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Forums - Gaming - Sony: 'Price doesn't make or kill a platform'

chapset on 06 April 2011

nobody pays 800$ for an iphone, they get a 3 year slave contract and get it for free or for a few hundreds bucks



Bet reminder: I bet with Tboned51 that Splatoon won't reach the 1 million shipped mark by the end of 2015. I win if he loses and I lose if I lost.

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psrock on 06 April 2011
HappySqurriel said:
psrock said:
HappySqurriel said:
psrock said:
HappySqurriel said:
KylieDog said:

Sony guy is right, low price didn't make the GC a hit, high price didn't kill the PS3.


But price does have a fairly substantial impact on sales ... For example, the PS3 launching at $600 means that it will probably never pass 55% of the sales of the PS2


But wasn't the PS2 the most expensive console last Gen?

Its not about who is the most or least expensive, it is about whether people believe a console is over priced.

The PS2 and XBox both launched at $300, which was the same price as the original Playstation at launch, and most people believed that it was a reasonable price for a console.


that's called value dude. That's why some people buy $10,000 computers while others by $200 dollars netbook. These companies job is to show the value of their products. 

The xbox sold 20 million consoles, the gamecube which cheaper sold even less. People believed the PS2 offered more than just price. 

But if the PS2 was $600 I'm certain that the XBox and Gamecube would have seen a substantial sales increase at the expense of the PS2.

 

The fact is that Sony is right and wrong with their comment at the same time. Within reason price does not determine the success or failure of a console, but as you start to push the limits of what people believe is reasonable you can make a system a failure on price alone.

The PS3 stayed at $600 for about months. The Wii was selling close to $500 on ebay and the stores hiked the Wii price in 2007 and 2008 due to demand, price was not an issue. There are millions who bought the wii over the PS3's price.



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jacks81x on 06 April 2011
HappySqurriel said:
Mr Khan said:
HappySqurriel said:

I have to think (as many people have already pointed out) this is the beginning of the PR spin to soften the blow of the NGP's eventual price ...

Part of my thinking is that, from the time the PSP launched until the NGP will (probably) launch the American Dollar will have lost between 40% and 50% of its value compared to the yen; and most western currencies are in a (somewhat) similar position. If Sony intends on releasing the NGP for the same (basic) price in Japan, this could translate into the NGP being 66% to 100% more expensive in the United States than the PSP was; and if Sony factored in a price increase of 25% in Japan, the NGP could end up being 100% to 150% more expensive than the PSP was in the United States.

Which would add up to what? I forget the PSP's US launch price and never knew it's Japanese launch price

If I remember correctly, the PSP was $250 at launch and (based on how the yen has changed and may change in the future) this would translate into a $350 to $500 system.

That's a great point as well.  Other countries have had to deal with inflated prices when the US dollar was at its peak.  Now that the Dollar is weaker than ever, naturally prices of consumer products would cost more here than before as well.  That's the reality of the econmic climate in the US today.  Of course, the general American public think they're superior to the rest of the world and should be exempt from such a thing as inflation.



HappySqurriel on 06 April 2011
jacks81x said:
disolitude said:
goforgold said:
disolitude said:

I agree that if you make a compelling original product, price doesn't play such a big difference. I mean, look at Kinect...

However Sony has to yet figure out how to make a compelling video game hardware product and not lose money on it at launch.

which has absolutely nothing to do with what he's talking about

 

Ask Sony Entertainment CEO when PS1 launched for 299 and Saturn and 3DO were sold for 399 how much price had to do with appeal and you'll hear a different answer.


Well, much of that has to do with the game library and 3rd party support.  A console by itself is useless if there are no games.  If Square had released FF7 on 3DO instead, who knows how history would've changed?

And he's not entirely wrong with his point.  In almost every other industry customers are willing to pay premium for quality.   If we all had the same mindset in purchasing other products as we do in purchasing game consoles, we'd all be driving Kia's and wearing K-Mart brand clothes.  What I find ironic is that the general public has no problem paying $600 for an iPad, but yet scream and yell when a game conole that is technically superior and feature-rich cost more than a couple hundred dollars.


First off, iPhones and iPads tend to be purchased through carriers at heavily subsidized prices that make them less expensive than the typical game console; and people tend not to consider the total cost of ownership (including the cost of their data plan over their 3 year contract).

Beyond that, most markets are exactly like the videogame market. If you multiply the cost of a videogame console by 60 to 100 you will find a (rough) approximation to how people would perceive the cost of a console if it was a car. Most people don’t pay for the high end clothes ($200 jeans), and most people see value in paying for more than the bargain brands ($20 jeans); and this means that selling your console at $75 to make it a bargain isn’t a good strategy, and it probably doesn’t make sense to sell a console at $750 or more.



Xen on 06 April 2011
psrock said:

Kinect = $150, fastest selling product

Ipad = from $500 to 800, sold 15 million last year.

 

 

Price means nothing as long you give the consumers value

Yup.

It's easy to say that Tretton is wrong like most people in this thread say, but his statement is pretty much fact.



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jacks81x on 06 April 2011
HappySqurriel said:
jacks81x said:
disolitude said:
goforgold said:
disolitude said:

I agree that if you make a compelling original product, price doesn't play such a big difference. I mean, look at Kinect...

However Sony has to yet figure out how to make a compelling video game hardware product and not lose money on it at launch.

which has absolutely nothing to do with what he's talking about

 

Ask Sony Entertainment CEO when PS1 launched for 299 and Saturn and 3DO were sold for 399 how much price had to do with appeal and you'll hear a different answer.


Well, much of that has to do with the game library and 3rd party support.  A console by itself is useless if there are no games.  If Square had released FF7 on 3DO instead, who knows how history would've changed?

And he's not entirely wrong with his point.  In almost every other industry customers are willing to pay premium for quality.   If we all had the same mindset in purchasing other products as we do in purchasing game consoles, we'd all be driving Kia's and wearing K-Mart brand clothes.  What I find ironic is that the general public has no problem paying $600 for an iPad, but yet scream and yell when a game conole that is technically superior and feature-rich cost more than a couple hundred dollars.


First off, iPhones and iPads tend to be purchased through carriers at heavily subsidized prices that make them less expensive than the typical game console; and people tend not to consider the total cost of ownership (including the cost of their data plan over their 3 year contract).

Beyond that, most markets are exactly like the videogame market. If you multiply the cost of a videogame console by 60 to 100 you will find a (rough) approximation to how people would perceive the cost of a console if it was a car. Most people don’t pay for the high end clothes ($200 jeans), and most people see value in paying for more than the bargain brands ($20 jeans); and this means that selling your console at $75 to make it a bargain isn’t a good strategy, and it probably doesn’t make sense to sell a console at $750 or more.

 

Well, of course value is important.  I wasn't suggesting that value is not a deciding factor when making a purchase.  I'm just surprised that people would almost be offended and take it personally if a game console is priced above what they think it should cost.  With other products, people just buy what they can afford.  They don't generally go out of their way to complain about the $60K BMW or the $2000 Armani suit that they can't afford.   



HappySqurriel on 06 April 2011
jacks81x said:
HappySqurriel said:
jacks81x said:
disolitude said:
goforgold said:
disolitude said:

I agree that if you make a compelling original product, price doesn't play such a big difference. I mean, look at Kinect...

However Sony has to yet figure out how to make a compelling video game hardware product and not lose money on it at launch.

which has absolutely nothing to do with what he's talking about

 

Ask Sony Entertainment CEO when PS1 launched for 299 and Saturn and 3DO were sold for 399 how much price had to do with appeal and you'll hear a different answer.


Well, much of that has to do with the game library and 3rd party support.  A console by itself is useless if there are no games.  If Square had released FF7 on 3DO instead, who knows how history would've changed?

And he's not entirely wrong with his point.  In almost every other industry customers are willing to pay premium for quality.   If we all had the same mindset in purchasing other products as we do in purchasing game consoles, we'd all be driving Kia's and wearing K-Mart brand clothes.  What I find ironic is that the general public has no problem paying $600 for an iPad, but yet scream and yell when a game conole that is technically superior and feature-rich cost more than a couple hundred dollars.


First off, iPhones and iPads tend to be purchased through carriers at heavily subsidized prices that make them less expensive than the typical game console; and people tend not to consider the total cost of ownership (including the cost of their data plan over their 3 year contract).

Beyond that, most markets are exactly like the videogame market. If you multiply the cost of a videogame console by 60 to 100 you will find a (rough) approximation to how people would perceive the cost of a console if it was a car. Most people don’t pay for the high end clothes ($200 jeans), and most people see value in paying for more than the bargain brands ($20 jeans); and this means that selling your console at $75 to make it a bargain isn’t a good strategy, and it probably doesn’t make sense to sell a console at $750 or more.

 

Well, of course value is important.  I wasn't suggesting that value is not a deciding factor when making a purchase.  I'm just surprised that people would almost be offended and take it personally if a game console is priced above what they think it should cost.  With other products, people just buy what they can afford.  They don't generally go out of their way to complain about the $60K BMW or the $2000 Armani suit that they can't afford.   


I think you'd be surprised by how many people would complain if Honda started selling the Civic for $40,000 or $50,000; or if Levis started selling all of their jeans for $150 .



Ajescent on 06 April 2011
Mr Puggsly said:
psrock said:

Kinect = $150, fastest selling product

Ipad = from $500 to 800, sold 15 million last year. 

 

 

Price means nothing as long you give the consumers value

Apple mobile devices are trendy items with a lot of hype. Even cheap people with little money buy them.

Price matters on devices not Apple.

That sorta kinda goes in line with his statement no?



PS One/2/p/3slim/Vita owner. I survived the Apocalyps3/Collaps3 and all I got was this lousy signature.


Xbox One: What are you doing Dave?

Games4Fun on 06 April 2011

I in some ways agree with this statement. But while it might not make or brake it as a whole, it does put a damper on enough people to affect its sales.



jacks81x on 06 April 2011
HappySqurriel said:
jacks81x said:
HappySqurriel said:
jacks81x said:
disolitude said:
goforgold said:
disolitude said:

I agree that if you make a compelling original product, price doesn't play such a big difference. I mean, look at Kinect...

However Sony has to yet figure out how to make a compelling video game hardware product and not lose money on it at launch.

which has absolutely nothing to do with what he's talking about

 

Ask Sony Entertainment CEO when PS1 launched for 299 and Saturn and 3DO were sold for 399 how much price had to do with appeal and you'll hear a different answer.


Well, much of that has to do with the game library and 3rd party support.  A console by itself is useless if there are no games.  If Square had released FF7 on 3DO instead, who knows how history would've changed?

And he's not entirely wrong with his point.  In almost every other industry customers are willing to pay premium for quality.   If we all had the same mindset in purchasing other products as we do in purchasing game consoles, we'd all be driving Kia's and wearing K-Mart brand clothes.  What I find ironic is that the general public has no problem paying $600 for an iPad, but yet scream and yell when a game conole that is technically superior and feature-rich cost more than a couple hundred dollars.


First off, iPhones and iPads tend to be purchased through carriers at heavily subsidized prices that make them less expensive than the typical game console; and people tend not to consider the total cost of ownership (including the cost of their data plan over their 3 year contract).

Beyond that, most markets are exactly like the videogame market. If you multiply the cost of a videogame console by 60 to 100 you will find a (rough) approximation to how people would perceive the cost of a console if it was a car. Most people don’t pay for the high end clothes ($200 jeans), and most people see value in paying for more than the bargain brands ($20 jeans); and this means that selling your console at $75 to make it a bargain isn’t a good strategy, and it probably doesn’t make sense to sell a console at $750 or more.

 

Well, of course value is important.  I wasn't suggesting that value is not a deciding factor when making a purchase.  I'm just surprised that people would almost be offended and take it personally if a game console is priced above what they think it should cost.  With other products, people just buy what they can afford.  They don't generally go out of their way to complain about the $60K BMW or the $2000 Armani suit that they can't afford.   


I think you'd be surprised by how many people would complain if Honda started selling the Civic for $40,000 or $50,000; or if Levis started selling all of their jeans for $150 .


I'm sure they would, but that's a completely different scenario.  The PS3 wasn't released at $200 then suddenly raised to $600.  Also, if Honda did jack up the price of the Civic by a ridiculous margin like you're suggesting, but yet the car itself hasn't really changed, then consumers would simply buy from another maker.  When there is a pre-established value for the car, you can't just jack up the price without improving the product and justifying the cost.  That scenario will never happen in the video game industry.  There is not one example where the MSRP of a game console increases over time.