Sony admits PS3 price is harming sales but doesn’t really care
Sony is currently third in the home console market thanks to the PS3 consistently being outsold by the Xbox 360 and Wii. Why? It’s a question that has many answers but the most obvious and telling would surely be to do with the price of the damn thing. Sony has now admitted price is a factor in contributing to its current predicament but doesn’t really care.
The PS3 is too expensive. We all know this, regardless of whether we’re PS3, Xbox 360, or Wii fans. I think a PS3 price cut has been overdue for about six months now, with Sony at least needing to match Microsoft’s strategy with the Xbox 360. But it hasn’t happened, and despite intense speculation about a price cut on its way in April nothing has been announced and nothing is guaranteed.
The problem is that while the recession is now affecting people’s purchasing decisions, that same economic downturn is also affecting Sony’s bottom line. In an interview with The Guardian, David Reeves, president of SCEE (Sony Computer Entertainment Europe) explains why the decision to stick rather than twist has been taken.
We simply have to suffer a little, go down in market share and mind-share. It’s like Ali v Foreman – go eight or nine rounds and let him punch himself out. We’re still standing, we’re still profitable and there’s a lot of fight in us. I don’t say we will land a knockout blow, but we’re there and we’re fighting.
If we’d cut the price, lost another billion dollars, we might have had a huge Christmas but it would have been followed by a huge loss. The company could have thought: ‘Hmm, I’m not sure I want to be in this business at all.’ But we’ve shown Sony this is still a good business to have.
Admittedly, in the current climate, more people will go for the lower price, but we still make a profit and that is our objective.
Reeves’ statement stinks of common sense. Yes, I find it hard to believe as well but it seems as though Sony is in it for the long-term and is unwilling to risk that in order to fulfill a short-term price cut to fuel sales. That 10-year lifespan for the PS3 seems very optimistic at this stage but we’re only two years in and no one knows what will happen in the next eight years.
I’d love to see the PS3 get a price cut at this stage of proceedings to truly get a battle royale going between the Sony console and its main rival, the Xbox 360. Both consoles are brilliant, and capable of so much more, but the Playstation 3 is being stunted by its high price. That is definitely helping the Xbox 360, and to a lesser extent, the Wii.
Having said that, I’d rather see Sony still in the market in a decade’s time and for that to happen, it looks as though the company is having to tighten its belt quite considerably at the present time. I still think an April price cut is inevitable, but it may not be as considerable as we are hoping.
Personally, I think Sony is going to rely less on price cuts and more on the quality of games being released. Whether exclusive IPs such as Killzone 2, Heavy Rain, Uncharted 2, and God of War 3 are enough to tempt people into shelling out the extra cash remains to be seen.
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18 Responses to “Sony admits PS3 price is harming sales but doesn’t really care”
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February 6th, 2009
the list you wrote in the end… guess what… normal people dont care about them… cus they dont know shit about them…
ahh Sony Marketing… what has happened to thou??
I remember the old PS2 ads in Australia… “PS2 THE THIRD PLACE” I didnt understand what THE THIRD PLACE was… but I still wanted a PS2…
February 6th, 2009
It’s a bit stupid to say Sony doesn’t care Dave, of course they care.
Ironically though, the recession could help Sony in the very long term, because I doubt Sony want to invest $3-5 billion on a new console launch anytime soon, and I doubt the public would want to buy a new console anyway given that this recession is going to last some years.
Over time, the PS3 will become cheaper.
I bet it’s the same at MS; they don’t want to invest in a new console either.
Robbie Bach said himself that this generation will be the longest, and whatever harry, CAD, kev, et al may say, the fact is that MS have yet to prove themselves for supporting hardware longer than five years.
That will be the interesting thing to watch as time goes on this gen.
February 7th, 2009
okay…
BREAKING NEWS!!!
Mass Effect 2 multiplatform and new Battlefield Bad Company gets a sequel… courtesy of Joystiq podcast
February 7th, 2009
How is Sony being “consistently being outsold by the Xbox 360″ when the PS3 has sold 20 million unit faster than the 360. Not to bash you or anything Dave but it would help to check your calms agianst hard numbers before you talk things like that brha.Just because 360 kids PS3 butt in one region, doesn’t mean it does worldwide.
That “HUGE” 8 million lead is only on acount of the 1 YEAR HEAD START that MS had with the 360. They should really be much much further ahead, with all the money they pend on ads and all, and ALL those price drops to keep such a tiny lead on 3rd place. Where does it all pay off?
February 7th, 2009
WE HAVE HAD THIS CONVERSATION BEFORE!!!
we all know some of us are going to say some really meaningful and classy shit… while others make “what what in the butt” jokes… and no one comes to a conclusion..
lets move on people…
February 7th, 2009
So,what do you want to talk about then darkwhitehair? You want to comment on things other than the article that YOU ARE COMMENTING ON! Speak on it than my man.The super bowl. How bout a nice convo on Geo-politics then brha. Global warming, how bout some recession talk nig. I got it, 9/11, lets run that back.
February 7th, 2009
yes… I think Global Warming was “invented” by the liberal democrats… those guys and the muslim terrorists are working togather to turn this god blessed greatest nation in the world into a socialist hell filled with colored people…
you can mock me all you want… but you cant stop the truth…
February 7th, 2009
lol
February 7th, 2009
“That ‘HUGE’ 8 million lead is only on acount of the 1 YEAR HEAD START that MS had with the 360. They should really be much much further ahead…”
Wait a sec… I thought Sony had six years console experience (let alone hardware experience) on them in the industry, “owned” the market last gen, and had predicted they would wipe the floors with the competition by now with PS3?
A console hardware and software lead every year is still outselling the competition. The point of launching ahead of the competition and advertising extensively is to gain market share before they do. Microsoft accomplished this and Sony has yet to take it back. The Wii has taken (created) even more (even if it is a supplement/afterthought to hardcore gamers). If you start later than the competition, an assumed goal is to get back in the lead (at least ahead of the guy in front of you – you know, that guy you said didn’t have a chance before the race started).
If instead you accept third for the race (at least for the foreseeable future), a good thing might be to say, “well, at least I set a PR”… better might be to say, “I’m not faster than that guy right now, but I can outrun him”. Hopefully for Sony the race winds up being a marathon, and not a sprint. Even if they do wind up coming in third and not second (I don’t think anybody expects Microsoft or Sony to overtake Nintendo at this point), another strategy might be to say, “I won’t win this race, but I can learn from it, save my energy, and start planning for the next.”
Another take is that Wii wins by creating more market overall (and really wins the race – in total sales at least), Microsoft wins the sprint, and Sony wins the marathon. That could see all selling more than they did in the previous gen (though Sony would have to milk that ten years for all it’s worth to beat PS2, they could do it with no one remaining for competition – would Ninty “let” that happen by moving on to their “next gen”/present gen console earlier?), and all of them profiting.
Personally, I am happy with both Sony and Microsoft’s performance, and benefit from it as well. I also know I will be more than willing to shell out the dough for a next gen (full BC w/achievements/trophies/gamerscore/ranking) console by late 2010.
February 7th, 2009
I couldn’t care less the ps3 is in third place. As long as they continue to have the better games I’m OK.
February 7th, 2009
“I won’t win this race, but I can learn from it, save my energy, and start planning for the next.”
LOL You would know all about that Carl!
February 7th, 2009
Spot on phranc.
As long as I get to play God Of War 3, then I don’t care where Sony is. Incidentally, I can’t wait for th God Of War 3 news next week.
Going forward Sony should do to GOW3 etc what they have done to KZ2, it seems to have worked pretty well…1.1 million pre-orders in Europe alone for KZ2…God Of War deserves numbers like this.
February 7th, 2009
Tell me why MS can only “bearly” stay ahead of a competitor that has for the most part been “Twice” as expensive with far lets adverising men?
MS has givin it thier best shot already. Halo 3, Gears 1 and 2, multi platform GTA. That was IT. That IS it. That got nothing left, all burned up in the Sprint as you called it CarlB. No they have to resort to bullshit DLC. FUCK THAT SHIT!
You guys hear about MS want to go more casual in 09. Yeah, that was so for Xbox hardcore fan elite. Hopefuly they don’t go the way of you boys over at the N. 360 has been a pretty good system so far and I would hate to see it get F-ed up.
But seriously, FUCK DCL!
February 7th, 2009
wow a simple article just to let ppl know something
fanboys of 360 & ps3 fighting over stupid ass shit
u bought a console to play games not bitch about the console wars or which one is better
& btw if theyre so good consoles y are they having their asses handed to them by the Wii?
stop fussing & pwn some n00bs fanboys
February 7th, 2009
well said sir.
February 8th, 2009
Thanks Con, I appreciate the complement.
I don’t know Juice, but whatever it is, it seems to be working for Microsoft to improve their position from last gen significantly. Having a year head start was a big factor, combined with better advertising, almost twice as many highly rated games in most genres, easier initial development, prior experience with XBox Live, achievements/gamerscore from the start, better backwards compatibility, international competition games, and more third party exclusives, even if some are only timed. I believe PS3 fans were saying similar things about MS being washed up last year and the year prior and the year prior, maybe this year it will be true… only time will tell. Fortunately there is more than enough to play on both consoles, no matter who “barely” leads by several millions of console sales.
“bullshit DLC”… the PS3 has no DLC?
As far as the “casual” portion of your argument, I do enjoy having Rock Band, Guitar Hero, Geometry Wars, and several other “casual” games on my console… don’t you?
“FUCK DLC”… last time I checked, there was some pretty good DLC out there, even for stand alone games, and seriously, do you really think discs are the wave of the future? DLC is an inevitable evolution, and one that will have it’s market with similar rules… sometimes for the good, sometimes for the bad.
DXmaster,
Thanks for the enlightenment, but as long as there are separate products people will (and should) continue to think and talk about their differences. I tend to look at the pros and cons with each system and like to discuss them and like to discuss them with others when I am not playing games, and when you let others know about them, they begin to demand the pros if it is important to them (ex: trophies/ranking). That kind of discussion can improve upon what already exists.
To answer your question about the Wii, it has created more market share than it has taken by appealing to people who were largely put off by videogames before or didn’t pay attention to them… people who saw them as too time consuming, complicated, not for them, not for the family, useless, etc. Excellent marketing, price, simplicity, ease of use, etc. combined for their success in sales. If you really want to know more about Nintendo’s strategy with the Wii, maybe you should try reading “Blue Ocean Strategy: How to Create an Uncontested Marketspace,” the book Nintendo used for their success.
February 8th, 2009
CARL!!!!
OY CARL!!!
dont waste your energy on them… blawg it…
have you given it a thought mon?? seriously??
February 9th, 2009
Is our site up yet dwh?