Analyst: PS3 price cut could happen very soon

by David Hinkle { Feb 25th 2009 at 11:03AM }

According to Janco analyst Mike Hickey, Sony could be set to announce a new, lower price point for the PS3 in the next few days. He says Sony needs to slash $100 off the price of the console to "effectively restart unit velocity at retail." He sees this cut taking effect in "April or by June at the latest." Without the cut, he predicts PS3 sales will continue to steadily decline.

There's also speculation regarding a potential Blu-ray-less PS3, which would "enable them to make the aforementioned hardware price reduction," though that sounds kind of ridiculous. Without all of that Blu-ray goodness, how are you supposed to play any software on the thing? It's not like people will go running out to buy a cheaper PS3 that will only play PS2, PSOne and PSN games, after all.

[Via Yahoo Tech]

Tags: janco, janco-partners, mike-hickey, playstation-3, playstation3, price, price-cut, pricecut, sony, sony-playstation-3, sony-ps3

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Reader Comments (Page 1 of 4)

Night Elve @ Feb 25th 2009 11:06AM

Oh analysts are so cute :) a PS3 without the Blu-ray drive.

I guess a price cut will likely happen but it's pretty but pretty stupid to think SONY would release a PS3 without the BLu-ray drive.

Mr Bunky @ Feb 25th 2009 11:22AM

Analysts also predict they will ditch the cell processor in favor of blast processing.

copa @ Feb 25th 2009 11:49AM

I don't know why you couldn't have a PS3 without Blu-Ray. Sony said people would be lining up to buy the machine just to use Playstation Home.

Sebastien @ Feb 25th 2009 12:03PM

They could actually release a PS3 without a Blu Ray and call it a PS N. If they start selling every game on the PSN network they could reduce the cost of the console.

scaught @ Feb 25th 2009 12:07PM

Mr Bunky....that was awesome. Man I laughed hard at that. Any comment that mentions 'blast processing' is okay in my book.

joeybeast @ Feb 25th 2009 12:10PM

It starts to make sense, if the rumored PSP2 doesn't have UMD drive, then SONY is really shifting everything online.

Eric E @ Feb 25th 2009 12:23PM

A price cut will happen because of killzone 2, a month or so after its released, anyone that is buying a ps3 for it will have done so, now to get all the people waiting for a cut. because theres only a few titles for teh summer (heavy rain, infamous) until the big fall (uncharted 2, FFXIII and GoWIII probably early '10)

Also maybe they mean no bluray 'FIRMWARE' but have it downloadable via PSN? so it can play games but no movies unless you want to pay for it later?
still sound stupid.
a PS-N as someone pointed out would be cool but i don't think it counts as a new model/price cut.
(A giant HDD, Disc less network mini box would work rather well, still play Warhawk, SIREN and they can start pumping more out.)

The Baron @ Feb 25th 2009 12:43PM

If he doesn't even understand that the Blu-Ray drive is an essential part of the PS3, then what qualifies him to know that a price cut announcement is coming in a few days?

Duke @ Feb 25th 2009 12:59PM

The no blu ray idea is pretty damn funny. Yeah that will save costs. If they get rid of the PS3 case and the electronic parts, that will make her cheaper too!

BTW:
"Also maybe they mean no bluray 'FIRMWARE' but have it downloadable via PSN? so it can play games but no movies unless you want to pay for it later?"

I don't get that at all.

Edge @ Feb 25th 2009 1:34PM

The only way it would work is if all games were available online. It would be the coup of the century... if so much weren't made of how large games are that they "need" blu-ray...

kentuckyfried @ Feb 25th 2009 2:21PM

No blu-ray. No problemo!

the kz2 DVD-9 multiple disc box set, coming to a store near you!

Eric E @ Feb 25th 2009 3:43PM

@Duke
You need the latest firmware to play the latest bluRay movies (early adopters got screwed who couldn't update it on their players)
remove the firmware from the PS3 that plays movies.
it still plays bluRay discs though.
(Essentially its like a Wii, it plays DVD games, but not the movies since it doesn't have the codec and software)

Stupid? yeah i guess so, but its a shot in the dark into what they mean.

stormtrooper190 @ Feb 25th 2009 5:30PM

@kentuckyfried

thats the funniest comment i have read in months

vDopey @ Feb 25th 2009 5:41PM

Strange how analysts suddenly come out near kz2 launch to say there will be a price drop.. Is this to try and derail sales of the console for the kz2 launch ? Why would analysts even give a crap if the price dropped and how many made such announcements for the ps2 and the gamecube (I cant remember any)?

according to psxextreme, Sony have already denied the rumour..
Sony have already said they will not drop the price until the new manufacturing processes kick in (45nm cores ? ) Once that happens then they will drop the price.
Until then, this is useless rumour..

Please please please Joystiq dont give some clown any weight by posting nonsense, if Sony confirms it by all means print it, otherwise ignore it, it is no more than a rubbish rumour designed to make people think twice before buying...

Jazza @ Feb 25th 2009 6:01PM

There is no way Sony could release a Blu-rayless PS3, as all games released so far have been on blu-ray, rather than dvd.

Urza @ Feb 26th 2009 3:56AM

Eric, there are so few people "waiting for a cut" that it doesn't even matter anymore.

GAMERS bought a 360, 2 years ago or this past christmas.
PS fanboys bought the system as soon as they could get it.

If there are hold outs, there are so few that in this economy a $100 price cut isn't going to do the trick because there isn't enough quality game only on PS3 yet. We heard system seller about how many games now? Heavenly Sword? Metal Gear? Little Big Planet? Resistance 2? They all had/have problems that make them BLAH titles. Now we're expected to believe Kill Zone 2 is going to sell systems.

I'm sorry, a price cut and kill zone 2 aren't going to do it. Final Fantasy MIGHT. But the real question is, how many of these mythical "hold outs" already went 360 and will get Final Fantasy on the 360 when it comes out... I think more then Sony is willing to admit.

cuso26 @ Feb 25th 2009 11:07AM

There's been "speculation" stories from "analysts" about the PS3 price coming "down" for just about every month now since the console was released. Do we really need to do this every time?

It will happen when it happens, and not a moment sooner!

ronEbear @ Feb 25th 2009 11:11AM

"I" like the "cut" of your "jib" if you know what I "mean".

And sure maybe I don`t "shower" and I "frighten little children" or that I "eat my own dandruff" etc etc...

Mr Bunky @ Feb 25th 2009 11:28AM

In response to ronEbear:

Maybe I'm not "camera friendly".
I don't wear "clothes that fit me".
I'm not a "heartbreaker".
I haven't "had sex with a woman", don't know "how that works".
I don't "fall in line".
I'm not "hygienic".
I don't "wipe properly".
I lack "style".
I have no "charisma" or "self-esteem".
I don't "own a toothbrush" or "let my scabs heal".

samfish (is ready for MadWorld!) @ Feb 25th 2009 12:09PM

I cut a mean jib, too.

patapon_rocker (The Old slycooper_rocker) @ Feb 25th 2009 5:45PM

C-C-C-COMBO BREAKER!!!

Mikemyerz666 @ Feb 26th 2009 7:46PM

lmao, ronEbear, CLASSIC!

Spartan @ Feb 25th 2009 11:10AM

A price-cut would encourage me to seriously look at purchasing the PS3.
But I don't know why, because all the games I want can be had on the 360, Wii or DS.
Please tell me why I feel so drawn to the PS3?

Answers below please.

*bonus point for referencing The Force*

ronEbear @ Feb 25th 2009 11:12AM

Because. Just because.

ronEbear @ Feb 25th 2009 11:12AM

Oh, and the force.

greg (peevmyster) @ Feb 25th 2009 11:16AM

you are drawn to the "dark side" or "good side", depending on which side your on.

Dyson @ Feb 25th 2009 11:53AM

The other consoles are not the consoles you are looking for.

*waves hand*

Fx.Dr @ Feb 25th 2009 12:02PM

It's the console that made the Kessel run in less than 12 parsecs.

Popfrogs @ Feb 25th 2009 12:20PM

...but parsecs are a measurement of space, not time!

Baby J Penn (PSN johnnynumber5) @ Feb 25th 2009 1:37PM

Spartan

I find your lack of faith in the PS3 disturbing. Let your anger guide you ... towards purchasing a new PS3.

Spartan @ Feb 25th 2009 3:19PM

Dyson wins

Gonzo @ Feb 25th 2009 3:22PM

Have you actually seen the 2008 and 2009 lineup of PS3 titles, it blows the 360 lineup out the water by a very large margin... Thats a reason in itself..

How about this as food for thought too... the PS3 is still outselling the 360 thou., (despite Microsofts lame spin otherwise, by cherry picking regions that buck that trend)

21.3mPS3 in 2.5 years is better than 28m 360's in 3.5 years...
20m PSN accounts is far better than 9m Xbox Live Gold accounts.

(before the brainwashed Microbots question than last number, they need to look here: http://blog.seattlepi.nwsource.com/microsoft/archives/161658.asp )

HitNRun @ Feb 25th 2009 5:46PM

Oh well. 8 straight responses without a fanboy. Not a record, but not a bad show guys.

Heavytoka @ Feb 25th 2009 11:10AM

400 bucks really isnt that much money for a PS3, the only reason I would agree about a price drop is due to the state of the economy. Right now everything needs to be just a little cheaper.

baby sea tuna @ Feb 25th 2009 11:14AM

Yes, $400 is too much for a PS3 considering both of their competitors are selling their machines for between $200 and $300. The only difference is Blu-Ray, which many consumers are not quite ready to make the jump to, after already having to rebuy their movie collections once when we made the transition from VHS to DVD.

Courtney @ Feb 25th 2009 11:44AM

I think the PS3 lost the pricing argument when the ganked PS2 compatibility out of it. I still think Sony would have had a stronger advertising campaign had they kept BC and pushed how many games were available to the system.

And yes, I know how many great features it has. I have one (60gb ftw), but to the average consumer, most of those features don't mean much.

hplcman @ Feb 25th 2009 11:49AM

I think, if you are prepared for it (already own a HD TV) $400 is not too much to spend for the PS3. You get a kick-ass gaming system AND a Blu-Ray player. Anyways, why spend $100's replacing your DVD's when the up-scaling looks pretty fabu through the PS3? And if you love all that extra content then you're buying the movie regardless of the format. But, with a $15/month netflix subscription you can check out any new blu-ray movie that comes out pretty easily. No other gaming console offers that right now. Seriously, all you have to do is look at all the sick exclusives coming to the PS3 this year and you're all set over that shizzle.

Baby J Penn (PSN johnnynumber5) @ Feb 25th 2009 1:57PM

Baby Sea Tuna

Thats the dumbest shit I have EVER heard in my life. Why in the hell would anyone have to repurchase a DVD movie they already own again on Blu-Ray? Did you know the PS3 (as well as every Blu-Ray player) plays *ahem* ... wait for it ... DVDs? It's not a completely different standard like VHS was to DVD. The DVDs you own still work in the PS3. People are so stupid and naive.

It's like a MS astroturfing campaign run by idiots that don't even know how to make people believe a lie. But, you did get voted up so maybe people are that stupid.

SoCoolCurt (PSN: KillaKornbread - XBL: SoCoolCurt) @ Feb 25th 2009 2:56PM

you'd be surprised how many people dont know the PS3 plays DVD's too. i dont think thats what Tuna was talkin about though. i think he meant how people have this feeling that all their old movies will look amazingly better on Blu-ray. if the movie wasnt shot in HD you cant show information that isnt there. i could see rebuying movies u have on VHS on DVD for the convenience but that just doesnt make sense with DVD to Blu-ray. alot of Blu-ray players have upscaling anyway which is about as good as a Blu-ray could make an old movie look anyway. either way, the argument has holes.

End User @ Feb 25th 2009 5:13PM

@Baby Sea Tuna:

"Yes, $400 is too much for a PS3 considering both of their competitors are selling their machines for between $200 and $300. The only difference is Blu-Ray"

The Blu-Ray is not the only difference. Integrated WiFi: PS3: standard. 360: extra $. Gigabit ethernet: PS3: standard. 360: doesn't offer. Wireless, rechargeable controllers: PS3: standard with all models. 360: extra $, or included with extra $ model. BlueTooth connectivity (keyboards and headsets): PS3: standard. 360: not offered. Web browser (and all the online media that includes): PS3: standard. 360: not offered. USB flash drive compatibility for game saves: PS3: standard. 360: not offered. Non-proprietary 2.5" SATA HDD (upgrade to 500GB for $110): PS3: standard. 360: not offered. PS3 hardware kicks the 360 up and down all day long. A few games difference here or there does not a system make.

Oh, and "failure rate:" PS3: 2%. 360: 30%+. (I know some people think RROD is "overplayed" or whatever, but hey, it is what it is).

Hell yes I'm a PS3 fanboy. I'm a fanboy of quality.

E.J. @ Feb 25th 2009 4:39PM

@End User
The mainstream consumer doesn't really care (or care to understand) about the differences of offering between the PS3 and 360. Especially during these hard economic times, the mainstream consumer cares about one thing: price.

@Baby J Penn
You are absolutely right. Though, Sony and other BluRay player manufacturers don't seem to emphasize that compatibility. When you see ads touting BluRay, they rarely convey the message that DVDs can be played in BluRay players. They're too focused on pushing BluRay movies and the "switch" instead of using a transition strategy.

Aaron @ Feb 25th 2009 7:33PM

@EJ

Anybody who says something to the effect of "in these troubled times" is a douche.

"The psychological impact of bad times, rather than an actual decline in people's financial conditions, continues to be the principal driver of consumer cutbacks"

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/19/BU2Q161463.DTL&type=business

deathxrebirth @ Feb 25th 2009 10:24PM

@ End User - Great post.

@ E. J. "The mainstream consumer doesn't really care (or care to understand) about the differences of offering between the PS3 and 360. Especially during these hard economic times, the mainstream consumer cares about one thing: price."

Maybe if the mainstream consumer took the time to do a little homework and see how they are being gouged, we wouldn't be in "these hard economic times".

Sure MS has the strategy to fool the masses, does that make it right? They give away a stripped down console only to make their money back ten-fold if you ever want to upgrade.

Honestly 360 users, how many of you have purchased upgrades? A bigger HDD, which MS charges roughly $1 per gig and maxes out at 120GB. The wifi adapter, I am sure this is not one of their big selling peripherals, but anyone who bought it at $99 is a chump. Wireless headset, again, I am sure this isn't a huge seller, but it is another proprietary device, unlike Sony's solution which you may already have because you use it for your cell phone as well. Play and charge kit or quick charge kit, another $20 or $30 extra on top of controller costs - and if you opted for a rechargeable battery charger, you still payed for that.

And then there is LIVE. Arguably worth the price of admission, but yet another thing to spend money on. Let's say the average LIVE user has been a customer since they bought the system. That is 3+ years for some people. Another $150.

Should I even mention the HD-DVD add on? Definitely not MS's fault that it failed, but...

Sure, all the above are consumer choices. But to get the best experience and the most out of the system, you are gonna at least need a hard drive of any size and LIVE. Which brings you pretty close to Sony's $400. After 3 years of owning the system + LIVE, you have already payed more for it than a PS3. Start adding any of the above accessories and you could being paying $200-$300 MORE than a PS3.

The average consumer doesn't see this and that is MS's plan I am sure. But if anyone took the time and did a small amount of research, they wouldn't be getting raped now.

Sorry for the long post and basically reversing what End User said. But it makes me laugh when I hear about how cheap the 360 really is.

spife @ Feb 26th 2009 11:17AM

I Agree that $400 isn't that much, take look at the prices of a top end BluRay Player, Right now there isn't much more then $100-150 difference in price between them and the PS3. I also agree that any price reduction will help. My previous argument does not stand for all of those people out there rocking it in 480i without the benefit of the BluRay player it's over priced.

As people have already said, maybe the will have a BluRay player without "Movies" my comment... you do realize that they want you to purchase BluRay movies as well don't you?

about the price drop rumor and KZ2 their could be some validity to the rumor in that they might move all but a "few" remaining 65nm PS3's allowing them to reduce the price by bringing the 45nm chip to market earlier then summer as another rumor has stated.

My final thought is that i would readily pay the current price or more if, Sony were to move to the 45nm chip, put at least 2 USB2 ports and another GbE on the back change the design to a standard component width (flat top/flat front) and switch from a laptop drive 2.5" to a 3.5" desktop SATA. I know, it's wishful thinking. but that's my take.