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Ubisoft CEO says the PS3 launch price was "right"
CEO's can sometimes say the darndest things. The always outspoken CEO of Ubisoft, Yves Guillemot, spoke with Gamesindustry.biz about the cost of the PS3, which clearly differed from his earlier views. Speaking about Sony directly, he says, " [they] sold a machine that is actually expensive to build at the right price for consumers. It's just that if we want more consumers, we'll have to have a price that will make more people come in." Well Sony has at least one CEO in their corner in mild agreement about the launch price of the PS3, except it just further exemplifies a growing demand for a price cut now. The interviewer inquired about the possibility of a price cut before the all-important holiday season, to which Guillemot of course, agreed would be nice. "For publishers, we want as many machines sold as possible, so for us the lower the price the better," he says. Previously, analysts have estimated a PS3 price cut could already be on the way. Time will tell.[Via Joystiq]
Howard Stringer looks into "refining" the cost of PS3
If you want someone to take machete in hand and slice through the vine-ridden jungle of PR spin and get to the heart of darkness (took about ten minutes to hack our own way to that dynamite metaphor), it would be Sony CEO Howard Stringer. He says that there is no question consumers want a price drop on the PlayStation 3 and he's currently looking into ways to deliver on those demands. How much the console would drop in price is the big question and what he and his pals at Sony are trying to figure out.Stringer is pretty certain he will have an answer for the public by Christmas, but took the liberty to compare sales with their most current console to the beginning years of the PlayStation Originale and the PlayStation Deux. We're making up names. Stringer reassured the Sony loyalists that sales are indeed slow, but mimic the previous consoles' trends.He also gave his two cents about the Wii. Take this as you will, Nintendo crowd: "I would be the first to say to you that Nintendo Wii has been a successful enterprise and a very good business model compared to ours... Because it's cheaper." Adding later that, when asked if the system is more fun or creative than the competition, "No, no. Fun is in the eye of the experiencer..." All in all, we'll have news of a price cut soon and we'll find out if the "cheaper" factor really is a major player in this war of consoles.
Howard Stringer: Sony "studying" PS3 price cut
Not that there's ever been a mainstream game console or gadget that didn't eventually go down in price, but PlayStation fans not ready to plunk down the up to $800 sticker price for a new PS3 can take heart. Sony's Howard Stringer did confirm that Sony is looking at ways to bring down the price on its monolith at some point down the road -- probably way, way down the road -- but unfortunately there wasn't much more to it than that. We know Stringer wants to drop the price on the thing, but as usual one shouldn't expect any formal pre-announcements of price cuts on hardware the company's struggling to make a dime off of.[Via The Inq]
Toshiba's HD-A2 HD DVD player going for a mere $199
Now this is more like it. Sure, we've seen the prices of HD DVD players slowly but surely sinking over time, and while there's been more than a few inconvenient rebate offers of late, it looks like a new precedent has been set. Crutchfield is now offering up Toshiba's HD-A2 HD DVD player for a mere $199 after a $100 instant rebate, but we wouldn't count on this thing showing up anytime soon. According to the site, not only is inventory sitting at zero, but it also admits that the ship date is unfortunately "uncertain." Still, $199 for a second-generation HD DVD player ain't too shabby (have you seen one for less?), so be sure to check out the previous impressions before grabbing your place in the ever-growing line of customers trying to take advantage.[Thanks, Andrew]UPDATE: Too bad -- looks like Crutchfield was forced to jack the price up by a Benjamin or face an order backlog beyond belief.
Zune fire sale sees reductions of up to sixty bucks
Hey wait Microsoft, weren't you supposed to be working on reducing the prices for that other consumer electronics device? The Zune appears to be in the middle of a sale at the moment, as several US retailers have put the price of the portable media player down with reductions being above 20% in the case of Staples's $60-off promotion. We all know how fickle retailers are when it comes to pricing -- if one does it, they all do it -- but surely it's not a great sign for the Zune to get such significant discounts under a year after its launch. This could be an indication of an impending announcement of a successor for the Zune (in which case this price cut is doubleplusgood), but it's not like you know who ever had to lower prices to raise interest in their outgoing PMP models.[Thanks, Bryan P]Read - BestBuy ($220)Read - Amazon ($209)Read - CircuitCity ($200)Read - Staples ($190)Read - Wal-Mart ($199)
360 price cut not coming anytime soon
The other day we reported on rumors that internally Microsoft was taking an Xbox 360 price drop seriously. Well, the Gamerscore Blog crew was quick to squash our hopes of a cheaper 360 by getting an official response from the guy who made the comment, David Hufford. In response to Bloomberg's article, Hufford says that "the comment, which is accurately reported, unfortunately has now been taken way out of context and being reported as if I am signaling a price drop. I was not, I am not". David says that his comment was made two months ago in regards to discussing NPD sales numbers and chatting generally about hardware pricing. So, he wasn't commenting on Microsoft's specific 360 pricing strategy and therefore no price cut ... sorry guys.
PSP sales double; another price drop imminent?
We don't trust analysts ... their predictions are based on the same mindless fanboy drivel commonly found on the internet, and their reports often conflict with other analysts' opinions. According to GameDaily, Todd Greenwald from Nollenberger Capital believes that another PSP price cut is inevitable. Why? Two factors.Firstly, if and when a redesigned PSP comes out, the original should drop in price (or, the new model could simply be more expensive, no?). Secondly, sales of the portable have doubled since the price drop, making a further price drop seem that much more lucrative. Of course, one must question the profitability of such a move, and that's where Greenwald's analysis starts to crumble. Even at $170, the PSP is an incredibly advanced piece of tech: it's unlikely that Sony would want to jeopardize their profits by subsidizing the cost of hardware even further (especially in lieu of the massive profit-drain that is the PS3). Sony should be content with the sales increase they've received since the price drop: certainly a doubling is nothing to scoff at.
Analyst predicts price cut for the PS3 this summer
var digg_url = 'http://www.digg.com/playstation_3/Analyst_predicts_price_cut_for_the_PS3_this_summer'; Videogame analyst superstar Michael Pachter expects there to be a price cut for the PlayStation 3 by the end of the year, and says that it might even come as early as this summer. GI.biz quotes Pachter, "It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays."As long as Sony's manufacturing costs have dropped to a reasonable rate, I'd heartily encourage Sony to drop the price of the PS3 as soon as possible. It's very clear that people desperately WANT a PS3, but just can't afford it. Dropping it to $500US and then marketing the hell out of the price drop would do wonders for their sales. Just look at what a 30 dollar price drop did for the PSP.
UK PSP sales rise 60% after price drop
Remember the UK PSP price drop? Or Amazon and Play.com's insistance on cutting another ten pounds off the cost? Well apparently it worked. Pocket Gamer has revealed that Sony are reporting a 60% increase in sales during the first weekend of the PSP wearing its new, slimmer price tag. As Pocket Gamer have said, this is good timing. We have some great games coming up (Crisis Core and Dissidia, to name just two), not to mention a back-catalogue of excellent titles. Such as the newly released (in Europe, at least) Ratchet and Clank: Size Matters. Are you a new PSP owner who took advantage of the recent price cuts? Let us know.[Via PS3 Forums]
Amazon.co.uk selling PS3s for (just) under 390 - this week only!
Amazon.co.uk seem to enjoy dropping Sony's prices, even after an official price cut. Well they've done it again. For this week only you can order a 60GB PS3 from Amazon.co.uk for only £389.99. That's a saving of 35 quid. Very nice, indeed! Does this price cut fall below your PFPT (Personal Financial Pain Threshold)? £390 does feel a lot less than £425. You've got to love Amazon for giving us a clear time limit before the deal ends. If that doesn't push the impulse buyers into parting with their cash, I don't know what will. Will you be taking advantage of the offer? Let us know.[Via PS3 Forums]
Amazon UK and Play cut PSP price by a further 10
Both Amazon.co.uk and Play.com have dropped the price of the PSP by an extra £10, even after the recent official price cut a couple of weeks ago. As it now stands the PSP is £119.99 from these two retailers. That's only £20 more than the Nintendo DS.Amazon UK are also promising (if their e-mail today can be believed) to let you have a PSP, bundled with a game, for only £139.99. Checking the website, however, shows that this is either a typo on the mail-out, or they just haven't got around to updating the site itself yet. Either way, the site still shows bundles selling for £159.99. Which is not such a good deal, considering games are thirty quid each anyway. Where's the saving there?If you see the site change to reflect the new deal, then let us know. Saving a potential £40 on last month's price is something I'm sure a lot of people won't want to miss.
Pocket Gamer responds to UK price cut - wants 'Big Idea'
Owen Bennallack over at PocketGamer.co.uk has posted a response to the PSP price cut that occurred in the UK last week. In it he debates whether the cut will have a positive affect on sales and what Sony needs to do in order to get people more excited about the PSP.Bennallack puts the current sales figures for the PSP down to people buying into the potential. That it has sold on the virtue of its hardware, not its software library. The PS3 is very similar in that respect, though the PSP is much further along in its lifespan in comparison. Almost two and a half years further, to be precise. While some excellent games exist for the system, Bennallack argues that there are no iconic titles available. He has a point. A lot of the great games are sequels or ports. Games like Loco Roco and Crush have the potential to make the PSP a must-have gadget, as does some decent PSP to PS3 game connectivity. Acting as a rear view mirror for Ridge Racer doesn't count.What we need most, Bennallack argues, is some sort of focus for our favourite handheld. At the moment it feels as if Sony have introduced as many innovations into the PSP as they could, without letting them communicate. As a result the console feels a bit like a jack-of-all-trades. He goes on to say that if Sony were to show us the 'Big Idea', then it would help increase sales and interest in Sony's tiniest member of the PLAYSTATION family. Exactly what the 'Big Idea' would be, I'm not sure. It could involve some sort of cross-utilisation of all of the PSP's features. Or it could just be an explanation from Sony of what the PSP will have available to it in terms of games, features and inter-connectivity. Either way it'd do a good job of making those of us who own one feel a little more secure in our PSP purchases. It could even inspire a few new people to do the same.
Sony confirms PSP price cuts for America, "no plans" for Europe
Just in case decorative displays and official memos weren't enough evidence that Sony was indeed listening up and slashing the price of its PSP, we've now got wind of spokesperson banter that should satisfy any remaining doubts. According to GamesIndustry, the official price of Sony's handheld has really been axed, assuring those still in the hunt for a new unit that these newfangled low prices aren't just here momentarily. Unfortunately for those across the pond who were waiting in tense anticipation for the recent PSP price hacks to be shipped on over, it's not looking too promising, as the aforementioned Sony spokesperson reportedly remarked that it "had no announcements to make about the PSP in the European market at this time." Of course, there's always hope for an (expectedly) delayed decrease in price, but if you were hoping things would just happen simultaneously, there's no good news for you.
Analyst talks price drop, Gran Turismo
Analysts, for some reason or another, are important to the industry. Colin Sebastian of Lazard Capital Markets commented on Sony's recent price drop of the machine, saying it will give the platform an important "shot in the arm." As the first official price cut since the product's launch more than two years ago, marketing will be crucial. Thankfully, according to Sebastian, Sony has a plan: "Sony is planning to support the pricing move with a new print and online marketing campaign targeted at young adults and teens." Let's hope it's better than what we've seen so far. Price is one of the sole detriments to PSP's performance. With a lower price, Sebastian notes, the system should sell much better: "We note that a Wal-Mart promotion on Black Friday last year generated significant sales volume for the PSP at a discounted price of $169, providing one indication of potential consumer demand. We also believe the potential release of Gran Turismo for the PSP in 2007 could further boost unit sales." Wait? Did he mention Gran Turismo? Isn't that game canceled? Or maybe it's not. Let's hope that he knows something we don't. The battle's far from over, the analyst reminds us. "It is too early to conclude whether Sony's pricing action will cause game developers to increase the pipeline of new PSP titles." Certainly, the price drop is encouraging, but "at the new $169 price, we note that the PSP is still $40 higher than Nintendo's DS." [Via GameDaily]
Sony mulling more PS3 price cuts?
According to Senior VP Takao Yuhara at Sony, that pre-launch price cut in Japan might not be the only one the console will be seeing in its early life. "We may look at the price as part of our strategy to expand the market when the timing is right," said Yuhara. Sony wants to break even in its game division by March 2008, and "Such factors, including price cuts to some extent, are factored in," according to Yuhara. Sony is also still holding fast to its target shipment of 6 million PS3s by March 31st 2007, and with the Wii and 360 breathing down its neck, it might very well have to drop prices to compete. Of course, the semi-promise of some sort of price cuts, possibly Japan-only, before March 2008 is isn't really much to go by, but we'll take whatever threads of hope we can get.
Analyst predicts Euro PS3 price cut within the year
The occasionally apologetic Michael Pachter of Wedbush Morgan Securities has used his arcane analytical powers to conjure up the following prediction: the Playstation 3 will see a price cut in Europe within the first year of its launch. "The PS3 can command GBP 425 from the hardcore and I think you'll see price cuts a year from now, probably to GBP 300." Pachter believes the costs of a PS3 and a 1080p television to be "worth every penny" and expects the system to sell out very quickly after its European launch on March 23rd.This prediction comes in stark contrast to the words of SCEA chief, Jack Tretton, who told Game Informer that the PS3 would be "difficult to cost reduce" and would not see a price reduction as quickly as the PS2 did. It took 565 days from launch for the PS2's North American price to drop. Even working from the PS3's US release date, the idea of a UK and Europe price drop by March 2008 smells a bit of unfettered optimism.
Xbox 360 price cut vs. cost reduction
The San Jose Mercury News has posted an interview with Robbie Bach, President of Microsoft's Entertainment and Devices Division (a title alone that speaks volumes about the structural problems at MS), that has some interesting tidbits in it. Most notable is when Bach says, "Right now we are thinking about how to cost reduce the Xbox 360. That seems to be the first order of business."It has been rumored for some time now that the Xbox 360 would see a price cut around the holidays, but now that Black Friday and the PlayStation 3 launch have come and gone, you can kiss that one goodbye. What Bach is talking about here is that Microsoft wants to drop the production cost of the 360, in an effort to make it profitable. There's a big difference between cost-reducing and price-cutting. When a manufacturer costs reduces, they're making it cheaper for them to produce something, usually by switching to different vendors or using cheaper materials. Microsoft promised that they would cost-reduce the Xbox 360 every year, which they've already done this year. The console was rumored to cost Microsoft between $525 and $715 for each unit produced, vs. the current production price of around $329, giving MS a chance to make a small profit on each premium system sold. As they find more cost-reduction options over the next year, that gap should widen. The only time we'll see a price drop on the console itself is either when the PS3 drops theirs, or when the Xbox 720 II Virtual Gameulator comes out. Of course, you can always take Micro Center's deal and get $100 off, your choice.Microsoft has repeatedly said that the Xbox division won't turn a profit until 2008, although Bach dances around that with statements like, "Xbox is on the trajectory we thought it would be on. We feel very good about that." There's a difference between a good feeling and black ink, though. It will be interesting to see how Microsoft not only plans to compete with Sony not only in numbers of consoles sold, but where the profits are coming from.If Microsoft really wants to make a profit, they might think about buying stock in companies that sell red pens if they keep releasing things like the Zune.
Microsoft's Robbie Bach calling out Xbox 360 price cuts?
Ah c'mon, we all knew this day would come, but the sooner the better, right? While an Xbox 360 price cut has likely been in the works for some time now, it's no surprise that it hasn't happened quite yet. With Sony's latest gig coming in well over what Microsoft is asking, there's been no reason (yet) for Microsoft to take an even bigger loss (at launch, at least) on each console sale. Nevertheless, it seems the time is drawing nigh, as Microsoft's own Robbie Bach has stated that bringing down the costs associated with the console is "the first order of business." He also boasts about the 360's "larger installed base," and claims that its "fundamentally easier to manage on costs," insinuating that those price reductions would soon be passed onto the consumer as the Xbox 360 hits its second holiday season in full stride. This latest round of price yapping comes on the heels of European stores slashing bundle prices (history repeats itself?), offering the Premium console and Gears of War for an "unprecedented" £269.99 ($520). Although we aren't certain as to when Gates and company will indeed chop prices on its next-generation machine, we'd suggest holding off just a bit longer if you're already leaning this direction.[Via MCV]
Retailers confirm high definition DVD player price cuts
HD DVD and Blu-ray players don't cost quite as much as they used to -- if you know where to look. Amazon and other retailers have recently slashed prices on Samsung's BD-P1000 Blu-ray player, as well as Toshiba's HD-A1 and HD-XA1 HD DVD players. VideoBusiness quotes a few smaller retailers as saying they're "just trying to stay competitive" with price adjustments, unexpected for technology that's only been out for a few months. They also mentioned that while HD DVD sales are as expected, Blu-ray sales have been less than expected. Whether it's the prospect of upcoming hardware revisions or reports of early glitches, some stores are bending over backwards to move first generation players off shelves while others (Crutchfield, Best Buy, Tweeter) see no need to. If you're confident enough to jump into the next generation of DVDs with one of the players already available, just be sure to price check first.[Thanks, Tyler]
MS drops price of Core System in UK
Microsoft has repeatedly said that they won't be cutting the price of the 360, but then, reader Lorul2 never thought he'd have "three kids and dead end job." Things change, and they obviously have in the UK where GamesIndustry.biz confirms the Xbox 360 Core System is now selling for the official price of £199 off of £209. That's converts to a drop of about $19. No word on a similar price cut for other SKUs or markets. Will this invigorate interest in the lowly core system?[Thanks Lorul2]
