We know there are still a lot of you out there just on the edge of buying a PS3, but it's still a difficult expenditure to rationalize. It is a lot of money, after all. It was more a year ago, and it could be less in another year, right? According to SCEA's product marketing VP, Scott Steinberg, a price drop in 2008 may not be as likely as once thought. The reasoning behind this notion is the fact the console has been selling so well this year. He said, "we're seeing that the hard-core gamer is not afraid to throw another $100 at the PlayStation 3 because the value proposition is so rich." It does have a great value proposition, but it'd be an even better one if the price were a bit lower, right?
Sure, sure, economics, marketing, and business aside, Steinberg is saying that due to the PS3's momentum, a price drop doesn't appear to be necessary yet. If people are planning to buy it at the current price, why lower it even further? Steinberg feels the momentum should continue through the blockbuster titles coming in the next several months. We say we'll still see a price drop in 2008. Just near the end of 2008.
Reader Comments (Page 1 of 1)
Haiddasalami @ Feb 22nd 2008 12:44PM
I feel that Sony is at the right price. They need to recuparate for their earlier losses. Bring it down when Killzone 2 and Resistance 2 come out or just before christmas.
Dan Davis @ Feb 22nd 2008 1:27PM
Agreed. Same thing with Nintendo not dropping the price of the Wii... why lower the price when it's selling out everywhere?
JayVe @ Feb 22nd 2008 2:15PM
Funny how the entire world complained when the 360 launched at $400. Yet here we are with the striped-down version of the PS3 sitting at the same price point, and now it is seen as "the right price point?"
Boy, the world sure does change...
Eggy @ Feb 22nd 2008 2:46PM
The stripped down version of the PS3 offers more value than the 400 dollar xbox 360 ever did. Besides 400 dollar is not that much for a console. The only people whining are probably still living at home and going to school because they have no idea of what things cost. Get a job if your hobby is gaming.
Livi70590 @ Feb 22nd 2008 4:00PM
Also, the state of the world economy etc.
Tranando @ Feb 22nd 2008 12:50PM
Makes sense. The PS3 is already fantastic kit for the current price, and with a whole lineup of killer titles this year, I don't expect sales to slow one bit, infact I would expect to see them accelerate, especially in light of the Blu-ray victory in the format war.
PS3 will be a 20,000,000 units quicker than many people imgined.
darth balls @ Feb 22nd 2008 12:54PM
i think if the ps3's success of late isnt due too a lack of 360 hardware, and ps3 starts beating the 360 every month we will see a drop in price on the 360 and the ps3 will follow.
bigd7387 @ Feb 22nd 2008 12:54PM
I bought the 80gb in January for the Blu-ray Movie function and will still be using the 360 for all my gaming needs.
RPGJock @ Feb 22nd 2008 2:14PM
@Bigd7387
If that was really true, you would have bought the 40 gig model instead of the 80 gig. Obliviously you wanted BC to play at least PS2 games....
I am just saying...
The Sound @ Feb 22nd 2008 1:06PM
Oh purlease.
Price drop comes in a month or two. Guaranteed.
RazLeboL @ Feb 22nd 2008 1:21PM
I think they should drop it anyhow. They are barely selling more right now and that is because of the blu-ray was declared winner. If they drop the price, it would probably be out of stock for the whole year.
Popfrogs @ Feb 22nd 2008 3:02PM
"They are barely selling more right now and that is because of the blu-ray was declared winner..."
Epic Fail. The NPD and worldwide sales numbers show it leading two months in a row. That's called "momentum".
mji245 @ Feb 22nd 2008 1:35PM
trust me if the 40 gb will cost $299 then sony will own the cosole wars
Binaryfiend @ Feb 22nd 2008 2:00PM
Sucks for me. I've been waiting on news before I buy my 2nd PS3. I don't want to get stuck with older gear. That price drop would make me buy another one on the spot and maybe even think about gifting one. I sure as hell don't want to pay the same price for something that might be the old model in the next couple months.
Teddy @ Feb 22nd 2008 2:05PM
If Sony drops the 40GB to $299 and introduces a 120/160GB for $449 or even better $399, sales will spike for sure. I even expect Wii like shortages during the summer/fall to happen if they drop the price. I was in several stores and I didn't see any 80GB units, just 40GB, so a new higher capacity HD SKU is probably close, hopefully at a lower price along with the 40GB (with DS3 controller included, crossing fingers).
Please Sony do it before one of my main reasons (Blu-ray is another) to get a PS3, GTA IV, arrives.
Fane @ Feb 22nd 2008 5:49PM
IF Sony does drop the price any time soon, it won't be to $299, but more likely $349 or so. The previous price drops were 16-20% (depending on how you measure them). Future price drops will NOT be 25-33%.
Edge @ Feb 22nd 2008 2:07PM
If you still have to justify the purchase of a PS3, it's still too early. All the other systems have long since justified themselves.
mark @ Feb 22nd 2008 7:50PM
i agree. i have a 360. and that's cause it has tons of awesome games. i really want to buy a ps3. but it's lacking good exclusive games. and i can buy a bluray player for 400 if i really just want a bluray player. if really good games are released exclusively for the ps3, or the price drops below other bluray players, then i might buy one. but more so for the games.
cmw @ Feb 22nd 2008 2:24PM
The Xbox 360, both Pro and Elite, were dropped by $50 today at futureshop.ca and the Pro is down by $50 at bestbuy.ca too. Hmm ... If this happens across the board for the 360, will the PS3 be far behind?
Fane @ Feb 22nd 2008 5:54PM
I think those price drops (which I also saw today) merely reflect an overdue adjustment to the U.S. prices and the near-parity of the dollar(s), but I could be wrong as I don't EVER check any 360 sites.
Tim @ Feb 22nd 2008 2:45PM
I imagine we'll see a summer price drop of $50 or so.
Jove @ Feb 22nd 2008 2:58PM
makes scence, it should come down when the cell drops to 40nm and they begin to use the smaller diode. meaning when they redesign the console all together and reduce the parts even more. thats when it would make sence to me. plus when they have those AAA titles like killzone 2 metal gear and all those titles, thats when the ps3 will really take off. with a combination of those things
Binaryfiend @ Feb 22nd 2008 3:21PM
I guess the bottom line is the bottom line. The price will only go down when Sony feels they need that bump to pull sales along. Right now they think things are great so instead of dropping the price just a bit and becoming a cultural phenomenom (see Wii), they will probably keep it the same and sales will stay roughly the same with a slight upturn based more on the inclusion of Blu-Ray. Then again they do have to turn a profit and right now their biz model isn't so great. Hopefully those reduced costs (45nm, smaller laser) will make a dent in the future.
JayVe @ Feb 22nd 2008 3:46PM
I'd prefer Mo-Price-Cuts
pkpk523 @ Feb 22nd 2008 4:33PM
I do think Sony would be well-served to drop the 40G another $50. Yes, momentum is great, and 2008 will be a great year for the PS3, but think of the huge number of casual gamers out there who want one. Their A1 titles coming in a few months will tide Sony over throught the rest of the year and into the '09, but a slight price drop now would get a lot of those on the fence now, with the great titles coming out getting the other fence dwellers soon thereafter. That's momentum at it's fullest potential. And that's how you stay on top. You don't sit back and say "things are going well now, and they'll go better soon when our great products (MGS4, LBP, GT, etc) come out". You see an opening and you pounce on it.
Do I see it happening? Doubtful. I think Microsoft will drop their 360 around August once they have enough consoles to fill the shelves and Sony will follow suit. But honestly, I think the best thing Sony can do is be the initiators this time around. They've made mistake after mistake this generation, and need to make MS follow suit this once. Think about it. With the PS3 selling much better now, with all these great titles coming out soon, and with another price drop (and yes, I think $50 is enough of one) MS will have no choice but to drop their price. And this time, even we 360 lovers will have to admit price drops aren't because things are so gloomy in Sonyland, but because Sony is going for the jugular, attempting to capitalize on their "momentum".
Christian @ Feb 22nd 2008 7:29PM
I think Sony do right with keeping the prize up for the time being. It gives them more time to switch to 45nm Cell cpu's and come up with other cost saving measures. As long as the 360 stays where it is in the prizing then it only plays in Sony's advantage to wait with the price cut until their costs are further down. They already got the momentum and the combination of growing Blu-Ray uptake and top tier games coming out will probably keep their factories humming at top capacity anyway for the time being. And the current prize isn't that high anyway, I mean they even had a Joystiq story today about how a restaurant visit for the team ended up at the prize of two PS3 systems.
davedrastic @ Feb 22nd 2008 9:01PM
We need a price correction in Australia just like the one for the 360 in Canada, only more so.
A PS3 in the US currently costs $399 for the 40gb - which should be equivalent to $433 Australian Dollars. But in Australia the 40gb costs $699. That's a 60% increase over what it should be.
Games - COD4 in ebgames US is $59.99 - equivalent would be $65 AUD, but ebgames.com.au price is $119.95 AUD. That's an 85% increase over what it should be.
If we had US pricing I'd have bought one of these months ago.
I think Aussies don't need a price reduction as such, but a price correction ideally for both the hardware and the software. I guess if the price correction doesnt come for the software that makes importing games a lot more attractive - might have to check that out.
If my maths is wrong I apologise, or if anyone can shed some light on the above that would be good.
steve @ Feb 27th 2008 4:46PM
I think some of that has to do with shipping costs? I'm not saying it doesn't suck, but don't a lot of products have similar mark ups down under? I remember when i was there seeing dickies pants for like $100 when they're only $30 here.
as for the price cut, i can see waiting on the possibility of other sku's (included dualshock perhaps?) but at some point you have to accept that things will go down in price after you buy them, and weigh that against how much you want it. I've had mine for about a year and don't regret what i paid.
ltefoe @ Feb 22nd 2008 10:19PM
I never thought the price was to high. You can do a lot with it for the price.. People are just cheap...
robotcan @ Feb 23rd 2008 3:35AM
Momentum is great and Sony has that at the moment, but the truth is, this momentum is only just starting to build. The Blu-ray win, definitely started the ball rolling, but it's just that - the ball has only begun to roll. Sony is barely selling more consoles per month in the US and in order to send that ball careening down the hill, Sony would be wise to get the AAA titles to come out asap and a price advantage.
If Sony follows through, gets the price down and secures those games, we'll finally be on a roll; however, until then, the Blu-ray win is not enough. If nothing else is done, the Blu-ray spike will end in a few months and then we'll be back with a PS3 that's stifled with an arguably high price and lack of games.
Christian @ Feb 23rd 2008 6:45AM
I doubt the Blu-Ray spike will fade of in a few Months, in fact I think it will establish the PS3 sales at a higher level going forward. And in terms of getting the AAA titles out I don't think there is anything Sony can do apart from let the developers finish them. Throwing out Haze, MGS, LBP, FF and so on to early will actually make them non-AAA titles as they will be buggy and unfinished. Luckily many of these titles will be coming out over the next few Months.
Also in regards to the pricing issue I think both Sony and MS knows that getting a price advantage at this point will be next to impossible. If one of them cut the price significantly the other will follow. And all they both achieve is taking themselves back into the red. The PS3 already have a price advantage over the Xbox Elite in the sense that they have the aproximate same price while the PS3 offers more (blu-ray instead of DVD for intance).
Stephen Lang @ Mar 6th 2008 5:47PM
While there are definitely arguments for a price drop now to build on their momentum (since they have a lot of units to catch up to MS and possibly Nintendo), it really depends on their current P&L per unit. The numbers probably aren't good enough to proactively drop the price right now.
I do believe that a $75-$100 price drop will come by the holidays, even if it is mainly in reaction to a Microsoft price drop. Their cost of production will have improved by then as well. They're mainly watching each others' sales, and Nintendo somewhat less so.