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PlayStation Price Chop: A Sign of Evolution or Extinction?

TheStar writes: As more consumers access low-cost video games through their smartphones, Sony recently announced it was slashing prices on its popular PlayStation 3 gaming console.

But if you think the price reduction is a desperate attempt by Sony to keep pace with mobile phone competitors, think again.

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BakedGoods2183d ago (Edited 2183d ago )

The PS2 hit $150 within 5 years of launch--that was half it's launch price. The PS3 has a similar pattern, $500 at launch (depending which model you use) down to $250 five years later.

So any 'price drop doom-and-gloom' stories are probably just bored gamers waiting for Uncharted 3 ;)

rezzah2183d ago

i thought the price was $500 at launch...Must be one of those false memory thoughts.

Btw

Where's the 360 opinion version of a possible evolution or extinction topic?

There is ALWAYS something negative pointed out for anything Sony. Whereas MS gets a free ride at positiveness every time.

gamingdroid2183d ago (Edited 2183d ago )

I don't think there was doom and gloom before the price drop or after, but Sony missed their target last fiscal year for PS3 shipments.

http://www.videogamer.com/n...

Furthermore,

"It's also worth pointing out that fourth quarter PS3 sales came in at 2.1 million, down from 2.2 million in Q4 fiscal 2009. In fact, it's the second quarter in succession which saw a sales decline: Q3 FY10 managed only 6.3 million units compared to 6.5 in Q3 FY09."

So I think Sony was under pressure this year to show growth, while Xbox 360 has had a tremendous growth. Sony with no products in the pipeline to change the trend, price cut is the most obvious and generally the last thing a manufacturer will do to stimulate sales.

Of course, now MS is under pressure the second time in a row too! How the heck did MS compete with Sony with no price drops for 2-years?...

I'm almost certain MS will drop their price soon. How do you compete with a a $250 PS3 with a $300 Xbox 360?

DebateMaster2183d ago

MS has a 199 360. not sure you knew that

NukaCola2183d ago

The $199 Xbox 360 comes with nothing. It's an empty shell dude. I hate when arcade models are brought into it. If you want a 360 that is usable, you still need to spend a little more cash. And with PS3, they extra $50 gets you bluray, 320gb HDD, and all the other features of PS3. Not saying a 360 is bad, but the PS3 is a phenomenal deal.

kneon2183d ago

@NukaCola

Yes the arcade is quite bare bones but the average consumer is rather clueless. They see the cheap one and buy it not understanding all the extras they will end up paying for in the end.

BTW the arcade is often on sale for $149, and once and a while I see refurbs as low as $99.

fear882183d ago

This article is beyond dumb. There is a big difference between dropping the price based on supply and demand and based on production costs.

Computers used to be $500 at the most affordable price.
Now they are 250. Does that mean that computers are becoming desperate for sales? No. It's a sign of production becoming more affordable. It's evolution.
.
The HP touchpad used to be $500 at few months back. Now it's $100 on clearance. That's because there was no supply and demand.

The ps3 was on sale at $300 for 2 years. Now it's 250. They are not desperate or in fear of extinction. Production costs have gone down hence the price. For Crap sake its a new model revision.

How dumb do you have to be to not understand that?

gamingdroid2182d ago (Edited 2182d ago )

***This article is beyond dumb. There is a big difference between dropping the price based on supply and demand and based on production costs.***

Prices are never dropped due to production cost, it is always supply and demand stemming from competition.

If production cost goes down, guess what? It is pocketed by the company as profits, until another company provides better value.

That is why the PC goes down in price, because there is room for it, and somebody was able to offer it cheaper to attempt to steal sales from the competitor, not because the company JUST WANTED to give you a better deal.

If there was no competitor to PS3, Wii or Xbox 360, none of those guys would be dropping the price. NONE!

It's not charity, it's maximizing profit. Capitalism at it's finest!

+ Show (2) more repliesLast reply 2182d ago
SuperStrokey11232183d ago

Wait, are they comparing the PS3 to mobile phones?

vyke32183d ago

obvious troll article is obvious.

badboy74282183d ago

I honestly think it's preparing for PS3 Vita bundles.

Rage_S902183d ago

The retardation is strong with this one.

NukaCola2183d ago

@TmanX1

Is this one good?