Sony CEO denies price cut talk

Hello guest,
default
To benefit from all extra features you need to log in or sign up.
08 Jul 09 23:45 by Randomus in category Game Consoles To news archive

The CEO of Activision’s recent comments about possibly dropping Sony PlayStation 3 development has drawn the ire of Sony CEO Howard Stringer, who has sidestepped discussions regarding possible PS3 price cuts.

“He likes to make a lot of noise,” Stringer said, as reporters discussed Activision CEO Robert Kotick’s comments.  “He’s putting pressure on me and I’m putting pressure on him.  That’s the nature of business.”

Last month, Kotick said his company would consider dropping PS3 game development if the cost of the console didn’t lower before the end of the year.

Rumors indicate Sony will slash the cost of the PS3 sometime this fall, when the PS3 Slim launches, though Sony has remained quiet about the price cut.  Microsoft is expected to slash the price of its Xbox 360 game console at some point this fall, while it’s possible Nintendo will finally lower the cost of its $249 Wii console.

“I (would) lose money on every PlayStation I make — how’s that for logic,” Stringer said, when asked about why Sony isn’t interested in slashing PS3 prices. 

Since the PS3 has lagged behind the Wii and Xbox 360 on U.S. and international sales charts, I think it’d be rather asinine for Stringer to shrug off a PS3 price cut.  If Activision is serious about dropping game development for the company, it’s possible other game studios will follow suit and instead focus more on the Wii and Xbox 360.

Will Sony really lose money on each PS3 made if prices are cut?  It’s certainly a legitimate possibility, especially considering the powerful hardware that powers the PS3, but consumers don’t care about Sony’s struggles.  Consumers likely aren’t interested in purchasing an expensive game console that has a lackluster game catalog.

Would you be interested in purchasing a PS3 if Sony doesn’t slash prices, or would you choose to purchase a cheaper Xbox 360 or Wii?

14 Comments

DW
Posts: 1
Posted on: 09 Jul 09 06:26
I have been waiting for months to buy a ps3 because of these rumors of a slim & price cut. I am tired of waiting. I'm going out to buy a full-sized 80GB ps3 as soon as I can. Anyway, I did hear about heat problems with previous consoles that had slim versions. I may be alot better off with a normal sized ps3.
steveo119
Posts: 291
Posted on: 09 Jul 09 08:06
Its gonna happen sooner or later, sony can't keep the price up forever!

anyway, I'm sure they'll make the money back with game revenue!!
Ramza
Posts: 125
Posted on: 09 Jul 09 12:21
"Since the PS3 has lagged behind the Wii and Xbox 360 on U.S. and international sales charts"

That is wrong. The PS3 sells just as well as and sometimes better than the X360 everywhere except in US.

Sony's point of view is simple : why would they slash price when they are selling fairly well at the current price?
vikampion
Posts: 160
Posted on: 09 Jul 09 14:24
@Ramza What sources are you using to backu this claim? I haven't read anywhere where the PS3 is doing better in sales than the other two consoles.

Also, they will drop the price. They always deny right before they drop b/c if they said they were going to drop, then sales would stop immediately until they drop. They want to be able to take advantage of as many people as they can before dropping the price. (This will go for MS & Nintendo as well if they drop their prices as well)

Minor Note: Why does the editor decide to put a prerelease picture of the PS3 up when you can easily find one of the retail PS3. Just wondering.
BetrayerX
Posts: 129
Posted on: 09 Jul 09 15:32
@ Ramza
http://www.xbitlabs.com/news/multimedia/display/20090528122215_Total_Sales_of_Microsoft_Xbox_360_Reach_30_Million_Units.html

Get your facts straight please.


Microsoft Corp. said Thursday that its Xbox 360 video game console has reached life-to-date sales of 30 million units. While the company is tangibly ahead of its main rival – Sony PlayStation 3 (about 22 million) – Nintendo Wii (about 50 million) is unreachable for the system from the world’s largest maker of software.

And that was 2-3 months ago.
r_saotome
Posts: 460
Posted on: 09 Jul 09 18:44
This November I'm planning on buying a 42 inch+ 1080p TV, and if Sony doesn't cut their prices, I'll just be happy enough to buy my first stand-alone blu-ray player, after those get some price cuts of course.
shaolin007
Posts: 883
Posted on: 09 Jul 09 21:39
""I (would) lose money on every PlayStation I make -- how's that for logic," Stringer said, when asked about why Sony isn't interested in slashing PS3 prices. "

LOL, dude, you have already lost 3 billion plus dollars on the thing purposely low balling it so you could drive out HD-DVD. Why are you worrying about it now?

If the PS3 gets a little lower, I might have to bite myself. Not for the gaming ability but for the Bluray flicks.
Hemispasm
Posts: 5246
Posted on: 09 Jul 09 21:48
"LOL, dude, you have already lost 3 billion plus dollars on the thing purposely low balling it so you could drive out HD-DVD. Why are you worrying about it now?"

Maybe because he ain't making any money on BD afterall
steveo119
Posts: 291
Posted on: 10 Jul 09 08:11
@ Betrayerx,

if MS have sold 30 million consoles, and is a year ahead, and sony has sold 22 million, then its closer than you think! plus, MS also take reconditioned consoles from their RRod into their numbers so they're pretty much neck and neck!

fact is people worldwide are getting fed up with the crap MS is putting out. their games maybe plentiful, but with the RRod(some people are on their FORTH console now!), people are becoming disillusioned!
Axel_Pressbutton
Posts: 18
Posted on: 10 Jul 09 19:24
@ steveo119 - Please stay on topic. The MS hardware problem, which doesn't actually put anyone off playing on a 360 btw, is NOTHING to do with a PS3 price-cut.

Sony cannot drop the price any further, as they have lost enough money on their blu-ray device already to lose them this generation.

Dream-on if you think Sony / MS are 'neck and neck'. Sony had their golden era with PS2 - and now things are much different.
debro
Posts: 11446
Posted on: 11 Jul 09 04:16
The last two generations of PS laster approximately 8yrs each, and dominated the console war. At 22million, 1yr behind the xbox360's 30million, with majority of those in the USA ... somehow I doubt you could suggest that the the Xbox360 is winning the war.

At any rate, they could keep the price constant, and wait for inflation to catch up ... assuming the worlds economy doesn't deflate
steveo119
Posts: 291
Posted on: 11 Jul 09 20:25
I was merely answering a post on this thread, so if you want to tell anybody to stay on topic, then it should be betrayerX??

as for your comment of dropping the price, you are SO wrong. You are going by the assumption that technological advances do not lower the prices of existing tech. when the PS3 slim comes out then the price of the fat PS3 will obviously come down!

The point about the 360's RRod is a valid one, if MS are including the 360's that they fixed because of that problem in the 30 million they are saying that are out, then that means that they have not sold as many as they would have you believe.

As for dreaming about the PS3 and 360 being neck and neck, the PS3 is selling 733,333 on average a year, the 360 are selling 750,000 a year, so not that far off from each other! now take away 16% at least to take into account of the amount of reconditoned consoles that have sent out for RRod, and then you will have a more realistic figure! try 630,000!

You're just defending your console, fair do's, but you should realise the downsides to it also! the 360 is a good selling console, just doesnt do reliabilty well though!http://www.cdfreaks.com/jochem/../im...ies/2/wink.gif
Axel_Pressbutton
Posts: 18
Posted on: 11 Jul 09 20:51
@steve0119 - You assume I have a console. I don't. I simply know lots of people with a 360 - and just ONE person with a PS3 (who uses it for blu-ray movie rentals, and no games).

As I have said a few times before - it doesn't matter about console sales - it's the games that are selling HUGE amounts for the 360. The attach rate is much bigger for 360 than PS3 simply because MS have a greater catalogue.

I have a very fast PC for my gaming habits - which gives me the types of game I want to play (FPS genre mostly) at a very high res.

Slim PS3 = meh !
steveo119
Posts: 291
Posted on: 11 Jul 09 20:59
you say meh about the slim PS3, but thats whats going to drop the price! You also say that you don't own a console, yet I have checked out your reactions, and you seem hugely bias towards a console you don't own! strange that eh?

Post a comment

About this category

Game Consoles

Game consoles have become more and more mainstream with the years. All of them allow you to play games, while some have the ability to play next-gen movie formats like Blu-ray, download content from the web, or enter social networks. Besides these consoles, there are portable consoles like the PSP and Nintendo DS.

More about this

Most popular headlines

Repeat UK file sharers to be banned (2)

  • Wednesday 28 October 22:56 by Randomus
  • Piracy

Internet users in the United Kingdom accused of illegally sharing copyrighted music and movie files will face stiff penalties, starting with warning letters that will lead to bandwidth restrictions, according to media reports from the UK.

Nintendo to launch larger screen DSi

  • Wednesday 28 October 01:35 by Randomus
  • Game Consoles

Nintendo is expected to launch a new DSi hand-held gaming device in Japan that has a larger screen, as the company tries to increase sales in the hand-held gaming market it once dominated.

T-Mobile offers no contract phone plan

  • Tuesday 27 October 22:46 by Randomus
  • Mobile Phones

In an effort to better compete with Verizon Wireless and AT&T, T-Mobile has introduced new no-contract wireless plans that include unlimited voice services.

2 new Roku boxes launched for Netflix & more

Roku's streaming set-top set-top boxes now come in three flavors, adding new features as well.

See all headlines

Active Commenters