No PS3 Price Drop?

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Last week we posted a news item that said Sony is looking at an aggressive cost reduction strategy. Most people took that as “price cut”. Unfortunately, after this statement made by Sony’s Phil Harrison, it doesn’t seem like a price cut is coming any time soon. The fact is, Sony is losing over $300 per console, initial cost reduction will most likely be used to bring that number down.

Well, do you know what he said was, cost reduction, not price drop, and there's a big difference between cost reduction and price drop. So, that I believe is where the confusion came from. Obviously, we are investing our money in making PlayStation 3s cheaper to manufacture -- that's part of our business plan.
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I wonder if their business plan also includes running the Playstation series into the ground.
 
"Oh you thought we meant price drops for the consumer? lol, lord no! We wouldn't do something silly like that! haha. Not with all PS3's being sold out everywhere. And the wii being only an impulse buy."
 
Sony is painted into a corner right now, a Blu-ray corner.

Losing $300 per console isn't fun...lowering the price only increases this margin..BUT...a console sitting collecting dust is a complete loss, so it is a delicate balancing act.

If they could sell a non-BR edition of the PS3 at the same price as the 360...it'd fly off the shelves (comparatively). But, since all PS3 games are made on Blu-ray...that isn't an option. Adding to the uncertainty, if the Blu-ray fails as a format, PS3 owners are stuck with it and the associated cost. If HD-DVD fails...Microsoft simply quits selling the add-on drive...not the whole console.
 
Steve said:
If they could sell a non-BR edition of the PS3 at the same price as the 360...it'd fly off the shelves (comparatively). But, since all PS3 games are made on Blu-ray...that isn't an option. Adding to the uncertainty, if the Blu-ray fails as a format, PS3 owners are stuck with it and the associated cost. If HD-DVD fails...Microsoft simply quits selling the add-on drive...not the whole console.
Click to expand...

I think that pretty much sums it all up right there.
 
Steve said:
If HD-DVD fails...Microsoft simply quits selling the add-on drive...not the whole console.
Click to expand...

In a past interview MS also said they haven't ruled out having a Blu-ray add-on if HD-DVD losses the format war, they are free to release it as another add-on at a later date.
 
Wonder how long it will take before Sony realizes that they are losing the console war or their price is just too high for most people to afford.
 
"Supply and demand? Don't you know who the hell we are? We're SONY, dammit! WE make the laws around here!"

Oh, Sony. When will you ever learn?
 
I don't see what's wrong with a company trying to lower their manufacturing cost, yeah right now that doesn't mean price drop, but yah know maybe eventually it will. I think it's the first "logical" thing they've done in a while. Now if sony could keep their executives from saying something retarded for a week straight.
 
I think they mean they are going to leave out some parts and, charge the customer for the needed parts. At a high cost of course. Not putting the parts in makes for good cost cutting.:D
 
Price cuts are strategic moves and they are not something you announce until the last minute. Theres 2 reasons not to announce it, 1 is that you dont want people to stop buying and wait for the price drop, and 2 you dont want your competitors to do the same before you.

They ALWAYS say they arent going to cut prices even if there are plans. It would be really stupid if they announced it.
 
Allow me to outline how this went:

Sony to PS3 component manufacturers - "Hey guys, wanna sell us the parts any cheaper?"

PS3 component manufacturers to Sony - "Fuck off."

Sony to customers - "It isn't in our business plan to lower the retail price of the at this point in time."
 
Lazybones said:
In a past interview MS also said they haven't ruled out having a Blu-ray add-on if HD-DVD losses the format war, they are free to release it as another add-on at a later date.
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What's even funnier is that it probably wouldn't even take much more work - the codecs and such are pretty similar. If it ever happens, I'd expect a combo Blu-Ray/HD-DVD drive - they don't want to screw their existing partners.

Sony is in a bind, no doubt about it. They desperately need to lower prices, but they can't do so until their own costs come down. Now, this can be faster than you'd expect (the 360 apparently did it pretty quick), but they don't have the luxury of time - both their competitors are beating on them pretty badly at the moment.
 
Sony's arrogance as a corporation is going to be their downfall, and I think we are beginning to see the end of them.

If they weren't so pompous, and their leadership so misguided, I'd feel sorry for them. As it is, though, it's kind of funny to watch as Sony continues to screw itself over repeatedly. The PS3 is just another example; every one of their executives needs to adopt a "keep our heads down and our mouths shut" attitude until they dig their way out of the mess of a spectacle they have turned the company into.

Humility and an actual attempt at good customer service might actually turn them around; as it is, every time one of their leaders speaks more straws get piled on the proverbial camel's back. They need to wake the hell up or shut the hell down.
 
Steve said:
If they could sell a non-BR edition of the PS3 at the same price as the 360...it'd fly off the shelves (comparatively). But, since all PS3 games are made on Blu-ray...that isn't an option. Adding to the uncertainty, if the Blu-ray fails as a format, PS3 owners are stuck with it and the associated cost. If HD-DVD fails...Microsoft simply quits selling the add-on drive...not the whole console.
Click to expand...

Yea thats pretty much it.

The xbox 360 is expensive. For me it pushed what I would pay for a game system. The PS3 is just way too much money. Maybe when it has a good selection of games and has come down in price some I'll get one.

As far as the blueray player I could care less. Personaly untill they come out with a nice dual format player I'm staying out of the format war.
 
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