SCEE boss predicts 60GBs will be sold out by month's end - After that? No more
by Jem Alexander 
{ Jul 13th 2007 at 10:00AM }
Gameindustry.biz has stated that SCEE president David Reeves has clarified that the 60GB PS3's days are numbered. At an E3 event in which Reeves revealed the PlayStation 3 Starter Pack for the European region, he was questioned over whether SCEE should have given Europe a price cut, as has happened in America. Reeves claims that "they aren't really" getting a price cut "because what the US are offering from the 1st of August is a USD 599 version with one game."Reeves went on to say that "all they're doing is taking their stock in trade that they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July." When asked whether this was truly the end of the 60GB model, Reeves replied with "in America, yes."
We see this as a very strange move on SCEA's part. Why undermine your announcement of a price drop by phasing out the lower end unit? Because the 80GB systems have had their Emotion Engine removed (which means PS2 games will now be software emulated, as in Europe) they are cheaper to build than the current 60GB models. Will we see this saving passed down to the customer with another price cut before the end of the year? This doesn't really bode well for those waiting for it to drop below $500 dollars.
Our solution? Drop the 80GB to $500 in a couple of months, in time for the big Christmas releases. Then bring back the 20GB system, without the Emotion Engine, for $400 dollars. Things would make a lot more sense if that were to happen.
Reader Comments (Page 1 of 1)
RPG @ Jul 13th 2007 10:07AM
Now this is getting a little ridiculous...
Tanya @ Jul 13th 2007 10:12AM
Now that's a silly move.
rodsky @ Jul 13th 2007 10:21AM
wow
sounds retarded
good luck in selling all those units by july too, thats at least 2-3 million units
the trip to 11 million by the end of the fiscal year may take a detour to failure city
WhackMushroom @ Jul 13th 2007 10:21AM
sony you should listen to Jem .. except make that 20GB version 329 ;)
stlouisdl @ Jul 16th 2007 1:09PM
This is actually a smart move by Sony. Remember this is a business and they have to make money. People will buy up the 60 gigs fast after what they saw at E3 and then you get the 80 for $600 with free game. They will lower the 80 gig by christmas but won't tell us that. This is smart marketing to move some units and they save money by not including the Emotions chip which really isnt needed anymore any way as was a cost to Sony that they could avoid. I know people in UK without the chip and they have no problems running any of their games. About 90% of the games are compatible. This is Sony trying to get the Cost to make the device down so they can be profitable which is good for every body.
Stef Geiger @ Jul 13th 2007 10:24AM
Are they REALLY that out of touch? First the idiocy of removing the 20 gig model, now this? I understand it's probably getting impossible to source the hard drives, but that also means that 80 gig and bigger drives are getting cheaper and cheaper.
It's like they don't get that most people aren't willing to shell out $500 for the damn console. At $450, they'd be in great shape.
UltimateNinja9 @ Jul 13th 2007 10:27AM
They should have just kept the 80GB model a secret.
adrian @ Jul 13th 2007 10:32AM
i highly doubt the 80gb sku will be $599 with no other product offered. i anticipate another sku at some point at a much lower pricepoint. that or the 80gb sku will sell for $499.
Josh @ Jul 13th 2007 10:38AM
does the 80 gig model have any other upgrades? I'm not sure its worth the extra $100 anyways if not since the hdds are so easy to swap out in the ps3. The only difference that I know of is that it will not have the emotion engine included in it, which isn't what I would call an upgrade.
itsburnsie @ Jul 13th 2007 10:38AM
This may shock you to hear this from a self-admitted Xbox 360 fanboy, but this sucks for everybody.
I was genuinely impressed with Sony's showing at E3, it seems like they're really starting to get things back on track again, they've got a bunch of really solid titles coming out in the coming year, and when they announced the console prices were going to start coming down, it was making me think about picking up a PS3.
Now they want to phase out the model they just lowered the price on and introduce an un-necessary 80 gig model at the same old price point? Yikes.
I agree with Jem, if they could get a PS3 console at around $400 or so, they'd move a bunch of units. I'd definately be tempted to pick up a 20 gig PS3 (Emotion Engine or no) if it were at that price.
Here's to hoping that may happen soon. Competition is good for all of us.
grass @ Jul 13th 2007 10:58AM
WTF??? glad I already purchased my 60gig with the EE chip than.....this is kind of stupid. Make a price cut on one model, then work to slowly phaze it out? And keep the 80 gig AND bring back the 20 gig???? I have been actually looking for the 20 for a while, so that is cool. But the fact they are removing this model really sounds strange....almost making the price drop retardedly stupid if they really just remove it. I dont know what to think of all this...
Ian @ Jul 13th 2007 10:50AM
The 20/60/80 gig models discussion brings me to a very interesting point...
Has anyone actually swapped out their HDD and slipped in a larger drive, written up their findings and posted a 'how to' on the net?
I know you'll all say that the PS3 manual tells you how to swap the HDD but, I'm wondering how to transfer all my data from the current HDD to the larger one?
grass @ Jul 13th 2007 10:59AM
Yeah, I flipped my hd out to a 120 gig.....and look around on the net, there are websites all over the detail on how to do it. as far as backing up saves and things, use an external hdd to just back them up, you cant put demos on there, so you will need to re-download them.
JD @ Jul 13th 2007 11:02AM
"Are they REALLY that out of touch? First the idiocy of removing the 20 gig model, now this?"
No, I think Sony knows exactly what they are doing. The 60GB price cut was more of way to clear the 60GBs off store shelves and make room for the 80GB.
I was surprised that Sony only offered 80GB, which is still less than the 120GB offered by the Elite. But by the time all the 60GBs are out, the 80GBs will be ready to be replaced by a larger (120GB?) SKU.
In that amount of time, the holidays would be around the corner, and an addition $50 price cut for both SKUs ($450 and $350) would keep the PS3 in the headlines throughout the season.
That's what my fuzzy crystal ball says.
ryano @ Jul 13th 2007 11:02AM
July?! wow, right before the heavy hitter titles even hit they want to eradicate the the -$100 incentive to play those games.
when a price drop happens it should stay that way. but then it was too early for Sony to have a price drop in the first place.
then people are left with the 80 gig sku.
$599 for 20 extra Gigs and possibly a rumble controller that early adopters didn't receive when they plunked down $599 9 months ago?!
this is a big F you to everybody. thanks Sony. looks like i'm waiting a while...again.
Kspraydad @ Jul 13th 2007 11:06AM
Sony has NOT announced what a core 80GB will cost yet.
The Motorstorm Bundle is LIMITED because their WILL be a core.
This core will be $499 or less (and based on the timing of all this will likely include the new SIXAXIS).
Sony CAN'T announce a 80GB core for $499 YET because they want to clear the 60GB and not have two core packs out there.
Its all good.
BTW...you'll see the PSP original drop in price soon too to clear out remaining inventory.
rodsky @ Jul 13th 2007 11:06AM
@JD
ps3s arent Ipods, there is no need to keep coming out with a new sku with a higher HD, pick one and stick with it, they can be switched out anyways
NIck @ Jul 13th 2007 11:15AM
From a business standpoint, SONY may have just hit a gold mine with this announcement. They increased their demand for their system by lowering the price. This new announcement will only increase demant for the 60GIG version since the public now knows it is in limited suply before they will have to start buying the new 80GIG version. SONY is goign to see sales skyrocket this month. The key for SONY is to make sure they still have adequate supply of the 60GIG version to last a few months.
The new version is coming out with a free game, but I'm imagine they will take the game out and lower the price for the holiday rush to get people excited again.
Everyone is saying that SONY is screwing us with this announcement. Just go buy your system now and you won't get screwed!
FM @ Jul 13th 2007 11:17AM
@10
I wish more 360 fanboys were like you,well said.
dalejrfanfreak @ Jul 13th 2007 11:16AM
This news makes Sony seem out of touch with the consumer. Being at $499 is going to be crucial for the PS3's success, especially when you consider that you have Konami and Square Enix saying that $499 is still too expensive. Why in the hell is Sony even phasing out different versions of the PS3? Microsoft will now have FOUR different 360's with the Halo 3 version, The PS3 can easily have three. Bring back the 20gb at a very competitive price to the premium or core 360, leave the 60gb where it is, and instead of an 80gb Ps3 make it like a 160gb Ps3 at $599 since an extra $100 for a game and 20 gigs is pretty much pointless.
If Sony lets the 60gb phase out, they will not only create less options for possible PS3 buyers but they will shoot themselves in the foot if they make people pay $599 again.
Joe @ Jul 13th 2007 11:24AM
I think this is a bad move. I just hope come the Holidays Sony makes the price of the PS3 450. Then the PS3's would be selling fast.
Kicks @ Jul 13th 2007 11:22AM
I wasn't all that impressed with the Sony e3 showing, but have always known that I would at some point pick up a ps3 to go along with my 360. The $100 price drop on the 60GB made it easier to consider for this coming Christmas season to request it as a gift. Now it seems that it won't happen for me then either. I'll just keep waiting. I love my 360, but always agree that competition is a good thing. I truly hope that MGS4 stays a PS3 exclusive as well as Final Fantasy because if those did jump ship it would kill any reason for me to get a PS3. This announcement that they're merely phasing out the 60 gb units is a very bad move and I really hope they have another trick up their sleeves to counter it
SonyFan @ Jul 13th 2007 11:28AM
One of two things is true.
1. Dave Reeves is pissed off at SCEA getting the cut or has no clue what happens on this side of the world. Hence the almost demeaning interview.
2. SCEA shafted us big time.
If the 2 were to be true, does it qualify for a public interest litigation considering the public admission of a price cut by Sony and then the aftermath?
I am waiting to hear how Sony PR handles this. Speaking of which, seriously, dont the executives from different regions even talk to each other?
Stef Geiger @ Jul 13th 2007 11:24AM
"No, I think Sony knows exactly what they are doing. The 60GB price cut was more of way to clear the 60GBs off store shelves and make room for the 80GB."
But... my point still stands - they don't know what they're doing - because they don't seem to understand that people want a LOWER PRICE, not the SAME high price with more (rather useless) features.
"I was surprised that Sony only offered 80GB, which is still less than the 120GB offered by the Elite. But by the time all the 60GBs are out, the 80GBs will be ready to be replaced by a larger (120GB?) SKU."
Really? That'd be pretty foolish on their part. If they keep on churning out new SKUs at new prices, they're going to turn off a lot of potential buyers, because everyone will say "why buy it now? In a month they'll release a better deal, I don't want to get ripped off."
What I think is most absurd is that for MOST people, 20 gigs is probably the perfect amount of space. I bought the 60 gig, and after six months of downloading everything in the PS store, putting a few transcoded movies on, installing huge games like VF and Spiderman 3, I STILL have 12 gigs to spare. And I could delete almost everything on the HDD at any point and I wouldn't miss it. I suppose some people will want to store their music and photos on the HDD, but aside from those things, is 60 gigs REALLY not enough space? People will argue that movies take up a lot of space - true, but after you've watched it, do you need it hanging around on your HDD? Nevermind how impractical it is that they have to be mp4s. If Sony one day gave us xvid and divx capabilities, THEN a big hard drive would be justified.
Yes, there are people who want a ton of space on their PS3, but those people make up such a tiny portion of the market that Sony would be better off selling an HDDless model so that those people could buy it and throw in a 250 gig drive.
Like I've already said, I'm willing to bet that 90% of people use less than 20 gigs of the HDD.
Kicks @ Jul 13th 2007 11:29AM
@19
I wouldn't count the halo 3 xbox 360 as a fourth sku because it will be a limited release much like the green halo xbox for halo 2. I think MS just did that as a way to entice a lot of the halo 2 players that still don't own a 360 and are holding out until the community shifts to halo 3. I'm still at any day expecting a price drop by MS, but the news of the phase out by sony has given them less motivation to do it anytime soon because they know that once sony is done with their slight sales surge they'll still be left with a 120-200 gap between their elite and premium versus the only available ps3. I hope for the sake of the gaming industry that Sony wakes up from this. Again, I'm an xbox 360 fanboy but I don't want MS to become complacent due to Sony's blunders.
JimyD @ Jul 13th 2007 11:30AM
Memo to SCEA - PR damage needed ASAP!! What a dope! Sony finally gets a bit of love from the gamer community with a price drop on the 60GB model and this blow-hard from across the pond screws the pooch by telling everyone the $499 model is going to disappear by the end of the month. This is coming no less from the frickin president of SCEE! If the Sony execs in Japan are doing their job then this guy just bought himself a ticket to managing a special project. "Hey Michael, have you seen Fredo around?"
Jeremy @ Jul 13th 2007 11:49AM
@24
My money is on #1. There is no way sony is this stupid. This guy either mis-spoke or doesn't have a clue.
The current $100 cut is going to be barely enough to keep them competitive after the M$ price cut, so they have to know that the price needs to come down more, not go back up.
rodsky @ Jul 13th 2007 11:55AM
KAZ HIRAI: "Well, again, just from a hardware perspective, the 499 dollar price adjustment that we did for the 60 GB version, for the american market, uh, we're no longer in production for that product, so uh once that product is gone from the retailer shelves, then we're back to the $599 SKU only, so it's not like we have a two price strategy here in the US market. We found out very early on, you know, consumers react mostly to just having one SKU as opposed to two."
http://atvs.vg.no/player/?id=10235
GRT @ Jul 13th 2007 11:55AM
Yeah, setting aside the actual news here... what kind of ship is Sony running if they have execs back-biting each other like this?
RadiuZ @ Jul 13th 2007 12:44PM
This is actually a smart move by Sony. Remember this is a business and they have to make money. People will buy up the 60 gigs fast after what they saw at E3 and then you get the 80 for $600 with free game. They will lower the 80 gig by christmas but won't tell us that. This is smart marketing to move some units and they save money by not including the Emotions chip which really isnt needed anymore any way as was a cost to Sony that they could avoid. I know people in UK without the chip and they have no problems running any of their games. About 90% of the games are compatible. This is Sony trying to get the Cost to make the device down so they can be profitable which is good for every body.
mccomber @ Jul 13th 2007 12:10PM
Awful move, people have already looked at $499 as the new price of a ps3... this is just going to feel like a price hike, because there simply isn't enough value in the 80gb bundle at $600. If they made a package like they are giving to Europe for the same price, maybe... but still, a core unit at $499 would be the smart decision. They had such a strong E3, and then they pull this. Stupid, stupid idea.
Hopefully they said they are doing this to gauge public opinion; if so, forward this thread on to them so they can see what the reaction is.
WhackMushroom @ Jul 13th 2007 12:23PM
hold your horses people .. companies this big cross wires all the time AND its a prediction not policy .. let SCEA dictate what the americas policy is ..
rodsky @ Jul 13th 2007 12:41PM
http://atvs.vg.no/player/?id=10235
http://atvs.vg.no/player/?id=10235
http://atvs.vg.no/player/?id=10235
watch it
interview with kaz, parts are in german but the interview is english
marcandrer @ Jul 13th 2007 1:48PM
check Joystiq, someone from SCEA as unconfirmed the news and confirmed that Sony will produce both 60GB and 80GB in the US.
JimyD @ Jul 13th 2007 1:54PM
Meant "damage control" in post above. There has already been enough PR damage.
WhackMushroom @ Jul 13th 2007 2:08PM
told you bitches to hold your horses .. and now the SCEA slap back .. these huge companies sometimes do this guys .. its not just in video games.
Ty @ Jul 13th 2007 2:40PM
Relax people, the 60 Gig version isn't dead. It'll stay on the market along with the 80 Gig version. Karraker states that Reeves statement is inaccurate.
See for yourselves -
http://www.joystiq.com/2007/07/13/sony-says-60gb-is-not-over-in-us/
OrganicShadow @ Jul 13th 2007 2:38PM
To quote Jem: "Our solution? Drop the 80GB to $500 in a couple of months, in time for the big Christmas releases. Then bring back the 20GB system, without the Emotion Engine, for $400 dollars. Things would make a lot more sense if that were to happen."
Now that I actually think about what you said, that makes competition between PS3 and 360 as direct as possible(until 360 drops price). Because the 20gb unit without wifi(just like Prem 360) would compete directly with Prem 360, and the $500 PS3 would directly compete with Elite 360, with the exception of the $20/40gb difference.
With a MUCH more reliable console that won't really need an extended warranty, it would make the 80gb PS3 a much better deal than the elite regardless of the price/capacity.
Outbreak42 @ Jul 13th 2007 3:43PM
What I most dislike about consumers, talking from a marketing point of view is how readily they are willing to complain for prices.
Watch all those Apple geeks, they are not complaining about paying for the Iphone at over $600 f**ing dollars. It's just a damn phone with nice interface, yet People complain about Sony that is giving the fastest CPU available + BluRay technology for under $600 dollars. Cmon kids, wake up... go to work and save enough, the price is more than fair for such a device.
Popfrogs @ Jul 13th 2007 3:49PM
@16: The PSP did drop in price already, down from $200 to $170. I kinda feel dumb because I bought one 2 weeks ago, but with the 3.40-OE firmware I can play my purchased games from the $60 4GB memory stick I picked up. So...a loss and a win at the same time.
langx @ Jul 13th 2007 7:18PM
15. "Are they REALLY that out of touch? First the idiocy of removing the 20 gig model, now this?"
No, I think Sony knows exactly what they are doing.
Posted at 11:02AM on Jul 13th 2007 by JD
I'm sorry. They don't have a damn clue as to what they are doing.
I have to second that Stef, they don't understand people are not willing to pay $599-800 for a system.
If they knew or were thinking about a price cut there was no reason to get rid of
the 20gb model.
Here's a thought. Sell the PS3 without a Hard drive for $400. You can get your own HD.