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Why a Playstation 3 Price Drop Will Have Little Impact

Many gamers were disappointed that Sony didn't drop the price of the Playstation 3 today. However, even if Sony were to slash the price of their high-definition video game system some time soon, it will have little impact.

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thebudgetgamer3549d ago (Edited 3549d ago )

its allays been more expensive but that hasn't stopped 21 or so million people from buying it. the fact that the ps3 has sold 21 mill in the face of the juggernaut wii and the more afordable 360 is a testament to how well the ps3 is doing. lets think of other gens with three consoles, when one is way more expensive how did they do? im pretty sure they didn't sell anything near what the ps3 is doing now.
sony said from the beginning that they were giving up market share for profits witch they are making despite what some people would have you believe, and you remember what happened last time ps3 had a price cut Microsoft had a fire sale to keep pace with the ps3.

:)

Genesis53549d ago (Edited 3549d ago )

Sure you just keep telling yourself that and maybe you will be able to sleep tonight. What a dummy the author of this article is.

I mean really they have a whack of high end exclusives coming in 2009 and this guy believes nobody wants to play them.

BulletToothtony3549d ago

that's about it...

I don't know why these websites think it's "cool" to STILL hate on the ps3... give it up already!

dcbronco3549d ago

While Sony has given up a ton of market share, they have also lost a ton of money with the PS3. Going from 68% of the market to 20% of the market is not doing well by any stretch. The PS3 is losing money on every console sold.

On topic, the author is an idiot. If the PS3 drops to $299, it will sell extremely well. I'm not sure it will sell enough to make it catch the 360 in the next two years, but it will start to outsell the 360. The only problem is will Sony lose so much money that it ruins the company. It would basically be a relaunch. Selling at a loss and hope to make it back through software sales. The key then would be to get the cost of the system down to stop bleeding money as soon as possible.

The other problem would be Microsoft bringing a new console out and turning the PS3 into the PS2 and killing off the sales as people migrate to the next generation or forcing Sony to upgrade before they want to. Microsoft brings out a more powerful Xbox for $399 or even $299, and drops the price of the 360 to $99 for an Arcade(in two years) and Sony is stuck again. If they stick to their guns and can't do a price cut this year, then Sony won't be able to get down to sub-two hundred mark in two years. They would be stuck with a $200-250 console while Microsoft has a new far more powerful Xbox for $100-150 more. Not a good position.

GWAVE3549d ago

The numbers speak for themselves.

PS3 outsold the 360 in its first year even with "no GAMEZ!" and a much higher price.

PS3 sold the same as the 360 the next year even at double the price (well, it was outselling it when it was $100 more, but when the 360 dropped to $200 it evened the field).

So, if the PS3 sells this much at the CURRENT price, it's only logical for it to sell more at a lower price. Am I missing something?

thebudgetgamer3549d ago

the thing is im not tied to sony if they stoped making consoles tommorow i would move on to my next console

:)

ChozenWoan3549d ago

Look at what's been happening in Japan the last couple of weeks. Gamers learned that they could get a great price cut just by importing the PS3 from Korea and they cleaned em out. If/when the PS3 drops down to $299, they will become extremely hard to find much like the Wii at launch. At $299, most people can afford to pay for a PS3 out of just one pay check so they will be more inclined to get one.

To be honest, at $299, I'll be tempted to get two of them. Of course I'm an anomaly to the market, being such a "TECH HEAD" and all. You see, I'm gonna try my hand at some of that realtime raytracing I've seen on Youtube... just to be able to say I've done it. ;P

SL1M DADDY3549d ago

And after reading that I have now found the face of ignorance. Sorry, but history alone proves this guy wrong. It will have a significant impact, mark my words. If anybody knows history, they know it repeats itself. And no, that is not my verbiage.

+ Show (4) more repliesLast reply 3549d ago
ThatCanadianGuy3549d ago

Right.Because some guy ranting in a blog know's more about price cut tactics and supply & demand than a multi-billion dollar corparation.

Gotcha.

commodore643549d ago

well apparently, sony needs some work in that regard.

After all they are in third place and going backwards, whilst losing $50 per unit of hardware...

Couldn't be too hard to do better than that, right?

Obama3549d ago

the 360 wouldn't be in second place if it isn't out a year earlier with no competition. I just hate how the bots didn't take the difference of time frame into consideration when comparing sales.

commodore643549d ago (Edited 3549d ago )

yeah, the 360 had a year's headstart just like the ps2.

But it was fair back then, right?

:)

frayer3549d ago (Edited 3549d ago )

LAWL

Trust me. The PlayStation 3 is in more demand than an xbox 360. At a $299.99 price point the value is unmatched. I'm not talking a $399.99 vs $199.99 value- I'm talking $299.99 vs $199.99 blu-ray, wi-fi, hard drive, free online, block buster exclusives- value. The low end arcade doesn't even have a hard drive!! And If $299.99 is still expensive then wtf is the wii?

Microsoft also assed themselves out with all the hardware failure. The PS3 is the most reliable and robust gaming console out. What about what matters? The games!! Microsoft already released all of their big hitters early on. Sony hasn't. GT5, God of War III, and Final Fantasy XIII (Japan) are still not out, and these are 2010 titles most likely. These are the real console pushers. Microsoft still hasn't even announced an 09 lineup, let alone anything beyond that!!

Japan- what if Sony cuts the price there + Final Fantasy XIII bundle?
Europe- what if Sony cuts the price there + GT5 bundle?
North America- what if Sony cuts the price there + GOW III bundle?

360_Rules3549d ago

Is that the reason the 360 is outselling the PS3 every month. Hahahhahahaha XBL is so much better then PSN and also the PS3 hardware fails too like the Yellow light. The 360 has a lot better hardware now and more games are going to be announced at E3. So enjoy being in #3 place you droids! Hahahahhahahahahaaahaa

BigMassacre3549d ago (Edited 3549d ago )

Couldn't have said it better.

Edit: @360_Rules

Only reason why the 360 outsells the PS3 is because of that one price cut that lowered them to $200. Before that happened, MS were sweating rivers.

Aclay3549d ago

Those were some pretty weak reasons to me.

"Still Expensive"
I can't believe the person that wrote this thinks $299 for a PS3 would still be expensive...If the PS3 was dropped to $299, it wouldn't be Expensive... I mean, it would be JUST $50 bucks more than the Wii.

"Recession"
Yes, the economic outlook isn't that bright, but even in February NPD, the PS3 sold 270K+ when it's cheapest price was still $399... if the PS3 sold that much in February at that price, I don't see why it couldn't have sold at least another 100K+ if it was $299.

"Playstation 2 Backwards Compatibility"
Most people that are potential PS3 buyers already have a PS2, and I don't see it negatively impacting PS3 sales if the PS3 gets a $100 price cut.

If anyone thinks a full $100 dollar PS3 price cut wouldn't change a thing, they are sadly mistaken, in denial, or both. The last time the PS3 got a price cut, it started outselling the 360 in the U.S. and Worldwide (while still being more expensive) for quite a while, and a full $100 PS3 price cut could bring back that trend.

crck3549d ago

Yep clowns are just looking for hits. No BC? There is a very small pct of people who care(they are loud and whine a lot but still a very small pct). Everyone seems to have forgotten how pitiful ps3 sales had been before the first $100 price cut in 2k7. It was barely outselling the gameboy advance month to month. Since that cut the sales have been elevated and pretty much stayed there until the recession hit. Even then sales are way above pre-first price cut sales numbers. A second price cut should do the same.

Monkey5213549d ago

With the current price point, the PS3 has been selling extremely well. All the points in this article are basically void. Even though we are in a recession, that doesn't stop people when it comes to entertainment. The industry has actually been growing.

KGB3549d ago (Edited 3549d ago )

Normally supply and demand determine the price point for a product. (Wii is still $250 and there has been talk of an increase) In this case we have an artificially high PS3 price point for the pursuit of profits. The question is would increasing the user base ultimately be more profitable or would maintaining better margins?

Clearly Sony has the resources to research and make the proper decision. Despite all of this, stating that the PS3 would not sell significantly more at a lower price point is inexcusably retarded. Nobody says you need an economics PHD to write an article but if you are going to talk price and sales... get a clue.

KGB out

UltimateIdiot9113549d ago

I'll give this site a benefit of the doubt, his clock must be 2 hours ahead.

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