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binary solo said:
WilliamWatts said:

Another price cut of $50 a year after a price cut of $100? So erm when did you fit the plan to make a profit into your estimations? Even throwing in a bundled camera + arc would be quite the expense.

Let's see. PS3 launched at $599/$499 3 years ago (60Gig/20Gig), virtually on it's 3rd anniversay in USA/Japan it went to its current pricving of $349/$299 (250Gig/120Gig). That's a $250/$200 (ave. $225) reduction in 3 years, or average $75 drop in price per year ($83/$66). 2009 saw a price drop of $100, a $50 price drop in 2010 = $150 over these 2 years. Surprise surprise that averages out to $75 per year. Without Arc coming on stream a $50 price cut would be a near certainty in 2010.

Now if you read my post fully I said I thought Arc bundles would be sold at the existing prices. So no reduction in price, but an increase in content, making a virtual price cut (probably of around $50).

Also Sony doesn't need to pack in both the PSEye and the Arc controller with the PS3. Another option would be to pack in the PSEye with every PS3 (there are many existing uses for the PSEye, so even people not interested in the Arc can find uses for the PSEye, including using it as a webcam on their PC (my PS2 Eyetoy is serving that purpose very well at the moment)), and sell an Arc controller (or 2) bundled with the Arc launch game titles. If Sony did this then I could possibly see a $25 HW reduction. Apparently the PSEye is "just a cheap webcam" so it probably only costs Sony $15 (Note Pachter reckons Natal production cost with 3 lenses is $50, PSEye with one lens gotta be considerably less).  $25 price cut + $15 PSEye = $40 virtual pricecut. That's in line with Sony's average annual price cut pattern for PS3. Make an Arc bundle that includes 1 game and controller(s) for $60 on top of the HW (incl. PSEye) RRP and you have a reasonable entry package for motion controls. But they gotta have the attractive software.

But there's no guarantee Sony will include any element of motion control as a pack in component. In many respects Sony are better off maintaining their average annual price drop pattern by dropping the PS3 price by $50 and offering optional Arc bundles at reasonably attractive prices.

Your logic is flawed. The PS3 started out with immature technology so of course the cost would drop rapidly over the first couple of years. Now they run into fixed costs like Ram, royalties, HDD, Blu Ray, advertising, packaging etc which start to make a higher proportion of their overall costs. A virtual price cut huh? It'd be more effective to drop the price and let those who want Arc buy it for themselves theres no point in adding features for a cost which likely fewer than half of buyers will want. Not that im saying that dropping the price would be a good option either.

I still doubt that the PSEye is worth much on its own. Noone has any real use for a PS-Eye except alongside Arc so the one has to come with the other. They would definately never bundle a virgin PSEye. Since you know they want to actually make some money, the closest thing they will do to a price cut is bundle Arc in with the $350 SKU because thats the only PS3 version which has the margin to play with to do such a thing. Cutting the price $50 one year after a $100 price cut will not have a huge effect on their sales because most people who want a PS3 can afford it at the present price. In addition to this a lot more people have already made up their mind as to which console they want before they come into the store.