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Forums - Sony Discussion - No pricecut for PS3?

Squilliam on 30 June 2009
Kantor said:
Microsoft wouldn't cut the 360 price to $150. That reeks of desparation, and would be a last resort. They have to think about profit, as well- Arcade is already the most popular SKU, and cutting price is cutting income, which is cutting profits. Microsoft probably profits more on a $300 Pro than a $200 Arcade. They would prefer that people bought the Pro. So they would have to cut the Pro to $250 as well, which would lose even MORE profit. So their choices are:

1) $150 Arcade, $250 Pro, $300 Elite. Like I've said, this isn't very logical.

2) $179 Arcade, $250 Pro, $300 Elite. Like the last one, but more likely.

3) $200 Arcade, $300 Elite (essentially changing the Pro to the Elite and cutting the Elite)

I believe the current Ars Technica rumour suggests 3)


I only think Sony will cut the PS3's price this year because of their forecast. They wouldn't increase YoY sales by 30% for no reason when they can see that they are clearly down YoY at the moment. Sony are not idiots- they got their last prediction spot on (10 million in FY 08). $300 is probably most likely, with some feature or other taken out (I would say Bluetooth and WLAN are two likely candidates- separate adaptors could be made available), with an 80GB HDD, and the current 160GB would be cut to $400 (still bundled with a game, with all features intact)

And they'll probably make PS2 emulation possible via a FW update, so people will stop complaining about that.

Well well Mr Kantor! You're 66 posts into your career at vgchartz and this smut is all you can come up with? Hahahahahahahahahahahahahaahahahahahahahah I shall defeat you with mere words formed into phrases. Phrases are your biggest weakness!

Tell me, why would cutting the Xbox 360 Arcade price in half 4 years after release be desperation? The PS3s price has been on a similar trajectory as well, only the PS3 would have cut the price in half @ $300 one year sooner, that can be described as desperation in anyones language because they have already booked the losses on their future balance sheet. These losses will hurt them as a company as on a whole you already know how much trouble Sony are facing right now. Please, I don't like the words desperation used when describing console strategy, surely some kind of non desperation description would be preferable?

Microsoft profits on games, accessories, Live and downloads. They lose a little money on the Arcade but they make money on the Premium and Elite SKUs especially. A purely profit maximising strategy for them is essentially to get as many consoles sold at a price which maximises long term return. The reason why they are able to make so much money from Live in America is because they have a 2:1 console advantage so people wanting to go online with their friends have to use their service. Theres no way they would want have this profit jeapordised and they would sacrafice a lot to keep the PS3 from gaining a foothold in this market.

I also heard rumours! Rumours I heard about were about new HDDs for the Elite and Premium SKUs. So, yes it does make sense that they would cut the price of both the Elite and Premium as they have to get rid of that old stock. The price cut rumours from Ars are precisely that. I would say the best SKU strategy would lower the Arcade price down whilst changing the contents of the SKUs to rebalance the purchasing stratification on a higher level SKU and increase the importance of the Premium and Elite SKUs. That way if people are willing/able to purchase a more expensive SKU they do so, essentially cut the price but keep the average sale price relatively close to the current $270 it rests at.

My current feelings about their strategy would be this:

$150 Arcade to target the lower end consumer, PS2 sales etc and hit Sony where their highest home console profit margins lie. Also it keeps up the psychological bonus of having an SKU half the price of the PS3.

$225-250 Premium. They will give it a larger (120-180GB) HDD and better game bundle. They will also keep the 60GB starter pack to entice people to go straight to this SKU rather than getting an Arcade + Starter pack which has lower margins. Theres also no rule which states explicitly that the price difference between the Premium and the Arcade has to be $100, remember the Arcade is for people who just want an offline only console or can't afford to pay for the Premium's price premium.

$300/$350 Elite. They will make the HDD something quite massive like 320 or 500GB, im thinking the latter and (maybe?) they will make that HDD size unavailable as an upgrade so people have to go straight for the Elite if they want the HDD space. This will have more of a core gamer bundle and may even include wireless in the packaging as well to give it parity with the equally priced SKU and fits the multimedia purpose of the SKU.

As for the PS3: They can't exactly cut out the Blu Tooth because thats what the console uses to connect with the controllers. They can offer a wireless free SKU, which may help save them money as the people who need the functionality may be willing to pay the extra $50 for the larger HDD SKU. I suppose also if the PS3 can connect with third party wireless products it would work, though its hard to say how much money they would save doing this.

 

 

 



Tease.

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Kantor on 30 June 2009
Squilliam said:
Kantor said:
Microsoft wouldn't cut the 360 price to $150. That reeks of desparation, and would be a last resort. They have to think about profit, as well- Arcade is already the most popular SKU, and cutting price is cutting income, which is cutting profits. Microsoft probably profits more on a $300 Pro than a $200 Arcade. They would prefer that people bought the Pro. So they would have to cut the Pro to $250 as well, which would lose even MORE profit. So their choices are:

1) $150 Arcade, $250 Pro, $300 Elite. Like I've said, this isn't very logical.

2) $179 Arcade, $250 Pro, $300 Elite. Like the last one, but more likely.

3) $200 Arcade, $300 Elite (essentially changing the Pro to the Elite and cutting the Elite)

I believe the current Ars Technica rumour suggests 3)


I only think Sony will cut the PS3's price this year because of their forecast. They wouldn't increase YoY sales by 30% for no reason when they can see that they are clearly down YoY at the moment. Sony are not idiots- they got their last prediction spot on (10 million in FY 08). $300 is probably most likely, with some feature or other taken out (I would say Bluetooth and WLAN are two likely candidates- separate adaptors could be made available), with an 80GB HDD, and the current 160GB would be cut to $400 (still bundled with a game, with all features intact)

And they'll probably make PS2 emulation possible via a FW update, so people will stop complaining about that.

Well well Mr Kantor! You're 66 posts into your career at vgchartz and this smut is all you can come up with? Hahahahahahahahahahahahahaahahahahahahahah I shall defeat you with mere words formed into phrases. Phrases are your biggest weakness!

Tell me, why would cutting the Xbox 360 Arcade price in half 4 years after release be desperation? The PS3s price has been on a similar trajectory as well, only the PS3 would have cut the price in half @ $300 one year sooner, that can be described as desperation in anyones language because they have already booked the losses on their future balance sheet. These losses will hurt them as a company as on a whole you already know how much trouble Sony are facing right now. Please, I don't like the words desperation used when describing console strategy, surely some kind of non desperation description would be preferable?

Microsoft profits on games, accessories, Live and downloads. They lose a little money on the Arcade but they make money on the Premium and Elite SKUs especially. A purely profit maximising strategy for them is essentially to get as many consoles sold at a price which maximises long term return. The reason why they are able to make so much money from Live in America is because they have a 2:1 console advantage so people wanting to go online with their friends have to use their service. Theres no way they would want have this profit jeapordised and they would sacrafice a lot to keep the PS3 from gaining a foothold in this market.

I also heard rumours! Rumours I heard about were about new HDDs for the Elite and Premium SKUs. So, yes it does make sense that they would cut the price of both the Elite and Premium as they have to get rid of that old stock. The price cut rumours from Ars are precisely that. I would say the best SKU strategy would lower the Arcade price down whilst changing the contents of the SKUs to rebalance the purchasing stratification on a higher level SKU and increase the importance of the Premium and Elite SKUs. That way if people are willing/able to purchase a more expensive SKU they do so, essentially cut the price but keep the average sale price relatively close to the current $270 it rests at.

My current feelings about their strategy would be this:

$150 Arcade to target the lower end consumer, PS2 sales etc and hit Sony where their highest home console profit margins lie. Also it keeps up the psychological bonus of having an SKU half the price of the PS3.

$225-250 Premium. They will give it a larger (120-180GB) HDD and better game bundle. They will also keep the 60GB starter pack to entice people to go straight to this SKU rather than getting an Arcade + Starter pack which has lower margins. Theres also no rule which states explicitly that the price difference between the Premium and the Arcade has to be $100, remember the Arcade is for people who just want an offline only console or can't afford to pay for the Premium's price premium.

$300/$350 Elite. They will make the HDD something quite massive like 320 or 500GB, im thinking the latter and (maybe?) they will make that HDD size unavailable as an upgrade so people have to go straight for the Elite if they want the HDD space. This will have more of a core gamer bundle and may even include wireless in the packaging as well to give it parity with the equally priced SKU and fits the multimedia purpose of the SKU.

As for the PS3: They can't exactly cut out the Blu Tooth because thats what the console uses to connect with the controllers. They can offer a wireless free SKU, which may help save them money as the people who need the functionality may be willing to pay the extra $50 for the larger HDD SKU. I suppose also if the PS3 can connect with third party wireless products it would work, though its hard to say how much money they would save doing this.

 

 

 

I just got owned by a New Zealander

I'm going to go cry now.



(Former) Lead Moderator and (Eternal) VGC Detective

Squilliam on 30 June 2009

Im sorry, truely you owned me more by not responding.



Tease.

Kantor on 30 June 2009
Squilliam said:
Kantor said:
Microsoft wouldn't cut the 360 price to $150. That reeks of desparation, and would be a last resort. They have to think about profit, as well- Arcade is already the most popular SKU, and cutting price is cutting income, which is cutting profits. Microsoft probably profits more on a $300 Pro than a $200 Arcade. They would prefer that people bought the Pro. So they would have to cut the Pro to $250 as well, which would lose even MORE profit. So their choices are:

1) $150 Arcade, $250 Pro, $300 Elite. Like I've said, this isn't very logical.

2) $179 Arcade, $250 Pro, $300 Elite. Like the last one, but more likely.

3) $200 Arcade, $300 Elite (essentially changing the Pro to the Elite and cutting the Elite)

I believe the current Ars Technica rumour suggests 3)


I only think Sony will cut the PS3's price this year because of their forecast. They wouldn't increase YoY sales by 30% for no reason when they can see that they are clearly down YoY at the moment. Sony are not idiots- they got their last prediction spot on (10 million in FY 08). $300 is probably most likely, with some feature or other taken out (I would say Bluetooth and WLAN are two likely candidates- separate adaptors could be made available), with an 80GB HDD, and the current 160GB would be cut to $400 (still bundled with a game, with all features intact)

And they'll probably make PS2 emulation possible via a FW update, so people will stop complaining about that.

Well well Mr Kantor! You're 66 posts into your career at vgchartz and this smut is all you can come up with? Hahahahahahahahahahahahahaahahahahahahahah I shall defeat you with mere words formed into phrases. Phrases are your biggest weakness!

Tell me, why would cutting the Xbox 360 Arcade price in half 4 years after release be desperation? The PS3s price has been on a similar trajectory as well, only the PS3 would have cut the price in half @ $300 one year sooner, that can be described as desperation in anyones language because they have already booked the losses on their future balance sheet. These losses will hurt them as a company as on a whole you already know how much trouble Sony are facing right now. Please, I don't like the words desperation used when describing console strategy, surely some kind of non desperation description would be preferable?

Microsoft profits on games, accessories, Live and downloads. They lose a little money on the Arcade but they make money on the Premium and Elite SKUs especially. A purely profit maximising strategy for them is essentially to get as many consoles sold at a price which maximises long term return. The reason why they are able to make so much money from Live in America is because they have a 2:1 console advantage so people wanting to go online with their friends have to use their service. Theres no way they would want have this profit jeapordised and they would sacrafice a lot to keep the PS3 from gaining a foothold in this market.

I also heard rumours! Rumours I heard about were about new HDDs for the Elite and Premium SKUs. So, yes it does make sense that they would cut the price of both the Elite and Premium as they have to get rid of that old stock. The price cut rumours from Ars are precisely that. I would say the best SKU strategy would lower the Arcade price down whilst changing the contents of the SKUs to rebalance the purchasing stratification on a higher level SKU and increase the importance of the Premium and Elite SKUs. That way if people are willing/able to purchase a more expensive SKU they do so, essentially cut the price but keep the average sale price relatively close to the current $270 it rests at.

My current feelings about their strategy would be this:

$150 Arcade to target the lower end consumer, PS2 sales etc and hit Sony where their highest home console profit margins lie. Also it keeps up the psychological bonus of having an SKU half the price of the PS3.

$225-250 Premium. They will give it a larger (120-180GB) HDD and better game bundle. They will also keep the 60GB starter pack to entice people to go straight to this SKU rather than getting an Arcade + Starter pack which has lower margins. Theres also no rule which states explicitly that the price difference between the Premium and the Arcade has to be $100, remember the Arcade is for people who just want an offline only console or can't afford to pay for the Premium's price premium.

$300/$350 Elite. They will make the HDD something quite massive like 320 or 500GB, im thinking the latter and (maybe?) they will make that HDD size unavailable as an upgrade so people have to go straight for the Elite if they want the HDD space. This will have more of a core gamer bundle and may even include wireless in the packaging as well to give it parity with the equally priced SKU and fits the multimedia purpose of the SKU.

As for the PS3: They can't exactly cut out the Blu Tooth because thats what the console uses to connect with the controllers. They can offer a wireless free SKU, which may help save them money as the people who need the functionality may be willing to pay the extra $50 for the larger HDD SKU. I suppose also if the PS3 can connect with third party wireless products it would work, though its hard to say how much money they would save doing this.

 

 

 

I'm done crying now. So,

1) I have more than 66 posts, thank you very much. Does your keyboard not have 0's on it?

2) Because they just gave it a price cut last year. Two price cuts in two years = BAD! Also, the Arcade hasn't been around for four and a half years, it used to be that crappy Core thing which was somehow different. It had a different name, though! Likewise, the 40GB's price was not cut at all- it was $400 at launch and $400 when they discontinued it for the showoff 80GB. The 20GB was $500, but they canned that when they realised everyone hated it. But I suppose desperation is a bad word. Perhaps "moving too quickly" would be a better way to decscribe it. They plan on supporting the console for a good five more years, they need to space out their price cuts, or they'll have a 360 that costs less than its games!

3) They lose money on the Arcade, and make money on the Pro and Elite- that's exactly what I was saying. So they want to discourage people from buying the Arcade- they'd much rather they bought the Pro or Elite (though Arcade is better than no 360 at all). Cutting the Arcade's price would not help their cause. If they cut the Pro's price along with it, they'd be losing money on everything, and then they don't want any 360s to be sold so they might as well go work for Sony (I am aware that that logic was flawed, since Sony isn't working for Microsoft yet)

4) There are rumours of everything. There are rumours that Sony is launching a PS3 facebook. There are rumours that there will be no PS4. There are rumours that Michael Jackson is still alive (I'm sure there are, anyway). But my rumour came from a site called Ars Technica and that is an awesome name, so my rumour is better.

5) I would predict a $179 Arcade (it was the PS2's price after $199), a $250 Pro (if and only if they can cut costs in some way) and a $300 Elite, if there is a price cut at all, which I still doubt (see 2))

6) Damn, I forgot about the controllers. Damned pesky controllers. Er...they could take out the chrome trim, I'm sure that would save them $200 or so. It's a last resort, though- they should take out Blu-ray before they take that out. They could also move to China, where living costs are lower, so they can reduce everybody's salary.



(Former) Lead Moderator and (Eternal) VGC Detective

Kantor on 30 June 2009
Squilliam said:
Im sorry, truely you owned me more by not responding.

Since I'm so nice, I responded, so consider yourself not owned.

Remember this if you ever see me being eaten by a killer sheep, okay?



(Former) Lead Moderator and (Eternal) VGC Detective

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deskpro2k3 on 30 June 2009

*sigh* You guys gotta stop yelling for a price cut.. In the midst of a recession its the most expensive console on the market. 24 million sold... We live in a global world people, it's doing fine.



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Squilliam on 30 June 2009
Kantor said:
Squilliam said:

Well well Mr Kantor! You're 66 posts into your career at vgchartz and this smut is all you can come up with? Hahahahahahahahahahahahahaahahahahahahahah I shall defeat you with mere words formed into phrases. Phrases are your biggest weakness!

Tell me, why would cutting the Xbox 360 Arcade price in half 4 years after release be desperation? The PS3s price has been on a similar trajectory as well, only the PS3 would have cut the price in half @ $300 one year sooner, that can be described as desperation in anyones language because they have already booked the losses on their future balance sheet. These losses will hurt them as a company as on a whole you already know how much trouble Sony are facing right now. Please, I don't like the words desperation used when describing console strategy, surely some kind of non desperation description would be preferable?

Microsoft profits on games, accessories, Live and downloads. They lose a little money on the Arcade but they make money on the Premium and Elite SKUs especially. A purely profit maximising strategy for them is essentially to get as many consoles sold at a price which maximises long term return. The reason why they are able to make so much money from Live in America is because they have a 2:1 console advantage so people wanting to go online with their friends have to use their service. Theres no way they would want have this profit jeapordised and they would sacrafice a lot to keep the PS3 from gaining a foothold in this market.

I also heard rumours! Rumours I heard about were about new HDDs for the Elite and Premium SKUs. So, yes it does make sense that they would cut the price of both the Elite and Premium as they have to get rid of that old stock. The price cut rumours from Ars are precisely that. I would say the best SKU strategy would lower the Arcade price down whilst changing the contents of the SKUs to rebalance the purchasing stratification on a higher level SKU and increase the importance of the Premium and Elite SKUs. That way if people are willing/able to purchase a more expensive SKU they do so, essentially cut the price but keep the average sale price relatively close to the current $270 it rests at.

My current feelings about their strategy would be this:

$150 Arcade to target the lower end consumer, PS2 sales etc and hit Sony where their highest home console profit margins lie. Also it keeps up the psychological bonus of having an SKU half the price of the PS3.

$225-250 Premium. They will give it a larger (120-180GB) HDD and better game bundle. They will also keep the 60GB starter pack to entice people to go straight to this SKU rather than getting an Arcade + Starter pack which has lower margins. Theres also no rule which states explicitly that the price difference between the Premium and the Arcade has to be $100, remember the Arcade is for people who just want an offline only console or can't afford to pay for the Premium's price premium.

$300/$350 Elite. They will make the HDD something quite massive like 320 or 500GB, im thinking the latter and (maybe?) they will make that HDD size unavailable as an upgrade so people have to go straight for the Elite if they want the HDD space. This will have more of a core gamer bundle and may even include wireless in the packaging as well to give it parity with the equally priced SKU and fits the multimedia purpose of the SKU.

As for the PS3: They can't exactly cut out the Blu Tooth because thats what the console uses to connect with the controllers. They can offer a wireless free SKU, which may help save them money as the people who need the functionality may be willing to pay the extra $50 for the larger HDD SKU. I suppose also if the PS3 can connect with third party wireless products it would work, though its hard to say how much money they would save doing this.

 

 

 

I'm done crying now. So,

1) I have more than 66 posts, thank you very much. Does your keyboard not have 0's on it?

2) Because they just gave it a price cut last year. Two price cuts in two years = BAD! Also, the Arcade hasn't been around for four and a half years, it used to be that crappy Core thing which was somehow different. It had a different name, though! Likewise, the 40GB's price was not cut at all- it was $400 at launch and $400 when they discontinued it for the showoff 80GB. The 20GB was $500, but they canned that when they realised everyone hated it. But I suppose desperation is a bad word. Perhaps "moving too quickly" would be a better way to decscribe it. They plan on supporting the console for a good five more years, they need to space out their price cuts, or they'll have a 360 that costs less than its games!

3) They lose money on the Arcade, and make money on the Pro and Elite- that's exactly what I was saying. So they want to discourage people from buying the Arcade- they'd much rather they bought the Pro or Elite (though Arcade is better than no 360 at all). Cutting the Arcade's price would not help their cause. If they cut the Pro's price along with it, they'd be losing money on everything, and then they don't want any 360s to be sold so they might as well go work for Sony (I am aware that that logic was flawed, since Sony isn't working for Microsoft yet)

4) There are rumours of everything. There are rumours that Sony is launching a PS3 facebook. There are rumours that there will be no PS4. There are rumours that Michael Jackson is still alive (I'm sure there are, anyway). But my rumour came from a site called Ars Technica and that is an awesome name, so my rumour is better.

5) I would predict a $179 Arcade (it was the PS2's price after $199), a $250 Pro (if and only if they can cut costs in some way) and a $300 Elite, if there is a price cut at all, which I still doubt (see 2))

6) Damn, I forgot about the controllers. Damned pesky controllers. Er...they could take out the chrome trim, I'm sure that would save them $200 or so. It's a last resort, though- they should take out Blu-ray before they take that out. They could also move to China, where living costs are lower, so they can reduce everybody's salary.

I once opened up a readers digest to a story that started with "First she cried, and then she got busy" so does that mean you're a girl?

1. You don't deserve those posts, they were all anti Sony, anti PS3 spam messages. You should have been banned long ago for your trolling antics.

2/3. But two severe price cuts spaced two years apart = good? The reason why the 20GB didn't sell better was because it was always in short supply. If people were desperate for a lower priced PS3 and simply could not easily afford the $600 price tag of the 60GB they would have gone for the 20GB, no? However sales statistics really back me up here because that 20GB SKU hardly sold, which is a good thing since mandatory installs would chew through that in now time. I think you're moving too quickly, im not that kinda boy. 

With the recession going on people are even more price sensitive than they were a year ago. It makes more sense because of the recession (which also cuts the component costs of the machine too) for them to cut the price again to stimulate demand. They don't want to discourage everyone from buying the Arcade, they just want the people who would have otherwise bought the Arcade who could have easily bought the Premium. I.E. they want people who would have paid a maximum of say $200 to buy an Arcade and everyone else to buy a Premium. Cutting the price of the Xbox 360 makes sense because the profit from services such as Live are truely massive.

4. There are also rumours about you, but MM476 told me to remain silent.

5. Just because the PS2 hit that price doesn't mean the 360 will. Also see 2.

6. You also forgot about Dre.



Tease.

welshbloke on 30 June 2009

Kantor, looking at your option 1 above listed as unlikely. The other rumour doing the rounds is that Microsoft will make a move on lowering HDD upgrades. This would in my mind be a very smart move. They effectively shown with the memory upgrades and offers in the past that they think like this I just hope they actually make a real dent in its price, I for one own an Arcade that would look spiffing with a nice HDD in it and my Pro could get a spanky new fat HDD that would be muchos lovely.



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(Welsh(Folk) Living Beyond Borders)

Winner of the 2010 VGC Holiday sales prediction thread with an Average 1.6% accuracy rating. I am indeed awesome.

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emitcowboys on 30 June 2009

I think it's funny you guys are talking about price cuts.... I would not be surprised if it's as simple as sony dropping ONLY $50 and Microsoft doing $249 for premium and $300 for elite. Case Closed now lets Keep aruing about the sam stuff OVER AND OVER AND OVER. LOL



Thank you Kowenicki

PS3 will need to outsell 360 by:         
             
444,931 per month to catch it by Jan 2011. 102,676 per week.
266,958 per month to catch it by Jan 2012. 61,606 per week.
190,685 per month to catch it by Jan 2013. 44,004 per week.
148,310 per month to catch it by Jan 2014. 34,225 per week.
           
Current rate is:  -18,262 per month    
Avge over last 6 mths          
Negative number means 360 is outselling PS3 by that amount per mth on avge
Tallgeese101 on 30 June 2009

People say $250 Go and $300 PS3 is not a fair comparison which is true.

It does however show how Sony is thinking. No console needs a pricecut more than the PSP and yet they are putting up the price on the new model. What does this mean for the PS3 slim?