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Author Topic: Sony slashes PS3 price by 20%  (Read 845 times)
Ashton
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« on: September 24, 2006, 10:18:41 AM »

...in Japan.

There aren't any plans for a U.S. price cut, but you have to wonder if they'll do it anyway, since Japanese games and systems have been historically more expensive than their western counterparts.
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Ryos
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« Reply #1 on: September 24, 2006, 10:22:34 AM »

Can't say that was terribly unexpected. :P  Sony's going to have to go with a ridiculous loss of money in the hardware to entice people to buy the system over (in the case of the Wii significantly) cheaper alternatives.

I have a vague feeling there will end up being a similar price reduction in the US, even if it's unplanned.
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Professor Gast
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« Reply #2 on: September 24, 2006, 11:25:15 AM »

While I have to admit that a lot of people on the Japanese internet complained about the PlayStation 3's high price, Japan was and is no exception. I would even say, the reaction was more extreme in the US, where people are used to pay 300 bucks for a system. Also given the 360's underperformance in Japan, they are under less pressure in Japan than in the US or Europe. No to mention, that Japanese are used to shell out a lot of money for game-related stuff: Square for instance already charged 8,800 yen for Final Fantasy X five years ago..So to lower the price only in Japan is interesting, or should I say odd. I mean, they won't have near enough units available in Japan until March 2007 to satisfy demand anyways. Judging from their comments the big third party publishers at least seem to be very content with that decision.

As for the price cut's effects, it will definitely lead to a higher demand for the 20GB model. With HDMI in place, the main reason peopled said they would avoid the 20GB model is gone.

On the financial side of things, they will now lose even more money during the current fiscal year. The question is just how much money are they (that is, Sony Computer Entertainment and the entire Sony Group) willing to lose during the current and most likely the next fiscal year. If the price cut helps them to build an installed base of 20 million units by the end of fiscal 2007/2008 fine, but that is probably hard to project. At least production costs should begin to drop next year, as production expands and CELL production migrates from 90nm to 65nm.
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Dice
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« Reply #3 on: September 24, 2006, 03:16:30 PM »

This is getting pretty amusing.  All of these PS3 announcements; do you suppose its because they're worried that the competition may do well this time around??
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Eusis
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« Reply #4 on: September 24, 2006, 03:18:15 PM »

I actually pointed this out in the HDMI thread, but that was only because the news article contained it. :P

Eh. It balances out with their premium unit being an open price.
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