Sony: PS3 will remain most expensive console on the market writes: "Sony Computer Entertainment Europe's David Reeves has said that he believes the PlayStation 3 will always demand the highest price in the home console market.

Speaking in an exclusive interview with our sister site, Reeves admitted that there is a possibility for a price cut on the luxury console – but no plans are in place due to the current economic downturn."

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PirateThom4563d ago

Please let this man stop talking.

Captain Tuttle4563d ago

It's like watching a train wreck in slow motion.

IzKyD13314563d ago (Edited 4563d ago )

He is so getting fired.
Admitting a price-cut "may" happen is a really stupid business move, people won't buy a product if there is a chance of it's price dropping.
He should have just stuck with the "We have no plans for a price-cut at this time" story

mesh14563d ago

game ovwer for the crap station 3

Anon19744563d ago (Edited 4563d ago )

What on earth are the 3 of you talking about? Everything he said made complete sense. Of course the PS3 will remain the most expensive console. You don't see Porshe dropping their prices to compete with the Honda Civic. It's a different product aimed at a different market.

And what's wrong with stating that a price cut is coming at some point in the future? Everyone knows that...of course the price will come down eventually. Some people will wait, some won't..but they all know that if they wait long enough the price will be cheaper.

It's like he said the sky is purple or something. I'm not sure what you guys are even objecting to here.

Ju4563d ago

That's exactly what he's saying, though. I mean everybody is hoping the price will go down, this is no secret. I can imagine Sony would like to fulfill these wishes. But he just says, in the current economic situation and without further cost reductions on the production side, they simply cannot lower the price. Read the article, not just the headline (but true, most people understand one liners).

Pennywise4563d ago

I didnt think he said anything that wrong. Eurogamer was really grilling this guy about the competition. I think he handled himself well.... well, besides the whole "arrogant" comment about Kaz.

Consoldtobots4563d ago

wuts the hub bub? bub.

Sony just made their yearly sales target with a $400 console in the midst of an economic panic. I wouldn't care if its the most expensive console on the market either. It obviously has the selling power at $400. For as much as the 360 fanboys love to talk about financials Sony is the only one that is on the right path to profitability this generation. They will make their money back selling the console @$400 and then make profit. THAT is how you stay in the console business.

Monchichi0254563d ago

Yes, Porsche will not drop the price to compete with the Honda Civic, but then again, Honda sells A LOT more Civics then Porsche will ever sell cuz of the price.

And in this industry, where the majority of the profits come from additional accesories and software that's not a good business model to follow.

Silellak4563d ago

The car metaphor, in general, is silly.

Consoles live and die by the quality and quantity of the games that are released for them. No more, no less. As long as 360 games exist that can match the fun-factor of the PS3, then the 360 isn't going anywhere.

The car metaphor would only work if specific cars could only use specific types of gas.

"I can't wait til the exclusive Civic gas comes out this year! Long live LittleBigPetrolium EX."

Ju4563d ago (Edited 4563d ago )

Sure, the accessories and game (license) market is what drives the console business. But having a black zero certainly is a main goal on the HW side of things first. That means every penny you make from games is one to keep. Nobody really makes millions based on HW sales. But it should sustain its business on its own, especially in times where hard cash is hard to come by (what you need if you want to sell millions with a loss). Needs to be financed with cash flow. The price war was what killed Sega. Has this been forgotten ? BTW: There is no way, Sony can survive a price war with MS, ever saw the Sony's financial sector is one of the big(gest) losers in its portfolio ?

The car analogy works, why not? Just because Civic sells more doesn't mean Porsche will go anywhere. And same for the civics out there. Both have their target "audience".

MasFlowKiller4563d ago

With the PS3 You Get What You Pay For,

One Of the Best Blu Ray Players On the market

The Most Exclusives

The Best Exclusives

Free Online Gaming

Highest Rated Games of 08

Most Anticipated Games of 09

IzKyD13314563d ago

Big difference in opinion here

morganfell4563d ago (Edited 4563d ago )

Why should he stop talking? Unlike Aaron Greenberg he is being a great deal more truthful. Did you read the article? Look at his remarks about the PSP. Fairly open.

Also notice the disparity between Eurogamer's gouging and the kid gloves they used to interview Greenberg. Quite a difference.

I stated last year that no one knew if Sony were hitting their sales targets. Only Sony knew. They had bigger matters with which to deal such as Bluray victory in the format wars. Sony is planning in a much more intelligent fashion and like typical Japanese their plans are long range rather than 4 year here enjoy you support dropped console. Next!

silvacrest4563d ago

True but i agree with him

Anon19744563d ago (Edited 4563d ago )

I was just trying to convey the fact that there are different markets. Just because the Wii is selling 40 million consoles, should the PS3 cut it's price to compete with them? Well no, because a PS3 isn't a Wii any more than it's a 360. When you have a more fully featured product offering you have to expect that you're going to have to pay more for those features. Obviously consumers get it because the higher priced PS3 sold 17 million consoles in it's first two years.

And Sony gets it too. When Kaz says "We aren't in competition with the Wii," he says it because they aren't. There is some overlap but generally these two products aren't marketed to the same group. The 360 can do whatever the hell it wants, at the end of the day Sony is only responsible for Sony's products and sales and right now they're right on their targets they set for themselves. Now they just need a cheaper yen relative to other currencies.

Edit: Another thought. You mention that consoles live and die by their software. True enough, but even with the bigger installed user bases of the Wii and 360 - developers like EA are coming forward saying the PS3 brings in the most revenue for them. Again, clearly Sony is doing something right that they don't need a knee jerk reaction to the 360 having a good holiday season.

king dong4563d ago (Edited 4563d ago )

no ifs or buts! yeah the ps3 has some great features, but they dont seem to be justifying the price to the consumer at the mo! and in the current economical climate, they are becomming a hindrance, and are not allowing sony to drop the price.

not only that, the 360 is reaching a stage where you know plenty of people with one, has lots of games, and is cheap...which makes it appeal to more and more people. plus big well known games like gta can be found on it. which is alot more well known than 99% of sonys "big exclusives", and certainly more in peoples minds than unknown new i.p's which are a talisman to many people on here, but are not known anywhere else.

and, apart from harcore gamers like us, many many people dont read sites like this, dont care for sites like this, and will never ever read any of the 100s of negative 360 articles that get wrote in an attempt to stop the tide from defectin that way...all the casuals have already got wiis.

edit: moonchichi, 100% correct.

darkride: can you post links to the publishers showing where they make most money from! i've only seen one publisher claiming such, and that was TAKE2, just after they realesed bioshock for the ps3, and no games for the 360!

Nightblade4563d ago

Sony has been selling PS3's still even at it's price of $399. They didn't break sale numbers but they broke evenly. So it's not a loss situation. PS3's continue to sell even at it's price of $399 compared to Xbox's $199, Sony HAS to be doing something right. Even though people say it's price is too much for the economy nowdays, Yeah me being a casual person not into marketshare like most companies, I would think so too. Sony is one of the richest leading corps. in the world. Sony's PS1 and 2 started off like this. People saying "how would Sony's PS1 fare as a disc based console because if you look at others 3DO, Sega Saturn, Phillips etc etc, didnt last long" so now it's sony's turn. look how it turned out. Now PS2 "Ps2 switching to DVD game based format I dont think it will last that long" look at the outcome on that, now PS3 its just following it's footsteps year after year. I can say that Sony does have alot of balls bringing a new format to the table. They have always introduced something new with they're consoles if you think about it. and if it's a lie, look at nintendo, a company once thought that Cartridges was the way to go, look who switched to discs after a while?

morganfell4563d ago

King dong,

Earlier in 2008 the PS3 was providing the most revenue for EA. That did change late in 2008.

However, Ubisoft, Konami, and Namco Bandai all released their financials showing better profit from the PS3.

(The links are in that article)

Take 2:

SL1M DADDY4563d ago

Ubisoft also made the claim of making more money with PS3 games this last year.

Anon19744563d ago

Bubbles. Although I was just going to recommend he try Google. I'm a bit on the lazy side.

cmrbe4563d ago

But eventually Sony needs to cut the price of the PS3 to 199 and then 129 in the PS3 twilight years. If Sony fails to do this then Sony will have a major fight on their hands to reach 100 million PS3 in another 8 years time.

morganfell4563d ago

That may be true, but unless MS plans to get a new console out in the next 2 years then MS is the one with a major fight on their hands.

No new console in 2 years will put MS in last place this gen. The reason there is such an effect is a new console may stop more and more people from moving to the PS3. This year in particular you are going to see performance gaps begin to widen between the PS3 and the 360. Disc medium will become a bigger issue. Rage anyone?

Also the Xbox division should be sweating Windows 7. If Windows 7 bombs the way Vista did then you are going to see MS scaling back even more on any non software related divisions and the Xbox is one of those areas that will be targeted. MS has long ago dropped the integration dream they once had. This also includes the MS media hub plan.

Sony continued to run with the hub idea they were pursuing back in the PS2 days.

Ju4563d ago

It'll will always cost more. Well, if you compare the main stream products. But should Sony just lower the price to $349, it would be cheaper then a comparable 360 (with still less features). Everything is relative. We compare perceptions based on a number, that is. And we don't care about products. So we see $199, $249 and $399 - we conveniently forget the $129 (PS2), the $299 (the 360 Pro or what's it called) and the $379 Elite - oops no, guess what its $399 - they really need to lower the price here :).

DutyCalls4563d ago

the PS3 is a premium console with a premium price. I am extremely satisfied with the $500 i spend in this tremendous machine. for those wondering why $500 and still satisfied this are my reasons:
Once i took it out of the box, all i have to worry about is buying games, blue ray movies, and the HDMI cable. After that the PS3 consumes $0 that i dont want to spend. Free online game play, i mean, come on there is no excuse for charging, very reliable product, high quality performance. Since i got my PS3 it has been nothing but all good.

king dong4563d ago

an interesting read. when the fiscal year ends, and all the publishers make public the revenues and profits, that should also make an enlightening read add fuel to the arguments on!

+ bubbles for the work!

Cajun Chicken4563d ago

Another reason to hate David Reeves. Why do we have this t**t running EU?

Wouldn't of it been better to say;

"With PS3, you get what you pay for, but, boy, it is good, free online gaming, cutting edge tech? Adapting firmwares and features, access to sequels and new IPs from all your fav PS2 devs. What the heck else do you want at this excellent price?"

+ Show (23) more repliesLast reply 4563d ago
resistance1004563d ago

I can see why they wouldn't cut the price now, it wouldn't make sense, console sales worldwide are going to drop alot over the next couple of months and sony are better off selling it at the current price point and making a profit during this tough times.

I suspect we won't see a price cut until the hoilday season when sales will pick up again.

ultimolu4563d ago (Edited 4563d ago )

And when the economy gets better hopefully.

mirroredderorrim4563d ago

This was a very good article. The interview has some insight for people willing to look between the lines.

theEnemy4563d ago

I don't find the PS3 expensive.

It was worth every penny.

BMS844563d ago

so it should be the most expensive at this moment.. and it's not that expensive anymore.