PS3 now 70% cheaper to make say Sony

C

Creepingdeath1977

2[H]4U
Joined
Feb 23, 2006
Messages
2,135
I wonder if this more or less guarantee's a price drop and back up the slim version story's.


Taken from Eurogamer:

The manufacturing costs of PlayStation 3 have dropped by 70 per cent, according to Sony CEO Nobuyuki Oneda.

He was speaking during a conference call, as reported by TVG.

"The cost reduction since we introduced the PS3 is very substantial and this is on schedule," Oneda told investors.

"We don't disclose how much of the PlayStation 3, specifically the cost deduction, was achieved during the past two years. But that is on schedule."

When pressed further on how much the cost has come down Oneda replied, "About 70 per cent, roughly speaking."

Sony's never said exactly how much it costs to make a PS3. However, back when the console launched estimates put the price of manufacturing each machine at $800 / £485. In January last year, reports indicated the cost had fallen by 50 per cent to reach $400 / £243.

GamesIndustry.biz's own Carol Vorderman calculates that a further 70 per cent drop would put the current cost at $240 / £146 per unit.

Could that mean a price cut is on the way? Or perhaps they could start giving them away for free?
 
It could of course go two ways: 1) they sit on the current price to try to make some profit or 2) they drop the price to try to make some sales. That's a tough one in my opinion but I would probably go for sales.
 
If history serves Sony will not reduce the price of the slim at first. They didn't do it with PS1 or PS2 when their respective slims were released. Only after the market went through all of the fat ones did they drop the price (a year after release). The only difference this time is that Sony is bleeding money, and not in first place in the industry, so that might prompt them to reduce the price sooner than that, IMO.
 
Dermac said:
If history serves Sony will not reduce the price of the slim at first. They didn't do it with PS1 or PS2 when their respective slims were released. Only after the market went through all of the fat ones did they drop the price (a year after release). The only difference this time is that Sony is bleeding money, and not in first place in the industry, so that might prompt them to reduce the price sooner than that, IMO.
Click to expand...

I agree, I think the economy and Sony's money situation right now will be the biggest factor.
 
Given when they did with the psp go (less money to make, selling for more), nobody should be surprised if the slim even costs more. I'm not saying I think it will happen, but I wouldn't be shocked if it ended up that way.
 
Dermac said:
If history serves Sony will not reduce the price of the slim at first. They didn't do it with PS1 or PS2 when their respective slims were released. Only after the market went through all of the fat ones did they drop the price (a year after release). The only difference this time is that Sony is bleeding money, and not in first place in the industry, so that might prompt them to reduce the price sooner than that, IMO.
Click to expand...

Well, Sony in general might not be doing so hot but their Entertainment/games division is okay. Their NET profit is down as is everyone's (Nintendo most drastically) from last year, however their overhead is far lower than before. I mean if they're making consoles for $240 approximately and selling the cheapest for $400 retail, and all software/accessories are always sold at profit, their games division really shouldn't be losing anything unless they're spending really inefficiently on advertisement and development (and it'd have to be Xbox1 level stupidly inefficient).
 
Technoob said:
Given when they did with the psp go (less money to make, selling for more), nobody should be surprised if the slim even costs more. I'm not saying I think it will happen, but I wouldn't be shocked if it ended up that way.
Click to expand...
^^ Agreed. You may see some motivation by sony to offload some of the PS3 consoles prior to release, example were starting to see new bundles at best buy, to try and purge inventory. Upon Slim release I expect them to be released for => current price, with the older models getting a price reduction. When sales cool down, and the older model inventory depleated, then they may consider a price reduction.
The wii made a killing this generation, and I think it will be harder for Sony and Microsoft to penetrate this same market regardless of price and features, especially in this economic climate. Many families would rather put down some money on some shovelware titles on the wii to keep the kids occupied vs buying another console.
The same problem Sony and Microsoft have now will also occur to the nintendo replacement for the wii. You will have the active users still go out and buy it, but for those people that did not care about graphics and passed over the PS3 and Xbox in the first place, it will make it that much harder to sell them on the next one.
 
Technoob said:
Given when they did with the psp go (less money to make, selling for more), nobody should be surprised if the slim even costs more. I'm not saying I think it will happen, but I wouldn't be shocked if it ended up that way.
Click to expand...

If the PS3 Slim costs more than $400, everyone should be surprised and shocked.

Even if you qualify your statement by saying you don't think it will happen, to suggest the real possibility of it happening and that nobody should be surprised if it does happen, is ridiculous.

Put down the crack pipe. :)
 
If it cost Sony $240 to build a PS3 and they are going to release the Slim, which we know is even further cost savings(maybe squeeze another $20-40 out of the cost), Sony could sell it for $299 and probably make close to $100 per unit. That's not bad at all, considering sales will likely skyrocket. This 70% drop could also be the cost to produce the Slim, which could of slipped out if that is what was on this guys mind at the time.
 
Stereophile said:
If the PS3 Slim costs more than $400, everyone should be surprised and shocked.

Even if you qualify your statement by saying you don't think it will happen, to suggest the real possibility of it happening and that nobody should be surprised if it does happen, is ridiculous.

Put down the crack pipe. :)
Click to expand...

I guess sony's on crack for releasing the psp go then? Costs less to produce, retails for more money. Since you're obviously a sony shareholder (your blind corporate loyalty would make no sense otherwise) you ought to get on them about their odd decisions.
 
The slim should be cheaper to manufacture, but that doesn't account for development cost and retooling the production lines need to go through. It probably won't be cheaper until they mass produce a few million of them. Companies reduce cost so they can increase their own margins, not so you can save. They only drop the price if they have to (influence sales). It wouldn't be crazy if the new PS3 slim retailed for more than current models. Its sleeker and could be considered a premium product, but given the current economy, I doubt it would be marketed that way.
 
Who cares if the PS3 is cheaper to make for Sony. Unless those savings get passed on to the customer, I don't care if the PS3 is 100% cheaper for Sony to make.
 
Man, idk about you guys but the $400 i paid seemed like a damn good deal even in today's economy. Blu ray player plus gaming machine that streams videos for that price is pretty much unbeatable. But then again when everyone is used to $200 game systems its pretty damn expensive.
 
Technoob said:
I guess sony's on crack for releasing the psp go then? Costs less to produce, retails for more money.
Click to expand...

The PSP Go's situation is not relevent to the PS3. Entirely different market, with different price setting forces.

To believe Sony might price the Slim above $400 is ridiculous on its face.
 
Vision said:
sooo....do we have an ETA on the slim release?? lol
Click to expand...

My guess is announced in September. Available in October ?

EXCLUSIVE: In a desperate move to shift stock Sony is set to slash the price of Sony Bravia TV’s, Blu ray players and their Sony Playstation consoles according to a senior executive inside a major retail partner of Sony. The move could spark a retail war said one observer.
Click to expand...

http://www.smarthouse.com.au/TVs_And_Large_Display/Industry/T9R5R7S5
 
Vision said:
sooo....do we have an ETA on the slim release?? lol
Click to expand...

Strong rumours are that it will be announced at Sony's Gamescom press conference held in Cologne on August 18, then released on 2nd September at 299 Euros, what that means in GBP and USD I have no idea :D Probably a straight $299 and I'd guess £250.
 
lol about $500 USD which is kind of retarded if its the base price. Keeping it the same I get it but raising the price now that might just piss off me off.
 
The current exchange rate is about $308, not $240. Assuming the original price is 98.000 yen, taking 70% from it.
 
So, no price cuts yet they've gotten the build cost down by 70%? Is Sony trying to piss gamers off or something?
 
Technoob said:
I guess sony's on crack for releasing the psp go then? Costs less to produce, retails for more money. Since you're obviously a sony shareholder (your blind corporate loyalty would make no sense otherwise) you ought to get on them about their odd decisions.
Click to expand...

Do you realize WHY it costs more money? Because you no longer HAVE to buy a memory stick with it. 16gb Memory Sticks (which is now built-in) go for AT LEAST $70.
How much is a PSP2000/3000, again?
$170 for the base PSP experience
~$70 for the built-in storage you get
Do the math and tell me if it's still overpriced.

Take your anti-Sony agenda elsewhere. I'm far from a fanboy and am not here to play Sony Defense Force, but when people make stupid statements about the person they're arguing with "being a Sony Shareholder" (and over logically flawed arguments), it's quite obvious who the bullshit is spewing from.
Did the DSi sell for less? No.
Are you bitching about that as well? Surprisingly (cough), no.
 
Last edited:
The18thLetter said:
Do you realize WHY it costs more money? Because you no longer HAVE to buy a memory stick with it. 16gb Memory Sticks (which is now built-in) go for AT LEAST $70.
How much is a PSP2000/3000, again?
$170 for the base PSP experience
~$70 for the built-in storage you get
Do the math and tell me if it's still overpriced.

Take your anti-Sony agenda elsewhere. I'm far from a fanboy and am not here to play Sony Defense Force, but when people make stupid statements about the person they're arguing with "being a Sony Shareholder" it's quite obvious who the bullshit is spewing from.
Click to expand...
I wouldn't call that 16GB of storage an extra, like you are saying in your example. It's required for the operation of the system. You're not going to be using anywhere near that 16GB for saves/extra's, like you would the memory stick. After a few games are installed you'll quickly be rushing to the store to increase your storage, so you're right back to where you started.

Anyways, Sony said that the system is priced high because it's being considered a premium item. You pay more for what's new and fancy.

Speaking with MCV, the new Sony Europe head man said "When you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account."

In other words, the PSPgo isn't $249 because Sony broke the bank researching it. It's not $249 because it uses radical new technology, or because it has to make up for the fact people aren't buying many PSP games.

It's $249 because it's new, and Sony knows (or at least believes) that the kind of people who will buy something when it's new will pay more for it than they probably should.
Click to expand...

It's purposely being overpriced.
 
bigdogchris said:
I wouldn't call that 16GB of storage an extra, like you are saying in your example. It's required for the operation of the system. You're not going to be using anywhere near that 16GB for saves/extra's, like you would the memory stick. After a few games are installed you'll quickly be rushing to the store to increase your storage, so you're right back to where you started.

Anyways, Sony said that the system is priced high because it's being considered a premium item or something like that. You pay more for what's new and fancy.
Click to expand...
Is that a fact, that the PSPgo is going to be taking up some space on that built-in 16gb, though?
As far as I know, the current PSP's have a built-in cache of separate memory for the OS and whatnot. I don't see why they would change that now, just because they have some extra space to use in the machine now.
 
The18thLetter said:
Is that a fact, that the PSPgo is going to be taking up some space on that built-in 16gb, though?
As far as I know, the current PSP's have a built-in cache of separate memory for the OS and whatnot. I don't see why they would change that now, just because they have some extra space to use in the machine now.
Click to expand...
Well, the whole point of the system is that you are downloading and installing games to the system, rather than using UMD. A 16GB stick in a normal PSP is just used for what, game saves and media? Those PSP games will gobble up that embedded 16GB. Plus use it for games saves and any other media you want.
 
look sony have said themselves (i think) the psp go is priced high as initially people like me dont even think about the money side and just buy it.
Look at other sony products the x series walkman, the vaio P, they were priced dam high upon release. Vaio P was £850 then a few months later its £650 with cashback. Xseries 1050 walkman £220 on release, 2 weeks later its £179!! Few sony products disobey this rule and the ps3 is one of them mainly as sony made a loss on each unit for 2 years+ or whatever it is.
You only have to look at expansys.com to see what people buy mobile phones for just to get them first.

Now the company we should be moaning at is Nintendo with the Wii, as we know they have always been making profit on each unit from day 1 and most probably making 50%+ more now that the console is a few years old and as it only plays games for its price and the amount people pay for wii addons/boards etc is ridiculous. Yet no one complains about a company that could easily afford to drop the price. But then again they fucked up with the last few gen of console sales so....
I think most on this forum moan about ps3 price for the sake of it, even if they dropped it £100 people would still moan as they have no clue about business/forecasts etc
 
I might pick up one when it hits $200 new. By then there should be a big/good/cheap game library.
 
Hey SONY listen !!!!!!!!!!!!!!!!

$199 !!!!!!!!!!!!!!!

Sell a metric shitload !!!!!!!!!!!
 
I also do not care what Sony's costs are. I'll buy a PS3 when they are $199. For those that don't think that will happen, remember the price of the PS2 upon release and what the price is now...
 
Sure it will happen, in a long, long time. The PS2 wasnt $600 upon release, and its been almost 10 years ago. Feel free to wait... Ill be playing great games until then.
 
As opposed to people who don't buy the PS3? They'll be playing sucky games until then?:rolleyes:
 
Sony must have some sort of master plan that nobody can figure out,
or the pricing guy is on vacation.

70% less, that's a good reason Sony, you can lower your prices now.
even a little, test the waters, see what happens.

I personally am not a guy that thinks twice, if i want it, i buy it, im not rich (below average), i just dont have any habits/hobbies to support (besides technology of course).
i got the 40GB and upgraded to a 320GB HD later.
I never though it was a big rip off, especially since blu-ray players at the time were pretty much the same price as the ps3, i was getting double what i paid for.

but now is the time to lower prices, i know allot of people that want to buy a ps3, but just cant justify the price.
 
You must log in or register to reply here.
Back
Top