With Sony more than doubling PS3 sales in the April-June quarter from last year, the company is reportedly still struggling to reduce the console's production costs.
Drop the price they have to. They have to make it attractive to developers!
They have to lower production costs, like it or not. The console war depends on it. Because anyone with common sense knows that price is very important. It's a price war, PS3 started doing better when their pricing became closer to the XBOX 360. I think that's obvious.
"the company is reportedly still struggling to reduce the console's production costs. " As opposed to them 'casually trying' to drop the price, or 'not struggling' to drop the price? How the hell is this news? Hey, here's a late breaker: The world is reportedly still trading currency for goods and services. There really should be some sort of standard before letting this sort of crap on N4G.
The fact still remains, Which ever console the BEST games will be on is also where the gamers will be on. PS3 won't have to cut price if the exclusive games are AAA.
This story has nothing to do with developers cloudman. And how can they lower production costs if they drop the price? They would then have to lower production costs even more. Cos eventually they would like to make a profit on each console sold.
@lightning Anyone with common sense knows price has a great roll in selling something..... any anyone with business sense will know that dropping the price drastically will not help sales that much. The price is right .... right now for the ps3.... Ppl will demand it at that price and it is SHOWING.... Its not like the xobx where its slowly losing steam... MS is not stupid so they reduce the price to spike demand. Sony does not have to do this right now because they are spending their money marketing their games hence demand will increase. Now if ps3 did not have any games sony is in trouble.... but they do.
I bought one, and it's been a sound investment so far. Touch wood. Drop the rpice whenever they can, btu don't rush it, if they can sell for more money. There are certainyl a lot of people holding otu for one, due to the price.
PS3 is at the right price point if you think about what it delivers...here in Europe it costs as much as an X360 Elite which doesn't have BR player, built-in Wi-fi nor built-in controller batteries...or is touch sensitive like the PS3, which also doesn't have outdated disc trays nor enormous power bricks... X360 doesn't support TrueHD Sound/DTS HD audio nor HDMI 1.3 either...SOOOOOOOOOOOOO If people want to play MGS4, Killzone2, R2, LittleBigPlanet, Motorstorm:PR, SOCOM:Confrontation, Wipeout HD, inFAMOUS, etc they better start saving bucks and stop crying about 50, 100 USD /EURO. SONY knows that and they are not stupid, that's why the put out all those games....it took ages before MSFT droped the price of the X360, why SONY would do that when people is eager to pay that for a console that delivers features + AAA exclusive games? Most of those crying are X360 onwers that they think the X360 is worth what it costs today but not the PS3 but they still want one
I disagree. Sony doesn't need to cut the price of the PS3 just yet. You have very promising games coming out and that's more than enough to convince a next-gen buyer why they should buy a PS3.
Cutting production cost does matter to Sony because they don’t want to post a lost for every PS3 that they sell. Sure they can make it up in the AAA games they are planning to release, but no matter how you look at it you ideally don’t want to lose money to make money.
well its a hell of a machine lol, all parts are well made and good quality plus thos parts that are used are quet new so they will cost alot for a while now
uh.... (scratches head) erm....SO????????
When Sony gives up struggling, then everyone should worry, but as long as they're struggling to do so I don't see the problem. It's got a lot of moving parts and a lot to offer the consumer. 400 is more than fair for it, hell I paid 600 for it and if you deduct the cost it has had a 100 dollar price cut each year it's been out. I think Sony has been more than fair with the consumers for the pricing. Is it still too high? Sure, but it's not Sony's fault, either. 300 would look amazing, but we just can't see that happening for awhile. Not with Blu-ray just taking off as the primary media for the future of the industry. Next year Ps3 will hit 300, subsequently in its 3rd year no less. That is when Sony's sales will surge past the competitions. Edit to mart above: Mart, I have nothing but respect for you but I do have to say that while you are right with the 200 price point for mass market penetration, you also have to take into account consumers know how fickle Microsoft can be and 200 dollars could be close out for their new system.
it will be 350 euro for christmas
“The PS3 console is still unprofitable alone, but Sony is struggling to gradually reduce the cost of production.” If they are going to include this quote in the story, they should mention the person that said it. Just another example of poor journalism.
I don't understand why so many PS3 fans disagree with needing to lower the price? I mean when PS3 was $600 it was dying, when they found a way to make the 40GB for $400 they started blooming. It's not that complicated people. PS3 and 360 are almost the same thing, so if one costs too much more than the other, it's gonna struggle. It's a battle to try to stay attractive to consumers.
the article is talking about production cost on SONY's end. Haven't Sony been selling the ps3 at a lost since launch, and having never charged a dime for the PSN? and after all the BULLSH1T the xbox fanatics had to say about the PS3, things like. But, but... the ps3 is just a blu-ray player, the ps3 sucks, the ps3 is this and that....now you have the guts to say, and i quote: "PS3 and 360 are almost the same thing, so if one costs too much more than the other, it's gonna struggle. It's a battle to try to stay attractive to consumers?" cmon man, I've got a simple answer for you....errr NO. you can't browse the internet on the 360 you can't access you're 360 from a different country the latest and best movie tech is not compatible with the 360 and many more that i cant think about right now its like saying a Calculator is almost the same thing as a desktop pc. the 360 play games and DVDs, while the ps3 Play the biggest game franchises, (That's right i said it, and before anyone argues that, please make sure you can come up with 5 games that sold over 6 million units and that is not or will not be on the ps3.) DVDs, Bluray, Internet, WIFI built in, and remote play, and bunch more stuff. oh yeah, nevermind,i just realize something, you are actually right, the 360 is alomost a NEXT GEN HD Entertainment system...almost.
He is saying lower the price, and is getting slammed with disagrees. I don't get it. PS3 fans have too much pride or something, they think that PS3 is the much better machine that will produce way better games. They just think that PS3 can beat 360 even with a higher price.
"they have to. They have to make it attractive to developers!" Thats interesting, considering that there is only 1 developer that has problems with the PS3. And thats Valve. And thats what people are disagreeing with. Only an idiot would say that a lower price is a bad thing, and the same could be said for the person that believed it.
Lightning, I've been reading your posts. Every single one of them is anti-PS3, anti-PS3 people, pro-xbox, pro-microsoft. Give it up already. If you really do own a PS3, then just get rid of the damn thing if you hate it so much. Why in the world would someone invest $400-$500 on something just to constantly bash on it?
Struggling to not cry moar!
I guess it's nice for me as a PS3 fanboy, to have an xbox's best jab beign about me not crying more. It's a dark time for the 360. But you still have awesome games coming so don't worry, and don't cry. I'd just say, that you've got your money's worth out of it. It IS and will be a great console for a while yet. I just see the PS3 outliving it. By a long shot.
but hey just wait till all them 120 MILLION PS2 fans go PS3 BOOM! instan cheap. and LBP will help with them buying. and poor XBots the PS3 is EXPENSIVE CUZ ITS NOT A CHEAP PILE OF CRAP OLD OFF THE SHELF PC PARTS CRAMMED IN A UGLY WHITE CASE!
now is when the ps3 starts to do great what the hell are you talking about right now is the moment where ps3 fanboys get hyped up cause their games that they have been waiting for are about to come out its just like the xbox fanboys right before halo only this time theres a sh!tload more games
yeah, strange thing that theyre "Struggling" becuase I remember hearing the production costs for the ps3 where half what they were thanks to blu-ray technology costs lowering... strange thing though huh?
They're hardley struggling. They've halved their production costs (ages ago), got the PS3 to a point where it breaking even or even making a little money by itself, and their games division is making profit again. All within the first 2 years of releasing one of the most ambitious and expensive to develope, products of all time, with 2 separate brand new technologies being needed to complete the machine. Sony didn't just slap together the next line up of PC parts and call it a console and they've come an amazingly far distance in the last year alone. Who would have though a mere couple of months after Halo came out PS3 would start selling more world wide and never look back.
this should not really be a problem,if sales of the ps3 keeps going up year by year it will bring in more profit,its only a matter of time...i hope they just keep doing
So this news means nothing to me as a gamer...
Around winter time i think they`ll drop the price a bit. All in all, the PS3 has great value for what you`re paying for with Blu-Ray etc, but it`s still too much yet. Maybe a LBP bundle with the PS3 could change some minds though ;)
Sony has already reduced the price of the PS3 by 33% in the first 18 months of it's cycle. Obviously we have all seen how they have done this as they stripped features and components out to make the machine a core game machine for the next generation. I still prefer my 60 gig over anything they have produced since launch, but in all honesty the machine available today is probably the machine they should have been producing since day 1. Had they done that, the negative publicity surrounding the high costs and removed features would be non-existent. The cost reductions Sony has already taken with the hardware are probably the most aggressive we have seen. Not much more can be done in a short time to make the production costs anymore efficient. They have already done years worth of reductions in a relatively short time. Typically a console manufacturer doesn't make a profit from the hardware until the end of the life cycle. Right now they are in a position of controlling losses which they have done a great job with in the last year. One of the reasons 80 gigs were not available for the first 6 months of 2008 was to help reduce losses taken by the more expensive console. It is obvious by now that the only reason we seen a b/c 80 gig in 2008 was to make the MGS bundle more attractive. Finding the right balance of sales/losses is a very complicated process. Sometimes it is advantageous to limit a products availability to control these losses. As a fan it might seem obvious to lower the price or ramp up production, but how that affects the company financially is of even greater importance. -Death
Console prices aren't going to come down THAT fast in a few months. They are still using the same console configuration as far as hardware goes, so they aren't going to slice off the $100-$200 they cut off by introducing the 40gb model. There was recently a new PS3 SKU submission to the FEC filed by Sony. This was probably for the 80gb which would be using smaller Cell/ possibly smaller RSX and would reduce the price to produce the PS3 quite a bit. A price cut is very possible this holiday season, probably right around the time Resistance 2 is released. With Resistance 2, LBP, and Socom moving lots of first party software, it will be a lot easier to recoup the hardware losses with software sales.
They could always remove PS1 BWC bwahahahaha
its using software BC. Good try to troll though.
Removing that it mean contents of the PSN Store goes to waste *cough*therePS1gamesonthere*co ugh*andmoretocomes*cough* Next time think with a little logic =P
...while the "superior hardware" cannot.
The PS3 is just one big failure. I never thought it was possible for a company to screw up this bad. Sony is using old and outdated hardware and still it costs too much. The PS3 is dying away. By this time next year, people will have stopped buying it and Sony would be deep in the red. Oh wait, they are already in the red! Haha, once again this shows why the 360 is the best machine.
Old and outdated hardware???? Well the 360's hardware must be fu*king stone age then.. What an idiot. PS3 CPU and main CPU memory is still more advanced than a high PC's, while the 360 is using cut down low to mid range PC parts, damn even my 4 year old PC is way more advanced than a 360. Also, hows that low spec DVD drive working out for you???
It was back in May that SOny announced a $3.31 billion loss on the ps3 venture. While software sales for PS3 have increased, the ps3 hardware is still sold at a tremendous loss. I predict a $4 billion overall loss on the ps3 by the end of this year. What say you?
At least the MS RROD only cost $1 billion. Plus they're also making profit now
How can someone disagree with my statement? It's a fact that MS set aside $1 billion for RROD problems and it's also a fact that the 360 division is making a profit now.
2 billion loss http://www.dmwmedia.com/new...
4billion loss over the original xbox http://blogs.guardian.co.uk...
Well apart of Sonys "Ingenius".... Marketing strategy apparently they knew that blu-ray tenchology costs would go down, I remember from an article in the past that the PS3 is starting to turn profit now, becuase every console they sold would cost them about 27 dollars, it was very expensive to develop I suppose and wtf are you some kind of industry analyst stfu.
Considering Sony lowered PS3 production cost by 50% in under a year, how are they struggling.
because that production cost reduction (which is actually much less than 50%, they really just gimped the components) is not enough to cover the cost of the ps3 console. ie. it is sold at a loss. In stark contrast: Sony sells the ps2 hardware at a profit. MS sells the 360 hardware at a profit. Pretty simple really. see?
This is the only console I know of that made money on launch. The Xbox 360 was sold at a loss when it launched like every other console before it. If the Xbox 360 is selling for profit today, it is because it has been around longer than the others and will most likely change when the price drops again. It's nice to sell without taking a loss, but controlling loss as you try to reach higher sales is the difficult part. The PS2 has been selling for a profit for a few years now. Sony was able to do this since the console has been around for so long. The PS3 is a very complex machine by comparison and will take years before the tech is old enough that cost reductions are as effective as PS2s. This is simply the way technology and electronics go and by no means a reflection of any consoles success. -Death
They better hurry.... Metal Gear is gone, FFXIII is coming to the xbox 360... Gears 2 is around the corner... microsoft possible price drop.... xbox 360 sales up... PS3 sales are super down...
and I am flushing you off.
the fact is Sony is ripping off european buyers this is because the new 80GB model of the PS3 will cost $300 in usa but they will sell it for £300 in the UK how fare is that, its 2 pounds to 1 dollar that mean if Sony can afford to sell the ps3 for $300 in usa why not £150 in UK
Europeans in general make more than Americans also. Your income is higher and your cost of living is higher. It's an apples to oranges thing. -Death
well $399.99 converts to £203.35 on current exchange rate so sony could easy afford to lose £3.35 plus with the xbox arcade rumored to go to £100, sony better start dropping the price to compet i preffer my ps3 to my 360 and wii but i have a large distaste for a company that makes billions every year that can't help there customers with a few qwid
If tou look at the PS2 sales, it is for year on year nearly par with XB360 and behind the PS3. It will have a 10 year life. The PS3 will have a 10 year life as well. MS would have struggled as well if they hada BR drive in - instead they have a drive that scratches disks and sounds like a small aircraft taking off. My PS3 is easily the most used device in my home - at the moment it is playing music (Nicolas Louw) while I am having braai with boerewors. Quality costs - and I for one am happy that Sony did not skimp on the parts - it is a hell of a lot better than the PS2 - which scratched some of my disks (well.. most of them - but the PS3 can read them), did not play all DVD's without skipping. The PS3 is awesome - We play games, watch movies, listen to music - it is on nearly 15 hours a day. Well done Sony. When they shrink the chips it will become profitable, and slimline as time goes by. For now I am happy with my 60GB Euro model.
Which in just the span of a year and a half is an incredible feat. But it really is going to be a struggle from here on out. There are so many high-end components in the PS3 that I can only see them dropping the system to $299 in its current state (end of next year). After that point, it's going to take a Slim-line PS3 to allow for even lower production costs, i.e. the $199 price point, which will probably be the lowest price in the console's lifetime. The PS1's lowest price was $99, and the PS2's lowest price has been $129.
To the author of the article, this is not the first gaming product that sony has created. Struggle, what the hell is that all about. In my opinion, ps3 offers the most "bang for the buck" of any product out.
Well its not exactly "news" that a console manufacturer loses money on a new console. I mean Sony are going to support the ps3 for 10 years and its still in its infancy! only 1 and a half year into its life circle! but i was curious about one thing..can Sony release a Usb thing that u can plug into the the Usb-ports which somehow allows u to play ps2 games? i mean they can charge 50 bucks for this thing. is it possible? By doing that they might earn some money on including backwards compatibility and give the consumers a choice on whether to play ps2 games or not..what do u think?
Great, yet another "news" based upon an article from JANUARY 2008. Is it OLD news week again?
Standard Blu Ray, Standard HDD, and Free Online service. They have already shaved off a Justifiable $599.00 price of admission down to $399.00. How much lower can they go without losing to much money? Personally, as it stands, I dont think the PS3 is a good option for people without a healthy income. If they cant afford the PS3, they sure are'nt going to be interested in buying $60 dollar games and $30 dollar movies. I think Sony should just continue with the $399.00 sku and continue to bring the exclusives and then see what happens. If games Like God Of War, Socom etc dont bring in the sales then I'm sure they will have no choice but to drop the price again. I'm happy with my PS3 and the $399.00 I payed for it was well justified as I tend to support all aspects of it Games, BR Movies, and PSN Games. Its a beautiful and carefully crafted machine and has to be to owned to be TRULY appreciated.
"article" that says nothing and offers nothing to back it up
very true the site looks cheese balled with ms all over it.
Production costs have already been lowered dramatically. Sony isnt just a console producer. They also generate revenue from, blue-ray players, vaio laptops, digital camera's, and televisions. They're not taking as big of a hit as when the ps3 first launched.
the ps3 is gonna have to drop their prices pretty low with the xbox 360 price cuts this fall the xbox arcade will cost less than a damn wii!!
getting worse by the day.
They're making the same mistake M$ made last gen!
last gen meaning the 360? yes the 360 is last gen might as well compete with the ps2
Sony is as rich as F***, so please a few BILLION FUC*SID*SFSLFD dollars wont hurt anybody, especialy Sony, It's as if people thing Microsoft are the only ones in the fortune 500???