Sony exec talks further PS3 price slashing in Japan

by Blake Snow { Jan 31st 2007 at 2:15PM }

After just two months since its launch, the Associated Press weighs in on PS3 price cuts, specifically further price slashing of the console in Japan. If you'll remember, the country already enjoyed a 20% reduction in price even before Sony launched the PS3 last year on November 11.

From the report: "Although Sony is blaming its faltering profits partly on PlayStation 3 price cuts in Japan, a senior executive said Wednesday that further slashing prices may be in store for the just-launched video game machine."

The senior executive in question, Japanese VP Takao Yuhara, said pricing is among the factors being considered to help the company meet its break-even goal by March 31, 2008 but that "no additional price cut has been decided." And though the article seemingly focuses on price strategies specific to the Japanese market, you gotta believe the company is thinking seriously from a global perspective the way things are going.

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Reader Comments (Page 1 of 1)

fox619_master @ Jan 31st 2007 2:20PM

another price cut for japan while we still havent got one, nice one sony

fawazr @ Jan 31st 2007 2:22PM

I don't understand the logic behind calling this Sony bashing. It's news. It's important to all those people who have their retirement funds poured into Sony stock. It's important to Sony employees who don't want to be laid off in 9 months. Stop with the whining already. If Sony was doing everything right, there wouldn't be any bad news (or any newsfor that matter) to report.

Crono @ Jan 31st 2007 2:22PM

I don't think Sony's planning on cutting prices anywhere but Japan. They've slashed their prices once already (pre-launch). I think they're concerned that Nintendo is winning their home market, and realize that if they don't get all the Japanese developers on board, they're going to have SERIOUS issues down the road. The only way to get developers on board is to have a significant install base.

Wii outsells PS3 in japan 4:1. That is a serious issue.

The price drop will occur only in japan because prices are so jacked in europe they can off set a cut on the homefront. Sony doesn't really give a damn about america or westerners (see Sony marketing in US and UK).

deaftly @ Jan 31st 2007 2:24PM

its to expensive???? , get outta town

scott @ Jan 31st 2007 2:24PM

Yea this really isn't sony bashing. Don't get me wrong, I'm a huge fan of sony bashing, but this is just news, it's not doom and gloom news or a knock at how bad sony is, just normal news.

Dadidito @ Jan 31st 2007 2:27PM

Im not bashing sony either (Hell I am one of those 10 people who owns a PSP and incidently am boggled why it hasn't succeeded) but is it unfair to charge Europe a premium, no price drop for us, and continue to lower the price in Japan if it happens that is.

J.Goodwin @ Jan 31st 2007 2:29PM

You can't break even by losing more money on consoles. Microsoft tried that with the original Xbox and failed miserably.

James @ Jan 31st 2007 2:32PM

I'm glad this article is focused on Japan only because it means the Xbox 360 fanboys will be a little more hesitant about chiming in with childish comments. As much as they want to bash Sony, even they are not stupid enough to get into any argument that relies on sales performance in Japan.

The Wii fanboys are free to bash, I suppose, as they are kicking everybody's ass in every country they have released in...

vidGuy @ Jan 31st 2007 2:47PM

This is the problem with trying to sell a hardware driven console. The hardware is expensive, leading to high costs and high market prices. The product doesn't sell well because of the high price, but using price reductions to spur sales only puts Sony in a deeper hole if production costs can't be severely reduced.

I'd be surprised if the PS3 gets into the black before 2010.

Borat @ Feb 2nd 2007 7:27AM

The Wii fanboys can bash? Umm, they won't get next-gen graphics, nor an excellent online experience, little original IP, and very few Mature oriented games. The novelty will wear off soon anyway. Sure, I'll buy it, but that doesn't mean I'm dying for one, nor that it is truly the "Nintendo Revolution". I want it mostly to play TurboGraphX and some Sega Games I never managed to play.

A revolution doesn't take one step forward while taking two steps back at the same time.

Dave @ Jan 31st 2007 2:50PM

The UK needs on £425 fucking rip off

Diesel 360 @ Jan 31st 2007 2:52PM

Price cuts are nice, but Alot of folks wouldn't mind paying full price if Sony would just get some Killer Exclusive content for their system, Am I right?!!!

vidGuy @ Jan 31st 2007 2:54PM

Hot Wii's in standby? Well I've never....

Right after I've been playing, the Wii is warm to the touch. It is significantly cooler than the 360's power brick, though. After about 15 minutes the Wii is luke warm, and soon after that it feels like a cool piece of plastic. Maybe my Wii is water-cooled? ;)

vidGuy @ Jan 31st 2007 2:55PM

Ahh, nix that post. Bad thing about log-in messaging, I can't double check what page I'm on! :)

X @ Jan 31st 2007 2:56PM

Like I said over a year ago. Buy a Xbox 360 and enjoy. Sony fanboys are just upset because they tried to perdict the success of the P$3 and got abused by the "mother-ship." Face it!!! You got sucker-punched.

*Stop crying :(

*and start playing :)

Unit @ Jan 31st 2007 2:56PM

now why would sony ignore a price cut for other territories? It's not like the system is flying off the shelves there either.

Steve @ Jan 31st 2007 3:14PM

Maybe Sony has decided it's better to have strong marketshare in one of the three large markets instead of being mediocre in all three. It makes sense to choose Japan. It's their home market and lots of their key 3rd party developers are based there. The US, on the other hand, is physically larger and fairly distant while europe is, well, europe. It's not exactly the kind of place where you expect a cutting edge piece of technology to become widely adopted. (Has indoor plumbing caught on yet in france or is it still considered a passing fad?)

Slaziman @ Jan 31st 2007 3:18PM

Cus they already lost on those territories to the Xbox 360, their only chance now is Japan

Game Artist @ Jan 31st 2007 3:21PM

Man, its not because of the lead the Wii has. Obviously its because of how well the 360 is selling in Japan!

m3mnoch @ Jan 31st 2007 3:31PM

"Price cuts are nice, but Alot of folks wouldn't mind paying full price if Sony would just get some Killer Exclusive content for their system, Am I right?!!!"

you sure are. however, those exclusives don't come to a platform without an install-base.

m3mnoch.

dlalonde80 @ Jan 31st 2007 3:42PM

This is BS if they do lower the price. Up in canada we were paying 649.99 for the PS3. Now they have gone and raised it to 699.99. To hear that Japan is getting it lowered not just once but twice is BS. Can i look forward to another price rain in Canada?

Griking @ Jan 31st 2007 3:46PM

Re: 11

Actually for me it wouldn't really matter if Sony released the greatest game ever made for the PS3. I just can't justify paying $600 for a game console. There are just too many more important priorities in life.

Sensai @ Jan 31st 2007 3:51PM

'Wii outsells PS3 in japan 4:1. That is a serious issue.'

Everyone manages to forget that there are more Wiis then PS3s. The Wii is outselling the PS3 right now just because it has more units...right now, saying that the Wii is outselling the PS3 isn't showing anything, except that Nintendo was better prepared for the launch.

And #18 made me laugh.

Slaziman @ Jan 31st 2007 3:55PM

@22

Except that the Wii is selling out and the PS3 is not. If there was an unlimited supply of both, the Wii would be outselling the PS3 10:1

Ya rly.

Mark Felps @ Jan 31st 2007 3:58PM

#22 What kind of crack are you smoking? You can't find a Wii anywhere, but both here and in Japan there's little difficulty in finding a PS3. The retailers in Japan are beating Sony to the punch by dropping prices on a console that launched less than three months ago. That's a big hairy problem, particularly when it's happening in sony's backyard.

Seriously, when Sony can't get a game in the Japanese top ten and MS can, you know there's a problem.

Fox @ Jan 31st 2007 8:26PM

Sensia, the PS3 has plenty of stock in Japan. Besides, even if it was due to stock constraints, if Sony can only supply the 20K a week the system has been selling, than that's their own fault for completely botching the launch supply.

Perhaps there are more Wii's in Japan, but that doesn't affect the fact that the PS3's that are in Japan aren't selling.

With all due respect,
Fox

AirIntake @ Jan 31st 2007 4:06PM

It's almost like Sony knows exactly what they need to do to succeed, but then choose to do the opposite.

LongshotX @ Feb 24th 2007 5:58PM

Sony should make the Sony Pi , it'll have Playstation 2.5 hardware and motion controls. Plus cute little Pi math symbols. Only then wil they be able to compete with the Nintendo Donkey Kong-like Giant.

LongshotX @ Jan 31st 2007 4:11PM

Sony should make the Sony Pi, it'll have Playstation 2.5 hardware and motion controls. Plus cute little Pi math symbols. Only then will they be able to compete with the Nintendo Donkey Kong-like Giant.

Kevin D @ Jan 31st 2007 4:15PM

Ok, so they F'ck North America and are about to rape Europe with their price gouging (and lets not forget canada), then they decide to LOWER it in Japan.

F Sony... They deserve to die a painful death...

Andrew @ Jan 31st 2007 5:21PM

@22

Actually it saying a lot as there are PS3's just sitting on store shelves while the Wii is impossible to find. How many units do you think the Wii would sell if there was no shortage of units? Probably a lot more the the 4 some-odd million it has sold. Meanwhile, the PS3 has only sold 1 million units, and it can be found at80% of the stores you walk into.

Scott Krueger @ Jan 31st 2007 4:38PM

PS3 is $500 not $600.
Mr Gates is coming, get back to Work.

choda boy @ Jan 31st 2007 5:12PM

# 28 up here in canada, 699 back to work now fanboy

puddlejumper @ Feb 1st 2007 1:46AM

@ #20

yup, that's why it's our duty as canadians to not buy a ps3 until the price is comparable. in the meantime i will continue supporting the best console out: the PS2!

GD86 @ Jan 31st 2007 5:22PM

It makes sense to me. Sony's always been the choice if you enjoy japanesse devoluped games. They need to keep that base to keep their area in gaming. The more they can show they are willing to fight for this install base the more willing those people will be willing to stick with them. Also its worth noting that japan gets many more games then we do that often are part of the big devolopers yearly releaces. Sony want's to keep those people happy knowing that these titles which probably won't have the benifit of a US or European release will still have a respecitible install base so they will be willing to stay with Sony on the bigger titles.

Also on the whole you can't make profit while taking a loss on a console. That's an idea that many companies use. The best example I can think of is walmart. They advertize item Z at a price that is a loss for them. People come and buy the item X, but at the same time since your already in the store you buy Items A - X which they make a profit on. They hope that on average they will make profits surpassing the loss they take on item Z and at the same time earn some consumer good will.

Both the X-box 360 and PS3 operate on this general principle. You by the console and Microsoft or Sony has a loss of 200 or so dollars. They hope that they will make up that profit up in:

A) The profit they make on games
B) The profit they make on peripherals
C) The Profit they make for any online fees
D) For Sony only Blue Ray movies

In the end they hope over the life of the system you'll buy enough of A, B, and C to cover up what ever loss they take.

ON that note I think that at this point Sony is waiting for a big rush of games they can ride before the price drop. They've got Reistance now. If I were a betting man I'd think a few months after FFXIII and MGS3 hit there will be talk for the price drop because you've got games that are must buys for the system that you can't just get for the 360, or if someone magically comes up with a way to lower the cost it takes to produce a PS3 or 360.

micheal82 @ Feb 1st 2007 9:16AM

When will their be a price cut for North America? First Japan got a price cut before the system even launched, now they a getting another one. Good job Sony screwing the largest video game market in the world. That is why there are PS3's sitting one the shelves at the stores and the Wii is still selling out. It is too expenxive for the average customer. Only the hardcore PS3 fanboy can justify that $600 purchase.

Steve @ Jan 31st 2007 7:15PM

I don't know why Sony would want to cut the price of the PS3. I'm sure if they wait another month, all those people working overtime to afford the PS3 would be able to afford it.

Freddy @ Jan 31st 2007 8:01PM

After FFXIII and MGS3 hit the PS3, there be some talk about making some profit and porting them to the Wii and 360.

Rubang B @ Jan 31st 2007 8:16PM

Isn't Sony losing about $240 per PS3? Let's assume that every single PS3 owner buys Resistance, MGS4, and FF13, and uhh... something else. 4 games at $60 each is $240 of games. How much of that goes directly back to Sony? At what attach rate is the PS3 profitable? Right now their attach rate is hovering about 1 or maybe even 2 now, right?

t_m @ Jan 31st 2007 9:34PM

i was in a games/dvd shop in tokyo a few days back and they had about 10 pre-owned PS3s for sale (20gb and 60gb) at a reasonable discount off the new price.. so if you want to pick one up kinda cheap in tokyo it doesn't seem too hard.

Considering that japanese people are usually willing to pay through the nose for anything new, even to queue overnight in their hundreds to pay a fortune for something as pointless as Vista Ultimate, I don't think that price cuts are going to make much difference.

Mal F4cti0n @ Jan 31st 2007 10:20PM

Mmmmmm, do you think that poster on 22 is a fanboi? I would say.....YES!!!!

Are you kidding me?

It is not an issue of lack of PS3 units! They are sitting on store shelves in JAPAN!!! But you can't find a WII anywhere in the US or Japan. Like number 23 said, if there was not a production issue, the Wii would be outselling the PS3 10 to 1!!!!!

the sixth @ Feb 1st 2007 9:07AM

blahh blahh blahh ps3
blahh blahh blahh wii
blahh blahh blahh 360

and some more blahh blahh blahh

with a cherry on top :]

Dan @ Feb 1st 2007 12:22AM

The PS3 isn't going to get a price drop any time soon.

This is just a way to keep the undecided people from purchasing something else yet. They're trying to buy some time until some games actually come out for the PS3 and and then people might actually think it's worth the money as a game console.

Smoke_Dawg_187 @ Feb 1st 2007 1:17AM

I agree with #38. This is simply wag the dog.

The only game people mention for the PS3 is Rfom. It's a good game for PS3, but not great. Sadly it's the only game fanboys go to as credibility for a system that has pretty much lost its credibility.

It's just build up and let down with Sony. For instance Motor Storm was to be 1080p @ 60fps. I believe they also wanted Resistance to be at that resolution, but it didn't happen. I recall reading a quote from one Sony saying 720p is the sweetspot, but why say that after touting 1080p so much?

josh @ Feb 1st 2007 2:52AM

"PS3 is $500 not $600."

that depends on your region... some regions are only getting the more expensive model, at least according to the news.

Martin @ Feb 1st 2007 7:50AM

If you think about it... The only reason that a PS3 costs 600 (or 500) is because a BR player means it costs 800 to manufacture. Considering that BR is about 800 to manufacture in the first place... that means the system is WAAAAYYYYY Overpriced for someone who just wants it to play games on....

Rob @ Feb 1st 2007 9:24AM

@Rubang B:

The rate I heard was that 30 was needed. That's freaking huge. I don't know that I have that many games purchased at full retail for the consoles I have combined. And I have over 200 games.

israr @ Feb 1st 2007 9:32AM

PS3 is very expensive, but for all the technology it packs in, it is worth it, unlike the Wii, which should have been sold for no more than $200. BTW I am not a blind fanboy, I am seriously considering moving to the dark side and getting a 360, lol!!

Which ever system i end up getting, i need to get a HDTV first, and this is the main problem for PS3 and also Bluray/HDDVD adoption. Most consumers are aware that you require a HDTV first, and this requires a significantly higher investment.

I think this is the main reason the 360 shipped without a HDDVD player included. 2005 was way too early for High definition to break out, and it seems early 2007 is too early also. But looking ahead to 2008 and 2009, there may be some good news for Sony. There will be a significant installed base with a Bluray player due to ps3 owners, and they will start buying bluray movies, and hence increasing Bluray adoption. (Im willing to bet that half of current ps3 owners do not own a hdtv and/or have no idea what bluray is).