Strong PS3 sales might mean more consistent price level
by Kyle Orland 
{ Feb 22nd 2008 at 8:00PM }
Now that the latest PS3 price drop has finally kick-started the system's position in the sales race, Sony seems to have come to the logical conclusion that further price drops probably aren't an immediate necessity.Talking to Reuters, SCEA VP of Marketing Scott Steinberg said Sony was surprised to see a rough parity between sales of the $500 and $400 PS3 models since the November price drops. According the Steinberg, that suggests "the hard-core gamer is not afraid to throw another $100 at the PlayStation 3," and that the pricing pressure many analysts predicted has not materialized. While Steinberg said the company was "studying what this means for the potential roadmap for the year," the clear implication seems to be that the company is happy with the system's current pricing ... at least for the time being
Steinberg also seems bullish on the PS3's future in light of the success of Blu-ray in the HD movie format wars. "The year of the PlayStation 3 started in fall 2007," he said. "I think it will be an extended year, we are feeling positive momentum."
Reader Comments (Page 1 of 1)
loner_boy2 @ Feb 22nd 2008 8:07PM
PS3 will make a come-back this year, thats what I predict - but Wii will still be dominate
WhoMe @ Feb 22nd 2008 8:12PM
Yeah it's been slowly building and it looks like it's set to happen, they really do have the momentum that suit talked about.
Though I suspect the 360 will see a price drop relatively soon.
Hope they don't fuck it up though, Sony Style. :p
Co @ Feb 22nd 2008 9:35PM
I agree loner_boy. I can see myself sitting a PS3 next to my Wii before it's all said and done. Now if I can just find a convenient way to blow up Microsoft's headquarters.......
Vegeta (aka Ska Oreo) @ Feb 22nd 2008 11:42PM
@Co
And right there you just proved what many have suspected all along: You have problems. Seek help.
Co @ Feb 23rd 2008 2:58AM
lol will do, Vegeta.
Kspraydad @ Feb 22nd 2008 8:14PM
It is out of SCEA hands...When MS moves its price down SONY will HAVE to respond.
Minimum $50 off by Thanksgiving if not more imo.
Rob Accomando @ Feb 22nd 2008 8:19PM
That's dandy that the company is happy with the price. What about the people who actually spend their MONEY to buy it?
It's funny how the success of a movie format is what Sony thinks will move their console that should be primarily for VIDEO GAMES.
Master Bruce @ Feb 22nd 2008 8:28PM
PS3 is an entertainment center, not just a video game console. Sony is not a short-sighted firm, like Microsoft. Just look at the PS2 and xbox, Microsoft cut xbox's life way short and screwed those loyal xbox fans in its steadfast grab for profit and market lead, while Sony dedicated to improving the PS2 over time and making it a great value to consumers even 7 years after its inception, as shown by great sales. Microsoft rushed its 360 in its blind greed and resulted in a defective system that disappointed people every time that red ring appears. Sony took the time in its factories to make a product of high quality worthy of the Sony brand and sacrificed a market lead initially in favor of having a greater value for consumers in the long run.
Markusdragon @ Feb 22nd 2008 8:59PM
No no shortsightedness in the whole Boomerang Controller -> SIXAXIS -> DualShock 3 debacle then, Master Bruce?
Zsavior @ Feb 22nd 2008 8:23PM
I also felt the PS3 was going to make comeback this year. Then something happened, though the GDC was horribly boring, one thing came to mind. MS was still showing off new gamer tidbits, like GOW2 and Ninja Gaiden 2 and XNA. PS3 on the other hand well what did they offer, I mean the last few months have been positive, but I am beginning to think I really under estimated MS ability to corner their competitor.
Make no doubt about MS and Sony they are head to head. The Wii is in its own market MS already makes a flack load of money with out trying to buck them. But at the end of last year I agree it felt like PS3 was making a surge to become the PS2 for the gamers this generation also, but with Square stonewalling dates, and MGS4 still in mystery mode I just don't see it. I know gears comes out November 9th Gaiden 2 June, and this is the beginning of the year who knows what is next in the MS department.
Blu-ray is an excellent feature for the PS3, but it is a feature, Sony has to hope competitors like Samsung and Panasonic just don't put out blu-ray players at the same or lower price point of the PS3. We have dates for big games on both next gen systems but the PS3, and if they are really talking about attracting the hardcore gamers I can't see how price point comes up but the fact that MGS4 and FF XIII seem to be no shows for this year on the PS3 as of right now isn't discussed. The again I said this same thing before and 2007 had that surge for the PS3, maybe Sony is just waiting, I just don't think blu-ray will be the over all key to catching up to the XBOX360 right now.
Vegeta (aka Ska Oreo) @ Feb 22nd 2008 9:23PM
Wow that was a really good post.
I especially agree with your comments on Blu-ray and it's one of the reasons why I feel Blu-ray will have no major impact on the console war. Like you stated before, competitors aren't going to sit there and let the ps3 get all the sales from blu-ray's victory. There going to want some of that success too. so I wouldn't be surprised at all if they drop the price at or below the ps3's $399 price tag.
PSN: KillaKornbread (the shirt is a lie!) @ Feb 23rd 2008 4:05PM
you know i feel similarly. like i expected, MS pulled out the big guns at GDC (even though thats not what this particular conference is really for lol) while Sony and Nintendo didnt do so much. im not sure if there are any other game shows coming up soon but the fact that MGS4 and FFXIII dont even really have release windows yet kind of makes me uneasy. we do have GT5 Prologue (if you can count that) set for April and Resistance 2 set for a Nov. 08 release though. i feel like Resistance 2 will be a fantastic game and with that said, the Gears of War 2 announcement for Nov. 08 did not surprise me at all. MS is known for trying to release big name games to counter the competition, rumor has it they are holding Slinter Cell for MGS4 and remember when they said at first Halo 3 would release alongside the PS3? ive said it before, MS is not going to sit idly by while PS3 nips at its marketshare and i feel they have certainly strengthened their '08.
here's hoping that Sony has something else up its sleeves cause i think MS is trying to replace Halo's spot with the Gears of War series. we seriously need some dates for our other big guns too like LBP, Gran Turismo 5, and Home.
Brymo @ Feb 22nd 2008 8:33PM
I am actually going to go out and get a PS3 today.
Reason?
Not for games, but BR.
License to ill @ Feb 22nd 2008 9:16PM
Guess you're not a gamer...
Brello @ Feb 22nd 2008 10:02PM
I'll pick one up, myself pretty soon. Mostly because a few of my favorite developers call it home, and I'd rather not miss out. I always end up having to buy all the consoles! I blame Insomniac and Naughty Dog, mainly!
PSN: KillaKornbread (the shirt is a lie!) @ Feb 23rd 2008 4:15PM
did you guys ever consider that that may be Sony's aim? i can hear them now "hey buy this PS3 for Blu-ray and then.....oh.....it plays games too.....well we just finished a couple good ones, and luckily you now have this console that can play them. good for you."
(and im of course talking about the big '08 games.....which still have no release dates.....>8( )
Jouten @ Feb 22nd 2008 8:34PM
The PS3 has been enjoying some success as of late. Large in part by the fact that the Top Execs were keeping their proverbial mouths shut. Up until now. Sure, Blu Ray has won the format war. That is an unquestionable positive 'feature' of the PS3 and a major gamble on Sony's part (for which I applaud now, they got balls the size of watermelons for that one). Also, I think it will be an even more stellar year for PS3 because now that they have their marketing teams back from the Blu Ray camp, they can now focus on properly marketing their game system. It has always been my personal belief that the marketing machine for Sony Playstation was 'sent/lent' to the BDA group so that they could win the format war. Sony's Marketing Special Forces if you will.
Grats Sony, I really applaud your current and hopefully upcoming success. NOW, let the GAMES begin!
pkpk523 @ Feb 22nd 2008 8:36PM
I do think Sony would be well-served to drop the 40G another $50. Yes, momentum is great, and 2008 will be a great year for the PS3, but think of the huge number of casual gamers out there who want one. Their A1 titles coming in a few months will tide Sony over throught the rest of the year and into the '09, but a slight price drop now would get a lot of those on the fence now, with the great titles coming out getting the other fence dwellers soon thereafter. That's momentum at it's fullest potential. And that's how you stay on top. You don't sit back and say "things are going well now, and they'll go better soon when our great products (MGS4, LBP, GT, etc) come out". You see an opening and you pounce on it.
Do I see it happening? Doubtful. I think Microsoft will drop their 360 around August once they have enough consoles to fill the shelves and Sony will follow suit. But honestly, I think the best thing Sony can do is be the initiators this time around. They've made mistake after mistake this generation, and need to make MS follow suit this once. Think about it. With the PS3 selling much better now, with all these great titles coming out soon, and with another price drop (and yes, I think $50 is enough of one) MS will have no choice but to drop their price. And this time, even we 360 lovers will have to admit price drops aren't because things are so gloomy in Sonyland, but because Sony is going for the jugular, attempting to capitalize on their "momentum".
Demaar @ Feb 22nd 2008 8:39PM
Hardcore gamers aren't afraid of throwing away an extra hundred because they know the 40GB model is shit and they have no choice.
That's how things work. Want quality? Pay more.
Bluemanrule @ Feb 22nd 2008 8:54PM
What this also says is that even a $100 price cut didn't change demand. That, can be interpreted by the competition in a bad way. I like the PS3 and I really feel that it will pull ahead of the Xbox 360 this generation. I hope to buy one by then.
backhandslap @ Feb 23rd 2008 6:37PM
Well, microsoft will still kick some ass this year, it's sad to see that they will never break the 50mill mark, they just don't have the reach.
Sony has got some fans, this would be a different story had MS added hd dvd to its console, blu ray would be in a heap right now.
I don't know, this year is being dubbed as PS3's, but is it really as good as 360's last year? metal gear is great, probably sell 2 mill, but other than that? be realistic, I don't think either console will make a killing.
As for GTA IV, the masses will go where everything is cheapest, so that means yes, the 360 will get the bigger boost.
PS3 is happening is Japan and Europe because that's where the loyalty is, not because sony has the games.
TheRockBoS @ Feb 22nd 2008 10:02PM
Realistically, we shouldn't see another price drop for the PS3 until Thanksgiving. Remember that they just now starting breaking even on cost and production of PS3 units.
Now that Blu-Ray is *the* HD disc format, you should actually be watching Blu-Ray developments if you want a PS3 price drop. Why?
Simple. Competition between manufacturers will spur development for cheaper Blu-Ray parts, including drives, that say, the PS3 uses. Sony could easily form a contract with the lowest bidder to further cut costs on PS3 unit production, and will eventually pass the savings on to the consumer.
So, I say a $350 40GB by November, though I think a $300 40GB unit would be *the* sweet spot for Sony, especially seeing that Nintendo won't be dropping the price of the Wii any time soon.
mmxzero @ Feb 22nd 2008 10:44PM
I dont know. I too felt this swell of positivity for the PS3 starting at the end of last year in the gaming community, since it was ragged on all 2007. But my gut feeling is that it seems kind of shallow(at least take over wise). I dont think January's results are solid enough of a metric if all of this is based off of that.
No doubt PS3 will have a better year in 08', it has to. Blu-ray winning and big games wont hurt either.
Just_a_guy @ Feb 22nd 2008 10:57PM
from what i've seen and learned, the wii will be the PS2 of this generation: crap games in the begining but the system of choice by the end. the PS2 will be like the Xbox, and the 360 will be the gamecube: Awesome games throuhout it's life but not quite the sales it had hoped for by the end.
WLT @ Feb 22nd 2008 11:27PM
Steinberg also seems bullish on the PS3's future in light of the success of Blu-ray in the HD movie format wars. "The year of the PlayStation 3 started in fall 2007," he said. "I think it will be an extended year, we are feeling positive momentum."
Dude, shut up before you jinx this year up. Remember what happened last year.
rokerovakero @ Feb 23rd 2008 12:32AM
This is what i was afraid of if Sony ended up winning the format wars, now they don't need to lower their prices since they already won, and the players out there are very expensive so why lower the Ps3? The used the ps3 as the trojan horse this time and won, without any good games and gamers buying up mostly movies for their Ps3.
I would lower the price even more and finally start making people drop DVDs for blurays before downloads start taking over.
And Of course, start giving your saviors (gamers) what they have been expecting for a year: AAA games.
el serpiente @ Feb 23rd 2008 12:55AM
I bought my PS3 for games AND movies. And my games to movie ratio is 2:1. But please, don't let me stop you from using your wonderful imagination to make up statistics and propogate hearsay. So, uh, put that in your pipe and plunge it...
rokerovakero @ Feb 23rd 2008 2:41AM
Oh, so you are not buying movies? I don't think you read my comment, read it again. I can't even imagine what games you have for that ratio 2:1, that is unless you don't have more than 2 movies.
AAA games are 9.0, 9.5, 10. Not a 7.3 or 8.6...
But hey, if you are happy with what you get, it's a matter of tastes... I'm waiting until it hits $300 and has my type of good games and looks better than a xbox360 port...
el serpiente @ Feb 23rd 2008 3:29PM
Yes, I can agree it certainly is a matter of taste. But AAA games are ultimately the games you or I individually like to play, and play the most, not what some 20-year-old breast-feeder on some game review website tells me that I would enjoy.
rokerovakero @ Feb 25th 2008 12:41AM
I agree. I know what kind of games to get before numbers show up and most times they end gtting those numbers, but in the end it's what you give it, like you say.
Abscissa @ Feb 23rd 2008 2:37AM
"Steinberg also seems bullish on the PS3's future in light of the success of Blu-ray in the HD movie format wars."
Wake me if Bluray ever actually starts to rival regular DVD. My money is still on Bluray being the next SACD/DVD-Audio.
ThornedVenom (Ludwig Defense Force) @ Feb 23rd 2008 4:29AM
It's still hard imagining a price drop from their behalf, because the Sony I knew would rather keep the same pricepoint whilst increasing value.
But still, I'm still hoping for a pricedrop.
Leo @ Feb 23rd 2008 4:30PM
I don't think there'll be a price drop any time soon, but I'm sure there will be one before Christmas. #300 (or less???) 40gb with possibly a higher SKU.
I think PS3 will beat 360 this year in America, and will beat the snot out of it worldwide. Yet the Wii will still reign supreme. I think it's all about beating the 360 as of now.
Leo @ Feb 23rd 2008 4:36PM
Sorry, typo. I meant $300 40gb, not #300.