Microsoft expects PS3 price cut soon, while Reeves reiterates profit mantra
This time, it's not an analyst that's predicting a PS3 price drop. It's the competition. Microsoft's outspoken Aaron Greenberg has been celebrating the tremendous success of Xbox 360, which currently leads PS3 by more than 8 million units worldwide. Obviously, part of the 360's success comes from its competitive price. In America, the cheapest 360 is half the price of the cheapest PS3. However, Greenberg doesn't believe the price difference to be as substantial in the future. "We absolutely expect the PS3 price drop to happen in the next couple of months. We're frankly surprised it's taken this long. ... I would expect they'd have to move on price, sooner than later, for sure."
Certainly, a lower priced PS3 would have helped the install base during an economically depressed holiday season. However, SCEE's Reeves said very frankly on the PlayStation site that "the most important thing for us as a company in the very short term is for us to start making money. This is a pledge that was made last March and is something that we are still very much on target to achieve."
With the cost of manufacturing a PS3 plummeting, it won't be long until PS3 units can be sold at a profit. "Once we have achieved this, I think it will be a very exciting time for PlayStation. Once we have alleviated that specific pressure, we can move forward at a rate of knots," Reeves promised.
Certainly, a lower priced PS3 would have helped the install base during an economically depressed holiday season. However, SCEE's Reeves said very frankly on the PlayStation site that "the most important thing for us as a company in the very short term is for us to start making money. This is a pledge that was made last March and is something that we are still very much on target to achieve."
With the cost of manufacturing a PS3 plummeting, it won't be long until PS3 units can be sold at a profit. "Once we have achieved this, I think it will be a very exciting time for PlayStation. Once we have alleviated that specific pressure, we can move forward at a rate of knots," Reeves promised.









Reader Comments (Page 1 of 2)
Andrew Yoon @ Jan 6th 2009 10:29AM
That comment has been deleted. Consider it a warning, because one more comment like that leads to a ban.
ithilis @ Jan 6th 2009 10:26AM
Wow. Congrats on being a senseless bigot.
RPMd70 @ Jan 6th 2009 3:58PM
aww... what did the "asshat" say? andrew deleted it already.. hah.
deaftly @ Jan 6th 2009 10:27AM
You = Asshat
Nuff said.
ryan @ Jan 6th 2009 10:28AM
As far as I'm concerned, the price is the only real difference between the two consoles. You can make price/value lists all you want, but I already bought one next gen console and can't justify getting two...atm.
PS3's titles next year will most likely change this. A price cut would be nice to sweeten the deal, but the amount of awesome games I can't find on the 360 is where it's at.
Ghaleon @ Jan 6th 2009 11:07AM
Is this a post from Jan 2008? MS has its own exclusives, by now a couple titles won't bring Sony back into things w/o price changes.
ryan @ Jan 6th 2009 11:33AM
Each has their own exclusives sure, but there was only like 4 games on the PS3 last year that I 'might' have considered.
This year is a different story. Although we have no idea what MS will bring beyond 2 Halo games, Star Ocean, Mass Effect 2 and some games that are hitting PC as well.
Also this is just a personal opinion. I don't manage what Sony should and shouldn't do.
ryan @ Jan 6th 2009 11:33AM
Each has their own exclusives sure, but there was only like 4 games on the PS3 last year that I 'might' have considered.
This year is a different story. Although we have no idea what MS will bring beyond 2 Halo games, Star Ocean, Mass Effect 2 and some games that are hitting PC as well.
Also this is just a personal opinion. I don't manage what Sony should and shouldn't do. If the software difference is substantial, then I'll gladly pay whatever.
ryan @ Jan 6th 2009 11:38AM
"Ugh, what is up with this comment system?"
^
*could very well be a typical comment I'd have said from January 2008*
ryan @ Jan 6th 2009 11:55AM
Did I mention that I'm talking about the software lineup for THIS year that I am personally interested in? Oh yes! I think I did!
Is that enough for me to consider buying an additional console if the games are there that interest me? Oh yes! I think it is!
Why this sudden urge to jump on me all of a sudden?
ryan @ Jan 6th 2009 10:28AM
Dan Rabot- Nazi?
Am I doing this right?
Eric E @ Jan 6th 2009 10:29AM
xbox is not half price, you can't even save your game w/ an 'arcade'.
shell out $50 for a 1/2GB memory unit or $100 for the HDD.
anyone w/ a brain would get the $300 console. or the $100 HDD + $200 console.
and if you want WiFi?, your the same price as a ps3 and you pay $50/year to play online and don't have bluRay, web browser, etc.
hunter2223 @ Jan 6th 2009 10:34AM
Not correct.
The Arcade comes with a memory card, or on the newer versions it has an internal 256k memory for saves.
And if they're still doing it, an arcade owner can get a 20 gig HDD for $20.
facts... They're Fantastic!
adolson @ Jan 6th 2009 10:42AM
The general game console buying public doesn't know the real differences between the two consoles - the only one they see is the price tag, and considering that the 360 Arcade is bundled with two games that these same people probably want... Well, you know. That kinda leads to sales.
Eric E @ Jan 6th 2009 11:05AM
Sorry, the Core had no memory. The Arcade has 256 but half of that is used for the dashboard update.
Thats why they offered a discounted HDD. but only for the Core units that came w/ no memory option.
[src:http://lastshepard.wordpress.com/2008/10/14/microsofts-nxe-storage-solution-free-512mb-memory-card-or-20-for-20gb-hdd/]
So if you get the arcade, you have 128mb that might last a game update and a couple saves.....
You're going to need a HDD or pay out the butt for memory units. Thats was my point.
deaftly @ Jan 6th 2009 11:07AM
Way to fail Eric E!
Hife @ Jan 6th 2009 11:58AM
Eric E,
The new Arcades actually come with 256 internal for the NXE, plus a 256 memory card.
I still think you made a valid point though.
I saw how crestfallen my little brother looked when he realized he got the Arcade version for Xmas. He spent $100 on the starter pack as soon as he could scrounge together the money.
Eric E @ Jan 6th 2009 12:20PM
Hife,
not according to this sister site, its just internal now.
http://xbox.joystiq.com/2008/12/02/microsoft-confirms-256mb-internal-storage-in-xbox-360-arcade-uni/2#comments
and "way to contribute deaftly!"
And yeah if you want demos, movies/tv shows, Add-ons, dwnl games, updates! Then you Need a HDD. I guess there are some people out there who are fine just saving games and never connect it to the internet, but they aren't getting half of what they payed for.
Get the $300 one if you must get a 360, it has headset, ethernet, hd/sd cable. (and holiday pack has 2 real games)
and the 60gb HDD you'll end up paying for anyway. That is my first Point.
secondly, its only $100 off from ps3, or the same if you want wireless.
thirdly, you don't get as much, and still pay $50/year if you want to play online.
Hife @ Jan 6th 2009 1:03PM
Eric E,
"way to contribute deaftly!"?
You're insulting me??? I was just trying to help clarify the situation with what I have seen with my own eyes since there seems to be some confusion. Whatever 360fanboy says, my brother's has 256 internal and it came with a 256 card as well.
I am no 360 fanboy. I have a PS3 and only a PS3, with no desire whatsoever to get a 360. I tease my brother every day with all the ways that my PS3 is better than his Xbox.
AltCtrlPwn @ Jan 6th 2009 1:25PM
"Eric E,
"way to contribute deaftly!"?
You're insulting me??? "
See the guy with the kool aid avatar, whose comment is faded out? Read his name ;-)
Hife @ Jan 6th 2009 1:31PM
Ha, thanks AltCtrlPwn, and sorry Eric. I'm always a little too ready to get defensive when discussing PS3 v. 360 matters.
Eric E @ Jan 6th 2009 1:38PM
ctrlAltpwn is right, i was referring to the man named deftly. I do appreciate your comment and support and don't mean to insult anyone, even deaftly.
this is always a heated debate but i cant see any way a 360 is a better console for the price. its either stripped of everything and cheap, or comparable features(still not as good) and the same (or more)$.
However, if you love halo, fable, Gears and don't have a PC. Play online and all your friends have 360's then yes 360 is your better choice.
It just upsets me when avg consumers say they're getting a 360 cause its half the price but end up paying an extra $250 for headset, HDD, Wifi, Gold Memberships b/c they don't know anybetter.
Vincent @ Jan 6th 2009 8:18PM
I say Sony should make a new "retarded masses" pack. Only one usb, no wifi, 10gb HDD (or not even that, just some cheap flash drive), no games, no blu-ray player (just the ability to play blu-ray games). Maybe no controller either. Sell for US$150,00 and voi la!
I'm actually serious. It's unbelievable how people fall for the trap that is the "Arcade" pack.
Eric E @ Jan 7th 2009 9:23AM
you're right, thats basically what arcade is, don't even include a HDD at all, buy your own or find an old laptop w/ sata drive.
special firmware that just plays games they can pay/upgrade later.
no cables and controllers should make it $250 easy.
Jerses @ Jan 6th 2009 10:31AM
"Obviously, part of the 360's success comes from..."
warranty over the RROD. That gives us like triple the numbers in units sold.
Arnon @ Jan 6th 2009 5:45PM
That didn't even make sense.. if you have a warranty on the 360, you don't buy a new one, you send it in, and they replace the motherboard on the console.
jerses @ Jan 6th 2009 5:56PM
No, youre not buying a new one. But maybe Microsoft add that returned console as a new console...i mean its a new console to them.
Also i have a 360 and it have red ringed me 3 times... i even marked the console and its not the same ( first one i burned a corner, sencond time i scratched with a cutter,etc) and never came back. The front face plate is the same but not the whole console.
Tyler @ Jan 6th 2009 7:00PM
Also, people buy "Back up consoles" for RRoD purpouses. (Insane I know!) Both of my cousins Xbox's just RRoD, one managed to take it apart and fix it... the other is buying A NEW XBOX!!!! So... Ya... RRoD is still messing up the amount of working consoles sold. I never thought the easiest way to distinguish a console, other than name, would be a fatal error (RRoD)...
My SEGA still works perfect... but my Xbox did not (sold it). No excuse!!
hunter2223 @ Jan 6th 2009 10:32AM
I've got an odd little psychological block about spending $400 or more on a Game Console... While I did it for my 360, I keep getting the sheckles in my pocket but can't pull the trigger on a PS3...
Hopefully they'll bring the price to the mid $300's... It's easier for my tiny little brain to get around that price point. And with some of the excelent PS3 exclusives last year, and the ones coming out for the next 2... well... I'm in once the price is right :)
Jerses @ Jan 6th 2009 10:45AM
No! no! the price cant go $300... the LOWEST they can get is $360
hunter2223 @ Jan 6th 2009 10:48AM
MID 300's
That's $340-$360 in my book...
Daniel @ Jan 6th 2009 11:41AM
Mid $300? Like this? http://www.techbargains.com/news_displayItem.cfm/148274
Eric E @ Jan 6th 2009 1:43PM
$250 i believe w/ a PS credit card.
reson8er @ Jan 6th 2009 10:38AM
Since when do we care what microsoft thinks?
Mo @ Jan 6th 2009 11:17AM
LMFAO my thoughts EXACTLY!
brettjr @ Jan 6th 2009 10:42AM
No, I agree with Sony completely. It's time to stop the whole gaming war and focus on making a profit. Dropping the price would be nice if it would help them move into second or first place which would create more of a positive brand image but the truth is Wii and the 360 is a bit too far for them to catch up.
It may be fun for you guys to go, "The PS3 sold more units then the 360 worldwide! hahaha!" But for Sony unless that's making a profit it's just more bad news. They just need to keep their current fanbase happy by getting those great games out for them to buy and start making money on those 500,000 units they're selling a month. Profit is more important now then winning a fake war especially if they want to be apart of the next gen of gaming.
kentuckyfried @ Jan 6th 2009 3:28PM
It's really risky to do that, considering that they're still losing money on production costs (current cost to manufacture the ps3 is roughly $450).
They're still losing money, but not nearly as much as when the ps3 first debuted.
Seems like most average consumers are a little bit too fixated on the pricetag without really seeing what comes with it.
Maulok @ Jan 6th 2009 10:45AM
Sounds tense at Sony right now. I worry as a PS3 fanatic when I don't see anything major in next six months - big name exclusives, new features, or a blu-ray resurgence - that will bring people. LBP, Resistance, Motorstorm, and MGS4 are out; Home has fallen flat; and Blu Ray players are available with all the features at half the price.
If you ask me, their goal was probably very reliant upon them turning a profit this holiday. They are in a sticky and stressful situation where something has to give within the next six months, or things might start to unravel.
On the market side, this holiday is definitive proof they can no longer afford to keep the current price point when both of their competitors are almost half the price. On the corporate side, they can't afford to drop the price and not turn a profit given the economy and Sony's other financial problems. It's a catch 22, and I don't envy those making the decisions.
magicfett @ Jan 6th 2009 11:20AM
What are you talking about? Nothing major in six months have you been living under a rock?
IHateBioshock @ Jan 6th 2009 10:51AM
One of the most underhand, and arrogant statements I've read from MS in some time. This is just trying to make Sony look bad rather than 'predicting' anything. And as others have already pointed out, it's the MS console that is in fact more expensive all in. (Not to mention an unrelibale POS with far less features).
And yes, the only reason I finally picked up a PS3 was because I was 'sick' of my 360s dying.
Hife @ Jan 6th 2009 12:07PM
Very perceptive. I agree.
deaftly @ Jan 6th 2009 2:00PM
You clearly have great taste with a nickname like that.
IHateBioshock @ Jan 6th 2009 10:51AM
This isn't a prediction, it's spoil tatics from MS. If they pointed out the apples to oranges comparison (of the 'cheapest' systems;i.e no wifi,hd etc) then fair enough.
This seems to be attempting to make PS3 seem even MORE overprice currently, either that or making every day they don't cut price be a day that any possible buyers won't buy. Shame MS are using Apple tatics here.
digiboi @ Jan 6th 2009 10:54AM
Here's a clue for Sony - if you don't move units, developers are going to stop developing for your platform. If they stop developing for your platform - you don't get licenses fees AND there will be fewer titles to attract new purchases when manufacturing costs come down and you can finally lower the cost. The console is the loss leader and changing that paradigm is impossible unless you already have 80% market share to define the new rules. Sony gets the head up arse award in video game consoles.
IHateBioshock @ Jan 6th 2009 11:05AM
But having played blurays, psn titles, motorstorm(1/2), Burnout Paradise, Uncharted etc I'm more than happy having it over an 360. All I miss on that are gears2 and dead rising (the rest I can get on PC like Viva, mass effect etc)
garnsr @ Jan 6th 2009 11:06AM
You can't make much profit on something you can't sell. Systems that are too expensive, sitting on shelves, won't make them any money. I bought my PS2 compatible 80 gig for $500, and think it's money well-spent, but the price needs to come down now, the way it does for all other technology.
Topher08 @ Jan 6th 2009 11:17AM
I do have to say that Sony dropped the ball this holiday season. Some form or price cut, even a temporary one during the holiday season, would have helped sales. It would have also given games like LBP and Resistance 2 an up because they would most likely be the first games people bought with a new system.
I can understand that Sony doesn't want to lose a lot of money on selling the PS3, but they are starting to fight an identity crisis where the PS3 is underperforming compared to two companies they used to dominate over, and the arrogance of assuming a strong line up of games will boost console sales is not working (2008 was an excellent year for PS3 games, yet the PS3 undersold this holiday).
That combined with the global recession, people are just not interested in spending $400+ for a game console, so a $50 price cut over the holidays would have been a big move.
What bugged me the most was on Boxing Day after Christmas seeing an Xbox360 Pro bundle with 4 games and a couple of movies selling for $259 CDN and right next to it a PS3 with only the Blu-ray remote bundled with it selling for the same $399 price. I ALMOST bought the Xbox360 just because the price was amazing.
Sony is supposed to have a smaller (cheaper to make) Cell processors, cheaper Blu-ray drives, and the fall of HDD prices and memory costs along with other cost savings features available for the PS3, its time they used them, drop the price, and get back into the game.
maxpontiac @ Jan 6th 2009 11:18AM
M$ can pat itself on the back all they want.
Hopefully they will do it hard enough to jar the memory of the PS3 outselling it for it a majority of 2008 when the prices were more competitive.
200 dollars in this economy is alot of money, and it's obvious to ANYONE with common sense that the 360's low price point is the factor in it's success in November and December.
Put the PS3 and the 360 at the same price point, and then see what happens..
magicfett @ Jan 6th 2009 11:24AM
It doesn't make sense for Sony to proclaim a price drop in the near future that keeps people from buying units now. M$ knows it's coming so they throw this out there to delay the inevitable as long as possible maybe them saying this will make people hold off long enough and spend money on something else in the meantime.
Point is he better hope they don't because price right now is the only thing I see keeping M$ afloat in the coming months especially once everyone gets a taste of KZ2 there isn't a shooter on the market that can touch it.
Sai @ Jan 6th 2009 11:44AM
Don't forget, there are a LOT Of PS3 exclusives coming out for 2009, and don't forget about Final Fantasy Versus XIII being PS3 exclusive still. FFXIII will also most likely span multiple discs on 360 but be on one Blu Ray disc.
Though graphics can be debatable, though its pretty much set that 360 has better anti-aliasing and PS3 having better everything else, one thing that is unrefutable is the fact that the PS3 is a Blu Ray player and it has the smallest failure rate of any of the other consoles.