Top
150°

Perfect time for PS3 price drop

MMGN: The PlayStation 3 has seemingly had the better of the Xbox 360 over the past 12 months, but in terms of sales that hasn’t necessarily been the case. However, with the announcement of a worldwide price drop for the PlayStation 3 at Gamescom yesterday, Sony is gearing up to dominate this holiday season.

Read Full Story >>
ps3.mmgn.com
The story is too old to be commented.
fabod862835d ago

It's always a perfect time for a price drop... :D
Yup, Sony made a smart move doing it before the winter holidays.

gamingdroid2835d ago

It is hard to say if it is a good thing right before holidays. It will definitely boost sale, but result in bigger loss of profit for larger market share. I don't know if that market share is needed for Sony.

If they wanted, should have done it a few months earlier during the slow months to boost sale, but I'm sure the PSN breach put a damper onto that. Another option is in the slower months of February/March of next year.

From the article though, I find this ironic:

"Existing gamers console gamers, however, might be irrelevant to holiday console sales. In the end it will all come down to the uninformed parents buying for their kids, and they care about two things: price and cool secondary features like ***Blu-Ray***. That’s why Sony’s PS3 price drop is so critical."

Anon19742835d ago

The timing is exactly the same as it was in 2009, and that strategy certainly paid off for them then. They were trailing the 360 for the first 6 months of 2009 and ended up beating them by over 2 million in the end. The strategy certainly worked in the past.

And with software and peripheral sales way up and a killer lineup on the way this holiday season, it makes sense that broadening the install base is the way to go.

The PS3 as a platform was profitable well before the PS3 hardware was profitable, as Sony confirmed years ago, so it's fairly obvious that software sales carry some serious weight when a company is willing to sell the hardware for a loss for so long.

And you don't cut the price during slow periods. Slow periods are slow for a reason. You cut prices during peak season, when people are in a buying mood already.

I do agree with the final statement being ironic. If they're uninformed, how do they even know about those cool secondary features? That sounds like informed buyers, not uninformed buyers. And I agree. If I were to get a games console for the kids, why not get one that doubles as a Blu-Ray player, something I could use as well? The price is certainly right.

gamingdroid2835d ago (Edited 2835d ago )

We have to agree to disagree.

I highly doubt any profit from software sales/accessory will trump the half a billion dollar less in upfront profit (and that is a very conservative estimate).

How many accessories and games do you have to buy in order to make up for that lost profit?

Keep in mind that as the user base widens, the attach rate goes down.

Also, it is counter-intuitive to cut prices during peak periods unless the competition is fierce (or have to meet sales goal) and you are in excellent position.

Why?

Because of high demand pushes prices up, not down. While competition pushes it down.... It's capitalism at it's finest.

Skateboard2835d ago (Edited 2835d ago )

They should bundle every Ps3 with Gran Turismo 5.

What is with the disagree's ? I got my Ps2 with Gran Turismo 3.

2835d ago Replies(2)
meetajhu2835d ago

Even at 249 you people wondering is it worth it? Your just fooling your entire life or you have been guided by a xbot.

DA_SHREDDER2835d ago

Now would be perfect for another price drop. $200 bucks is the sweet spot for any console.

Show all comments (12)