Tretton dismisses PS3 price cut talk
by David Hinkle 
{ Jul 8th 2009 at 11:30AM } 
Sony's Jack Tretton isn't keen on all of this PS3 price cut jibber jabber. During an interview with Fast Company, the Sony bigwig mentioned that the goal of the company is long term, and not in the short term. "People are having short-term thinking – the platform is not even three years old. It was $599; it's now $399," he said. Tretton further emphasized Sony's 10-year goal with the system, and said that a price cut alone wouldn't net Sony the customers it wants. "The focus on pricing is something we appreciate, but you have to have the conviction and the confidence that you are on the right path for the long term and ultimately you'll get all the consumers you want. You won't get them all day one, but we're looking to get them over a 10-year period. It's going to take different things to get different consumers."
Tretton also talked about how Sony could've just pumped out a PS2.5 for a much cheaper price, but the system wouldn't have had the technology to sustain itself at retail for long. The PS3 is obviously very different. It has the Blu-rays, the gigglebites of storage, and the most important thing: the shiniest finish imaginable. That's what really counts.[Via MCV]
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Reader Comments (Page 1 of 3)
Archon (PSN: Archonik, XBL: DarkARHN) @ Jul 8th 2009 11:34AM
Say what you want. I like the shiny finish.
Garvey @ Jul 8th 2009 11:52AM
You can use that shiny finish to shave...or use it to defeat the Medusa. Just a thought from left field.
Dance Mofo @ Jul 8th 2009 12:10PM
To go further Garvey, you can use it to see who's doing what behind your back, defeat freddy krueger, show your girlfriend/wife what she looks like in the morning, take it to the hair salon and 1-up the stylist and show them your shiny finish is WAY better than a mirror. Just thoughts
umm....hello??? @ Jul 8th 2009 2:10PM
my memory might be short, but not THAT short. the original launch versions were a 60gig at $600, and 20gig at $500. So there's ALWAYS been a $400 version of the PS3 on the market. It never was like what Jack is implying, "oh, it's $600 now and it's now on sale for only $400." It was just "let's remove the super expensive $600 version from the market and people will think it's a $200 price drop!!" At most it was only a $100 price drop from the original 20gig version, and all they did was remove many key features to obtain the price reduction.
Bradwart @ Jul 8th 2009 2:35PM
The 20GB didn't have WiFi...Microsoft seems to think that's worth a hundred, so add that to the 20GB and you get 600...Seeing as how all current models have WiFi. Oh, and that shiny disc tray. That's worth an extra 20 to me...
OnToGloryReturns @ Jul 8th 2009 11:34AM
Confirmed. Price cut on the way.
Doug @ Jul 8th 2009 11:56AM
Not necessarily. Sony could just throw another bundle on the shelves, and call it a day.
We're already seeing the $399 PS3 + MGS4 + Killzone2 bundle. Personally, I'd rather just see a $329 PS3, myself.
So unless the PS3 Slim (and other bundles?) are going to give us an actual price cut, Sony's going to get slaughtered this Christmas by non-price-reduced 360's and Wii's on the game side, and Walmart $129 Blu-Ray players on the movie side.
OnToGloryReturns @ Jul 8th 2009 12:43PM
Should've added the /sarcasm to the end of that post.
I do think one is likely - probably in the fall. Drop it down to $329 then release the slim for $449. Most of the $329's will clear out in December then a spring price cut on the slim to $349. Early adopters pay a premium on the slim like they will the PSP Go.
I could easily have Michael Pachter's job - then he could move into his superhero role while maintaining his alter ego as a mild mannered retired analyst.
Captain Planet @ Jul 8th 2009 12:46PM
Jack Tretton can smoke a dick.
Richard @ Jul 8th 2009 12:47PM
Why would anyone pay mor for the slim? People certaintly aren't queueing up to buy a PSP Slim/Go at a higher price. Given a choice between slim and cheap most peopel will go for cheap.
kacex @ Jul 8th 2009 2:55PM
hopefully the ps3 slim doesnt remove features from the "phat" counterpart cuz that's what they did with the ps2, integrated LAN (WIN!), no hard drive for you (FAIL!)...
then again, the psp slim it's thinner than the phat and didn't loose any features... but the PSPGo doesn't have umd... anyways...
PS3Slim won't loose Bluray and it wouldnt be very smart to loose the HD... The only thing in my mind is... are they adding more memory to it? like a 512MB PS3 slim!??! that would be worth paying the extra dough...
Storm Eagle::The Blood Edge @ Jul 8th 2009 11:35AM
"You won't get them all day one, but we're looking to get them over a 10-year period."
Yeah, they'll get them in year 9 when the PS3 is $130 and the PS4 is $999.99
Tretton, where are you? You got some 'splainin' to do!
BIGGEN (LIVE-PSN: BIGGEN1103) @ Jul 8th 2009 11:40AM
that's what i was thinking
Spartan @ Jul 8th 2009 11:55AM
Wouldn't it be better to get those same customes sooner rather than later?
Seishino @ Jul 8th 2009 12:21PM
7 years down the line, Nintendo will have to console themselves by crying into their solid-gold buckets of high-interest securities.
Viney @ Jul 8th 2009 12:24PM
Spartan, wouldn't it be better to practice a little sustainability? Is getting new customers sooner really worth it if you have no money left to support the latter?
Jack Tretton @ Jul 8th 2009 12:55PM
My ears are burning!
As for a PS3 price drop let me quote the inimitable Judge Smails of "Caddyshack" renown:
You'll get nothing and like it!
Spartan @ Jul 8th 2009 1:06PM
I would imagine that new customers would buy games and accessories.
This will inturn provide the profits they lose with each console claim.
I mean, I can't imagine people buying the console and not supporting it.
But then again I know very little about business and can only imagine Sony know much much more about what they're doing.
That's just my £0.02p
jumpshot @ Jul 8th 2009 1:58PM
See, if most people have one 7 years later, Sony ends up missing out on 7 years worth of software sales/licensing. People will not be forking out the same amount for a 7 year old game than they will a new one too, so the sales will likely end up being mostly used version which will not benefit them at all. Just an example.
Better to get a broader customer base now to maximize profits from software.
Viney @ Jul 8th 2009 3:59PM
I understand wanting to broaden your install base right now, but that's what they're already trying to do. They're already selling you a console at a price for less than what it's realistically worth. Maybe it's not as low as you'd like, but they're going as low as they can without putting the games division in jeopardy. If they handed the dang things out for free it'd sure do a lot to broaden the install base, but is it going to make them any money? Maybe if you wanted to pay 100-200 bucks per game.
It's a delicate balance getting your system out to as many people as possible while still remaining financially stable enough to actually support the system, and I'd argue that Sony understands that balance a heck of a lot better than you or I. It's their future that depends on it after all.
ilovethewaggle @ Jul 8th 2009 11:38AM
Well then I guess you'll be losing out on profits from the 7 years of games that I could be buying Mr. I have toooo many t's in my name.
Bill$ @ Jul 8th 2009 12:46PM
you say that as if its a bad thing.. do you realize how cheap these "good" games will be year after year? missing out on $60 new games isnt so bad as buying those games when theyre old & for under $30.
Heavytoka @ Jul 8th 2009 11:38AM
Of course he dismisses it, you don't reveal a price cut unless you are just about to lower it.
MoMoney @ Jul 8th 2009 11:41AM
If you don't drop the price you will continue to see low attach rates and developers will look to your competitors. It's not rocket science. Just admit you made a mistake in the pricing and drop it.
People can't afford to put out that kind of money for a few extra games when the majority come out on cheaper platforms. It's common sense. Why pay more for a the same product when someone else has it for cheaper.
Long Duck Dong @ Jul 8th 2009 11:50AM
The Playstation is not the same product as the Xbox 360. What you are paying for with the extra 200 over the 360 core system is a blu ray drive, 80g of hd space, and a free online system. Well worth the value!
Long Duck Dong @ Jul 8th 2009 11:53AM
Oh and an included wireless networking ($100 on the 360 new) as well as some great exclusive games, and yes some disappointments (killzone 2)
copa @ Jul 8th 2009 11:56AM
Sony just wants people to stop talking about the pricing, just like Microsoft just wanted people to stop talking about RROD.
The only way Microsoft could make their problem go away was to man up, take the $1 Billion hit, and address the problem.
If Sony wants to address this problem, then they are going to have to pay to play. But whining about how it's not really a problem and people just don't understand never works. Just ask Microsoft.
vidGuy @ Jul 8th 2009 12:07PM
@Long Duck,
A drive for playing movies in a format that hasn't convinced the mainstream of its staying power, more harddrive space than a standard user needs, and a free online system that, in the public opinion, pales in comparison to the paid online system.
"Well worth the value" indeed.
Troy Powers (PSN: TroyPowers) @ Jul 8th 2009 12:08PM
I don't see why you guys are down-voting long duck dong. Everything he said is true.
MoMoney @ Jul 8th 2009 12:13PM
Blu-ray means nothing without an HDTV. I'm fine with my normal DVD HD. So we go to the 80 Gig HD which is not worth 200 bucks. You can buy a 160 gig laptop HD for much cheaper and install it yourself. There is a video on IGN to help.
As for the wireless adapter that is optional if you have network cord that is long enough. If not you can get one from eBay for cheap. Maybe 70 bucks or use an alternative through your laptop or wireless router. Google it...
Finally exclusives are nice but that's no reason to purchase a console. 90% of the games come out on both systems.
Next...
Long Duck Dong @ Jul 8th 2009 12:14PM
@vidGuy
Since when has mainstream or public opinion been the correct one?
Almost never.
Troy Powers (PSN: TroyPowers) @ Jul 8th 2009 12:19PM
@vidGuy
Hey, I'm glad you got that flux capacitor working, but here in the year 2009 that's:
A) A hi-def movie format that beat the competing format and is the ONLY format if you want your hi-def movies in tangible media. Oh, and it looks and sounds great, the prices are coming down, and is being adopted just as fast as DVD was.
B) A great amount of hard drive space, especially if you download demos, trailers, videos, music, etc. When you do decide to upgrade, you need only purchase a standard sata laptop drive of my choosing, instead of an overpriced, proprietary drive.
C) A free online system is equivalent to, and by some accounts better than the competition's service.
Hey, it's one thing to say that $400 is too much for you personally. It's too much for a lot of people. But to say the value isn't there is just dumb. I'd love to buy myself and Audi RS8, but it's too expensive for me. But, I won't whine and say it's not worth the money. I'll just keep on grinding until I reach that RS8 level and beyond.
vidGuy @ Jul 8th 2009 12:23PM
Long Duck, see: Betamax or any number of tech products that failed because they never reached the tipping point of market saturation. Also, when the whole pricing scheme is based on the principle that you sell the console at a loss and make it up on tied products (games and accessories), you need the consumer support for it to work.
What made the PS2 a success wasn't Gamer X who bought it at launch, but Mom who bought it for Billy when it hit $199. Sony seems to have gone after the niche gamer market, not the core market that makes them money.
Paul @ Jul 8th 2009 12:23PM
actually momoney I bought my ps3 just for the single player exclusives...I don't really play online enough to warrant spending $40-50 a year.
but the ratchet and clank games, heavenly sword, metal gear, KZ2, the uncharted games, the last guardian, heavy rain, amd a handful of PSN games are what have drawn me to the system. and like you said 90% of the games are multiplat so I play those too. sure I would love to play crackdown 2 and alan wake but to me theose are not worth the price of another system.
Viney @ Jul 8th 2009 12:33PM
@ vidguy
Betamax didn't reach market saturation because it got beat out by VHS.
Blu-ray's competition is what again? Oh yeah, HD-DVD.... What was that about failing to reach market saturation again?
Blu-Ray's been keeping ahead of the pace that DVD set at this point in it's lifespan. Not a bad set of footsteps to follow in huh?
Jack Tretton @ Jul 8th 2009 1:05PM
"I don't see why you guys are down-voting long duck dong."
This combination of words is one that until today I never in my wildest imaginings thought I would ever read.
It reminds me of a time I once yelled to co-workers while playing LAN Soldier of Fortune one night after work: "Stop camping, ShitSpasm! [pause] All right, who the hell is ShitSpasm?!"
Caveman @ Jul 8th 2009 2:01PM
@ Viney
Blu-Ray http://www.engadgethd.com/2009/06/19/harris-poll-results-indicate-little-growth-in-blu-ray-interest/
Viney @ Jul 8th 2009 2:53PM
@ caveman
oh really?
http://www.homemediamagazine.com/tks-take/harris-interactive-survey-gets-slammed
http://gadgetwise.blogs.nytimes.com/2009/06/29/hd-dvd-bests-blu-ray/#more-10203
"...but we're not sure you'll give the survey any more credence than we do (not much.)"
That last quote can be found by clicking the link you so kindly provided.
vidGuy @ Jul 8th 2009 11:46AM
But it's still $100 more than the PS2's launch price. The tech is nice - but mainstream consumer can't part with that kind of money for video games. A PS2.5 at $299 probably would have made more money out of the gates, and would have gathered more developers and consumers to support that 10-year plan.
As it stands now, by the time the PS3 hits mainstream prices, the next-generation will be upon us and gamers will be looking forward. Sony will be left with the after-market, just like they are now with the PS2 sales.
Misframed @ Jul 8th 2009 11:46AM
And it came to pass that the flame war gates were open, and the land was covered in darkness...
(Just my prediction for today if these Sony posts continue)
Rask @ Jul 8th 2009 11:48AM
What sony seems to be failing to realise is that they don't want a certain type of customer, they should be aiming for MOST of the customers.
Seems to my like the only people Sony are trying to please with a 399 PS3 and a 249$ PSPGo are the investors.
copa @ Jul 8th 2009 12:02PM
Sony is completely tone deaf.
Customer: I won't pay $400 for a videogame console.
Sony: OK, here's a new PS3, with a BIGGER HARD DRIVE. For $400.
Customer: I won't pay $400 for a videogame console.
Sony: OK, here's a new PS3, with TWO GREAT GAMES PACKED IN. For $400.
Customer: I won't pay $400 for a videogame console.
Sony: You are stupid, because you don't realize how much VALUE is packed into the Sony(TM) Playstation 3!
Customer: That's fine. I won't pay $400 for a videogame console.
Sony: OK, here's a new PS3, for $300!
Customer: Now you're talking!
Sony: Requires additional purchase of included $100 wireless adaptor.
Customer: Go fuck off.
Mo @ Jul 8th 2009 12:24PM
funny, cause I know lots of people that paid $400 for a video game console, and i know more than a few that pay $600 for a video game console, myself included.
people are so damn cheap.
how much did you spend on beer last month? :-P
dark_inchworm (on Steam!) dark inchworm (on XBL!) @ Jul 8th 2009 12:45PM
"people are so damn cheap."
And consoles aren't.
Negativecool @ Jul 8th 2009 12:46PM
Jesus H..That's brilliant Mo...
I would suspect you would know SOME people that would put $400 down on a console...there have been over 20 million of them sold.
However, there are about 30 million MORE people than that, that would pay $250 for a technologically "inferior" console.
People aren't cheap, they're smart enough not to pay $400 when they shouldn't have to.
oOWallaceOo @ Jul 8th 2009 11:50AM
If I were Jack Tretton I would cut the price by $20 and send out a press release with "Happy now". Then sit back and watch the show
Martin @ Jul 8th 2009 12:55PM
This is why you are not Jack Tretton.
Though I would laugh my ass of if that happened.
DigitalTwisted @ Jul 8th 2009 7:36PM
Your sir, win.
Naota @ Jul 8th 2009 11:50AM
I still can't afford to purchase a PS3
Ashkental @ Jul 8th 2009 11:55AM
There are many, many ways to get a cheaper PS3, this is just an excuse for not getting one.
PS3 are much more affordable than the xbox if you just think about it for a second, if you need a bigger hard drive or if you need wireless the price you're paying for the Xbox isn't fair for the machine it is, ps3 is a great machine and very, very reliable.