Consumer price ceiling may be causing PS3 sales slump

by Nick Doerr { Sep 12th 2007 at 11:00AM }

According to Tech Analyst Tim Bajarin (with Creative Strategies), people set a price ceiling of $399 for new electronic items and anything above that ceiling will not only get infested with rats (damned crawlspaces), but won't be able to sell in volume. They cite the iPhone as a suffrant of this concept as well as the PlayStation 3. No, suffrant isn't a word, but it should be. It's a new way of saying "one afflicted by suffering" or something. This price ceiling isn't end-all, that is, televisions and computers are exempt from the ceiling because those are "worth" the extra cash.

What we thought was interesting was the coupling of the $399 price ceiling and the rumored price drop of the PS3 to that sweet $399 mark. If that's what it takes to sell volumes, there might be more behind this analysis than meets the eye. Still, most people reading this site are exceptions to the rule -- we nabbed the PS3 before this price ceiling, but then again, we don't exactly constitute "volume" sales. Do you guys think PlayStation 3 sales will skyrocket if the price hits $399?

[via Joystiq]

Tags: sony

Reader Comments (Page 1 of 2)

Byron517 @ Sep 12th 2007 11:07AM

Of course!! If you look at the recent price drop after the E3 announcement having the price drop to 399 would only push for consumers to buy! Expecially if they did this during the holiday with solid games coming out like Uncharted, MGS4 in early 08! I believe if Sony would've marketed early on better then what they did they could've sold more then but its ok, I believe they'll make up ground this holiday!

Young Capwn @ Sep 12th 2007 11:09AM

Keep in mind that Gamestop is also selling the 20 gig for 349.99!

SimplyB @ Sep 12th 2007 11:28AM

Damn Stoli do you have nothing better to do than troll the PS3fanboy site. How sad. The PS2 still outsells your piece of shit xbox. I know your mad because you bought an inferior system that was hastily put together in order to try and beat the PS3's launch, but give it a break, and don't take it out on us hear. If you want to bitch about the PS3 then go do it on Xboxfanboy. Duce Bag.

Chameleon @ Sep 12th 2007 11:30AM

'suffrant' ...

i like it ... i really really like it.

Larry @ Sep 12th 2007 11:31AM

This encourages me to go out and get one. I bought a Wii but have been vacillating on the "Big Boy" console since the first price drop. I need this price point to get my wife to okay the purchase. I have been waiting for some time to get a PS3. I want one but I want to play a few of the 360s games. I'm a confused consumer with limited resources, both money and time.
What would be nice is the Blue-Ray remote bundled in as well. That would be sweet.

coplice @ Sep 12th 2007 11:32AM

i bet stoli work in a governemental place and his web browser block "games" site and since xbox360fanboy is under that category and ps3fanboy isnt he spend his time here
suck to be a 360 troll :p

ruibing @ Sep 12th 2007 11:34AM

@Stoli

- The comment on it taking 7 years was about it taking that long for the games to take full advantage of the hardware on the PS3. Remember the PS2? God of War I and II which looked so great only came after so many years. They simply expect the same for the PS3. They do not mean that it will take that many years for games or graphics to get good anything, they just mean graphically they could get even better.
- The PS2 was also difficult to program for due to a different architecture, but developers got around it. As long as developers actually work on the system, instead of being lazy and expect easy ports, like EA and Valve, then they can make some great looking games. Most of the EA sports game don't even make use of the SPEs, so instead they simply use the Cell processor like a dual threaded single core. The 360 has been around longer, so every game that is for both systems usually started first on the 360, which is why they usually make a lazy port to PS3 to make a quick buck. This is why exclusives for the PS3 always looks so good, because the developers actually take the time to develop on the PS3. And once they do it once, it will be easy to do it again. So expect more games to hit the shelves more frequently as we go exponentially.
-No idea what article you are talking about. You might want to include a link to your credible source. The only thing I know is that the reason cross platforms don't work as well on the PS3 is because the developers didn't use the SPEs, so obviously the PPE can't compete with a tri core without the SPEs.
-The price ceiling goes for game consoles more specifically. Not everyone is aware that the PS3 is also a blu ray player, so they see it as one expensive game console. No game console has ever cost $499-599 before. But it seems like Sony's new campaign for the PS3 as an entertainment center is helping. Microsoft is doing the same thing with the new 360 SKUs. The 360 is more expensive when you add a 120GB hard drive and HD-DVD addon to the new HDMI version with the revised heatsinks. Sony simply gave you the complete bundle. It will take some time before people get used to it.

Seriously, if you go around making these kind of remarks that are so blatantly one-sided, it really takes way too much restraint on my part not to defend the PS3. And if you think the PS3 is so bad, why in the world do you have so much free time to check this fan site. I have much better things to do with my free time than to go onto the 360 fan sites to find posts to comment on. It really makes me question the age groups of each console's demographic.

Zim @ Sep 12th 2007 11:38AM

Stoli are you just retarded or something ?

Just Leave the PS3 alone, its going to do fine, remember we did have retards in 1999 saying the exactly the same thing about the PS2 only by Dreamcast fanboys. Now where is that console ?

Here is a link to a page with all the below posts :

http://community.eu.playstation.com/showthread.php?t=138402

So here is a few examples of what people where saying back then :

Dreamcast is in Many Ways Superior to the PSX2
Why PlayStation 2 will Fail
Why Nintendo always kicks everybody else's asses
Dreamcast will have a chance to beat sony
Psx 2 is all hype
Dreamcast has better graphics then psx 2 thats what my eyes see
Playstation 2 Games Suck
Dreamcast better than the PS2
Playstation2 is one ugly looking thang

Spherical @ Sep 12th 2007 11:47AM

@ Stoli

It's amazing how much of a cockslap one can possibly be... The balls to own up that they released a piece of shit console to beat competitors and then covering up the whole recall shit just to cloud the fact that their design flaw wasn't so bad?
Seriously you moron Xbox fanboys are really starting to make this site unbearable...

PS3fanboy... Monitor the post more because I'm beginning to think you all don't give a damn about morons that’s just Troll and flame the PS3 and this site...

Do something about it please!

jadedcritic @ Sep 12th 2007 11:51AM

No. I don't mean to be unkind - but price isn't the only problem - Xbox has units retailing higher then 400. The number one thing keeping PS3's from moving in any real numbers is it just doesn't have the games. YET. See, I'm an old @#$@#$, I can remember a day when the choice was between Genesis and Super Nintendo and Genesis was the obvious choice for the same reason. Super Nintendo didn't have the games at the time.

Don't misunderstand me, I hope they can deliver; and price drops are always welcome - but without the games it's just another piece of electronica - and we all have that in abundance.

SimplyB @ Sep 12th 2007 11:52AM

@ Stoli, I brought up the PS2 because it still out sales your precious xbox360. You seem to think that because the xbox360, which was rushed out a year ahead of when it should have been, has sold more consoles than the PS3. If we are basing the console wars on strictly units sold so far this cycle then the PS2 still beats the xbox360 and it's not even a next gen console. I can take a shit in a box and sell it to you as a fudge cake, or I can bake a real fudge cake, but it will cost you more. Which do you want to eat.

PWNED!1!

JarOfFlies @ Sep 12th 2007 11:53AM

Is there always this many 360 fanboys?

exolstice @ Sep 12th 2007 11:57AM

Personally, I'm waiting for it to drop in price, and $399 sounds good to me.

JeremyK @ Sep 12th 2007 12:06PM

Definitely part of the problem. Obviously not having a ton of great exclusive games yet is the main issue so far though. This fall should give the PS3 a boost in that department.

I actually just ordered my PS3 last week with that Sony Style deal for $379. Perfect price and I actually wanted the 60GB for the PS2 backwards compatability so it worked out nicely. Hopefully I'll be playing some Warhawk tonight.

wei @ Sep 12th 2007 12:06PM

Argh. Isn't it obvious by now? The PS3 sales are slow because there are very few compelling software titles to make the console enticing enough to consumers. The price point definitely is not helping, but I think a lot of people could get past it if there were any legitimate killer apps for the PS3. Let's face it, Motorstorm is a fun but shallow game. Resistance is a well-executed but conventional shooter. And Warhawk? Well, a multiplayer only game might not appeal to the masses.

I own all three systems, and I just don't turn on my PS3, because I don't find any games for the system to be all that great. Though, I do want to try out warhawk at some point.

A drop to the $399 price point would be a boon for PS3 sales, but it really won't pick up until there's a definitively great, must-have title out there. And right now, such a title definitively does not exist.

wei @ Sep 12th 2007 12:07PM

Sorry about the double post. Comment system went wonky on me.

But seriously. The whole console bashing is so pointless. All systems have their merits. And no one system deserves success more than any other for any philosophical reason. You kids bashing on each other just need to whip out a ruler at this point, cuz you're looking pretty damned silly.

gumby @ Sep 12th 2007 12:13PM

I honestly think it is a combination of a lot of things. The most important thing is games. We haven't seen any real killer games for the ps3, I love warhawk and resistance but the ps3 just doesn't have games that are getting big media coverage like halo 3 is. And since there are no big mainstream games the cost seems insane to most people. Why would you want to buy something that is more expensive than the competition but doesn't seem to have games that are up to par with that system. I really like my ps3 but I can completely understand why the average person isn't rushing out to buy one. I think one big game will push sales and I think they probably should have really tried to have God of War 2 as a launch on the ps3. I think the system will survive, but it will take better exclusive games and an online service equal to the 360 to do so IMHO.

SuicideNinja @ Sep 12th 2007 12:16PM

The sales would go up, but they won't skyrocket. There's still not enough alluring titles to bring in the masses. They'll come, but it'll still take time.

MGS4 will cause a sales spike as well, but I'm sure we'll see a big one whenever the hell FFXIII comes out. GT5 will definitely make a mark. DMC4 won't hurt either, unless the 360 version is more popular. We'll see I guess.

Ghaleon @ Sep 12th 2007 12:17PM

Most obvious headline ever.

Popfrogs @ Sep 12th 2007 12:17PM

Moderators...admins..please for the love of god, it's time to scrub the scum out of the toilet this blog has become.

paulrapoza @ Sep 12th 2007 12:18PM

SONY DEFENSE FORCE (SDF), assemble!!!!

I mean really, get a grip fanboys. MGS4 will not save the PS3 (it's coming to the 360 middle of next year) and neither will Home (Second Life rip off from Sony)!

No games = no sales. Deal with it!

And when Halo 3 sells out in two weeks, Sony get's A**-raped again!!! Did I mention BIOSHOCK? Oh wait, you get craptacular Lair (the PS3 savior). Hahahahahahah. Oh wait, you were serious, let me laugh harder. HAHAHAHAHAHAHAHAHAH!!!!!

Trev @ Sep 12th 2007 12:21PM

The iPhone has a slightly easier time with the price ceiling because it can be perceived as 'useful'. You can do something productive with a phone and organizer/datebook/calendar and all the other stuff in an iphone, plus movies and music.

Aside from Folding, the PS3 isn't 'useful' at all. It does lots of things, but nothing that someone could pretend they really need. That's the iPhone justification. "I need a phone I need an organizer." I don't NEED an awesome, amazingly reliable, game machine and media center with free online capabilities and all the bells and whistles built in so I don't get raped on the price of wireless or rechargeable controller batteries, so it's harder to justify the purchase.

I struggle not to play Warhawk until 4am and go in to work a zombie all the time, and I love my PS3, but I can't pretend I need it to survive. People can pretend they need an iPhone.

JarOfFlies @ Sep 12th 2007 12:32PM

Warhawk and Sigma?

Nick @ Sep 12th 2007 12:43PM

$399 US! Its not even £399 in the UK yet. And to think over here in the United 'Milk that Cashcow' Kingdom we paid £425 at launch - roughly $863 at current rates.

A hell of a lot of people I know who bought a PS3 did so to get a 'cheap' Blu-Ray player though so go figure. The PS3 is still largly perceived as overpriced by most gamers here. I agree with Wei, without a killer app then I don't see things changing. If MGS4 or the new FF, or perhaps Haze were out then maybe things would be different. In the face of the 360s games catalogue, new exclusives and recent price-cuts Sony are in trouble. The recent news of Paramount going HD-DVD over Blu-Ray can't have helped either. The sound of cackling and hands being rubbed together must be getting louder in Redmond these days.

learnedhand @ Sep 12th 2007 12:45PM

Is there anything more pathetic than fanboys? And then, to visit a site of a system you don't even own just to act like a clown.

Boys....you are embarrassing yourself. Really.

The price will continue to drop and systems will continue to sell. It will be a decade before sony gives up on this.

We need games; and they will come.

LH

Andir3.0 @ Sep 12th 2007 12:55PM

@26, I'm seriously beginning to think that SDF was created by Microsoft (or another major Sony competitor) as a viral-anti-marketing scheme to make anyone that supports Sony look stupid. You can't get info on who registered it though since they went through a proxy organization for registration of the domain.

JayD-1K @ Sep 12th 2007 1:03PM

@360 fanboys,

please stop being stupid! i have both systems,(AND GUESE WHICH ONE IS IN THE SHOP RIGHT NOW?) the only reason the 360 even sold as well as it did is because;
1) it was the only system out at the time.
2) they droped support for the original XBox. and the only way to play the new games that came out was to, buy the new system!
3) Halo. as soon as the 360 came out....they were talking about Halo 3 and how it will be the best game for the system.
4) addvertising! MS & the Wii are on the air all the time! the Iphone sold so well because they had a very good marketing plan! if Sony would put that much affort into the PS3....people would finnaly understand what the PS3 is able to do!

now the system (360) has had a few good games come out for it but, lets get serious.....almost every body i know with the system is waiting for Halo. yes Halo will sell well over a few mill but, that's it....nothing else will sell on the system like that! why do you think that some game devs are willing to only sell their games on one console this YEAR!!! they know what's going to happen.....Halo 3 comes out the XBox world will shut down, and their game will fall to the waste side! (imho)

because of the anti-Sony BS, the price will boost sells like crazy!

xbl-JayDF 1K
psn-JayD-1K

TheSh0wstopper @ Sep 12th 2007 1:12PM

If the PS3 launched at $399 this console War would be in the same state as the format war... OVER!!!
If the PS3 can hit $399 by christmas and sustain that price (or whatever the competitive # is) then they will most definitely PASS the 360 in installed base by next christmas and sustain the lead for the rest of this generation.

TheSh0wstopper

Hirsbrunner @ Sep 12th 2007 1:40PM

"Do you guys think PlayStation 3 sales will skyrocket if the price hits $399?"

No, but if it hits the $299.99 sweet spot for game consoles, it probably will. I'd buy one for that price, or lower.

ruibing @ Sep 12th 2007 1:45PM

@11

The PS3 has quite a number of exclusives lined up. And when I say exclusives, I mean games only coming to a particular console platform, not any other (even the PC, since someone with a different console can simply play it on a PC).

Here is a list of noteworthy 360 exclusives:
(http://en.wikipedia.org/wiki/List_of_Xbox_360_games)

Dead or Alive 4
Fable 2
Gears of War 2 (Gears of War 1 doesn't count since it is available on PC now)
Halo 3
Halo Wars
Lost Odessey
Magna Carta 2
Mass Effect
Ninja Gaiden 2
Project Gotham Racing 3
Project Gotham Racing 4

Here is a list of noteworthy PS3 exclusives:
(http://en.wikipedia.org/wiki/List_of_PlayStation_3_games_

Disgaea 3
Eight Days
The Eye of Judgment
Final Fantasy Versus XIII
Final Fantasy XIII
Folklore
God of War III
Gran Turismo 5 (and Prologue)
Haze
Heavenly Sword
Hot Shots Golf 5
Jak and Daxter: The Lost Frontier
Killzone 2
LittleBigPlanet
Metal Gear Online
Metal Gear Solid 4: Guns of the Patriots
MotorStorm
Ratchet & Clank Future: Tools of Destruction
Resistance: Fall of Man
Shin Megami Tensei: Persona 4
SingStar
Star Ocean 4
Tekken 6
Uncharted: Drake's Fortune
Warhawk

I know I missed quite a bit on both sides but these are the only ones that I thought were good. You see how the numbers are pretty good for the PS3.

Doug @ Sep 12th 2007 1:46PM

Is it coincidence that sales of a given console are inversely proportional to its price? That the best selling consoles are also the cheapest? I think not.

Paul @ Sep 12th 2007 1:55PM

I really find it funny how defensive people get over the systems they buy. And Stoli misread the article saying that Cell and GPU don't work well together when the article actually says they work better together then they do on their own.

Yes, sales on the PS3 don't match the 360 but that's because the 360 has nearly a years head-start.

Every developer complains about new systems being difficult to program for. They said it about the PS2, they said it about the N64, they said it about the XBox, they said it about the Gamecube, they said it about the 360 and they are saying it about the PS3. The fact of the matter is they'll figure it out and get over it. They always do.

And the biggest thing that comes to mind for me when people start arguing consoles is the reason I did not buy a 360. It's BROKEN. I know 8 people who have one and 6 of them have had to warranty them. Microsoft has stated they are going to loose a billion dollars because of this. Not very confidence inspiring to the consumer.

I don't know about you, but if I drop $300 or more on ANY product, it damn well better work. The games will come and the games that are out now are great (of course there are some exceptions), just imagine what the next gen of games will be like. Developers are already crying about storage limitations for the 360 as the games get bigger and bigger.

If Sony really does drop the price to $399 and as the games roll in, PS3 sales will skyrocket.

Simstim @ Sep 12th 2007 2:15PM

Yeah, $400 coupled with the killer apps coming out early next year will make the PS3 sell very well.

ruibing @ Sep 12th 2007 2:54PM

@25

Where in the world did you hear that MGS4 is a timed exclusive from? Even Kojima says there is no plans to bring it for the 360, so where in the world are you hearing otherwise?

If you are talking about the installment(s) came to the xbox, let's look at the dates:

MGS2 (PS2) - November 2001
MGS2 Subsistence (XBOX) - November 2002
MGS2 Subsistence (PS2) March 2003
MGS3 (PS2) - November 2004
MGS3 Subsistence (PS2) - March 2006
MGS3 Subsistence (XBOX/360) - Unknown
MGS4 (PS3) - Spring 2008
MGS4 (360) - Unknown

You have two unknown dates, meaning MGS2 might have been just a irregularity, who knows? But there is absolutely no room for you to speculate any more than for me to deny. All I can say is that there is nothing coming to the 360 fans for now.

Seriously, you guys will never clear themselves of using FUD tactics if they don't provide credible sources to what they say.

James @ Sep 12th 2007 2:54PM

I have a question about Sony and Blu-Ray. If Blu-Ray is so awesome, why are Sony movies showing up on HD-DVD??? Such as Underworld. It's not for release in the US, but it's definitely a Sony movie on HD-DVD. And from what I understand, Underworld is not the only Sony movie being released on HD-DVD.

MARKTW @ Sep 12th 2007 2:56PM

who cares which console is "wining" in the end the consumer is the winner when they get to play all the cool games and systems! I would have to say I'm a Games fanboy not a system fanboy, as they all are fun to me!
So when there is a price drop and with the impending release of
Ratchet & Clank Future: Tools of Destruction
I believe the PS3 will sell better!

knight667 @ Sep 12th 2007 3:02PM

I know that personally I set a $399 "price ceiling" long ago for my purchase of a PS3. It's a game console, not a TV, not a computer, not an autonomous robot. I know Sony's losing money on these, but as others have said, if they dropped the price, the increase in sales would make up for it.

The economy sucks right now; prices on everything are up, items we need every day (food, gas, etc.), so spending that much more on the luxuries isn't really an option for most people.

ruibing @ Sep 12th 2007 3:22PM

@39 James

Will you care to provide some source for your information. I checked on Amazon and Underworld is only available on DVD and Blu Ray as it should. Most foreign sites often make mistakes. For example, Amazon UK had Lair and Heavenly Sword (or was it Warhawk?) for $30. And right now, Amazon UK has FFXIII on preorder (http://www.amazon.co.uk/Fabula-Nova-Crystallis-Final-Fantasy/dp/B000FN5EYE/ref=pd_bbs_sr_2/202-5091990-4118203?ie=UTF8&s=videogames&qid=1189544413&sr=8-2).

poprocker @ Sep 12th 2007 3:29PM

i'm a HUGE 360 fanboy, but after seeing a ps3 out in the wild and getting my hands on it playing Warhawk i'm a believer. Both systems are amazing and have lots to offer. I just have to talk Santa into buying me one for xmas now!

James @ Sep 12th 2007 3:38PM

Here is one of the links to the Underworld HD-DVD.

http://xploitedcinema.com/catalog/underworld-evolution-spanish-release-p-11690.html

This is not a coming soon or anything like that, it is already out. I have seen them on other sites as well.

James @ Sep 12th 2007 3:45PM

This is one of the sites I found the Underworld HD-DVD.

I have seen them on a few other sites as well, and it's not a coming soon item, it's already been released.

(http://xploitedcinema.com/catalog/underworld-evolution-spanish-release-p-11690.html)

paulrapoza @ Sep 12th 2007 3:46PM

Ah, it seems the SDF has arrived! I have all three systems. The 360 is played the most. Then the Wii (mostly the kids). Then there's the PS3, with dust on it and the one and only game I have (RFoM) with the same dust. Sorry guys, but there are no games and PSN is abysmal compared to XBL. As for Blu-ray, I will not back another Sony crappy proprietary format (too many have failed in the past). I don't like MGS4 or Heavenly Sword. So to some, there are no games on the list above we want. What most people want are the Halo 3/Bioshock/Mass Effect games that are here for the 360. Sorry, but Sony has been a bucket of SUCK in marketing and getting great exclusives for the PS3. Besides, the sixaxis controller SUCKS!!

James @ Sep 12th 2007 3:48PM

Sorry about the double post. I didn't see it post the first time.

Sora57 @ Sep 12th 2007 3:50PM

The word is victim, not suffrant

Time @ Sep 12th 2007 4:04PM

LOL, here we go again with he whole "I own all 3 system" Bullshit....yeah right, so let me get this straight you think the ps3 library will never get any better yet you continue to own it?.....instead of selling the damn thing, you come here to bitch about it?....yeah right, no one is going to hold onto an expensive piece of technology without thinking it's worth it......so please stop with the whole "I own all 3 systems" and then go on to bitch about the ps3...but that would probably be too much to ask from trolls

komrad @ Sep 12th 2007 4:17PM

What?! a cheaper PS3 will sell more? i don't think you need a full brain to come up with this conclusion.

railven @ Sep 12th 2007 7:50PM

I have all three systems too and here is how it goes in my house:

Wii - thank god Prime 3 dropped. I haven't touched the stupid thing since I beat Zelda and the last game on my GameFly que (SSX: Blur). Aside that I'm almost done with Prime3 and once that is done gonna have to wait for Mario: Galaxy and Brawl.

PS3 - It turns not I'm not a huge online gamer so Warhawk got boring quick. I'm more of a storyline gamer. I put Sigma in once in a while, one of these days I will beat that game! Aside that, things gathering dust too.

360 - I haven't touched that since Forza 2. Mass Effect looks interesting but I found KotOR to be rather boring and slow moving in terms of the story, so if it is anything like that i'll pass. Maybe when it comes up on my que I'll touch my 360 again.

PC - Bioshock/WoW is where most of my free time is recently. Bioshock is so god damn gorgeous! 360 owners are lucky enough to have this game. Course DX10 FTW! Eitherway, that or the guild on WoW.