Sony CFO: PS3 'plan is to not reduce the price'

by Kyle Orland { Jul 11th 2008 at 4:55PM }

Prospective PS3 purchasers pining for an Xbox-360-style price reduction for Sony's system during next week's E3 show probably shouldn't get their hopes up. Talking to a forum in Singapore, Sony CFO Noboyuki Oneda said point blank, "our plan is not to reduce the price," according to the Agence France-Press report. The report also quotes Oneda saying that Sony's focus for the coming year would be "not to sell more quantity for PS3, but to concentrate on profitability."

Of course, Oneda is a Japanese executive speaking to an Asian audience, so his remarks may not apply directly to American pricing. Keep in mind too that Sony has played coy about price drops in the past. That said, if we were betting men, we wouldn't bet on getting a PS3 for less than $399 any time soon.

[Via Engadget]

Tags: CFO, Noboyuki-Oneda, price-cut, ps3-price-cut, sony

Reader Comments (Page 1 of 2)

iag25 @ Jul 11th 2008 5:00PM

yeah don't reduce price !! Just add ads into my games !

Markez (MKWii 4339-2878-5120) @ Jul 11th 2008 5:14PM

Fantastic and well done.

Tiptup300 @ Jul 11th 2008 5:52PM

NOTE TO EVERYONE: If you have no real "OMG I WANT IT NOW" reason for buying a ps3. I didn't have one, I still bought one. I really dislike it. While playing games on it, you feel very alone as opposed to the xbox 360.

peteyH @ Jul 11th 2008 5:54PM

@Tiptup300: I bought it mainly 'cuz I was bored and I got my rebate check right as the MGS4 bundle dropped. You definitely do feel "lonely" with a PS3.

KingOfGods @ Jul 11th 2008 6:13PM

Yeah I have a PS3 and a 360 and I have to agree with the "Feeling Alone" comments. Even when I am playing a online game with a friend I still can't shake that feeling. It doesn't help that some games don't support voice or it sounds like crap if anyone is using their mic.

Vince UK @ Jul 11th 2008 7:15PM

I smoke a Strand while playing, it fills the hole.

Lekko @ Jul 11th 2008 7:57PM

Sony needs to capitalize on this 'alone' sensation and make more survival horror games.

Sesur @ Jul 11th 2008 8:07PM

I agree about the emptyness in playing the PS3. Got mine when walmart had the $100 gift card promo... got 4 good games but the Live experience is deeply missed by me...

J @ Jul 11th 2008 8:50PM

funny you mentioned that lekko. I played the siren demo, which is awfully short, unlike gt prologue, and it was very very spooky. You know how a cats tail gets all poofy if u ever manage to sneak up on one and scare it. That's how the few hairs on my arm would get everytime one of those geriatric zombies would pop outta nowhere. I'm buyin the dualshock 3 when this game releases. and the game itself of course. CAN'T WAIT.

As for the article, I think it signifies Sony's focus, which is finally software now. How the ps3 is selling is impressive enough worldwide, so it's not that they don't think a pricedrop would help. I think they're less worried now about selling at a loss to incresae the install base, and are now looking to profit from their current install base with upcoming games.

While a bigger install base will help drive up software sales, MGS4 kinda proves that good exclusives will have high software sales ANYWAY.

Speaking of MGS4. I GOT THE BIG BOSS EMBLEM. That youtube video made it look easy. I beat it in 3:40 hours. But i had to save at the beginning of each section, and died many many times. The bike ride part really involved a lot of luck, cause in certain areas you get hit on one run, but on a retry, the ai misses you in the same area. While you have to do everything right, you also have to count on the ai missing you during certain sections of that bike ride. To get big boss emblem, u can't kill anyone, u can destroy machines, you can't use health items, which would've made that bike ride cake, and you can't use special items. Oh and it has to be under 5 hours.

Now that i've done this, i'm gonna replay the whole game, and kill every single human enemy, excluding those that respawn, and use cheat items. It's payback for all the frustration i went through trying to earn big boss emblem.

Lord Bowser @ Jul 12th 2008 6:38AM

I play games with real people.

CTC XBL-supapaypamawio PSN-ctclaw @ Jul 11th 2008 5:00PM

I don't think it really has a need to.

BlackFreefall @ Jul 11th 2008 5:46PM

Agreed. The PS3 had their first price cut last year and it had a minimal impact on sales.

Sony needs to focus more on games to drive their console sales.

Joel @ Jul 11th 2008 7:12PM

Here's the thing: you can go on all you want about how much better the PS3 is with its BluRay player, Cell processor, and built-in WiFi, but the fact is all the people who know and care about that stuff already have a console.

Now you've gotta reach the average Joe who obviously is only a casual gamer cause he doesn't have console yet. And he'll be looking mostly at price, so if both your prime competitors have prices lower than you you're not going to sell many consoles.

And while Sony might only make money selling games, nobody will buy their games if they don't own a console.

J @ Jul 11th 2008 9:03PM

I get the point you're trying to make but I think you're wrong.

The average joe may not care about the features, but they also won't buy a console just because it's more affordable - look at the gamecube. And the wii isn't a good example, because while it is the cheapest console, you're average joe was interested in the motion controlled games, no matter how shitty most of the games are. The 360 being cheaper isn't a good example either, because ppl do get it for the games, which explains why they sometimes buy additional ones as back up incase of RROD. The pretty much doubles its pricetag, and that alone throws your pricecut theory out the window.

As for the PS3, if they have no need for one, or in this case, they don't see a game or enough games they want that's on it, then the average joe won't get it. The wii is very affordable for me, but I haven't bought one yet because i really don't care about their current line up. But look how well MGS4 helped Sony's profit n her current install base, while boosting the install base at the same time.

Speaking of games, i really don't think a game like resistance 2 will increase install base, but ppl like me who are already a part of the install base and loved the original will DEFINITELY be purchasing it.

Donald @ Jul 11th 2008 9:44PM

I don't know of anyone that has bought two 360s. At that point you're just being a rich asshole.

"Oh noez my 360 red-lighted! Well I'll just throw this one away and bring out one of my spares..."

J @ Jul 11th 2008 10:06PM

@donald

Interesting how that's the only part you picked out. I did exaggerate a little, and some ppl who can afford it or JUST LOVE GAMES THAT MUCH, have done it. I'm sure you don't know anyone who drives a ferrari, so i guess they don't exist.

ANYWAY, you're losing the point. The console having something to offer is more important than it's price. Did you not get that point at all from my post?

And again, if you're main source of enjoyment when not busy at work or school is multiplayer on say gears or cod4, then you would be as pissed about RROD as you're tv going out. I'm not one of those ppl, but ppl like that would get another 360, perhaps for another member of the family, but still one they can use when the other one dies.

John McPoop (PSN:johnnynumber5) @ Jul 12th 2008 12:09AM

@Donald

Actually my brother (far from a rich asshole) bought a second 360 after his first one had its first RROD since launch. He simply bought a new Arcade version and switched the HDD around. Now, since he got the second one back he just has it hooked up downstairs and uses it to stream media from his PC. He did not do this because he is rich (far from it) rather, he did this because he knew his launch 360 would have a far greater chance of having many frequent console failures. It makes sense in that respect especially since he already has a PS3 and has no interest in a PS3. Hell if I were him I would sell the second one.

Joel @ Jul 12th 2008 1:29AM

My point is that early adopters are hardcore gamers and feature-nuts. The most important thing for them is whatever brand they are fanboying over or having the best graphics or getting BluRay along with gaming.

Think about it: there are people who will buy consoles in the future. Why haven't they bought one already? They've had a few years to get one, so why haven't they? For most people, it's obviously because it's more money than they want to pay.

If the most important factor was features they would already have one. The fact is average people wait for consoles, like anything else, to fall in price before buying them. That's what they're waiting on, and Sony is forcing them to either keep waiting or (more likely) to buy a competitor's console.

NATO_Duke @ Jul 11th 2008 5:03PM

Good plan. Wait, better plan - raise the price. They will never expect that at MS! Buaaaaa ha ha ha!!!!!

Travis @ Jul 11th 2008 5:03PM

no price cut? well...then no purchase...

market that, biiiiiiiitch

Kodros @ Jul 12th 2008 2:37AM

So you're telling me that the only thing that is holding you back from buying a PS3 is $50?

Wes @ Jul 12th 2008 3:31AM

No no, its that his mommy won't pay the extra $50.00 bucks. Real men with jobs could afford + or - $50.00. Though, you can blow that argument to redicilous proporations like $50.00 100x.

totoro @ Jul 11th 2008 5:07PM

Good. Sony realizes (like Nintendo) that they have to get profitable on the hardware.

343 Guilty Fart @ Jul 11th 2008 5:12PM

*PS3 plan is not to reduce the price

Oh well, I'd at least hope they add backcompat in, but I doubt it.

Rahabib @ Jul 11th 2008 5:15PM

got mine at Wal-mart and got the $100 Gift Card which put my 40G PS3 at $300 (subtracting the GC of course).

I would expect around Christmas time similar deals or bundles thrown in to sweeten the deal for everyone.

Mr.ESC @ Jul 11th 2008 5:26PM

I just want a damn Ps3 with a friggin copy of MGS4,Socom 4 or Resistance 2 attached to it.

Is that too much to ask?

Mr.ESC @ Jul 11th 2008 5:24PM

Here the PS3 is expensive and the games are in 70$ to 100$ including the bad ones.Only Haze is in 60$

Sora267 @ Jul 11th 2008 5:27PM

Where do you live?

NATO_Duke @ Jul 11th 2008 5:39PM

England right?

blindfromthesun @ Jul 11th 2008 5:42PM

Are you from Australia? Kudos to Kiwi/OZ gamerz, they pay a premium for their games but it doesn't get em' down...for the most part.

dabamf @ Jul 11th 2008 5:44PM

Rumor has it that Greatest Hit titles are coming next month. Where is here?

Jakka @ Jul 11th 2008 5:48PM

@ NATO

Any part of the universe that isn't USA or Japan to be more precise.

Eggy @ Jul 11th 2008 5:49PM

Expensive? Console games over here cost 65 euros. PC games usually are 15 euros cheaper. That is $104 and $80 US respectively btw.

dabamf @ Jul 11th 2008 5:49PM

Hopefully you get some Fallout 3 love bro! As of now the Aussies are refusing to rate the game at all.

Jakka @ Jul 11th 2008 5:44PM

Yeah...they're not going to get a lot of new fans in the non-US parts of this world.

£350 PS3's FTL!

benny boy @ Jul 12th 2008 2:13PM

You know the RRP is £299 don't you?

And it's being sold for cheaper than that.

Jakka @ Jul 12th 2008 4:46PM

Haven't noticed.Damn you stealth-cuts!

Still, a £200($400) Premium 360 is far cheaper than a £300($600) PS3 40GB.

Scott @ Jul 11th 2008 5:49PM

This upsets me because I am going to by a PS3 at the next price drop but I want it now

!

Levi @ Jul 11th 2008 5:49PM

The E3 of years past slideshow that was featured earlier today made me sad. Just ten years ago, every console manufacturer was fighting to have the lowest price console on the market. Now we get excited when a three year old console finally reaches the $300 mark. I'm not buying any of the big three's consoles until they hit $200.

SoCoolCurt (PSN: KillaKornbread) @ Jul 12th 2008 1:06AM

i admire what your trying to do man but you not buying them until the price drops is not going to make them drop the price. they already know that dropping the price is going to make people like yourself finally go out and buy a console. that's why they wait until sales slow to do price drops.

when buying consoles, the question i ask myself is "is the amount of money im waiting for the price to drop worth me waiting a year plus to buy it". if there are no games out you want to play, then i can see where your coming from but each console has games now that are too good to be left out on (for me at least). and just to see where im coming from, i bought the Wii at launch for $250 and the PS3 was worth about $500 to me, so i bought the 60GB during the first price drop. i regret neither.

plus you have to realize that these consoles do ALOT more than any other generation did outside of gaming, which certainly adds to the price. i mean, i rarely turn my PS3 off cause it has so many uses for me even outside of games. its all about how much you feel the console is worth to you. and if you see nothing you want to play, then wait on that price drop.

blindfromthesun @ Jul 11th 2008 5:49PM

I can see why they don't want to reduce the price anytime soon. Losing $3 billion in 2 years is enough red to make anyone dream of seeing black. Ultimately, Sony will keep on cost reducing the PS3 so a price drop in the future is possible.

Jakka @ Jul 11th 2008 6:00PM

The same reason why PS3 always had bad sales? Sony got used to owning 90% of the market and they're still hoping that the PlayStation lightning strucks and forces everybody to buy three PS3's each. One for playing, one in case the other one breaks and one to keep behind bullet-proof glass and use as a trophy.

I suppose it's their turn to be industry's bitch after which they will release a new console called Pliiy Stiitiion and earn millions.Thus the circle is closed.

MN Guy @ Jul 11th 2008 6:04PM

I think a PS3 price cut would drive more sales, but it might hurt profitibility overall. They just need some big time games. I think the best thing for the PS3 is people getting more HDTV's and wanting a bluray player with the added bonus of playing games.

Deric Lee @ Jul 11th 2008 7:21PM

My problem is I have yet to see the advantage of Bluray, yeah it "looks" better, but it's not an "OMFG WOW!!!" better.

Plus DVD's are cheaper to buy and rent.

Kodros @ Jul 12th 2008 2:45AM

"but it's not an "OMFG WOW!!!" better."
Yes, yes it is. Watch Planet Earth or any Pixar film on a 50 inch plasma and then try to tell me that you don't get an "OMFG WOW" feeling.

"Plus DVD's are cheaper to buy and rent."
No idea where you rent from but there is no difference on Netflix. And yes, they are a few more bucks to buy but that won't ever stop me from buying Blu-Ray version for now on. DVD's were also more expensive then VHS.

Phantom @ Jul 11th 2008 6:06PM

Well , on the 360 even when you buy it you have to pay 100 dollars for Wi-Fi anyway , so this just actually balances out both systems to technically cost the same , except that the PS3 has a bigger and better HDD , and Blu-Ray , and free online . (I can go on and on all day )

I don't really see ANY reason at all to own a 360 , I van just get the big "exclusives" cheaper and better on PC later anyway . The Wii on the other hand , if it get's a nice price drop too , then I'll just go and pick it up with Zelda ,Mario and Metroid. ( and maybe later a wii zaper) .