PS3 price cut by 20%, now includes HDMI 1.3

Looks like all the bellyaching over the price of Sony's PlayStation 3 has done some good. Sony exec Ken Kutaragi just sent jaws to the floor over at Tokyo Game Show with an announced price cut of the 20GB PS3 base unit from ¥62,790 to ¥49,980 in Japan. Closer to home, we'd be looking at a move from about $538 to $428 (looking at current exchange rates) representing a drop of some 20% when the PS3 hits later this year, or uh, early next if the cut applies across the board. Not exactly cheap when looking at the Wii or Xbox 360, but that Cell processor, Blu-ray Disc player, and HDMI 1.3 output supporting Deep Color will certainly draw a premium. Yeah, you read that correctly, Ken announced HDMI support too, making the 20GB PS3 one fine Hi-Def movie machine on the cheap. Hoozah!

Update: Price reduction confirmed for Japan only. Waiting on rest-of-world price cuts, if any.

[Thanks, Kherlen and everyone who sent this in]

[Crazy @ Sep 22nd 2006 3:47AM]

now im gonna have to buy one 4sure

[Linkman2004 @ Sep 22nd 2006 3:47AM]

Yeah, if you haven't noticed, no price drop was ever confirmed for America or Europe. So I would hold off on saying such things until their OFFICIAL. I have spoken.

[Emmanuel @ Sep 22nd 2006 5:01AM]

My excuses for not buying this to support my tech addiction are diminishing....

[Vince @ Sep 22nd 2006 4:04AM]

Dave, the Washington Post story just gives the exchange rates. They don't actually say that the price cut was confirmed for the US. In fact, the Post story also adds, "Sony spokeswoman Nanako Kato said there were no plans to lower the price in other markets." This agrees with what was mentioned in the Mainichi, so, I wouldn't expect a sub $500 PS3 just yet.

http://mdn.mainichi-msn.co.jp/national/news/20060922p2a00m0et010000c.html

[Joshua @ Sep 22nd 2006 4:07AM]

Does this mean they haven't produced ANY 20GB models for the soon-to-begin US market? Aren't they already behind manufacturing schedule? It's like a revision before it's being sold...

[Snoogans @ Sep 22nd 2006 4:08AM]

The article in the Washington Post even quotes a spokeswoman saying that "there were no plans to lower the price in other markets." if so, that's lame and i just stick to the Wii

[Thomas Ricker @ Sep 22nd 2006 4:10AM]

I updated the post to be clear that we only have confirmation for a price reduction in japan.

[Shiver @ Sep 22nd 2006 4:17AM]

Since the price of the 360 is much lower in Japan then in Europe and US, and Japanese might go more mad for Wii this might be a very smart thing to do. But the difference between 'basic' and 'premium' is now again very big. So we'll see.....

[Deluxe @ Sep 22nd 2006 4:37AM]

Good ole' Sony, the first good move in a while

[Jon @ Sep 22nd 2006 5:01AM]

Does anyone else feel like they just came up with the idea to add HDMI like last night after hearing the 360 will support 1080p?

Seems very last minute...I wander if this will further slow down manufacturing. Also this just made the more expensive PS3 seem pretty worthless. 360 users know that you can get by just fine with 20 Gigs and wireless is completely unnecessary. In my experience Wireless causes lag and is not desirable for playing online.

They seem to think that HDMI has taken a huge upsurge since E3 thus the reason for the addition of HDMI...or is it that they were just caught making a stupid decision and can't out right fess up to the mess they have created for themselves since E3?

[Didou @ Sep 22nd 2006 5:19AM]

There are also rumors that the PS3 will also offer Genesis & PC Engine games:
http://www.factornews.com/news-18543-TGS_2006_La_conference_Sony_en_live.html?page=1
http://ps3.gx-mod.com/modules/news/article.php?storyid=267
(sorry they're in French)

One has to wonder where Sony gets all those great ideas. :P

[EdZ @ Sep 22nd 2006 5:42AM]

Eurogamer also confirms this.
http://www.eurogamer.net/article.php?article_id=67794

[Greg @ Sep 22nd 2006 5:31AM]

This is looking better and better!! Anyone got news about the rest of the market in Asia? Particullarly Taiwan? When the PS3 will be available?

[Oddmanout @ Sep 22nd 2006 11:15AM]

Pay less and get more. Headline/Mindshare grabbing indeed. And yeah, it's interesting that this news hits after the 360 one-twos with the release of the core system in Japan and the announcement of the HD-DVD add-ons Japanese release in November. It is of course doubtful that they freakin retooled the PS3 to include HDMI based solely on that, but that timing still makes them look like Johnny Come Lately.

Still, as far as counter punches go, considering this in their own back yard it could be a serious blow to the Xbox offensive. I've noticed people have largely stopped debating which machine is out and out more powerful, because by all accounts their graphical power is basically the same. Price has continued to be second only to Game franchises in distinguishing features...and it was the one area in which the 360 had a distinct advantage.

It's getting interesting all right...

[Paul @ Sep 22nd 2006 6:15AM]

Sony has done something right after a long time on this console.

There must be a small chance that the US will get the price cut? Also, maybe not at first, but it could occur after lanch?

Oh, HDMI aswell, NO ONE HAS AN EXCUSE.

M$....I think you've lost.

[dan @ Sep 22nd 2006 8:49PM]

suhweeet. more in my range if this price cut goes to the US.. i can hope.

[Ed Balaban @ Sep 22nd 2006 6:43AM]

I think now will be the best time for everyone to upgrade their TV's!

And as for those that think MS has any chance in this market.. Think again.. Ill probably end up buying at least 3 of PS's in the first year.. "ill be selling them to make profits obviously!"

[Art Vandelay @ Sep 22nd 2006 7:05AM]

I hope you guys are right about SONY. All the recent news lately has really made me reconsidering purchasing it. The expensive price mixed with all the negative press just has me too worried. It might not be worth the risk so i'll probably end up waiting a bit before I invest my money on it.

[Michael @ Sep 22nd 2006 7:07AM]

I think everyone in the US should just not buy one. Then after 3 months Sony will have to lower the price here. I mean who wants to buy a first run unit anyway, they're bound to be ridden with problems.
Doesn't even sound like they have the final design figured out, now it has HDMI, maybe tomorrow it will/won't have somethign else.
I mean are any of the launch title making any of you just have to run out and get one right away?

[Zero @ Sep 22nd 2006 7:42AM]

I can't wait to buy one on launch day!!! I love ps3 and i don't care that it cost 600. Sony always came through for me in the end. And those of you that are critizizing it go look in your room thers bound to be something made by sony there.

[DeShaun @ Sep 22nd 2006 9:56AM]

Yeah, my stereo system is a Sony, and the backlight blacked out in the first year of operation. I have two cybershots, and the first one's shutter locked up on me. My current is fine, though. I like the company, don't get me wrong...but I won't be around for launch.

I don't have an HD setup, nor do I plan to get one by November. Secondly, the Playstation series is notorious for having shoddy first runs. If you've got a PSX sitting on its side somewhere (the first TRUE vertical system, heh) you know what I mean. PS2 had the DVD driver issue, the "you burned a hole in my game" issue, etc. PSP spat out games, analogs fell off, etc. It happens. Perhaps after once price drop, and some EXCLUSIVE games come out, I'll consider it. Right now though? Not at all worth the effort and cost. Besides, the launch titles are looking um...weak. It's right up there with PS2's "awesome" launch of SSX and Fantavision. I mean, most titles will be available elsewhere, or just aren't all that appealing.

I think I'll wait for MGS to make a purchase.

[shirizaki @ Sep 22nd 2006 8:01AM]

Hopefully they announce this price cut for the americas. If they're going to cut the price in Japan to compete with the Wii, they might as well cut the price here to compete with the 360 AND the Wii.


Sony has a big uphill battle now, even with the Japanese price cuts. At least it might go from "wallet breaking" to "slightly affordable".

[JinKazama @ Sep 22nd 2006 8:24AM]

That faint explosion you heard in the background was J Allard's heart exploding.

IF Sony brings this price drop to the US it's game over for Microsoft. Who in their right mind would buy a 20g, DVD based, component out, 360 Premium for $399.00 when they can get a 20g, HD based (Blu-Ray), HDMI out, PS3 for $428.00?

Even if you don't have an HDTV that's a no brainer. Why not spend $30 extra dollars to have a system that can take full advantage of that $1000 TV when you do decide to purchase.

For all the hate we have for Sony right now, Sony didn't get to be Sony by being stupid. I think they planned this the whole time...shock the world at E3 with a ridiculously high price, get the internet buzzing about the PS3, get MS and Nintendo happy, then pull the rug right out from under them after they've showed their hands...GENIUS! Maybe I'm giving them too much credit, but if this price cut is worldwide it is a master stroke.

MS better hope an pray this price drop and HDMI support in the low-end PS3 stays across the pond.

[Mrfreezie @ Sep 22nd 2006 8:26AM]

That's sony for ya, always thinking of Japan over America. We always get shafted by them.

But this is the first good PS3 news in,... well, forever. And this makes the "buy a 360 and a Wii cheaper than one PS3" statement totally unreal now.

I still think, however, that the PS3 will fail. Why? Because Sony is using, like they have in the pass, a propritary format. It's like the UMD movies for the PSP, at first they have some steam, but then it all stops to a screeching halt.

[bl0nde @ Sep 22nd 2006 8:31AM]

"That's sony for ya, always thinking of Japan over America. We always get shafted by them."

Ahem, try moving to Europe.

[Mrfreezie @ Sep 22nd 2006 8:29AM]

Also, I forgot to add, they are copying other companies way too much. To a point where it is almost certain they won't succeed. The controller is from Nintendo, and just about everything else(save bluray) is from Microsoft. "Entitlements"?

[omar @ Sep 22nd 2006 8:35AM]

Was in the Sony Outlet store in Woodbury Commons Outlet mall in Harriman, NY yesterday. The official launch date is Nov 17, 2006. The only differences between teh 60 and the 20 is the HD of course, bluetooth / wireless connectivity (aside from the wireless controllers which are bluetooth for both)... and the HDMI port.... ( I saw the spec sheet)

[Dwaine @ Sep 22nd 2006 8:54AM]

Why is everybody so excited that Japan gets a price cut? It will only make a price cut here less likely and delay any price cut in the future. Use your brains. They have to make the money somewhere.

[shirizaki @ Sep 22nd 2006 9:07AM]

They aren't making ANY money on their consoles. Not even MS. Nintendo will be the first in 10 years that will actually be able to make a profit from their consoles. MS and Sony take losses for every console that walks out of the door for the first 3 years. They always plan on making it up with licensing, acessories, and their first party games. And now they have micro transactions.

If you really want to know where they make their money, it's Japan. They'll buy a new PS3 if they reprint it with Hello Kitty or an obscure anime character or they make it clear. And they'll always buy a new game for full retail if it's remixed. Kind of like how we rebuy Madden with game tweaks and updated rosters.

If the Wii sells, Nintendo might just have enough to buy Sony.

[aobk84 @ Sep 22nd 2006 8:47AM]

This is crapz, they are using marketing strategy. The real price is supposed to be the lower one instead of such high price tag.

[lifesux @ Sep 22nd 2006 8:51AM]

they should focus on the production not the price!!!

[jason @ Sep 22nd 2006 8:52AM]

Its quite funny, you havent considered the most simple explanation for the price drop.

MARKETING. Announce your product to be quite pricey ... get everyone moan about it and how the competitors are doing it better.

SUddenly announce a price drop. Everyone talks about, tells their friends, goes "ooooooooh thats better" and the Sony marketing machine rolls on forward.

Genius.

[Ben @ Sep 22nd 2006 9:03AM]

Now we just need a 20% price cut for the Wii!
What would that make it? Oh yeah, $199.

[Dwaine @ Sep 22nd 2006 10:21AM]

I understand they are not making any money, what I am really saying is if they put themselves in the hole another billion dollars, they never will make any money. So therefore they could never afford to give the price cut to the USA, because it would cause them too much damage to the company. So you will not be seeing this price cut in america, it ain't going to happen. Sony has not even hinted at a price cut in America and if they were going to do it, they would have announced it at the same time.

[Justin @ Sep 22nd 2006 3:06PM]

OMG IT ONLY HAS LAN CAPABILITIES!!! IT WON'T WORK ONLINE!!!
BAAHHHHHHHHHH.

Now everyone is going to be going around saying "LAN" when they mean internet or online.

[Andy Briggs @ Sep 22nd 2006 9:13AM]

Can't you guys see, though? It's stupid people buying the PS3. Also, it's a VERY obvious and adverse reaction to recent press about Sony's state of affairs. They must be making a HUGE loss on the PS3 now (I'd guess at LEAST $200, more like $400) and if you've looked into Sony currently, they're on a downward slope. This is an act of desperation, causing not only bad things for Sony (losses wise) but also for the consumer in the long term. If the PS3 did now 'win' the 'next-gen' console war, it would be disastrous for all people who brought it, and indeed the whole video games and electronics industry.
Allow me to explain, if you will. Sony are losing money on practically everything they do, and they are loosing it FAST. They seem to be outplayed by their competitors in every market they dip in to, and every time come out of each with at least a bloodied nose. The PS3 will be NO EXCEPTION. Think about it. With the losses they are making, this compnay will go down fast and ugly. Even all the revenue they've shared up over their 'years of triumph' won't be enough to cover this slump. When Sony go down, so does the major backer for Blu-Ray (in my opinion, Blu-Ray doesn't stand a chance anyway, but hey perhaps moving on to that later!). Blu-Ray support will almost instantaniously die. Production will cease and the EXTREMELY expensive machines and discs will be null and void (useless, except for Armchair Olympic discus 'wannabees'). The computer industry will suffer, the music industry, the WHOLE ELECTRONICS industry will take a BIG blow for this. I don't want to be 'predicting an APOCALYPTIC DOOM' like some right-wingers may do (lets not get into a religion fight here, folks, we've got enough on our hard disk), but it just seems to me a very plausible path for the future. This will take years to recover from and progression will...well, it'll struggle to find it's feet again. Sony has it's fingers in TOO MANY pies, and my prediction is the result of allowing a company to become so strong yet not see the consequences of their actions. Face it - Sony have been as stubborn as any mule fighting their position and not relenting one bit. They are a dogmatic organisation that would ignore all the evidence, unless it could be shown to approve their thinking. I would compare them to...well, the Soviet Union is the only thing that comes close, and we ALL know what happened to that. It was a VERY ugly and ungracious downfall.
Now, I'm not saying 'go and buy Microsoft - that'll make it all better!' - they're nearly as stubborn and trying to mix in like Sony. It's the only way to compete, but they seem to have SOME comprehension of their actions consequences. Really, gaming should be left to the company that SOLELY does gaming - Nintendo. Even if I LOVE the PS3 or XBOX360, I cannot ignore that Wii is the only logical solution.
In conclusion, Sony should redefine themselves quickly and do it well, otherwise I'm truly not sure what the future could hold for any part of the electronics industry. You people can go out and buy your PS3's - scoff at my comments as being over-reacting and childish 'Nintendo-worship' but if this does happen (or something close to this) you can't blame me for not warning it.

Finally, all I can say is I hope the good Microchip in the Grand Case in the Sky can help us. I know many will disagree, but hey, it's just a first look at things.

[Andir3.0 @ Sep 22nd 2006 9:23AM]

@Andy Briggs: "I don't want to be 'predicting an APOCALYPTIC DOOM' like some right-wingers may do"

Then why did you post?

[israr @ Sep 22nd 2006 9:43AM]

A few weeks ago, for the first time ever, i was considering buying a 360 over a PS3, due to a number of reasons. I currently own a ps2 and a psp, and bought a ps1 before these.

360 has a universally praised online system, which ps3 is unlikely to have. The premium ps3 will cost about �400 in UK, and on top of that i have to buy a HD TV, whereas 360 is available NOW.

PS3 had two main advantages over 360: Blu-ray and 1080p. Unfortunately i have discovered that a) you need approximately above 37 inch tv to easily notice the difference between 1080p and 720p, and b) there are no 1080p tv sets on sale in the UK. In addition, MS announced an add-on HD-DVD drive for 360, and most games will be aimed at both consoles, and it will be hard to tell the difference between the two (and even if you do, neither will be crap).

I also think that HD movie playback should not be the deciding factor, since in a few years time, dedicated players will be cheaper, and possibly play both competing formats. This basically erodes the advantage ps3 had, and on top of that, by the time i get either console (possibly summer 2007, so the delay doesn't really bother me), 360 will be considerably cheaper. Also, you can use a laptop to make the 360 'wireless', of course you still need a cable to connect to the laptop.

The only problem with this whole idea is that the cheaper version of PS3 will now have HDMI, and possibly have a reduced price, and i also really really want to have one (it will be hard to resist when PS3 is THE console to buy, being the newest kid on the block). If i do get a 360, i will still have a ps2 and psp to play with. Now my dilemma is which one do i buy? i have about a year to decide.

[Justin Winchester @ Sep 22nd 2006 10:56AM]

@ israr: FYI you can use ICS (Internet Connection Sharing) with anything, 360, PS3, another computer. For the How-To go here: http://digg.com/gaming_news/Don_t_Spend_$100_To_Wirelessly_Connect_Your_360..._Use_Your_Laptop!

[Andir3.0 @ Sep 22nd 2006 9:24AM]

Also, why would you want to trade a three way competition into a one way Nintendo monopoly? That makes no sense at all.

[JET @ Sep 22nd 2006 9:31AM]

Sony adding 1.3 HDMI to the low end PS3 has to be the biggest story of TGS. PS3 is now $400 less expensive than the cheapest high-def movie player with HDMI 1.3 and over $200 less expensive than a similarly configured (yet still signficantly less powerful) Xbox 360.

Remains to be seen if they meet their supply figures, though.

JET

[Pedro @ Sep 22nd 2006 9:40AM]

Well played Sony, well played. *clap clap*

[Thill @ Sep 22nd 2006 9:57AM]

Hahahaha!! Sony is playing right into my hands.. I have over a one year head start on them and have tons of great games available right NOW! All of those poor US PS3 customers who think they are going to be able to find one of these for even close to the retail price are going to fall right into my hands when they realize that there will only be a handful of consoles available and most of those will be on Ebay for $1000 or more!! Hahahahha..

Wait until I announce Halo3 and a price cut right before the holidays here in the US... Hahahhaha

[Niko @ Sep 22nd 2006 10:18AM]

This is just one guy talking but, I just want my gaming console to play GAMES. That�s it. I don�t want it be a PC, media centre, DVD player, or pop corn machine for that matter. I just want a CHEAP system to play games on. I already have the rest. So I never thought I would say this in my lifetime but, the hell with Sony and Microsoft I�m buying my self a Wii.

[Shmoe @ Sep 22nd 2006 10:28AM]

Shortfalls:
1. Still no Media Center extender support.
2. Beta-ray drive
3. Cost
4. Unproven Cell
5. Blunder-Ray disc cost/picture quality
6. Got Root?
7. Online service won't be as good as X-box Live.

Plus, I really don't see game developers utilizing Beta-Ray discs or 1080p for a while. It's really just Sony forcing it's movie format on people like they've tried to do with every other format they have created.

Good luck getting one this year or even by March for half the price of a 360 plus HD-DVD drive.

[Gamey McGee @ Sep 22nd 2006 10:29AM]

Well this is great news and also potentially telling news. What it says to me, aside from the obvious, is that the initial launch will not contain enough 60GB units to satisfy demand. To help people who wanted to get the 60GB model, they've thrown in HDMI and dropped the price.

So, really, we're looking at $399 and $499 now, if this comes to the US. I'd pay more without issue, but this might help adoption past the intial 5m to 10m units or so.

[Gamey McGee @ Sep 22nd 2006 10:34AM]

I was already willing to pay $599 for the high end unit, so if it drops to $499 I'll just buy 2 more games. SONY really doesn't loose. Their lineup for the first 12 months looks stellar, too. Can't wait!

[Jason @ Sep 22nd 2006 11:19AM]

I'm surprised, but I really shouldn't be. It simply means Sony has a brain. I was hoping they'd continue to be stubborn so I could watch them fail. Oh well :)

[Chris @ Sep 22nd 2006 11:32AM]

Well played what its still more expensive, now for 350-400$ for christmas you can pick up a 360 package with 2 games as well as 4-5 arcade titles some free online time and some XBL points to buy stuff.... and sony has their lowest price without any games at over 400+$ ... and thats ONLY in japan... ya "well done sony" ... fanboys are lame

[Porsche 911 @ Sep 22nd 2006 11:51AM]

@Chris

"fanboys are lame" I guess you are lame. "with 2 games as well" LOL ROFL LMAO