Sega: Better pricing will be key for PlayStation 3

by Ludwig Kietzmann on Jul 2nd 2007 2:45PM

What a rough existence the PlayStation 3's price tag must lead. Blamed for being Sony's biggest stumbling block and derided by many since its birth, it can't even leave its quaint Cornwall home for fear of being cut, dropped, squashed, slashed or violently diminished. In an interview with Reuters, Sega Corp. corporate director Masanao Maeda openly admits that he, like many others, would probably assault the PS3's price if he ever ran into it in public, noting that a substantial cut before year's end is needed to increase demand.

"Name brand, price and software are what count," says Maeda. "Since it's getting difficult to make software availability a differentiating factor, superior marketing and pricing strategy will be the key for Sony." Maeda makes an excellent point in highlighting the importance of software, an issue that upcoming PS3-exclusive games like Heavenly Sword and the unfortunately named Uncharted: Drake's Fortune certainly appear to be addressing -- at least as far as Western audiences are concerned. Putting the PS3's price under the knife would likely rejuvenate the system worldwide, though whether or not Sony will go through with it this year remains to be seen. In the meantime, we'll continue leaving menacing messages on the price tag's answering machine.

Source

Tags: Europs3, PS3, PS3 price cut, Ps3PriceCut, Sega, Sony

Reader Comments (58)

THANK YOU CAPTAIN OBVIOUS

Hello Clarice.

from Sega? Wouldn't that be like Zune giving Ipod tips?

especially when it's the same tips from everywhere else already. Geez. Thank Sega, love your console, but not enough to actually getting one.

"better pricing will be key"

No shit.

"Wouldn't that be like Zune giving Ipod tips?"

If Microsoft sold music on the iTunes store and also made iPod accessories, maybe. Oh, and didn't have a competing player.

"Geez. Thank Sega, love your console, but not enough to actually getting one."

What century are you living in and where can I find your time machine?

I don't think there will be one until the 360 gets one. To me, the price point is the same as a 360 plus and HD DVD drive except the PS3 has a bigger HD and Wifi.
The 360 actually set the market price, Sony is competing at the same price.

On the list of game console makers to take advice from, Sega is probably pretty low.

It's clear they don't get Sony's strategy.

I...also don't get Sony's strategy.

The $600 is a one time payment... unlike 360 where its $140 every 3 months or firmware update.

thats only reason i dont own a ps3 it cost too much.

"I don't think there will be one until the 360 gets one."

I believe it's the other-way around. Microsoft's gaming/entertainment division is trying hard to finally become profitable, so I wouldn't believe they would want to do a price-cut until Sony does.

As for a PS3 price-cut, I believe Sony probably needs to cut prices lower than what's been achieved so-far in manufacturing cost reductions (which sounds to me to be around the $100 mark). A $100 price cut would increase sales, but I don't think it would re-vitalize the PS3 brand name. A $200 price cut would be really good, but I doubt Sony is willing to take that much of a hit (but I hope I'm wrong). It appears to me the most practical and effective tactic would-be to have a $150 price cut. IF they can cut prices by that and have a solid game line-up for the holidays, I believe Sony can have strong holiday sales.

"The 360 actually set the market price, Sony is competing at the same price."

Same price, you can't be serious?

$400 (for a 60gig or so) and they'll definitely have my attention.

Did you even read my post joedaprofessor?

Read it again.

I read your post Matt B, and I call bullshit. At least the 360 gives you the CHOICE of having an HD optical drive.

I, like many others, don't have an HDTV, and have no use for an HD format. So I save $200 by not buying a console that doesn't give me the option. If given the choice, I would purchase a PS3 with a dual layer DVD drive for $400, as would others (because if this were the case, I think we'd have a better selection of software as well).

Also, what's the deal with Sega deciding to offer up criticism of all the consoles lately? I mean, their last two consoles were disasters (financially), they've nearly destroyed the Sonic franchise, and they haven't had a good monkeyball game in years. The only stand out game they've made recently (that I can think of) is VF5...

I agree with their advice for Sony in this case (who doesn't?), but maybe they should start paying attention to their software business, eh?

Sega: Also pack Virtua cop 2, Virtua fighter 2, and daytona 2 in with the ps3, and also please buy our games

The biased kids like IanVonPorter make me laugh so hard, they will believe anything that they read on the internet and assume its happening to everyone.

My 360 has been running with no problems for well over a year and a half, I know it will eventually fail whether it be tomorrow or 3 years from now, but hey at least I have something to do besides watch movies and play awful games like FinalFantasy that were originally designed for teenage girls.

Good for you Martin. I do have an HD TV so it was a no brainer buying a PS3. I would have bought a 360 and HDDVD drive, but I was soured by the defective rate.

"The $600 is a one time payment... unlike 360 where its $140 every 3 months or firmware update"

Someone please tell me what the hell this moron is talking about. Shit if this nonsense is true, then I owe thousands of dollars in back payments. Damnit. And here I was saving all that money for a PS3 because I've heard some sources say that the PS3 is a little pricey, but I'm waiting for another article on the subject to confirm before I blow all my xbox firmware savings.

I think its actually a combination of the price in addition to the amount of good titles that are available. Resistance is not enough to get me to buy the system. Maybe bye March next year they will have a better selection.

"8. The $600 is a one time payment... unlike 360 where its $140 every 3 months or firmware update."

Ahhh...the finest of FUD.

I'm thinking the PS3 won't see a price drop this year because Sony is going to bet on the games coming out in the fall/holiday season to move systems.

Just my opinion. I could be wrong.

Im also owing MS some money then, because I havent had a single issue with mine, neither has any of my friends who own one, or my neighbors.

I also own a HDTV, and Im well satisfied with my 360. I might own a PS3 someday, but havent seen any reason to yet.

Sega offering advice to Sony about the PS3 is a joke.

for me, having wifi is essential since my router isnt in my room.

Defectbox 360's wifi adapter is $100 retail so it would cost me $500 total($400 for the console).

Plus it doesnt hurt that PS3 is region free. i dont have to spend money on a modchip if i want to play region exclusive games.

and honestly im fine with spending an extra $100 knowing i'm getting quality hardware that runs smoothly and doesnt have any major issues, unlike Defectbox 360.

Right now i'm more than satisfied playing Resistance, Rainbow Six, NBA 2K7, Ridge Racer 7, MotorStorm, and Virtua Fighter 5.

When/if Defectbox 360's hardware problems get fixed via the 65nm chip design, i'll stop calling it Defectbox 360 and will purchase it.

Sony and Sega should become partners. Sega's recent releases are as bad as the anti-hype for the ps3. Both companies just suck the Big One as of late. Sega should start an "official blog" (2 of them?) and Sony should of stuck with the original dual-shock. I just pulled these comments out of my ass too, but they almost make sense.

Truthfully I really never wanted to like Microsoft and Nintendo this much but damn it, its hard not when you look at the alternative.

Sega is not offering hardware advice, they're simply trying to sell their software. Basically they're saying without Sony lowering their console price, they cannot sell as much software as they would like to sell.

Sony's pricing is not only hurting Sony, it's hurting third parties who sell PS3 software. Even the Spiderman 3 video game sold better on the 360 than it did the PS3.

There's just a handful of PS3 games that have sold well. At last glance, there wasn't a single PS3 game on the top 50 US software sales chart.

Hey, I live in Cornwall!

...New York!

Also, yeah, how about that pricing stuff.

name one piece of hi end electronics that is not pricey. And don't be a fool a blu-ray player is high end electronics. I own a ps3 and when my friends ask if they should buy one I strait up tell them. "If you don't have the tv to support it then its a waste of money"
If you do have the hardware to support the 1080p output then it is a great entertainment investment. The 360 sure cant upscale regular dvds into 1080 or play a HD supported format without purchasing an additional add-on. And yes blu-ray will win the format war and there will be NO winner in the console war.

Oh there's always winners and loosers in the console wars - don't kid yourself. BluRay's win isn't in the bag as long as PS3 continues to SUCK so bad. I've heard they're too expensive to be worth jack shit. Anyone else hear that?

A $100 ps3 price drop anouncement at E3 would be very welcome indeed. I already have a ps3 so this wont benefit me none. I think the ps3 is worth $600 anyway, because the OS option will open the door for a xbox360 emulator before long (possible and hence inevitable). Fancy playing Halo 3, GoW on the ps3, ROTFFLOFL.
So much for Microsoft's expensively paid for exclusives.

About time MS got shafted!

Defectbox 360...
PoS3...

Do you kids actually think these are funny?

You're offending comedians everywhere.

Anyone who says Sega has no credibility obviously hasn't ever played a Dreamcast.

The Saturn and DC may not have done well. But it was because of all the idiots who thought the PS2 was "The shit". Sega can't be held responsible - people who didn't buy a Sega console are to blame. The Dreamcast has one of the best catalog of games out of almost every console I own.

PS3 is outselling Defectbox 360 in Europe, Japan, Asia, and Australia. Check the numbers.

Obviously Defectbox 360's total worldwide hardware sales are more since it launched a good year before PS3 did and costs less.

I believe in a few years, PS3 will pull ahead if it keeps outselling Defectbox 360 in these regions.

And I'm sick of people bringing up Wii. It's not a direct competitor! Does a Corolla compete with a Mercedez or BMW? No. Stop saying stupid things like "Wii pwns PS3!". That's like saying Corolla pwns Mercedez because it sells more. Wii isnt in the same league because:
a)it has a much cheaper price,
b) its online system is a joke(Mario Strikers Charged 2 player online LOL),
c) it focuses much more on the casual market than Sony or Microsoft do.

You fanboys are funny.

Actually, seeing where Sony was with PS2 versus seeing them now with PS3 warrants getting aid from Sega. Sony made some DUMB decisions.

@ rick

your somewhat fanboyish tone aside, i also await the other-console emulators to appear on the PS3, its capable of running MOST 360 titles (depending on the RAM balance title by title), and has the bluetooth necessary to easily (enough) synch the Wiimote, and it supports the DVD format of the competitors

funny if blu-ray isn't in the bag, then explain why every company but Universal is now supporting it. Movie mega stars like Block Buster are now only supporting blu-ray as the HD video's of choice (this will have a huge effect don't fool yourself)

And how many defective PS3's have you heard about, I've personaly had to pitch 3 360 back to microsoft that track record won't bode well when the soccer moms who buy the majority of gaming systems sold hear that its a piece of crap. It'll be on Opera one day wait and see :)

Wii doesn't count!
Japan doesn't count!
Portables don't count!
Casual gamers don't count!
Nintendo was expected to do good all along!

Open your eyes people! People aren't REALLY buying Nintendo games!

@31

True that.

Crazy taxi, soul calibur, shenmue, test drive le mans, ikaruga/mars matrix, nfl/nhl2k, virtua tennis, phantasy star online...

Dreamcast literally had almost the best game of every genre for its console generation, except for RPG and FPS...

@rick
Sorry but your post is so stupid someone HAD to say something. You are DREAMING if you think PS3 is going to announce price drops at E3. It's just not going to happen. They've told you a billion times that it's not happening. Take your riddlin boy and listen to what the grown-ups are telling you.

As far as playing xbox exclusives on an emulated PS3 - it's flattering that you'd WANT to play our great games on your PS3, but I wouldn't count on it. At least not over xbox live where the big boys are playing. Live servers will sniff your shoddy mod job out and ban your shit before you can figure out which way to whiggle your controller - have fun playing Sonic though.

That's not fanboyism. That's just common sense right there.

I already told you Curmeo, that it doesn't matter if a wii is a toyota, and a PS3 is a mercedes: nobody developes games for cars. They do develop games for consoles though, and the one with the highest install base gets the most support, and the one with the least install base, gets the least support. Did you get the memo when SquareEnix said they were not developing anymore PS3 software until sales picked up? Thats like saying oil companies aren't going to make fuel for mercedes until mercedes sales pick up. And don't think its just one company, its just an indicated of a greater industry trend.

And Linux on the PS3 will not lead to an X360 emulator for a ton of reasons. Biggest being that linux is limited to the main core processor only. No calls to the graphics chip, no calls to the SPEs. Add to that the PS3 has 256 mg of memory dedicated to the main processor and 256 dedicated to the graphics chip, vs. 360's unified memory architecture, it just isn't possible.

And even if it were possible, they don't even have a working emulator for XBox 1 yet that can run on anything. An Xbox 360 emulator is either never coming, or coming in 10 years. Forget about it.

Man, you KNOW it's bad when *SEGA* tells you you're fucking up...

That's like Lucifer telling you you're a bad person or something.

@shadow
My bad. Bluray totally won the format war and I missed it. Damn it sure was a quick war, huh. Who knew Blockbuster would tip the scales like this?! Now what am I going to do with all these expensive Planet Earth and Matrix HD DVDs I went and bought? Man, I'm so stupid. How did I not see the headlines this morning? BluRay FTW!

"That's like Lucifer telling you you're a bad person or something."

I LOL'd

@Curmeo "And I'm sick of people bringing up Wii. It's not a direct competitor! Does a Corolla compete with a Mercedez or BMW?"

It's more like, if Toyota was to say "we're going to phase out the Corolla, and only sell Lexus"; and GM says "we're going to stop selling Chevy, and only sell Cadillac". Toyota and GM assume that everyone who bought Corollas and Chevy's will upgrade to Lexus and Cadillac, but instead, people move to the only ecomony car left - Mazda!

Sony is phasing out their consumer-level product (the PS2) and replacing it with a high-end product (the PS3). Sony assumed that everyone who bought the consumer-level PS2 would upgrade to the high-end PS3, but instead, people are moving to the only consumer-level console left - Nintendo!

32

PS3 is outselling XBOX360 in Europe, Japan, Asia, and Australia.

No,Yes,?,No(Depends on week but is within 100 unit sold)
http://vgchartz.com/eweekly.php

@37

Oh yeah, they're buying them. I saw a where MP8 had sold over 550K copies. MP8 is horrible. Not sure what to think about that.

Crono,

"and the one with the highest install base gets the most support, and the one with the least install base, gets the least support."

thats fine with me. i'll choose quality over quantity any day. i gladly spent $600 on a PS3 so I could play FPS games like Call of Duty 3, which has free online, in HD with 5.1 surround sound. playing Call of Duty 3 on Wii doesnt appeal to me. I dont wanna play the game in 480i with no online service and limited stereo sound. I already played these limited games on past systems like PSX and N64.

Last gen was a different case. PS2, GC, and XBOX1 had similar hardware(mainly graphics and controller). last gen it made sense to go with the most popular system since graphics were similar. plus PS2 had free online which GC didnt.

This gen is different. Wii is not the PS2 of this gen. If anything, 360 is currently the PS2 of this gen in the US atleast. only reason i dont own a 360 is because im waiting for the 65nm chip so the hardware issues are gone.

"i gladly spent $600 on a PS3 so I could play FPS games like Call of Duty 3"

I'm sorry, you got suckered out of $600 to play a 360 port.

Video games make pretty shapes and colors move on the screen. I press buttons and the man on the screen jumps or shoots. Pretty pictures and big sound! I forget that I am sad. Video games make me happy.

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Sega: Better pricing will be key for PlayStation 3

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