Though the world economy is crumbling faster than a three-year-old sugar cookie lying on the floor of a jam-packed mosh pit, the recent cheapening of the PS3 shouldn't be attributed to current market conditions. Don't believe us? Perhaps you'll pay heed to the words of SCEE president Andrew House, who explained, "We are aware that consumers are watching their euros and pounds more carefully than before," but later added, "it would not be fair to say [the PS3 price cut] is a reaction to current market conditions." See? We told you.
This quote came in the middle of an interview with Financial Times -- an interview in which House would later mention that Sony is planning on implementing additional "social networking features" into the platform. Financial Times' write-up mentions a possible "tie-up with popular sites such as Facebook," but heck -- we'd be content with just being able to, y'know, talk to each other regardless of what games we're playing.
[Via Edge Online]
Sony: PS3 price cut not due to 'market conditions,' more social networking features on the way
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Reader Comments (80)
Posted: Aug 24th 2009 4:32PM Ausohoj said
I really don't see why there's such a high demand for cross game voice chat. Is it really that nessecary? "Oh wow, I can talk with my friend who's playing Killzone 2 while I play God of war 3!" Really? Is it nessecary? I don't know. I just don't see the point of it.
Posted: Aug 24th 2009 4:51PM Puertoricarious said
it's not just being able to talk to people who are playing different games. it's also being able to talk to people within a game in moments where the game itself doesn't allow you to talk to them. to talk to someone within a game you either have to be in a lobby or in game, and on top of that you generally have to be on the same team. but if you're trying to synch up with people, being able to talk to them before either of you are in a lobby, or even when you're on different teams, is a sweet feature and makes it way easier to find your friends.
cross-game invites are pretty sweet too, a good way of letting my friends know that i want to play a game, and they can accept the invite and it immediately switches them over to the lobby from their current game.
none of these features are NECESSARY, no more than the idea of multiplayer in a video game is necessary. it's a sweet feature that i prefer having. and it's a free phone service to an extent....i've moved plenty of times and party chat is an easy way to talk with my friends, even if we don't all feel like playing COD4 at the same time.
i play in a clan and with RL friends, so maybe my situation is different, but cross-game chatting and invites are a godsend, and really can't even remember what gaming was like before them. i suppose i'm a social gamer, if such a thing exists. i'm planning on buying a ps3, but i'm not looking forward to the lack of cross-game chat on it. if the ps3 manages to implement it while keeping PSN free....i think it's game over for MS, since social networking is one of their biggest draws.
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cross-game invites are pretty sweet too, a good way of letting my friends know that i want to play a game, and they can accept the invite and it immediately switches them over to the lobby from their current game.
none of these features are NECESSARY, no more than the idea of multiplayer in a video game is necessary. it's a sweet feature that i prefer having. and it's a free phone service to an extent....i've moved plenty of times and party chat is an easy way to talk with my friends, even if we don't all feel like playing COD4 at the same time.
i play in a clan and with RL friends, so maybe my situation is different, but cross-game chatting and invites are a godsend, and really can't even remember what gaming was like before them. i suppose i'm a social gamer, if such a thing exists. i'm planning on buying a ps3, but i'm not looking forward to the lack of cross-game chat on it. if the ps3 manages to implement it while keeping PSN free....i think it's game over for MS, since social networking is one of their biggest draws.
Posted: Aug 24th 2009 4:40PM Cranky Penguin said
The point of cross game chat is that a lot of games either don't support voice chat at all or support it poorly (e.g. Hot Shots Golf only has voice chat in 2 player games, not in games with anymore than 2 players which is insane). Plus it would be cool!
Posted: Aug 24th 2009 4:53PM SitriStahl said
They had this planned 12 years ago, its just that nintendo copied them, and made the wii $250, sony had the price drop first, they just didn't announce it until a week ago
Posted: Aug 24th 2009 4:55PM drgoodier said
You're not being a very good CEO. You're meant to say how amazing PS3 will do during the 10 year lifecycle and that the PS2 is still the most popular console of all time.
Posted: Aug 24th 2009 5:00PM (Unverified) said
Cross-game chat is a bad idea in some situations. When playing multiplayer you should be talking to your teammates - not your friend who is playing Oblivion. That said a universal chat would be nice - if it was disabled during multiplayer games. During singleplayer - or other activities on the console - it'd be nice.
Posted: Aug 24th 2009 5:12PM Puertoricarious said
do all your friends give a play-by-play account of their single player games?
and it's not like everyone on your friends list HAS to be in the chat room. if you're the leader and someone in the room is messing with your communication, you can kick them out, or if you're not the leader, just start another party and make it invite only.
i don't think party chat is a problem in any situation....people who are disruptive, on the one hand, are, and there are very easy ways around that.
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and it's not like everyone on your friends list HAS to be in the chat room. if you're the leader and someone in the room is messing with your communication, you can kick them out, or if you're not the leader, just start another party and make it invite only.
i don't think party chat is a problem in any situation....people who are disruptive, on the one hand, are, and there are very easy ways around that.
Posted: Aug 24th 2009 5:06PM (Unverified) said
k, sony, you were getting me back with the great announcements and good statements, but this is 1 of those crazy ones...
IMO, the MAIN reason the ps3 price was cut was due to market conditions.
had the ps3 been selling more consoles than the 360, the ps3 price would not have dropped.
but its not the only reason:
sony its okay to say that by slimming down the ps3 we have saved money on manufacturing costs and we are therefore passing the savings along to you.
we want to hear that stuff.
its MS who makes money on every 360 sold to date and may still be charging to much for the console.
IMO, the MAIN reason the ps3 price was cut was due to market conditions.
had the ps3 been selling more consoles than the 360, the ps3 price would not have dropped.
but its not the only reason:
sony its okay to say that by slimming down the ps3 we have saved money on manufacturing costs and we are therefore passing the savings along to you.
we want to hear that stuff.
its MS who makes money on every 360 sold to date and may still be charging to much for the console.
Posted: Aug 24th 2009 5:08PM (Unverified) said
well after re-reading, they may have worded this 1 good too... it would not be fair to say''
that is legitimate to me.
they could argue that ' its fair to say the ps3 price was cut due to lowering manufacturing costs on the ps3 console '
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that is legitimate to me.
they could argue that ' its fair to say the ps3 price was cut due to lowering manufacturing costs on the ps3 console '
Posted: Aug 24th 2009 5:14PM Vidikron said
Yeah, why even both explaining yourself? Everyone wanted a price cut and they finally did it. Just leave it at that. It's like when they said that the "What's New" section and other features for firmware 3.00 were in development pre-NXE or when they said an UMD-less PSP was always the plan. Most people don't give a shit, Sony. No need to make excuses for yourself, you just sound desperate and/or paranoid.
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Posted: Aug 24th 2009 5:26PM Johnnynumber5 is powered by cell said
"its MS who makes money on every 360 sold to date... "
Thats a good one. Are you a comedian? Let me fix that for you.
"its Nintendo who makes money on every Wii sold to date "
Fixed.
If GM writes off 3 billion in losses in one financial quarter then the next quarter makes 450K in profit would you say they are making money on every car they have sold? Of course you wouldn't and this is no different. In fact, from what I've seen and read MS and Sony are profitable as platforms (hardware + PSN/XBL + periphrials) but not the hardware itself.
But, I agree with you to a point on Sony. It's not really relevant to consumer why you redesigned the console and dropped the price. Whats relevant is that it's dropped. However, I do believe this was part of the plan and they stayed patient for a long time until that right moment when they could drop the price and do a redesign and it wouldn't hurt them financially. If it were strictly an issue of market conditions they would have done this long ago when every 3rd party in existence was calling them out for it. It's completely irrelevant to consumers but from that perspective I can understand what they are saying.
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Thats a good one. Are you a comedian? Let me fix that for you.
"its Nintendo who makes money on every Wii sold to date "
Fixed.
If GM writes off 3 billion in losses in one financial quarter then the next quarter makes 450K in profit would you say they are making money on every car they have sold? Of course you wouldn't and this is no different. In fact, from what I've seen and read MS and Sony are profitable as platforms (hardware + PSN/XBL + periphrials) but not the hardware itself.
But, I agree with you to a point on Sony. It's not really relevant to consumer why you redesigned the console and dropped the price. Whats relevant is that it's dropped. However, I do believe this was part of the plan and they stayed patient for a long time until that right moment when they could drop the price and do a redesign and it wouldn't hurt them financially. If it were strictly an issue of market conditions they would have done this long ago when every 3rd party in existence was calling them out for it. It's completely irrelevant to consumers but from that perspective I can understand what they are saying.
Posted: Aug 24th 2009 5:28PM mahouneko said
Both Sony and Microsoft lost money on each console sold at the time of release. This is the model that Sony created when it entered the video game market about 15 years ago. Up until that time, console makers were more interested in making profits off of each console, not to mention the whole gouging out the developer's profit margins by forcing them to produce their games on a cartridge medium.
Microsoft learned from Sony's model, which isn't a bad thing. I'm not even sure if Microsoft has an in-house manufacturing arm or not because just controlling the IP means nothing if you don't have full control over the manufacturing process. What IS a bad thing is the whole anti-competitive "timed-exclusive" deals that it actually bought from various developers and publishers. Why the FTC hasn't busted Microsoft for its anti-competitive strategies in the video games sector is beyond me.
See, these are the same anti-competitive strategies that Microsoft pursued in Windows and got busted for. It's going to be a matter of time before Microsoft gets in trouble with the FTC for its business conduct.
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Microsoft learned from Sony's model, which isn't a bad thing. I'm not even sure if Microsoft has an in-house manufacturing arm or not because just controlling the IP means nothing if you don't have full control over the manufacturing process. What IS a bad thing is the whole anti-competitive "timed-exclusive" deals that it actually bought from various developers and publishers. Why the FTC hasn't busted Microsoft for its anti-competitive strategies in the video games sector is beyond me.
See, these are the same anti-competitive strategies that Microsoft pursued in Windows and got busted for. It's going to be a matter of time before Microsoft gets in trouble with the FTC for its business conduct.
Posted: Aug 24th 2009 7:47PM Overgauss said
I read your reply several times before commenting.
I agree with most of what you said except for "had the ps3 been selling more consoles than the 360, the ps3 price would not have dropped."
It may be true that Sony would do just as you said, but here we have MS that sold more consoles than Sony and has performed a reactionary price drop to market conditions themselves.
Ahhh. I see the difference now. One can argue that MS is doing price cuts from a position of power to stop any burgeoning momentum that Sony can get with their price drop. Whereas Sony is manuevering from a position of weakness, necessitating a price cut due to competition and economic factors.
Especially true since MS already makes profit for each unit sold anyway.
If the roles were reversed, and Sony had the lead and MS still had a horse in the race, I expect that following a price drop on the xbox360, Sony would follow suit with their own. But they wouldn't price match with MS they'd still be slightly more expensive. 'Premium' Sony brand w/blu ray and all that.
It's a good thing I don't do this for a living. Because that was full ass-talkery on my part.
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I agree with most of what you said except for "had the ps3 been selling more consoles than the 360, the ps3 price would not have dropped."
It may be true that Sony would do just as you said, but here we have MS that sold more consoles than Sony and has performed a reactionary price drop to market conditions themselves.
Ahhh. I see the difference now. One can argue that MS is doing price cuts from a position of power to stop any burgeoning momentum that Sony can get with their price drop. Whereas Sony is manuevering from a position of weakness, necessitating a price cut due to competition and economic factors.
Especially true since MS already makes profit for each unit sold anyway.
If the roles were reversed, and Sony had the lead and MS still had a horse in the race, I expect that following a price drop on the xbox360, Sony would follow suit with their own. But they wouldn't price match with MS they'd still be slightly more expensive. 'Premium' Sony brand w/blu ray and all that.
It's a good thing I don't do this for a living. Because that was full ass-talkery on my part.
Posted: Aug 24th 2009 5:11PM butlersp said
A couple of things. First off wasn't the Facebook and Twitter interface mentioned at least 6 to 9 months ago by Sony in a round about way. Unless this is part of Firmware 3.0 that is coming next week and has been held back as one of those oh by the ways after the update. As for the Facebook updates I would assume you would have a list of options since an update can go from:
- playing (insert game here) on the Playstation 3
- playing (insert game here) online on the Playstation 3
- used logged onto the Playstation 3
- earned (insert trophy) while playing (insert game here) on the Playstation 3
- earned the online rank/medal/basge of (insert rank) on (insert game here on the Playstation 3
That is just the start and from a marketing standpoint would give free advertising of the Playstation 3 and the game you are playing where it is a AAA title of a downloaded PSN title.
As far as the cross game chat I thought in my readings that MS had politely told Sony to shove due to the possibility of a patent that it was holding and that is why Sony is unable to come right out with it but sorta told developers to add it in if they want. Would a better work around be adding Skype to the PS3 and using that in the background of the game is you want cross game chat. With soon to be 3 versions of PSP's with Skype and a PS3 with Skype it would add to the overall functionality of the PS brand. The problem would be would the PS3 have enough RAM to run both a game either online or offline and Skype in the background? This way Sony has the MS work around. Since the PS3 has its own signature online (see Hulu and Joost) Sony/Skype could have any PS3 signatures go through a Sony DNAS server.
- playing (insert game here) on the Playstation 3
- playing (insert game here) online on the Playstation 3
- used logged onto the Playstation 3
- earned (insert trophy) while playing (insert game here) on the Playstation 3
- earned the online rank/medal/basge of (insert rank) on (insert game here on the Playstation 3
That is just the start and from a marketing standpoint would give free advertising of the Playstation 3 and the game you are playing where it is a AAA title of a downloaded PSN title.
As far as the cross game chat I thought in my readings that MS had politely told Sony to shove due to the possibility of a patent that it was holding and that is why Sony is unable to come right out with it but sorta told developers to add it in if they want. Would a better work around be adding Skype to the PS3 and using that in the background of the game is you want cross game chat. With soon to be 3 versions of PSP's with Skype and a PS3 with Skype it would add to the overall functionality of the PS brand. The problem would be would the PS3 have enough RAM to run both a game either online or offline and Skype in the background? This way Sony has the MS work around. Since the PS3 has its own signature online (see Hulu and Joost) Sony/Skype could have any PS3 signatures go through a Sony DNAS server.
Posted: Aug 24th 2009 5:17PM Johnnynumber5 is powered by cell said
If I need to talk to someone I just send them a little text. I'm not one for having these large conversations with anyone while I game. I can certainly see why some people would love the feature but I didn't use it on my 360 and I wouldn't use it on my PS3. It's just not something I give a damn about. Maybe I'm not a social gamer or whatever but I play games to play not talk to people about a cool album they listened to or what broad they nailed this past weekend. I never really sent voice messages on the 360, either. It was usually just a quick little text.
For those that really want it badly I hope you get it. I really do ... You deserve it and if it's technically possible on the system there isn't a good reason in hell why it hasn't been implemented yet. It's just not something that I care about. If I chat with someone it will be in the particular game I'm playing otherwise a text will suffice. But, thats just me. I don't play a lot of multiplayer games anyway.
For those that really want it badly I hope you get it. I really do ... You deserve it and if it's technically possible on the system there isn't a good reason in hell why it hasn't been implemented yet. It's just not something that I care about. If I chat with someone it will be in the particular game I'm playing otherwise a text will suffice. But, thats just me. I don't play a lot of multiplayer games anyway.
Posted: Aug 24th 2009 5:21PM Ovy said
so, this widely anticipated price cut in lieu of slagging sales and a recession economy isn't, in fact, due to the reasons we all foresaw for a year now.
Oh, sony, you act just like a politician.
Oh, sony, you act just like a politician.
Posted: Aug 24th 2009 5:22PM jumpshot said
I agree with Griffin. Get the out of game voice chat working first, then focus on social networking. Heck, I would have preferred that to Home even.
Hopefully, if they insist on these these social networking ideas, that they will make Home more worthwhile to me, because at the moment, I don't use it more than once in while.
Hopefully, if they insist on these these social networking ideas, that they will make Home more worthwhile to me, because at the moment, I don't use it more than once in while.
Posted: Aug 24th 2009 7:15PM ptcamn said
I just hope these social features have nothing to do with Facebook, Twitter, or MySpace integration. We have the web browser for that and it keeps the system (and XMB) clean of unnecessary extras.
Posted: Aug 24th 2009 6:03PM (Unverified) said
This is a good politician trick. Yes, Sony has always planned on a Slim edition and a price cut, the key is the time table for those to happen you can believe were accelerated due to competition between MS and Nintendo with help from the economy tanking. It would be very hard convincing anyone that getting hammered in every major market besides Japan is an ideal condition especially after the mindset Sony had at the beginning of this console lifecycle.
Being able to cut cost by 70% but having to pretty much give it back to the customer is not something you do from a position of strength. You only have to look at Nintendo to see if you are in a position of strength that cutting cost is definitely not needed.
The thing is, Sony has reacted every since they released the PS3. A few areas they have tried to separate themselves from the competition but Sony is still on their heals and haven't touch solid ground yet. Will $100 cut and new design do it for the PS3. Maybe for the hardcore, but Nintendo has already shone price is not the only thing driving the market.
Being able to cut cost by 70% but having to pretty much give it back to the customer is not something you do from a position of strength. You only have to look at Nintendo to see if you are in a position of strength that cutting cost is definitely not needed.
The thing is, Sony has reacted every since they released the PS3. A few areas they have tried to separate themselves from the competition but Sony is still on their heals and haven't touch solid ground yet. Will $100 cut and new design do it for the PS3. Maybe for the hardcore, but Nintendo has already shone price is not the only thing driving the market.
Posted: Aug 24th 2009 6:05PM Tez said
I get the demand for universal voice chat, it's a very nice feature, even though I would rarely use it. I don't care how good of friends we are, I am not talking to you while I am zoning out in Wipeout or SSHD.
Posted: Aug 24th 2009 6:37PM TOYBOXX said
I'm afraid that if we stuff too many features in the consoles then it'll divert the focus of what they're truly about - video games. I understand competing to be the best home entertainment system but where is the limit?
Right now Microsoft is focusing so much attention on how they can add, or integrate, more features onto Xbox Live that they're going to lose they're demographic. So much so that, according to this years E3, not much is happening for the rest of 2009 and throughout 2010 in terms of games. Facebook, Twitter, Netflix, is all well and good but if you steer away from the video game market, as Microsoft is slowly doing now, then begin shifting over to a different industry because that is not what the video game market is about.
I fear the same might happen with Sony. PS Home in itself is a social network that potentially opens much more than what Facebook or Twitter have to offer.
Right now Microsoft is focusing so much attention on how they can add, or integrate, more features onto Xbox Live that they're going to lose they're demographic. So much so that, according to this years E3, not much is happening for the rest of 2009 and throughout 2010 in terms of games. Facebook, Twitter, Netflix, is all well and good but if you steer away from the video game market, as Microsoft is slowly doing now, then begin shifting over to a different industry because that is not what the video game market is about.
I fear the same might happen with Sony. PS Home in itself is a social network that potentially opens much more than what Facebook or Twitter have to offer.
Posted: Aug 24th 2009 6:52PM Overgauss said
Before you early ps3 slim adopters buy extra controllers on ebay, playtrade, or what have you, know that a fresh batch of fake controllers has hit the market. See http://www.youtube.com/watch?v=mji_PLB7Tb0 for more details
Posted: Aug 24th 2009 6:57PM butlersp said
By other social networking features does that mean the Free Realms for PS3 will coming soon so not only will there be Home (Where the European Home gets a lot more free movie swag) but another under utilized application.
And are the social networking applications going to be Son'y version of Facebook and Twitter or whatever else pops up that can only be used in Home if you buy the computer at the Mall for $5 but also need to buy a internet connection to use in Home. Oh and it can only be viewed in Home or it will be filed under Life on PlayStation where only PS3 can view it and customization is crap just like the weather and news channel that is there.
This should be the Sony tag line "Planning and implementing". How many times have we heard this line over and over again.
It was stated at GameCom that Sony did not want to do one big XMB or major firmware update at once but gradually. So is 3.0 the start Sept 1 and we will hear more at TGS with Oct 1 being the launch of GO and 3.something released then too.
To me it would seem with two major console revisions within 30 days of each and a big push for the GO and what looks to be a very promising offering of content for the next 7 months that Sony would really being pushing more. PS3 started out as not just a game system but the entertainment hub and now is getting pushed as a game system even though it now has Bravia Link a feather that should have been included with the Heavy PS3 at launch.
I want a marketing job at Sony were you can say and do whatever you want and no one in the corporate of shareholder structure cares.
And are the social networking applications going to be Son'y version of Facebook and Twitter or whatever else pops up that can only be used in Home if you buy the computer at the Mall for $5 but also need to buy a internet connection to use in Home. Oh and it can only be viewed in Home or it will be filed under Life on PlayStation where only PS3 can view it and customization is crap just like the weather and news channel that is there.
This should be the Sony tag line "Planning and implementing". How many times have we heard this line over and over again.
It was stated at GameCom that Sony did not want to do one big XMB or major firmware update at once but gradually. So is 3.0 the start Sept 1 and we will hear more at TGS with Oct 1 being the launch of GO and 3.something released then too.
To me it would seem with two major console revisions within 30 days of each and a big push for the GO and what looks to be a very promising offering of content for the next 7 months that Sony would really being pushing more. PS3 started out as not just a game system but the entertainment hub and now is getting pushed as a game system even though it now has Bravia Link a feather that should have been included with the Heavy PS3 at launch.
I want a marketing job at Sony were you can say and do whatever you want and no one in the corporate of shareholder structure cares.
Posted: Aug 24th 2009 8:11PM (Unverified) said
Anyone who believes this drivel deserves everything they get. Of course the price drop was a reaction to (A) dwindling sales, and (B) the overall market.
The PS3 was simply overpriced relative to its competition, in an environment where people are reluctant to hand over money. The Slim is a much better proposition.
Sony, MS, Nintendo? Please shut up. The only people who believe you are your fanboys.
The PS3 was simply overpriced relative to its competition, in an environment where people are reluctant to hand over money. The Slim is a much better proposition.
Sony, MS, Nintendo? Please shut up. The only people who believe you are your fanboys.
Posted: Aug 24th 2009 8:39PM (Unverified) said
Finally - someone with intelligence on here :) I completely agree with you. Sony's attempt to justify the price drop is simply absurd. The price drop came about because of (i) abysimal sales; (ii) economic recession; (iii) less disposable income from consumers; and (iv) the overall market. To suggest otherwise simply is absurd and, if anything, really shows just how out of touch this company is.
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Posted: Aug 24th 2009 9:10PM (Unverified) said
Even when Sony does something right they screw it up with a bad comment
Posted: Aug 24th 2009 10:38PM Angry Frank said
More like desperation?
Posted: Aug 25th 2009 2:46AM (Unverified) said
"but heck -- we'd be content with just being able to, y'know, talk to each other regardless of what games we're playing."
THANK YOU! A Statement on that would be so awesome SONY!
THANK YOU! A Statement on that would be so awesome SONY!






