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Who is Sony Targeting With the Slim PS3?

Don at Gaming Vice writes:

"If you haven't heard, Sony has unveiled a new price point for the PS3 being $299 along with a "slim" design which isn't quite like the transformation between the PS2 launch model and the PS2 slim. However, looking back you will notice that the PS2 at launch was never as massive as the PS3 was, nor was it the powerhouse that it currently is for that generation.

Should we expect another "slimmer" PS3 down the road? The answer is of course, but the real question is; "Who is Sony targeting?"."

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madpuppy3768d ago

That about sums it up. :)

nix3768d ago

as Sony might be trying to attract everyone with the price-cut, it is mostly going to attract gamers with only one console (360/Wii). for them, the price has been too high to go for a new console. and if they are learned gamers, they already know about great PS3 exclusives that has been released and are about to come. 360 gamers will jump for it unless they are fanboys. q:

You Already Know3768d ago

yeah, that was jack tretton and it was mentioned in the article....

good stuff

3768d ago
Kleptic3768d ago

yeah the media is a little 'confused' by this...because it basically proves that the only thing holding the PS3 back was the price...always...

I have a pretty strong feeling that you won't be able to find the PS3 regularly for a while...not like we were used to anyway...millions of people where waiting for this cut...

Sony...get GT5 out the door this year...announce it at TGS...and then don't look back...and you will be right back where you belong...

duplissi3767d ago

@kleptic

i disagree, sony or any company for that matter should never be in the position they were in with the ps1/2 they got arrogant and look what happened to the begining of the ps3s life. same thing happened to nintendo in the 90s and look what happened to them.

personally i cant wait for nintendo to fall again- i hate this casual crap nintendo needs to come back to its roots

AKNAA3767d ago (Edited 3767d ago )

I didn't believe the articles about Ps3's on amazon selling like crazy until i actually checked it out and its at the #1 spot! damn, after only one day lol!

anyways, what annoys me about certain people is that at first they complain about no games on the ps3, then the price and now that its all been dealt with, I'm seeing how some people are like "is it backwards compatible?! if not, its a no buy for me still?!"
..... W-T-F?! seriously?! what I see is that these fanbo.. err.. people had no intentions on purchasing a PS3 in the first place!... So they should just stop with the BC excuse bullsh1t already because no one in their right mind is going to pay $300 for a system, just to play old outdated games when you can just pick up a ps2 for like $50 to play them!!!

Btw, I think MS is going to be in serious trouble wether or not they drop the price on the 360...

Rhythmattic3767d ago (Edited 3767d ago )

duplissi

and MS arent arrogant regarding their OS market Share?

ThanatosDMC3767d ago (Edited 3767d ago )

Well, im guessing it's not animals....

Anyway, i agree. I hate all those casual games that popped up out of nowhere. It screwed up great games like Dead Space. They could have had Dead Space 2 by now... damn Wii.

But im not against Harvest Moon... i recently just got addicted to that game on my PSP. I got 43% of my farm cleared and im growing pineapples for the summer and im intending to marry Karen, an alcoholic hotty, unless Rick gets her... wait... y'all are looking me weird. I'll stop.

Guido3767d ago

Everybody. Only an idiot would even ask this question. Slimmer = Cheaper. For Sony it always has. So tot hat I say cheaper is aimed at everybody. It's so simple.

You Already Know3767d ago

looks like this is another case where people didn't read the article....

as someone here said before "only on n4g"

Rhythmattic3767d ago

Agreed Guido.

"the killer pimp"

3767d ago
duplissi3767d ago

@Rhythmattic

i dont disagree with you there, but based on all the windows 7 previews/reviews they might have smartened up

Rhythmattic3767d ago (Edited 3767d ago )

duplissi

A mature response. Thank You.

AFWW

Microsoft , With its Micro-isms, placed in Business and the peoples (Me & You) via there OS's, MS haven't feared themselves, but been feared of.

MS control an enormous portion of our data. And that data is not an open standard.

No one likes a monopoly. But Free enterprise makes the world go around...

As for gaming, I hope all platforms continue their success... Yep, even Nintendo... DS's rock..

There has to be a Balance, an equilibrium... 360.PS3,Wii..... MS,Apple,Linux....

Its the only way it keeps it clean....

Microsoft hasn't had its fall from grace, YET .(Looking at you Google)

Enough of my crap.... But hopefully you understand the concept.

Arrogance is what you make of it. Sony has it, Apple has it, MS has it, even Ferrari has it.

duplissi3767d ago

@Rhythmattic

i agree with what you are saying, which is why i dont believe sony or any company should have the throne. i like to pride myself of being level headed and far from a fanyboy, even though i prefer my ps3

i have a ps3
i have a xbox 360
i used to have a wii

+ Show (13) more repliesLast reply 3767d ago
blu3print3768d ago

articles getting out of hand.... stupse

Theoneneo813768d ago

welcome to n4g were its cool to have ps3 bashing articles 5 times a day and oh yeah some news on the side.

You Already Know3768d ago

I don't think there have been any sony bashing articles today...

rockleex3767d ago (Edited 3767d ago )

Get it? I played on his name. :P

You Already Know3767d ago

rockleex.....you're a we todd...

get it....your name is retarded....so you're a retard, but it's how a retard would say it...

mine was more cleverer...

+ Show (1) more replyLast reply 3767d ago
Lookbehind3768d ago

Ps3 slim +price cut now "stfu".:)

commodore643767d ago (Edited 3767d ago )

indeed you are correct sir.

It seems so illogical, though.
I'll explain why, using the industry facts, as published by Sony.

Even at $399, the ps3 division was turning in sizeable losses, like in the most recent financial reports:
http://www.gamegrep.com/new...

No one can really deny the veracity of Sony's own numbers in this case, clearly showing the $399 ps3 sku making losses overall!
Of course, what must also be remembered is that these losses were realised despite the 70% cost reduction on ps3 hardware.

These proven ps3 losses, even at $399, are highly likely to continue unabated now, with the confirmed $100 price cut.

I highly doubt that Sony was able to:
- cost reduce the ps3 by 70%, yet still post ps3 losses, then
- drop the price by $100 and release the slim and,
- like magic, start making profits.

That proposition, when one thinks about it, is ludicrous.

In my humble opinion, Sony is taking a MASSIVE gamble.
It seems they are attempting to convert these continued hardware losses into break-even by gambling on increased market-share and software sales to cover the current and past investment losses!

In effect, Sony need MAJOR gains in revenue .... and FAST!

I really hope Sony is going about this the right way.
Because if they get this wrong....

*shudders*

LinuxGuru3767d ago (Edited 3767d ago )

Since you have absolutely no proof of anything AGAINST a 70% reduction in manufacturing costs, your paragraphs are pure conjecture and FUD.

Jdoki3767d ago

A gamble, Commodore64? I don't think so (in my humble opinion).

Sony announced they had cut the PS3 Fat's manufacturing costs by 70%. We don't know how much less the PS3 Slim costs them to make, but it's not a huge stretch to consider that it costs even less than the PS3 Fat.

It appears to all intents and purposes that the PS3's lifetime numbers roughly match the 360's over the same period. Considering the higher price point of the PS3 that's quite impressive.

Even if Sony are breaking even or making a small loss on each PS3 it's entirely likely that they will see a large spike in sales between now and Jan/Feb, and for 2010 it should track higher monthly figures than we have seen in 2009.

Considering most money is made off of licensing and peripherals rather than hardware, and Sony has it's fingers in many pies, any increase in PS3 sales is going to help generate revenue. Remember they don't just make money from software licensing, but also Blu-Ray movies and digital downloads. Throw in the motion controls next year and I think things are looking very good for Sony.

ultimolu3767d ago

Commodore...you don't have proof dear. I'm sorry but Sony isn't as doomed as you think they are. They dropped the production costs significantly, which allowed them to come out with a slim and they were able to cut the price.

commodore643767d ago (Edited 3767d ago )

wow.
did any of you even read my post?
Nowhere in my post did i deny that a 70% cost reduction had been made.
My gist was, that DESPITE the 70% cost reduction, the ps3 is still a net loss maker!

FAct is, Sony announced they'd dropped 70% of their production cost BEFORE they released their loss-making earnings report
http://www.gamegrep.com/new...
which, very clearly, shows the $399 ps3 making losses.

Honestly, how can you argue with Sony's OWN financial report, guys?

Logic would dictate that they cannot magically create profits on the ps3 at $299 when they could not make it happen at $399, AFTER a 70% cost reduction to the $399 sku.
It's all in SONY's own report!

ok, ok... you know what?
To be fair, let's wait until the next quarterly profit report from Sony.
If i am right, Sony will post MASSIVE ps3 losses at $299, which will add to the near $4 billion losses already 'invested'.

I am pretty damn sure i am right.
I challenge you guys to send me congratulatory PMs if/when i am proven right.
...after all that would show that you have some character!

I am looking forward to it.
I'll remind you of this post when the time comes, alright?

ultimolu3767d ago

Commodore, Sony isn't as doomed as you think they are. They lost money, but I don't things were as bad as the media perceived.

What the hell does this have to do with the article? Are you this butthurt that they managed to cut the price to $299.99? Or that production costs are down 70%?

What are you trying to prove?

You Already Know3767d ago

the few months that the PS3 sold for $399 after 70% cost reduction weren't enough to offset what they lost prior to that...

they were making a lot of their money back when the PS3 was selling for $399 after the 70% cost reduction...

it's not like they would automatically jump into the positive after this took effect, that's not logical math...

sorceror1713767d ago

@c64: The "70% reduction" wasn't really given a timeframe. They never said exactly when it was reached or at what rate it was reached. It seems likely that manufacturing costs were quite a bit higher until fairly recently, and a recent large reduction wouldn't show up in the financials.

There's also the possibility that Sony's putting spin on things - that the 70% figure applies to the Slim. The wording I've seen reported is just vague enough to make that possible.

In any case, it seems pretty likely that (a) Sony's roughly breaking even on Slim sales, and (b) a larger install base will lead to greater software sales, leading to greater revenue - possibly even "MAJOR gains in revenue - fast!" The holidays are approaching, after all... and the Slim will be in the channel by then.

n4gno3767d ago

Commodore, your analyse don't count blueray profits, copyrights, games, psn games, and undirect profits like television (for better ps3 experience), etc...don't worry for them now (even if the ps3 cost and ms viral marketing, ms media bashing, was hard to fight against in 2006/2007)

commodore643767d ago (Edited 3767d ago )

Once again, you guys are not getting it.

Sony's MOST recent report shows losses on the $399 ps3 and its entire gaming division as well as a massive $390 million loss overall.
Don't argue with me... argue with Sony!

In point of fact, i could not care less if Sony is doing well or if they're doing badly.
My point was that they have taken a massive gamble with this price cut that cannot be recouped unless their revenues take off!

Let's wait for the next financial report...
Please... get those congratulatory Pm's ready...

sorceror1713767d ago

C64, yes, yes, we do get it. But there are a few things you're not getting.

1) The loss for the PS3 is hard to determine because the games division was rolled into another division and teasing out how much loss comes from what parts ain't easy.

2) Recent cost reductions on the PS3 won't necessarily show up even in "Sony's MOST recent report".

3) If the "70% reduction" figure applies to the Slim, then the future looks bright - Sony can break even on the hardware now instead of selling the console as a loss leader. On the other hand, if they'd gotten the old 'fat' PS3 down by 70%, and then the Slim has cost reductions on TOP of that - the future looks EVEN brighter than that. You kinda have to pick one.

All that being said... yes, Sony is doubling down on the PS3. They do need a big boost in console sales, and then lots of people buying PS3 games and Blu-Rays for those consoles. Fortunately, even one day in the console sales figures are looking pretty good. We'll see about the software and movies later on.

Anon19743767d ago

He says the PS3 was sold at a loss, but he has no proof. The division came out at a loss overall but they could be making $200 per PS3, and could have been making that for some time for all we know. No where is that broken down so his trying to claim that the PS3 hardware is still selling at a loss is simply a guess.

Same with the 360. Nowhere have we seen a release from Microsoft saying they make a dime of the 360 hardware and everything regarding the price to manufacture, none of it is from Microsoft, it's all from external firms and they could be way off because they have no way of actually knowing what Microsoft pays for their parts, production, etc. Only Microsoft and their auditors know for sure. What we do know is that in the six months following the 360's price cut, revenue went up but profit for the Entertainment division went down by almost half a billion to the point where they're in the red again. Tell me, how can sales me up for those six months, revenue be up and yet profits evaporate? That sounds like someone taking a loss for hardware. But again, we don't know for sure because there is no breakdown from Microsoft. It's just a guess, just like Commodore's statement.

The difference is when I make a guess, I plainly say "This is my best guess, I really don't know." Commodore always tries to pass his guesses off as fact. Some might call those "lies".

commodore643767d ago (Edited 3767d ago )

*Groans*

So.. uh... the most recent Quarterly report that sony has issued is not proof enough?
http://www.gamegrep.com/new...
http://www.gamegrep.com/sho...
http://www.gamegrep.com/sho...

Sony's ps3 division, last quarter, made a stupendous loss!
The 70% cost reduction was announced BEFORE the report.
Yet still, the report came out and posted a loss.

This cannot be any clearer:
- A quarter is only three months long, no room for magical cost reductions.
- It's from the office of Sony, absolutely accurate.
- It is the most recent data, completely current.

You guys are unbelievable with the denial.

oh, and darkie, if anyone here is telling 'lies' then that's you.
We have already established that.

The list of congratulatory PM's is growing .....
I look forward to it!

Anon19743767d ago

I went through your links and guess what? No where in there does it say the PS3 is being sold at a loss. In any of them.

That was my point. You're simply guessing. Sony doesn't have a "PS3 division" for you to easily target. Just like Microsoft Entertainment, there's a whole lot rolled up in their division. For all you know those losses could be from R&D.

My point stands.

Now say it with me. "I don't know that the PS3 is selling at a loss, I can't prove it's selling at a loss and none of my links contain the information I'm speaking of. I'm really just guessing."

+ Show (11) more repliesLast reply 3767d ago
Poopface the 2nd3768d ago

anyone who doesnt already have one dumbazz blogs.