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Sony Boss Spits The Dummy Over PS3 Pricing Claims

The boss of Sony Computer entertainment is really "Pissed". In an emotional telephone call he claimed that Sony was not price gouging Australian consumers despite the fact that as of today the cost of an 80GB Sony Playstation at JB Hi Fi is $688.95 while at Best Buy in the USA it is selling for US$399.00 which based on today's exchange rate equals A$595.00.

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smarthouse.com.au
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chaosatom3158d ago (Edited 3158d ago )

I think 80 gb is $500 in Us. right? so a $95 more in austrilian.
A Us game is US$60 which is still $15.00 less than Australian game.
i think the author might have missed these.

But on topic: I really do think that they need to adjust their price and give Australian a fair price.

I think there might be some other factor that they are missing except the exchange rate, that is causing this.

Spike473158d ago

he sounds really "pissed".

pwnsause3158d ago (Edited 3158d ago )

the 80gb cost $400 US here. Now the 120gb bundle which includes Uncharted costs $500 US

Sarcasm3158d ago

"Now the 120gb bundle which includes Uncharted costs $500 US "

160gb

Serjikal_Strike3158d ago

holy sh1t...whats the min. wage in Australia?

I sure as hell wouldn't have as many games as I do now if I lived in Australia.....

If anybody needs to see a price drop on ps3s it over there

Nihilism3158d ago

Games here are really expensive, $99 aus for pc games, that's double the cost of games in the us, and although the aussie dollar sucks right now last year it was like 96us cents for the aussie dollar....there's no excuse for that sort of bs, ps3 and 360 games are like $110

Rofflecopter3158d ago

eh, maybe shipping stuff out there gets expensive. but $100ish dollars per console is nuts..

XboxOZ3603158d ago

The author has missed the entire thing and done no homework whatsoever.

You can NOT base prices and RRP on simply "exchange" rates of currency. There are many other factors which help move a price point up when it comes to retail products.

Any person worth their salt should know this, and no wonder the guy at Sony is issed . .I would be to if someone made stupid claims like this.

No matter what goods coming into Australia or any other country, they are priced on factors such as local taxes, import duties, local freight costs (have you actually seen HOW BIG Australia is?), and the main ports are Sydney and Melbourne, everything else is trucked or shipped by air.

Guess what the freight costs are . . HUGE.

The author needs to make an appology rather than blame Sony

Nihilism3158d ago

your wrong it's probably cheaper to buy one from the us and get it shipped than it is to get one in aus

Cryos3158d ago (Edited 3158d ago )

http://www.fivestarshipping...

-edit-
actually dchalfont, i just got a shipping quote from fedex (for fun) and I was quoted $480.58

maybe I did something wrong, or maybe there's cheaper, but it just gives you an idea

just try it: http://www.fedex.com/ratefi...

your address
Sydney, 2000
1 package
15.0 pounds (from amazon)
20x20x20 (from amazon)
$400 content value

snp3158d ago (Edited 3158d ago )

but not 'that' expensive (when worked out per item). Nor are import duties or GST enough to cover all of the price difference.

Though i agree with agent plang overall - with the dollar where it is things aren't too bad atm. Last year when the dollar was par for a good bit of time was when the gouging had reached pi-s take proportions.

Bathyj3158d ago (Edited 3158d ago )

"No matter what goods coming into Australia or any other country, they are priced on factors such as local taxes, import duties, local freight costs (have you actually seen HOW BIG Australia is?), and the main ports are Sydney and Melbourne, everything else is trucked or shipped by air.

Guess what the freight costs are . . HUGE. "

Nice point.

I dont think American understand how big Austraila is, and theres not a town every 10 miles on the freeway. Our smallest state Tasmania is bigger (or about the same) than Texas. Yes that "Bigger than Texas" phrase has no meaning here. Our steaks are bigger than Texas. Our Big state, WA is probably about as big as 1/3 of the US. I'm just guessing here, consult your atlas for accurate information.

Heres a good example. A flash flood destroyed a road from QLD to NT a couple weeks ago. Look at a map now. Anyone looking to drive from QLD to NT while the road was out for weeks, had to go the opposite way down through NSW, VIC, across to SA, then up through the middle of the country, through Alice Springs and up to Darwin NT. Thats how remote some places are here, and thats what can happen when one road washes out. If you dont live in Sydney or Melbourne, this is a part of life. 98% of the population live on the coast, the very edge of the country. Thats alot of travelling to get from A to B to C.

Then we have a small population which means not as much volume, which means higher prices. Imagine the population of NY and change having the whole US to themselves. Thats roughly our population.

snp3158d ago (Edited 3158d ago )

I'm sorry, basing the price for each item sold on what it takes to get a PS3 trucked to an individual in a town of three thousand in Timbuktu (so to speak) is nonsense.

DK_Kithuni_713158d ago

I bought it a year ago (or so) for about $575 (40 GB version) so the price has dropped a good bit since then. No official pricecut, just competition.

BrianC62343158d ago

If you look at the prices on the Web for the Wii and 360 in Australia they really aren't any better. All three consoles cost more in Australia than the US. People shouldn't look at prices in each country and say they should pay what the US pays. Doesn't the UK pay a lot too? Everything costs more in Australia. I'm not sure why but that's how it is.

Bathyj3158d ago

You right about the population, but the cost of a PS3 in Sydney is the same as in Broome, so they must average that price out. Plus we are such a small market, just getting it to Australia let alone outback towns is probably more trouble than its worth. Obviously it is worth it or they wouldn't do it, but I'm glad they think of us at all.

tee_bag2423158d ago

We bent over and copp it sweet here in Australia. Paying $100-$120 for a new release. Even when the exchange rate is the same as US we still pay these ridiculous prices!

Highatus3158d ago

XboxOZ360 is completely correct.

I'll just add it cost me $50 Canadian to get a 4gig memory stick sent from Japan in shipping costs alone, then an additional $35 dollars for customs fees, and a memory stick weighs what? 2grams maybe? a Playstation and an Xbox360 weigh quite a bit more,and in turn will ultimately raise the cost. It all comes into play when making deliveries for anyone.

One more thing i'll add is -Inflation- of the respectable country in which said item(s) are being shipped which covers alot of what XboxOZ mentioned as well as other duties accompanied by the economy.

pixelsword3158d ago

that will make something more or less expensive.

The Lazy One3158d ago

australia has always caught the shaft HARD on video games (and almost all imports).

ajeben8093158d ago

Give that guy some bubbles. He's exactly right.

Immortal Kaim3158d ago

@ 1.7: Good call and exactly write, unfortunately these uninformative claims get more views.

Msg to the author, if you do some shopping around you will find PS3's on sale at many major retailers for $588 with a free game at the moment, using one retailer as a comparison is a p*ss poor effort on your behalf. Guess what, that seems pretty much in line with the US pricing you detailed... who EVER pays RRP?

cayal3158d ago

"holy sh1t...whats the min. wage in Australia?

I sure as hell wouldn't have as many games as I do now if I lived in Australia.....

If anybody needs to see a price drop on ps3s it over there "

You must realise that we 'earn' more than you.

A guy working in a $20,000 job in the USA would probably get $25,000 - $27,000 here.

Alvadr3158d ago

The guy writing the article got totally owned by Sony.

"When asked why Sony had never made a profit from the PS3 he refused to answer the question."

Why should he care if Sony isnt making a profit, whey should sony divulge confidential financial information on their products to some lame brain on a website. Its none of his business, he should shut up and just enjoy the games on offer.

What does it matter that Bluray players are included in home PCs? What difference does that make to anything and why should sony be challenged on it?

I hope he does get sued for his awful journalism.

vhero3158d ago

its the same in the EU for years we too have been ripped off rotten

phosphor1123158d ago

freight is huge. Want to know how much an overnight shipment costs for a 5lb item? Over 100 dollars. It's not cheap sending things over air and sea. 5 Day shipping for about 3 full canisters would easily cost over 15k USD. A full size canister is about 25 x 15 x 8 (w x l x h) all in feet.

Anyway, the author is such a troll. He knows nothing about what he's talking about. EVERYTHING in AU is more expensive. Even in Canada, when their dollar is about 1.25 USD. Everytime my relatives come over to the US to visit, they go shop crazy, because everything is cheaper here.

zag3158d ago (Edited 3158d ago )

Shipping costs are only done in USD never any other currency, even shipping between non US countries your shipping is converted to USD twice so you end up paying more than what you really should be.

The problem with this guy though JB-HIFI $688 isn't the chepest price you can get a PS3, sometimes other shops will go down to $650, with Sony's new 1 PS3 game marketing with a new console the pricing has been fixed at a lot of places so prices have gone back to the RRP.

You have ports at all the major cities not just Sydney or Melborne, it's actually cheaper to ship to peth or Brisbane then ship to your address than shipping to Sydney or Melborne direct then to your address, as you reduce some of the boat costs.

I shipped Warhammer MMO ltd from the US to Australia and it ended up only being $3 cheaper than the Australian price and that was when the AUD was higher than USD, so you won't get a PS3 for $100+AUD cheaper buying from the US it'd probably only work out to being $10 $20AUD cheaper if that probably higher now.

Mainly due to the fact that Sony will be paying for bulk shipping via boat which is the cheapest and a single person will be shipping the via air for 1 package, which is the dearest.

kwicksandz3158d ago

wow.

So many people defending the price gouging. I guess its okay because its not the US though.

Yes the ps3 is overpriced in Aus and no amount of sugar coating by sony execs will hide the fact. Gameplayer did an article not long ago showing you could by a 360 and blue ray player and still have change for the price of a ps3.

Take the PAL shafting tax, add another 15% and you have the Aus price.

thats_just_prime3158d ago

maybe the guy is really working for MS and jack up the price is his way of try to get people to buy a 360 instead

s droid3158d ago

it dont matter where the price gouging is mate, as long as it's sony, it doesn't matter what they do!

but could you imagine the reaction if this was microsoft??? lol these lot would be up in arms, and this thread would be a 1000degrees with 200+ comments.

still, what do you expect? this is after-all n4g! a web-site where the sony fanboys roam-free.

frostypants3158d ago

I have been to Australia multiple time in my life. EVERYTHING electronic costs more there, especially video games. Always has, even back in the NES days. It's just the way it is. Singling out Sony is entirely unreasonable.

Rapture3333158d ago

Is this even real? How did they arrange such a meeting anyway? With all the anti-PS3 trash on the internet do you really think a Sony exec is gonna call in one website saying how "pissed off" he is? Does this seem legit to any of you guys?

+ Show (28) more repliesLast reply 3158d ago
SublimingMass3158d ago (Edited 3158d ago )

being an aussie i say the price is slightly inflated but what can you do?
i think price are slowly getting there, i make reference to games prices new titles usually price RRP 99.95-119.95 but recently new games (POP, MS:PR, Dead space and others) retail for 79-89 at least at JB HIFI and Big W (the only places i buy games from). while specialty stores i.e EB, GAME etc still try to charge people 100+ for new games

cayal3158d ago

Yeah JB are pretty good with there prices.

I don't mind GAME, I got Far Cry 2 for $2 brand new.

They screw you with trade ins though.

jessupj3158d ago

That's why I only ever buy games on ebay. I got fallout 3 for $75 inc postage, where as if I went to a retail shop I would get ripped off for the full $110. And it's not like the US either where a new release will see a price drop after a few weeks. Here in Australia the price stays at $110 for at least a year. Half a year ago, Motor Storm, a launching title I might add, was still at $105.

Don't get ripped off people! Buy at ebay or import.

snp3158d ago (Edited 3158d ago )

Of course they're price gouging. And the price gouging was even worse last year when the dollar was near par and yet the system still sold for 75% more here ($400 versus $699), with some games as much as double ($60 versus $120).

They're actually lucky the Aus dollar's plummeted with this worldwide economy/stock market slide. They don't look quite as bad as they did look for quite a period of time there.

cayal3158d ago

Exchange rate has nothing to do with prices.

Alvadr3158d ago

Exchange rate has nothing to do with prices.

Yes it does - Hugely infact. Even more so at the moment.

cayal3158d ago (Edited 3158d ago )

No, it doesn't.

That's why the PS3 is the same price now as it was before recession. That's why it released at $1,000 AU despite the dollar being almost even.

DVDs are the same price now as they were 4 years ago.
PS3 and 360 games have actually increased in price from PS2/XBOX, despite being released around a time when the dollar was the same.

frostypants3158d ago

No, exchange rate has NOTHING to do with prices, at least not in this context. The American dollar has been all over the place the last couple of years. Did the cost of a PS3 or 360 go up when the US dollar tanked? No.

So why would you expect it to anywhere else? You can't apply macroeconomics at this level.

+ Show (2) more repliesLast reply 3158d ago
Gish3158d ago

WOOHOO a new aussie term to use over here in the US. Spits the dummy! I was getting a little sick of Crikey!

whatis3158d ago

My year five primary school teacher used to always call me a "dummy spitter" for not participating in mandatory school wide ballroom dancing classes.

Man I hated that b!tch and to this day I still hate it when people say "spit the dummy".

On topic: Australian dollar sucks right now but these prices aren't new. They've been ripping us off for years now, especially with games. What sucks about the economy is that now importing doesn't even help to save money anymore.

Gish3158d ago

Bubble for your answer and the hot chick avatar. Dummy spitter! (there have to be a hundred horrible sayings that Americans say since we ship our movies all across the world. Hit me back with some that you guys hate.)

kwicksandz3158d ago

Oh my god
You know what im saying
ya'll

Would be the top 3 offenders.

whatis3158d ago

I don't like the word "dude".

"guy" and "man" are alright but for some reason "dude" just irks me.

Gish3158d ago

Bloody hell, what else would you like us yanks to say?

+ Show (2) more repliesLast reply 3158d ago