Now Tretton shoots down price-cut chat

SCEA president joins Howard Stringer in dampening the PS3 price cut fire

It seems as if the dismissive power of Sony CEO Sir Howard Stringer is not quite enough to convince the games industry that the platform holder will not be cutting the price of PS3 any time soon – so SCEA president Jack Tretton has joined in too.

[shocky16]

So of course they wouldn't want people to know. A customer might want a PS3 now but if they heard of a price cut then they would hold off which means Sony could lose out on potential sales of the PS3 at the current price point.

[Dead_Cell]

Must despise people like you.

[Isis06]

I could see that happening...
but I have been seeing articles about PS3 prize cut since the last prize cut.
I think this rumor is really starting to hurt their sales.

[SRU9600]

I'm waiting to see what happens if PS3 sales remain lackluster even AFTER a price cut.

Everyone always acts like the only thing stopping people from purchasing a PS3 is the high price tag, but maybe people simply don't want one.

A lot of people might be in for a huge surprise.

[leila01]

I think the PS3 slim will be their "price cut". They'll just bundle the phat PS3s (PS3 + 2 games and maybe 2 controllers) till they disappear.

I really don't see them reducing the price of the phat PS3s when they're still not profitable, it'll just hurt them more.

In my opinion the PS3 slim replace the Phats for the same price till sales slow down, then we'll see a price drop, that would be a smarter business move.

[silvacrest]

You maybe right but i doubt it

anybody who does a bit of research on the PS3's specs will know you get the best bang for your buck, also consider how well known the playstation brand is

also consider how well the 360 is selling even with the failure rate tarnishing its rep, xbox live and it being cheap is keeping it ahead in my opinion of course

so, whats holding the PS3 back from selling like hot cakes? the PSN still needs cross game chat then i think it can stand on par with live
and the price of course

also remember that the PS3 was out selling the 360 until the price cut came into play, theres no reason why the same cant happen for the PS3

[Toenado]

I completely agree. If both consoles were evenly priced it would be hard to not pick the Ps3. As you said, before the price cut the Ps3 was outselling the 360 month to month. And with a price cut anyone who hasn't purchased a blu ray player or ps3 would be getting a great deal.
Anyone who thinks a price cut wont have a good effect on ps3 sales is crazy.

[leila01]

wrong post

[Lifendz]

if either Tretton or Stringer even hinted at a PS3 price-cut it would freeze sales or, at the least, cause sales to drop substantially. It's bad enough that almost all of the big sites sound like Sony has to cut the PS3 price and now. Some are even saying that a price drop is guarenteed this fall. Unless Sony wants to sell no systems between now and whenever they do drop the price, they have to take this position.

[talltony]

They will drop the price when they are good and ready to do so. And even if they planned it this holday do you really think they would tell you now?

[shingo]

How did this story get approved? It's already on N4G but with a different title :/

[RememberThe357]

They are still loosing money on every PS3 sold. The company can't afford to take those losses right now.

“We could've come out with a PlayStation 2.5 for $299 or less, and in the first two or three years it would sell extremely well. But there would be a point where people would be going, ‘I am not really seeing the incremental leap’.

This makes me question even if their making a Slim.

[Double Toasted]

People like you, I think, are hurting the PS3 sales, albeit no one has seemingly pointed this out to you until now.

[Thugbot187]

Many of us who for have been saying there isn't going to be a price cut because they are already loosing money on the sell of every PS3 and in addtion the PS3 is selling just fine. Got Disagree with countless times... Is this proof enough. PS3 is selling fine get over it.

[onanie]

It is not surprising that certain camps of the gaming community would want to propagate the "belief" that Sony will cut PS3's price soon.

Apart from the relentless insistence from certain segments of the media, has there been any solid evidence that it will happen soon?

What fuels these rumours then? I'm sure some have genuine interest in seeing a cheaper PS3, but more likely, the intent proves to be a malicious one.

[Willio]

Sony should have a price cut once MS attempts anything. Doing it relativly soon is like revealing your cards to your opponent. By not dropping the price, MS is now in the bind to innovate. Thus, they bought out the company to "make" Natal.

[GameGambits]

When the holiday season hits and the games are out or about to be released we'll see which console increases their sales by a vast amount. I think even without a price cut the PS3 could out sell the 360 this year Holiday time. The 360's line up is weak this year, and the PS3's isn't.

inFAMOUS
Killzone 2
MAG
Uncharted 2
Ratchet and Clank

That's 5 big flagship titles this year from PS3.

360:
Splinter Cell
Halo 3: ODST

Multiplatforms are huge on both consoles, but for people who don't already own a PS3 they'll not only see those 5 games, but the big library of games already for it and ONLY on PS3 which should easily say to the consumer,"Perfect big Christmas present this year." Next year is already getting huge for PS3, but 360 has so far confirmed Alan Wake and Mass Effect 2 right?

PS3 next year has God of War 3, last guardian, heavy rain, white knight chronicles, FF14, and tons more I'm sure I'm missing plenty more, but honestly 2010 is huge for Sony.

2009 in my honest opinion is not as stellar of a line up as 2008 was for me as a gamer, but 2010 for both 360 and PS3 is going to be nuts. If Natal hits then 360 is expecting its sales spike, and if PS3 keeps delivering big name titles like god of war 3 and gran turismo 5 in 2010 then we are all in for a great year of gaming.

[keysy420]

get over it people the ps3 slim will be the same price. but the big difference is sony will start making money on its systems sold. I think its to get investors off their back. the ps3 will have a pric drop after they started making some money could even be a significant one so stop waiting for it its not worth saving the money

[RockmanII7]

If a slim is the same price as a fat one and has less features, who would buy it?

[keysy420]

with games like uncharted 2 and god of war in the distance dont expect a price cut soon people will pay to play

[-MD-]

Why would someone buy a PS3 to play Uncharted 2 if they didn't buy a PS3 to play Uncharted 1? Serious question.

[leila01]

Coz Uncharted 2 looks miles better than Uncharted 1 and it has online multiplayer now.

[XboxUltimateAlliance]

yea Im sure everyone will be buying Uncharted 2 and God of War 3 next year, just like everyone bought Killzone 2 and Infamous this year.

Heres a hint: nobody cares.

[cereal_killa]

Here's a hint: ONLY LOSER MUPPET FANBOYS CARE ABOUT SALES

[leila01]

Too bad for them, they've and will be missing a lot.

[Xi]

the people who want those games likely already bought a ps3 for those games.

Unless a game comes out that is a radical change from what's expected, and if that game is highly marketable and ushers in a new market of gamers, ie casuals. Don't expect the sales to increase dramatically.

I've only ever seen 4 different reason console sales ever spike:
1- it's become realatively cheap
2- it's had a popular sequel come out, from a previous console, while the install is relatively low, and the adomption rate is still low. (eg. mgs4, halo 3 both games released early in the life-cycle. Gow3 would be outside that range and U2 would be catering more to an audience that already bought the system, like gears2 did.)
3- it's found a new market.
4- it's got new features that make it a must-have for more then just gamers.

[Snake Raiser]

I'm pretty sure that God of War 3 will move consoles. Just like Metal Gear Solid 4 it is the/a squeal to a popular franchise. It has the same kind of appeal as Halo3 for fans of the series (me). As for it being out side a range....I don't think so. I don't think that there really is any "range". You can tell just from looking at the sales for this gen of consoles and comparing it the last gen total sales that a lot of people who bought a console last gen have not bought a console yet this gen.

[Xi]

Is that the chances of the people who are most interested in the title already own the console is higher then the people planning on purchasing the console solely for the game.

Sure it will cause an increase of sales but it wont be to the same extreme that Halo or MGS did for their respective consles, nor will it be a catalyst to higher sales.

As for the number of people who purchased consoles still not being what it was last generation, you have to also remember that most were purchased under different circumstances as this gen, and while the consles were much cheaper. Also the numbers are closer then one would expect. Last generation there was roughly 110ps2 35xbox 30gc (end), currently things are around 51/31/22 respectively with 2-3 years remaining. That difference of around 50 consoles isn't likely to all be won over by a single game that sold under 10% of it's install base.

[Aclay]

Sony said they are targeting to sell 13 million PS3's within their new fiscal year at E3 and there's NO WAY they will meet that if the PS3 remains at $399, so a cheaper PS3 WILL be coming if they want to meet their sales target.

After all of the E3 leaks, does anyone actually think that Sony is going to hint at a price cut? There's no way in hell any Sony rep. is going to even HINT at a PS3 price reduction until the last minute.

Regardless of Tretton and Stringer shooting down PS3 price cuts, I still think that the PS3 will get some sort of price reduction before the end of the year because: I just can't see the PS3 going 2 full years without a price drop, and I imagine Sony wants to meet their sales target, and in order to do so, they'll have to introduce a cheaper PS3.

[SpoonyRedMage]

The PS3 has alreayd dropped $200 I believe but it HAS had a massive price reduction.

[gtafan]

Why are people even whining about the damn price. It's freaking cheap as hell for what you can do. It's a freaking super computer with all the bells and whistles. People pay more for a freaking cell phone these days. To name a few the Iphone, G1, Blackberry, Palm Treos and the list goes on and on. How about a freaking decent digital camera or video camera. Stop crying about the price and work harder to get one. It's not like making a car payment every month. Stop smoking and by the end of the year you will have the money to buy one. Stop going to Starbucks and buying cheap coffee. People spend more on alot more crap. We also spend way too much money on Lcd Tv's. No one complains about that. Crybabies.

Ps. If you are waiting for a miserable 50 dollar price drop. You must have the brain of a ccckroach. Come on we waste 50 bucks in dinner at chili's every other weekend.

[roxkis]

All the people with iphones and big tv's can get ps3's if they want them. Most people(who aren't hardcore gamers) aren't going to make sacrifices in their lifestyle to get a PS3 when they can get a cheeper console and have just as much fun (in their view). Its like telling people to eat bread to save and get a BMW when most would rather eat normaly and drive a cadalic.

[onanie]

You mean the Wii? obviously price is not the only determining factor. While you choose to ignore the advantages that PS3 has, they readily explain why people are still buying PS3s, and why the overall sales rate of the PS3 exceeds that of the 360, despite the pricing difference.

There is no reason to believe, other than spite, that PS3 won't meet the target that they've set out, again.

[JD_Shadow]

Actually, in the article, I'm actually wondering where in all of that is the actual denial that a price cut is coming. He seemed to be only be answering why he thought people were asking for one (such as Activision). Not sure where they saw a denial in this.

[i_am_interested]

its not so much a denial as it is a: we're comfortable with the current price, even if a market share is 7+ million below

it pretty much continues their mantra about focusing on profitability

[leila01]

I agree "i_am_interested".
I think wht they care about right now is profitability (and their doing good, not great, but good for a console that's that expensive). So with that in mind I don't see them dropping the price.

[mpmaley]

I'm so freaking sick of these articles and the fanboys that love to attack PS3 owners because of them.

For the billionth time. Sony will NOT announce a price cut and will keep DENYING said price cut coming in a few months to prevent sales now from dipping.

Announcing a price cut will kill sales. I know it must be hard for some of you to understand but try to. And if you do, stop the freaking trolling b/c it got old about 2 years ago.

[Death]

By constantly saying a price cut is needed to increase sales and reporting news and rumors of a cut, they are making it harder for Sony. The die hard Sony fans have been great because they buy the prduct, but they are probably the worst thing Sony has had to deal with also. The true Sony fans should be telling people to buy the PS3 and it's games. Instead they seem more content to focus on the PS3 Slim, an upcoming price cut, and trashing most of the exclusives that aren't perfect.

In all honesty I prefer the XBox 360 over the PS3, but that is due to the overall experience I have with each and the games I enjoy playing. I don't agree with Sony's launch decisions, the high price point for a game console or the light game library the first year. I also think they weren't prepared enough with their development support and their lack of quality middleware to showcase what the PS3 can do. At the same time I have never told anyone not to buy a PS3, but have recommended they buy based on the available games and the Blu-Ray support for movies. I also feel the price at $399 is more than fair for todays market. Microsoft still has a $399 SKU and that lacks Blu-Ray playback. As far as bang for the buck goes the PS3 is doing great. As far as sales go, they are very competative especially given the price point. Once they become profitable and can sustain that with a price cut they will. For anyone to demand it now is just hurting Sony more than anything.

-Death

[poindat]

People can call for a price cut all they want, and fanboys may make it seem like the amount of sales decides which company 'wins', but the truth is, all Sony cares about is profit. So what if a price cut brings in an extra million customers? If Sony is losing money on each system as a result of the cut, it means nothing.

They will cut it when production costs and demand are in sync. It may be now, it may be next year, but don't expect them to announce it until either a couple weeks before or at a major event (TGS has a good chance).

[Traveler]

Best post in here. You nailed it.

[Xi]

But I'm guessing there's a reason that they're unable to do it...
*cough*nvidia*cough*

[ascendantofrain]

When will people learn that introducing a new SKU (aka PS3 Slim) at a lower price is NOT the same thing as a price-cut. They have been denying the price cut all along because of this logic. Nobody has the smarts to ask them if they will introduce a new SKU at a lower price....

[Xi]

psOne was more exspensive then the psx when it was released
ps2 slim was more expensive then when the ps2 when it was released

whiy would the ps3 slim be cheaper?

[RememberThe357]

This might have something to do with it.

[interrergator]

its doin fine if people THINK that there not selling and there sales are plummeting u have GOT TO BE RETARTED

[illjaden]

What Sony should've done is made three types of concolebundles like Microsoft. 1 Light version with only concole without wifi or harddrive. 1 Medium with Harddrive and one Big with harddrive and wifi.

That could've given us a pricetag of maybe 199 - 299 - 399

I think that: well, yes Sony wants to give everything to the concumers: "Look here, here you go a machine that can do everything and that has everything built in". But many concumers just wants a gamingconcole at a cheap pricetag, and if they at a later point want to, they can buy a harddrive and wifi. What do you guys think?

[dktxx2]

no they shouldn't have. every ps3 has a hard drive means developer can utilize them. its better for every one. plus hard drives are cheap. it costs practically nothing to add a 20gb to a console.

Plus 3 skus is too many. with 2 you can compare side to side. with 3 it becomes harder to compare for say a grandma looking for a gift for her grandson or something like that.

[Death]

Developers aren't stupid. They can code a game to use the HDD or not and get the same benefits. Would it be easier for them if it were standard and they didn't need to have hooks for both? Sure. At the same time though you can't assume just because you have a HDD you also have available space. PS3's standard HDD has been nothing but a crutch for devs that haven't found a way to optimize code or have used Xbox/PC as the lead for development.

I like the fact the PS3 has a large drive included, I don't like the way the HDD is used. Needing an install the size of a DVD9 doesn't seem like a good idea just to get performance equal to a standard DVD.

The Xbox 360 HDD is overpriced. The PS3 HDD is undervalued. You shouldn't get less useable storage on a PS3 with 60-80 gigs due to mandatory installs than you do on a 20 gig Xbox 360.

-Death

[cmrbe]

but i disagree that the HD should be scrap. HD,Blu,HDMI should always be standard in any PS3 SKU. Everything else is fair go.

[onanie]

After all the installs on an 80GB PS3, it will still have more usable space than a 20GB 360, and infinitely more space than a 0GB 360. There's no need to exaggerate.

As you've pointed out yourself, it just makes it easier for the developer to know that a HDD is mandatory in each unit. If it should come down to the availability of free space, it is certainly much easier for a PS3 user to free up some on their unit, than for a developer to program around the possibility of even one PS3 user not having a HDD.

[ultimolu]

They will cut the price when they're ready. These rumors are hurting sales and people need to stop spreading them.

[myothercar]

"It seems as if the dismissive power of Sony CEO Sir Howard Stringer is not quite enough to convince the games industry that the platform holder will not be cutting the price of PS3 any time soon – so SCEA president Jack Tretton has joined in too."

WHAAAAT? No.

July 3rd: Tretton discusses price with FastCompany
July 7th: Stringer discusses price with Reuters

July 3rd occurred before July 7th, dumbasses @ mcvuk

Are you also getting tired of these articles just being regurgitated over and over and over to the point where nobody can figure out when or where they originally happened????

[JonnyBigBoss]

They want to try and keep moving their current hardware without making people just wait for the drop.

[Neo604]

Quit wining all you broke ass, don't spend too much on fun.

the psp alone already keep Sony standing.
50mil unit x $200 = 10bil

they don't need all you broke ass to tell them what to do.

[Xi]

the psp also cost 3 billion in RnD, and was also sold at a loss for the first 2-3 years. Along with other problems that plauged the system like dying pixels on the first batch of psp's. Sony believed that sales of umd movies would help reduce the cost however they never really took off as expected.

Some estimates today still show that the psp hasn't become profitable because of the wide-spread piracy and homebrew on the system.

[i_am_interested]

generally speaking, if you were to take just R&D into account, sales have already covered R&D, which leaves manufacturing costs, however psp has been out almost 5 years and still costs 160 - im no expert but my guess is that it costs far less than that to produce

as for pirating, yeah it prevents sales but every console pirated is still a console sold

[Xi]

even still, my point is that the psp hasn't generated 10billion in revenue for sony.

[RememberThe357]

but it's not profit. Revenue is over all money brought in. That minus costs determines profit or loss.

But your point still stands.

[Xi]

My mistake I meant 10 billion in profits.

[onanie]

Why does it need to generate 10 billion dollars in *profits*? Try again.

[topdawg122]

Ps3 is a good deal as it is. This denial of a price cut is just their strategy to quiet rumors about the price cut

[JasonPC360PS3Wii]

Sony... say goodbye to Activision and the PS3, nice knowing ya.

[TheDeadMetalhead]

I currently have 16 PS3 games. Let's see how many are from Activision, shall we?

Bioshock? 2K, NO.
Burnout Paradise? EA, NO.
Fallout 3? Bethesda, NO.
GTA4? Rockstar, NO.
*12 games later*
Sega Rally Revo? Sega, NO.

I have no games published by Activision.

Besides, Activision won't go through with it. They need Sony a lot more than Sony need them. And even if they did:

- PS3 would still have Rock Band, which is better than Guitar Hero
- Infinity Ward would just find another publisher for MW2 (I still don't have the first one, lol)
- Tony Hawk? Do people even play that anymore?

Activision can screw off. You fail again.

[evilmonkey501]

yeah right...lets just cut off 22+ million potential customers! not on your life buddy. not ever. That's almost half of their profit. They cant afford NOT TO SUPPORT IT. Activision is just blowing smoke up sony's butt. seriously, they will find a compromise.

[Figboy]

has there ever been a console that DIDN'T drop in price given time?

as a gamer, i don't care how Sony runs their business, as long as the great games keep coming to the PS3.

it's inevitable that a price cut will happen, and if people are REALLY that against paying $400 for a PS3 with all of it's features and games, then they didn't really want one to begin with.

most people with jobs make at least $200-$300 a week these days. is it really that hard to put aside $50 a paycheck to save up for a $400 PS3? within a month, they'd have enough cash to pick up a system.

now, i know the economy is hard, and people don't have much, but in America, we seem to have this inability to save ANY money at all, and that's not Sony, Microsoft, or Nintendo's fault. it's OURS.

i bought my PS3 back in 2007 when it was $600. i busted my ass at work, and i had to actively force myself to put enough money aside to drop the $650 for the PS3 (taxes, of course, and another $60 for Resistance).

now, you can get a PS3 + Killzone 2 + Metal Gear Solid 4 for $399.

i'm failing to see the problem here.

ah, whatever, people will complain because it's the internet and they can, and the people that really want a PS3 will buy one even if it's $400 when they can afford it, or save up for it.

[iceman06]

The average consumer (read casual gamer) doesn't really look for the TECH that is in a system. All that they care about is that they got the new...hot...(fill in the blank)!!! It's really about marketing and mindshare. I've said it before and I'll say it again. Wii took the world by It was EVERYWHERE!!! Even non-gaming events were sponsored by XBOX 360. This garnered mindshare over Playstation. So, the PS3 is playing catch up in several ways. There WILL be a price cut...and it will be along the lines of Sony's ever present strategy. It will probably be in the fall. Is it needed? Probably. Is it fair to demand that a company cut profits for you to save a couple dollars? Too me, you get what you pay for!!! (Blu-Ray, HDD, 1080p HD gaming, WIFI, and most importantly QUALITY construction!!!) Not a bad deal @ $399!!!

[strife01104]

Price cut would be nice ;However, if they keep rolling out quality bundles like they will tomorrow with the KZ2/MGS4 at Best Buy or giving away other free games /giftcards/accessories like I have seen in the very recent past..better still. Also check Dell out from time to time...they had the Drakes Fortune bundle at the the same price as the core 80gb a couple months back or the various MGS4 bundles AMAZON has done.

[deadreckoning666]

PS3 will have better exclusives, but the mainstream doesn't care.
Do sales affect my gaming experience with my PS3???...NO
Do sales affect Sony's ability to put out these great exclusives??...Sadly, YES

[LCF]

The PS3 is a high tech, reliable HD media hub, designed to push console gaming forward. You get what you pay for.

The PS3 cost over $800 to manufacture and it was released for $599 for a loss to the consumer, Sony ate that and STILL no charge for online play. People complain and bytch, now the PS3 is stripped down. I'm grateful I purchased the 80 gig model. I got B.C, media card readers and 4 USB slots that I all use. The price I paid was for a small investment for a unit that will have a 10 year life span. Small price considering Sony is only asking you to buy one and not another in 3-5 years.

People bytch about the price, well guess what? Save up for it.
This is the generation of complain.

[kewlkat007]

till the price-cut actually happens...

Putting a lot of focus on these rumors gives most unaware that Sony is desperate and isn't doing too well...

[onanie]

So why do it? Why "focus on these rumors" as you say?

[Knightofelemia]

WTF is Playstation 2.5 does anybody know?

[jerethdagryphon]

hes saying they could have revamped ps2 tech and called it ps3 and released it cheap but in 3 years it wouldnt seem very good

for instance a duelcore emotionengine 2 reality sythasisers and 256 ram with a hdmi output, ould have been profitable from the getgo tobuild
but theres not point if the ps4 would need to be made 3 years after it

[TheDeadMetalhead]

They'll cut the price eventually.

[rjackson1]

So what if Sony is in 3rd place. We all know that ps3 had the best games! It only matter if sony wants to win or care about marketshare.About being ps3 in 3rd place Tell us something that we dent know.Xbox360 was already had a 9 million plus lead before June 2009 NPD sales data come out.Plus 360 will have great games this year, and years to come.And you arrogant sony fanboys,you know its true.That's why i hate sony fanboys seriously you need to get a life!Simple as that.But i love my ps3!