Sony executive: No PS3 price cut as “we have a business to run”
Despite continued and unadulterated calls for Sony to cut the price of the PS3, it’s not happening. But while denials about price cuts have been forthcoming, the reasons behind the decision haven’t really been clear. Until now.
Now obviously it’s not hard to imagine why Sony doesn’t want to cut the price. Each PS3 sold already costs the company money and Sony doesn’t want to inflict even more losses on itself by choice. But that’s short-term thinking if ever I heard it.
The Xbox price cuts announced by Microsoft at the beginning of September have helped shift more units of the console ever since. Not only in the States either, but also in Europe and Japan, the country that until now, seemed completely against the product.
The PS3 has continued to sell at around the same levels since then, so its competitors cutting their prices hasn’t actually harmed it. But a price cut for the system would be guaranteed to shift units and persuade parents around the world to finally buy their little cherubs the console they want for Christmas.
But Sony is having none of it, and here, from the horse’s mouth, is why. Speaking to VideoGamer.com at the Gamer 3.0 conference in London on Monday, SCEE managing director Ray Maguire said:
The pressure comes from the consumers obviously and so therefore there’s always pressure on price, but you know we have a business to run, and we have to make sure we’re doing the right thing for the shareholders as well.
At the moment there’s a marketplace for PS3 and I think for this particular Christmas, with the kind of quality of games we’re seeing coming out this Christmas, I don’t think the price of the console is going to be an issue at all.
I think that is absolute rubbish. Price has always played a part in console sales, otherwise the Wii and Xbox 360 wouldn’t currently be vying for the position of lowest price games machine. Sure, the quality of games available for each system has a big impact on demand, but if a console is priced too highly for mainstream consumers, no game will see it flying off shop shelves.
It’s also ludicrous to talk about Sony being a business. Yes, it is a business, but then so is Nintendo and Microsoft. The difference is both of those have realized that consumers aren’t interested in spending huge amounts of money on games consoles and there is a choice, they’ll pick the cheaper alternative.
The PS3 will sell in fair enough quantities this Christmas but it could have sold in huge quantities had Sony just taken the plunge and cut the price. We’re now in an economic recession and most people are tightening their belts for a long stint of budgeting. Does Sony really think it’ll be able to sell a $400 to $500 console in these difficult times?
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19 Responses to “Sony executive: No PS3 price cut as “we have a business to run””
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October 28th, 2008
This is common sense we knew this already. Fix the new comet system. When I log in and want to leave a comment i have to refresh a lot switch topics and comeback. Once i sign in it just saids Logged in for awhile.
October 28th, 2008
This is common sense we knew this already. Fix the new coment system. When I log in and want to leave a comment i have to refresh a lot switch topics and comeback. Once i sign in it just saids Logged in for awhile.
October 28th, 2008
dito
October 28th, 2008
Poor Ivan, confused with the login system….
$$$ was the early deciding factor when I bought my system. Regardless of how powerful a machine is, $1000 (the price of a PS3 when it launched here) was way too much for a games machine (I didn’t have the lcd tv back then, so blu-ray would have been useless). If the PS3 was the same price as the 360, I may have been swayed, but fortunately that wasn’t the case.
Bottom line is that Sony will fall even further behind without dropping the price of the console.
October 28th, 2008
Linking to your posts about economic downturn doesn’t make you an economist Dave.
And repeatedly posting about wanting Sony to drop the price isn’t going to drop the price. Whine all you want, you don’t set the price. I want BMW to cut their price too but me whining they cost too much isn’t going to bring one in buying range.
October 28th, 2008
given the fact I work in the financial industry the key word is shareholders. they want their money and shareholders come first before anything else.
October 28th, 2008
I think Sony is right, they can’t just give there consoles away, and if the consumer already knows Sony is losing money then they should be happy to pay the already discounted price. you also pay for what you get, Wii’s graphic suck, and xbox, has its issues
“no game will see it flying off shop shelves.” thats funny ps3 games are selling better, even according to this site
October 29th, 2008
Branden,
Put away those rose coloured glasses. The customer doesn’t give a crap that Sony is losing money and that they’re already paying a ‘discounted’ price. That sort of justification is assinine.
October 29th, 2008
Hmm…the 360 version of Fallout 3 is better than the PS3 version according to Gamespot.
Also, the PS3 version of Bioshock is running at a lower resolution than the 360 version. They had a year to work on a PS3 version, that’s inexcusable.
But the question has to be asked – It’s been out for 2 years now, isn’t that enough time for developers to get their heads around it’s ‘power’? Or is it that hard to program for still?
October 29th, 2008
Harry, Devs are lazy, simple as.
With games like Metal gear solid 4, Heavy Rain and heavenly sword the graphical ability of the PS3 has been shown, so the question is why it isn’t being shown on multiplat/ports? Devs can’t be arsed to make things even.
October 29th, 2008
Let’s get this straight first – supposed greater profits do not mean more games sold, we have no idea how Sony’s deal with the games developer compares to Microsoft’s. Ofr all we know Sony might be heavily subsidising 3rd party development and offering lower royalty fees to entice more developers to overcome the increase in programming problems for the PS3. This would explain why Sony’s games division have such abysmal profits.
As for dropping the price, if they are only posting $50mil profits, then selling 1mil PS3 with a $50 discount would wipeout all those profits. Sony won’t drop the price because they can’t. Simple.
October 29th, 2008
As time goes on the cost of making the consoles gets cheaper. That is why MS is making a profit on hardware and still dropping prises.
Sony’s manufacturing costs must be dropping by now.
If not then Sony is in big trouble. Also dropping the price will sell more consoles as well as sell more games and get developers to make more and better games for the PS3. So in short term they will take a small hit but it will pay off rather quickly. I for one would buy one as well as a few games.
So anyone that says the price is not hurting sales then I say you stupid because I am proof of that. And if they make me wait to long I may say the hell with it and get a 360.
October 29th, 2008
Braden,
The only reason Sony is finally selling software is because PS3 has been in a famine since day 1. What do you expect when the famine is over. people are going eat.
October 29th, 2008
Since when do we know in advance of a price drop anyway? Its in Sony’s and MS’s best interest to keep quiet about these things until they happen as to not kill sales that would have happened prior to a price drop. For all we know they may drop the price the second week of Nov and just surprise everyone.
When we do know it’s speculation at best, and not confirmed until a Best buy/Walmart flier confirms it before the fact!
Its a tough call. On one hand, Sony has some damn good exclusives coming out now till…….unforeseen, and may be relying on that to sell the console at a high price and not completely kill the division.
On the other, they would sell more consoles at a loss and make up for it with software, while simultaneously undercutting all other blu ray players on the market and pissing off all other blu ray hardware manufacturers.
October 29th, 2008
Well I don’t know what Sony will do but they have in the past said were not droping the price and then they did. So Pranctoast might be right.
October 29th, 2008
Well I don’t know what Sony will do but they have in the past said were not droping the price and then they did. So Pranctoast might be right.
October 29th, 2008
they won’t drop it. they’re already bleeeding money from the ps3.. why make it worse.
Even stringer stated the ps3 will NOT be making a profit in his “lifetime”….
go ahead ps3 fanboys, tell us all how you know more than Stringer… lol….
October 29th, 2008
hahaha @ kev
October 29th, 2008
Personally Kev,
I don’t know. I can just see the PS3 dropping price prior to launching home or something. They Japs there in it for the fight. They cannot be dishonoured. How could you let a Christmas season go by a watch as 360′s and Wii’s fly off the shelf. We’re in a recession no one is going to buy the more expensive console. Even HDTV are coming down in price because otherwise they will just sit on the shelf. Remember this is gift giving season no one is going to buy a PS3 at those prices when there are cheaper options.