Dodece, that was one of the more informative posts I've read on this site. Well done.

Actually ,the price drop has more than doubled permanently PS3 sales in the US ,so I wonder why some are saying the price drop didnt have any effect .60% more in UE with the Starter Pack and 100%+ in NA with the price drop is good results .

And ,the PS1 dropped its price 6 months after launch and the PS2 12 months after .Dropping the price in Japan 10 months after the launch would be in line .

Some people just want Sony not to have success and thats all .They dream Sony cant drop the price whatever happens and they hypothesize about Sony dropping the prize and not having any effect and "MS and Nintendo following the wounded Sony on the trenches " .But ,thats only talking ,the reality is that Sony has invigorated quite well the PS3 sales with very little (a 100 price drop for a SKU not in production anymore and a Starter Pack with two Sony games that doesnt cost them so much ) and they will continue to do things to improve the sales .And ,sooner or later ,the price will drop in Japan too ....

Dodece said: The general consensus was that Sony was losing two hundred dollars on each machine when the system launched. Halting production would drive costs up and increase losses in efficiency.

 

The launch machines may have cost $800, but Sony reduced its manufacturing costs very, very fast - the hardware has already gone through two major revisions. The BluRay drive cost $140 originally, and is now less than $20, all the other parts have dropped 30%-40%. The PS3 probably costs $550 to make right now. Note that Sony is already making money on its European sales (599EUR = $730 US), so they have room to drop the price.

The price drops are for the EU and Japan - the 80GB model will go down to 499EUR, and the 80GB will replace the 60GB in the US (the former will be marked down from $599 to $499, the latter disappears - so you get more HD space for the same cash). It may not happen at TGS, of course - they may wait until late October or early November. 

 

HappySqurriel said: With the way Sony handled their last price cut they have (potentially) caused some serious problems ... They dropped the price of the 60GB model to $500, released a 'better' 80GB PS3 at $600, announced the 60GB model was discontinued, and built in the expectation that the 80GB model would be $500 after the 60GB model was out of stock. This causes problems because people who are looking for a $500 PS3 are now waiting for the 60GB to run out of stock so they can get the 'better' 80GB PS3 for $500, and those people who want an 80GB PS3 are also waiting for the 60GB PS3 to run out of stock so they can get the 80GB PS3 at a reduced price. Basically, only the uninformed or impatient are buying either PS3 at the moment. Now, when you look at the optics of the situation it appears that the price cut has done nothing to improve the PS3's sales performance which (in turn) produces negative editorials about Sony's mistakes and further speculation of price reductions; third party publishers and analysts make adjustments to their forecasts and see very little long term change in the PS3's fortunes and start questioning its long term health.

LMAO

Fist part is irrelevent, other then the hardcore consumer are idiots.  No way do they know enough about the situation to know if they should wait or not.

Negative BS thats what it produced, it doubled sales thats what matters.

 

 

 

Dodece said: We have to be mindful that Sony was already taking massive losses, and had to increase those losses more out of desperation then anything. They were probably incurring greater losses then they expected anyway. Survival takes first priority winning takes second. You want another good reason for Sony not to drop prices again. Microsoft will match them on any price cut, and that is no good for Sony. That just puts Microsoft in the consumer pleasure spot. The margin would not change in all likelihood. Microsoft would gladly match Sony if the drop were costing Sony even more money. Sony is not going to reduce prices, and if they do I think it is only good news for Nintendo and Microsoft. Once that happens they know they can bust Sony. Both would gladly follow a wounded Sony into the trenches.

It does not matter if Ms match the price cut, it still only an xbox.  At double the Price PS3 is matching 360 sales.  The lower the PS3 price the much bigger the potentil customer base becomes, 360 does not matter all that matters is getting the price down lower so the PS3 becomes a potential purchaese for much much more people.

 Last time they reduced price it doubles their sales, good enouth reason to do it agian.

PS3 is to important to Sony overall to just sit and wait, they need to take the losses now in order to succed in the future.

 

 

 

SlorgNet said:   The launch machines may have cost $800, but Sony reduced its manufacturing costs very, very fast - the hardware has already gone through two major revisions. The BluRay drive cost $140 originally, and is now less than $20, all the other parts have dropped 30%-40%. The PS3 probably costs $550 to make right now. Note that Sony is already making money on its European sales (599EUR = $730 US), so they have room to drop the price. The price drops are for the EU and Japan - the 80GB model will go down to 499EUR, and the 80GB will replace the 60GB in the US (the former will be marked down from $599 to $499, the latter disappears - so you get more HD space for the same cash). It may not happen at TGS, of course - they may wait until late October or early November.

Does that EU price include VAT? If not those are usually pretty steep and would probably cut out at least some of that difference.

Did you even read the entire post Hus. It shows good reason why your logic fails.

dtewi said: Did you even read the entire post Hus. It shows good reason why your logic fails.

Read and so what.

Game software sales 1st and 3rd party.
Bluray sales/royalties
Movie/TV downloads
Music downloads

So feel free to argue that profits for Sony Electronics, Computer Entertaiment, Sony Music, Sony Pictures are not worth bleeding money on the PS3.

The places it will get a price cut, is japan definately in TGS they will get a price cut. As for europe Im thinking november. Then on march is the next america price drop.

PeoplesChamp said: Its the signs of a failure system. It normally takes 18 months for a system to intially drop in price. If Sony is losing between $240 and $310 on each unit it sells now, a price drop is out of the question. Before the system released, analyst projected sony needs to sell 6 games per system to make profit. I think Sony will eventually cut there losses and abandon the ps3. At this rate 2009 could be the death of ps3. Originally I was planning on buying system when it reaches $199, but now I fear it wont make it that far. When or if ps3 becomes successful, competing brands may have a newer systems out. Guess i'll make my decision then.

where do you get any of your info from, nearly all of it is incorrect. $240 loss(it was never higher anywhere i've seen) was only happening on launch 60gb systems and largely inpart to a production problem with blu diodes. that was corrected around march. and 18 months for a price cut??? oh nevermind, troll... @dodece, good write up, i don't generally agree with it, but you make some good pts. @happysquirrel, joe consumer does not know enough about this market to "know" they should wait. most will probably see this as i better hurry up and get one before the cheaper ones are gone. we've already talked about this too many times as it is. the only thing that really pisses me off is the fact that the US, EUR, PAL territories have all been paying the price for f&cking Japan to have the lowest price point, the 60gb model is only(and has been for awhile) ~$406USD, if they don't appreciate that, then to hell with em. do you guys have any idea how many PS3s would've sold in the US if Sony dropped the 60gb model to $406 in march?