Sony CEO says they're looking to 'refine' PS3 price

by Alexander Sliwinski { Jun 14th 2007 at 10:33PM }

It looks like the madness we've known as the PlayStation 3's price point will soon become slightly more reasonable as Sir Howard Stringer, the über-boss chief executive of Sony Corp., told the Financial Times they are looking to "refine" the PS3's price. In the megaton interview, Stringer says that Nintendo has a "very good business model" and sees the Wii and PS3 are "complementary and supplementary" consoles.

According to the Financial Times, Sony stands to lose $488 million in their games division this fiscal year as sales have been "lackluster" due to the price point and selection of software. Stringer says that the software situation should begin resolving itself by the end of the year and says, "That [price cuts] is what we are studying at the moment. That's what we are trying to refine."

Analysts have talked about the PS3 price drop being around the $100 mark, which would make it the same price as the now deceased 20GB model of the system. But, for all we know Sony could shock us all and make the PlayStation 3 the same price as the Xbox 360 -- causing all manner of hell to break loose. And who would be the winner? The consumer, of course.

[Via GameDaily.biz]

Tags: drop, playstation, price, ps3, sony

Reader Comments (Page 1 of 2)

hvnlysoldr @ Jun 14th 2007 10:44PM

"PS3 for the first time this year beat the GBA. People we need a solution for more sales."
"You don't mean price drop do YOU?"
"Yes, we've been dreading this moment since E3 '06..."
"No I'll work an extra job and buy more PS3's"
"Get a hold of yourself man, the last thing the stockholders need to hear is executives losing nerve."
"How are we going to announce it?"
"How about comparing our price to our competitors? It'll show humility and at the same time fleece unsuspecting consumers."
"Didn't Nintendo try that with the GCN? They put it at a modest price but had to immediately cut it resulting in general consumer lack of confidence?"
"No because we're Sony."

Matt B @ Jun 14th 2007 10:51PM

I'm sorry the PS3 price is more than you want to pay. But things worth more are more expensive. It's the way it has always been.
Do you want a futon, a couch, or a leather couch? You pay accordingly.

scott @ Jun 14th 2007 10:51PM

"That [price cuts] is what we are studying at the moment. That's what we are trying to refine."

Sounds to me like they're trying to not _loose_ as much money. So this refinement we're hearing about is more likely internal (hardware dev costs), and not something the consumer is likely to see soon. I'd be happy if I were wrong.

Scott @ Jun 14th 2007 10:53PM

Second straight month of sub 100k sales in North America and it looks like they are heading into a third with June.

That's a lot of refining.

Milkshake @ Jun 14th 2007 10:56PM

A price cut and lot of games people actually want to play that acutally look better for all the supposed power of the cell and you never know, they may sell a about 10k more a month big deal!

like2trp @ Jun 14th 2007 11:02PM

@ Matt B

So your entire comment boils down to

If something is more expensive it is obviously better.

They must LOVE you in electronics stores and the like. Or any place that relies on commission. I mean why look at what a TV/Washer/Dryer/car can actually do if you can simply look at the price. I mean manufacturers would NEVVVVVER overprice their products would they.

@ the actual post

"sees the Wii and PS3 are "complementary and supplementary" consoles."

Sounds a bit like the Wii60 idea that MS was pushing no? Except well, you can buy a 360 and Wii for the price of PS3, can't do that with a PS3/Wii combo.

Regardless though until the PS3 gets some more (and better) games it's not worth it no matter the price IMO.

BulletToothTony @ Jun 14th 2007 11:00PM

@3 Scott Said "Sounds to me like they're trying to not _loose_ as much money. So this refinement we're hearing about is more likely internal (hardware dev costs),"

THIS IS HOW RUMORS START!!! by some idiot thinking with their little brains.. sony would not cut in hardware if it's gonna affect the ps3 performance and everything that already offers, and b4 you say it, yes the emulation chip was replaced with a firware allowing ps2 backward compability just as good as the ones with the chip..

so don't say "Sounds to me like" cause honestly, ps3 has not cut down on great accesories.. unlike other consoles.. they rather loose even more money in the beginning and satisfy the customer than deliver a crappy console and charge less..

le screech! @ Jun 14th 2007 11:06PM

Bought my PS3 on CList and it only cost me $450. There are plenty of great deals on this console if you only barely look. It's really a great home media center, I'm not into the PS3 for the games (that's what my Wii and Xbox 360 are for). Yaaaaay!

footlong! @ Jun 14th 2007 11:05PM

I wonder if Microsoft would lower its price upon seeing Sony doing so. Even if they were priced evenly the 360 is the better game system (keep your dvd crap to yourself)with the better game library. It should outsell the PS3 anyway

Quentin @ Jun 14th 2007 11:14PM

If they cut the price $150-$200 the Playstation 3 would sell like hot cakes this holiday season !

Dragod @ Jun 14th 2007 11:08PM

It's not so much the price that's keeping me from buying a Ps3. What I need to see for me to buy a ps3 is more games worth my money. The $400 I spent on my 360 wouldn't have been worth it if I was only playing Halo 2 on it. I could play that on my original Xbox. Sony needs to create more games for the PS3 that are great. If God of War 2 had gone to PS3 instead of the PS2 it would've been better for the system. If all the good games are on the older system, why by the new one? And I didn't even buy a PS2.

Second, I need to see more online games. Other than games like Guitar Hero, the only thing that made me buying my Xbox 360 worth it was having great games that had hundreds of hours of replay value because of online. With Xbox Live, the extra $50 was worth it. Gaming became something I did for a few hours at a time, rather than to beat a level of Halo 2 on Legendary before I died and got sick of the game after 30 minutes, justifying my purchase. You can only play Guitar Hero for so long before you want to go online to chat with someone as you're playing something like Call of Duty 3.

Not only more games with online, but better support for online games. The PS3 allows for Bluetooth headsets to be used, why leave it out of a tactical shooting game like Call of Duty 3? They need to standardize things like voice. Every online game should allow for voice.

PS3 has a good thing going with free online, why not exploit that and make it awesome?

I want to like the PS3, I really do. It seems like an modest value, but only 1 or 2 games worth buying doesn't make me want to spend $600 on it. get to 10 or 15 solid games and I'll be more interested.

Milkshake @ Jun 14th 2007 11:09PM

@8

I agree MS holds all the cards at the moment. MS will be able to drop the price of the 360 to make it and impulse buy or one that parrents can afford for their children like the Wii

Shiro @ Jun 14th 2007 11:18PM

If the PS3 price dropped to the 360 price, I'd buy it.

Hahaha, but it would NEVER happen. So I don't plan on buying a PS3.

BPM @ Jun 14th 2007 11:23PM

@BulletToothTony
Hi, Tony. You must've not been around for the PAL launch of the PS3. If you were, you would've known that they did, indeed, cut in hardware. They had removed the PS2 processors. Switching from hardware emulation to software emulation, in order to save on development costs. The result of this? Backwards compatabilty dropped big time.
And, I've interpreted Scott's comment differently. I felt he meant looking into methods to make the existing hardware cheaper.
One thing's for sure, though, is SCEA and SCEI are going to eventually remove the Emotion Engine, to switch to software emulation. This will save on costs a bit. Though, I'm sure it won't have an immediate affect on the consumers, since many PS3s WITH the EE still go unsold.
Blue laser diodes have been getting cheaper. Even Sony's own Blu-ray Disc player has dropped to $500, so Sony can no longer use the excuse that PS3 is the cheapest BD player on the market. So, PS3 prices would have to drop too, right?
Yields must be getting better on Cell and RSX, right? With less wasted materials, that would bring down the costs as well.

@Matt B:
If I wanted to, I could go out and buy a PS3 right now. I don't want to, because I don't feel it is worth $600. For several reasons:
1) More money than I'm willing to pay for a game machine, which is all I want.
2) Not enough compelling games out now.
3) I know the price will eventually drop, because of:
(a) Everything drops in price over time
(b) PS3 sales haven't been too hot, so they're going to do whatever they can to bring it up.

Jon-Angelo @ Jun 14th 2007 11:26PM

@Matt B

Jebus, when are you going to admit that something is wrong with the way the PS3 is selling, I mean, my god, EVEN SONY KNOWS SOMETHING IS WRONG!

Yes, 600 for the PS3 with all of its features is a steal, BUT obviously people don't care, 600 dollars for a videogame console is still 600 dollars for a item that isn't a necessity, no matter the value.

I have a PS3, so far I've only bought Resistance and I own about 20 Blu-Ray movies and every other major game I've bought for the 360, something is wrong with the PS3 and Sony needs to fix it fast.

Ken @ Jun 14th 2007 11:26PM

By "refine" they mean they are going to be taking features out that are unnecessary.

bearattack79 @ Jun 14th 2007 11:33PM

PS3 is making history thats for sure. It will go down as the most talked about and never played console EVER!

Milkshake @ Jun 14th 2007 11:34PM

@ Matt B

You are like the contestant on a Pop Idol who's singing stinks like a bag of wet dog, but still you leave screaming like a girl im gonna be a star. Wake up smell the coffee the PS3 is not doing well at the moment and it does need a price drop and some games

Snukadaman @ Jun 14th 2007 11:39PM

It's really a great home media center, I'm not into the PS3 for the games (that's what my Wii and Xbox 360 are for). Yaaaaay!"

being a gamer this has got too be the saddest post i have ever seen...but then again 3 million ps3 owners have the same idea...if only they could of waited and shown sony that their price is too high with no games...

Milkshake @ Jun 14th 2007 11:59PM

Sony, dont tell us when the Next Gen starts

We will tell you with our wallets!

samfish @ Jun 15th 2007 12:07AM

"I'm sorry the PS3 price is more than you want to pay. But things worth more are more expensive. It's the way it has always been.
Do you want a futon, a couch, or a leather couch? You pay accordingly."

If the PS3 is a leather couch, it's not a very comfortable one, then.
But it looks fantastic in your living room (which is probably decked out in zebra stripe motif), so I guess that's all that counts.

Meanwhile, my Wiifuton folds out into a heated bed and rumbl- I mean, vibrates.

All that said, while I doubt it'll happen for a good long while, a PS3 price drop to $400 would really crush the 360.

samfish @ Jun 15th 2007 12:10AM

samfish @ Jun 15th 2007 12:09AM

h0mi @ Jun 15th 2007 12:18AM

$400? I'll get one. $500? If I can sell my ps2...

BPM @ Jun 15th 2007 12:24AM

Posting problems again, eh Sammy?

BPM @ Jun 15th 2007 12:25AM

Posting problems again, eh Sammy?

Azorean @ Jun 15th 2007 12:20AM

Do you ppl really think that if the PS3 were to drop it's price to that of the current 360 price that MS would just stand there holding their dicks? NO, MS would drop the price of the 360 by $200 as well and really kill the PS3! Please ppl don't kid yourselves into thining that the PS3 will ever be the same price as the 360 any time soon.

h0mi @ Jun 15th 2007 12:28AM

I won't hold my breath on any ps3 price cuts... dont expect any until closer to Xmas unless sales barely reach 50k/month over the summer, or if the HDDVD player rebates/discounting causes that 2-1 disc sold ratio to even out. I'll get a ps3 without hesitation for $400 but I doubt it will hit $400 this year.

"I'm sorry the PS3 price is more than you want to pay. But things worth more are more expensive. It's the way it has always been."

But not all things that cost more are worth more.

"Do you want a futon, a couch, or a leather couch?You pay accordingly."

4 words-

Monster cables. Bose hardware.

Justin @ Jun 15th 2007 12:33AM

"All that said, while I doubt it'll happen for a good long while, a PS3 price drop to $400 would really crush the 360"

And if Sony could drop the price to $400, what do you think Microsoft would do? Raise the price of the 360?

I'm beginning to think that the $199-249 price range really is a sweet spot. I think thats a big factor in the Wii's success (along with being interesting to people who aren't traditionally attracted to gaming). Microsoft is in a position where they could drop the price of the core system into that range (which, I believe, would boost their sales numbers). I don't think Microsoft could (justifiably) put the Premium in that range. Sony wont be in that range for years.

samfish @ Jun 15th 2007 12:31AM

Soitenly seems that way.
And here I thought my Erectile Dysfunction sucked.

BPM @ Jun 15th 2007 12:47AM

Ahaha, my double post wasn't meant to poke fun at you, Samfish. Completely unintential, I assure you.

But much funnier that way, isn't it?

3cubedminus3squared @ Jun 15th 2007 12:43AM

I could buy the PS3 if I wanted to, but why would I?
Its not an impulse buy. its a 'okay I guess I'll skip this mortgage payment so I can play Motorstorm' kind of thing.
I'm happy with what my 360 has offered.

ZapDash @ Jun 15th 2007 1:01AM

PS3 600 -> 400
360 400 -> 250
Wii 250 -> 150 or 100

Microsoft would certainly drop at least a hundred if not more and with all the immediate profit Nintendo has made on the Wii, they could drop almost any amount and be safe. Sony must know this but any price drop would be a good move for them.

ZapDash @ Jun 15th 2007 1:05AM

Cuja @ Jun 15th 2007 2:13AM

Marketing something as a half ass computer now deciding in reality it's a game console. Sounds like to me that the PS3 is suffering from an identy crisis.

ill trooper @ Jun 15th 2007 2:17AM

BulletToothTony... Jesus, dude... chill. "THIS IS HOW WAHWAWAwawaw..." Damn dude that is a RUDE post in response to a very logical alternate interpretation of "refinement." I kind of think YOUR post is how rumors start: a hard-line misinterpretation with no leeway for other meanings.

I read it the same way 'scott' saw it - that Sony might be looking to 'refine' the profitability through manufacturing optimizations or something. I would love to see a price drop, but it's an expensive unit, and we all hear it's a loss-leader, if you know any basic economics principles... I already own one and I'd love to see it purchased by more people - it's a cool system, runs smoothly and the interface is snappy, it's a hella tweaky, durable 'open' device with room for user customization (hardrive/linux/headsets, camera, etc., and a few nice extras, with frequent software updates that have been major each time so far.

I've told many people I know, "The only thing wrong with the PS3 is that the 360 is available."

Meaning that... The 360 is accomplishing so much that the PS3 should and maybe could be doing, except the 360 has the mindshare of gamers and developers at the moment, so Sony has an uphill battle getting that back - buying a PS3 and nothing else right now is essentially locking yourself out of most of 2006-2007's pertinent gaming.

And speaking of rumors, tell me, when did this rumor that the word 'lose' is spelled 'loose' start?

Otis Whitaker @ Jun 15th 2007 3:42AM

All Sony has to do is bite the bullet, and make the PS3 $300. Yes, they'd lose a whole lot of money, but the rewards would greatly outweigh the losses. Couple this with a restart of their whole advertisement campaign, and make it a rampant campaign... and Sony would easily be back on top. Remember folks, wether you want it or not, the mass market mostly wants it.
That's why most everyone is sticking with the PS2!

Burnt Meatloaf @ Jun 15th 2007 5:44AM

OK, now how many people bought a 6GB model because they had $600 to burn and didn't want the lowly $500 model, or because the 20GB model was simply out of stock? The answer to that question will tell us right away if a price drop will spur sales, or new games. Too bad the 20GB model was pretty much wiped out just when PS3s were widely available. I can't imagine paying for a 60GB model, myself, but the fact is that the 20GB model didn't sell well.

*Otis Whitaker: "All Sony has to do is bite the bullet, and make the PS3 $300. Yes, they'd lose a whole lot of money, but the rewards would greatly outweigh the losses."

So, the solution to losing money is to lose money for several years? Sorry, but with the hard drive in there, it's going to be a while before Sony's manufacturing cost gets even close to $300, and nobody is going to buy 20+ games for each PS3 so Sony can survive on game licenses alone. I seem to recall that the 3D0 eventually got to a $100 price point, and it still died.

Sony has a chance to repair their image next gen, but if they lose billions over the next 5 years, PS4 isn't likely to be approved by stockholders, no matter what it is.

� PINION CORPORATION � @ Jun 15th 2007 7:51AM

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You guys don't get it?
Refine: He can't say "lower" the price, because although he will, there'll be a price increase in Europe. Because we all know how good they've got it.
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Elbone @ Jun 15th 2007 8:09AM

Everyone.

Pay no attention to MattB. he is a Sony shill. I know this because he posts on another board i frequent under the name beginning with Matt. He is payed by Sony to some kind of work so he is always repping the company name.

I constantly own him the other board. He is always trumpeting the horns for Sony and never thinks they do anything wrong.

In other words he is to be ignored.

Evan @ Jun 15th 2007 8:19AM

@Matt B "I'm sorry the PS3 price is more than you want to pay. But things worth more are more expensive. It's the way it has always been."

How is a PS3 "worth more"? When you boil it down, the "worth" of a gaming console is its entertainment value. The Wii offers something new and fun for only $250, game included! The 360 offers hundreds of hours of online competition for around $500 (system+live+game). How much entertainment value does the PS3 offer? The PS3 lacks the novelty of the Wii and lacks the game library of the 360, so right now, the PS3 offers the least entertainment value but costs the most!

Evan @ Jun 15th 2007 8:28AM

@ZapDash "Wii 250 -> 150 or 100"

Nintendo won't be cutting the Wii's price in half. Even at the current $250, the Wii will probably sell-through this coming Christmas.

Ghen @ Jun 15th 2007 9:14AM

My faith in Playstation is mainly due to the fact that Final Fantasy can't be played elsewhere. At $500 I'll buy one. At $400 (xbox price) I'll buy HD cables with it.

If the playstation drops its price, its almost certain that the Xbox price will drop too. Microsoft has less to loose.

Karen @ Jun 15th 2007 10:14AM

Oh, MattB is Matt on Engaget. I thought they sounded alike.

Kevin D @ Jun 15th 2007 9:32AM

Sony is losing a few hundred per console as they make the current 'version'.

How much more can they lose to sell them? If they drop it $100, MS will counter and Sony will only sell a few more, but lose even more money. There are not enough games for PS3 owners to buy to recoup that extra $100.

If they drop it $200, MS will counter and Sony will sell maybe another Million. They will lose a TON more money in the process and being that there are not enough games to recoup those astronomical losses, they lose even bigger.

Also, remember that whatever they do price wise, once its dropped (not just an XMAS sale), the price HAS to stay that low. Even if it drives it into backruptcy, they cannot re-raise it. Customers would revolt big time.

Sony is in a bad situation and they know it.

My prediction is they keep it the same price (or drop it $49). MS counters, and they stalemate as is.

As for the next few years, its not gonna be good for Sony.

Good luck Sony. You really need it this time around. (you messed up and got caught - Dual 1080p ports, 4D, 2nd job etc etc).

whosmav @ Jun 15th 2007 9:32AM

Matt B eats turds for breakfast.

ZippyDSMlee @ Jun 15th 2007 9:58AM

Most gamers agree the PS3 is more than they want and they refuse to pay that much for a system thats still broken from its launch, sony miss big by not riping out all the wireless stuff making it optional and selling the PS3 for 350,at under 400 it would have knocked HDVD out of the water and made itself king the PS3 will never make up the moeny spent on deving it but ti can still regain the number 1 console spot but only if they they reduce the price to 400.

TJ @ Jun 15th 2007 10:09AM

6. @3 Scott Said "Sounds to me like they're trying to not _loose_ as much money. So this refinement we're hearing about is more likely internal (hardware dev costs),"

THIS IS HOW RUMORS START!!! by some idiot thinking with their little brains.. sony would not cut in hardware if it's gonna affect the ps3 performance and everything that already offers, and b4 you say it, yes the emulation chip was replaced with a firware allowing ps2 backward compability just as good as the ones with the chip..

so don't say "Sounds to me like" cause honestly, ps3 has not cut down on great accesories.. unlike other consoles.. they rather loose even more money in the beginning and satisfy the customer than deliver a crappy console and charge less..

YOU ARE BOTH IDIOTS FOR SPELLING IT "LOOSE" AND NO ONE SHOULD CARE ABOUT WHAT YOU HAVE TO SAY!!!! HAHAHAHAH

Matt B @ Jun 15th 2007 10:18AM

I'm not going to apologize for being able to afford the finer things in life. Value is based on personal perception. My opinion vs. yours. In my mind I win, in yours you win.

@ Elbone - never heard of you, never been "owned" by anyone.

@ whosmav - If you mean turds like you, then ya.