$199 Playstation 3, New SKU Inbound?

It's a well known fact that the Playstation 3 costs a couple of bob more than it's competitors, the Xbox 360 and the Wii. With Activision head honcho, Bobby Kotick recently scolding Sony over their price point and performance, it seems everyone but Sony themselves thinks the PS3 is over priced.

Just this week, Target stores in Australia were clearing stock of the 40 gig model PS3. Going for just $199 AUD ($160 USD), the unadvertised sale was quickly picked up by the Whirlpool forums and anarchy ensued. Within a matter of hours, the majority of PS3's were absorbed by Target staff, with stragglers left to pick up the remaining stock.

What does this mean in business terms? Is this a premature sign that Sony are planning a new PS3 model, maybe making way for the Slim. Unlikely, given the size of the Australian gaming market. Something along these lines would be thought to first be trialed in the US, where it would make an impact.

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Hallucinate3376d ago

isnt target going out of business?

Hutch23553376d ago

Its actually one of the better performing companies. Not a chance. Watch the news once in a while.

ElementX3376d ago

Target is a local company here in Minneapolis, Mn. They're not going anywhere, I can assure you. Like most companies, they're doing a hiring freeze (I think), I know they laid off a few people and last I heard they're not hiring, but they're doing good sales-wise.

INehalemEXI3376d ago

$199 are you out of your mind?

Hallucinate3376d ago

who am i thinking of then? :/

krouse933376d ago

Circuit City Went out of Business maybe them?

ABizzel13376d ago

A $199 PS3 would spell doomsday for all 3 companies. Microsoft would get outsold almost instantly, and Nintendo would be next on the chopping block. However, Sony would end up with such a huge loss for selling the PS3 at such an outrageous price. So everyone would lose (except maybe Nintendo seeing how they've made more than enough off the Wii already). But I don't see a $200 PS3 ANY time soon. So everybody will continue to do well.

I see the PS3 receiving a price drop of no more than $100. I think they need to make a slim 80 and 160 GB system, and discontinue the current models so they can compete price wise (Plus it's never fair when early adopters buy stuff and get gimped so they need to start gimping late adopters). $299 is a great price for the 80GB. And the 160GB should drop down to $399.

SnuggleBandit3376d ago

160 U. S. D. did i read that right

i would buy like ten and turn a couple g's on the resale right there lol

menoyou3376d ago (Edited 3376d ago )

if Sony did this right now it would be a guaranteed victory. the PS3 is hot right now and a lot of people want it but dont have the money. if they did this, it would outsell the PS2. strip the PS3 as much as you need to Sony and DO IT.

i would buy one for each room in the house :D

Willio3376d ago

lol illegal, employees shouldnt really get first dips. It should always be customers first.

FantasyStar3376d ago (Edited 3376d ago )

While that sounds admirable. If I knew that my shop is getting a good deal. You bet your ass and your balls that I'll snatch it myself before any customers can get their hands on it. Haha!

BLuKhaos3376d ago

Phew I almost fainted there for a second.Like ABizzel1 said this would spell doomsday for gaming seeing as the PS3 is still costing Sony $40 at it's current price,that would kill Sony.

ZuperAmazingCooKie3376d ago

Sony makes a "PS3 Go" with a HUGE hard drive and no Blu-ray drive. But I doubt that will happen. PS3 games are too f***ing big. 25-50GB downloads? No friggin' way. But if Sony and publishers are willing to take that risk, then I could see the choice for some gamers to go completely digital. It wouldn't replace the disc playing PS3s, it would simply be another option, like the PSP Go.

A few months ago it was crazy to think about a PS3 without a Blu-ray drive. But now that PSP Go went digital, DSi is getting there, and Xbox 360 is going games on demand... Who knows?

Bnet3433376d ago

LMAO! $199 for PS3? That's the same as stealing the damn thing.

BWS19823376d ago

"it seems everyone but Sony themselves thinks the PS3 is over priced"

When was this worldwide poll conducted because I wasn't involved, and I'm sure many people were left out as well.

The price is high, but not only do you get what you pay for, but you also don't have an azzload of accessories to buy. It was cheaper than getting a 360 for me when I did the math, and that was at it's $500 point for the MGS4 bundle. 360's a good system and I still want one, but I just prioritized a few factors, cost and reliability being 2 of them.

I agree lower prices would sell more, that's simple logic, but I would fear for the aftermath on Sony's part financially, that's a whole lot of digits in the red above what they are already showing with it at $400...unless they somehow redesign or cut costs, they'd essentially be giving away shares of their company just to gain such ground. The price will go down, but plummeting like that would be shortsighted. You can't recoup the revenue in software fast enough after such an action on hardware cuts without a major redesign.

Syronicus3376d ago

Well, I disagree witht he author of this article from the word go. No, I do not think the PS3 is over priced, but yes, I would like to see the price drop. I allready have one but for those that do not, it would be nice to see them score a PS3 for less.

Does this price drop at Target mean there is a 199.00 sku coming? No, it means that Target was liquidating the older models in preperation for a new one or for more of the 80/160 gig models.

edgeofblade3376d ago (Edited 3376d ago )

Sony painted themselves into this corner.

The combination of Blu-ray games and games that need installation has left PS3 in a feature-gridlock of sorts, unable to drop the Blu-ray drive or the hard drive.

All Sony can really do is cut the wireless networking out of the package, but that wouldn't do $100 worth of difference. They left themselves no flexibility, assuming everyone thinks "power = games".

Which is clearly does not.

@menoyou: ummm... no... a price drop would be disastrous for Sony. They can't recoup the cost of building the PS3 as it stands. To price drop would put them further in the hole. And it would be a huge gamble to assume game sales will make up that gulf.

randomwiz3376d ago

who said Sony is losing money with ps3's today?

Sony started to break even in January 08. Who know how much money they make today, since they use newer 45nm chips.

i think... when sony fully implements the 45nm cell, they will make a nice profit for a while, and then announce a price drop at tgs.

Syronicus3376d ago

You need to ignore edgeofblade, he is just one of those fanboys that can't say anything good about Sony. He is one of the few around here that is known for making mountains out of infinitesimal specs of bad news.

Everybody knows that Sony is doing as well as they need to be and in future months they will be doing even better. Electronics get cheaper as the years go by and in a small amount of time their console will be cheaper and selling more. It's just a fact of the gaming world.

As for this article, it is obvious that Target is just getting rid of their old 40 gig stock of PS3's.

AAACE53376d ago

Target gets way too much business for them to close! They are actually opening more stores.

If the Ps3 was $199, I think alot of people (including myself) couldn't resist, and would have to buy one! Hell, current owners would probably buy another one as well, just to have one on standby. But if it was to take a big price drop, the most realistic one would be to $299.

orange-skittle3376d ago (Edited 3376d ago )

Are you an idiot?! Target and Walmart are practically recession proof. Still opening Super Stores across the country along w/ GameStops. Walmart is creating 22,000 more jobs by years end. You must be referring to Kmart. rad the news more often and you won't look like an idiot when you speak

@ Randomwiz

You moron, Sony loses money on the $500 PS3's, so you know they will lose money on $199.99 SKU's. How do you have a quarterly report and the Wall Street Journal and CNN Money have a different one? Why dont you display a link to your stupid azz claims of Sony not losing money on PS3 since January. Fools are always pulling fake statements and facts out their azz

@ BWS1982

A $500 PS3 is the same price as a 360 w/ the same features you idiot. So you must've failed math if that's what you call arithmetic.
Console....$200, 120GB HDD...$150, WIFI...$100=$450, so what's your point? Please don't mention a blu-ray player or PSN because you guys should be distancing yourself from that by now. PSN is worth every cent you pay for it and it's a game console not a player. BTW, that 40G PS3 is not a true 40G. The system installs every game and saves take tons of KB/MB's, by years dont have enough space to d/l a demo. You have to swap your HDD out install a laptop HDD in your PS3 w/ more Gigs. The systems saves EVERYTHING and you have to go to the DATA UTILITY to delete unwanted sh*t because you're losing precious space for no reason. The HAZE install is 4700KB by itself(are you kidding me)

Tito Jackson3376d ago (Edited 3376d ago )

Hahahaah. 160$ for a PS3?
It would mean the End for Nintendo, MS AND LAST BUT NOT LEAST----SONY.
They've already lost enough money on the console as it is, and they are continuing to lose money now(even if it has been reduced to about 50 bucks per console).

This article is craptastic. Sony is prolly gonna scrap some features, and knock 100 bucks off the price. But selling it for 160$? No.

Anon19743376d ago (Edited 3376d ago )

@ orange-skittle. Whether or not Sony has broke even on the PS3 hardware is unknown as they don't report this information on their quarterly reports (for that matter, Microsoft making money off the 360 hardware is just speculation).

Sony commented on the matter some time ago when VP Nobuyuki Oneda commented that the PS3 hardware should be break even by March of 2008. Of course the global recession happened and the price appreciation of the yen relative to the US dollar knocked things back. David Reeves then stated that this year the PS3 would be break even.

Since then, BusinessWeek has done a report and, by their best guess the $400 PS3 sku costs about $448 to make. Mind you, that's just their assessment. The public isn't exactly privy to the exact prices Sony is paying for components and manufacteuring.

As for the "Please don't mention a blu-ray player or PSN because you guys should be distancing yourself from that by now. PSN is worth every cent you pay for it and it's a game console not a player," comment...that's just ignorant. Anyone with half a brain knows the Blu-Ray player is one of the PS3's main features, just like DVD was to the PS2. Hell, I bought my PS3 because it was more than just another games console. Obviously consumers get it because they're sure buying it faster than they adopted the 360. In 2 1/2 years the PS3 has sold 23 million consoles vs the 19 million the 360 did in the first 2 1/2 years. Blu-ray is a huge feather in their cap, as is the PSN which is easily comparable to XBL which will add another $200-$250 to the price of your 360 over it's lifespan. It amazes me that anyone with even a cursory knowledge of the game industry could confuse what a big plus both these features are to the PS3.

Guitardr853376d ago

IN defense of hallucinate...Target WAS doing atrociously in the beginning of '09 as Wal-Mart was doing way better than them. This turned around as Wal-Mart has actually seen a 7-12% decrease while Target is going up. Still I think we can all agree that they are not doing great...especially to those who owned Target stock at above $60 a share, lol!

-chaz-3376d ago

Oneda announced in May that the PS3 is still sold at a $40 loss:

poopface13376d ago

Im not in a rush to get a ps3, but if it was 200 Id probably go get one today. Thats great considering its a bluray player too.

I really dont see them skiping the 299 price and going to 200. Especially when the psp go is what, 250. I cant see sony selling a ps3 for less than the pspgo. Id like it, but I dont think we will see it yet.

BWS19823376d ago (Edited 3376d ago )

skittle, to be so pretentious and naive, no wonder you lack bubbles, troll:

PS3: $500...came with everything I wanted last summer AND a game I wanted...HDMI cable was $20 extra

360 (get a calculator if you have to): I wanted the Elite because it came with the most for my needs (separate 360 HD's at time for 120 GB were $180) and also had the HDMI, so, $450 (price at time), plus $100 for WiFi, plus ~$50 for Live (just to start!), plus a game $__ (that I wanted), and on top of that, they were still Falcon models. On top of that again, I didn't have any way to charge the controller, so a plug and play would be needed, or batteries would be. I won't even add in the game or plug and play/batteries just to be fair.......

$520 vs. appx. $600...taxes not counted yet, and even at about $600, I'd have had no game I wanted for 360 yet or way to charge the controller. Too many digits for you?

Add it up, it was _*about $80 more*_ for a 360 for all that (depending on the game I choose it would go up even more). And hell yes I'm talking about the online play, why should that NOT be counted, why wouldn't I play online this gen? How asinine of you. I would have had to start up Live Gold, and that would have just grown in price each year, making it cost even more than PSN annually. Being fair it was STILL MORE for a 360.

Finally the blu-ray, BC with PS2/PS1 games, reliability, and ability to put in my OWN hard-drive just sealed the deal as bonuses. Talk about being bad at math (and logic). The difference was about $80, MORE EXPENSIVE even without a game of choice.

I work at a bank and know rudimentary addition, you tool. People like you make this hobby (and site) look bad.

orange-skittle3376d ago (Edited 3376d ago )


Thank you for owning Darkside66

@ DarkSide66

I own a PS3 and I also own 3 Blu-Ray movies. I could care less about watching Blu Ray movies on my PS3. Seems like that is the primary use of the PS3 these days. Unlike you(cheapskate), I didn't buy a PS2 to use as a second rate DVD player. I bought it to play games. The DVD player was atrocious and lacked many of the features that stand alones carried. PSN has not made any strides in progression to compare to XBL which charges $50 a year. How does a company that ownes their titles still not offer movies at a subscription base. MS has to pay royalties and partner up w/ Netflix to bring the multimedia experience closer to fruition while SONY still does nothing. They still rent THEIR own movies to users. Now with the integration of Facebook and Twitter and posibble HULU, PSN has nothing to offer and no legs to stand on. How long are you people going to cry "BUT IT'S STILL FREE!"

@ bws1982

Everything you named was frivelous. You're adding on things that are irrelevant. Paying for XBL is not a requirement because there are millions of non internet users out there much less WiFi households. PS3 didn't even come with component cables no plug and play charger, so what are you talking about. Even if you use the elite as the sku to compare it to it still comes out the same. You idiot, did you not know that the PS3 IS NOT BC W/ PS2 GAMES!!!!!!!!!!! YOU ARE SUCH AN IDIOT

BWS19823376d ago (Edited 3376d ago )

talks about stripping down every little feature to "It's just for games, but, but, but, it's just for games" with consoles, you seem to like to beef up LIVE's features when talking about "online services", don't you?

I can go online and play with no issues, surf the web, and shop for many items from a store, all at no cost. It may not have all the bells and whistles of LIVE, but it does what I need it to for no money and won't cost hundreds extra over the next few years, where's the problem? Where is the "deal sealed" with 360? PSN does what it set out to do, and HAS made strides since '06. It's not on par with LIVE, but does the cost warrant the difference? That's for each individual to decide....See my post above for further logic. Why am I even wasting time, you don't seem to get it?

Now I'm totally confused. Suddenly you know more about me than I do. Irrelevant? Not required to play online? No PS2 BC? I have WiFi in this house, no other choice with my room, I WANT TO PLAY GAMES simple does it have to be? MY PS3 CAME WITH A USB CHARGER TO CHARGE MY DUAL SHOCK 3. MY PS3 HAS SOFTWARE BC WITH PS2 GAMES, nearly all games play fine. It was an MGS4 bundle bought last summer. Where are you getting your facts? I listed what I wanted to get out of MY CONSOLE to be. You want me to buy a stripped down version of a console, no online play, just to ensure I have a "bargain"?

Wow. How about, no, Skittle.

JHUX3376d ago

Orange skittle has to be one of the dumber fanboys on this site.... Why talk like you know "facts" when you have absolutely no idea what your talking about. Look at when he showed when he bought his console when comparing prices... the ps3 he has does have BC with ps1 and ps2 games, not only that it comes with a usb cord to CHARGE your controller, and component cables to plug into the tv. The only thing it doesn't come with is an HDMI cable which you are forced to buy (which he included in the price). For you to say paying for online is irrelevant is laughable this gen, since that is one of the main necessities for games these days. Then you act like people don't use the built in Wifi? Stop trying to convince yourself that you made the "right" purchase, your just a dumb fanboy whose feelings get hurt when people say something negative on his console.

BWS19823376d ago

must have modded my PS3 last year and repackaged it brilliantly, because God of War 1 along with a dozen other games I've tried have played flawlessly. Maybe it's some sort of voodoo.

It's not 100% BC (I search Sony's site for issues), but then again neither is the 360's.

For some people, the 360 may end up being cheaper, I did the math for _ME_, because oddly enough, that's who mattered.

I never said 360 was a bad system, and I still plan on getting one, but I made an astute assessment on which to buy first, and don't regret it. But I guess I'm still the idiot.

TapiocaMilkTea3376d ago

haha, target going out of business.....
Even if so, I don't think the PS3 would be the only thing on sale.
You can just do a quick check on their stock in yahoo/google finance.

plumpness3375d ago

Yeah i hold the position of abbused grunt at target helensvale (which is in Australia) And we are not going out of business any time soon

Also i have not heard of this clearence and im extremeley pissed if its true cause i would have promptly bought one and resold it (i already own a 60G)

plumpness3375d ago (Edited 3375d ago )

The majority of you are thinking wrong

Target Australia has little to do with Target in america so dont even bother talking about walmart and whatnot

Coles group in Australia own the rights to the target brand in Australia (im pretty sure thats how it works) and they are in turn owned by Westfarmers (another australian company) so the performance of companies in the US has nothing to do with this story so we should actually realise this before you start linking American performance to Australian target which is doing quite well (kmart is also owned the same way here)

And yes you do have to pay 10c for a bag

+ Show (30) more repliesLast reply 3375d ago
Vonsutton3376d ago

Not in Australia, don't know about the US

Dark-vash3376d ago

But @ 399E ?? No way... Thats 558.56 U.S. dollars

Anyway... i'll be waiting for FFXIIIVs and Tales of Vesperia "complete"

Immortal Kaim3376d ago

I managed to snag one of these PS3's WOOT!!!!

I finally have a PS3, and for the price of a DS Lite...How good is that. ;)

SaberEdge3376d ago

Good job. It is a nice console and I am sure you will enjoy it.

Rob0g0rilla3376d ago (Edited 3376d ago )

I paid $600 for my 60GB PS3 and $400 for my 20GB 360(both at launch) >_<

This is a huge steal. Any real gamer would agree. Seriously, that's cheaper then a Wii.

Superduper093376d ago

Damn I should go my local Target now :).

waltercross3376d ago

So is this true? is it really $160 or $199?

TheHater3376d ago

well it is, but good luck find them. Almost all of them are sold out already.

JonnyBigBoss3376d ago

My friend in Victoria, AU is dying for one. Freaking poor people man. He can't buy expensive stuff like most people.

JHUX3376d ago

these days "most people" is more like "few people" with how the economy is.

+ Show (4) more repliesLast reply 3376d ago
All Time Greatness3376d ago

If PS3 was 199$, I would def get one. But this is fake. XD

TheBand1t3376d ago

Nice to know immortal kaim picked up an imaginary 199 AUS dollar PS3.

Venomish3376d ago

i would get another one and just put it as decore

All Time Greatness3376d ago

I thought it meant they were going to be 199$ from now on or something. Read it wrong.

Immortal Kaim3376d ago

I can assure you guys this is real, though according to the whirlpool forums they are all sold out now. Seriously I got the bargain of the century, considering they go for $600-700 in Aus.

I'm going to go buy Uncharted right now, sweet. :)

TheBand1t3376d ago

Nope, just clearing out old stocks of 40 gigs.

krouse933376d ago

This is real one of the posters posted his receipt

JHUX3376d ago

Wait I thought it was target that was doing the deal? Kmart is to?

+ Show (4) more repliesLast reply 3376d ago
Vonsutton3376d ago

I wish I had the chance, I would of snapped up as many as I could and made a profit! Lol, you can't beat that price, a Blu-Ray player for every room maybe?