New PS3 doesn't mean price drop for old models, Sony explains why

New PS3 doesn't mean price drop for old models, SCE explains why
The newer, slimmer PS3 comes in two versions: 250GB for $270 and 500GB for $300. The old PS3 models, 160GB for $250 and 320GB for $300, will not see their prices drop, even though they now have price-point competition from the same brand. This is all because of consumer demand for quality content, says John Koller, Sony Computer Entertainment America VP of marketing, handhelds and home consoles.

"There's no price drop formally, but the thing that's been happening in the market over the last year or so is that there's been so many retail price promotions, and so many different gift card offers and all those things, being done by all of us [Microsoft, Nintendo and Sony], that we've heard from our consumer, 'Enough with all these weird price moves. What we really want is content and games and value,'" Koller tells Engadget.

Most consumers we can think of (ourselves included) love having great content, but hold an equal passion for cheaper consoles. Koller says his answer is "kind of a long way of saying, 'No, no formal price drop.'" Besides, there are only so many older PS3 models on the shelves, he points out.

At the Tokyo Game Show, Sony Computer Entertainment president Andrew House tells Reuters he thinks SCE will be profitable this year. "We have a growing installed base, growing connectivity of the PS3," House says.

After announcing the Vita "may be trending behind in certain territories," and a projection for the company's largest-ever yearly loss, $6.4 billion, it looks as if SCE is relying on the new (and old) consoles to boost finances.

This article was originally published on Joystiq.