Why the PS3 needs a Price Cut and How they Should do it

Let's face it. Sony has screwed up over the last two years. Their marketing campaigns have been almost non-existent since the PS3's launch in November of 2006, and the sales have taken a hit because of it. As a result of this vacation the Sony marketing department has taken the general perception of the system is the one that has been created by Microsoft. "Too expensive", "it has no games", "there's no one using the PlayStation Network." I'm sure you've heard them all before. They're all "reasons" why the PS3 is in last place in the "console war." Well, one of them is true, and it's fairly obvious which one it is.

[DavidMacDougall]

They know what their doing they've been winning console wars before your site was around

@resistance100 - Very true and it will be coming but what is the point of this article, Sony ain't listening to them lol

[resistance100]

True, however there will always be people who want a price cut.

[fishd]

ah,sales,sales,sales...one day we learn to be concerned about games not sales...one day...

[resistance100]

@fishd

And on that day, Nintendo will give the Hardcore want they want, Microsoft will make Live free and Sony will announce a FFVII remake!

[Lifendz]

Bubbles up. That sounds like a line out of a Sony diss track directed at all its haters.

[ZuperAmazingCooKie]

What happened in Japan, Europe and the rest of the world? Just curious. If the monthly difference is less than 50,000, then Sony can still hold a bit longer. If the difference is more than the difference in America, then the PS3 could be in trouble.

I hope Sony can lower its production costs soon enough.

[chaosatom]

it will need another one, and these guys would publish this same article again and again.

[Seraphim]

"Their marketing campaigns have been almost non-existent since the PS3's launch in November of 2006, and the sales have taken a hit because of it."

that right there discredits any attempt they were trying to make. At least it does in my book. Price, price, price, price has a majority to do with the lackluster sales. Just like how the PSP crawled out the gate and continued to do so for years. It was more than the average consumer was willing to pay. Advertising has very little if anything to do with it. Seriously, any potential consumer knows there's a PS3 out there waiting to be bought...

[Zeus Lee]

1.Fire some more people.

2.Cut the price by $100.

3.Profit.

[evilmonkey501]

yeah...right. ;)

[Zeus Lee]

Fixed

[ape007]

it's really shame that ps3's bluray and tech cost sony a lot while devs develop their games on 360 first

did you ever wondered what the hell all this empty space doing on gta 4 bluray?

assasin's creed?

etc... and worse yet,bad ports

[Max Power]

why don't we see more of the "why/how Sony needs to cut the price of the ps3". I mean there are only 10 or so in the past couple of days, no where near the number that will make it useful.

[ShAkKa]

Before - why Sony needs a price cut for the ps3 to survive
Then - why a price cut wont save the Ps3
Now - Why sony needs a price cut
(this is in reference to the articles posted before yesterday,the one yesterday and now this one)

[Aclay]

At this point in time, it's really not hard for people to figure out the PS3 needs a price cut. But in February's NPD alone, the PS3 sold 270K+ and I don't care what anyone says, that is still good numbers considering the PS3 is still $399 minimum, and has been for over a year.

Personally I think, NO other console BUT a Playstation console would have been able to sell at this rate while still being at this price... any other console that would have still been priced at $399 right now for this long would have either went the way of the Dreamcast or it wouldn't be selling anywhere near as much as the PS3 is selling now.

"What Sony needs to do is drop the price of both models by $100 and forget about making a profit on the console. If they keep the price at where it is now they’re not going to sell enough systems."

^^^ That's just ridicoulous, and that's not the right thing for Sony to do as a company because other sectors of Sony's business has been hit hard by the economy, and doing that would only sink the Playstation division faster.

And what is "not selling enough systems"? How much is "enough"? Enough to catch up to the 360 this generation? Regardless if the PS3 sells "enough" or not, it's still going to be selling even at $399. Sony has said that profitability remains a priority to them right now over market share, and they'll cut the price when they think it's ready.

[resistance100]

Spot on

[Droid Control]

Sony can't cut the PS3 unless they want to lose money on each console they sell. They've already said they don't want to lose money, they want to make it. And even if they did price cut, M$ would price cut again, and sony's price cut would get them no where. Better to keep the console at the price it is. M$ would rather give the 360 away than let sony catch them up in console sales, market penetration, and brand awareness.... M$ have come a long way since 2001 with the original Xbox, its a shame they still can't make decent hardware though... My 120GB harddrive broke today - lost everything. I F**KING hate M$ right now. F**KING S**TY hardrives, disc trays, and fans arn't covered by the F**KING waranty...

[labaronx]

I wont bash any console since I perfer to own them all but i sympathize with you for losing all that saved data...

[evilmonkey501]

Me too. Funny how all the things that break on my box aren't covered in my warranty either. When I replaced the drive in my ps3 I forgot to back up and had the same crappy 1/2 week re-downloading everything.

[KingKionic]

how did you break your harddrive lols you joking...or lieing.

[cmrbe]

Price cut will only cut into Sony's profits right now. Lets look at Feb NDP numbers from both MS and Sony.

Sony sold 276K PS3 at 399 each which come to about $110,124000 revenue.

For MS. Lets say that the 391k x360 is divided evenly between each SKU although i think most x360 that are selling is the Arcade.

Ok. 130 Arcade at 199 = $25,870000, 130 Pro at 299 = $38,870000, 130 Elite at $399 = 51,870000 total revenue = $116,610000

This is a difference of just 7 million in revenue but MS had to produce and sell 120k more x360 in order to get the same revenue as Sony did with only 276k PS3.

Between the two its obvious that Sony will be more profitiable and thats what they are doing and why there hasen't been a price cut yet.

[labaronx]

Microsoft also makes a ton of money on Xbox Live..... so again the figures are somewhat hazey. if you look at NPD sales for Febuary and The Media crate and Famitsu hardware sales for your two biggest gaming market the 360 and PS3 are infact dead even with the 360 having a slight edge thanks to europe. Sony seems find with third place... and they dont seem to care as much as some people on this site as much as owners of any current gen system seems to care...while there will be a price cut, i think it'll be in the fall or directly after E3.. $299 80 gb w/ bluray movie....

[KingKionic]

your forgeting the production cost of the consoles...

[Unicron]

3 articles in a row eh? But but but but, teh ps3 fanboyz run dis site I thought?

God I hate NPD days.

[sajj316]

Its amazing that EVERY NPD release yields the same reaction and articles. As intelligent people above me wrote, profitability over market share is number one priority. That's not an excuse, that's just reality if you run a business. If they do drop the price, its because the cost of producing a PS3 is now much less. Its been at 399 for more than a year so they most definitely made strides in cost reduction.

[resistance100]

I think this article was written before NPD data was released

[evilmonkey501]

PlayStation 3 and I would've paid $1,000 for it. But then again, I own all systems and have a good job. Keep focusing on good games Sony. That's what I need from you. Games. Keep up the good work.

[resistance100]

As long as all the companies keep on with the great games, i'm not fussed about sales

[Socomer 1979]

the goal is 10 million consoles a year. this is the second month of this year and has put together about a million right now worldwide. in america alone what is it like 600,000? all your competitor is doing is barely hangin on to a lead and as much as the competitor is boasting about thier drastic price cut it hasnt really helped much at all. i mean really, if they can put the big brains together to figure out that nintendo wii sales are on the decline because of a bad weekend then why is it difficult to understand that microsoft is being crushed between 2 giants? the point is, microsooft shoudnt be equal to ps3 in sales and ps3 shouldnt be equal to 360 because of its graphical and multi media power. the big point is that ps3 outs sells 360 slighlty every year world wide.

[OSIRUSSS]

I hope to god Sony doesn't cut the Price. I love talking Sh!t to people that want one but can't afford it.