Sony Computer Entertainment has announced that they will cut the price of the PlayStation3´s 60GB model by $100 to $499. Additionally, an 80GB model will be introduced for the price of $599. Here is an excerpt from their press release (PDF document).
Beginning in August, the new PS3 model will be available in North America for a suggested retail price of $599/$659 CND and will be sold with the popular online-enabled racing game MotorStorm™. In conjunction with this news, the company also announced that effective immediately, the current 60GB PS3 model will be available in North America for $499/$549 CND, or $100 below the original launch price.
There are two ways of interpreting this move. It can either be seen as a $100 price drop alongside the introduction of an upgraded SKU. Or, and I prefer to see it like that, it can be seen as a simple hardware upgrade. No more.
I am sure that many of the more casual customers will not even notice the price cut once those two models hit stores. From the start, there were two PS3 SKUs and they were priced at $499 and $599, respectively. That has not changed.
Sony should have reintroduced the 20GB model and sold that for $399, if you ask me. But that would have made even less financial sense. They canned the 20GB model because they were losing $300 with each unit sold, while ´only´ losing $240 per 60GB unit.
I really do not see this move as much of an incentive to buy a PS3. Very few people will settle for anything less than the premium version (the Xbox360 SKUs have taught us that lesson, if anything). And the premium model´s price simply has not changed.
Source: SCEI press server (PDF document)
Thanks to: Some Guy
“ Very few people will settle for anything less than the premium version (the Xbox360 SKUs have taught us that lesson, if anything). And the premium model’s price simply has not changed.”
ReplyDeleteThere are some differences this time around; the 20GB PS3 was a cut down version that did not include Wi-Fi or flash card readers. This time the 60 GB and the 80GB will have no hardware differences.
I would look at this 80GB model like the 360 Elite; it will only appeal to a small number of people who think they are purchasing something “hard-core” or “better then what everyone else has”. When in actuality they could have saved the money and took the 30 seconds it takes to change the HDD their selves.
I think this is a start, but what really sucks for this move is that the 80 gig will ditch the emotion engine and render ps2 games via software, just like in the UK.
ReplyDeletehttp://www.joystiq.com/2007/07/09/80gb-ps3-has-limited-backwards-compatibility/
It's only a matter of time before they do that to the 60 gig version if you ask me.
Hi Some Guy.
ReplyDeleteFair points. But not getting the premium machine, even though the differences are pretty much irrelevant, still leaves some people (like myself) with this albeit irrational feeling of settling for second best.
Anyway, watch SCEA boss Jack Tretton explain the price cut on CNBC.
I actually feel Sony has tried to fix its problem rather well with a $100.00 price cut, but then shot itself in the foot with the new 80 GB system.
ReplyDeleteNow, Sony is still going to be manufacturing 2 units, but instead of the expensive one selling which is designed to help prevent their loses it will be the cheaper unit selling.
Sony is basically asking people to spend $100.00 extra dollars for 20 GB more hard drive and a first generation game. The consumer just won't go for this option specially if they find out the 60 GIG has the real backwards compatiability and the 80 GIG has emulated. Bad move Sony.
I will not pay $100 more for 20 GB I do not need, and a game I do not want to buy.
So Sony, you helped position yourself better in the market, but you have also split your production between two hardware units which WILL cause one to fail.
It changes nothing to me really except create a few more sales but is still not a mass market product IMO.
ReplyDeleteFal, can you please publish a post with where to watch E3 conferences? Thanks.
Hi Fal....
ReplyDelete"casual customers will not even notice the price cut once those two models hit stores. From the start, there were two PS3 SKUs and they were priced at $499 and $599, respectively."
Couldnt agree more, It seems to me nothing has changed, and I dont think the average consumer will notice the difference. I also did watch SCEA boss Jack Tretton explain the price cut on CNBC news and it was fun to watch. I love how he says that there still market leader..lol That really touched me.
There obviously has been a tempoary surge in PS3's selling today, but its nothing I wouldnt expect considering Sony's fanbase is still quite large enough toget that sort if reaction. But again, I donot foresee this holding for more than a month, if that! The PS3 has been created in arrogance and totally ignoring the competition, especially Nintendo. History should teach us all a lesson, but like children we ignore this and make our own mistakes. This is how we learn in life and its now Sony's time to learn this valuable business lesson that Nintendo did with the N64.
Good luck Sony...I hope the rest of Sony Corp can hold you afloat for two generations.
Hey Grandmaster.
ReplyDeleteFal, can you please publish a post with where to watch E3 conferences? Thanks.
Please check Joystiq for a more thorough link list than I could hope to post.