Jack Tretton: "The PS3 is still dominant."

by Jared Rea on Jul 9th 2007 4:40PM

Appearing on CNBC this morning to discuss the PlayStation 3 price drop, SCEA CEO Jack Tretton went toe-to-toe with reporter Bill Griffeth. An interview that, while pithy, failed to answer the one question that everyone seems to be asking concerning the price drop and subsequent $600 model.

"Why?"

The honest truth is that folks like ourselves and Bill Griffeth know the reasons why, after only 230 days on the US market, Sony has cut the cost of the PlayStation 3. But like a bunch of oiled up wrestlers entering a cage match, we just want to hear them say it. While he doesn't ride Tretton for the introduction of another $600 model, that doesn't mean he bucks him gently either. The "10 year strategy" spin sounds nice when considering the history of the PlayStation brand, but the odds have never been this stacked against their favor.

CNBC does manage to misquote some vital numbers as their "worldwide sales" are actually the US sales. Tretton closes with "the PS3 is still dominant," though the numbers are telling quite the story.

[via Game|Life]

Source

Tags: pricedrop, PS3, tretton

Reader Comments (105)

Microsoft sold only 1.2M 360s worldwide in the first half of this year.

It's impossible to write off the PS3 just yet. In fact, given these awful 360 sales figures, I would say outside the US, PS3 probably is the dominant next-gen console right now.

Of course, the Wii is kicking its ass right now.

Here in Canada, the 360 outsells the ps3 practiacly 10:1. And mostly all ps3 owners are only buying for a blu-ray player as the stand alone blu-ray players here are still expensive

@why not the LS2/LS7?,

Wait... what? Do you even know what you're talking about, like even a little? Let's review the most recent numbers (rounded):

Wii's sold - 8.5 million
Xbox 360's sold - 11.5 million
PS3's sold - 3.5 million

Maybe the PS3 would be the dominant console if we were using golf scoring. But no dude, your being a fanboy does not mean that PS3's automatically the winner, sorry.

Despite its hardware stability controversy/issues, Microsoft has won this generation. Look at the stats, they have outsold both Nintendo and Sony in console sales nation and worldwide.

AoE:
MS sold only 1.2 Million 360s worldwide so far THIS YEAR (that's 6 months). Despite the release of a new model and having lots of good games.

How are these figures not awful? They sold less in TWO quarters than they sold in any one quarter before except for one!

Yeah, 360 sold okay in 2005 and 2006. They said they'd sell 10M before PS3 and Wii came out (and didn't), then 10M before the end of the year (and barely did). But sales are rather slow right now. They initially predicted they'd sell 3-5M between Jan 1, 2007 and June 30, 2007. Instead, they sold 1.2M. Are you getting the picture now?

Since the PS3 and Wii came out, 360 sales have been much slower in the US and never were particularly brisk outside the US. It's underperforming a lot right now, especially outside the US.

Outside the US the PS3 is hardly the dominant console anywhere. It's seeing barely better than 360 sales in Japan, and it's being outsold by the 360 and Wii in Europe and North America.

PS3 is dominant? Wait wait wait...How long have I been asleep?

They are in the top three next gen consoles... yes?

This guys sounds like a crook

Dominant = Last place now?

"Still dominant"?
Yeah, they're still dominating 3rd place.

Wow, just wow. For everything that is almost making me go out and buy as PS3, there is another instance that I read they said something dumb and it makes me want to go was out my eyes to get all the stupid off.

The hype machine is one thing but all this posturing is making me wonder if Sony has really been smelling its own farts for so long that it thinks it is dominate right now. If they haven't changed their strategy at all then I'm not sure what that big black box will actually be good for in two or three years.

OK, I'll admit that the PS3 is far from out of the console race but.....

Sony just needs to buck up and say "We overestimated the level of success that we would have initially at the 599 price point. We are cutting prices in order to stay competitive." How hard is it to admit that you were wrong?

Honestly, I didn't buy the PS3 because the price tag was huge. Now, I will NEVER buy a PS3 because Sony insists on treating me like I'm stupid. Don't get me wrong, I fully expect the PS3 to (eventually) become successful. But until Sony starts telling it like it is, it won't be successful because of me.

Where the hell did MSNBC get those numbers for # of consoles sold worldwide?

Those are domestic (US) numbers.

No, it says "Worldwide console sales"

CNBC needs to do more research. Or atleast proof read their information.

Did you read the Joystiq post? It clearly states that the report made an error and the incorrect number was given. sheesh

Maybe he meant to say a word that describes something that is the exact opposite of dominate and got confused.

hahahaha yeah, i mean, he got confused since he was all focused in not dropping any tears, you could tell he was about to cry of desperation haha

Anyway, i think they should have spared us that 80gig model and just keep the 60 gig model with the $100 drop in price and, if possible, a free game too. That, i think, would make more people consider buying one. With this new model many people will have the perception that nothing's really changed, since they'll just see two models for $500 and $600.
And to me $500 is still too much, by the way.

I don't know, I'm more amused in this by Bill Griffith.

"Yes, yes, yes, I understand. But is it a correct assessment... SIR, that Sony sucks, blows, and does everything a tranny whore will do for a fistfull of foodstamps? Just curious, PS... Wii60."

You have to give the interviewer credit. He did not softball any of the questions, not did he allow Tretton to slide on fluff answers..

haha, what a dumbass.

So do Sony fanboys not understand that if the PS3 finds itself in anywhere other than first place in the console race (I can rhyme!), that this '10 year strategery' of theirs is going to be discarded faster than...something you...discard really fast?
The only reason the PS1 and PS2 lasted as long as they did was because they had such huge install bases and were in first place. If the PS3 can't manage that and loses to MS or Nintendo, it'll be around maybe for 6 years.

You know whats really strange? The fact that MS kept the 360 price. They shouold have been the ones to do it - 20 months of cost savings, very poor sales.
And why the surprise over such a quick cut? Sony would have cut its cost massively, maybe USD300 per unit, so why not?
Fact is, SOny has always been more aggressive with price - USD299 for PS1, same for PS2 even though they could have easily raised by maybe USD50, USD100 price cut for PS2 in just 15 months. Even the PS3 price is low - I know, thats like a red rag to some people after that stupid Ken kutaragi comment, but the amount of loss per console was huge (USD240 BEFORE retail and wholesale margins, transport costs, marketing, R&D). And again first to cut price with PS3.

rfom, you are batshit crazy in denial and on the Sony crack pipe! Just because Sony over-designed a game console, we should all feel sorry for them and buy one of these incredible values?! So far, only for blu-ray I imagine.

LOL

PS3 #1 on the top seller list at Amazon.com up 2800% in sales

http://www.amazon.com/gp/bestsellers/videogames/ref=sv_vg_1/002-9149961-7259247

The original Playstation also had a price drop within the first year. It might even have been earlier than this one...

As for WHY they cut the price, isn't it obvious to anyone in any economy? The whole reason you cut the price of ANYTHING is so that more people will buy it. That holds true with video game consoles just like it does with any luxury item (luxury = non-vital).

Actually it's true of non-luxury items also, like when produce or other things that spoil start to go bad, markets often cut the prices to dump the stock.

Just to add some numbers - the cost for 360 fell from about 535 by about USD200 in ONE YEAR. Thats close to 40%.
And the savings for PS3 would be even more than 40%:
1. Move to 65nm quite early (MS is only doing that now)
2. Significant cost savings on BR, Cell - the mroe advanced tech, the faster cost drops.
3. Dropping the PS2 chip

So say a 30-40% drop in only 8 months from USD840 = USD250 plus. So cost per unit of about USD 550-600 means that even after the cut, the loss is less than USD100 on the lower priced model (of course before retail and transport which would add USD60-70)

Maybe He meant that Ps3 was being dominatED

Uhm.. What?

...and Goldeneye for the N64 is up 300%.

*DEAD AIR*
...
*DEAD AIR*
...
*DEAD AIR*
...

" 'Why?' is the question."

[REMOVES FOOT FROM MOUTH]

"Umm...10 year product life cycle?"

Sony is dominating so hard that the sales figures can't keep up. Damn straight.

Also, wtf does Sony think of this???
http://www.youtube.com/watch?v=TyXUVd2c83c

Sega fanboy for life

Just to reiterate what others have asked:
WHERE is the PS3 dominant?

Last I checked, Wii was leading in all markets. And PS3 was third in all markets, except in Japan where it leads 360 by a nice margin.

Eh?

If the Wii were leading in all markets, wouldn't the Wii be leading globally on market share?

Certainly it's making it's way there, but catching up at an amazing pace is not leading. Perhaps the statement will ring true globally by the end of the year, but North America at least will see the 360 still enjoying its early launch well into next year.

After that is anyone's guess. The Wii may fall casualty to its casual gaming demographic. The PS3 may see a dramatic increase in sailes following this and later price adjustments, as well as curing cancer. The 360 may rocket into a larger lead after the RROD issue is finally taken care of permanently.

As for now, the Wii is definitely not leading all markets. It's just growing the fastest.

Erm, what I meant is, it is leading in current sales.

In every market, it is ahead of PS3 in terms of total sales. Outsells 360 in Japan (but then again, what isn't?). And outside of Japan, it is quickly approaching 360's lead.

In the chance that Wii sales take a nosedive (which, after eight months on the market and still sells out at most retailers, seems very unlikely), I doubt PS3 will get a sales boost. Fact is, most people aren't going to pick up a $500/$600 luxury item over a $250 luxury item.

Yes Heliophage Sony shall Hoist it sails. But Sony's sales will lag behind the 360 and the Wii. It's killer combination of lack of good games and high price point. $100 is not enough when MS drops its price right after Sony does it still won't have a huge impact on the sales of the PS3.

@Daniel
""Still dominant"?
Yeah, they're still dominating 3rd place."

lmao, nice one.

Jack Tretton got ate for lunch in that interview!
Good job CNBC for for not accepting his spin tactics.

His "10 year life cycle" crap was the only excuse he could come up with. Shareholders are going to want results now, not 10 years from now. Why must Sony just continue to screw things up for themselves? The "game" is different now, but obviously they haven't realized that yet.

If Microsoft were to get on top of this Red Ring bullshit (I have not had a problem with my 360 luckily) and drops the price maybe 50 to 100 bucks, then the PS3 would be out of the race.

It sure is the domininant and number one movie player... we'll give you that. I think people buy game consoles like Wii and 360 for games.. don't they?!?! It's pretty clear that Sony and Microsoft have switched roles in this generation. Just goes to show you that games make the system... not hardware. Nice try on your spin though Sony. More lies. $500 is still too much for a console.. especially for one with lackluster ports and a list full of "wait and see" promises. I have yet to see any games that look better than what we've seen are capable on 360.

If that guy said "10 year product life cycle" one more time, I was going to blow my brains out.

They are not going to admit they were wrong for the price of the ps3...which many people dont do that anyways. So they drop a 80gig ps3 with the same price and then say lets drop the price now. So therefore it does not look as bad as saying we cant sell/compete as much as we would like so..lets drop the price.. It showed in the video. Granted yes your thinkin on a 10 year plan but clearly you werent selling, so you had to drop the price to somewhat compete. From what I've also see. The ps3 has almost the exact same games as the xbox does. Nothing just truly sticks out for what your getting.

Yeah, yeah, Jack "1200 USD for each unsold PS3 you can find" Tretton is at it again... anyone surprised?

We have a new 10 year plan to make the PS3 the best selling paperweight of all time!!

What a joke Sony has turned into. Their getting crushed by the competition in almost every sector of their business now a days.

They can't give these things away.

Jack Tretton, AKA "Jack Off"

It's hard to take Sony seriously when they make statesments we know that aren't true. That they continually make untrue statements makes me question anything they say.

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Jack Tretton: "The PS3 is still dominant."

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Posted: Jul 9th 2007 4:46PM spin cycle said

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