Sony Australia: Wii "a bit pricey"
by Kyle Orland 
{ Oct 10th 2006 at 5:55PM }
"For what it specifically does as a video games machine [it] is a bit pricey." No, this quote isn't from yet another analyst bemoaning the PS3's high price point; it's from Sony Computer Entertainment Australia Managing Director Michael Ephraim, talking about the Wii's AU$400 price point in an interview with a blog associated with Australia's Age newspaper. Ephraim also mentioned that the Xbox 360 "appeals only to a very core group" and, at a little over AU$600, is "still pricey."Ephraim was not asked what he thought about the PlayStation 3's AU$1,000 price point, but I think it's fair to guess the word "pricey" wouldn't be anywhere near his answer. Seriously, when many analysts and consumers consider a high price point to be your system's major weakness, you shouldn't be talking smack about the affordability of the competition.
[Via Aussie-Nintendo, thanks Ignatius]
Reader Comments (Page 1 of 2)
KAZ @ Oct 10th 2006 6:01PM
599 US DOLLA
Intellectualdiot @ Oct 10th 2006 6:05PM
Hey, Kettle?
You're black.
PT @ Oct 10th 2006 6:16PM
Wow... a business man goes on the record to say he thinks that someone that is competing against him is charging too much. This is news indeed.
Seriously...
He's just cranky that Nintendo is turning a profit.
dogarms @ Oct 10th 2006 6:06PM
I can't see ANY parent dishing out $1,000 bucks for a console, let alone the required game-or-two AND extra controller. I predict the PS3 in Australia is set to be a "wow looks cool, can't wait till it comes down in price, lets go play the demo unit and then buy an 360" event, for quite a long long time.
Personally? I've preorded my Wii already, from Toys R Us Australia. They're offering a free game with any pre-order! So I'll be set up with 2 controllers, and two games (Wii Sports and Zelda) for under AU$500!
Toneman @ Oct 10th 2006 6:13PM
I'll gladly pay AU$1,000 if the PS3 says "RIIIIIIIDGE RACEEEERRRRRRR" when it boots up.
Oro @ Oct 10th 2006 6:09PM
Ah, the classic "I know you are, but what am I?" argument.
nyc @ Oct 10th 2006 6:11PM
Sorry but nobody cares about Australia. It really gets royally shafted on just about everything near and dear to a geeks heart.
I emigrated from Australia and it was the best thing I ever did. Fiber to the home, games and movies and tv shows on time, YES!
darryl @ Oct 10th 2006 6:15PM
Well, I guess for what the Wii does (doesn't) and the simplistic hardware you get, it is infact priced a tad high. Should be around 175-200 USD I hazzard to guess. The 360 is also a tad high for what you get, but it's a Microsoft product. The PS3 is the only one of the three that is actually really expensive to make, and was expensive to design. Naturally it will be expensive to buy, at least intially.
Erik Novak @ Oct 10th 2006 6:15PM
Well, people forget that Nintendo IS overcharging for their hardware. It's not like Nintendo couldn't take the hit and decrease the price by at least $50 (since it takes $220 to make). "We game company, we cannot afford to sell for loss!" That's baloney and they know it. They're just charging $250 because they can.
Wulkar @ Oct 10th 2006 6:17PM
that doesn't make any sense. if the wii is pricey then the ps3 is like sex in a bottle
Silver @ Oct 10th 2006 6:17PM
Sony needs to put a gag order on its employees everywhere. Seriously. All this FUD they're spreading around has the pungent aroma of desperation. It's a real turnoff.
And to think the PS3 USED to be my next console of choice. For now I'll go for the Wii and let Sony and Microsoft beat each other to bloody pulps. Who'll win? Who knows. But I definitely won't lose.
Trogdor @ Oct 10th 2006 6:17PM
I have a roll of AU Dollars in my bathroom right now. it's actually cheaper than the other stuff!
Ignatius @ Oct 10th 2006 6:20PM
Yay, my first submission. Also, I've been lawling at that for a day now. XD
Dr Love @ Oct 10th 2006 6:22PM
Ahhh darryl
Your fallacy-ridden logic never fails to tear a laugh from my throat.
skyrous @ Oct 10th 2006 6:22PM
Erik Novak, if nintendo followed your advice there wouldn't be a Wii... or a DS. nintendo would have been driven from the hardware market by now. Selling at a loss only works if you have millions of dollars to waste. Just ask microsoft... or sony.
kayzai @ Oct 10th 2006 6:24PM
HAHAAHAHAHAHAHA!!!
This is one of Sony's funniest comments ever. SONY REALLY NEED TO SHUT_UP AND JUST LAUNCH THE PS3.
I can't believe Sony can even comment that the Wii is too expensive. WHAT THE...? How much is the PS3 Again???
I really hoe sony shut's-up especially this close to launching the PS3.
Stop embarrassing yourselves and your fans, SONY!!!
jayntampa @ Oct 10th 2006 6:27PM
Want to talk price ... look on eBay -- the PS3 follies have already begun, $1,175 US to even start bidding on it:
http://cgi.ebay.com/Playstation-3-ps3-Premium-System-ship-overnight-11-17_W0QQitemZ200035910333QQihZ010QQcategoryZ62054QQrdZ1QQcmdZViewItem
Tim @ Oct 10th 2006 6:30PM
@Darryl
are you stupid, lets say the most expensive console is worth it and the cheapest is too expensive lol.
not even looking at the hd movies because this is from a gamers perspective.
look the ps3, same games as ps2 just prettier 200$ tops + wireless internet 20$ + controller 50$ + 60GB HD 60$ = worth 340$ tops
xbox 360 same as ps3 - the wireless internet = 320$ tops
wii, new games with 2x the graphics and cpu power as the most powerfull last gen, the GC, 200$ + 60$ controller + wifi 20$ + wii sports 40$ = 320$
now shows ps3 over priced, xbox 360 resably priced and wii is under priced,
but at least i will admit to being a nintendo fan
hope this helps you see another side, but I doubt it :P
Mank @ Oct 10th 2006 6:28PM
The Wii plays video, MP3, views photos, plays games, surfs the net, has finally gotten my mum to agree to try out a game (other than Brain Training), and more.
The only thing that I would like more is the ability to use USB 2.0 UMS devices.
Silver @ Oct 10th 2006 6:28PM
"Selling at a loss only works if you have millions of dollars to waste. Just ask microsoft... or sony" - skyrous
I think you meant "billions."
GamerZero @ Oct 10th 2006 6:29PM
Whatever happens,Sony must be crying tears of blood to lose a hefty amount of market share this time round.
It's good because developers will consider every console when making them nice games that keeps us
entertained.
That is the main reason to celebrate.
amba @ Oct 10th 2006 6:30PM
Because of the delays, the PS3 isn't a factor right now. He's obviously trying to put the PS2 as a viable purchase come Christmas.
But if he thinks that Sony can sell consoles because they are the only ones that do 'social gaming' and 'family entertainment', then they've got another thing coming.
Doomstalk @ Oct 10th 2006 6:35PM
In the immortal words of Penny Arcade: "Pot to Kettle: You are Black"
azn_1080p @ Oct 10th 2006 6:36PM
I'd like to offer a sincere apology to everyone whose time that I have wasted with my inane ramblings and logically abominable arguments. I was merely angry at my mother and father who failed to purchase a PS3 for my exlusive usage this morning; they also didn't buy me my glorious 1080p TV that I will use to court darryl and other Sony people in an elaborate and raunchy monkey ritual of sexy time. I shall take my anger out on my failures of parents now instead of you intelligent posters who have been patient with me.
I take back everything that I have said about the PSP. Those were all contrived and fabricated lies; visions from my own Sony shrine that emits hallucinogenic incense that hangs above my bed. I created those lies even though I knew no one would fall for it because I just detest Nintendo for releasing a system that surpasses my own in fun factor and playability. That leads me to my next deficiency as a human...
I'm not ambi-company enabled; I can only purchase things from Sony due to a deep psychological problem.
Of course Sony is a fairly good company and we all agree that we owe them for their many good games. They make good games and bad mistakes like any other company. But childhood trauma or some other equally damaging event(s) prevents me from seeing this and thus I have to convey my points of view onto the general populace.
The origins of my repetitive and unimaginative "Wii FTL" comes from actually fearing that it might turn out to be a system I want. My other self will hurt me if I play it. Thus I've been instructed to put down the Wii routinely and as much as I can even if it appears as poor English. If I fail my other, currently sedated, self, I will be whipped like a dog. This treatment was successful in rooting out my "irrational" desire for the XBOX360. Now I associate Microsoft with the pain that gave me the whelps on my back.
Rest assured though; my doctor is making me play long sessions of Mario, Wind Waker, Ocarina of Time, Halo 1-2, and hopefully Gears of War. This will kill my other Sony-ized self with a little bit of luck.
However, this treatment is dangerous. Every second of pleasure I experience is also unspeakably painful. I need your guys's collective support so I apologize for my idiocy. Please give me a hug!!! Thank you for doing your best to correct my irrationality. I appreciate everything that you have done.
From now on, my unsupported, unwarranted claims and flat out lies shall remain in the bedroom with my girl, darryl and whoever else makes such claims. I will now support what I say and not be consumed by blind hatred anymore. Once again, I offer my sincerest and most heartfelt apologies.
Blackmoon @ Oct 10th 2006 6:39PM
The Wii is pricy considering the hardware and how much it probably costs nintendo to make.
LK @ Oct 10th 2006 6:44PM
It is simply a good business pratice to get your products cheap and sell them at a higher price. To do otherwise is unwise.
Mike @ Oct 10th 2006 6:45PM
How about $499.90 for us Kiwis?
http://www.gpstore.co.nz/Games/1520470.html I'm going to wait for a price drop before getting a wii
DeadPlasmaCell @ Oct 10th 2006 6:46PM
"For what it specifically does as a video games machine [it] is a bit pricey."
I agree 100% with that. For what it is and what little improvement you're getting over a Gamecube, it IS a bit pricey.. Still very affordable, but pricey for what it is.
David @ Oct 11th 2006 12:16AM
Video game companies don't care about the Aussies, but I do find it enjoyable everytime Sony talks from their asses.
LordMinogue @ Oct 10th 2006 6:59PM
I'll be frank. The Wii is a gamecube with an upgraded interface and online capacity. I was expecting a $250 price point.
Although the Wii will stay alive in the graphics department, the already old tech will fossilize completely by 2009.
However, this system could hit the $100 SWEET spot by 2008. I'll pick the Wii up as a second system (I have a 360) when the price drops enough to warrent the investment. $150 will win me over, no sooner.
LordMinogue @ Oct 10th 2006 7:04PM
I'd also like to add that all three systems are now technically obsolete.
http://www.intel.com/quad-core/?cid=cim:ggl|xeon_us_clovertown|k7445|s
NoHitHair @ Oct 10th 2006 7:10PM
"...of course Sony is a fairly good company..."
No. No they're really not. They've only existed through the decades as the "top-of-the-line" product through extensive marketing campaigns and an abuse of consistent and illogical consumer belief that the more expensive something is, the better. Sony is well aware that after creating one stellar product, they can ride their own coat tails and sell inferior products at the same price. This is what name recognition delivers.
Sony is utilizing this tactic again by showcasing their product's raw power and demanding a high price to compensate. As with the original PlayStation, the first times gamers had been exposed to such high levels of hardware defects, we now assume and expect the same out of future systems, a la enormous Xbox and PS2 returns (I worked at an EB where we averaged 3-5 Xbox and PS2 customer defects per DAY) and 360 and PS3 overheating, of which all have a large base of consumer apologists.
Sony could literally put dog feces into a cardboard box and fanboys would still line up. That's a sobering truth of gaming today.
aZn_1080p @ Oct 10th 2006 7:22PM
Real original there imitating me, I really think its outrageous taht this site does not provide any defense against identity theft like that above.
All that aside, Ephraim has a good point, from a value POV, the PS3 trounces both the 360 and the Wii. Ninty is on record about the fat profit they will make on the Wii, since they can reuse all the unsold gamecube bits, and M$ under the guise of 'choice' is really removing value from the box and forcing you to pay for it down the road, not to mention nickel and diming you with Live payments just to play online and all the extras like horse armour.
Mr. Khan @ Oct 10th 2006 7:26PM
@ the above posting aZn_1080p
That just made my month
but is it legal to take his name, or are you a logic Demon that possessed him and his trying to purge his mind of his unhealthy Sony fixation
Note: I am NOT saying a sony fixation is unhealthy, just aZn's
azn_1080p @ Oct 10th 2006 7:27PM
Real original there imitating me, I really think its outrageous taht this site does not provide any defense against identity theft like that above.
I am outraged that fake people would dare introduce sony-biased opinions. Once again, my fake gives absolutely no support for what he says. He merely cites the shoddy work of others. Once again, I apologize for my insolence. I shall now go back and proclaim the truth, not the truth as I see it. Back to being fair and balanced.
Yours truly,
azn_1080p
BTW
The PS3 isn't a better value. It's a good system but I admit that the pricing was a bit off for the mainstream. Maybe once pricing comes down, it'll be a better value. But for now, most of the cost rests with unproven technology (Blu-ray) and features that the consumer either does not need or can be emulated just as well by the 360.
Scott @ Oct 10th 2006 7:28PM
The Aussies need to raise the value of their currency or stop bitching.
Conbus @ Oct 10th 2006 8:00PM
There is no need to analyze the cost of the inner workings of consoles to see if they are priced well or not. The 360 and Wii are ok, though I kinda wish I could buy the Wii just for $200 w/o Wii Sports. Won't even mention the PS3.
number40one @ Oct 10th 2006 7:35PM
How did he manage to get his rectum to articulate such complete sentances?
azn_1080p @ Oct 10th 2006 8:00PM
I used your lips. They worked real good on my sphyncter.
The Dude @ Oct 10th 2006 8:02PM
o_o; Has Azn_1080 seen the light??
John Lucas @ Oct 10th 2006 8:11PM
The irony never ends with the Tokyo Telecommunications Engineering Corporation.
http://en.wikipedia.org/wiki/Sony#History
You know I wonder sometimes.
Are the Sony execs REALLY Nintendo &/or Microsoft secret agents?
Something's up.
Is it a Voodoo hex causing all of this diarrhea of the mouth from these guys? Somebody has drugged these people or something. Some secret addiction going on that's affecting thier jobs.
The Wii is not overpriced despite some internet sentiment (which is notorious for being wrong much of the time). It is priced EXACTLY the same as the N64 & GC that came before it because you had to add on $50 or $60 just to play a game by that launch system. The $200 was the console barebones.
Wii only makes $250 because it includes all of the stuff in one package instead of making buy it separately. The Wii Sports pack-in could not have been a wiser choice. Perfect gateway for the Wii experience.
As we all know each country's tax system & tarrifs adds on those extra fees so get mad at your country if you pay higher than other countries do. VAT system. At least you got nationally insured health care unlike us Americans! One up, one down.
Those betting on the PS3 to come out well in the next generation are due for a rude awakening.
Microsoft is gonna put the pressure on 'em like you wouldn't BELIEVE & Nintendo is gonna overshadow BOTH in the process once Wii launches and then merges with the DS audience.
In fact they'll be lucky to survive the next-gen intact. If PS3 doesn't get the marketspace, those exclusive franchises will either go multi-platform or even LEAVE Sony's platform (keep your eye out for MGS4 & Final Fantasy). And knowing Sony's dependence on the 3rd party (much like USA dependence on Middle East region's oil) that will absolutely cripple them for the rest of the generation.
Sony's 1st party stuff can never compare to Nintendo's who was able to survive largely on their 1st party alone during the past 10 years of virtual 3rd parry drought.
I don't whether this exec's statement come out of fear or arrogance but I certainly know they come out of stupidity.
Knowing Nintendo's system quality compared to Sony's system quality (see Gulf War Game Boy & the Gamecube/PS2 endurance tests on YouTube.com) Sony's should be LESS priced. Their hardware is shoddily made.
The folks thinking Nintendo's stuff is worthless have obviously forgotten that Seal of Quality that saved the industry 20-something years ago. Something to be commended. The Wii's tech is complex & for the stuff they're giving us the $200 plus $50 for the pack-ins is frankly a STEAL. We should be lucky to get the Future of Gaming so cheap!
John Lucas
Tony @ Oct 11th 2006 12:11PM
@ Scott
I suggest you check the value of our currency before making uneducated claims as you have. At the time of writing $AU buys 0.7447 $US. Which is damned good for a country of 22M or so.
Also remember is it against our law to advertise the price of something without including ALL applicable taxes (as opposed to the US). So these prices include a 10% GST, add to that the massive shipping costs of our country and really...the prices are too bad.
Krevans @ Oct 10th 2006 9:20PM
I have to agree with him. The Wii IS too pricey in Australia. When you consider that the Gamecube, a console that could compete with the competition hardware wise, retailed in Australia for $329 (vs. a $650 Xbox), it's a little ridiculous that you'll be paying MORE for virtually the same hardware, with some small ugrades that probably won't cost Nintendo more than a few dollars a unit (at most). The Wiimote technology is not nearly enough to justify that price. The Gamecube is currently selling n Australia for $49-$69 AUD. So are we supposed to believe that the Mote and Sensor Bar are worth $350? Nice going Nintendo. I was interested in buying the Wii before. I knew Nintendo would be profiting, but to see just how much they are...well, I decided I'll stick out of this.
In this respect the Sony guy is completely right. Unfortunately he blew his cover right off when he applied the same words to the Xbox 360. Microsoft is LOSING money on those things, therefore I don't think that on its own the unit can be considerred pricey.
I don't believe that Sony's machine is pricey either. Sure, in comparison it is pricey, but (I hate to say this old fanboy line) when you consider the fact that it is the cheapest way to get your hands on a Blu-Ray player, you're not getting a bad deal at all. If the hardware is slightly more powerful than a 360, and we assume that they would be charging for hardware alone for the same amount as Microsoft, then you're getting a Blu-Ray player for $300-350 AUD. A standalone player costs $1500 AUD. You can't argue with these numbers. If I had an HDTV, I would rush to buy one of those things (I'm a film buff after all), and after TGS it looks like there would certainly be enough games to keep me busy in the first batch of releases. Unfortunately, I don't own an HDTV, and neither do most of the gaming population. As a result, the Blu-Ray advantage means very little to me and many others. The waves of Sony hate visible in the online gaming community have gotten ridiculous. You'd think that Sony were going to use this thing to bring about the Apocalypse of something. People are devaluing the PS3 and Blu-Ray constantly, and I can't help but wonder, what are these people's motives? For what I can see, it is a good bargain if you have the money or are interested in what it offers. Remember, just because YOU don't have an HDTV doesn't mean nobody else does. PS3 could be just what many are looking for.
I can't see myself buying a console this generation, unfortunately. Nintendo were right about one thing; that spark of originality and magic in gaming seems to have gone. It was gone a long time ago in actuality. From what I have seen, the Wii is not the console that is going to bring it back, as the majority of 3rd party releases (and thus the majority of games) will essentially be ports with tacked on 'gimmick' use of the Wiimote. So where do we find a truly fresh experience? With Microsoft? With Sony? Gears looks fun, as does MGS4, but there simply isn't enough of interest to me on these machines to justify the huge price this generation. Wii seemed like it had it all; looks, innovation, and a cheap price. But seeing how much Nintendo is overpricing made me stop and consider if I really wanted one. If it appeals to you, go out and buy one, it is still a lot cheaper than the competition. But I don't think I'll be alone in sitting out and hoping for that spark of originality to show itself this gen and convince me to rejoin the gaming race. Until then it will just look like a bunch of suits pissing money of the wall, leaving gaming forgotten.
Kincyr @ Oct 10th 2006 9:01PM
Sony is in no position to talk about their competition being pricey
BPM? @ Oct 10th 2006 9:41PM
As a long-time Nintendo fan (I won't say "fanboy" because that term usually makes people think of those with a blind followship to a faceless corporation), I DO think Wii is a bit pricey. But not by much.
(Considering the US price, anyways)
Yes, it is $50 more than the GameCube was at launch. And if you look purely at the processor chips (which are smaller, faster, and more quiet than GameCube's), then it may not seem like it's worth that $50 extra.
But, it does have more than that. Wi-fi (for Internet), Bluetooth (for communicating with the Wii Remote), and flash memory built in (granted, 512MB isn't a lot... nor does it cost much for retail anymore. You can get a 512MB USB flash drive for less than $15 now), it is still more than the GameCube was, purely from a hardware standpoint.
But, there aren't just hardware costs to make up for. There's also the R&D that went into Wii. They gotta make back the money they spent developing this thing, right?
However, considering that they used to tout the following:
1) A mass-market price
2) A Nunchuk packaged with every Remote
It really makes the Wii look pricey. $200 (with or without a packed-in game) would've been a mass market price. $250 (even with Wii Sports) isn't as much... But, it's not like $50 is THAT big of a deal.
Even so, I think it would've been smarter on Nintendo's part to market the Wii for less than they are (in ALL regions).
Infil @ Oct 10th 2006 9:53PM
To BMPOmega: I honestly do not believe Nintendo could have sold the Wii (with pack-in game and a Wiimote/nunchuk unit) for less than $250 and made a profit on it. And we know they don't want to take a loss on this. You may disagree with *that* choice, but I think it's naive to think this price is super inflated, as if Nintendo could have sold it for $200 and still made a profit.
Would people stop saying that the Wii is just a glorified Gamecube? It's based on the same architecture, which lets developers become familiar with it more quickly. All those "unused Gamecube parts" that Nintendo has "laying around" won't do them any good now. Everything in the Wii is brand new. The processor, the GPU, the motherboard, everything.
When you consider what the Wii is (in that tiny box!), I think people will start to objectively say that it's worth $250. Selling it at a lower price point is just what we like to think Nintendo should have done. But it's easy to scrutinize when you don't have to worry about the implications of such a decision, isn't it?
Moogle @ Oct 10th 2006 10:13PM
Re: some comments defending PS3 being worth the money...
Value isn't measured by how much something costs to make. We know you'll claim the PS3 is twice the gaming experience of any other console (regardless of what you really think) but I have a hard time seeing anyone else agree. :)
Cheers!
WiiOn360 @ Oct 10th 2006 10:37PM
As a 30 something yr old gamer... I would rather pay the $1000 price tag, for new technology throughout, than pay $400 for a Xbox1 in a new case with a gimmicky controller, as it's main selling point.
Give me a PS3 to sit next to my 360 anyday, over another title starved nintendo console.
Foetoid @ Oct 10th 2006 10:39PM
@36. 'The Aussies need to raise the value of their currency or stop bitching.'
What a load of shit mate, do you even live in australia like i do, you need to shut the fuck up if you dont know what your talking about. Everyone in aus pays a 10% GST on everything, as i believe, american prices DONT include the tax you pay at the counter. Aussie prices do, then include all taxes and mark-ups. We also pay $99.95 for all our new games, but americans pay $49.99. If you did a straight currency conversion, we are paying a premium. I bet you got on here and looked at that thinking 'dumb aussies, should increase the value of thier dollar'. IF you were smart enough to actually do a conversion from US$600 is about AUS$805.... we do pay a serious premium. Even our 'low end' ps3 (20 gig one), we pay AU$825 which is more than the above conversion anyway. So yes, it is a 'bit pricey' we are paying 25% extra for a console that you pay for. Next time, use your head.
NoHitHair @ Oct 10th 2006 10:57PM
My word some people are arrogant about their ignorance. Apparently, for many of those defending the PS3's price point, the logic works like this:
IF
(actual cost) of Machine X is GREATER than (retail cost)
THEN
Machine X must be a good value, regardless of absolutely any other variable.
IF
(actual cost) of Machine Y is LESS than (retail cost)
AND
Machine Y has GREATER features than Machine X
THEN
Machine Y must be a terrible value.
All that seems to matter in the minds of PS3 fans is that since they're spending less money than Sony is on the same product, they must be getting a good deal. The features, games, external support and the other numerous variables that inherently associate with all video game machines are tossed to the side just because Sony will lose money with every system they sell.
I'm looking to sell a car I made entirely of paper mache'. It cost me over $150,000 to manufacture (because I chose to buy the paper mache' from someone who was selling it for $150,000) and it doesn't have an engine, seats, wheels, transmission, fuel tank, steering wheel or windows, but I'm going to sell it to you for only $75,000. Sound like a deal? Anyone wanna buy it? I'm losing money so it MUST be a great deal!