Despite of the fact that Sony Computer Entertainment Inc. yet has to catch up with Microsoft Xbox 360 and Nintendo Wii video game consoles in terms of unit sales, chief financial officer of Sony Corp. said that the company had no plans to reduce the pricing of the latest game machine, but wants to concentrate on profitability of its business.
“This year, our strategy is not to sell more quantity for PS3 but to concentrate on profitability. Our plan is not to reduce the price,” said chief financial officer of Sony Corp Nobuyuki Oneda, reports AFP news-agency.
Sony hardly needs to drop the price on its PlayStation 3 right now to compete against Microsoft Corp.’s Xbox 360 as the console from the software giant is not considerably more affordable than comparable PS3. Still, there is Nintendo Wii, which retails for $249 in the USA, a much lower price than that of Sony PlayStation 3 40GB, which is sold for $399.
Earlier chief executive of Sony – Howard Stringer – said that he did not consider Nintendo Wii, which has outsold Sony PlayStation 3 by two times, as a competitor for the PS3 due to much lower performance, image quality and inability to play Blu-ray and DVD movies.
Sony has invested billions of dollars into development, promotion and subsidies into PlayStation 3 game console, which is why it is logical for the Japanese conglomerate to concentrate on profitability now. However, with relatively small install base of PS3 accompanied by difficulties to create games for the platform, some developers may decide to reduce the effort they put into making games for Sony PlayStation 3.
Sony PlayStation 3 console is based on the Cell processor developed by IBM, Sony and Toshiba, the RSX graphics chip by Nvidia Corp., wireless network and Bluetooth connectivity and is equipped with Blu-ray optical disk drive. There are several versions of the consoles available around the world with different hard disk drives and variable compatibility with PlayStation 1/2 games.
Comments currently:
6
Discussion started: 07/18/08 03:53:17 PM
Latest comment: 07/20/08 09:59:57 PM
[1-6]
1.
Think your the only one writing about the PS3 that did some homework. No price cuts!
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Posted by: Bravo
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Date: 07/18/08 03:53:17 PM]
2.
Then what about that earlier articel by Xbitlabs that indicated Sony was dropping the price of their console by a hundred bucks?
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Posted by: Surya
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Date: 07/19/08 09:13:34 AM]
3.
Looking at the date of the article it should carry the most recent news of the date posted. Technically the PS3 had a $100 price cut to the machine espcially considering the '80gb' version was still $499 before the cut. The new 80gb version will be $399 and will be positioned between Xbox's Pro 60gb ($349.99) and Xbox's Elite ($449.99)
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Posted by: YukarioMashimato
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Date: 07/19/08 03:33:37 PM]
4.
So you are saying a 'new' 80 gb model is going to be launched in Fall? Would that be in line with the recent optical shrink for the components inside the console for less heat, more power efficiency and also cheaper to manufacture? Are those components going to be put inside the 'new' 80 gb model coming this fall?
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Posted by: Surya
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Date: 07/20/08 08:14:20 AM]
5.
I thought that it was a fact that profit in the consoles business comes from a large install base that buys a lot of games, and not the price of the units themselves?! Or does it turn out that PS3 owners aren't buying that many titles, so it doesn't pay to cut the price of the machine in order to sell more games?
Thinking along these lines, adding BR capability may not have been the wisest idea. It did make the console more appealing, but it also made the manufacturing price higher, yet later, when people buy a BR film, it doesn't bring Sony profit like a game would.
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Posted by: Ivan
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Date: 07/20/08 02:24:50 PM]
6.
Didn't you hear the news? Sony has adopted a new business plan for the PS3.
This plan was first used by Sega to market a console called the Saturn. Sony found it to be so successful that they thought they'd try it too.
1) Design a console that is extremely difficult and complex to write game software for. ( cell processor ) Make sure its especially difficult for 3rd party developers.
2) Release or launch your new console at such a high price that all your competitors can easily under cut your price, and price yourself out of the market completely.
3) Make sure your console is built with very expensive components that cannot be reduced in cost very easily or quickly. ( Blu-Ray, cell processor )
Sony went even further to " one up " Sega's business plan.
4) Make promises you can't keep:
** full backwards compatibility
** Home
** six-axis
** more ports
** and better games than the competition.
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Posted by: EndPCNoise
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Date: 07/20/08 09:59:57 PM]
[1-6]
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