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Was dropping the 20 GB PS3 a sound decision?

The writers at Ars technica flip a coin to see which writer gets which side to debate on the topic; Whether or not dropping the 20 GB PS3 was a good idea.

"Frank: This week, Sony announced that the 20GB model of the PlayStation 3 was going to be discontinued-a move that had been rumored for quite a while. I personally think that this was a good idea for Sony from a business perspective. The reality of the situation here is that Sony has been consistently losing money on the PS3 (and to a lesser extent in general) and by discontinuing the lesser-sold model, they're going to save themselves some much-needed cash..."

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arstechnica.com
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BlazeXXL3755d ago (Edited 3755d ago )

It saves Sony money, and together with the new Cell chip model (65 nm), you'll see a pricedrop real soon. So, for the people who decided to buy a PS3 20 gig version, just wait a bit longer, and you'll be able to buy a 60 gig model for the same price.

Nix:
You can expect Xbox 360 fans like TheMART in here, cause this news is kinda negative for the PS3. That's ofcourse their favourite cookie >__>.

nix3755d ago (Edited 3755d ago )

nice avatar! q:

recently i saw 'the GOODMart' too. i wonder if he's getting the hint.

and please guys.. don't take my bubble for saying this! plus i would be wondering why 360 fans will be here anyway... it's a PS3 section, right? q:

nix3755d ago

now MS should follow the suit and discontinue with 360Core. no point having a machine without a harddrive. gives programmers chance to atleast 'unload' the game on disk since it all comes compressed in a dvd. just saying a good thing that MS should do.. don't flame me! q:

calderra3755d ago

"We will not have 2 SKUs."
"Having 2 SKUs only confuses consumers."
"A company cannot sustain two seperate SKUs."
-Sony, back when 360 announced their plan.

Creating the two SKUs in the first place was stupid, and Sony had said so. At great length. Repeatedly.

Now they're having to deal with the consequences of... well.. their own statements on this issue... they said it wouldn't work, and it didn't.

BlazeXXL3755d ago

by making only 1 version of a console. As you can see now, the 20 gig version is failing. 1 out of the 10 PS3 sales are 20 gig models, and that's really nothing.

Ofcourse, choice is good, but with such a substantial differences, it's clear that people don't want to choose. They want a 60 gig model for 500 bucks :P.

kewlkat0073755d ago

just like I don't like Sony's strategy this time around, I think they made a basic SKU that was too dumbed down. It does not give the gamer, that was only going to spend $500+, any options of upgrading that console when they have the need or the cash to do so. What Sony promised leading up to their PS3 is not what gamers got from the 20 Gig PS3.

Unlike the Xbox 360's Core vs Premium which can bu upgraded when the funds are available.(So that option is still there and it's not so much a big deal.) with a stripped down SKU that does not allow the gamer to upgrade, gamers will take a step back and either wait till they can afford the PS3 premium,(Which brings us back to the slow adoption rate again)or go for a cheaper yet Solid alternative(yeah you guessed it).

This is where I think Sony funked up. Unless they can drop the price of the PS3 to $400, they are gonna loose mad Market-Share, but still doesn't mean they will not lead, remember the PS2 is still strong.

You can spin it which ever way to make it seem like it's not a big deal(because your PS3 is sitting right in front of you with a big grin), but those alienated customers that can't afford this thing will see a much better alternative this Holiday season when MS drops their prices(plus th 360s games coming out the second half of the year.

Nothing wrong with having 2 SKU's, but if your gonna come out with a beast of a system($700+ and expect gamers to jump on it right away, thats not going to happen. Sony had their chance with PSone to PStwo with no competition(Gamers would pay whatever). This time it's different.

BlazeXXL3755d ago

The cheaper version can be upgraded with a harddrive, but you can't add WiFi nor memorycardslots. However, I think Playstation 3 will sell well, even if the price does not drop this year, with all the cool features coming out, and great titles.

I think Home will have a great impact on Playstation 3 sales, even when it releases in October, people will still see Home as a big positive feature around christmas. The price won't drop to 400, it would just cost too much money for Sony. However, 500 really can be achieved when the 20 gig model production stops, and when the cell chip becomes smaller.

Monchichi0253755d ago

You guys are only looking at it from a gamers point of view. Yes it will help the hardcore gamers and those who can afford the PS3. But what is ultimately hurting the PS3 is the price point.
Now that the 20 gig model is gone the best thing we can look forward to is a price drop of the 60 gig model......to the same price that the 20 gig sold for!?!
Since even the 20 gig model was deemed to expensive by the general audience, what makes you think they will rush out to buy a 60 gig when it sells at the same price. To have had the option for a 20 gig model at a more affordable price would have helped Sony move units considerably.
Sony has once again shot themselves in the foot with their stupidity.

BlazeXXL3755d ago

ofcourse the 60 gig got a lot more stuff added than the 20 gig version. So 500 would be a step in the good direction. A lower price just isn't possible for Sony at this point.