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Rumorang: Retailer promotes 'new exciting PlayStation 3'
Above: Front-page Kmart ad A banner ad on KMart's website has reportedly promoted a "new exciting Playstation 3," along with a price cut for old and boring models (see: millions of concurring rumors). The Kmart ad is sure to contribute to the ongoing frenzy of speculation surrounding Sony's upcoming press conference at GamesCom -- well, probably. That's just speculation on our part.In addition, Kotaku claims to have received a promotional poster meant for retailer FYE. It also suggests that the 80GB PlayStation 3 will have its price reduced to $299.99, while the Uncharted 160GB bundle will be trimmed to $399.99. Update: A slightly different promotional ad (seen above) is now up on Kmart's front page. Source - KotakuSource - Kmart[Via Engadget]
Analyst: July Wii hardware sales lowest since launch
According to Broadpoint AmTech analyst Ben Schachter, the Wii hardware sales numbers that NPD reported yesterday were the lowest since the November 2006 launch of the system. "Although Wii Sports Resort sold well," he commented to IndustryGamers, "it appears to have offered little lift to Wii hardware sales, increasing the probability in our view that Nintendo must lower the price soon (we expect a September cut)."Of course, Schachter didn't mention the Wii's position relative to its competitors. Considering that the Wii's worst month ever meant that it plummeted into the #1 position among home consoles, and #2 overall behind the DS, it's possible that Nintendo could see this a bit differently from analysts and ... price drop enthusiasts.
European retailer hacks €100 from PlayStation 3 in run-up to gamescom
If you know anything about European retailer Fnac, you know it's not the go-to place for bargains. However, it's this very outlet that's now selling an 80GB PlayStation 3 bundle (which includes the console, a single controller and inFamous) for €100 less than its "everyday low price" as of yesterday. Of course, one major French retailer slashing the price on a system that's long overdue for a break isn't reason in and of itself reason to believe anything's on the horizon, but pair this up with everything else we've heard over the past few weeks, and we'd say all the vague omens are pointing to a leaner, cheaper and altogether more dashing PS3 on August 18th. In our magical fantasy land, anyway. Update: Our friends at Engadget Spanish just let us know that there's been a price drop in Spain as well. Getting warmer... [Thanks, Nelson]
Analyst: Don't expect price cuts to help hardware sales
According to Cowan and Company analyst Doug Creutz, expected price cuts for all major consoles won't stimulate sales as much as previous cuts have in the past, reports GI.biz. The reason, according to Creutz, is increased "pressure on consumers" brought on by the current economic climate. That said, Creutz still believes that price cuts are imminent, specifically a $100 cut to the PS3, $50 from the Wii and a new $300 price for the Xbox 360.Of course, given the rumors and evidence flying around the web these days, you don't really need an analyst to tell you that. Creutz expects price drop announcements as early as the Gamescom convention next week. (Joystiq's Magic 8-Ball strongly agrees.)On the software side of things, Creutz expects year-over-year sales to continue to decline, starting with the incoming July NPD numbers. Another drop will occur in August, but things may turn around in September because nothing gets the cash flowing like Guitar Hero and Halo.
Xbox 360 Elite replacing Pro at $299 price point August 30th?
We've already had a pretty clear indication that the Xbox 360 Elite would be replacing the current middle-of-the-road Pro model as Microsoft winnows its SKU options down to two, and a new Meijer ad obtained by Kotaku has now further backed up rumors of the switchover, and seemingly confirmed that that, as expected, the Elite will also be occupying the Pro's $299 price point. Of course, all of this is still far from official, but the ad does also peg the date for the price drop as August 30th, so it seems likely we'll hear something from Microsoft before then -- perhaps at a conveniently timed major gaming conference.[Via Daily Tech]
UK retailers report PS3 shipment cutoff
Two anonymous retail spokespeople in the UK have reported that PlayStation 3 supplies from Sony have dried up, possibly in anticipation of this month's GamesCom and a future announcement therein. "Sourcing PS3 stock has been a challenge for the last two to three weeks," one source told MCV. Evidently, the retailers have been told that further shipments would not be coming until late August or early September. We can only speculate about the reason -- you may expect the next shipment of PS3 systems to make it to retail to be Slim, or a cheaper model; however, given recent history, we're going to conjecture that Sony is planning to release a new model with a higher price, and doesn't want to waste any more time building the "cheap" systems.
Rumor: Meijer's catalog lists $100 price cut for Xbox 360 Elite
Kotaku recently got their hands on a catalog from retail superstore Meijer's which is supposedly due to hit ... catalog stands(?) on August 30. The clipping of interest from this ad book is for a "new lower price" for the Xbox 360 Elite model -- it seems they're slicing $100 off the price of the system, bringing it down to the $299 price point shared by the Pro version.This fits in nicely with the grand design foreseen by the Ars Technica mole back in June, which claimed Microsoft would completely replace the Pro model with the Elite sometime in September. However, we called nearly a dozen Meijer's locations to try and confirm the cut -- only one Media Center employee had heard about it, and explained that it would be a "week-long sale," and not a permanent price drop.We're certain to find out more in the near future -- either on August 30, when the catalog (and Elite price) is supposed to drop, or perhaps next week during GamesCom, which some believe will provide a veritable cornucopia of startling announcements. [Image]
EA: We would like to see console price cuts this year
John Riccitiello is well-known as a man accustomed to living on the edge. His opinions, often controversial and polarizing, frequently tear rifts between factions of the gaming community. We imagine his latest outburst will be no different -- during EA's Q1 conference call, the polemical CEO said, "We think pricing will move hardware," and added, "We anticipate price cuts at some point and we'd like to see them later in the year."Sure, this may seem like the popular opinion right now, but there's plenty of folks who hold opposing beliefs. Like us -- we wouldn't mind seeing a universal increase in the price of consoles. You know, to keep the proles out.
Iwata continues to deny Wii price drop
Following its quarterly financial report, Nintendo released an investor Q&A with president Satoru Iwata. It has yet to be released in English, but Andriasang translated a few key excerpts. Most notably, Iwata's continued denial of any plans for a Wii price drop. "At present, we're not thinking of doing anything with the price," he said. Not that he'd announce it beforehand. Iwata didn't mention it, but we suspect the black Wii will reinvigorate sales in Japan, even at the original price.Iwata also admitted that last holiday's Wii lineup, specifically Wii Music and Animal Crossing: City Folk, didn't have the long-term sales Nintendo expects from its big titles. He has high hopes for this year's big three games: Wii Sports Resort, Wii Fit Plus, and New Super Mario Bros. Wii. In fact, he expects all three of these to break ten million sold by March 2010, the end of Nintendo's fiscal year.
PS3 manufacturing costs down 70 percent? Strange, it doesn't feel that way
We understand that Sony has a long way to go in making up the losses it's incurred by selling the PS3 at a loss -- even if it was commanding the highest price in the industry the whole while -- but if this latest word on manufacturing costs is correct, we'd say Sony has some room to get the console under that dastardly $400 mark. During an overseas call with investors over Sony's Q1 financials, Nobuyuki Oneda, Sony's CFO and Executive VP, apparently stated that manufacturing costs for the PS3 are down 70 percent, which is right "on schedule." While there's no official cost published by Sony, those in the know estimate the console originally cost around $800 to produce, and should be down to roughly $240 at this point. Maybe a holiday price cut is in the cards? Boy, we sure hope so. Either that, or he's already spouting off the PS3 Slim's production cost, which is a win for everybody. [Via Joystiq]
Rumor: PS3 now 70 percent cheaper to manufacture
If statements made during a Sony international investor conference call are to be believed, the company has managed to cut PS3 manufacturing costs by "about 70%, roughly speaking." Sony Corp CEO Nobuyuki Oneda stated that this was "on schedule." Concrete numbers haven't been revealed, but based on various reports since the PS3's inception, estimates are that the console now costs around $240 (£146) per unit -- way down from the original cost of $800 (£485).The upshot of all this is that at the current price Sony is guaranteed to be profiting from each machine sold -- and about time too! -- but there's also enough leeway for the company to announce that much-requested $100 price cut and still be profitable. Whether this will happen or not depends on how much Sony values consumer satisfaction and increased userbase over recouping some of those hefty losses the PS3 suffered in the early years.[Via Edge-Online]
Dell Adamo gets $500 price drop, whole new lease on life
After no small amount of external pressure, Dell has finally managed to do some major damage on the Adamo's number one drawback: the price. The starting mark for the 1.2GHz machine has been slashed from $1,999 to $1,499, while the high-end model with SSD and a 1.4GHz processor is down to $2,299. Still not in the same general galaxy as most consumer-aimed Dell products, but quite a lot closer to the realm of possibility.[Via LogicBUY]
Tretton dismisses PS3 price cut talk
Sony's Jack Tretton isn't keen on all of this PS3 price cut jibber jabber. During an interview with Fast Company, the Sony bigwig mentioned that the goal of the company is long term, and not in the short term. "People are having short-term thinking – the platform is not even three years old. It was $599; it's now $399," he said. Tretton further emphasized Sony's 10-year goal with the system, and said that a price cut alone wouldn't net Sony the customers it wants. "The focus on pricing is something we appreciate, but you have to have the conviction and the confidence that you are on the right path for the long term and ultimately you'll get all the consumers you want. You won't get them all day one, but we're looking to get them over a 10-year period. It's going to take different things to get different consumers." Tretton also talked about how Sony could've just pumped out a PS2.5 for a much cheaper price, but the system wouldn't have had the technology to sustain itself at retail for long. The PS3 is obviously very different. It has the Blu-rays, the gigglebites of storage, and the most important thing: the shiniest finish imaginable. That's what really counts.[Via MCV]
Stringer responds to price cut pressure from Activision
Sony's Sir Howard Stringer wasn't scared by Activision CEO Bobby Kotick's suggestion that his company may have to stop supporting the PlayStation 3 if the price didn't decrease. "He likes to make a lot of noise," Stringer said, discussing the statement at the Allen & Company Sun Valley Conference -- the same event at which, last year, he described the Wii as "an expensive niche game device." "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."If Sony cut the price of the PS3 as Kotick suggested, Stringer said that "I (would) lose money on every PlayStation I make -- how's that for logic." It's actually a kind of logic that Sony is quite familiar with, given that the company loses money on every PlayStation 3 it makes right now.[Via Engadget]
Sony's Stringer dismisses PS3 price-cutting threats by noisy Activision CEO
We can attest that Howard Stringer, CEO of Sony, is a pretty nice guy. But all the PS3 price-cut chatter from industry analysts and gaming execs seems to have the man riled as he tries to keep Sony afloat. Responding directly to Robert Kotick's threat to stop developing Activision titles on the PS3 (and PSP) due to the console's relative high price, Stringer told Reuters, "He likes to make a lot of noise. He's putting pressure on me and I'm putting pressure on him. That's the nature of business." When asked about the logic of not cutting prices, Howard said, "I (would) lose money on every PlayStation I make -- how's that for logic." True, until the 45nm Cell processor launches allowing for a cheaper, cooler running slim PS3 later this year, right Howie... wink, wink?[Via GameDaily]
Tecmo Koei CEO to Sony: "please cut the price" of the PS3
Activision's CEO has already gone public with his complaints about the price of the PS3, and it looks he's not alone among industry bigwigs with a bone to pick with Sony, with the CEO of the newly formed Tecmo Koei now coming out and echoing his concerns. Speaking with CVG, Tecmo Koei's Kenji Matsubara says that whenever he speaks about the issue with Sony reps, he asks them to "please cut the price" of the PS3, adding that "from a publisher's point of view we would welcome a price cut for PS3 and we are waiting, definitely." He doesn't quite go so far as pull an Activision and threaten to ditch support for the console if Sony doesn't drop the price, however, although it seems safe to assume that these complains will only grow louder -- at least until Sony actually does cut the price of the PS3, that is. [Via gamesindustry.biz]
Tecmo kindly asks for a PS3 price cut
... And for good reason, too. The company is bringing out two PS3 exclusives this year: Quantum and Ninja Gaiden Sigma 2. Considering its third-party status, Tecmo is really risking a lot by abandoning a traditional multiplatform approach."Whenever I discuss this with Sony reps I always ask them: 'Please cut the price'," Tecmo's Kenji Matsubara told CVG. "Sony introduced cutting-edge technology in the PS3, that's why people in the industry accept that the PS3 cost is so high, but we'd welcome a price cut."That's certainly a change of tone from a different third-party publisher, Activision. That company most recently made waves when it half-heartedly "threatened" to remove support for PlayStation products. In spite of the difference in approaches, it's clear that the PS3's price needs to be lowered. Not only does the customer want it, but publishers are demanding it as well.
Rumor: Ars Technica Mole foretells PS3 and 360 price drops in fall
Yes, we know -- another console price drop story. Our contempt rivals your own, we assure you. However, this time around, the report comes from a source that's proven to be eerily accurate on hardware announcements in the past -- Ars Technica's unnamed "mole," a prophetic figure who managed to predict the capabilities of the PSP Go, the release of the red Resident Evil 5 Xbox 360 bundle and, most notably, last fall's universal 360 price cut. On the Sony front, the mole is claiming that the 80GB PS3 will become scarce over the next two months, being mostly replaced by the 160GB model. As the larger model continues to sell into the fall, Sony will supposedly simultaneously announce the oft-rumored PS3 Slim and the even more oft-rumored price cut. The mole was unable to discern the exact amount that would be shaved off the price of the console, but was confident it would provide Sony with a much-needed sales boost.For Microsoft, the mole expects the Pro system to be ushered off store shelves with the help of a few attractive Pro bundles which will crop up over the next few months. The Pro will be replaced by the 120GB Elite, which will supposedly undergo a price cut in September, followed by the release of its own bundles in October. With downloadable titles becoming a focus for both companies, turning the spotlight on consoles with larger hard drives makes sense -- but only time will tell if the Ars mole's sterling predictive reputation will persevere.
Activision threatens to drop Sony if Sony doesn't drop PS3 and PSP prices
Activision CEO Bobby Kotick says he sees the number of games bought per console slowing if the price on the PlayStation 3 doesn't go down, and that his company (the largest independent game developer in the world, thanks in part to that sweet, sweet Blizzard cash) might consider dropping the PS3 and PSP in 2010 or 2011 if things don't improve. He says Activision paid $500 million in royalties to Sony last year, but the Xbox 360 and Wii are cheaper to develop for and offer a better return on investment. Still, with 23 million PS3s out there in the world, we'd think it'd be difficult to ignore the console entirely -- especially for cross platform titles like the upcoming Modern Warfare 2, where a majority of the work takes place in content development and gameplay mechanics. Of course, with games like Guitar Hero, DJ Hero and Tony Hawk now demanding the purchase of peripherals along with the game itself, Activision itself could certainly be doing more to make gaming cheaper on consumers... but we suppose that's another conversation entirely.[Via Joystiq]
Kotick questions continued Activision support of Sony platforms [update]
Activision CEO Bobby Kotick is starting to believe that there isn't enough incentive to release games on the PlayStation 3 or PSP. Proving how confident he is that fanboys don't have his email address, he told The Times, "I'm getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don't make it easy for me to support the platform. It's expensive to develop for the console, and the Wii and the Xbox are just selling better." Kotick openly called for a price cut on the PS3, citing a probable drop in attach rates. We can only imagine how Sony feels about being told its prices are too high by the CEO of the company behind (according to retailers) the $200 Band Hero box.When we look at 2010 and 2011," Kotick said, "we might want to consider if we support the console - and the PSP [portable] too." It's worth noting that, according to this Gamasutra report, both Call of Duty 4 and World at War moved fewer copies on PS3 than on Xbox -- but both broke a million on PS3, which would lead us to consider them "hits." Update: Sony comments, after the break.[Via Gizmodo; thanks, Ted]
