GameStop CEO: PS3 a 'great machine,' but pricey

GameStop's CEO said Thursday that the price Sony's PlayStation 3 may be a bit too high.

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Simon_Brezhnev4192d ago

lol not surprised everytime i call gamestop this what they say "hey thanks for calling gamestop we have xbox 360s in for 199"

MURKERR4192d ago (Edited 4192d ago )

about those systems when they were that price? did we ever hear 360 was too pricey at £299 and hardware wise it offers alot less than ps3...ps3 at £425 was pricey, £299? a friggin iphone costs more and its sales havnt slowed, which proves its not price coz you get alot for the £299 its sonys terrible marketing it sucks,people see multiplats see the 360s cheaper its a nobrainer, market the strentghs of your machine and the exclusives which they better fix it for kz2 i want to get sick of seein kz2 ads

Capt CHAOS4192d ago

Which 360 you're talking about? We should be looking at the entry model prices.

GrieverSoul4192d ago

Im a salesman and I dont understand the logic in these CEO´s!
If the machine is pricey the more profit they receive from selling it! They do receive a profit from it! Dont think otherwise! The higher the console price the higher their profit.

This guy is a douch! If he´s selling videogames he shouldn´t take sides! He should sell whatever gives him profit! Yes, we all know the PS3 is expensive, this guy aint no genius and it doesnt suit his position to publicly say this kind of things. Its like Ferrari saying ´´Hey, we are expensive!`` Of course they are! But they are the best brand in automobile manufacturs!

My 2 cents!


Tell us something we dont know... :/

IdleLeeSiuLung4192d ago (Edited 4192d ago )

As a salesman, you should also know that the retailer will push whatever makes them the most money within their inventory. Console is not where the money is at, but rather games and accessories. Dropping $200 on a console makes it a little easier to drop a little more money on used games and accessories (most profitable items).

Retailers reportedly make almost nothing on consoles. Sony's PS3 is at the higher price level, not because Sony is greedy (at the moment), but rather because manufacturing cost is high. If Sony could drop the price without significant loss they would, why give away market share to MS in such an important phase of the console life. Price is the biggest factor holding back the PS3 at the moment.

As a business man, GameStop CEO utterance makes perfect sense.

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It is relative pricing. If the 360 at half the price (in the US) can do almost the same as a PS3, why pay extra? Is the extra features worth the extra money? Clearly in a slow economy, people are willing to save some money up front.

It is kind of like the next neighbor syndrome. If you make $100k, but your neighbor made $4 million, do you still consider yourself well off? Would you be happy? Most people would probably say no. Humans measure things relatively, not absolute....

MURKERR4192d ago (Edited 4192d ago )

.. @ideallee, thing is 360 CANT do almost the same as the ps3 it cant play bluray,surf the net,bluetooth,use sata harddrives,and extra costs are rechargeable controllers,wifi,online which is all standard on the ps3...see the £299 price seems more reasonable now doesnt it, its all down to lack of marketing why the ps3 is this price which is sonys downfall

SHAKIMAT4192d ago

The ps3 is a good machine but so is the xbox360 and I preffer the 360's more comfortable controller.

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SL1M DADDY4192d ago

I figured that out the second they said he was the CEO of Gamestop...

And the PS3 may look to cost more but we as gamers and lovers to entertainment know that it is a package deal and what you are getting for the price is well worth every penny.

GrieverSoul4192d ago

I see your point but maybe you and others didnt understand where I was trying to get at!

If I walked to my boss and say:

´´U know what, this object is to expensive! Why dont we drop the price on it in order to sell more accessories for it?!``

My boss would walk out the room, come back with an envelope and say he doesn´t want to see my face again!

In your CONSUMER point of view, youre right! In a sales wise point of view this CEO should say that the price comes along the package.

´´U get a blu ray player, a media center and a Playstation with it! Its a good deal for 400€!``

U dont agree and neither do I because we just want to play games! No more, no less! But its all in the way of saying these things in a positive way!

As a CONSUMER you may not agree with me, but in the busines world things are a little diferent!

jadenkorri4192d ago

360 on its 3rd year, and manufacturing is prob cheaper, which is why the 360 dropped in price, while ps3 is only on its 2nd year, were manufacturing might be still expensive, hence the higher sure if ps3 was on its 3rd year just like the 360, they would be price matched exactly, if not maybe 1 cheaper than the other by a little bit, but not double the price...

Sitdown4191d ago (Edited 4191d ago )

I agree with IdleLeeSiuLung. I am wondering that in trying to differentiate between consumer and business....that you failed to see how both combine. For instance, in the scenario you gave.......I do not believe it would be that cut and dry.....because figures could be produced to show how it balances out. Look at a company like gamestop.....they sell used games for $, how many trades/sold games do you think they see in a given day....versus how many transactions for consoles/hardware? They understand the bulk of their monies comes from games/accessories.......and the only way to sell more game and if people are buying consoles......and people are more willing to buy consoles if they are cheaper. As people have said over and over......the money is not necessarily in the hardware, but the software. If console makers often start out selling their systems at a lost, how much profit do you really think Gamestop would be making off of them.

IdleLeeSiuLung4191d ago (Edited 4191d ago )

I'm telling you that any boss will see dollar figures. If you can show the dollar figures, then he will follow. If not then he is not fit to be your boss and the company is badly managed. Then the company will go under and you better get out.

The scenario you listed does not give me enough background to comment on. Why would you want to drop the price to sell more accessories? Unless profit from accessories can cover the loss of lowering the price over a large portion of customers? Also, are you the retailer or the manufacturer? Both have different agendas.

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It is not about the features the PS3 brings to the table and I think marketing might have a little to do with it, but the bottom line is that Sony's ability to price the machine is the root of all problems. Consider this:

- Marketing is dependent on money the company has to delegate. Lower profit, lower ability to market the product.
- Lower prices (not always, but often spurs additional sales), but if the machine is at the break even point lowering price is obviously not very wise and in return lowers the amount of money the company can use to further invest into the PS3 business.

Sony is in a peculiar situation and price is the main problem here.

On a side note, since you mentioned rechargeable batteries on the PS3. This is the one big grief I have for such a high end machine. On the Wii and Xbox 360, they use regular AA batteries. This means I can buy regular rechargeable batteries (recommend enerloop) and I can pop a new one in when the old one wears out. No need to buy an expensive clunky setup.

On the PS3, it is attached to the controller. Batteries run out, I have to plug it in using the 6ft cord Sony gave me. I sit fairly close to my TV and 6ft cord is barely enough if not a tad too short. In addition, when the battery fails I have to unscrew the darn thing to replace the battery and I'm not even sure you can just buy the battery in the store. This is a bad design in my opinion and is also one of the reason I dislike Apple products such as the Ipod. Does the Zune have this problem?

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Nathan Drake4192d ago

Interesting comment,I'm positive it will be spun into "GameStop CEO says Ps3 sucks" or something of that nature

myothercar4192d ago

The fact it's even been approved is spin enough. What are we supposed to say? "Interesting theory.. Pity I hadn't thought of it earlier." This article is lame.

Sarcasm4192d ago


please PM me the full pic of your avatar

Why dis4192d ago (Edited 4192d ago )

#1, should they say otherwise?

Offerings is key not hype.

I guess consumers will determine that and that is not a good sign right now if ever again.

BananaSlug4192d ago

when did Captain Obvious become the CEO of GameStop?

Sheddi4192d ago

hahahahaha that one made me laugh so hard :P
good one!

DJ4192d ago

The only question is when. They could go back to losing over $100 on every system, or wait until the Slim PS3 is announced and released to drop to that price point.

Why dis4192d ago

Sombody has a slim out on the market in the the new generation? lol

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