Sony's strategy includes $300-400 PS3, pre-loaded content on PS3, and new portable video players
by Vladimir Cole 
{ Nov 4th 2005 at 9:15AM }
The PlayStation 3 is expected to cost between $300 and $400, according to a new data point
buried deep in an article in the Hollywood Reporter about Sony's overall business strategy. In addition to the PS3
price hint, there are some other interesting factoids in the article:
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Sony will be releasing new portable media player devices that "will focus primarily on video and transferring user-selected content from digital video recorders and other devices using Sony Memory Sticks"
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The Sony PlayStation business is worth approximately $20 billion out of Sony Entertainments's entire $37 billion valuation. (The entire company rakes in $65 billion per year.)
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The PS3 is a Blu-ray trojan horse. According to an anonymous "high-level studio executive," the PS3 will be a "subsidized Blu-ray play that will sell 20 million units. The first HD player will be on the market for $1,000. PS3 could be at $300 or $400. Sony will be selling them at a loss the first six months to a year just to get Blu-ray players out in the market. So studios realize they need to have their content on it."
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"PS3 will be bundled with a selection of preloaded films, TV programs and games"
[Thanks, Stephen]
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Reader Comments (Page 1 of 3)
isuma @ Dec 18th 2005 9:06PM
If they were smart they should follow the UMD launch route and bundle the BD version of Spider-man 2 with the PS3. That should wow the heck out of a lot of people.
soco @ Dec 18th 2005 9:06PM
no surprise on the price range.
i imagine they're going to try and do exactly what the 360 but with bonuses. so they'll offer 2 or 3 games, and maybe a free album and 2x the movie clips, or maybe even a free movie for waiting list purchasers.
SickNic @ Dec 18th 2005 9:06PM
It's funny, I submitted this article to them 3 days ago and it never was posted until now...
JRM @ Dec 18th 2005 9:06PM
pre-loaded?? I thought they weren't going to package hard drives...
Giddieon @ Dec 18th 2005 9:06PM
Poster Number 3 is it a surprise really... or shock that they actually posted something positive about the PS3... someone must have messed up on there end...
Looks like someone is going to get canned...
OTAM @ Dec 18th 2005 9:06PM
What is this console offering me that should make me buy it over a 360?
Seriously though,everyone seems to think the other way around,but i'm getting a 360 at launch and it has all my needs covered so why should I bother to pickup a PS3?I don't want a blu ray drive and the 360 has a standard DVD drive which i'm happy with.Call me stubborn but I really do NOT want to buy something newer than DVD.
I guess it comes down to games,like it should be from the start.I mean,if Sony wants me to get their system along with the 360 they better start showing me something and not jump up and down yelling "blu ray".
I'm in a very weird mood and just thought of posting this.
vc @ Dec 18th 2005 9:06PM
Hahaha -- guys, we get tons of tips and comments. Sometimes we're a little slow on processing them.
n8 @ Dec 18th 2005 9:06PM
Preloaded with crap, if Sony follows their usual practice. Unless it's full playable games, I don't think preloaded anything will be an incentive to anyone.
As for the Blu-Ray, I don't think this strategy will work. I bought my PS2 in part because it was a cheap way to get a DVD player at the time. I don't feel the same way about Blu-Ray though - I don't feel a need to upgrade media at this point, and getting a bargain player isn't reason enough for me, particularly before the latest format skirmish has been settled.
And what's this about portable media players with memory sticks? Seems like we've already got that with the PSP... or is Sony going to split their market by offering a memstick-only device?
The only thing that will make me get the PS3 is if it replicates the features of the failed PSX - PVR, games, media player, DVD burner and memstick support. Of course, that doesn't seem to be in the cards.
vrf @ Dec 18th 2005 9:06PM
so will the new portable video player use UMDs, too? WIll it have a harddrive? If so, it would seem to make more sense to have an upgraded PSP with a harddrive.
It seems like SOny is moving away from games or something.
rog27 @ Dec 18th 2005 9:06PM
With the exception of hardcore gamers (the minority), I think Sony has the number of the adult casual. He/she has the highest capacity to spend and, thus, this market is the largest viable market for the sale of profitable electronics. They will Trojan horse blu-ray...which is a really awesome medium that I am really excited about personally...and offer content and experience to some degree better than the competition (oriented toward the adult casual).
I am pretty confident that we can infer Sony will strike gold a second time here.
Rabiddog @ Dec 18th 2005 9:06PM
Lets see some hardware please.
Matt @ Dec 18th 2005 9:06PM
Okay yey for all that stuff and a good price range. Now lets get talking games dangit.
krizage @ Dec 18th 2005 9:06PM
First off.. rog27 is plant...
Second off...
Sony is whoring their gaming console to sell disks, they refusing to consolidate online gaming, has non-existent playable demos for the PS3, no release date, frantic desperate trashing talking in the direction of Microsoft, and now they are secretly installing software on our computers (http://news.yahoo.com/s/nf/20051103/tc_nf/39083)...
What kind of company are they running over there...
TwistedBishop @ Dec 18th 2005 9:06PM
It'd be a great deal for PS3 fans if true. I figured even getting Sony to sell it for $400 would be a huge victory for consumers.
I don't see how they'll offer the same price point as the Xbox 360 though. Is the PS3 supposed to come with an HDD? If the specs were identical I'd say they could just strip it down like the 360 core did, but that doesn't account for the price of Blu-Ray, the Cell, or Bluetooth.
bouncicles @ Dec 18th 2005 9:06PM
The Blu-Ray trojan notion is one of the few ideas about the PS3 that have made sense recently. It does seem that the Xbox 360 has been making repeated overtures to hardcore gamers and Sony has been peeing away its solid mindshare position. But, Sony's strategy of using its products to push its other technologies has been done again and again and again (and again). God bless them, Sony makes some weird choices, but they sure do beat those choices into the ground once they've been made. And one thing they consistently do is leverage their products into acceptance of their other technologies. This has even lead to problems between their hardware and content factions, perhaps best exemplified by their ridiculous, and only recently ameliorated, position on MP3s and portable music players.
That being said, it's important to remember that everyone reading this right now is by default an internet nerd, and we have a skewed perception about what matters to the mainstream populace. I suspect that Blu-Ray will be adopted through the sheer number of PS3 consoles pushed. While the improvements of Blu-Ray may or may not matter much to a serious gamer, it's very possible that the mainstream audience will see the PS3 as a package deal (it plays games AND it can play the newest of the new video discs). This would probably hinge upon the PS3 being able to play standard DVDs, of course; it does seem a little early for people to replace their collections AGAIN.
traumzustand @ Dec 18th 2005 9:06PM
@krizage: "First off.. rog27 is plant..."
He's a plant? Then how did he type his post?
Seriously, I'm looking forward to the PS3. The only thing I was worried about was the 'high' price. If it truly has a $300 - $400 price, I'll definitely pass on the 360 for one of these bad boys.
I am Striker @ Dec 18th 2005 9:06PM
"The PS3 is a Blu-ray trojan horse. According to an anonymous ”high-level studio executive,” the PS3 will be a “subsidized Blu-ray play that will sell 20 million units. The first HD player will be on the market for $1,000. PS3 could be at $300 or $400. Sony will be selling them at a loss the first six months to a year just to get Blu-ray players out in the market. So studios realize they need to have their content on it.” "
This must be a hugh loss for sony, since if blu-ray are expensive,plus other parts of the system, sony are taking a big risk on blu-ray. But I guess sony will promote blu-ray players, blu-ray movies as a bigger form of money. "Gotta lose money to make money" thinking.
e2 @ Dec 18th 2005 9:06PM
The difference between the PS2 prior to launch and the PS3 prior to launch, there were DVD titles available and I seriously wanted a DVD player because it was next generation. The PS2 was my first DVD player. I don't see any blu-ray titles in the stores, and I currently have 0 interest in getting the PS3 for non-existant titles or just for viewing movies. Also I don't have an HDTV yet, so what's the point?
And Hollywood Reporter? Why is the entertainment media scooping the game media?
Mcfly @ Dec 18th 2005 9:06PM
Was I the only one to catch this,
Quote" the company soon will unveil a line of compact, portable video devices to fill the time gap before PlayStation 3 launches in Japan in March and in the U.S. a year from now"
A year from now,Is this speculation by the author or is he privy to some info that is not public yet?
stukadivebomber @ Dec 18th 2005 9:06PM
man i knew it.!! i finaly got it sony is Not in the same page a the other two consols. first the try the same thing over and over againg. ps2 selling point.DVD player ps3 the same BLUE RAY. man this is getting old they seem to care more about the succes of the BLUE RAY than games and the technology itself. this is a test for them to see if the consumer (us and you) will by this for them to latter rank in the profits. the all ways seem topule same thing forward. for me blue ray is not the selling point i dont need a new format when sony said so. same with the ps2, the ps2 was the cheapest dvd player out there guess what people bought it. Now with the ps3 the blue RAy is the cheapest BLUE RAY tha you could buy by 2006. thats the formula.
i call this the sony hardweare formula or SHF.
Ps2 selling point cheaper dvd drive = lots of Ps2 90million plus total sales.
Ps3 the same thing cheaper BLUE RAY= lots of ps3 sales.
since sony is the first in the market with the new tecnology for the cheapest amount it sells. in my opinion sony has never care weather they sell games all they care is for the hardware to sell. so for me there is nothing interesting in the ps3 world or in sony. remember this sony is and always will be a hardweare specific company. all they care is for the BLUE RAY to suceed AND for them to be the first to the market wiht it. because it will make them huge profits once the q3 comes around. sony depends on the BLIUE RAY to succed this has nothing to do with the cell nor the xbox 360 cpu. sony is after the big cake. the next gen format wars. and you know why because there studios depend on it and may other studios ie. paramount,warener bro,miramax,lions gate. if they fail then the loose many billions in endorsment. sony is now on the tight rope if you aske me. as far as the other two companies they dont have to worried to much about it. because they are not involve as sony is. they went on the conservative side. also if you watch the ps3 E3 press conference there will be more pointing information that sony is infact first in saying that they were first in the dvd esene. wich in fact they were not. this is bad marketing for sony. BLUE RAY= SELling point well not next gen. they played the same trick with the ps2,seling point dvd,ps3 BLUE RAY. thats why NINTENDO suffer because is the ps2 would have stuck with regular cdrom then nintendo and dreamcast will have been king. because there is not a feture that the consumer wants. sony has always been like this. another example is sony trying to push a new format to detrone apple from there succes. i call it first you WILL SEE A BLUE RAY PORTABLE PLAYER BELIVE ME. sony is very clever but not with me.
rog27 @ Dec 18th 2005 9:06PM
@krizage: Feck off, you overly cynical muppet.
That's what I have to say about that.
Kuroshi @ Dec 18th 2005 9:06PM
Were did this garbage come from? Sony has already said that the hard drive will not be included and will not have support for games. It will be used for multimedia functions. I also wouldn't bet on the $300 to $400 price tag. Cost analysis from Meryl Lynch has parts cost of about $465. Sony is not in the financial position to take that big of a hit. At least the trojan horse part is right. Sony's focus is the next gen format war, Not the console war. They have bet the ps3 on it.
32_Footsteps @ Dec 18th 2005 9:06PM
Wait, Sony strikes gold a second time? So was the Playstation or a Playstation 2 a failure according to you, rog27?
Personally, I'm still waiting for a reason to buy any next-gen console. Nobody has shown me any games I'd want yet, and that's still the only reason I buy consoles.
skuzmak @ Dec 18th 2005 9:06PM
the blu-ray trojan move may backfire, making people see blu-ray as comparable to UMD, a sony proprietary format. UMD as a movie format won't last, it will fade out by the time the ps3 comes out, leaving people with a negative impression.
Kuroshi @ Dec 18th 2005 9:06PM
The PS3 still may not be the cheapest hd format player. China manufactures most of the current gen dvd players and currently supports HDDVD. They could potentially flood the market with inexpensive HDDVD players just to hold on to the production market.
Remember the PS2? Remember the Xbox? @ Dec 18th 2005 9:06PM
High Definition is the future. If you have a HDTV, like me, you want everything to be HDTV. The difference between HD television shows and DVDs are like the difference between your VHS and your DVD, it's ridiculous. I will by the PS3 just for the next gen movies. Even if they didn't release a single game for it. (I'm sure there will be a couple of games )-it'll probably end up with twice as many games as Xbox360 again.
Anybody who has an HDTV is definitely looking forward, big time, to the next gen wave of movies. DVD is actually a step back from network tv. Unacceptable.
Bring on the PS3. Sony's loss will be my gain
getluv @ Dec 18th 2005 9:06PM
It seems like some of you people were born yesterday.
I think there are better games on Playstation than the whole Xbox and Gamecube titles combined. They have a lot of shit games for people without a clue, but they have games that people want, and these are exlusives.
DOA is not even in the same league as Tekken.
Halo overrated game for people who have no friends.. (believe me, i know).
So their PS3 library games will be just as great. Sony is more innovative than MS. We know this. Again we established that Sony would rather let game developers start their own online stratergy --> this is a good thing for Sony and people who don't play games on the net. And believe me, there are a lot of them.
You MS fanboys really have to be so cynical each time a +ve comment is said about Sony, even if it didn't say anything about the 360. Which is by far the most overrated piece of crap ever, to be called next generation.
So what if Sony loves their own products that much. I do. Just because you people are poor and live in your mothers basement.
rudiger @ Dec 18th 2005 9:06PM
Sounds like the usual Sony business plan. They're so busy dreaming of the Blu-ray royalties they'll get when their format wins, but the loss leader pricing of the ps3 will make it uneconomical for anyone else to manufacture competitively priced Blu-Ray players. And again with the stupid fucking memory sticks. Has shoe horning their proprietary formats into their products ever really worked?
skuzmak @ Dec 18th 2005 9:06PM
#25, ps2/blu-ray is obviously not going to be the only HD movie option. Remember, it's a game console. Anyone who's seriously interested in movie playback won't be using their game console to do it, the quality of ps/2 or xbox dvd playback is sub-par, i suspect blu-ray/ps3 won't be reference quality either. As far as gaming goes, both consoles (360 and ps3) support HDTV natively. Also worth noting, I do believe that the 360 does support playback of the currently available HDTV dvds out there (terminator 2 special edition, etc).
Stephen @ Dec 18th 2005 9:06PM
I don't like the idea of forcing Blu-Ray into the market. We are steadily increasing the capacities of current DVDs. Forcing Blu-Ray would make Sony only richer, as they are only company who is selling them, and it would make the people poorer.
Also, I still believe the Revolution will kick Xbox 360's and PS3's butt. Why? Nintendo are making game development cheaper and will have a larger library than the PS3 because PS3 is difficult to develop for.
Anyway, good luck, Sony. w00t. Be a Microsoft and lose money!
R @ Dec 18th 2005 9:06PM
Let's just sum this up nice and simply.
1. Sony does not care about games or gamers, it cares about money.
2. Gamers are early adopters of new technology.
3. Gamers allow Sony to install a user base for a product it would otherwise find difficult to sell (Blu-Ray, UMD).
Don't you feel used?
getluv @ Dec 18th 2005 9:06PM
The PS3 will support DVD! What are you people idiots talking about. PS 2 DVD was Sub-par my arse. Its the same as the others, without a cool menu which you can use your controller with. I remember, on the xbox you need to spend extra to use the DVD player. What a load of dogshit.
Raise your hands if your not on drugs @ Dec 18th 2005 9:06PM
#20, are you sure it's Sony that doesn't care about games?
Who has more games for their consoles than Sony?
What are you talking about?
There will be a ton of good games for the sony ps3, you read it here first.
Every generation, Sony consoles offer something great to play, deny/hate if you want but there have been some great games released on the PS consoles.
PS1-FF7, Tomb Raider, MGS, GT, Res Evil, Intelligent Cube,Suikoden
PS2-GTA3, SOCOM, Ico, God of War, Devil May Cry series, Ratchet series, Sly Cooper series, Katamari Damacy
I guarantee PS3 will have games, more games (Don't forget that game companies are primarily Japanese), and very fun games.
SetupWeasel @ Dec 18th 2005 9:06PM
Everyone forgets that this "Blu-Ray Trojan" will still play DVDs. The market for Blu-Ray is not ripe yet. When the PS2 came out, everyone who bought one had the equipment to take advantage of the new DVD format. Not only that, DVDs were already in the stores and there was already a market for DVD players. Sony's strategy is putting the cart before the horse much like with the UMD.
Remember the PS2? @ Dec 18th 2005 9:06PM
#29, have you noticed how many UMDs are being released?
There will be more Blu Rays released. Every company but one is on board. And Sony is a huge Movie Company
skuzmak @ Dec 18th 2005 9:06PM
#31, the ps2/xbox plays dvd back in INTERLACED format, not progressive scan, so it is clearly not as good as others (ie. progressive scan dvd players). asshat.
skuzmak @ Dec 18th 2005 9:06PM
#31, the ps2/xbox plays dvd back in INTERLACED format, not progressive scan, so it is clearly not as good as others (ie. progressive scan dvd players). asshat.
Joe @ Dec 18th 2005 9:06PM
#30. I guess Microsoft cares about gamers. Get over it. All these companies are in it to make money. Nobody is developing games because they love you.
I just wish people would grow up sometimes. Buy the consoles you want and enjoy them. All this mine is better then yours gets boring. Who cares. These are video game systems. Get on with your life. Go outside and enjoy the sunshine.
mdot @ Dec 18th 2005 9:06PM
i don't feel like reading every post on here so if this is a repeat, just disregard it. but i find it extremely hard to believe that the ps3 will be only 300-400. they aren't going to take THAT big of a loss on blu-ray just to push it out there. $1000 for the cheapest player? and $300 for a ps3? i dunno bout that. this is probably just to get some people thinking that IF they heard the ps3 is around the same price as a 360, they'll hold out and get the ps3 instead. they mihgt just be saying this shit to slow the 360 launch and then release the REAL price in the spring. just a thought.
OTAM @ Dec 18th 2005 9:06PM
So basically the PS3's only big selling point is the blu ray drive,correct?
I'm not saying it's true,i'm just saying what i've come to assume from all your posts.It looks like you're just buying a blu ray player that can also play games on it.You guys seem so hell bent on this blu ray drive.Is there any blu ray discs even out for sale on the market yet? I still think we need to perfect DVD,not make ANOTHER new format. Jesus it wasnt THAT long ago that DVD came out.
It seems like the normal,9 to 5 working class people get the shaft for the richer Rockafellers this upcoming generation by installing a drive that supports HDTVs out of the box. Well,what if I don't own an HDTV,then where's my package that lets me save $100 for something I don't need? I still think 2 dual layered DVDs are WELL ENOUGH space for developers.Just perfect DVD and compression and we have a solution.
But as we all know,it's easier to break it than to build it correct.
Kuroshi @ Dec 18th 2005 9:06PM
game companies are primarily japanese? Only 3 of your title for the ps2 were japanese. Also, the exclusives from the last gen are over. Every major japanese developer has announced support for the 360. The japanese gaming market has been shrinking and developers are looking to expand thier markets for greater revenue. The general feeling in japan is that MS will lose in japan but win in the american market. This is why they signed on to develope for the 360. To expand thier market presence.
stukadivebomber @ Dec 18th 2005 9:06PM
32. look this is how i see it.Reply
Sony Corporation is a hardweare company.right. all they see is for their hardweare to sell. ie. BLUE RAY,WALKMAN
Kuroshi @ Dec 18th 2005 9:06PM
Both the ps2 and the xbox were horrible dvd players, as will be the ps3. The ps3 should be a cheap BD player not a good one. A dedicated player may cost more but will always function better. Sony will also release dedicated players so if you have the money and a high end TV that would be your best bet. Get the ps3 when MGS4, DMC 4, and god of war 2 release. Which is expected close to a year later and hopefully after a price drop.
cool dude @ Dec 18th 2005 9:06PM
hahahaha. its the same price as x box. but it is better. lol. ps3 has everything xbox 360 has and more. for the same price i dont see why anyone would get the 360. unless u cant wait 4 a next gen and u have to have it now.
soco @ Dec 18th 2005 9:06PM
one thing i still dread is that blu-ray drives, even for computers, are rare. both DVD and CD had quite a lots of incubation times in various revisions before they appeared on heavily popular consoles. (the exception being the PC-Engine, if you'd consider that popular).
Both Sony and Microsoft face class-action lawsuits for DVD drive failures, so i don't hold a lot of faith in the PS3's blu-ray drive in the first two revisions of the console at least :
Gombard @ Dec 18th 2005 9:06PM
Having a good laugh at rumors, it'd be super funny if the ps3 came out with no hardrive, horrible backwards compatibility (if any), no real online support (except for publishers who do), and to top it off a blu-ray version of Stealth as a bonus.
This was to be humourous, not slanderous. I'm sitting on the fence until this baby comes out. By the way, when is it really supposed to come out? When's the date for Japan? Anyone know?
Kuroshi @ Dec 18th 2005 9:06PM
As a consumer I don't like blu ray because of it's invasive copy protections and inability to be loaded onto home network. Future home electronics can be networked so content from one location or device can be played from multiple locations. Blu ray copy protection does not support this. Some of it's supporters are working to get this changed. As an investment I am cautiously optomistic. They stand a very good chance of winning the format war. If they do, it will be more revenue than would ever come from a game console. China is the dark horse. If they could convice MS to get of the fence and join BD for the 360 that could possibly seal off even china and insure BD as the next gen format. Blu ray and UMD are sony's future revenue sources and look for dedicated UMD players coming soon.
Andy @ Dec 18th 2005 9:06PM
Who in the H3ll wants to watch Kooking with Kutaragia and Spiderman 2 (AGAIN)? I think this is really sad. Sony is basically saying, "We don't care about games, but buy this spiffy Blue Ray Disc player so you can buy this new disk format that we get money for." That really sucks. Not only that, but they aren't going to have Internet capabilites similar to Xbox live. Gosh, I guess if you have a Visio PC, a Sony TV, a Minidisc Player, a Watchman, a PSP, an ATRAC3 Player, and a Ken Kutaragi Grill you'll be all set to buy all your old DVD's in a new format... Welcome to the "NEXT" generation in ... Gaming???!?!?
doubtful @ Dec 18th 2005 9:06PM
Until Sony lays off the malware DRM on their CDs I don't care if they're giving away PS3s, I won't take one.
Who knows to what new lows Sony will take Blu-Ray DRM?
Slashbunny @ Dec 18th 2005 9:06PM
lol, the article mentions the PS3 is going to to ship with the BlueRay drive and that could have a major impact on how many consoles sell and you have about 50 peabrains comment "SONY DOESNT CARE ABOUT GAMES, ALL THEY CARE ABOUT IS BLUERAY!!!"... Idiots.
I know plenty of people who's purchase decision of PS2 was based on the DVD drive. Is it because Sony was pushing the DVD format? No, it was the whole industry. If the industry pushes BlueRay, everyone will want to get a BlueRay player. And since the PS3 is cheaper than standalone ones, why not get a PS3? An incentive is the fact Sony has has the best and most games for their systems the past two generations.
Why would any of this change now? You have to remember, Sony is on top, folks. The PS3 is going to sell like mad regardless. To think the PS3 will flop or be crushed by the 360 is an absurd prospect. However the opposite is not. Sony is expecting to continue their dominance over MS.
The burden of proving the Xbox360 should be the console everyone should get is on you. And I don't see anything working in 360's favor significantly enough to pull people away from Sony. Unified online format? That's it. Compared to a BlueRay drive, that is weak. People don't care about online play as much as they like getting a $1000 product for $400 + a huge bundle of extras. Xbox Live is tiny now, it won't get much bigger next gen. Broadband penetration peaked years ago. If Xbox Live can't get more than 10% of people signed up (gaming account or not), 360 isn't going change that. Until some proof is shown that the majority of console gamers want to pay to play for games online they've already paid for, Xbox Live means nothing more than it means now. So why should anyone get a Xbox360? It stands to reason PS3 is packed with more software and hardware features, will have more games, better games (by statistical probablility, if anything), and "Playstation" is still THE name in gaming.
Nintendo didn't lose market dominance to Sony because N64 and PS1 were close, similarly featured systems. Sony came out with all guns blazing like bats out of hell and TOOK it from Nintendo forcibly. You'd be kidding yourself if you think MS is in that position to do it to Sony now.