http://www.alleyinsider.com/2009/1/sonys-slow-motion-ps3-price-cuts-sne

Update: Sony's Slow-Motion PS3 Price Cuts (SNE)

Eric Krangel | January 27, 2009 9:47 AM

Is Sony (SNE) cutting the price of its PS3 in slow-motion?

Two weeks ago, Dell (DELL) offered the PS3 on its website for $340, including shipping, a substantial discount from the console's standard $400 price tag. Then the sale ended. Now it's back: Same terms as before, PS3 for $340.

Other PS3 price cut mini-moves: A PS3-Bravia bundle at Best Buy (BBY), and we hear reports Wal-Mart (WMT) is offering a $50 gift card with a PS3 purchase. (Can anyone confirm? We don't have Wal-Marts in New York City.)

We're still not sure whether the cuts are coming from Sony's side or the retailers. Sony traditionally exercises a lot of control over what it allows retailers to charge, and when we asked Sony reps about the Dell deal we never heard back.

It's good Sony (appears) to have come around to the idea the premium-priced PS3 needs a price cut in a recession, but this is the wrong way to do it.

With these "$50 or $60 off if you act right now!" incentives, Sony might be able to whip up a few additional sales from people who really wanted a PS3 for the holidays and didn't get one. But big-picture, Sony seriously lags behind the Xbox 360 in sales, and is getting crushed by the Wii.

To use a football metaphor, Sony seems to be making an all-out ground push for another five or six yards, to get a first down and breathing room in the way of remotely respectable January sales figures. But it's already third quarter and the PS3 is several touchdowns in the hole: Sony needs to throw long with dramatic and permanent price cuts.

UPDATE: An eagle-eyed commenter notes: The PS3 is $50 off at Amazon (AMZN) too. The evidence these small price cuts are a Sony initiative is piling up.

or the retailers bought too many PS3's for the holiday period and are trying to get rid of their stock. Nobody liked having a shit ton of stock sitting around for a product that isn't selling fast.

and if all the rumors of a price cut going around they would glady sell off that inventory for 340-360 or whatever vs whatever could be cut down to 300.

to remain in the metaphor:

many suspect MS will intercept the touchdown throw, and try to get a running touchdown themselves. Sony is probably first and foremost trying not to forget their defense, before focussing on their offense. Their quarterback is out with an injury and you can't expect the replacement to know all the plays from the start.


(>_> yay for metaphors. We'd better keep these metaphors up because otherwise I won't be able to follow the tread >_>)

I've kind of been wondering about a lot of these so-called 'promotional' prices from a lot of different places like those listed above. Is it Sony doing these promotions or these companies themselves?

Personally, I just think all these different 'deals' you can find just enforces the idea of a price cut in March-April. I don't think Sony is just trying to post respectable hardware numbers for January, I think it's indicative of them being able to sell the console cheaper. That said, I think the console may cost a little less than we think it does to produce - but the only way to really tell will be when we get an actual, Sony mandated and public price cut, and whether or not it happens when the rumors have speculated (Late March - April) or if it happens later in the year - and for how much.

Yeah, I was thinking that too. This can easily be a mini-fire-sale from retailers.

Every price cut in the past was preceded by a lot of rumours, leaks of retailers' leaflets showing the new price, etc. I haven't seen anything of the sort recently.

I think a lot of the Microsoft layoffs are preperation for another price cut. One hand giveth and another taketh away.

loll how low can microsoft go

as long as the mass consumer doesnt know, this wont amke a difference.

And retailers make weekly deals for 360 all the time. Heck at Best Buy they always throw in a third game for free, sometimes a decent one.

There have been other even better promotions before.  I bought my 80 GB PS3 in November 2008 from Amazon, where I got $100 back on my purchse of it with 4 Blu-Ray discs (real discount not store credit to buy more stuff).

I don't understand why this is 'the wrong way to do it' as they say in the article.

It just works: People think they found a bargain, and those people who really wanted one will buy one.
Just like the current Amazon deal, we had the same kind of deals here in the Netherlands at some retailers and webshops. ( 348 Euro with LBP )

Nothing wrong with it really, it's the price at the counter that counts: not some official price-point set by some management or PR-guy.