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

papflesje on 27 January 2009
gebx said:
papflesje said:

@ gebx: that seems like a logical idea, but why would they do it like this? Surely, there are better ways to test it than just here and there? Do a firesale of low GB units, and advertize it, and then check how fast it goes.

short sales-checks like this are hardly a sign imho, especially since you can't really check up on sales that only last a day or so, imho.

 

What other way to do it then do just select a few and see how the consumers respond? Amazon would be a good candidate since it has the advantage of being national, no need to deal with various suppliers to reach consumers coast to coast.

 

The problem I'd have with amazon, is that it is for the "savvy" people.  I don't connect the regular, average Joe on the block with Amazon sales (and I wouldn't try to figure out whether we'd be reaching them through an Amazon sale).

I'd rather do it in a store, with advertisements and check whether your average visitor gets intrigued into buying one, since those are the people you want to entice.  The ones looking for a bargain, the ones savvy about the industry and things like that, are alreay on the lookout and are aware of the possible cuts, so those aren't the ones you want to drag in in the long run.   But hey, I'm just guessing ^^



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NJ5 on 27 January 2009
axumblade said:
NJ5 said:
axumblade said:
Honestly, a $50 dollar price cut wouldn't hurt Sony as much. Also, I think that all Ps3's from here on out should come with a free download voucher for a PSN game (Pain, High Velocity Bowling, or Pixeljunk Monsters). It's a great way to introduce customers to the PSN as well as the trophy system.

A $50 dollar price cut can cost hundreds of million dollars, the same amount they're losing due to lower-than-expected PS2 sales and the exchange issue.

Dodece touched some relevant points. It's possible Sony has a production glut and is selling discounted PS3s to retailers.

 

The price to produce the PS3 has also dropped significantly from what I understand. If the price continues at the pace that it is then I'm sure a price cut wouldn't be nearly as painful on Sony. I understand why they'd sell them at discounted rates. Honestly though, at Best Buy, there's normally a deal where you can get a TV and then they'll throw in a gaming system (whether it is a PS3 or a 360). Last year at Wal-Mart, they gave were giving out pretty hefty gift cards to anybody that bought a blu-ray player (including the PS3). Sony may have to approve of these deals but they have been doing them for a long time.

 

Manufacturing cost also dropped significantly, but so did Sony's revenue on hardware even without making price cuts (again, the pesky currency issue). As I recall it they said in their financial report that they were counting on breaking even around this time, but it's probably not the case anymore.

 



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dbot on 27 January 2009
c0rd said:

Dell is offering the 360 Arcade for $170. The Pro is $254, and the Elite is $339. Should we assume price cuts?

I did buy my 360 off Dell this month, actually. They have some ridiculous deals.

You can get the 360 Pro w/ End War for $258, the arcade w/ Rock Band 2 for $199, the arcade holiday bundle for $179, or the Elite holiday bundle for $339 all at Dell.  This must be strategic marketing on Microsoft's part.  But the same Sony bundles seem to indicate that Sony is going out of business.  You guys should consider some research before you blindly believe things you read on the Internet.

 



Thanks for the input, Jeff.

 

 

NJ5 on 27 January 2009
dbot said:
c0rd said:

Dell is offering the 360 Arcade for $170. The Pro is $254, and the Elite is $339. Should we assume price cuts?

I did buy my 360 off Dell this month, actually. They have some ridiculous deals.

You can get the 360 Pro w/ End War for $258, the arcade w/ Rock Band 2 for $199, the arcade holiday bundle for $179, or the Elite holiday bundle for $339 all at Dell.  This must be strategic marketing on Microsoft's part.  But the same Sony bundles seem to indicate that Sony is going out of business.  You guys should consider some research before you blindly believe things you read on the Internet.

 

Who said Sony is going out of business in this thread?

 



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Groucho on 27 January 2009

Target is also having a deal on PS3s and PS3 software (buy-2-get-1-free for all games, and you get a large discount on a HDTVs of certain sizes (I think 46"+), if you buy a PS3... like $250)

Sony hasn't initiated these cuts, or they would be universal. However, I wouldn't be surprised if the retailers had knowledge that was leading them to clear inventory early.

Likely its just a new value bundle, coupled with excess holiday stock.



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dbot on 27 January 2009
NJ5 said:
dbot said:
c0rd said:

Dell is offering the 360 Arcade for $170. The Pro is $254, and the Elite is $339. Should we assume price cuts?

I did buy my 360 off Dell this month, actually. They have some ridiculous deals.

You can get the 360 Pro w/ End War for $258, the arcade w/ Rock Band 2 for $199, the arcade holiday bundle for $179, or the Elite holiday bundle for $339 all at Dell. This must be strategic marketing on Microsoft's part. But the same Sony bundles seem to indicate that Sony is going out of business. You guys should consider some research before you blindly believe things you read on the Internet.

 

Who said Sony is going out of business in this thread?

 

It was an ironic remark intended to highlight the overall tone in this thread and the article it discusses.  Posters on this thread seem to believe that this is a retail fire sale for Sony, or as the article suggests a failed precursor to a price cut.  The fact that Dell is just as aggressive with the 360 pricing undercuts any claims made by the original author and posters on this thread. 

 

 



Thanks for the input, Jeff.

 

 

NJ5 on 27 January 2009

Perhaps I misused the term fire sale. What I meant is that retailers may have too much stock and are trying to get rid of it. Just a possibility.



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irstupid on 27 January 2009
Reasonable said:
It's most likely retailers looking at current trends in the recession and feeling they are over committed on PS3s. They eat a little margin, but gain vital shelf/warehouse space.

 

exactly.  with the low surprising sales of PS3 in holiday time.  (Everyone one of us were surprised too) its common to see a compnay have too much of something and sell it at a loss to free up that space for more profitable items.