PS3 price drop coming sooner than later?
What goes up, must come down. At least that's what financial powerhouse, Goldman Sachs, is saying in their latest research note on the PS3.Citing competitve pressures and an accelerated plan to reduce the PS3's manufacturing costs, Goldman Sachs analysts commented that "Sony's original PS began with 700 components and concluded with 200, while the PS2 started with 2,000 parts and finished with 600. The PS3 prototype had 4,000 components but now a shift to around 2,000 is in the pipeline."
That's definitely some major progress. Hopefully we'll see this savings passed onto the comsumers... but our bet is that this savings will go straight into Sony's corporate vaults.
[Via Gamespot]
Reader Comments (Page 1 of 1)
humpty @ Mar 20th 2007 9:40PM
Out of all three consoles, the PS3 has the largest margin for cost reductions.. by far. There's the PS2 CPU removal, BD drive cost reductions, Cell moving to 65nm, perhaps all in one card reader, and the numerous other chips that can be combined, etc, etc.
For me, waiting a year to save 50-100 dollars isnt worth it.
bootsielon @ Mar 20th 2007 10:13PM
A price drop must come FAST to attract people AND developers to the platform, and retain exclusives. The price drop is most definitely coming this year by christmas at the latest, otherwise Sony is doomed. Yeah, Dave Karraker said, Jack tretton said... "no cost reductions in two years". That's bullshit, and you all know it, since PS2 was out against a dead console, and therefore had the chance to not drop the price until way after the first Xbox and Cube came out. So yeah, it's very likely that you'll see a high end PS3 for 500 bucks (perhaps with an HDD that is slightly bigger).
Xbox 360 will keep costing the same, but they'll replace the high end with more HDD space and HDMI, and the low end with the current High end. So now the price difference won't be $200 as most see it, it'll be $100, except you'll be getting Blu-ray and WiFi out of the box with the high end model. With more Blu-ray movies out, a more popular format, and more games, the extra $100, and the cost in general will be a lot more justified, especially considering that PS3 will likely also have rumble, and PlayStation Home by then, and a lot more features through updates we might not know about (and perhaps even freebies out of the box to sweeten up the deal; after all, Sony and consumers need it to justify the purchase).
bootsielon @ Mar 20th 2007 10:13PM
Oh, and Wii will probably cost $200 by then.
mccomber @ Mar 20th 2007 11:16PM
Wouldn't this come down to how confident Sony truly is in the ps3?
Scenario A, they pass the savings down to the consumer (and probably lose a bit more with each sale as well), dropping the price of each system by $100. This puts the 20gb ps3 right in line with the premium xbox, which is a good deal considering what the ps3 holds over it hardware wise at the same price. Then the $60gb at $500, half a grand being that much further from a full $1000 in the consumer's eye. Sounds good, and is honestly what this armchair analyst thinks they should do as soon as possible since price is the first thing people seem to complain about.
This does however show that Sony doesn't think the system can stand where it does now for any number of real or imagined reasons, and that they aren't confident in the future of their product. And all that implies.
Scenario B: They keep the price where it is until well into 2008. We all hope for their sake that games come along that blow away the 360's AAA titles, making it easier to justify the price difference that most consumers seem to see, the $200 one. As HDTV adoption continues to grow it will be easier as well, but right now Sony needs to be able to say "see, this is why it costs more". Make consumers want it and price will not be an obstacle to overcome. This is what I hope they do.
Judging by who's running the ship now, I don't think they are on the same Krazy Ken powertrip at Sony right now. They are still a bit arrogant, but Phil has shown a humble face for the company, for lack of a better term. I think what he said about the next GTA was huge, and showed the new mindset they seem to be trying to get the gaming division into. At the same time, there is a general confidence in the brand being shown, and that's every bit as important in the long run if they have what it takes to back it up. Not dropping the price shows that confidence, and then they just have to back it up with the goods. That of course is the hard part, but I think is completely doable. HOME and LittleBigPlanet wowed a lot of people, and got some buzz outside of our blogosphere. That's key right now, get the positive word about the PS3 out from Sony, not the negative spin it's getting now.
All Sony has to do is justify the price, and I would rather they do it with features and games. If in the end that means a lower price is what it takes to make other consumers see it that way, then so be it, and hopefully sooner rather than later.
John @ Mar 21st 2007 12:32AM
This is a weird thing that I would not have expected. If Sony can pull it off fine. After all, that black Xbox is coming out, for a titillating $479... as was mentioned earlier, if you want FPS games, you're better off getting an XBox360...
It's weird how the lines are running together.
Notice that even something like Dante's (whatever, sorry Nick, can't remember the name, never played it, (weeps)) is coming to the Xbox360.
I recall that bizarre blog where some guy said that Sony and Microsoft were going to merge...
But wouldn't this be sweet?
One Console... to rule them all.
Okay, two. Nintendo would still do their thing. But it would be much easier to buy just a Sony/Microsoft and a Nintendo, then what we've been doing.
And suddenly, it wouldn't be about platforms, anymore, it would be about art.
The art of videogames. Sony/Microsoft (or Microsoft/Sony, to put it alphabetically) would have the HD functions, and Nintendo would have the characters we've grown to love.
Eventually, we could visualize a world that was...
Nintendo/Sony/Microsoft that had the best of every world.
I fantasize.
But is that too much too ask?
All we have to do is create a world where money means nothing. Then every developer would get together to create the greatest art, on whatever system, that is the system called...
PC/Linux/Mac/Nintendo/Microsoft/Sony that would play any and every game ever made! Then developers would only have to develop for one system!
And I take it farther!
Suddenly, all handhelds are capable of this! The only difference between the handhelds and the big boys is the size of the screen!
Does this sound Communist?
It sounds like a freaking Barry Manilow song.
"...Well, you came, and you gave, without takin..."
Extinction @ Mar 21st 2007 4:07AM
Sale price $499? That would suck, being on sale and costing exactly the same
Ali @ Mar 21st 2007 6:28AM
Still doesn't hide the fact us Europeans are still getting a very bump deal, and will be paying more then other regions.
AG @ Mar 21st 2007 11:27AM
What many of you fail to realize is that the PS3 is going to be going strong for 8-10 years. They don't need to rush a price drop as of yet. Many people think it is doom for Sony if they don't drop the price yet with the European launch almost here, they will probably have 5 million consoles SOLD worldwide.
That is not too shabby for a 500-600 dollar console.
Just imagine what is going to happen with a price drop?
AG @ Mar 21st 2007 11:30AM
What many of you fail to realize is that the PS3 is going to be going strong for 8-10 years. They don't need to rush a price drop as of yet. Many people think it is doom for Sony if they don't drop the price yet with the European launch almost here, they will probably have 5 million consoles SOLD worldwide.
That is not too shabby for a 500-600 dollar console.
Just imagine what is going to happen with a price drop?
AG @ Mar 21st 2007 11:31AM
Damn,
Sorry about the double post.
bootsielon @ Mar 21st 2007 3:18PM
John,
In theory that's nice, but like Russia and Cuba, it would be a disaster. No competition would enable developers to control prices and to release games that are crap.
Besides, you are almost getting everything of every world with current consoles; you're just getting everything with PS3 in a single package, while you have to buy it all separately with the rest of the consoles (which ends up being more expensive, and ends up with developers not being able to take advantage of the optional features).
kid @ Mar 21st 2007 6:20PM
I already read on this site that some stores already dropped the 20gb PS3, and wont sell it any more. Thats good because I wouldnt buy that version if I were buying a PS3 anyway. Im a 360 owner, and I think the PS3 is pretty cool, but I dont see anything that would make me spend $500, not to mention $600 on it. If they dropped the 20gb model, and made the good one $450, heck I might even go to $500, then I might buy one. But the only game that Im really looking at now is Uncharted Drakes Fortune. I really dont care about Final Fantasy XXXVIII (theyll have XLVII by next week), and I think Metal Gear is overrated. Alot of people think that too, not just me. They need to come out with more games that I cant play on my 360, plus, the one thing I cant get on any other system is Achievements. I think a price drop would be the best possible thing that Sony could do now, for them and gamers.
And to Adam, you made a big time mistake. If Sony and Microsoft merged, then the console would eventually suck. One of the 3 main rules of business is that you Need Competition, because it forces you to make a better product. Look at Madden football for example.
mcloki @ Mar 22nd 2007 12:15AM
Price Drop can't come soon enough. But I think it will happen in October the same day they launch HOME. That way they can produce machines that have cheaper components over the summer. Start selling in October and get a bigger bounce come November and December. More AAA title games and Blue-Ray movies should be out by then. They should really push the Bluray movies by the way. Lucky Europeans are going to be watching Bond on Bluray this weekend and i gotta say it looks great. And start bundling the PS3 with Bravias would ya.