet.
I can’t say i see that happening on my Wii, that only comes to life occasionally when friends are over, or my no.3 xbox 360.
I’m extremely happy with my PS3
I own a 360 and like it. Have also hearing about blue ray since computer mags been
predicting about it almost 8 years or more ago and was looking forward. but price does make a difference…Sony will
eventually in my mind be on top..SO WHAT..xbox has loyal fans and nintendo does too. Hell i hear blockbuster video is getting creamed by netflix!! and they dont even have any stores..desperate times call for desperate measures so see price drops, more games, needless features….and remember
dont feel sorry for multi-billionaires ( on either side )
p.s. i want to see a hd-dvd or blu-ray RECORDER come out before i make big purchase.
i use too beleive in sony but after these low sales i gave up in them. All sony is doing is making promises they cant keep. this dosent mean im going with microsoft. im going with a old friend i havent seen in a long time.. NINTENDO.
WTF is a Sony Protection Group? Good Lord!!!
Some fanbois need to go get some fresh air.
Sony are in a war of attrition with M$ and Nin, with PS3 they have literally given the market away to these others, 360 performs on-par with PS3 in consumer’s opinion yet costs a lot less and Wii has been a boon for Nin and is almost impulse buy status.
M$ have a multi billion dollar war chest that could see them through giving 360’s away for free. Sony, well their consumer elect’ biz is in slow but steady decline and PS3 is a market-share loser in its present retail form.
Why protect Sony, when their too stupid/arrogant/slow to protect temselves?
Bang!
Really, all it boils down to is the games. I think that Sony and MS have blundered badly by trying to get ‘total entertainment hubs’ into our livingrooms disguised as games consoles. for godsake we want to play games, which is why we buy games consoles. this is partly why the Wii is doing so well, does what it says on the tin. I think that the 360 will probably win this gen. not because it is any better than the ps3 or wii, just simply because all the good games are going to be on the 360. Since there are so many great cross platform games (like GTA, Assassins Creed) coming out, I see them as being real drivers for the 360 and to the detriment of the PS3. When the games are cross platform, the graphical quality is usually limited by the inferior hardware, which is the 360 (as happened last Gen with the ps2). This means that there will be little difference between the ps3 and the 360 in the big important games that everyone wants to play (like GTA 4). Since the 360 is so much cheaper than the ps3 people will probably buy a 360 to play the games, which turns cross platform games into sort-of-exculusives for the 360. I just dont see enough cracking ps3 exclusives to warrent the extra expense (unless you want a blu ray player of course). In addition, the 360 has a couple of hard hitting exclusives on the way in the form of Halo 3 and Mass effect. By the time the PS3 has games out that are notably superior than the games you can get on the 360, it will probably be too late. The 360 will have a huge base and will be insurmountable, at least for this gen.
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