Sony admits more can be done to highlight PS3 value message

by Andrew Yoon { Sep 5th 2008 at 2:00PM }

If you read this blog, chances are you're already familiar with Sony's "10 year mantra." PS3 is an incredible piece of tech with a lot of value built into the system. However, does your average Walmart shopper know about the things PS3 can offer? Probably not. With the $200 price difference between the cheapest Xbox 360 and PS3, Sony understands that it must do a better job at marketing its message. Julie Han, Sony corporate communications, told Gamasutra that "there's a lot we can do on the marketing front," especially about features, like PS3's video store, and its connectivity with PSP. Are these things that are spoken about beyond hardcore gaming circles? Unlikely.

"We don't talk enough" about Sony's "future-proofing" strategy, she admits. "With the recession, as people are ... on tighter budgets, they're going to be much more conscious of how they spend their money." Sony must now try and communicate to consumers directly why the PS3 is a better option for them, even if it is more expensive.

In spite of Microsoft's price drop, Sony has no plans to follow suit just yet. In fact, they're rather confident about the upcoming holiday season. "We're really confident that consumers are making choices driven by value," she says, "and we know PS3 offers that value across the board, with the built-in Blu-ray player the broadest and deepest software lineup in the industry, with LittleBigPlanet, Resistance 2, Motorstorm [Pacific Rift]... we're quite confident our holiday sales will be good."

Tags: julie-han, ps3, sony

Reader Comments (Page 1 of 2)

gumby @ Sep 5th 2008 2:06PM

i love my ps3 but the xbox price cut is really going to hurt i imagine.

Metal_Gear @ Sep 5th 2008 2:20PM

Not really, parents look at an Xbox and see violent gears or war 2 plastered all over as M$ capitalise on its hype and then a happy Sackboy on the PS3. Any self respecting parent would buy a Wii.... and rest would buy a PS3.
If money was the issues, get a Wii, its the cheapest dont you know and even if you dont play games much, you will play the Wii. A few free leaflets like the Little Big Planet to tell people why the Ps3 is a better choice would go a long way aswell as advertising on TV.

BananaBoat @ Sep 5th 2008 4:06PM

Yeah, because Resistance 2 and Killzone 2 SCREAM family friendly.

Also, the Wii is no longer the cheapest console, seeing as how the 360's lowest model just dropped to $199, which is 50 dollars cheaper than the Wii.

On the flip side, Sony just put out yet another 500 dollar console, in a market where people are screaming for a cheaper version.

I love my PS3, but it's hard to ignore that the 360 is now half the price of the PS3 in it's cheapest configuration, and 50 dollars cheaper than the Wii (which is sold out, still, in alot of places). Sony needs to drop the price of the PS3 before this holiday season. I'd be very surprised if they didn't.

Devin @ Sep 5th 2008 4:17PM

Banana,

It's still hard to ignore the fact that if you want to actually game on the thing you will still have to purchase a HDD (patches & DLC) and a XBL membership. Also, not everyone is lucky enough to have their homes cabled (every one of my friends), so don't forget about the wireless add-on. There also isn't a AAA title packaged with it either (Forza/X-men), just a couple mini-games.

I do see the price cuts on the Premium/Elite being a threat, but still, I don't see how anyone in their right mind can consider the $199 Arcade a threat to PS3. Even with a $50 PS3 price-cut they'd still buy the 360, so what's it matter.....?

Lars @ Sep 5th 2008 4:38PM

Devin is quite right. MS really reams you on the peripherals. Same with the Wii, and the VC games have a terrible price point.

My PS3 had the highest cost up-front but so far it's been the cheapest one to own.

What I'd really like to see is a music store along with the new video store. Plus something like Movement for the US.

Nate @ Sep 5th 2008 4:58PM

@Banana (and others)
It doesn't matter what the capabilities are to the mother thats going to buy it for there child. It's like the honda motorcycles campaign (friendly people ride honda's, which are far different then the OTHER motorcycles that are on those motorcycle gang movies).

If its the mothers choice (they often just do whatever the kid asks... sad but often true), they will pick the wii. Next, between the current ad's for the ps3 and the xbox 360, the ps3 LOOKS friendlier.

XxKTOxX @ Sep 6th 2008 9:08AM

Actually the Xbox 360 Premium and Elite have the needed accessories. They have HD cables (elite comes with HDMI too), headet, ethernet cables. What else do you need? Wireless is luxury. One tiny cable going along the wall is not going to kill you. PS3 only comes with composite, so already you're going to spend like $60 on a quality HDMI cable. Then a wireless headset. So in the end, you can't say that the Xbox 360 cuts you off on accessories.

Devin @ Sep 6th 2008 10:36AM

XxKTOxX,

The only thing that the 360 comes w/ that my MGS4 bundle didn't was the HD-video cable. Also, if you consider that POS $3 360 headset to be the same as what is offered to you to use w/ the PS3 then there would be two things missing. But you see, the funny thing is that I was able to grab a $10 w/ shipping gold-plated 6ft HDMI cable off monoprice(dot)com and was able to use my already purchased $10 Motorola Bluetooth Wireless (nothing dangling off my head w/ wires). Don't tell me that the extra $20 if I had to spend to it would make the PS3 that much more, because it doesn't. Wireless is not a luxury. I live in a 2 story house and there is no f'ing way I'm buying a 150ft cable just to drag it all the way from my basement upstairs to my room...ain't gonna happen....so just because wireless doesn't apply to you or you are Ok with running a cable along the wall (however long) most PS3 owners wouldn't and actually have aestetic standards for keeping their houses looking clean.....

Devin @ Sep 6th 2008 11:00AM

XxKTOxX,

Here's proof:

$10 6ft HDMI Gold-plated
http://www.supermediastore(dot)com/6-foot-gold-plated-hdmi-cablev1-3b-cat-2-full-hd-1080p-1440p-male-to-male.html

$14 Motorola Bluetooth 1.2 (new) [not mine]
http://www.pricegrabber(dot)com/user_sales_getprod.php?masterid=16244627&lot_id=7557679

marklar @ Sep 5th 2008 2:14PM

in other news, water is wet

Omnicron @ Sep 5th 2008 5:20PM

Please stop spreading your lies =)

Patrick @ Sep 5th 2008 11:57PM

Water makes things wet, but whether water itself is wet is debatable.

Miguel @ Sep 5th 2008 2:17PM

Ive been saying this for a long time now. They need to do a marketing campaign similar to the iPhone's in which they showcase everything the PS3 does.

Jerses @ Sep 5th 2008 2:30PM

yeah and do the obvios statement as the iphone... The ps3 can do this, and this and this..oh..and it can play games too.. that was retarded.

"We don't talk enough"... well i remember my life with playstation coming in august and home coming last year so yeah.. you talk a lot.

Eric E @ Sep 5th 2008 2:18PM

Any Kid wanting a next gen system this year isn't asking for one or the other based on price. I asked a 10 and a 13 yr old what they wanted and after their answer i asked if they knew how much they cost. They said "about $1,000?"
Any Adult is going to research at least a little big, like someone else pointed out, w/ multiple SKUs they're going to def be curious.
But a couple of "Casual older" gamers i asked (generally Madden fans) got their system cause of what they got last generation.
Then theres us Mostly (16-30?), where we can quote you all the individual Wiki Pages and UPC codes of each system and do a research.

TinyTim121 @ Sep 5th 2008 4:03PM

"Any Adult is going to research at least a little big"

Actually my Auntie just purchased my cousin an xbox360 for his birthday based on price and because the argos (British super store) catalogue showed mainly multi-platform games.

She didn't see the point in paying more for something that has the same games on the other cheaper option.

And i'm afraid thats how other parents will proberbly see it, don't forget they're likely to see game consoles as boring.

Not that i'm slagging off the PS3; i'm more than happy with it, i just wish it sony could convince everybody else to spend just a little bit more.

gumby @ Sep 5th 2008 4:17PM

exactly TinyTim...I know quite a few people that purchase on price. I think most people who will comment here and are thus reading gaming blogs look at the value you are really getting with a ps3. But the average joe looks at the immediate price and that most games are for both systems and the xbox is simply cheaper. Otherwise why the hell would anyone buy an arcade edition when you are going to get raped in the purchase of add ons.

Nude Love @ Sep 6th 2008 1:39AM

@ TinyTim

Send that poor bastard my condolences.

I couldn't even imagine...

drdre74 @ Sep 5th 2008 2:24PM

M$only cares about winning the so called race sells. They aren't making their money back with all the systems that get sent back for repairs. They can cut the price on the 360 all they want its still a crappy system that doesnt last more than a few months to a year before bricking. I'm happy with my high prices PS3 i leave it on all the time and its not bricked yet unlike my 360 that bricked after 2 months. I'm on my 3rd 360 now.

Emericanized @ Sep 5th 2008 3:24PM

so stop supporting MS by buying multiple consoles.

drdre74 @ Sep 5th 2008 3:57PM

I didn't buy multiple consoles. I bought one and its bricked twice and they sent me new ones each time.

Devin @ Sep 6th 2008 10:41AM

So sell the da*m things. How can you keep something that continues to break? That's complete BS. I would never support a console that I bought that continued to break. I would get rid of it in a heartbeat and support the company that is actually making a quality product that only continues to get better....

Woz @ Sep 5th 2008 2:32PM

Marketing PSP connectivity? Why? Most people with a PSP are a Sony fanboy anyways. Start marketing heavily towards the younger kids with LBP.

Sony does need a timely pricedrop this holiday season. Even if it's a $50 reduction only for the holiday season.

Kodros @ Sep 5th 2008 3:14PM

"Most people with a PSP are a Sony fanboy anyways"

Dumbest comment of the week award goes to...

Thomas @ Sep 5th 2008 2:34PM

You know, really SONY, you know the market is slow, almost recessed, so how about reducing that price. You can't play the market with the gameplan of yesturdays marketplace, you're going to run into problems. I would hope that if there isn't a price drop that there's some rebates, or some real incentives. People on budgets don't care about the value of the PS3, they just need something that fits their budget.

Iridium @ Sep 5th 2008 2:42PM

Whatever the price the PS3 is the best value in home entertainment. Besides most stores like Best Buy will be offering incentives with TVs and consoles packed in. Reccession or not people will still want to buy a HDTV and Best Buy isn't getting rid of the 3 years no interest financing any time soon.

I expect 40" 1080p Bravia PS3 package deals for $1500 with 3 years no interest this holiday season. Hell right now you can get a free Bluray player with TV purchase almost anywhere.

For $399 you can get a 80GB game console/Bluray player/media server/internet gateway. For a family looking to get a new piece of tech and save money, the PS3 is the best buy going.

iamkid @ Sep 5th 2008 2:53PM

hmm. ive actually thought they did a good job advertising. but now after seeing this, ive thought about it, and i realised i know so much about it because i follow video game news and im a hardcore sony fan. now i also realise that (many) parents probably wouldnt know the difference between the 2, except the price, and maybe that ps3 plays bluray, if they even KNOW what bluray is. at least sony is realising that they need to get on this, thats pretty awesome.

Brett from Atlanta @ Sep 5th 2008 3:05PM

They need to take the apple approach and have thrity second commericals of a guys standing there showing the average consumer all of the cool things the ps3 can do, hell they could even do a 360 guy in there too if they really want to rip of apple.

Aaron @ Sep 5th 2008 3:31PM

Sony of today reminds me a lot of Apple back in the 1980s. The Apple IIe was essentially king of the hill, much like the PS2 was last generation. Then IBM/MS came out with the cheaper, inferior, alternative. Apple was overconfident and ended up almost going bankrupt because they wrongly assumed the average consumer cares more about quality than price. This is just dead wrong, especially in America. American consumers are fickle, and will buy an inferior product even if they only save 50 cents.

Sony, wake up!! Pay attention to history so that you are not doomed to repeat it.

Lars @ Sep 5th 2008 5:36PM

Erm, that's not true. I've always had various computers since the early 80's. From Radio Shack, to Apple, to IBM, to Commodore, etc. I don't know where you heard your "facts" but they are way off.

From first-hand experience I can tell you that Apple was the overpriced/cheap hardware manufacturer while IBM was completely opposite. IBM offered upgradeable hardware, sturdy metal cases, and so on. I mean, hell, don't you even remember the Lisa? Apple even had in their manual that "if it stops working, lift it up a few inches and drop it on the table." Steve Jobs was so into cutting cost by using cheap plastic cases and no heatsinks that their early machines had a tendency to melt.

I'm not being a fanboy or anti-Apple here, this is just the way it was. I was even at the Us festival.

gaymerxbox360 @ Sep 5th 2008 3:45PM

why do they keep advertising a glowing red PS button the controller, when it fact it doesn't glow??

I've seen many ads that have this!

Devin @ Sep 5th 2008 4:10PM

Good point.

Manuel @ Sep 5th 2008 4:05PM

Sadly I think the Nintendo Wii offers the lowest value amongst the three consoles when you factor in features and price and yet it is the number one selling console worldwide.

Popfrogs @ Sep 5th 2008 4:43PM

The PS2 also competes pretty well with it worldwide with total sales well over 100 million by now.

The thing that most people don't get about the PS3, even on this blog, is that it's a worldwide console. All the Xbox numbers that get quoted are NPD stats from North American sales. The rest of the planet doesn't really care for it.

Conected87 @ Sep 5th 2008 4:16PM

Sony is probably going to see how the 360 sells in the upcoming months and if the 360 does better than they think they will probably be forced to make a decision about the PS3

ZeroCorpse @ Sep 5th 2008 4:22PM

I switched just recently from the 360 to the PS3 because first and foremost, I was ready to jump into getting a Blu-Ray player, and the PS3 is the best value in that regard. Add to it the web browser, media extender, and PS3 games, and you've got a good deal.

I found a MGS4 bundle on ebay, so I even got in on the PS2 compatibility and card readers. It's a shame that Sony didn't keep more of that 80GB model around, because it's worth the extra cash.

Finally, MS turned me off with bad customer service, their stupid "MS Points", and the need to pay for online play. I was also very underwhelmed by their lineup of XBLA games.

If Sony can get a PS3 on the market under $350 they'll be on the way to dominating the 360.

But a note to Sony: Customer service is important.

mrrellim @ Sep 5th 2008 4:31PM

Commercial highlight what a PS3 can do compared to the Wii.

http://www.youtube.com/watch?v=wkT_JbANatM

Whoppy @ Sep 5th 2008 5:30PM

You know the fat one takes it up the wrong'un.

Grunj @ Sep 5th 2008 5:38PM

This article is no surprise: in the past Sony has openly said they DON'T want to capitolize on the value of the PS3, especially in regards to it's Blu-Ray capabilities in comparison to other Blu-Ray players - they're taking a loss on SKU's (or rather they were, now they're making a very slight profit), and they don't recoup that anywhere near as much on Blu-Ray discs as they do on games. So to a certain extent, they don't want to market the value of the PS3 outside of gamer circles. If every Mom & Pop buys a PS3 because it plays Blu-Rays they don't stand to make much more money.

smoothsake @ Sep 5th 2008 6:11PM

A price drop, although always welcome by consumers, is almost always a desperate act by a manufacturer to push more volume on those on the cusp of making a purchase but are struggling to justify regular price. Lower price equals lower margins regardless of manufacturer efficiencies reaped. I see Sony's position strong. Profitability is king and they know they can hold their price level despite what the competition does. It will be key to market the value proposition. I like the idea of Sony "copying" the iPhone ads.

Darlaten @ Sep 5th 2008 7:36PM

Sony is correct when they say have to adjust their marketing strategy - quite frankly, I can't even recall in the last few months when I've seen an add on regular (not G4 tv) regarding the PS3. Tell the consumer what the features are - what can this device do? Promote a free online services to play games, download stuff, etc. Make it clear that it comes with wireless and other stuff without having to buy extras. Basically, educate the consumer on what the hell the device does.

JayD-1K @ Sep 7th 2008 7:29AM

i would like them to show a FAMILY playing the damn thing! show a family doing different things but, using the box. that would show it has something for every body.

jcboy @ Sep 5th 2008 8:24PM

the xbox is cheeper coz its poorly made and you have to fork out more money afterwards.
sony make quality products and ideas[yes, some hit and miss] but most good.
just remember both these corporate giants are out to make money and nothing but.
out of all my friends im the only one with a ps3, the rest -- xbox fanboys. none of them are on their first 1.
im still on the 60gb-rock on.
sony neen to market market market!!!
quality and value.

Mana Knight @ Sep 5th 2008 8:04PM

Those who say Sony should just cut the price to match, don't seem to understand a few things.

-Sony still takes a small hit on every PS3 they sell. WHY should they lower the price and lose more money when they've already lost around $3 billion thanks to PS3? Changing the HDD to 80GB barely changed the cost of the console. If you compare now from last year, the cost of 2.5" HDDs have reduced. I guarantee that an 80GB HDD cost the same (if not lower) than what a 40GB HDD cost last year. At the most, keeping a 40GB would have made the PS3 $10 cheaper, and that barely makes any difference. Using a DS3 instead of a SIXAXIS doesn't add much either to cost. Sony's goal is to more so break even on PS3 right now, then sell at a loss to sell more consoles.

-Right now in the U.S., things aren't what people think they are. Despite the Xbox 360 being cheaper, PS3 has been outselling it. The 20GB dropping to $300 couldn't outsell PS3 in the month of July. Most normal people won't just see a $200 console, they'll see 3 SKUs, with various prices, and just get confused and unsure what to buy (usually leaving a store with nothing). That's the entire reason 360 was struggling this year, because Sony stuck to one SKU (they should have never introduced the 160GB (Sony I mean).

-Sony just can't keep PS3 consoles in stores, and this is actually very true. I go to Wal-Mart, Target, etc. one day and notice they have 4 or more PS3 consoles in. I go back in two days and they are sold out (the new 80GB especially). For a while, I couldn't find a 40GB anywhere (only the MGS4 80GB). Right now, I see an MGS4 80GB at some stores, but rarely do I see an 80GB core because it sells out. As long as PS3 is constantly selling out, then I REALLY don't see a reason to cut the price. If 360 still can't outsell PS3 in September (or barely does), Sony has nothing to worry about. I'm not just talking about one city/area, I'm talking about many. PS3 consoles constantly sell out.

And some may wonder, why does Sony bundle more games/movies instead of drop the price? It's because by adding a game, the only cost you are technically paying is the cost of disc and packaging. Dropping the price can take a significant hit financially (especially if you are losing money per every console sold).

ZENegade @ Sep 5th 2008 10:36PM

I bet this is in direct response to the e-mail I sent SCEI the other day about marketing the hell out of LBP, eh, Andrew? hahaha

Immortal Technique PSN: johnnynumber5 @ Sep 5th 2008 10:59PM

If you look at the entry price of the 360 it is cheaper. But, if you look at the actual cost to make the 360 comparable to the PS3 it will cost a lot more money. In addition to that there is still no way to make a 360 play Blu-Ray movies.

Just look at this breakdown which is important IMO

360 Arcade $200
Wi-FI - $100
HDD Lets just say $100 for a 20 GB
Live 1 Year $50
A Game $60

With all of that you are over $500. Obviously no one would buy the Arcade in that situation. However, the entry level price is really just to get you sucked in. The 360 is like a snap on machine. There are some other things like the external power brick and controllers without internal batteries that I don't like.

Not to mention the thing has a tendency to break down on a regular basis. I don't even know if it comes with an HDMi cable or HDMi built in. I know my 360 doesn't have HDMi.

I know the new PS3 SKUs don't have full BC -- if at all. But thats one of things that drew me to the PS3 was the 60 GB fully BC version. The 360 has software emulation in some models (if not all).

They can both stream content and divx stuff which is a good thing. You have Blu-Ray in there as another big advantage and is almost a bonus on top of all the other benefits. The memory card reader's have worked great for me as well. Keyboard and mouse, web browsing & free online play all add to the overwhelming advantages of the PS3.

Its not even close as far as the feature set. I guess you could say that the 360 has more games, more people on Live, better online service and maybe even better games.

I just think the PS3 is the superior machine. I forgot to mention Home, Life with PS, Folding@Home, PSP Remote Play, Free Themes, Printer support & whatever else I am forgetting.

I did not intend this to be long winded but the features kept coming out of me like I was speaking in tongues worshiping at the altar of Sony.

Its a better machine. I am not sure if most people care though. Unfortunately.

HalcyonGT @ Sep 6th 2008 1:39AM

Its absolutely amazing to see Sony STILL out of touch with its customer base...after all this time.

The PS3 is less than half the success it could be because Sony refuses to believe that they have any compeitition out there. However, a U.S. economy in recession heading into the holiday season will surely shake up some things with Sony's top brass.

I'm not saying a price cut is in order...but for God's sake get some system selling games out there! Maybe then you could begin to convince a budget conscious public to drop $400+ on a game console...that also happens to provide Blu-Ray playback for an HDTV that only a small number of the public actually have.

Demonstrate an undeniable gameplay machine better than the rest and you JUST might be able to push a few units out the door. Stop waving around tech numbers and expecting people to drool over how supposedly "powerful" your machine is. Software Sony...where is the software?

Dom @ Sep 6th 2008 9:52PM

Can you imagine how many consoles they'd sale if the picture posted was a bundle. I remember when the ps3 first came out and you could get something similar, console, 2 controllers, game, and blu-ray all for about 2000 dollars starting bid on ebay. But we've come further than that. All Sony has to do to to win is make an unofficial web page with all the stats and comparing consoles, publish it and pay for it to be ranked high in the search engines and people would read it and make a wise choice. Sony doesn't realize that other people just don't buy things from a company and they like to hear other opinions from other sites about what's better and who's who from somewhere where all people do is bullshit because that's what people buy these days. It's the truth and think about it. Last time you were going to make a big purchase i bet you read the customer reviews. you knew that person probably only owned the item for less than a month but what another human being actually had to say was very compelling and moving toward a better decision.