Pachter: PS3 price cut could cost Sony $350 million

Man fuck Pachter

that old piece of shit is wrong about everything, he doesn't even fucking play anything.

he's trying to apply the shit he has learned to the video game industry, which hasn't fucking worked out for him.

I'm not saying Sony won't lose money ... but where the fuck does he come up with the $350mill figure?

No, it's actually Alex Trebek. I hide here whenever Sean Connery comes over to see mother.

Basic rules of supply and demand apply here. They can't cut the prices if they don't see an increase in sells but maybe they'll take the risk....WHO knows =)

Where is he getting these numbers from? Probably pulling them from his ass again...

I'm pretty sure Sony can cut costs considerably if this PS3 "Slim" really exists.

*shrug*

Sony need to cut the PS3 price to sell more consoles and increase the user base. This is because Sony is getting royalty of USD 10 per each game sold. If they did not increase the user base now, in future they will sell a lot more less games compare to MS&Nintendo and this will lower their profits when they break even the PS3 cost again.

Besides that, third party publishers and game studios are shying away from PS3 because of the lower user base compare to MS and Nintendo. They can sell more games and generate more profits from consoles which have higher user base. EA now is switching more development funds to Wii games development. Square Enix now also concentrating developments on the Xbox360 for their titles (FFXIII, Front Mission Evo, Nier, etc.) and no more Square Enix exclusive title for PS3 anymore. Kojima even developing new MSG title that can run on MS console. This suggest that high user base is very important for future income and profitability.

So how much will Sony lose when half that 6-7million people spend there money on a cheaper xbox or wii? Pachter's an idiot, he just gets less credible by the hour. Let's face it Sony have milked the majority of people (mugs), myself included, who were willing to pay full price. Now you're left with the people waiting for the drop. They've waited nearly 2 years am sure they'll wait a bit longer.

PS a bundled game means nothing to most customers, they'd rather have the extra cash in the pocket and then chose to buy their first game

So, obviously Sony doesn't care about userbase. One important thing about a gaming console is userbase. Look at the DS/Wii. Nintendo managed to garner tons of userbase due to their lower pricing, and they are pretty much printing money. Why do you think developers are even making games for the iPhone? PS2 was a success because of the established PS1 userbase (early PS2 games are not that great, but PS1 compatibility helped). PS3 could've garnered even more userbase if Sony kept the PS2 backward compatibility. Without it, current PS2 users can easily switch to the 360 since most games are multi-platform anyway. Yeah, profit is important, but often times profit clouded logic, especially when looking at how Sony is doing things.

Even at $50 off they are still smoking crack! The reason that they will loose money is because there are a lot of potential buyers out who still can't afford it. Feel free to keep it exclusively at $399 and then three years from now when it reaches $99, I will buy it. The PS2 was marketed well so that almost every gamer could afford one. Sony screwed this one up and blamed it on bluray support. I hope Wii and 360 are kicking your @$$ sony!

The new price will be $299 and I'm not even joking. Sony knows they're in a hole, and $349 isn't going to do crap for them, they'll still be the most expensive console by a good margin.

One thing I noticed was the time frame in which this supposed price drop would occur. October. As of right now Halo : ODST is slated for a late September release. As has happened in the past release dates slip and whatnot which could possibly place a new Halo series game into circulation mid October. Also in October is Forza Motorsport 3. A direct competitor with Gran Turismo. One of Sony's most trumpeted cards in the talk about graphical capabilities. As a result of these 2 events I believe that Sony may be forced to do a price drop even as if it as small as 50 bucks just to remain in control of what market share it has. A new Halo game from the ground up has the possibility to sell consoles for Microsoft. A graphics powerhouse like Forza Motorsports has the possibility to move consoles as well. I think Sony is aware of this and is planning something for October.

doh...my PS3 just got YLOD :(. 60GB bites the dust. Wonderin if I should fix it or wait for the rumored PS3 slim or a pricecut or something.

It's a risk they'd want to take. I just can't afford it. People tell me it's worth it. I don't care about that. It's too damn expensive for me.

i'm with ryan sony's dumbass executives fucked up sony this generation. Sony has always been on the winning side so all you have is executives that are good when the compAny is good now sony cant even make a dollar profit and no matter what they do they cant do anything right. i own all three but i believe the ps3 is just the best system in all aspects. i find it just unbelieveable how bad they're doing i lost all hope in them succeeding this generation and if they keep making these stupid ass decisions they deserve to stay where they at.

its understandable sony would only make the smallest price cut on the ps3 considering they are already losing money on the ps3.

Sony made a negative net income last quarter, and if I remember right, it was over $1 billion. $350 million would be more money that Sony would have to borrow, if they can find a creditor. I'm not expecting their losses to drop within months, and in fact it may take years before they turn a profit.

They have to play it smart, otherwise it would mean bailouts and bankruptcies.

poor ps3 and Sony. no need to bash as I have done that before but i think maybe the ps3 will turn a profit by 2011-12, when we start to see a new MS console.
i haven't played infamous yet and some others, but there have been some great ps3 games i have much enjoyed so far and see many more coming.
i cant believe how low the adoption rate is for the ps3 by now, however i guess it shows Sony and the world how much the price point factors in the equation of selling more consoles in general.
i don't know if blu ray necessarily will become the next standard disc media format for computers and movie players, etc or if the sale of movies, players, etc has turned any profits yet?
i don't see laptops and computers coming standard with blu ray players just yet, just with great DVD drives at a much lower price point to the consumer, with blu ray models available at a premium price. well see hopefully blu ray doesn't die out because it is a great media format now and i have the confidence that Sony stands behind their products. ( they supported beta max for many years losing money, etc. )
back to the ps3 though. new games dont seem to be a driving force in selling many ps3 consoles and not gaining any great market share lead for any specific time period. its always wait for the next big game release to come out from the fanboys to be a deciding factor in the ps3 gaining a market share lead, which has not happened yet and probably wont happen anytime soon.
the reality is that MS strategically releases about 1 or 2 or even more exclusive game releases before, at the time, and/or after the release of pretty much any ps3 exclusive game release that has come out so far. and the more popular game genres in the ps1/ps2 game lineups have since come over the the 360 lineup also, either in exclusive or multi-platform fashion. sony fanboys, or should i say a lot of gamers in general had no choice but to purchase a 360 to enjoy a greater array of games and especially certain types of games.

jonda stunna said:
[''but i believe the ps3 is just the best system in all aspects.'']

pretty true in a lot of aspects. its a great console.

colorblind monk said:
['' I don't care about that. It's too damn expensive for me.'']

that seems to be the # 1 factor in it all along.

MS found no problem in putting a lot of games on multiple discs that contain the same graphics that would appear on 1 ps3 blu ray disc.
sony had to bundle many accessories with the consoles that were unnecessary.
(take the wireless adapter. how many 360 have been sold compared to the add-on wireless adapter product? many many less adapters have been sold showing its not needed and actually not preferred by many gamers as the best way to connect to play online games and download content and etc.
blah blah blah, sony made some mistakes and was thinking in the great economy mindset, where everybody wanted the bigger, better home, car, TV, etc.... while now it seems to be a much different story.
but i know the ps2 would have never had a shot of selling over 120 million consoles had it not been for the low price points. the wii is fun but also was and almost is the cheapest console available.
goodnight.

Price drop = debt = weakened share price = not an attractive option for Sony

Price drop = increased user base, getting rid of stock, more market share, blu ray infiltration, more games sold over generation = just what the doctor ordered

Maintain existing price = lower sales of new units, continuing to piss off loyal customer base, loss of market share

Solution = announce moderate price drop immediately, make it clear that the price will remain for the a long while, release Slim when ready, reduce price significantly

They need to introduce headsets and keyboards to support online communication and more use of Playstation home. One of Xbox smart moves were giving away headsets with their consoles from the very beginning. (Neclecting WiFi, instead...)

If they can both cut the price and provide these peripherals, they will be able to build a stronger online user base.

Anything less than $100 price drop is not good enough. There needs to be a $299 barebones SKU.

Whats a Pachter?

self-fulfilling prophecy. It annoys the @#$! out of me every time I see a prediction of a price drop - especially a ps3 price drop. The ps3 has had several hundred dollars of price drops already, and yet the wii hasn't had one. one's making money by the bucket, and the other is loosing money by the bucket. sure, if there is constant heavy pressure sony will eventually drop price just because demand drops, but the same would be true of ANY product. I predict that the ps3 price will stay the same for a long time. should probably buy it now.

what Sony needs to do to become profitable is drop the price ONLY when it makes sense for them. not before. I want to see good games for this console for a long time to come, and another good console in 10 years.

"A bird in the hand is better than two in the bush".

What Sony isn't accepting is that they will sell more PS3's at $299, than they will at $399. Heck, I'd buy one then. Just not if they strip it down more than they already have. HDD's are CHEAP!! Quit telling us that a 120GB drive is worth a $100 premium on a console. Hell, for that much of a price difference, we should get at least 500GB.

Also, it doesn't matter how good the graphics and sounds are. Make a better controller. My hands aren't THAT big (I'm 6'2" and I'd say my hands sizewise are in the upper %30), but the PS3 controller kills my hands after about 30 minutes of use. I don't really know why, maybe it's the texture, but a 360's controller doesn't bother me for at least 4 hours.

BlueRay? Meh. Hell, I haven't bought DVD's for years. I hardly even rent anymore. If I want to watch a movie, I OnDemand it from my TW HD-DVR.

alot of people are not seeing the bigger picture here. okay cutting the price would cost sony a lot of money and mean they have to sell more systems to make profit, but as proved with the recent ps2 price-cut its possible that sales could increase so much that they acheive their break even margin and start making a profit even sooner.
its a big risk, but i think it could really "pay-off"

(:-D)

Why is this seeming to be news to everyone? Common sense to the intellegent would suggest it would cost Sony tremendously to do a price drop. The other question is, is a price drop really going to do Sony any bit of good in the console wars? Do you honestly think Sony is that stupid to not realize all this? There's a reason Sony hasn't done a price drop right now. This is friggin old news and media sights must not be getting enough information in to repeat the same old trash over and over again. Its a waste of their time and ours! You must not be researching enough. If there isn't anything to report on for the day, then say nothing! The media have crippled the PlayStation 3 enough and I've gotten so sick of the media's biased views in selling what people want to hear, that its nausiating. The facts are so clear I'm amazed that they're going to a analyst. Analysts don't know jack. They make money to predict. I should have that job. They're never right and Mikey Patcher the biggest idiot of them all. Look, Sony isn't going to do a price drop because they loose $40 to $200 for every console they sell. Why else are they keeping the PlayStation 2 around? The PS2 sells well enough, that for every 2 PS2's (maybe ever PS2 sinse they're at a $40 loss I last heard) Sony makes a $60 profit.) And is it going to do Sony any good? Of course not! Developers are still lazy hacks complaining that the PlayStation 3 is just "Too hard to develop for' we're little babys and we're lazy. We just want the easy way out to make the quick buck." And "The PlayStation 3 doesn't sell." It would if you put the time and effort into it. If Sony drops the price, Microsoft will too and Sony will have lost all that money for nothing. The economy is so poor right now, that even a drop to $300 won't make a difference. Its not like the PlayStation 3 isn't worth the money you're paying for it. $400 gets you a game console (HD) and a Blu-ray player with free Wi-Fi and a charge cable for your controller. They also give you the option to remove your HDD and replace it with a SATA of whereever you can find it the cheapest. Microsoft? They give you a console that is guarenteed to crash on you and have to be sent in. They've promised to have fixed the problem multiple times and the chip still fries. Then they want to charge you $100 for a Wi-Fi adapter, and if you have the arcade model, you've gotta fork out $60 for a wireless controller and you have to pay for the battaries. A charge kits gonna cost you $20 per controller. When HD DVD was around, it was another $150 for external drive that would run off your console. Not to mention you have to pay $50 a year to play online. Sony even screws over its Silver members by saying "because you're not paying $50 a year for a gold membership, you already can't play online, but you have to wait even longer to play demoes and download exclusive content." Sony treats ever online gamer the same way and gives it all to you FOR FREE! How are people so blind. Its gonna cost you more money to own an Xbox 360 starting with the arcade and upgrading, then to own a PS3. The only additional things you need to buy with your PS3, is extra controllers, a HDMI cable you can buy for $4.00 TOTAL on eBay.com, and a Headset which is wireless and often times comes with a game. Sony is by far cheaper and is prepping to send you into the HD Video world with Blu-ray. You don't have to buy a separate player and the PS3 is still the top of the line Blu-ray player with a HUGE HDD to allow updates until the Opoa comes out which is rumoured to be better. I was blinded for a long time by a friend who told me Sony was trash and the corporation was evil. Another friend bought a PS3 and told me "DUDE! YOU'VE GOTTA SEE THIS!" I saw it all with my own eyes and bought one immediately. The more time I've invested in it and played games, the more I realize Microsoft is evil. My buddy eventually heard me out and saw my PS3 and now he owns one. His attention (though he's a diehard 360 fanboy) is leaning more and more to the PlayStation 3 everyday. He said, "If my brothers didn't have 360's, I wouldn't either." A lot of Gamers that have both 360's and PS3's will tell you that. This article is rediculous and its old news. Common sense could tell anyone why Sony hasn't done a price drop. Its not that they don't want to make money, cause they do, they're a business. It just doesn't do them any good. For example, Sony secured exclusive publishing rights in Europe for Ghostbusters by publishing the game. What does Microsoft do, they whip out their checkbook and cut a check to Atari to make the disc reigon free so that Europe can now import the game. This is the first game Microsoft had done with this. Everything else they've locked. But they've realized Sony made the move no one else would by publishing they game and Microsoft is JUST NOW REALIZING HOW WELL THE GAMES GONNA DO! MICROSOFT IS A SQUARE! They're a PIMPLE ON SONYS BUTT!