Sony explains UK's PS3 price, lack of 20GB model
No doubt spurred on by the constant noise of grumbling gamers marching past his office, The Guardian's Steve Boxer decides to shed some light on the European PS3 launch in an article entitled, "PS3 Launch Price is No Fun for UK Gamers." Speaking to Sony Computer Entertainment's UK managing director, Ray Maguire, he enquires about the region's comparatively high price (£425) and the absence of the cheaper, 20GB PS3. Maguire points out that merely converting the PS3's US retail price to British currency results in a misleading figure, as it fails to take VAT into account. "There's a compulsion within the media to look at everything as a snapshot, and do a calculation, normally based on just the RRP in somewhere like the US and just the RRP in the UK," he says. "What you should do with the RRP from the US is add sales tax." However, adding a VAT of 17.5% to the US price still leaves you with £352. Maguire blames the £73 difference on potential exchange rate fluctuations, along with the higher cost of living and running a business in the UK.
Apparently, if anyone's to blame for the 20GB model's failure to arrive in Europe, it's those darn consumers. "They want to put their own media on it from day one. So a big preference has been shown towards the 60GB model. And when we look at the sales figures from both Japan and the US, that's reflected at retail." Of course, despite lacking the multiple media slots, the 20GB version can store media with USB transfer, but Maguire insists that Sony would rather have enough 60GB units available as opposed to fewer quantities of both SKUs. Our UK readers will undoubtedly let us know whether they agree or not.
Reader Comments (Page 1 of 1)
Moe @ Feb 1st 2007 9:06AM
From my own experience... the media slots are pretty much useless unless if you're planning on transferring pictures or small files. The only thing to like about the 60GB model is the WIFI!!! and the extra space.
crazyrabbits @ Feb 1st 2007 9:08AM
Obligatory Captain Planet post
Whitster @ Feb 1st 2007 9:08AM
I have no plans whatsoever to be putting media on a PS3. If I want to look at pictures i'll look at them on my PC.
But saying that I have no plans whatsoever of even buying a PS3. A win win situation then.
Alpha2Omega @ Feb 1st 2007 9:21AM
Yeah it is expensive living here, and it doesn't help that you charge us another £73! I think just like the core 360, releasing the 20GB model would have been a means to get at some consumers who baulk at the price currently.
Rob @ Feb 1st 2007 9:24AM
And the number one reason it's only the 60 GB...
They're trying to lose less money
The Caddy @ Feb 1st 2007 9:39AM
When approximately 80% of the PS3s manufactured are the 60GB model then naturally the 60GB model is going to outsell the other - especially when there is a short supply of systems and a high demand (a situation that is fading fast, if not gone already). Their statement "So a big preference has been shown towards the 60GB model. And when we look at the sales figures from both Japan and the US, that's reflected at retail." is flawed. Honestly, $100 for media slots that have nothing to do with gaming and 40GB of hard drive space just isn't worth it - especially at the PS3s already high price point. If more of the 20GB models were available I think you'd see higher sales there.
I was at a local Best Buy last week and they had 29 PS3s just sitting on the shelf (and yes I did count). Of the 29, I only saw 6 of the 20GB model.
KaneRobot @ Feb 1st 2007 9:40AM
"along with the higher cost of living..."
PERFECT. Forget "This Is Living" - there's Sony's new European slogan.
"The Higher Cost of Living."
Zelos @ Feb 1st 2007 9:56AM
The average household salary in the UK and the US is about the same (~$45k), strange that they think we can afford more. VAT is ridiculously high over here, though.
mj @ Feb 1st 2007 9:57AM
Good call, Caddy. That is COMPLETE BS. They manufacture more of the 60gb PS3s because they lose less money on them. THEY CAN'T AFFORD THE 20gb models! And neither can the UK, I bet.
elmer @ Feb 1st 2007 10:02AM
I whole heartedly disagree with their sentiments. Yes there's VAT. No, it doesn't equal >$200 price hike. Yes there are shipping costs. There are shipping costs to the US as well. Yes, retail is pushier in Britain. But then no UK business in their right mind WON'T stock PS3 if Sony dictated margins. And it still doesn't explain >$200.
Furthermore, this still doesn't explain why Britain in particular is singled out, having similar taxation levels to the rest of Europe yet is still paying significantly more. Importation taxes are a load of crap because trade within the EU are now non-existent. Arguments regarding translation hold even less water when you consider Britain spawned the language that Americans use.
Furthermore, I'm impressed they know what the demand for 20GB units in Europe is seen as they've never tested it.
Edge of Blade @ Feb 1st 2007 10:11AM
On the one hand, they defend the price by saying "You CAN'T take US data and convert it for the UK."
Then, they turn around and defend the 60GB model by saying "You CAN take the US data and convert it for the UK."
Make up your mind Sony. The only think you appear to be sure of is how you are going to screw consumers.
Bruce Wayne III @ Feb 1st 2007 10:20AM
It IS more expensive living in here Europe. Consumer electronics have always been expensive. I mean, you can't even get a WiFi adapter for the 360 for under USD 100 (at least here) or hard drive space for that matter. The PS3 packs more features, therefore it costs more.
Every piece of electronics that Americans buy, we have to pay more for the same. Europe is not one country, you know? There are language barriers, rules and regulations, different tax systems etc. It's just more expensive doing business here. Always has been...
The PS3 is not expensive. It's sold BELOW cost price and is a feature-packed piece of hardware. Take a look at the price of a digital camera or MP3 player. That would be considered expensive, compared to what you get or compared to equipment like the PS3.
jc @ Feb 1st 2007 10:26AM
makes me glad i'm a 360 fanboy.
Markusdragon @ Feb 1st 2007 10:33AM
"They want to put their own media on it from day one. So a big preference has been shown towards the 60GB model. And when we look at the sales figures from both Japan and the US, that's reflected at retail."
Sorry, aren't they still claiming that Playstations are selling out everywhere? Only you'd need to have surplus stock to know which ones are selling better...
Kevin D @ Feb 1st 2007 10:35AM
Bruce Wayne - SDF's new Major General....
LOL...
Give it up already, its WAY overpriced as a game machine.. THATS why its not flying off the shelves ANYWHERE (like the Wii - which IS and its not due to manufacturing issues since the Wii is over 4 MILLION already). No, all the 'new techie' people I associate with are NOT getting one, (they'll get a REAL player later on if the format survives - either B-ray or HD-DVD). No one who knows anything about AV knows the original PS2 was a crap player (no extra features), so why pay so much for another crappy HD player..LOL...
Admit it, sony's BONED themselves....
You just keep on defending them (and their junk), you're either too blind to realize it, you cant admit you got sucked in by them or you're a paid shill...
Oh, in regards to the actual article, YEH, Sony is losing LESS on the 60 GB model, so they'll be pushing it the most (as already seen in N/A - on the SHELVES...LOL)..
And you poor EU people get A.zz R.aped again by Sony...
Remember kiddies... 'PAY BEYOND'....LOL...
Bruce Wayne III @ Feb 1st 2007 10:35AM
@14 You seem to forget that the RETAILER order PS3s from SONY. SONY is not pushing 20/60 out in the shops at their own pleasure. If retailers don't think they can sell 20 Gb systems, they will only order 60 Gb systems from SONY. So, yes, SONY knows what the retailer want everytime the retailers re-order.
Saneless @ Feb 1st 2007 10:48AM
"They want to put their own media on it from day one. So a big preference has been shown towards the 60GB model. And when we look at the sales figures from both Japan and the US, that's reflected at retail."
Yeah.. sure we've bought more 60GB models, but they were only 600.
If the 60GB was $750, well, I'm sure the 20GB model would've ran the show
copa @ Feb 1st 2007 10:49AM
"You seem to forget that the RETAILER order PS3s from SONY... So, yes, SONY knows what the retailer want everytime the retailers re-order."
If Sony was only shipping the retailers what they wanted, they would have set up a cargo full of Wii's sailing for the Old World right now.
bassbeast @ Feb 1st 2007 10:49AM
Why do Sony fanboys continue to CAPITALIZE THE WORD SONY? Have you ever read Howard Stringer's pieces on sOnY's corporate site? He writes it like normal human beings: Sony. You're not being more correct, just more douchey.
Steve @ Feb 1st 2007 11:02AM
I suspect Sony's storming of Europe is going to go over more like Dieppe than D-Day for them.
Jim @ Feb 1st 2007 11:02AM
I want to play games, I DON'T NEED THAT MEDIA SLOTS! Oh, and I have a CAT/5-network cable running through my home, I don't want/need WLAN.
Since the 20GB has HDMI, I'll only buy this version. I'm highly disappointed that they won't offer the console over here in Europe - and I'll wait until they have the economic version in the shop.
subsonicwave @ Feb 1st 2007 11:04AM
More BS from the downward spiral called Sony. Consumers will vote with their feet on this console. But Sony will never admit they have fuck*d up
Joe @ Feb 1st 2007 11:11AM
Blah blah MORE EXCUSES blah blah HIGH COSTS, NO GAMES blah blah ASTRONOMICAL DISAPPOINTMENT blah blah blah BUT HEY IT RUNS LINUX blah blah blah GIVE IT A FEW YEARS blah blah WII SUCKS etc. etc. etc.
Sounds like the same old song and dance from Sony to me only with a currency conversion twist. This crap makes me love my 360 more and more each day. UK gamers can hopefully sniff Sony BS like we have before too many get burned >> Leave them on the shelves mates. They're shite. Cheers.
Slaziman @ Feb 1st 2007 11:36AM
Sony was in trouble, with most of their divisions making losses, and their champion product (PS2) was at the end of it's life. They only had TWO choices for salvation: Blu-Ray and the successor of the PS2.
Seeing as it could not compete with the Xbox 360 without doing something radical, Sony swapped two flies in one go, making a halfassed blu-ray trojan designed to ride on the remains of the Playstation brand and on silly videophiles, marketing as something way more powerful than the 360 with terms such as "Cell" and "Blu-Ray", in order to appeal to videophiles and idiots, as well as on clueless people that bought it on Sony and Playstation brand loyality.
The whole point was to get a Blu-ray player into your house, and what better way to do it than with the successor of their champion product; the PS2? They will try to "make the most of it" and try to get good games on it so as to not damage the Sony brand too much. To anyone who is just looking for a game machine: keep in mind the PS3 was designed with "Blu-ray trojan" in mind and gaming as a secondary thing.
mike @ Feb 1st 2007 11:51AM
599euros = 395pounds so even with sonys excuse regarding the eurovs dollar many mnay countries in europe (who pay the same or more tax) are getting it at least £30 cheaper
lie your way out of that one sony..
chemicalcaveman @ Feb 1st 2007 12:01PM
@25
unless of course your lucky enough to live in Ireland, where we get the privilage of paying 630euro for a PS3. I just don't have 700euro to throw down on a console and game.
Ben Hobbs @ Feb 1st 2007 12:05PM
Must be all those localisation costs.....
armor to armour
color to colour
besides can't americans order from another state and skip some of the sales tax?
UpIrons @ Feb 1st 2007 12:12PM
This just confirms the fact that it is a bad practice to have more than one version of the same console, at least for launch. All it resulted in was having fewer overall units available and a lot of people who actually wanted one (what, the first two weeks maybe? before the hype was done and everyone decided Wii was what they wanted instead) ended up getting stuck buying a 20GB when that wasn't really their first choice.
jjtwalton @ Feb 1st 2007 12:28PM
What a crock of shít.
I hope SONY gets digital AIDS.
hohoho @ Feb 1st 2007 12:31PM
just check out the prices of gasoline (US) and petrol (UK). You'll understand the pain of living in europe.
The VAT isn't a one time tax you pay when you buy the console. Businesses have to pay VAT when they use services/products of other businesses. Furthermore, economy is EU is pretty protective, you'd imagine the higher import tax. Maybe an enterprising poster could check out.
Ironhide @ Feb 1st 2007 1:42PM
Does anyone recall the fate of the 3DO? Nice little system but way over priced. It launched at 599.99. The high priced killed it from the start, it just didn't know it yet. Sony is starting a rather slippery road right now assuming that gamers will be will ing to pay the entrance fee. Hardcore gamers will buy the ps3 at the existing price, but casual gamers which made the ps2 what it is, won't.
Thrawn @ Feb 1st 2007 2:38PM
425 British pounds = 832.66 U.S. dollars
Kompressor @ Feb 1st 2007 3:31PM
alright so here is what I got from this article
sony decided to wait 4 months to release the ps3 in europe, they decide to only release the already insanely expensive 60gb model, and then tack on $232 to make the price $832
microsoft should start shipping more 360's to europe
DrXym @ Feb 1st 2007 3:50PM
The PS3 is actually cheaper than the XBox 360 if you choose to take advantage of its region free games and buy imports. The same PS3 title bought online from a US store (including p&p) is something like 2/3 the price the UK. For example Motorstorm is $59.95 (+ $7 postage) = £34. The same game on Amazon.co.uk is £49.95. The savings mean after 10 games or so your console is actually CHEAPER than a 360 with its region locked games. Throw in cheaper peripherals & cables, as well as free online and it works out a lot cheaper.
phipscube @ Feb 1st 2007 3:58PM
I'd like the 60GB model without the Hard disk. I'm just going to throw a 200GB drive in as soon as I buy it. I want all the extras of the 60GB model, but not the disk, ta.
I'm gonna fill it full of media, yes. I want Blu-Ray and the media slots and the wifi. And I want some damn games too (Hopefully more to choose from in March).
So fully happy with the 60GB model... apart from the 60GB drive!
But no matter what Sony do, nobody will be happy because we all want them to die.. apparently.
BTW folks, Its going to be EVEN MORE here in Denmark. Try 4,999Kr ($873 US). We don't use Euro here and our "VAT" (MOMS its called here) is 25% (VAT in UK is 17.5%). And as one of the richest countries in the world our cost of living is sky high. Wages reflect this of course, so although not cheap, its fair.. I'm looking forward to having it sit proud next to my Xbox360 (cost 3199Kr = $539). I like anything new, its what makes this industry exciting. Killing Sony would be such a shame, they have brought alot to gaming over this past decade.
Folks spouting Anti Sony remarks constantly are becoming increasingly worrying. Why all the hate? Do you really want a one horse race? Put your hand up if you wish Sega were still making fantastic consoles like the Dreamcast...
There is so much negativity nowadays amongst gamers and it soooo fuukin trendy to hate.
Go ahead and flame me for not giving Sony a hard time, im not listening to you.
t_m @ Feb 2nd 2007 2:20AM
its region free right? Surely all UK gamers should just pick it up on import, or from ebay US.
I just wish I could do the same for a Wii.
evilplushie @ Feb 2nd 2007 8:35AM
Uh...I was under the impression that Japan and America were one region for Ps3 and europe was another region, ergo PS3 still regionlocked, americans and japanese rejoice, europeans still screwed.
Saneless @ Feb 2nd 2007 9:40AM
"besides can't americans order from another state and skip some of the sales tax?"
Not always. if they have a store in your state.. and technically I'm supposed to pay taxes on it. Yeah right.
Also, with something like the PS3, shipping would probably offset any tax savings.
John @ Feb 2nd 2007 2:09PM
I always get any console that comes out, and being sick to death of Sony shunning Europe when it comes to releasing any gaming hardware I decided to import a 60GB PS3 from the US. Luckily I didn't get charged any import tax.
60GB PS3 - $599 USD
Resistance Fall of Man: $60 USD
Express shipping to the UK - $100 USD
Saving $167 and saying a big "f*ck you" you Sony - Priceless
Pedro @ Feb 3rd 2007 10:07AM
I love sony. They chastize MS for twin skus and then do the same. Then they make one SKU an utter gimp fest that can never be upgraded and people get mad. Sony fixes it and acts smug.
Then they announce that the sanely priced model (the one they lose the most money on) will only account for 20% of total stock. Then when the 20 gig sells only a quarter of what the 60 gig sells, they claim no one wants it, so they don't use it in europe. Then when people are pissed, they blame consumers.
They should just change their slogan to that line from Deliverence:
"You got a purdy mouth..."
I'm at the point where I'm not even mad at sony anymore. Anyone who STILL buys a ps3 in europe after all the lies, disrespect and price gouging, deserves to be raped. And i'm not talking about the pocketbook either. At this point, any euro who buys a ps3 deserves to be raped by hill people.
alex @ Feb 9th 2007 7:34AM
i'm confused - i thought everyone hated microsoft for its casual world dominance i don't see that Sony is any worse than the others. Plus it's a business - if you want the product at the price offered buy it if not ignore it. It's not like they are a government sponsored monopoly.
Mister G @ Feb 19th 2007 10:48AM
Yeh true but i thought sony wouldve realised that when it gets released in europe that if we all want the 20gb model we,ll just order it from japan and that also means we can play all games from around the world not just the european ones.
I remember when i wanted Gta san andreas to come out in britain and i went to america and they were selling it there but i couldnt buy it because my ps2 cant take it and it isnt chipped so i missed out on a wonderful oppurtunity. Yours Sincerely
Mister.G