Analyst: Don't expect a PS3 price cut this year

by Alexander Sliwinski { May 15th 2008 at 10:16AM }

Lazard Capital analyst Colin Sebastian believes a price cut for the PS3 is unlikely this year. He states that Sony management is focused on achieving profitability in the PlayStation division and that a PS3 price cut won't happen in the near term.

Sony expects to sell 10 million PS3s this year, doubling the global number of systems stationed on our little big planet. With the HD movie war in the bag and an increase in HD television adoption, it's not unreasonable to assume the PS3 being people's go-to movie player. As this blogger's mother put it, "Why would I @$%&ing pay for a basic Blu-ray player when I can get a PS3 for the same price? I want to play my Final Fantasy. When is my Final Fantasy coming out?"

Tags: price-cut, price-drop, ps3

Reader Comments (Page 1 of 2)

PojoMofo @ May 15th 2008 10:19AM

Its already the best deal in gaming history, why do they need a price cut???

ok fine that is a little overboard, bu tyou get a heeluva lot of machine for $399

4MyFriends @ May 15th 2008 10:56AM

Tis a shame most gamers don't want these "extras", they just want a solid game system with a respectable library of games. Not much of a "deal" when not only don't most gamers have no use for these extras, but don't even want them at all, wouldn't you agree?

pkpk523 @ May 15th 2008 11:18AM

Ok, so I wrote about this before, but it seems relevent again.
I would argue that the PS3 most certainly is affordable for the target audience that they are trying to attract. I have at one point owned all 3 "current gen systems" (have since sold my Wii) and if you are the type of consumer who can afford a high def tv and sound system and is willing to spend a good amount on a gaming system, $399 is perfectly reasonable for a gaming system that also features a great blu ray player. It is basically the same price as the 360 once you get what you need for it (I would never tell someone to get one without a cooling fan). Sony isn't really marketing to the 16 year olds that can't afford a PS3. They're marketing it towards the 20 and 30 somethings with big old home entertainment systems who don't see $399 as that big a stretch for a gaming and blu ray system. just my opinion.

Sir Fidlious Wong (Justin T. McElroy Memorial Burn of the Day Award) @ May 15th 2008 11:27AM

pkpk523,

Those cooling fans actually hurt your system more than help. They keep the hot air inside the machine quite perfectly. It's not like the laptop coolers that actually disperse heat.

4MyFriends,

I know what you mean. I mean, who wants a sturdy system with ~140 games available with many getting high review scores. Seriously though, the "no games" excuse is tired, put it to bed. As for "extras," since when is this a bad thing? Let's put it this way, why is Xbox 360 the only system besides PS2 that doesn't have wireless built-in? For $30 more than the wireless adapter for 360, you can buy a full on game console (DS) that has wireless. And trust me on this one, padawan, media streaming for 360 IS a big deal for people. Try telling several people I know that this feature which essentially put the system in their house is worthless and pointless.

Fact of the matter is, "extras" are not a blemish to gaming culture. Quite the opposite. Video gaming itself is about excess. So don't hate on the extra features in PS3 because 360 has extra features of their own which DO add value to the console.

pkpk523 @ May 15th 2008 1:36PM

@ SirFid

Wait, those are bad? So I sent my 360 in once because it stopped reading my games about 3 months after purchase. I was told to get a cooling device when I got my 360 back, which worked for about 6 months but have RROD'ed twice since then. So it could be the cooling device making things worse? Regardless, I'm still disappointed in the reliability of it.

Sir Fidlious Wong (Justin T. McElroy Memorial Burn of the Day Award) @ May 15th 2008 2:23PM

Yep, those cooling devices are bad. More often than not, they covere the section where Air is supposed to escape from. One website even did a test and put a thermometer in the 360 case and ran it for 3 hours with and without (with a 12 hour cooling period between) and found the one with the cooling fan ran much hotter over long periods. Since the primary cause of RRODs is the GPU overheating, those cooling fans are death sentences for early 360s. Ironically enough, they are just as damaging on PS3 and Wii. PS3 especially since it's cooling fan rate is determined by the heat of the system as a very self regulated system (longer you play, louder it gets) with the eventual overheating power down, the cooling fan there is redundant AND damaging.

SoCoolCurt (PSN: KillaKornbread) @ May 15th 2008 3:42PM

i thought the PS3 was a great deal for all i was getting. im the type of person that will buy a gadget and i WILL use just about every feature the thing offers. thusly, i use my PS3 just about every day, from playing games, to quick blogging if i dont want to leave the bed, to watching movies, hell i even charge my Zune with it. i feel it was well worth the $500 i paid for it.

now at the same time, not everyone is going to use all those features so it is going to seem a bit in the pricey range for them. if they could find a way to offer a $300 SKU without cutting core features, they would certainly make that 10 million with no problem. i firmly believe that $300 is that "sweet spot" for console pricing.

el serpiente @ May 15th 2008 3:44PM

@ 4Myfriends

If I am shelling out several hundred dollars for a game system, you bet your ass I want it to do more than just play games.

I really can't understand this argument about why added value is a bad thing. If the playstation 3 only played games, I wouldn't have bought it. I enjoy playing games, don't get me wrong, but I also like watching movies/tv shows I've downloaded over my network, having access to my full music library from my living room, having a web browser on my television.

XGM @ May 15th 2008 5:01PM

399$ ? Are you serious... *sigh* The PS3's up here in Canada are still 500$, till that MGS4 bundle comes out ill still hold off on getting one.

Christian @ May 15th 2008 10:25AM

The analysts can say what they will, my guess is that there will be a price cut happening as fall approach.

j.howlett @ May 15th 2008 10:27AM

the blogger's mother has a point.

xFenixKnightx @ May 15th 2008 10:28AM

It is a great deal at $399.00 but IMO they should still drop the price to at least $349.00-$299.00 this Christmas to remain competative with the 360.Ill bet money that the Premium 360 will be $299.00 this Holiday.

xFenixKnightx @ May 15th 2008 10:34AM

Has she tried Lost Odyssey? Couple of buddies say its gooooood. Oh...but Bluray...I see.

:P

PojoMofo @ May 15th 2008 10:40AM

Yes, but being old she doesnt want to get up to have to switch the disks 4 times :)

xFenixKnightx @ May 15th 2008 10:55AM

Unless she's in her 80's I think she'll be alright.

Cellien @ May 15th 2008 11:00AM

Ignore Pojomofo, obviously he/she's a fanboy. :)

el serpiente @ May 15th 2008 11:28AM

Ignore Cellien, he has no sense of humor.

Cellien @ May 15th 2008 10:40AM

"Why would I @$%&ing pay for a basic Blu-ray player when I can get a PS3 for the same price? "

That's sooooo far from the thought process of an average or even semi-tech savvy mother.

It'd be more like:

"Why would I buy a game console to watch movies when I have a great upscaling DVD player?" ...and that's assuming they are familiar with upscaling DVD players. :)

The fact that the blogger's mother wants to play FF puts her in an extremely low percentile of mothers.

PojoMofo @ May 15th 2008 10:43AM

If moms knows about upscaling DVD's, Im sure she is aware the not only is the PS3 a blu-ray player, but a great upscaling DVD player as well.

And it doesnt sould like you have a helicopter in your entertainment center, yes I went there :)

Cellien @ May 15th 2008 10:57AM

What does helicopters have to do with dvd player?

And no, knowledge of an upscaling DVD player does not mean they know what Blu-Ray actually is aside from having heard the name (nearly every DVD player at walmart is upscaling capable, like I said..that ASSUMING they even know what upscaling actually is.), let alone care what Blu-ray is, able to afford it, or in the are even in the market for it.

Don't let fanboyism blind you. I have a Blu-Ray player and love it. I read about the adoption of Blu-Ray media and it's actually GONE DOWN since earlier this year. Out of every single person I know personally, I am the only one that has a Blu-Ray player, and I only personally know one other individual that plans to eventually upgrade... and he'd a daddy, not a mommy. :)

4MyFriends @ May 15th 2008 10:57AM

If the mom knows that much about upscaling DVD players, she realize she could get a good one for only a fraction of the price of the low end PS3.

Evan @ May 15th 2008 12:05PM

Also, the PS3 is no longer the cheapest Blu-Ray player. Insignia Blu-Ray players have already appeared in BestBuy at sub-PS3 prices. Consumers can look forward to huge Black-Friday deals on Insignia and Funai Blu-Ray players this fall.

Jacksons @ May 15th 2008 12:47PM

Who buys storebrand electronics?

Cellien @ May 15th 2008 1:42PM

They are under the name of Magnavox and will be $298 at Walmart on memorial day. The most attractive bullet point, according to many here and the blogger's mom, to the PS3 is now gone.

Ruan Caiman @ May 15th 2008 10:41AM

The 40 GB PS3 shows up in my personalized "Quick Picks" at the bottom of Amazon gold box like 3 times a week, for $379. If we ever get another HDTV, I'd probably consider it.

chez @ May 15th 2008 10:45AM

Needs a price cut, at least in the UK. All the Sony people go on about what you get for your money and how much you'd need to spend on an Xbox to get a similar machine. On the opposite side of that coin you can jump into "HD consoles" for £160 with an Xbox. Almost half of what the PS3 is.

I don't know if it's the same in the US or the mainland.

Needs to be £250 here.

PojoMofo @ May 15th 2008 10:51AM

in the US it is only a $50 USD difference ($350 for premium 360, $399 for 40GB PS3), so not big at all, I am always suprised to see the prices in UK and how much you Brits gets ripped off. I feel for ya!

Cellien @ May 15th 2008 11:06AM

pojo: It's only $50 difference compared to the Premium, but it's over $100 more than the entry level 360. That's a large price gap considering you're comparing the lowest end PS3 to 360 pricing. Not to mention it's difficult to compare the console pricing due to what you get. The Premium 360 is obviously aimed at gamers with games packed in, a headset, and HD cables included. As opposed to the PS3 which is barebones, but has a Blu-ray player (that requires the purchase of an HDMI cable). I think they are both a good deal, but seem to be aimed at slightly different crowds.

Nate @ May 15th 2008 12:01PM

Really, the arcade version of the 360 is there just for the price tag, so parents will buy it for their kids, and then be forced into buying all the upgrades to make it into something actually usable (which, btw, will make it cost more than the PS3)

Yes, blu-ray requires HD cables to be useful, but you can still get them for about the same cost as the rechargeable batteries you need for the 360's controller.

Cellien @ May 15th 2008 12:40PM

Nate: You don't need any extras for the arcade version. It plays games fine out of box... what game systems are supposed to do.

HDMI cables at the STORE are on average $25-$50. Rechargables are about $5...which you dont need right away, it comes with batteries in the box.

Snukadaman @ May 15th 2008 1:01PM

The euros set themselves up to get gouged ...its the place where the most people purchased that 40 dollar demo regardless of the online problems.

chez @ May 15th 2008 1:03PM

Doesn't the Arcade model come with Component cables and a memory card anyways?

Just as everyone says the PS3 is great value for money, but if you *don't* want all them extras then it's a huge £140 leap up from an Xbox.

Scanning Game.co.uk; you don't even get a game with the PS3 at £300... Looks like they dropped that 2x controllers, Resistance and Motorstorm bundle.

chez @ May 15th 2008 1:05PM

Tell a lie you don't get a HD cable with the Arcade model.

Sir Fidlious Wong (Justin T. McElroy Memorial Burn of the Day Award) @ May 16th 2008 8:12AM

cellien,you're running with some real fuzzy math...

First,if you're buying your cables at store prices, you're fool. Why? Because of massive mark up they MAKE of cables. More often than not, stores double or more on the cost of cables. I worked retail, I KNOW this. That $25 HDMI cable you mention likely ran the store $10.

http://www.newegg.com/Product/ProductList.aspx?Submit=ENE&N=4024&Description=HDMI%20Cable&bop=And&Order=PRICE

Second, $5 for the rechargable battery? Once again, what?!? MS brand rechargable has an MRP of $12. A four pack of rechargable AA Energizer runs about $14.

browntown @ May 15th 2008 10:48AM

Drop the price by 50 bucks worldwide, just take the hit, software sales will make up for it, especially since people will pick up LBP, MGS4, and Resistance 2 when they buy a new PS3. Not dropping ur price is suicide.

Farseer (GDI) @ May 15th 2008 11:23AM

I like how you assume people (who are not already Sony fanboys) will pick up Little Big Planet, MGS4, and Resistance 2 when they pick up a PS3. Don't get me wrong - I'll eventually get a PS3, but it sure as hell won't be for those titles.

marauder800 @ May 15th 2008 10:56AM

That's a good deal for those that want a MEDIAstation 3, but I bought a PLAYstation 3. The PS3 upscales DVD brilliantly, as does my home theater and 360. Keep your BD and gimme some of those games we've been promised.

Evan @ May 15th 2008 11:58AM

No, the 360 does not upscale DVDs well, and chances are neither does your home-theater. The 360 got a score of 20 on the HQV upscaling benchmarks. Most Samsung and Sony "home-theater-in-a-box" score around 35. However the PS3 scored a 90!!! That places the PS3's upscaling quality near videophile-approved equipment like the Silicon-Optix-equipped Oppo, Denon, and Marantz players.

Dick @ May 15th 2008 2:43PM

xBox 360 doesnt upscale anything. Its HD DVD drive may have, but the regular DVD Drive does Not.

Kizzle @ May 15th 2008 10:57AM

They need to drop the price, even if it's a half-assed price cut like 30-50 bucks. Now is the time for them to strike. You can bet your ass MS will finally cut the price this fall since (most of) their heavy artillery is now spent with Halo 3 and GTA4 out. Gears 2 will be really big but it won't sell a bunch of systems and/or set sales records like those two hype trains did.

On a related note, I wonder if MS realizes how big of a blunder they made by only half-assedly supporting HD DVD and allowing Sony to walk away with a fairly significant "win" pretty much uncontested. Or maybe they don't care and think their annoying video download service is really going to take off. Idiots.

marauder800 @ May 15th 2008 11:11AM

"Or maybe they don't care and think their annoying video download service is really going to take off. Idiots."

Speak for yourself. I use Xbox's Video Marketplace all the time and I'm more than a little bit annoyed that Sony doesn't have an equivalent.

Curtis the Claw:PSN-ctclaw @ May 15th 2008 11:49AM

Why would you be annoyed that Sony doesn't have one if you just use the Microsoft one?

Abuzar @ May 16th 2008 11:38AM

Maybe he has a PS3 dumbass.

4MyFriends @ May 15th 2008 11:00AM

A Price Cut has to happen for the PS3 this year. With the lineup Microsoft has shown for the 360 this year, it would be naive to think they wouldn't plan a price cut to coincide with big name titles like Gears or War 2. What good would the first half of this year be if Microsoft just sweeps in, steals the thunder away from the PS3, and counters the catch up the PS3 did to the 360?

Christian @ May 15th 2008 11:16AM

As good as GOW2 might end up being, one game do not make a 'lineup'. Microsofts lineup this year looks pale compared with the PS3 who sports MGS, LBP, White Knight Story, The Agency, Final Fantasy, Resistance 2 and Haze.

4MyFriends @ May 15th 2008 11:37AM

Microsoft has more than just Gears of War 2 to look forward too. They announced a lineup of pretty well respected games this year like Ninja Gaiden, and an old classic I'm personally can't wait for (Banjo).

BTW, Final Fantasy isn't coming out this year, I doubt White Knight Story is as well. Hell, the only big name title you've listed that is definitely being released this year is MGS4, the others are Q4 2008 AT BEST.

Kizzle @ May 15th 2008 11:46AM

Christian, you can't say "all the 360 has" is Gears 2 and then pretend stuff like LBP, White Knight Story, The Agency, and Haze are going to come roaring out of the gate with Gears-level sales numbers. The only one of those three that may be a pretty sizeable hit is LBP if it really delivers and catches on.