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Forums - Sales - More evidence of no PS3 price cut this year

BengaBenga on 11 July 2008
fastyxx said:
Gamerace said:

"Our plan is not to reduce the price."

Well it doesn't get anymore clear-cut than that, especially when it's said to investors and not the media.

I don't think they really need one, but they are forfeiting any chance to beat MS in NA (if that was ever possible at all).

Exactly.  This is not a media ploy.  Lying to your investors will get you fired.  And sued.  They can't afford it.  Remember that this last sales spike surrounding Metal Gear Solid 4 made Sony LOSE EVEN MORE MONEY!!!  Remmeber they are LOSING money every time they sell a console.  They hope to make it back in the long term by selling games and accessories and downloads, but in the short term, that cost them millions.

To just shrug and say they should drop proces to "win" a numbers battle in one market is naive and juvenile.  Sony is in busines to MAKE MONEY, not to have the percentage by their name on vgchartz be higher than Microsoft's.  If they dropped price before they get the cost of these things down and before they have software sales really clicking, then they are sealing their economic fate.

 

 

Just give it up, they won't listen no matter what logic you will bring in here.



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Kyros on 11 July 2008

Sony official denying price cut. If anything this means a price cut is confirmed.



fastyxx on 11 July 2008
BengaBenga said:

 

Just give it up, they won't listen no matter what logic you will bring in here.

 

 See the post following yours for example.



Can't we all just get along and play our games in peace?

BengaBenga on 11 July 2008
fastyxx said:
BengaBenga said:

 

Just give it up, they won't listen no matter what logic you will bring in here.

 

 See the post following yours for example.

 

Yeah, it's really ridiculous to expect a pricecut, really ridiculous. Why fool yourself over something like this?



obieslut on 11 July 2008

the ps3 does not need a price cut anyway, it is doing good in all regions and is selling more then they expected to so why would they need to cut the price



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BengaBenga on 11 July 2008
obieslut said:
the ps3 does not need a price cut anyway, it is doing good in all regions and is selling more then they expected to so why would they need to cut the price

 

Indeed, it doesn't need a pricecut at all. It will sell more than projected by Sony, at the current price point.



Torillian on 11 July 2008

ugh...very few people actually said they were expecting....we simply stated that a company won't say it's making a price cut, and that this doesn't make it definite. It could still happen is all people were getting at.



...

HappySqurriel on 11 July 2008

I think this makes it (highly) unlikely that Sony would reduce the price in this fiscal year ...

There is still a possibility but that would require Sony to reduce the manufacturing cost enough that they wouldn't be losing much money at the new price, or for them to feel that it was important enough to take the stock and reputation hit that it would cause.



dbot on 11 July 2008
fastyxx said:
dbot said:
If Sony sales drop significantly in the US after the 360 cut then they will change their tune. I think Sony is happy with the results of the 360 price cuts in Asia and Europe. Each round of price cuts will decrease the system's attach rate because they will be courting a more price conscious consumer. The 360 will sell more consoles at a loss and will not move as much software per console. I don't think this is a game that Sony wants to play.

The problem with this logic is assuming that MS is selling at a loss.  I don't think they are at current prices - and the 20 gig price cut isn't really a price cut. It's a clearance sale to make way for the new SKU - similar to what Sony did last year.

 

It would be interesting to see how much it does cost to manufacture the 360.  I haven't seen any estimates recently.  I suspect that a $50 price cut will drop the price below the cost.  This is especially true if you take into account the burden of the 3 year warranty.  I think it would be hard to make money sub $300 without the introduction of "slimline" design.

 



Thanks for the input, Jeff.

 

 

Sqrl on 11 July 2008
thx1139 said:
Found this on NeoGaf
Strong evidence of a price drop for the Xbox 360 has many expecting a formal announcement from Microsoft this weekend, just prior to its E3 press conference on Monday. As a result of this, many have been quietly suggesting that Sony may respond in turn with a price drop of its own. As it stands, though, Sony has officially denied the rumors, stating that it has "no plans" to cut the PS3 price.

Nobuyuki Oneda, Sony’s chief financial officer, spoke to investors early this morning at the Nomura Asia Equity forum in Singapore. He reiterated that achieving profitability this year was of the utmost importance, implying that a price cut would interfere with that goal. "Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," stated Oneda. "Our plan is not to reduce the price."

Given the company's focus of achieving profitability, it's highly unlikely that the PS3 will see another price drop during this summer. It's hard to say when Sony will again cut the PS3 price, though some believe another price drop will surely arrive before the end of the year. As it stands now, though, this is one official denial that doesn't seem like a PR response.

 

The hardcore fanboys from all consoles should take note of this statement. 

The people who make price cut decisions for all three companies are not fanboys, and as such they don't gauge their success by who has the most sales alone.

 
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