Does the PS3 Need a Price Cut?

UNCyrus - 464 days 14 hours ago

as the article stresses, the functionally of the PS3 justifies the pricetag. It is by far the best bargain this gen considering what you get out of the box.

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Ben1054 - 464 days 14 hours ago

it would be nice
lol, the article said that the ps3 has almost no exclusives

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orakga - 464 days 10 hours ago

On a factual, logical basis, yes, the PS3 is a GREAT deal. The best bang for your buck, so to speak. I own two PS3s, and I paid $1,100 for my first one (at launch), and I don't regret it from an economic perspective (I also own all other systems, btw).

However, that's not the problem here.
Sony are refusing to drop the price because they are insisting on turning a profit on the console TODAY, when they should be focused on doing so over their "10-year lifespan". Somewhere, they are undercutting their own strategy and goals by making the console inaccessible to the market they are seeking to seize.

And it has had a vicious-cycle-effect. Yes, the PS3's biggest weakness is their software lineup (and please don't list their holiday lineup, because it's a tie against the 360's; both sides need to admit this), but it's also by their own fault that they are stuck in this quagmire.

Developers are not putting, of have not until recently put, enough effort toward PS3 development. And it's completely logical for them, because Sony has been patronizing their potential customers by claiming that they are "too stubborn to see the value of the $400 PS3", and thereby created the perception that nobody but the most affluent and dedicated gamers own PS3s.

Yes, the PS3 is worth it. Yes, once people own the system, they appreciate their purchase. But your potential market OBVIOUSLY can't tell. What Sony SHOULD be doing is to solve that perception issue. Instead of giving the customers only one $500 choice (the bundle), give them a $300 option, even if it is FAKE.

Case in point, the Wii is $250, but once you buy all the "necessary" peripherals, you're looking at a $400 investment before you can enjoy your Wii. But people don't care. They go to a store thinking that they want that $250 machine. Then once they've made that mental decision, it's not hard to squeeze an extra $50 here and extra $100 there.

Same goes with the 360. People don't know/care that the $199 core system can't do live, and doesn't have a HDD and headset. All they see is $199, and when they leave their homes they are going to EB Games to buy that $199 system. They don't care/know that they need to spend an extra $60 for the harddrive, $20 for the headset then $50 for live. Why? Because the price that gets marketted is $199, and not $330, which is the REAL cost.

My point? Know your customers. Understand their financial parameters and ACCOMODATE to their lack of foresight and research, and show them a $299 pricepoint. WHO CARES if they need to spend another $150 to actually start playing a game!! THEY DON'T.

Yes, I really, really hate to say this, but it's time Sony learned how to PANDER. Because the public is too stupid to do the math/research themselves. /shudder

---

Just imagine this. And I'm being somewhat serious here:

"PS3 'CORE' Package"
Price: $299
Comes with:
- Standard AV cable (these people don't even own an HD TV anyway!)
- 20 GB Harddrive
- SIXAXIS controler (make them pay for their own Dualshock 3s)
THE END

Honestly, whatever little Sony may lose on the console, they'll EASILY make all that up if they can turn around and make sure the PS3 can once again be seen as "THE" videogame system to own. But they don't get it. And it may not be until they lose the console war before they finally do.

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darkstar - 464 days 10 hours ago

I'd say a hundred dollar cut would help them tremendously if they could afford to do so.

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JoySticksFTW - 464 days 10 hours ago

then they do need a price cut, if only to keep up with the wii and 360.

Note, I said "this gen"... PS2 is like something from an 80's horror flick. It just will not die. And it's still making Sony money. And the PSP's recent resurgence can't be ignored either. Sony doesn't NEED to win this gen, but I still think they would want to go all-out to protect their marketshare and future in the videogame industry.

M$ and Nintendo seem to be in it for the long run. No push-over victories for Sony anymore

EDIT

@ Orakga

Well said. Agreed with everything. Bubbles

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Ju - 464 days 7 hours ago

@oraka. I don't agree. The min specs are useless. The HDD size can be neglected, IMO. How I have seen Sony in the past, is they will lower the price to a level it makes sense. I think they'll shoot for $299 sometimes soon. But usually they'll achieve this thru an optimized production version (Slim?) and better manufacturing (down scaled parts). The 45nm CELL is on the way, CELL/RSX hybrid will be another step, etc. (Smaler PSU, smaller cooler, maybe more cost effective BD drive, etc).

Do we need a price drop from a customer standpoint now ? Absolutely. I'd appreciate it. Can never be to cheap, can it (unless it breaks)? I just don't think they are ready yet. But I guess they have a road map already. Maybe the cheap 360 will speed that up a bit. The PS3 is sure worth the money, but, why would I say no for another $100 cut?

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pilotpistolpete - 464 days 7 hours ago

Awesome post man!

I find that sometimes Sony does tend to "not know the customers", so to speak. They seem to want to do everything right this GEN, but you're right in saying that pandering and hidden costs of our cut-throat economy is probably the best way to make money right now.

Sony probably could of shaved 30-40$ bucks off the initial cost by having to pay to play online for 50$. It would of been the norm with Live. Or much smaller (non standard) HD, etc.

But as an owner for over a year now, I'm very impressed with how much I've got for free. Demo's are just incredible this gen. I'd say its one of the best things. I think I spend more time on the NGS demo than the actual game. And I love how firmware updates just make it better and foolproof.

In that original 400$ ( EB games special with trade-in) there's a loadfull of added features that I never imagined would exist, all free.

But you made a strong point in mentioning that cheap hidden costs are easy money these days. People just seem to accept it better than inital cost.

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VF34EJ25 - 464 days 4 hours ago

Sony, instead of making the 40gb an 80gb, should have just dropped the price to $299. Instead of making the 80gb 160gb packed with a game. They should have just made it $399 with no game.

People would have jumped on those like a pack of wild wolves.

Though, by doing what they did increasing the 40gb to 80gb with DS3, and 80gb to 160gb. They are upping the value of the console. And anybody who knows value will see that.

But, "casuals" or regular people do not care. They just want a lower price point. They only see the "initial" price point and that's what trigger they're reaction to purchase.

Microsoft knows this, which is why they wanted to get their console to $199 first. And now they are advertising it with all the new games like Rock Band 2. "Starting at $199."

Microsoft is a shady company with questionable tactics. But there is absolutely no denying that they KNOW how to get the consumers reacting.

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Kareem - 464 days 14 hours ago

With the introduction of the 40gb model and improving price setting, the PS3 has been selling tremendously well, but I mixed feelings whether it's necessary to issue a price drop. One part of me is saying no as it it's selling well and it set at a reasonable price. The other part of me is saying yes because I'm still one of those people waiting to purchase a system and a cheaper is always good :)

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jaysquared - 464 days 2 hours ago

"microsoft is price cutting like penny pincher, $20 here, $30 there, $50 over there..

sony just dropped it's price once by $100 and has kept it steady since.. a price drop is on the way and it will be welcomed but i don't think they have to.. they should, but they dont have to... "

LOL.. You do know it was just two price cuts M$ did which came out to a total of $100 after almost 3 years in the market. Sony did do one big price drop but that was 6 months on the market. So what Sony did was more of a desperation move than MS.. The PS3 is a great deal with all the stuff you get with it. I'll probably grab one when its down to 199 or if I can rent Blu Ray at red box..

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silverchode - 464 days 13 hours ago

no they didnt dude. they spent the 3billion profit made by the ps2 in its first 5 years. the ps2 has been out for 8 going on 9. check your facts b4 you talk.

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Fernando8777 - 464 days 13 hours ago

goes to show what kind of company Sony is losing profit to better comfort the consumer price..unlike another company that sucks you dry for every penny you have not to mention they charge you to play online

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Jeremy Clarkson - 464 days 13 hours ago

Oh, I didn't know you were one of Sony's accounts.

Thank you for enlightening us.

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Parapraxis - 464 days 13 hours ago

check your facts kiddo.
"Of course they need one, its just isnt going to happen anytime soon. They've already lost ALL the profit they made in the PS2 generation with the PS3 and they are still making a loss with the hardware"

PS2's main profit was on software, not hardware. Yes PS3 has consumed most of the profit they made on PS2 HARDWARE, however it doesn't even touch the huge income they have from PS2 games.

They are using the money they made on PS2 harware as a buffer to ensure the success of the PS3. Sony can afford to sell the PS3 harware at a loss, MS can't.

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Omega4 - 464 days 12 hours ago

So you guys think that the PS3 taking 5 years of profit from the PS2 in 2 years is ok....wow you guys are crazy lol

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Genesis5 - 464 days 12 hours ago

Do you have stock invested in Sony? Why do you care? I really don't think the stock holders want a price cut. Unless it's proven it needs it.

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VF34EJ25 - 464 days 4 hours ago

"So you guys think that the PS3 taking 5 years of profit from the PS2 in 2 years is ok..."

There's also a small little gadget called the PSP...

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VF34EJ25 - 464 days 4 hours ago

Yeah that's why it's only $400 for a PS3... Or $500 for the higher model...

And come on don't complain about $600, when in 5 years for the price of xbox live, that's already $250 plus the price of the console. Plus the price of any extra accessories like wifi.

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Some_One_Plays - 464 days 13 hours ago

I agree with you on that one even though I believe the price cut really does nothing for the consumers. You're better off getting the Pro/Elite models instead because you save more money than the Arcade model ($199.99).

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etownone - 464 days 13 hours ago

"and is pretty much the #1 reason Microsoft cut their prices."

yeah, ok.
the fact its been for THREE years with only ONE measly $50 price cut had nothing to do with it

you do know the ps2 dropped down to $199 within the first two years, and the ps3 already dropped $100 within it's first year.

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HighDefinition - 464 days 13 hours ago

the PS3 came out November 2006.

You do the math.

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silverchode - 464 days 13 hours ago

doesnt a 360 cost 200 euros and a ps3 400 euros?

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bruiser81 - 464 days 13 hours ago

@14.1

I do believe that the 360 has had more than a 50$ price cut, the pro was originally 399.99 and the arcade 299.99. Thats a diff of 100$

@ below
Your statement was and still is "at least until you edit again" that the 360 has been out 3 years and has had "one measly price drop". I know it has had two cause i have one. But i get the point your making so its all good.

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etownone - 464 days 13 hours ago

http://www.gamepro.com/arti...

The "MATH" you requested.

20 gig PS3 $499 was introduced on Nov 11, 2006
40 gig PS3 $399 was introduced on Nov 2, 2007

equal less than one year... use your fingers to do the math if your having trouble

BTW, your welcome!

EDIT @ bruiser
? thus the second price cut making it $100 cheaper after three years.
the first was 50 bucks which made the pro go from 399 to 349, and now the pro is 299.

@ silvercode
your right, a typo on my part, and i fixed it. so they added more HDD to the ps3 for a cheaper price in LESS than a year. no need for a link, i think we all know there was no 40 gig ps3 in 2006

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silverchode - 464 days 13 hours ago

there was no 40gig ps3 in 2006
http://en.wikipedia.org/wik...

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etownone - 464 days 13 hours ago

come back down to earth.

maybe in your 90210 zip code, but the rest of the world prefers to save their money.

If your in the market for a blu-ray player, then the ps3 is a great bargain.

as a gaming console, still TOO expensive for the mass market.
it will be clear this holiday season

@ silvercode.
by what margin? it would years to surpass the 360 at the rate their going. And now with the 199 arcade...... i admit, the ps3 is a much better value for what your getting, BUT what is important are the GAMES and the PRICE. PS3 will continue to sell due to blu-ray, but the 360 is about the smash ps3 sales.

think about it, look at the history of when gaming consoles start to skyrocket in sales. it happens when they hit the $199. SO when moms and dads go to walmart the holiday season looking for a wii and they sold out, they will just snag up the 360 and even save 50 bucks... whereas the rest of the "mass market" will make the choice. A gaming system for $199, or a gaming system and blu-ray for $399 and being that they are fvckin cheapazzes, they will get the 360.

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silverchode - 464 days 13 hours ago

too expensive for the mass market but still sells more than the 360 world wide every month.

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Parapraxis - 464 days 12 hours ago

"the rest of the world prefers to save their money."

Well i suppose it's how you look at it.
If you are a gamer as you say, you'll want to play online. So put the cost of any model up $50/annum, and add an HDD to the arcade SKU.

That makes PS3 50$ more and has a Blu-ray player standard ($399 value).
People who are on a tight buget look more closely at value. I'd rathe spend the extra $50 and get an HD movie player than save 50$ temporarily, only to spend an additional $300 a year down the road.
Any smart consumer realizes this.

Another thing I think people don't think about is who in the home buys electronics. I think mostly it's dads, not moms. And when dad knows he'll need an HDTV in February I think he'll not mind spending an extra $50 bones to be able to watch Batman in HD on it.

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VF34EJ25 - 464 days 4 hours ago

@Para

That's because all the mom's are in Nintendo land looking for Wii or DS stuff. lol

Dads knows best. Non-cheap dad's that is. Heck, I was talking to my friends dad and he has an Xbox 360 elite. I asked him why didn't he just get a Pro? He said "If I'm going to spend over $350 anyway, I might as well get the best stuff now."

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n4gzz - 464 days 5 hours ago

good one.

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bruiser81 - 464 days 13 hours ago

I agree with you 100 percent, however i dont think sony is financially ready for the ps3 to sell like the wii. think about it, keeping the price between expensive and cheap enables them to control the flow a bit better. If they are still loosing money on the production of the machine i would think the last thing they want "AT THIS STAGE IN TIME" would be for it to sell like the wii. Financially their gaming department would go under and drain the others. At least thats my theory anyway

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Sprud - 464 days 9 hours ago

Replied to wrong post...

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cemelc - 464 days 13 hours ago

Yeah and we have like 15 good titles between october and june of the next year

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Sir_Ken_Kutaragi - 464 days 13 hours ago

NOPE!!! It's worth every penny!!! ;-P
.____....____....____
|.......|...|................ .|
|____|...|____....____|
|...................|........ .|
|............____|...____| BEST CONSOLE IN THE WORLD;)

Is the xBox 360 worth every penny??? ;-D ;-D ;-D
What a silly Question i just asked!!! ;-D Of course not!!! ;-D
xBox 360 = Biggest POS ever made!!!
68% RRoD!!! ;-D

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Microsoft_Spokesman - 464 days 13 hours ago

Very, very nice read. And I wanted to thank Bloodmask for a pro-PS3 article.

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cemelc - 464 days 13 hours ago

Of course Sony can afford it, they are winning for blueray sales and ps3 games sales, but no company in the world will cut prices on a product that is gaining momentum, look at the wii that machine doesnt need a price cut cos is selling damn well.

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sak500 - 464 days 13 hours ago

No just needs a garbage can to call home.

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cemelc - 464 days 13 hours ago

Did you smell that?

Hurry up i think you left your xbox on, and is burning your house.

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juuken - 464 days 11 hours ago

*sniff, sniff*

I smell BULLSH*T.

Do you have evidence as to why Sony can't afford a pricecut? I believe that they're not the corporation that's in the red right now.

And sak500...if anything, the 360 needs to be thrown in a garbage disposal to be crushed like a can...just like the rest of them. You want to call a well made console garbage? Then your Flop60 isn't a masterpiece either.

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karlostomy - 464 days 1 hour ago

http://www.n4g.com/industry...
http://www.n4g.com/industry...
http://news.spong.com/artic...
http://www.beurs.nl/nieuws/...
http://www.efluxmedia.com/n...
http://gamer.blorge.com/200...
http://community.winsupersi...

You want more, my little cherub?

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juuken - 464 days ago

And how long ago were these articles karl, one month ago? Two months ago?

What makes you think the PS3 won't be able to drop prices by next year? Are you *that* naive to think things will remain that way? Sony took that hit on the PS3 because they wanted to deliver a high quality product.

It was a risk but they managed to pull through.

Are you some kind of an idiot?

It amazes me how the PS3 is $399.99 and is still outselling a system that's supposedly cheap.

http://www.amazon.com/gp/be...

Major retailer, and the PS3 is at the top five.

I have *yet* to understand why 360 fanboys hate the PS3 with such a blinding passion.

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Shane Kim - 463 days 22 hours ago

Karlostomy, do you actually belive Sony is a poor company and can't afford a price cut? If counting total assets (not including the net-income) Sony makes almost twice the money MicroShaft does.

Belive me Karl, you can't even count to the amount of cash Sony makes.

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karlostomy - 463 days 9 hours ago

1. The articles are from 0-3 months old... so quite relevant.

2. Sony is a business and if its console branch is losing money, then it will seek ways to make profits. A price cut will not make profits - it will further compund the losses!

3. I am not saying Sony won't drop the price sometime during next year, but for now, it has no hope. This has been articulated by Sony's Stringer and Kaz Hirai et al.

4. @Juuken, I can always tell when I hit one of your many raw nerves.. lol.. you just start getting abusive like a little 5 year old. *chuckles* (What a way for a recent graduate to behave)

5. @Shane, "If counting total assets (not including the net-income) Sony makes almost twice the money MicroShaft does. " WTF? are you on drugs man? How can Sony 'make money' if you don't include net income? Are those assets going to start magically pooping money on monday morning? Or will they produce income through production?
Nice selfownage there, buddy.

6. @juuken, it's nice that you follow me around , but please stop it with the stalking. I am not interested in you, princess... :(

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juuken - 463 days 1 hour ago

I'm not that interested in you either because you are an idiot.
You just hate the PS3. :]

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silverchode - 464 days 13 hours ago

because it has cheap hardware.
nothing built in.
it also still uses things that common last gen I.E disk tray, multiple disks.

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Egzekutor - 464 days 13 hours ago

and you pay for quality ;)

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Sir_Ken_Kutaragi - 464 days 10 hours ago

Yeah more Advertising up to xMas;) But normal Adverts, not the strange ones.
They should do a lot for -
LBP ;-P
Resistance 2
MotorStorm 2:Pacific Rift
SOCOM:Confrontation
etc etc
+Even PSN Games Like -
Ratchet&Clank:QFB
WipeOut HD
etc etc
+Even Show 'HOME' when it's out to;) on T.V
+It's Blu-ray Movie playing to;)
+Show GAMEPLAY!!!of the Games!!! ;-P

I only ever seen one on T.V and that was GT5:Prologue!!! Advert, Looked AMAZING...so i got it!!! ;-P

If they let me do it!!!!!!!!!!!! I'd make it sell even Quicker!!!;)

But then again we have Nothing to worry about! ;-D I can't see another Next-gen Console out there!!! ;-D

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juuken - 464 days 10 hours ago

Ra dammit!

I still need GT5Prologue, Warhawk, Motorstorm, and Heavenly Sword! (wanna try that game out)

*shakes Ken* OPEN THAT PIGGY BANK MR.! >:3

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UltimateIdiot911 - 464 days 10 hours ago

GT5P is amazing in HD. The online play could be better, a lot better.
I want Heavenly Sword also. Pre-ordering LBP at Best Buy for Nariko.
Still need Uncharted.

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Sir_Ken_Kutaragi - 464 days 10 hours ago

It's a good time to get into the PS3 now for New owners i think;)
So much Quality games to get and Play ;-P
I'm a bit behind in gaming to, just started playing COD4(the Better PS3 Version!!!...i can't help having a dig!!!) ;-D
MY GOD! It's like your in a real WarZone!!! :-/ To real!!! Makes you think to about War, it's not nice War:-(
+MotorStorm is Stunning to look at ;-P Can't wai for number 2 ;-P
WarHawk is on it's way to me from eBay, next week!!! ;-P
So much to Play, so little time...

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juuken - 464 days 10 hours ago

*still shaking Ken until he passes out*

...Oopsie. ;_;

But yeah...the PS3 kicks ass.

Nuff' said.

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Sir_Ken_Kutaragi - 463 days 23 hours ago

You can get the Demos of MotorStorm still + GT(From the Japan PSN Store i think they still got the Demo of GT, really good Demo to!!!The in-Car view is AMAZING!!!) ;-P

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silverchode - 464 days 10 hours ago

come on you can do better.

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habsfan9 - 464 days 10 hours ago

Pretty lame comment, but you are right in saying that the PS3 doesnt need a price cut

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