Why a PS3 Price Cut Won't Change a Thing

Most likely the PS3 will get a price cut very soon. It is the common sense thing to do if you are Sony. So the question really shouldn't be when? Rather it should be, will the price cut even matter?

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pwnsause3527d ago (Edited 3527d ago )

"Price cut or not the PS3 would still be the highest priced of the 3 consoles. And to the parents of eager kids everywhere, the lower price Wii and 360 are a more appropriate choice given the economic conditions that every family is starting to face."

uh, the PS3 with a $100 price cut will put it in direct competition with the 360's premium 60gb machine which also costs 300 dollars, and it puts it $50 dollars more expensive than a Wii.

People will look at the 360 core and the wii and state "is paying 100 dollars more for a PS3 with all of its capabilities (Games machine, Media Streamer, web browser, free online, movie/games marketplace blu-ray player) worth it?" then they look at the machine, then buy it. look at the iphone, though its in a different market, people pay $300 for it because of the things that it does that other phones can't do. People will look at the PS3 the same way and realize that its worth it.

Now Im not saying it will outsell the wii, but it will get a great amount of people to get a PS3 over the wii.

The_Faceless3527d ago

From article:
"Sure the PS3's cheapest model is a better value than the Xbox 360's basic model. But to most consumers this is unknown. We gamers at times tend to forget that not all consumers know the latest gaming news. The average consumer just doesn't understand the value argument."

So very true

eagle213527d ago (Edited 3527d ago )

PS3 is second to none. No one is trying to imply that it will beat Wii but it will beat xbox. :)

In japan, PS3 is selling great at the highest price. So I guess with a pricecut it will continue to sell great. CROSSES :)

Silellak3527d ago (Edited 3527d ago )

I've been saying for awhile that, for the most part, average consumers - the ones who made the PS2 a runaway success - don't do all that much research into the "value" of a console. They see the initial pricetag, they figure out what games they want, and they know what people they know already own - and that's it.

With the dawn of online, this is a major factor has become significantly more important - the "my friends own something so I want it too" factor. It's a simple truth that, the more a console sells, the more people own one. The more people own one, the more it becomes a part of pop-culture, and the more people desire one. RL friends can borrow each other's games, talk about the same games, etc. It's very much a social experience as much as anything else. In the online gaming world, this effect is magnified, because you can only play with other people who have the same system.

There is also the sad, but undeniable fact that the PS3 already has a rep as the "expensive" one. You launch a console at $600, and that sort of thing tends to happen. The current state of the economy only exacerbates the price issue for Sony.

That's not to say the PS3 is doomed - far from it. But I think many people - particularly loyal Sony fans - vastly underestimate the obstacles Sony has to overcome to achieve 2nd or 1st place this console war.

All that said, at $300, I'd probably get one pretty quickly myself.

BulletToothtony3527d ago

that the ps3 hasn't even gotten a price cut yet and the hate articles have already started..

Holy crap.. why is the media spread so much fud.. haven't they noticed that their hate hasn't made the ps3 fail as much as they say it's already dead and how much saving it needs.

Please, even the basic economy rules always show that a price drop will increase demand.. the bigger the percentage of the price drop the bigger the sales.. i'm expecting the ps3 to increase sales 50% the first month and then stay around 30 to 40% for the rest of the year..

So the lack of common sense this guy has it's obvious that this is yet another fud article..

morganfell3527d ago (Edited 3527d ago )

Every major analyst stated that a price cut was needed AND would have an impact. Publishers and developers alike have remarked as much. Now one small no nothing site makes a ridiculous claim and I am supposed to give them more than a good measure of disdain and the end of my boot? No.

Epic fail, as stated above, is an excellent verdict and the article is a classic example of an effort by writers to remove their website from any serious consideration as a legitimate game reporting source...ever.

Even the Titanic hit an iceberg by accident while the action from gamingfront can only be deemed a deliberate ramming to sink any credibility they will ever have. Enjoy the trip to the bottom of the web hit sea. The sooner sites like these are propellers up and bow down the better the community will be.

This article just isn't rash speculation. It is outlandish supposition that goes against everything market analysis and past precedence have shown us. There are not many better examples of an assault on common sense.

The nature of this article is fairly transparent. It is another gloom and doom PS3 piece written with a purpose. Thank you gamingfront for revealing your true agenda and your true nature. Now that you have been identified for what you are we now know to avoid you.

SuperM3527d ago

The most stupid thing with this article is that every price cut so far this generation has significantly increased the sales of the console droping price. Why would this suddenly not happen this time? Im surprised how many stupid game "journalists" there are out there. Gaming will forever be looked upon as kinda immature until the gaming media and comunity grow up.

Silellak3527d ago

Though I don't agree with much of the article, it's important to note that the author never said the price cut wouldn't help - just that it may not be enough for the PS3 to "win" over its competitors.

I think his view, however, is too focused on North America, where the PS3 faces its toughest battle. Other regions will likely be enough to boost the PS3 over the 360 in the long-run, but I think the 360 will continue to hold NA for the forseeable future. People forget that the PS3 has to outsell the 360 by 100k+ every month for several years to make up the current difference.

CrazzyMan3527d ago (Edited 3527d ago )

Haters will stop whining about PRICE. =)

Moreover, there will be NOTHING left to complain about PS3, it will be just a PERFECT console.

Now, about sales, let`s think, that PS3 after price cut will sell around 20 mln. per year.

IF today:
Wii - 47 mln.
x360 - 28 mln.
PS3 - 22 mln.

By the end of 2009:
Wii - 65 mln.
x360 - 35 mln.
PS3 - 40 mln.

By the end of 2010:
Wii - 80 mln.
x360 - 45 mln.
PS3 - 60 mln.

So.. what changed? After some point, sales doesn`t matter much, if you have a big enough userbase. No one will ignore it, unless they planned it.

Just remember, that when xbox and GC launched, there were around 25 mln. PS2 sold, and moreover, ps2 was selling around 20 mln. each year from the launch.
Today is totally different story, Wii is ahead yes, but it`s competing against HD consoles, which sales in reality are on PAIR with Wii.
So, everyone is winning, everyone is getting their market share. =)

3527d ago
StayHigh3527d ago

Even when the PS3 was selling at 400-500 dollars it did really good.Another price cut will most likely help it sell more...

anh_duong3527d ago (Edited 3527d ago )

why are so many gaming 'journalist' so stupid they make catwalk models seem like nobel prize winners. the reason why ps3 sales overtook xbox sales early last year was an effective ps3 price cut and the only reason the xbox retook the lead was two xbox price cuts in europe.

so to say price cuts won't make a difference is to stick one's head up one's backside and ignore everything that has happened before; past history shows price cuts make a difference.

think about it: why did ms perform two price cuts in europe last year?

think about it: why are there so many software developers urging sony to cut their prices?

think about it: what is the main obstacle to many people who would like to buy a ps3?

there are so many so-called gaming journalist that have manure for brains.

you think these guys have all lost their job during this credit crunch. idiots - they must be getting paid peanuts since most are complete monkeys.

the stupidity of the gaming journalist this generation is astounding.

morganfell3527d ago

When the PS3 has a had a continual price disadvantage and still bested the 360 world wide in sales except for the recent period when the 360 undertook a drastic price cut, how can anyone in their right mind expect a PS3 price drop not to have an impact.

Aclay3527d ago

"Price cut or not the PS3 would still be the highest priced of the 3 consoles. And to the parents of eager kids everywhere, the lower price Wii and 360 are a more appropriate choice given the economic conditions that every family is starting to face."

The PS3 has always been the most expensive console, yet it's been able to sell literally at the same rate, if not at a faster rate that the Xbox 360 has sold in the same point in it's lifecycle at a higher price.

I mean, the PS3 was outselling the Xbox 360 last year this time at $399 in the United States (and Europe). It wasn't until the 360's SECOND price cut in 2008 in Europe that the 360 started to outsell the PS3 and the same thing goes for the U.S., because until M$ cut the price last year, the PS3 had sold more.

A PS3 price cut in Europe would definantly do some damage, and I think it would do some serious damage in the United States as well.

The only thing that I slightly agree with in this article is that if Sony waits too long to drop the price, a price cut may or may not have a really big impact because if Sony waits too long, they could miss out on a lot of the core PS2 owners that haven't yet upgraded to a next-gen console.

If Sony drops the PS3's price BEFORE E3, then I don't think it'll be too late, but if Sony waits beyond that time period, I would question whether or not it would really boost PS3 sales on a massive level, but I wouldn't jump to conclusions and say that it WONT change a thing like the writer of this article is doing, because if a PS3 price cut will happen around the time of GDC like the rumors are pointing to, I think it'll be huge on a Worldwide basis.

navyguy213527d ago

i bought 4 arcades for christmas gifts, and got chewed out by 3 of them they wanted PS3s lol, ungratefull bastards lol. Theyve already sold 3 if they drop the price :P

pain777pas3527d ago

Believe it or not but this article is way off and the gamers will determine what will happen and the games will aswell. I can tell you now that price will change everything soon because Sony's system is the overall best feature wise and cost wise once you realise what your getting with the PS3. It is better than the 360 and I'm not lying I have a 360. Why because it has what I want. Free online, great games, bluray, wifi.... you get the picture. I'm older and am into more than games. I've parried my consoles of choice hooked up down to the PS3 and PSP because I like what they offer overall. I have no need for the 360 anymore since the games I'm looking forward to except me2 are on the PS3 from here on out.

MasFlowKiller3527d ago (Edited 3527d ago )

So the PS3 sold at a faster rate as compare to the 360 at the same period in its lifespan and at a higher price point, and they think that a price cut wont help?

i suppose they forgot its not just a price cut, but a price cut to a system with the most anticipated games of 2009 and 2010 plus the highest rated lineup of 2008, and from what i still know the best blu ray player and free online.

but heck, if thinks it wont help then it probably wont, lol

Naucious3527d ago

In order for there to be a devastating difference in this so called console war sony needs to do 3 things that in my mind would absolutely boost their sales.

1. A Price cut will help the everday consumer
2. Backwards compatibility would be a huge winning factor for the PS2 owners looking to go next gen, and with that leads to #3
3. Stop supporting the PS2 console therefore making the last generation userbase make a choice

If they are able to do these three things no doubt in my mind there would be damaging results.

But I cant say i can actually see all this happening. So far i can see maybe Backwards compatibility with a price drop in the near future.... Overall i do feel a price drop is good steal and a good choice to attract the everday consumer...

Shadow Flare3527d ago

This is quite possibly the stupidest article i have ever read. It's almost like because xbox fanboys are realising that the ps3 price cut might be real, they panic and write these bs articles.

History has shown that ps3 price cuts have a bigger impact then 360 price cuts. PS3 has always been more expensive yet either oursells or matches 360's yearly hardware sales totals. So im guessing after the ps3 price cut, it will be outselling 360 again every week. And i really want that to happen so it will shut up the ignorant fools in the media who relentlessly bash the ps3

morganfell3527d ago

Naucious, I agree with what you are saying but the problem is Sony can now manufacture the PS2 dirt cheap and the thing keeps printing money. They obviously feel that even with such a conversion and B/C they would actually lose money by dropping the PS2.

thats_just_prime3527d ago

This article is dead on on almost every thing it say. Ps3 fanboys can sit there and whine and cry try to make up reasons that a price cut will cause the 2nd coming of the ps3. Oh btw how many 2nd coming is the ps3 going to have ?

Fact is sony knows that all these factors are true and thats why they havent cut the price and why they are no planning on cutting the price. I bet that 75-85% of all gamers have upgrade to a "next gen" system already. So the one they are trying to win over are all the causal gamers.

You got 3 types of causal gamer

1. The ones that buy what is cheapest (the 360)
2. The ones that buy that they know (ps3 and wii)
3. The ones that buy what their friends have ( this one also favors the 360)

njr3526d ago

The only people who wouldn't care about a price cut by now are the ones who already have PS3's.

Anon19743526d ago

But didn't the higher priced PS3 outsell the 360 for almost a year before the 360's price cut? And this doofus thinks a PS3 price cut won't matter? Try again.

SL1M DADDY3526d ago

To think, I almost clicked the link but reading what has been written here, I see that the site who wrote this article is just out for hits.

Jamegohanssj53526d ago

I can see the future!


jadenkorri3526d ago

this article is a fart in the wind, just grasping for straws....well in this case, crap in the wind...
how long have people complained, said doom to the ps3 cause of price, but the ps3 held its ground, now we have a pricecut like you all been begging for, and guess what, its now coming down, as far as we know, and now it won't help, since when did a price cut not help sell....I beleive the price cut on the 360 a while back helped it outsell the ps3 back at the end of 2008, so a price cut on the ps3 will not help, in your 360 dreams...

lcrkz00233526d ago

None of these consoles companies are paying us,so WHY DOES ANYONE CARE! Who cares if the Wii sells more, who cares if the PS3 sells more, Who cares if the 360 sells more. This is rediculous, its the same agrument each week stemming from a similar articles such as this one. All 3 have sold thousands and thousands of unit, they all are successful to me. All 3 no matter what place they finish are not going anywhere in the near future. So just sit back, relax and enjoy your consoles. Hell most true gamers have more than one system anyway. And its a no-brainer that which ever console is 3rd is gonna gain some edge just by the simple fact that more people already own the other two. There's no other way to go is but up. People who may just only own the 360 or Wii, with a PS3 price-cut may decide to purchase it. Meaning that their 360 or Wii sale is already accounted for, and now its a plus 1 in the PS3 sale. All this is redundant talk and it needs to be put to rest. WHO REALLY CARES!!! JUST ENJOY YOUR SYSTEMS! HECK ENJOY ALL OF THEM. Its like people can't like more than one thing at a time.

nothere4133526d ago

Purely speculation.

Just wait for the price cut.

Maybe it'll prove them wrong.

Naucious3526d ago

@morganfell... yeah agree with you as well with the profit that Sony is still making with the PS2 but for how long?? As we can see numbers are not the same as they use to be with the PS2. The install base must increase in order for sony to catch up and by eliminating the last generation completely, because come to think of it, Sony is the only one supporting the last generation, I think that will give people a push that they need in order to upgrade to next gen. It's the same as with this whole going digital with TV's in the USA.

@just_prime i cant possibly feel that 75-85% of the gamers have went next gen when a combined market of last gen consoles sold is well above 200 million vs. rounding from vgchartz (which i feel are not accurate n e ways) 100 million sold?? I do believe that causal gamers are still gamers all in all. But it is your opinion so I cant say your wrong.....

masterg3526d ago

Of course a price-cut will matter.

We all saw how much it did when they lowered it from $500 to $400.
The effect from $400 to $300 will be much greater.

Sure MS can cut the Xbox again, but every cut brings them closer to their doom. Meaning that both the PS3 and the 360 will eventually end up around $120-$150 price tag. When they both hit that (the 360 will probably hit it a year earlier than the PS3) the war will truly be on. I'm guessing this this will happen 3 years from now.

+ Show (26) more repliesLast reply 3526d ago
Lucreto3527d ago (Edited 3527d ago )

First we see articles saying the PS3 needs a price cut. Now with a rumors of one we are getting articles saying it will change nothing.

Off topic when did the 360 get the price cut? Was it last October or November?

pwnsause3527d ago

just part of the "PS3 is dead" assortment of articles.

StoneySweatLeafs3527d ago

I think the writer is saying its more because most consumers are not educated in gaming. I don't think they are questioning the value argument, just saying that consumers don't know that the PS3 is a better value than the $199 360.

Lucreto3527d ago (Edited 3527d ago )

Hope the price cut it true so we can see a change to 360 is doomed for a while which will happen but I won't get any jollies from it. The 360 fanboys have been on the attack lately and it is will be interesting to see them on the defensive for a change.

@StoneySweatLeafs - If they advertise to the extent of MS with there price cut it will be interesting. I want them to advertise the hell out of its strongest asset the Blu-ray player and they the other brands to try and get blu-ray more mainstream.

PirateThom3527d ago (Edited 3527d ago )

The PS3 has always been the most expensive console, it's not a new thing that just happened at one point... however, every time it saw a price drop in the past, there was a noticable increase in sales.

Hell, even before the 360's price drop, the PS3 could still outsell it. What does that say?

frayer3527d ago (Edited 3527d ago )

It's all about brand appeal. I'm sure the 150+mil PS2 users still know what a PlayStation is. The PlayStation brand is a lot more powerful and holds a lot more weight than the Xbox brand does. He says that the PS3 only appeals to an older demographic... hmm. I wonder why...? can't think of any relevant reason here... hmm?

The PS3 at $299.99 opens up a lot of new potential consumers. Blu-Ray consumers, hardcore gamers, and casual gamers. There also won't be such a disparity between the 360 and PS3's price point. As, a $299.99 PS3 is a better value than a wii or 360.

kwicksandz3527d ago

Id say it says the ps3 is still overpriced?

+ Show (3) more repliesLast reply 3527d ago
cliffbo3527d ago

lol... watch and learn.

cloud 2793527d ago

First of all if the price cut of the PS3 would still make it more expensive then why did many media and publishers request for one? 2. X360 got a price cut last year and look how many sales did it receive. PS3 price cut will get more people to buy PS3, not saying the sales would skyrocket, but will give it a little boost.

s8anicslayer3527d ago

your right cloud, the PS3 was out selling the 360 consistantly until the 360 dropped it's price, when the PS3 becomes 100$ lesyou will see a dramatic movement on PS3 sales worldwide!

Sayai jin3526d ago

Of course a PS3 price cut will help sells. Its that simple. What people are forgetting is that MS and Nintendo can follow suit as well and keep the difference pretty much where it is now. Being in the lead and having your console cost less to produce kind of puts one in the driver's seat. The same strategy worked for Sony the last 2 generations and look where it got them, #1. Nintendo and MS are in that position for the most part.

Price cuts all around.

t-dizzle3526d ago

But what people seem to forget is that many people buy their consoles based on what their peers have. I bought my 360 after about 8 of my close friends picked one up. I love it, love the games, and am content with it. For that reason, I encourage my friends to pick up a 360 so we can game together online, etc. Word of mouth is the big seller. If all of your friends have a PS3, then it makes sense to get a PS3. Right now, I have about 2 people who I would seriously play with over PSN, and both play on Live more actively, so until it is incredibly economical for me to do so, I won't be picking up a PS3.

GarandShooter3527d ago

It's an opinion piece and unfortunately opinion is all there is, no facts to support it.

From the article:
'Sure the PS3's cheapest model is a better value than the Xbox 360's basic model. But to most consumers this is unknown.'

To state 'most consumers' is selling a lot of people short, and from where is this data obtained?

Also from the article:
'Finally the PS3's target demographic is an older audience. Which is shrinking year by year. The target demographic for the Wii and 360 is younger and continues to grow larger each year.'

At least in the USA this would seem to be the opposite of what is actually happening, as the older population is growing, hence the Social Security concerns. I'd like to see evidence to support this as well.

I do somewhat agree with the final paragraph, that there is no 'doom and gloom' for Sony. They don't have to outsell both competitors to be successful. It's also too early in the game, anything yet may happen.

The_Faceless3527d ago (Edited 3527d ago ) ran a story based on NPD results last week saying that the wii and 360 lead PS3 in online. The article also spoke of a decrease for Sony's main audience 17-25. and saw decreases in their younger audience. 360 and wii had increases in both.

GarandShooter3527d ago

Thanks for the link. It shows an increase of the 13-17 year old demographic of 5%.

'Approximately 22 percent of online gamers are aged 13 to 17 this year as opposed to that age bracket making up 17 percent of the group in 2008, according to NPD.'

However it's unclear how much is due to new gamers, gamers turning 18 and falling outside that demographic which would lower the figure, 12 year old gamers turning 13 and becoming part of that demographic or loss of older gamers.

It also shows the online gaming market to only be 1/4 of the total gaming market. From this information it's also impossible to tell how much has changed from consoles, portables, and possibly people who own both. Someone owning both types of devices would contribute to statistical changes to both, yet still be one person.

'Online gaming for consoles and portable devices "enjoyed a statistically significant" increase from 19 percent of the overall videogame market early last year to 25 percent in early 2009, NPD concluded.'

It's also unclear what caused this increase. Are they new gamers going online, or former 'offline only' gamers that have taken to online gaming. He may very well be correct, however I still feel there is insufficient data shown to support the statement the author made in the article.

morganfell3527d ago (Edited 3527d ago )

Pwned. Bubbles to GarandShooter