CE-Oh no he didn't! Part XV: Sony Australia exec calls the Wii "a bit pricey"
By Cyrus Farivar 
posted October 11th 2006 2:44AM
posted October 11th 2006 2:44AM
Welcome back to CE-Oh no he didn't, the game show where company executives get to mouth off about something that surely won't make their bosses happy. This week, we're playing with Michael Ephraim, managing director of Sony Computer Entertainment Australia, who made a very insightful comment recently about the pricing of a rival product. Now, while prospective buyers have grumbled at the high price (AU$1000, or $743) of the PS3, Ken Kutaragi, the head of Sony Computer Entertainment, has maintained that the company's latest console is "probably too cheap," but acknowledges that it's a "expensive toy" -- although to be fair, Sony did just drop the price in Japan. Well, it appears that Kutaragi's minions don't necessarily agree with his assessment, or at least Ephraim appears not to. He recently told The Age (Melbourne's major metropolitan daily) his opinion of the Nintendo Wii, which will retail for AU$400 ($297):"My only question for this Christmas on Wii is the price point. Even though it's affordable, at $400 plus whatever you need to buy accessories-wise, I'm guessing you need to spend about $500 to take home a Wii and enjoy it. For this Christmas, I think that price point is still not family entertainment because $500 is a lot to fork out . . . I think the price for what it specifically does as a video games machine is a bit pricey, but I think that their strategy long term we have great respect for."
So by that logic, mate, the AU$1000 PS3 will be what, exactly -- really frickin' expensive? Not to mention it'll be even more than AU$1000 when it comes with all its accessories too, y'know? So that makes your PS3 even more than twice as much as the Wii, which you say is "a bit pricey?" Mike, wouldn't you think that would mean that you'd want to, um, perhaps bring the price a bit down? Can't you call up your buddy Kenji and tell him what you told those Aussie reporters? Or maybe perhaps your colleague across the Pacific, the Kazmeister? C'mon, you guys could set up a meeting in somewhere convenient for all of you (say, Honolulu?) and work out the details. Then everyone would be happy, especially us lowly consumers.
[Via Joystiq]
i think you guys misinterpreted his statement. I got that he means what the Wii is capable of is not worth the price. The Wii has no new technology really. It can play dvd's ( I THINK) but no hd-dvd or blue-ray. Sure you can swing like an idiot for hours with the controller but after you get out of wanting to be 6 years old again I think people will be lookin for something new. The fact remains Nintendo is not going to make a comeback they start off fastbut I personally think unless they try to compete against the x-box or Playstation they will end up like Sega and just make games and no more consoles. I do think the playstation is expensive but for what it brings to the table I think the price is jusitifed. I say this time next year (if not sooner) a lot of people with feels stupid for doubting Sony and playstation will have surpased the x-box 360 and be the kings again.
Criticism of this Sony exec's remarks is warranted, but I think many are missing a point...
The complaint leveled at the Wii is that it is too expensive for what it is. The thing is, Nintendo has announced that at the Wii's pricepoint, Nintendo turns a profit on the console from sale #1. It is unfair to compare a fair-priced Wii ($250 USD) with a at-loss PS3 ($500 USD).
Let's compare apples and apples. How much would a fair-priced low-end PS3 sell for? $700 USD?
sracer is absolutely right and made the point that i was going to make... the ps3 is being sold AT A LOSS of money. Nintendo could easily sell the Wii at 100-150USD if they wanted to lose money. If Sony sold the PS3 at what it actually costs and make a profit, it would probably be around $1000USD. This argument would completely change if Sony didnt lose a billion dollars by selling the PS3.
Sheesh, some of these posts make it seem like it costs the same for nintendo or sony to put somethign out in one country as it does another. If I remember correctly it costs them differnt amounts to put a game system out in japan then it does in America, and the same for to put one out in America then Austrailia.
Odd though that people keep saying nintendo could sell the Wii for $150 and not take a loss, well, maybe on what it costs to physicly make it, but you people ever take into consideration how much they spend devoloping? Thats like asking a new game for anything to cost what it costs to put it on the DVD... its just stupid.
These articles are getting annoying. It's great to see that online tech writers will distort the words of other people the same as any other form of media. Thanks for continuing the trend of lying to people.
Try this, go to best buy and see if you can buy a blue ray or HD DVD player for much cheaper than PS3. Sure the 360 is cheaper, but to watch HD DVD's you've got to spend even more. I think that, like the PSP, people aren't getting that PS3 is not JUST a game system. It is a multimedia center. But hey, who cares about facts or abstract thought when you can just continue to lie to your readers.
-Bobby
PS: It's clear he meant it's expensive for just a game system. This PS3 bashing is getting old considering it's going to be sold out countrywide. But hey, who cares if you are all two faced hypocrites who are unable to form your own opinion or stand against the general consensus and form your own thought. And before the word fan boy starts getting thrown around like a security blanket for you to hide behind, Im not much of a fan of Sony. Theyre faulty batteries were the result of complacency and lack of attention. It was a dangerous mistake and someone could have been hurt.
their*
So let me wrap some stuff up. Blaming Nintendo, a business, for trying to sell a newly developed product for a profit is stupid. Just because Sony wants to lose money on each consoles they sell to actually sell it doesn't mean Nintendo should follow suit and rape themselves too and hope their games and accessories pay back the millions they will lose. And, just because the materials will cost less than $100 to make the Wii doesn't mean they can sell it for $150. Ever thought about how long the Wii has been in developement and How much they paid their employees to actually develope it? As a consumer, I would love to see the Wii at $200 too, but Nintendo is a company and companies exist to make money (duh).
What Sony said is right. The PS3 is NOT a gaming machine. It's a multimedia entertainment system of the future. But not everyone needs that stuff, including many of the people who bought a PS2 in the last generation. The PS3 price point is not bad for what it has inside that George Foreman Grill, but many gamers just want a better gaming machine. If I want a blu-ray player, I will definately pick up a PS3. But, I'm just not willing to fork over that much money for video games, whether or not the value of the system is good for what it's worth. I used to be a Sony fanboy with every single PS's (including the PSP), but Sony's shift from games to multimedia has me also shifting sides.
P.S. DS Lite rocks.
PS3: Priced well for a Blu-ray player and game console, but expensive as a whole. The average consumer won't buy it, but HD fans will.
Wii: Priced well because as some may remember, Wii's wireless multi-player will be FREE of charge. Motion sensing isn't that new, but a system based heavily around the concept is new. The average consumer will buy it, but HD fans won't.
If graphics are the most important thing in a game, grab up the PS3. If gameplay is the most important thing in a game, snag a Wii.
My view: I don't care for the best graphics (although HD would have been nice). If the Wii lives up to its hype, I'll snag one for sure. PS3 is expensive for a game console, but if Blu-ray wins the format war, it might become an option.
A great point to bring up, what is the PS3 if bluray movies fail? Sure they still have the games, but then it's not a multimedia device anymore. It'll just be an expensive console. No decisions until the hd format war is over.
Did everyone miss this engadget article on October 7th?
http://www.engadget.com/2006/10/07/wii-retail-details-markup-and-endcaps/
To paraphrase:
...check it out (price on the left is, of course, retail; price on the right is cost):
WII CONSOLE - 249.99 / 237.50
WII REMOTE CONTROLL - 39.99 / 32.00
WII POINTS CARD - 24.99 / 17.00
WII CLASSIC CONTROLLER - 19.99 / 14.50
WII NUNCHUK CONTROLLER - 19.99 / 14.50
WII GPAK ORGANIZER&TRAVEL - 29.99 / 18.95
WII RAYMAN RAVING RABIDS - 49.99 / 41.2
WII THE LEGEND OF ZELDA:TW - 49.99 / 40.00
WII RED STEEL REVOLUTION - 49.99 / 41.22
Wow, Sony is full of stupid execs in all departments in all countries...
Seems to me that this man is right. At least PS3'll will have everything with it that you can just pick up and play..when Wii probably will need acceseries right away.
"I think the price for what it specifically does as a video games machine is a bit pricey, but I think that their strategy long term we have great respect for."
As the quote states, "...what it specifically does as a video games machine..." The Wii is a video game system, pure and simple. It has one task to do, and from what I can tell, it will do it rather well. The PS3 is NOT a video game system. It would be more accurate to refer to it as a multi-functional home theatre component device that, in addition to many other features, plays video games. The PS3 and the Wii are not even competitors because they are targeting different demographics. Currently, the Wii is unique in the home entertainment industry by offering a standalone video game system, so it currently does not have any competitors. On the other hand, it is obvious to see that the PS3 and the Xbox360 are direct competitors, so one can only draw judgment through the comparison of these devices, excluding the Wii.
Okay, here's how I figure it on Wii's price.
Wii unit: $100.
AC adaptor and AV cable. $35
Free hand controller: $40
Numchuck attachment: $20
Sensor bar: $35
Wii sports: $15 (if retailed $20)
Total cost: $250-$55. Nope doesn't sound like a rip off to me and too pricey.
Actually I saw the full quote where he mentions the PS2. I think what he's trying to say (though it STILL sounds very foot-in-mouthy) is that since you can't get a PAL PS3 this fall you should get a PS2 system, the cheapest home console out there. With Force Feedback by the way.
Well, Im an Aussie who has been living in Japan for the past 6 years...Australians when it comes to electronics get over charged and basically treated like second class citizens. Im going to buy both systems because each has its god and bad points - The PS3 is overpriced even in japan (consumers complained about the price and it was lowered) but includes a HDMI input for HD output (which is a must for this country - oh by the way, we Australians epspecially in the country get a ruff deal, no decent HD signal and weak Broadband..in Japan we have speeds of upto 100 mbs for consumers) and Nintendo is really pushing game development with the DS and soon the Wii and actually has some really nice ideas rather than just the Quake/GTA - shoot to kill games that dominate the U.S/Aus game charts..
my god! the point is... that the wii ultimately costs less, not seeing what it costed to produce, what will be the use of paying too much for a PS3 and then be saying "hell! at least it costed that much to produce" that makes no sense...
PD:for all that say the wii costs 40 to produce, i remind you the Wi-Fi module costs at least 20 bucks, and the DVD-Rom goes in the like, add .50 for packaging, and we exceded 40, without counting the case, motherboard, CPU, GPU, eeeeetc.
Dont even mind critizicing my grammar, english is my second language...