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starcraft said:
1. I'm not going to speculate as too the increase in PS3 sales. Certainly it is clear to all that such an early release of a PS3 Slim would be a sign of desperation, only possible due to the original removal of "core" PS3 features.

2. Furthermore, it is clear that this would signal (along with GT5's release) the end of almost anything significant Sony are capable of doing to push their console. If the results are anything less than extraordinary to the point of the relentless crushing of the Xbox 360 for months and months on end, it is the end of the PS3's chances of ending anything other than third.

3. One final point: In the last quarter Sony released what was arguably the most expensive shooter ever made. It was a first party title, maximizing revenue. They still lost over $200 million that quarter. Perhaps bear that in mind when discussing the $299 PS3 notion.

 

1.  Of course it's desperation.  Everyone knows they need to do something.  This something could be a game changer, however.

2. Outside of further price drops, yes.  Through various channels, I'm hearing that GT5 will make it out this year WW, and FFXIII should (through less accurate sources, but it makes sense from a logical standpoint) be hitting Japan at the end of the year as well.  These two things combined with a theoretical slim ps3 at $299 would be one hell of a combination, and if this can't help the ps3, then... hell, I can't think of any such favorable situation for a past struggling console to compare this too.  Halo 2's launch has nothing on this.

3. If they were only a publisher, Killzone 2's release would bear more significance.  Even making the liberal assumptions that they make ~$40 USD per copy of the game sold and that they shipped 1.5 million copies before the quarter was over, that would've only netter them $60 million in revenue.  Meanwhile, they would've lost $40 (maybe 45-50 after shipping, etc.) per ps3 on over 2 million sold in the same quarter, plus spent a good bit on R&D for the new PSP/PS3.

And yes, their losses on the surface make a $299 ps3 seem less likely, but keep in mind a number of things:

  • Sony has projected that they'll ship 13 million ps3s this FY, a 30% increase YoY, despite being down YoY thus far.  A price cut explains this.
  • They've projected similar losses to those from this past FY, despite theoretical gains from cost cutting measures (like the ps3 slim).  A price cut explains this.
  • They have big plans for the PSN, given Stringer's recent comments.  They plan to bring it to more platforms, with the ps3 as the ultimate hub.  Hell, they even combined Vaio and Walkman with SCE under Kaz Hirai's control, in a new division called "Networked Devices".  They've obviously got something in mind for all of this, and the ps3 is at the center of it all.  They probably plan to offset any losses incurred by the price cut with gains in other areas as a result of the price cut.  Combining SCE with two other profitable divisions also helps them to muddy the financial waters, helping to hide losses from a price cut from shareholders.