PS3 needs a price cut to "remain competitive"

Sony and Kaz Hirai have plenty to think about when it comes to overhauling the company's strategy at all levels. On the gaming front, the company has to prepare for next-gen during a time when it's about to suffer its worst loss in history. It's certainly a fine line to walk.

[Darkieinthemist]

no it doesnt

[Dante112]

Mmm, I don't think so especially after seeing how well and close the PS3 sold to the 360 in March in the USA( 34k difference between them). Happened in February as well, on a 40K difference. I think the PS3 might actually be leading WW this year.

Source: http://n4g.com/news/978823/...

Edit: @ NYC Gamer

Yeah, that be great for both. A $199 PS3 would hit the sweet spot.

[blue7_7]

Yeah it kind of does if it wants to stay competitive. 40k difference is quite significant considering the Xbox 360 has had no price cut for who knows how many years now like 4 plus years or more and the PS3 just recently had a price cut which did almost nothing to it. So still being outsold by it's competitor by 40k when one got a price cut and the other didn't is a big deal.

I know I will get disagree but it's true people tend to forget the PS3 had a price cut that's how insignificant it was people forget it actually had one.

[Dante112]

@ Blue

But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 plus years as well lol. For the PS3 to be priced more and only get outsold by 34k (was 40k in Feb) in MS's home territory is pretty good to me. That's why you are probably getting diasgrees.

[cynosure]

@Dante

"But the PS3 still costs more than the 360, even with it's price cut. The 360's been cheaper for 4 years lol. "

So what?
Sony had two generations of success and mind+marketshare
It shouldn't be trailing the 360 period

"Microsoft does not concern us. Microsoft is not a technology company."
- Nobuyuki Idei, Sony chief corporate adviser in an interview with BBC NEWS

"I have no concerns about the competition."
- Phil Harrison, president of Sony Worldwide Studios speaking at the Game Developer Conference

"I don’t think we’re arrogant."
– Phil Harrison, regarding consumer perception of Sony

"It’s probably too cheap…"
– Ken Kutaragi, Regarding the $499 to $599 price point

"A bit pricey."
- Michael Ephraim, Managing Director of Sony Computer Entertainment Australia, speaking about Nintendo Wii in an interview with the age.com.au

http://next-generationsyste...

[GraveLord]

PS3 was leading in worldwide sales at this time last year as well. But in the end Microsoft out-shipped Sony. Sales tracking sites show that the PS3 was the best selling console of 2011 to consumers.

On topic: Sure PS3 needs a price cut to stay competitive....in America. I'd say the 360 is in serious need of a price cut if it wants to outsell the PS3 this year.

[ABizzel1]

Does it need a price cut to stay competitive?

No.

Will a price cut help sales?

Yes.

A $199 price, would probably be enough to finally let the PS3 see a number 1 spot in the US, and possibly number 1 Worldwide for the rest of this generation (Unless we see a $99 360 at the same time).

[k-dillinger]

hey can sum1 tell me what xbox sold ww for the 2011 fiscal year anyone knows because sony hasn't posted for their last quarter yet i wanna compare let me know

http://www.scei.co.jp/corpo...

[insomnium2]

No need for a pricecut. X360's wind is dying down. X360 sold good cause of marketting of Kinect. The Kinect fad is dying down as it clearly points out in NPD sales numbers.

If anything X360 needs another ad campaigne to remain above PS3. The difference in sales that X360 gains in a month in USA is offset in a week or two in Japan alone. Europe favours also Sony so unless MS comes up with a hefty pricecut or an ad campaigne this is more than likely going to be the year when PS3 starts leading against X360 in lifetime sales.

You heard it here first folks. You can bookmark this if you want.

[miyamoto]

Never trust them sales figures.
These bloggers are just generationg buzz & clicks. same old story. Let Sony run their business. word wars ain't gonna change nothing for Ps3.

[THESONYPS3]

World Wide PS3 owns

[TotalHitman]

America isn't the world Dante...

Look at Japan and the rest of the world. The PS3 is doing fine.

[SilentNegotiator]

"40k difference is quite significant"

They were both >330K in sales, so not really. 40K is like, 12% or so of those figures.

[Montrealien]

To think that over 6 years into the current console cycle, people are still arguing about this nonsense, is hilarious.

[Montrealien]

@GraveLord

It's been proven time and time again that both Sony Nintendo and MS use shipped numbers in their repports.

Thinking Sony alone would be stupid enough to downvalue their stock by simply stating the sales to customers is a fanboys utopic wet dream...

[zero_cool]

No but it could put it over in sales so just look at it that way.

Cheers Gamers & Happy Gaming!

[Gamer1982]

The ps3 might be leading WW this year? Its been leading WW for a long time. It's only US its not been leading as for price cut in the UK seems it has got one most stores have already cut it to £160 for 160gb version. That's the same price as the 360 slim 4GB.

[Christopher]

It does, but it won't matter. Microsoft hasn't dropped its price because it hasn't had to, not because it won't make money on a lower price. If Sony lowers its price, so will Microsoft.

The only thing Sony can do is drop it drastically to a point that will at least match what Microsoft will price their low end console.

If Sony can't compete with the low-end price point of the 360 in the U.S., it will continue to get trampled. And, even with that type of price point, sales likely won't see but a temporary surge but not enough to make that much of a dent in the U.S. Worldwide may be another item.

[sikbeta]

No price-cuts before/until Wii-U launch, MS is smart and will block with price-cut, Sony will follow

[Megaton]

Agreed. It needs a cut, but it will have minimal impact anyway. Sony is in a tough spot. They dawdled and made too many missteps for too long and now Microsoft has the "it" console. I don't think the PS3 will ever surpass the 360 in sales, and I have serious doubts about Sony's performance next generation as well.

I think Sony's success next gen hinges entirely on whether or not the network effect created by the 360 will extend to Microsoft's next console. It's Microsoft's game to lose moving forward. Sony will have to continue working to claw their way out of the hole they created for themselves this generation.

[lover2012]

@Megaton
wow yes mmmmm
ps3 in very tough spot that why the gap is almost closed
now 2.5m
after it was 9m with a year head start for xbox
and it was only 34k behind xbox in xbox home this month
how are the sales of xbox in ps3 home BTW ??

ps3 is doing very amazing job in worldwide and looking at the numbers in NPD it's doing amazing too in US
it does not need a price cut at all
but you guys can say
and beleive what ever help you sleep the night

[Christopher]

@lover2012: The gap being discussed is specific to NA. That gap is about 13M in NA. So, when the analysts say what they think will help Sony to decrease this gap, you can't just throw the logic of the worldwide numbers at them. They're not talking about that. They're keeping it solely to NA numbers.

I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA.

[Megaton]

Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.

People like to point to Japan as proof of Sony's success, but Japan is a small fraction of the size of the NA market. Europe is a better sample of success abroad, but it's also significantly smaller than the NA market. Sales in Europe are also typically pretty close between the 360 and PS3.

@cgoodno - It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008, I think. The year when Sony was outselling Microsoft in all regions until Q4 (thought to be the result of Microsoft channel stuffing in late 2007).

[Christopher]

***Not to mention that the worldwide gap was down under 1 million in the past. It has been steadily growing for a couple years now as Microsoft dominates the world's largest market.***

No, that's not true. Closest it's gotten is to about 3m. It's grown to a max of about 4M since then and has fluctuated between 3.6M and 4M since then. It was never down to 1M, let alone even 2M based on official numbers (who knows with VGChartz numbers, though).

@Megaton: ***It was down to around 500k if I remember correctly. There were articles around here beginning to claim the PS3 had passed the 360 because of it. It was in 2008***

That was only on annual worldwide sales. That was not total console sales since this generation began.

@below: ***so what are you saying is sony should lower the price to close the gap in one region ***

I agree with the analysts that are saying it. I also say that it won't have as drastic of a result as people may think, but it will open up some potential for Sony to increase software sales dramatically, which is where they make most of their money in the first place. Since they are only slightly behind 360 in software sales worldwide, increasing their customer base will only make it so that they can sell even more software to beat 360 at that without having to actually beat them at hardware sales in the U.S.

[Gamer3000]

"I agree that Sony makes up for a ton of their losses in Europe and Asia, but that doesn't change the status of sales in NA "

so what are you saying is sony should lower the price to close the gap in one region
when they are dooing mighty fine in the rest of the world ????

in japan xbox is dead
can you show me what region ps3 is not selling well in it ???
even in NA it's doing very awesome even when it's the most expensive console
if sony lower the price
to let's say 200 or 199
xbox wouldn't stand a chance

[cynosure]

@Lover1201

The gap is 3.8 million based on last fiscal reports
The gap was 8 million not 9 million
It wasnt a year head start.
It was Sony launching a year late

http://www.gameinformer.com...

http://en.wikipedia.org/wik...

[Christopher]

***It wasnt a year head start.
It was Sony launching a year late ***

PS1 - Dec. 1994
PS2 - Mar. 2000
Xbox - Nov. 2001
Xbox 360 - Nov. 2005
PS3 - Nov. 2006

Sony created a 6-year separation between releases. Microsoft only had 4 but hasn't kept up with that.

Either way, both Sony releasing late and Microsoft releasing ahead is a comparative statement making both of them true. You've just chosen to shine a negative light on Sony rather than a positive one on Microsoft.

[insomnium2]

My god some of you people must be insane....

Could someone please enlighten me what does it matter that/when/if USA is the biggest market when the difference is only 34k-40k a MONTH between PS3 and X360? In what way is the size of the market even relevant?

I would say purely based on facts that Japan is way more significant market since the difference in sales between these very same consoles is TRIPLE in a month there.

Do you people understand where I'm coming from with this? Are you capable of looking at this subject in an OBJECTIVE manner? 1+1=2 you know.....right? I have no idea how is it even possible to not to see this.

@cgoodno
***
***Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account***

I disagree with that. ***

A pricecut solely in USA would anger other regions so...

[Christopher]

***A pricecut solely in USA would anger other regions so...***

i'm fairly certain you understand that a price cut would be worldwide. I also hope you understand that analyzing and discussing the issues of a region happens every day. So, when I say we don't have to take into account world figures, meaning how many are sold outside NA, that's what I mean. I didn't say the price change wouldn't be global. I said, much like how there is an SCEA, you analyze what you need to do to help grow the business in one region as well as them all. And the answer is not always going to be the same from one to another. But, when the answer in one region ends up being a price drop, it will likely affect the other regions as well, even if they don't need it like the region in question.

[showtimefolks]

well if we are asking sony to cup the price to compete with xbox360 than i feel like that's just stupid, Xbox360 has a killer app called kinect there is no way for sony to compete with that. Sony needs to keep doing what its doing and 34K difference in march and 40K in february doesn't mean much when world wide sony will recover that number and than gain ground.

34K difference covered in japan and than some for sony.

I think sony this time around will wait for MS to drop the price because let's say MS goes to $250 than sony can follow that up with $199 and make bigger news, and with that extra attention they can sell faster

I don't know when people will realize this but xbox360 can stay ahead few million but if end of this gen ps3 is at 110 million and xbox360 is at 113 what's the difference? its about selling well its not a race so if sony can still sell over 100 million ps3's how is that not success. This fanboy war is just between gamers i don't think MS or sony care as much as long as they keep on selling their systems

from the reports next xbox360 will have bluray that means some sort of way some money will go to sony

sony's computers use windows and MS software so they have to pay MS

right now to sony it should be about keep the sales up and making a profit you tell me how they gonna make the profit if the cut another $50?

[mcstorm]

I agree with what you have said and tbh the salws of both the 360 and ps3 are doing well so late on in the gen. Yes sony lost some of the market to ms and nintendo this gen but it could be different next gen too.

For me sony need to drip the price of the psv to get its sales up lake nintendo did with the 3ds before developers decide to drop there support for the poor sales.

[Jazz4108]

This is the same pattern every year. Usually sony until recently was even outselling 360 in the us at the beginning of the year. Ten when the holiday season hits 360 outsells ps3 worldwide and pushes the gap back up. This has happened so many times I can't believe anyone is even praising sony for only being 38.000 consoles behind for a month in NA where they are 13 million behinf lifetime. Wait till holiday and 360 wll outsell the ps3 ww again. Ribnse and repeat.In response to america being anti ps3 then why don't you add north ameirca to the ever increasing ban list that sony and fas are known for.

[cynosure]

@ Gravelord
360 was the number one selling consoles based on fiscal reports directly from the companys.
There is no such thing as over shipping.Everything works off supply and demand

http://www.gameinformer.com...

http://www.microsoft.com/in...

http://www.scei.co.jp/corpo...

[MysticStrummer]

PS3 has been selling faster than the competition since it launched. Seems pretty competitive to me.

[MostJadedGamer]

Um yes it does, and it has been way overdue. The PS3 SHOULD have been at $199 last E3. The PS3 has been overpriced all the way through this generation, and that is why it is in last place.

There is no point in waiting any longer. Sony MUST drop the PS3 to $199 at E3. There is still time to put up massive sales numbers at $199, but that time window is shrinking.

[NeoBasch]

My thoughts exactly. Nothing major came out here in America this last month, yet it was only behind the 360 by 40K. Microsoft is losing their lead. They definitely don't need to. They're already giving Microsoft a run for their money in their only leading territory. It's quite a turn of events this last couple months have been for Sony.

Now, don't get me wrong. I think Sony should cut the price tag by another $50. If they're smart, they should try and break the camel's back before Halo 4 comes out. This is their chance to take over. They need to overshadow Microsoft's ace in the hole.

This has nothing to do with personal tastes, though. I hope people pick up The Witcher 2. If you don't have a 360, get one. Get one, now! In contrast, I couldn't recommend a PS3 now. I mean, obviously, the back catalog, but besides that. There's not really that much interesting coming out until the end of the year.

Maybe StarHawk, but I'm more pessimistic about that. Don't get me wrong. I love multiplayer and WOWhawk was amazing, but I'm longing for great single-player experiences and I'm not sure StarHawk will deliver that.

[sinncross]

It seems like people are disagreeing with price cutting.

Yeah sure, it is selling at a good pace. But in all honesty, they will want a price cut nevertheless not only to look more competitive, but also with the imminent release of The Wii U, to undercut that somehow.

I think a price cut is best, even if just a small one... does not need to be anything extreme as long as Sony can still profit from it.

[crzyjackbauer]

yeah it seems people are just retarded these days
no to a price cut?
i sold my ps3 last year because it got bored with it
but if you ask me a $199 price tag on a ps3 would make me think twice about getting it again

[hiredhelp]

your right it doesnt need price cut to maintain competitive.
it has free online that in its self is worth the extra cost let alone the rest it offers you.

[andibandit]

PS3 is pretty much doomed if it dosnt get a price cut soon. just look at how bad the vita did

[NYC_Gamer]

Here's my guess....both 360/PS3 will receive price cuts after E3...

[donniebaseball]

Yeah I think it's likely that both will receive price cuts at some point this year. Both MS and Sony will want to put the pressure on Wii U's launch.

[cynosure]

I agree
360 will definitely get one.It hasn't had one since slim release
PS3 will probably have to follow suit

[GodHandDee]

No it doesn't. It's currently handily outselling the 360 and wii in Europe and Japan. And is also very close to 360 in NA.

[Christopher]

This article is specific to NA. The analysts are from NA and the sales being noted are for NA.

[Snookies12]

Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account. A system would not be getting a price cut just because it's behind in one region.

[GodHandDee]

damn man you have so many bubbles 0_0

But like I said they are slightly behind 360 and selling almost twice as much as the wii in NA. This is while dominating in other regions. I doubt sony are unhappy with the situation. They are in a good state sales wise

[Christopher]

***Yeah but when putting up an article about a system needing a price cut, you have to take all units worldwide into account***

I disagree with that. The concept is based on a large market as identified by the region. When looking to see what would make changes to it, many of those have been covered.

It used to be, PS3 needs games. It's got games. Tons of them. Exclusives included. That didn't change the trend in NA.

It was then features. Well, it has those as well, including an alternative game subscription option, video watching (tons of options here), video editing, MMOs, etc. That didn't change the trend in NA.

So, what else is there that could be done to increase PS3 sales in NA? More games? That didn't really work in the first place. More features? They have to do that already just to keep up with Microsoft, a software company known for integrating everything they can get their hands on into their OS.

In all honesty, price is key. Will it affect worldwide pricing as well? Yup, but it still is what is needed in NA to make a change. Does it mean that the pricing shouldn't reflect a global initiative? No, but it's the one thing they can do to increase potential in sales in NA since they've tried everything else.

Well, everything other than putting out a new console with better capabilities but with a reasonable price tag.

[kreate]

@cgoodno

perhaps a 500m dollar advertising may do the trick?

Or is america just anti-ps3?

[lover2012]

1) would you plz add NA in the title bec this is so misleading

2) again looking at the numbers from NPD
Ps3 was only 30K behind xbox
Ps3 331k
xbox 371K
it almost neck and neck in NA
and you need to take WW units into account
where ps3 is leading the sales
not just one region that ps3 is behind by only 30K

that's like saying xbox need a pice cut to "remain competitive" in japan

[Christopher]

***not just one region that ps3 is behind by only 30K ***

Behind in 30k sales for a single month. That's 360k a year if you ignore that the variance is a percentage amount (not a flat number) that increases in difference during major game releases and Holiday seasons.. Meaning they are continually losing ground.

So, if 360 has 36m in NA and PS3 has 23M, that disparity is only going to continue to increase. They are saying a price decrease is what they think is needed in order to reduce the chance of that happening.

***that's like saying xbox need a pice cut to "remain competitive" in japan***

Please don't tell me you believe that. There are 7x as many PS3s sold in Japan as 360s. There are only a little more than 33% more 360s sold in U.S. than PS3s. The percentage of difference is slightly different so as to make them incomparable.

***perhaps a 500m dollar advertising may do the trick? ***

Only if they were doing along with a new concept similar to Kinect. Otherwise, they'd be wasting money on trying to get people to buy the same thing from the last 5+ years.

***Or is america just anti-ps3?***

Obviously they're not anti-PS3, they just prefer the 360.

[kreate]

"Does it mean that the pricing shouldn't reflect a global initiative? No, but it's the one thing they can do to increase potential in sales in NA since they've tried everything else."

it almost sounds like they tried everything else except a price cut. to my knowledge, didnt they price cut the PS3 already?

not too long ago it use to be 300 got down to 250.

obviously america isnt particularly anti-ps3 but if that's the case, what is it with america not buying ps3?

im sorry if im being nit-picky here but im sure sony is asking themself the same question.

EDIT:

"Obviously they're not anti-PS3, they just prefer the 360."

in other words, they are anti-ps3 .... -_-;;

[dcbronco]

kreate

Missed the articles on Sony's financial situation, huh.

There is a reason that Sony doesn't advertise much.

[Christopher]

***obviously america isnt particularly anti-ps3 but if that's the case, what is it with america not buying ps3?***

Microsoft owns NA when it comes to marketing. Sony doesn't have enough money to compete with the billions upon billions of dollars that Microsoft puts into marketing all of their products.

Most AAA multiplatform titles get the 360 swoosh at the end of their trailers in NA. Massive games get timed exclusives or special features (Skyrim is timed, CoD is timed, ME3 was Kinect, etc.). Even FFXIII and FFXIII-2 in NA had the 360 swoosh in the trailers. Still sold more on PS3, but they put a ton of money into that to take away a big chunk of sales from the PS3.

And these are all 'marketing' elements that we don't see like we did the $500m Kinect marketing over a 4 month period.

Sony did get it with Bioshock: Infinite. They also got it with MoH, and Dead Space 2, kind of, but they were weak and not major sellers. Microsoft gets them with the major releases.

***in other words, they are anti-ps3 .... -_-;;***

Anti means to be opposed to or against. Having a preference doesn't make you opposed to the other product, just means you prefer one over the other. I'm not opposed to seafood just because I prefer chicken over it.

@below:

***so basically, its not even about the price drop, its about marketing...***

How can it be about the marketing if they can't afford it? The option is drop the price or do nothing. There is no other option considering they can't make money when they are losing it.

It's about the price drop. If the price doesn't drop, they can't increase sales, they can't then increase marketing funds.

[kreate]

@dcbronco

yea they got no money, but thats no money now, they weren't always broke. they even sold 5% of the shares a while back to use that revenue for the ps3 and other products

@cgoodno

so basically, its not even about the price drop, its about marketing...

@above

"It's about the price drop. If the price doesn't drop, they can't increase sales, they can't then increase marketing funds. "

yea i totally agree.
just some points to think about was that, is a price cut going to really be that significant? may or may not be.

what if ps3 goes down to 199 and MS decides to lower the xbox to 149? and nintendo decides to lower the wii to 49?

what if its just a temporary boost in sales than the sales go back to normal?

now u got the same amount of sales but with less money coming back.

all they did was somewhat encourage the competitor's to lower their price.

so lets say with the money they made. they're going to market the same as before. what's to change? subway? 7-11? maybe now its mcdonalds?

who knows...

even if sony is broke doesnt mean they lost all hopes of getting money from elsewhere. i mean they're a big company with a good name.

they can always borrow more or just get more investors to join or ask the current board for more money to market their stuff to increase sales.

its all just speculation we'll just have to wait and see. hypothetical. im not disagreeing with u im just asking what ur thoughts were.

[blue7_7]

You do realize people like you said that last year that the Xbox 360 only sells in the US and then the year finished and everyone found out the Xbox 360 was the best selling console worldwide not just in the US. Just saying.

[cyclonus007]

MS was lagging behind Sony worldwide for most of last year until the holiday season surge that put Xbox over the top.

And where did that surge come from?

North America.

[jetlian]

what difference does it make? You dont even know what EU numbers are

[dcbronco]

kreate,

Sony didn't suddenly become broke. Howard Stringer warned company execs for years that they needed to make changes. They refused to listen to him. Sony hasn't made a profit company wide in over four years. And they have had losses in gaming since 2005. Development of the PS3 put them in a whole long ago. It has changed the last year or two for gaming. But there has been a shortage of money in the gaming section for sometime.

And despite what people think companies can't just spend no matter what. Sony advertised heavily at the launch of the PS3. Even gave away free TVs. But eventually money had to be cut to offset the losses on hardware and advertising is always a good area to start.

The Playstation name is already out there as evidenced by the number of disagrees of any perceived negative Sony comments. But Sony already has those people. The things needed to get others aren't commercials. They are price cuts. So you skip the commercials.

[smashcrashbash]

It's amazing how everyone is always telling Sony what to do as if they are some newbies to the industry, the same people that chanted the PS3 would have been dead by now.

[cynosure]

"RW Baird analyst Colin Sebastian weighs in on Sony's situation"

Analysts are paid to you know analyse things...
Nobody's telling Sony what to do

[Statix]

Yes, but many of these analysts don't seem to be particularly knowledgeable or insightful with their analyses. It seems short-sighted to say that Sony needs a pricecut to remain competitive, when they've already been more than competitive for the past several years. I don't see them trending out of "competitiveness" in the foreseeable future.

If these analysts are only focusing on North American sales, then that is even more short-sighted of them.

I think it's far more critical for Sony's longterm success that Sony starts focusing all their efforts to ensure that the next-generation PS4/Orbis is a success... This is far more important than a PS3 price drop late in the lifecycle just to try to sell a couple thousand more consoles per month in one region (North America).

[BitbyDeath]

Pricecut announcements are also great times to announce new consoles.

[Sharingan_no_Kakashi]

It'll happen. Prolly down to 200 or if they wanna be super competitive 150.

[TheUnbiasedLion]

Love N4G, I get people have opinions and everything but some times it's like the comments are directed at Kaz, like he will go onN4G read them and then implement them.

[mobhit]

....No it doesn't.

The fact that the PS3 is staying on top of the 360 is nothing short of amazing. It has the exclusives, the free online experience, and excellent services.

Sony just needs to push it more with advertising.

[dcbronco]

Sony doesn't have a lot of advertising money. Or money period. The exclusives don't sell enough. The free online service cost them several hundred million a year. They need to bring in more money and cut the things that don't make enough.

They really need to start charging something for that online service.

[mobhit]

dcbronco: Do you work for Sony? No.

[dcbronco]

Do you read anything besides game reviews?

Obviously not. Sony is a publicly traded company which means they publish quarterly and annual reports. So anyone that reads the business section of a newspaper, articles about corporations finances or those reports knows Sony has money problems.

[archemides518]

ok......how about they don't do a price cut and just release ps4 already!!!!!!!!!!!!!!!

[Tai_Kaliso]

Sony cant afford to cut the price of the PS3. They are making profit off of it, but if they shave anymore price they will be back to a loss.

Sony is already losing money on every Vita and people want them to lose money on the PS3 again? Its almost like people that write these things have absolutely no business sense.

We are close to a new generation of consoles, Sony cannot afford to take a loss on every PS3, PS4 and Vita. Its just not going to work out that way.

This generation is closed for all intents and purposes and the consoles sold at this point don't matter.

The PS3 is a great machine, but Sony was so overconfident coming into this generation and it cost them big time. The most powerful console NEVER wins the generation.

Its easier for developers to crate games on the weaker machine and port it to the more powerful one, which gave the Xbox 360 superior 3rd party games for most of the generation.

Also, Sony lacked any kind of real direction with their online, almost as if they didn't realize that online gaming would be so popular.

If they are smart they will implement a paid premium service next generation so that they can at least make some money while losing on every console they sell.

The fact is that every console sells for a loss at first, except for Nintendo consoles traditionally. Microsoft can offset that loss with Xbox Live subscriptions, Sony has no real plan like that.

The PS3 is already cheaper than the 250 gig Xbox 360, I just don't see how they could make it cheaper and still turn a profit, if people here really cared about Sony staying in business, they'd realize that.

[mobhit]

It must be fun presenting data with little or no evidence to back it up. /s

[BitbyDeath]

Sony have PS+ and Home making them money.

[Christopher]

***They are making profit off of it, but if they shave anymore price they will be back to a loss. ***

That was only true two years ago. Not now since they've gotten costs down even further over time. Same with Microsoft, who are only making even more profit than they were before on their hardware.

***Sony is already losing money on every Vita and people want them to lose money on the PS3 again?***

Incorrect. Sony specifically stated that with the Vita they would be pricing it to make a profit right out of the gate, that it would not be like what they did with the PS3.

[dcbronco]

Tai-Kaliso

The Vita cost 169.00 for parts according to iSuppli. They would be in the red again if they dropped the price of the PS3 more than $50. Unless they do a die shrink. They need to focus on a shrink if they really want to make it ten years. Once next generation console come out, it will be hard to keep the price of the PS3 above $200 for the high end version.

But they do have to charge for online.

And the PS3 will never catch the 360. MS has room to drop their price and remain profitable.

[joeorc]

"The fact is that every console sells for a loss at first, except for Nintendo consoles traditionally. Microsoft can offset that loss with Xbox Live subscriptions, Sony has no real plan like that."

NO PLAN? REALLY?
your going to say that when you have not even bothered to look for what Sony is going to do it seem's because Sony has a Plan and i would imagine its one that's going to net them quite a bit of Money to keep their network service free!

remember:
just because the business model that Microsoft uses. Does not mean that's the benchmark of a business model that everyone else needs to use.

If that was the case. Every service would be a clone of XBL. while fine for some gamer's many other gamer's would like choice. just like many people said Blu-ray was not needed an HD-DVD was not built right into the xbox360 system because people like choices.

yes they do!

And you want to talk about a way for Sony to offset these Loss'es and allow them to cover the cost's?

you said Sony has no such plan in place!
Well i think Kaz has quite a bit more info about Sony having such plans to go in place. an Its a hell of a lot more than many gamer's on this forum have. Here is just a sample of this plan.

Recent shipment number's for Xperia-Line of SmartPhones

Sony Ericsson Q3 2011 Results – 22m Xperia phones shipped to date; smartphones now 80% of sales

Sony Ericsson has just reported its third quarter results for 2011. Sales of €1.586bn was up 33% from the prior quarter but down 1% compared to the same period last year. These numbers mask the mix change taking place within the company as it moves away from feature phones to smartphones. CEO Bert Nordberg confirmed that smartphones contributed 80% to total sales during Q3

The company shipped 9.5 million units altogether in Q3 2011

Sony Ericsson has shipped 22 million Android Xperia phones to date. The company once again confirmed that Android is its main focus as it moves into 2012.

http://www.xperiablog.net/2...

no wonder Sony owns it 100% now that is quite a number of smartphones / Q: an with the Playstation Suite quite a number of smartphones per Quarter to target to sell Game Software and applications to.

That of course is just Sony only playstation suite certified smartphones an tablets other companies can release their OWN.

People are it seems so narrow minded about ..the PSVita needs its price to be viable in the market, when its not just about the PSVita, Sony wants to sell Playstation games. The mobile sector far an away outstrips the number of units sold an shipped per Quarter than all the game console's do combined in a freaking year.

It takes what 6 to 7+ years for Sony or Nintendo to sell 100 million+ game consoles where as right now Sony by them selves are.

"The company shipped 9.5 million units altogether in Q3 2011"

that's in just one Sales Quarter. an each one of those can play Playstation Suite certified games.

right now there are 8 such devices not including the PSVita which also will be playstation suite certified which would make it 9. from Sony that also does not include devices from Samsung, HTC, LG etc.

Selling playstation Software is a priority and already Sony is well on its way set to start next generation to sell more playstation games.

yes no plan's indeed/sarcasm...LOL

[Instigator]

Can they really afford to cut the price right now? Just 3 days ago the story about Sony's 4 billion loss topped the homepage. A price cut will only help them stay competitive for a short while, but slashing 50 off the price now will effect their economy for years.

It's selling really well right now as it is, so it's not really necessary until the Wii U launches.

[cyclonus007]

That loss comes from Sony's other departments that aren't doing as well as the gaming division. I think Playstation is the only thing keeping Sony afloat right now.

[xtreampro]

Well a slimmer PS3 is on it's way.

[cyclonus007]

The PS3 needs better bundles. $250 for the system is great but add a decent game, a downloadable title, and few months of Playstation Plus to sweeten the deal.

[SuperBeast811]

If you look at what you get though compared to the 360 it makes sense yes yes the 360 FINALLY has built in wifi but with the PS3 you get a bigger HD no 4g crap and rechargable controller gotta buy a $20 add on for that on 360 and a Blue ray player and free online play.so you get a better package after that you just choose a system that has the games you want but the cost is around the same if you want the same extras you can have it all on the 360 (except blu ray)but you gotta pay

[Malice-Flare]

nope they don't, and if they do, it would be when it's profitable to do so. competitive is subjective, worldwide it is competitive, 360 and PS3 are virtually neck-and-neck...

maybe when the WiiES (Wii Entertainment System) comes out, they'll cut the price so that they can release a PS3/Vita bundle...

[TheGamingArt]

What an ignorant article.

[FarCryLover182]

If the next-gen truly is coming for Sony and Microsoft next fall, then why not reduce prices? They might as well try to sell as much as they can to get rid of their stocked up quantities of systems.

[Persistantthug]

As of now it's only rumors and hopes & dreams at this point.

[FarCryLover182]

ah, that is true.

[IWentBrokeForGaming]

With PS3 having the most physical out of the box features/possibilities and some of the sickest exclusives this Generation of consoles has ever seen. For it to be so close to 360 in price... it's foolish to not get a PS3!

[Morgue]

exactly. How many years did it take MS to add Wi-Fi or HDMI but you still have too pay for a MS brand HDD. Joke..

[Drithe]

The technology is old and there are far better graphics on the PC, so yeah, Sony could lower the price and get more peeps in the Playstation family.

It would help to say the least. I would buy another one at 199 just to replace this old 80 gig that I have now.

[Forza_is_King]

LoL

Sony is in NO position financially where they can drop the price of the PS3 and they know it.....actually we all know it since we have all seen there current billion dollar loss. Sony also knows the IF they took that chance and lowered the price MS (who is currently sitting on the only console to have 1 price drop sice launch and is making a profit of $150 on each 360 sold) would just drop the price lower and again make the 360 cheaper than the PS3 which would put Sony in even a much worse position.

We all know MS will be dropping the price of all 360 sku's by $100 just before or just after MS releases the 720. It's in Sony's best interest to just wait it out and see where they are financially when MS lowers the price of the 360 and maybe (a serious long shot) Sony will be able to match the lowered price of the 360.

Until then, Sony is in a bad position all dating back at the high cost and low demand of the launch PS3.

[TheRealHeisenberg]

Oh go ahead and drop the price Sony. $199 price tag will guarantee me a third PS3 (want one for my office) w/o much griping from from the wife.

[stonecold3]

ps3 is quiet doing well even when final fantasy vs 13 comes out on ps3 most xbox 360 owners will buy a ps3 to play final fantasy vs 13 and the last of us same with mgs4 while ps3 is winning in aus new zealand europe japan so no ps3 dosent need a price cut to stay competive is selling more units and xbox world wide when you bring this into equation and how many xbox have been rebrought with it early problem

[TheRealHeisenberg]

LMAO. Not saying PS3 needs a price cut but FFvs13 will not move systems.

[M83_]

In fairness I doubt it would get a price cut. I was going to say it would definitety but then I remembered that last year there was a cut.
What I would like is a new slim, same price would be fine.

2006 PS3 debut
2009 PS3 slim
2012 A possibility?

[Clarence]

Funny. The PS3 only outsold by 34,000 in the US, but still is outselling the 360 WW. It would seem that the 360 is need of a price cut. If the PS3 does get a price cut you can guarantee that It will outsell the the 360 this year.

[Forza_is_King]

LOL last year the 360 was the highest selling console world wide. That is 6 years into it's cycle and the OLDEST current gen console and is still the highest selling HD console this gen and the #2 console worldwide with the Wii on top and the PS3 dead last. The PS3 has been in dead last since launch (don't forget the wii also launched the same time as the PS3) and although the majority of years where the PS3 has outsold the 360 world wide, the PS3 STILL has yet to past the 360. The PS3 is just not going to pass the 360 by the time next gen starts.

The 360 is the LAST console out of the 3 released this gen that needs a price cut.

[anonymous92348]

You guys do realize you're arguing over which multi-billion dollar company made more money right?

[Lucretia]

wtf? the ps3 is already cheaper than the 360, has way more quality exclusives, free online and built in lithium battteries in controllers aswell as being a bluray player.

doesnt need to drop in price.

apparently it just needs to focus on its eye toy and release FPS dbz games in order to get more sales because the average idiot casual gamer buys kinect and wii junk. (The junk of those things, not that the systems are junk or have junk games) im talkin starwars kinect, wii-fit, etc

[Main_Street_Saint]

I don't own a PS3 but I think the price just fine, IMHO. You get a pretty good value for the price tag.

[PixL]

People in the US will always choose price over anything else. I think it's cultural conditioning. The rest of the world will also look at quality.

[baodeus]

Price cut isn't really necessary, but it could help. Although i don't think it really matter that much anymore at this stage, plus with the pretty compelling rumors about next gen starting soon; well at least the Wii U is already confirmed.

@Pixl

I don't think you know anything about the economy or business for that matter.

1. Do European/Japan invest their business in China/India/Indonesia/Brazil (current favorite)/South Africa?

2. What is the reason why European/Japan/US investing into those "Emerging economic" countries rather than their own country?

3. Did you ever visit Spain/Greece? What is currently happening over there and why do they need bail out (Greece)? Do you think people have jobs over there or you see young people walking around doing nothing or just getting inline for food donation? Why do European in such economic crisis if they invest in their own countries and opening jobs?

3. Where does Sony assemble/made their PS3 currently, it is Japan or China (just look underneath your ps3 slim if you have one)?

4. Do the Wii and 3DS have higher quality than PS3 or PS Vita? Why do Japanese prefer them instead of ps3/PS vita in Japan, where it was Sony land for the last 2 gaming generation?

5. If you can answer those questions, then do you think price isn't important everywhere else and they only care about quality regardless of price?

Do you need to read more economic articles/analysis before speaking? I think you should if you want to make a more compelling argument. Although you would get disagree instead of an agree like you do now on N4G since these guys on here surely know their economy status.

[baodeus]

ah...so i see you have at least 4 that agree with you. How about the 4 of you help PixL answer those questions eh? I give you the benefit of the doubt that you guys know exactly what you are talking about.

Lets be adult here and have some legit discussion shall we or are we just gonna stick to the usual BS without anything to back them up?

Here is some explanation on the economy:

Purpose of European form the Euro currency:
- get the advantage in trade

Problem:
- they only get that advantage if you invest outside of Europe -> jobs being export to other emerging countries because it is cheaper.

Reason for exporting:
Almost every consumers, if not all, preferred good at a lower price but with good quality. How to do it? They open companies else where that are cheap (using their currency advantage) to produce more goods and at cheaper price.

Problem:
they bring those goods back to their countries to sell, except well people don't have jobs (since jobs have been export to other countries), consumers don't really buy much anyways.

How Government trying to offset this issue:
- increase tax on import goods while lowering taxes for business that stay in the country. See what Obama is trying to do right now.
1. accuse China of keeping their currency low
2. increase import taxes

Question about Quality vs Lower Price:

1. Which one is consistent (doesn't change) from one consumers to another: They want both quality and lower price (consumers are greedy, same as business)

2. Which one quality or lower price varies from one to another? Quality varies quite a lot doesn't it because people don't perceive quality in the same way, but all of them do want lower price.

3. So which one should you use to back up your argument, something that is consistent or something that varies?

That sure explain "the rest of the world looking at quality" as you mentioned is just pure BS.

[PixL]

I was making a social observation, not economic one. I have one example to support my view, quite a relevant one because from console market: X360 had a failure rate of 50% a year at the beginning of its manufacturing and 90% over two years. In most EU countries, anything of such poor quality would fail terribly in terms of sales and the company would go bankrupt. We expect things, especially pricey things, to work for a said period of time. Americans just go out and buy a new thing. Of course, I don't say ALL Americans and ALL Europeans (or people from everywhere else) but it's a clearly visible trend. And until now, many people here on N4G don't see ANYTHING wrong with what Microsoft did at the beginning of the generation. Another supporting proof: number of 360 consoles still being sold in US. They don't go to new people, they go to the same people who bought Jaspers and Falcons. If I buy something which breaks too soon, I won't buy from the same brand. It goes with ANY brand. I don't care if it's more expensive, even 50% more. I don't calculate "it'll work twice as long". I just want a good product.

That's why I don't trust some companies. Not because they can't do reliable things. They don't want to. They want you to replace them soon enough so they purposefully make them last shorter. And it doesn't matter where they order the production, is it China, Malesia or Singapore. Everything is about quality control and company's policy. Most things could be much more reliable and durable according to the technology we have. Unfortunately they aren't.

I'm not trying to judge here. Just making a sociological observation, that's all. Don't copy your school books for me as I'm totally not interested in economy. And for the record: most things in US are incredibly cheap for us: fuel, electronics, food, etc. If people in US were to pay $300 for X360 4 GB, then maybe they wouldn't sell that well. You see $50 difference between the cheapest model of two consoles, I see no difference in price, big difference in range of services they offer here and, finally, a very important difference in quality.

That was on topic. PS3 doesn't need a price cut, at least here. But, of course, it would be welcomed because now it's about $320 equivalent for the 160 GB model.

[thrashermario]

price cut it already, mine died 2 weeks ago while playing uncharted 3.

[ufo8mycat]

The PS3 continues to outsell the 360 World Wide, so why does it need a price cut to remain competitive, when it is outselling it's competitor?

[CaptainofCrush]

If "remaining competitive" means being in last place, then Sony doesn't need to do anything because they've remained in last place since launch.

[ufo8mycat]

The gap is only 2.5m and the PS3 launched a year later. In other words the PS3 has outsold the 360 since it came out. I would hardly call that last place.

PS3 - last place in sales
- first place in game quality & exclusives
360 - first place in sales
- last place in game qualiy & exclusives.

So which one is more important to the gamer, 1st palce in sales + last place in games OR 1st place in games + last place in sales?

I know which one I'd pick

[A LIVING LEGEND]

A price cut,nothing more,nothing less to remain competitive.
not rocket surgery and definitely another step ahead of the competition.

[EffectO]

Hardware sales are pretty irrelevant by now,few millions here or there,who cares.
Sony should lower software prices,though.

[Rhythmattic]

Who the F*&K cares...

Most people buy their chosen console because their friends are on it...(not me, I have no friends) Whats so hard to understand ?

The PS3's "3rd place" (a doctrine used by 360 owners) is not soooo bad... After all, it isnt far behind the 2nd......

Competitive? Add XBL and it already is.

[Adolph Fitler]

:Syphon Filter 4
:Medievil
:MGS5
:The Getaway
:8 Days
:Primal 2
:Ghosthunter
:Kinetica 2
:Jet Moto 3
:Destruction Derby PS3 (Done properly, not like PS2 abomination).
:Lair 2 (No I'm not joking, but give developers time to hone a truly great Dragon game, I love Dragons, & these consoles have the power to do a lot better than the O.K., but far from great Lair).
:Timespitters 3
:Mark Of Kri 2 (Original was awesome game that never recieved half the praise deserved, & anyone who hasn't played that still has PS2 or b/c PS3, get it & play it)
:Rise To Honor 2 (Bring Jet Li back & make better than 1)
:GTA5 exclusive for 2 years...(Pony up Sony, it will lead to you winning the war.
:Resistance 4 & get Insomniac back as exclusive before they go out of business, or are EA owned, then shut down for being rushed to make mediocrity)
:N.B.A. Shootout (Once upon a time they were THE BEST B-Ball series).
:Jak & Daxter 2 ( I say 2 cause I want the series to go back to being a wholesome, awesome platformer like part. 1)
:Blasto 2

And any old PS1 or PS2 classics getting sequels would be awesome & help Sony be more than competative.
Bring back more platformers Sony, Mario has the market cornered due to absolutely no competition anymore. I like Jak & Daxter more than any & all Mario's ever made, but seeing as near every developer has thrown in the platforming towel, to make 2nd & 3rd rate FPS's, Nintendo is the only place to go for platformer bliss.
With more of the Sony games people associate the Playstation brand with, the more people that will buy a PS3, or come back to "The Darkside".

[airforcex]

Price cuts won't make a difference if Halo comes out this year. Too much Halo hype. People seem to miss the point that Sony went from undisputed king to playing catch up. Even if they pass MS this year (won't happen), they lost. By the way, I own both.

[Lilioups]

if the numbers are higher its not a lost its a win
doesnt matter when...winning is winning

and again sony outsells the 360 worldwide

[TheRealHeisenberg]

Not in 2011.

[Adolph Fitler]

I think people also forget that 360 surely will outsell the Japanese invader in the U.S. without question, so the people claiming Americans judge on price over quality is farcicle at best. Americans are very patriotic for the most part, VERY PATRIOTIC.....Just like Japan are with there own console manufacturing companies.

MS is a huge American company...other U.S. based console manufacturers from the past were dead in the water, due to investing all there money into the console, but not being rich enough afterwards to market there item properly, & with that having no developer interest on a decent scale.

Only severe patriotism can explain the blind, stupidity of buying multiple 360's due to the 100% RROD failure rate for the 1st 2-3 years of it's life (Everyone I know here in Australia either has replaced there's once, or had it repaired several times).
The reason many have stuck with the fault laden console as well, is because of there large collection of games accumulated for the machine.
But outside my country, & the rest of the countries around the world, except America, Patriotism is a huge purchasing factor......the fact they think there keeping there money in the U.S. weighs on many U.S. consumers minds.....especially considering the harsh financial times they have experienced over the past 3-4 years.

[airforcex]

Wrong. Americans have supported every Japanese company since the early days of videogames. Americans are buying 360 for Xbox Live. If your friends play online, you want to play online with them. It is the Japanese market that has never given a chance to American consoles. As a matter of fact, Japanese companies like SEGA didn't respect its American counterparts even when they were right (Dreamcast, Genesis, etc.) Why is it that in Europe the playing field is closer between Sony and MS? In Japan, not even close. Even in America, Sony is doing well (not winning, but well). It's not about patriotism. If so, Japan is the worst. Xbox Live; that's it.

[chukamachine]

Undisputed king means nothing in hardware or software.

Too expensive from the getgo.

People have short memories and are only interested in the next best thing.

MS beat them to the next gen punch.

Nintendo came out cheaper with a gimmick that caught the media's attention.

Nobody realised Nintendo would have the sales it's had.

Sony should drop the price, and really advertise just before halo4,lol.

[Lilioups]

they outsell the 360 worldwide for more than 2 years straight so i dont see why they should do that.

They closed the gap from 9-8.5mil to 2mil despite the 17months headstart of the 360 so again i dont see why.

but hey if they do a price cut even more sales that it is right now worldwide

[airforcex]

Ok, now you're making stuff up. 17 month headstart?Nov 2005 and Nov 2006, and you couldn't find the system in stores due to supply issues (and RRoD). Xbox was the best selling console of 2011 worldwide.

http://www.gameinformer.com...

[Horny]

I don't think the price is too much of an issue for what you get.
However, Sony needs to cut the price everywhere but the US. Europe, South America, Asian, and Africa pays a crap load more especially the less developed countries. Start with Europe and Australia, pretty big markets for Sony and the price is still a lot higher than in the US.
I know its probably not in their power to impact the horrendous prices in places like Brazil but Im sure they could manage a little something.

In the US Sony has pretty much lost already, which doesn't matter if they have the rest of the world. 360 won the media war here and in the UK and Sony doesn't have the funds at the moment to compete with MS in advertising and winning over their most hardcore fan base.

[ForROME]

PS3 is a solid machine but lets face it, it didnt have the same effect the PS2 had. They were cocky didnt take their competition seriously "next gen starts when we say it does"

Thought anyone would buy their product "we could put playstation symbol on toasters and people would still buy them"

Hardware and software team didnt work together throughout dev

NOW* you have the right guy leading the company, I think PS4 will be what PS3 should have been.

[portal_2]

Pretty much this. Lets hope lessons are learnt.

[kewlkat007]

Didn't the PS2 get to $199 after 3 years? and they sold over 120 million consoles to date...

I doubt Ps3 does that any time soon...because of the resurgence if Nintendo and a much more formidable Microsoft.

Just admit it, things have changed a little this gen...Sony has PEAKED in all aspects of it's BUSINESS. If a new box is under way within a year, a price-cut would help the numbers, regardless of which region.

[mr_badhand]

Another price drop!?

Let Sony make some sort of profit please!

[Jason143]

Price is fine. PS3 has enough exclusive content to appeal to any hardcore gamer. Any hardcore gamer already owns one anyways. In all honesty who cares? Fanboys are missing out if they only own one console so its their loss.

[BertlSenix]

The PS3 was the best SELLING console in 2011 and is also doing best in 2012 for now.

They don't need a pricecut but it would of course boost sells even more and push them ahead of the 360 at the end.

And before any one says "BUT MS TOLD THEY SOLD THE MOST"
No they just shipped the most
http://gamrconnect.vgchartz...

PS3 is number one.

[airforcex]

Sorry, my source is better than yours:

http://www.gameinformer.com...

VG Chartz is based on estimates. Your source doesn't say who conducted the research, etc. Anyone can post anything. Funny thing; I own both consoles.

[ZBlacktt]

The PS3 is not some DVD machine.

[sandman224]

I think the ps3 is a great console. I think the only reason why it's not doing as good as the 360 is because it's not an American as Microsoft. And there to many white stubborn rednecks out theres that won't buy a foreign product because it's not American. But you'll see these dumb ass hillbillies get in there honda civic and go shop at Walmart the next day.

[thatruth86]

WTH lol definitely does't with all the bundles the price is right sony will do great with or without price cuts ps3 is the movement

[monsterduc1000]

On a world scale, the PS3 has been leading every week since Christmas. Just head over the VGChartz and check it out. Besides, in order to get the functionality of the PS3 out of the 360, you have to pay an extra $50 a year for the gold membership. No netflix, no online, no anything extra unless you pay that 50 bones!

[Run_bare]

Sony is fine, I support Sony all the way. The price is very reasonable today, but if price cut is under way, it will be better for the gamers market. I might even buy a second one for upstairs just for Blu-Ray player.

[portal_2]

I would like to see another redesign before next gen hits, WITH all the bells and whistles - super sexy design, PS1/2 BC, quieter, cooler etc and variety of colours. Sony do your marketing and promotion.