Ken Kutaragi: "PS3 is not Expensive!"

[Borys]

The Father of Playstation - Ken Kutaragi - does it again. Straight (http://ps3.ign.com/articles/706/706133p1.html) from the horses mouth:

This is the PS3 price. Expensive, cheap -- we don't want you to think of it in terms of game machines. Because the PS3 is like nothing else.

For instance, is it not nonsense to compare the charge for dinner at the company cafeteria with dinner at a fine restaurant? It's a question of what you can do with that game machine. If you can have an amazing experience, we believe price is not a problem.

When we announced the PlayStation price, it was said to be expensive. Same for the PlayStation 2. However, when released, both had sales that were unthinkable for previous game machines. This is because both offered experiences that could not be had on previous game machines.

With the PS3, you can have next generation game experiences that could previously not be experienced -- things like next generation graphics and various services via the network. And, as with the PS and PS2, we believe people who like games will, without question, purchase it.

1) Yes it is.
2) They will still sell like hotcakes.

[Xerxes]

Hmmm Neo Geo sold? It could happen...

[devicelimit]

This from the guy who said that the PS3 would be expensive and wanted people to have 2 jobs to pay for it. ?????????

[Echani]

1) No it isn't.
2) They will still sell like hotcakes.
3) Ken Kutaragi is a very rich man

I still see myself getting one, just not for a loooong time. I didn't even shell out €300 for the PS2 when it came out, I just wasn't interested enough. I got one a year or two later, there were more than enough games out to pique my interests, and the price had come down.

Could I afford to drop €600 on a PS3? Yeah probably. Do I want to? Not yet.

[Tricky Thumb]

People will buy it because Sony will make it seem like it's worth the $600. That doesn't mean it really is, but you know, whatever.

I'll get one, but simply because I'd like to be able to play the games I know will only be on this system in the end.

[mightbe]

No thanks, I'd rather have hotcakes.

Mmm. Hotcakes.

[dotbomb]

It won't be the insta purchase for me the 360 was. I was going to buy it so I could play the ps2 game library I missed out on but now with that price and the obvious shortage there will be for a while (they will fly off shelves even at that price) I'm picking up a ps2 this week.

[Roc Ingersol]

The PS3 does not give you $200 worth of experiences not to be had on the 360. Contrary to that, the premium + HD-DVD widget sounds like it will give you a more broad experience than the equivalently priced PS3-gimp edition.

Most people bought their PS2 when it was $250-$200. How long is it gonna take to get the PS3 down to that level?

[mikeohara]

well, as much as I like the PS3 and quite a few of the games it has ... I have to ask if I can have some of the crack that Kutaragi is smoking here .... I need a hit so bad ...

[Sazime]

Because of all the different XBox packages on the net, I can't tell how the base ones are. Was it $400 and $500? The PS3 is averaging $100 more?

[joruussuun]

I'll get it when the non-'tard pack is <$299.

[Zanzibar]

If you can have an amazing experience, we believe price is not a problem.
What, precisely, was amazing about your PS3 presentation?

[Zanzibar]

Because of all the different XBox packages on the net, I can't tell how the base ones are. Was it $400 and $500? The PS3 is averaging $100 more?

X360 was $299 for the Core (non-hard disk) version and $399 for the Premium (hard disk) version.

[Borys]

Say what you will but that man is beyond simple earthly PR and marketing.

He is a Visionary.

4D + Live + P(l)ay Beyond!

[Sazime]

X360 was $299 for the Core (non-hard disk) version and $399 for the Premium (hard disk) version.
Wow, so yeah. That is crazy... I'm still buying one... six months after release... maybe.

[Dracula-X]

Expensive, he wasn't kidding about that :) PS3 will still sell, but I'm not so sure it will sell as well as they hope. Until I see what Microsoft has going, I'm not convinced that Sony will lose this generation, albeit winning by a much smaller margin than I would have given them prior. We'll see how it goes...

[Taco]

I wish he'd die by fire.

Also acceptable: drowning.

[Dracula-X]

PS: Kutaragi rules :)

[Klade]

I won't touch a console at even 299 price point. At 200$ if it has some decent games then it becomes possible. I'm not as convinced that this system will have sales that compare to the ps2 launch. Oh I'm sure it will sell out in Japan but I'm less sure about america. I mean if they start it at 500 then the min purchase will probably be around 600 when it comes out (need to buy a game and a controller or maybe some other stuff as well). Who even knows what the expensive version will be... That can be a hard sale to a lot of people.

If they cut their supplies even shorter of course they could sell out then.. I mean ultimately in this market the shorter your supply the greater the chance of a sell out.

[MAbans]

Thanks, keep giving me EVERYTHING I don't need. The PS3 is just a way for Sony to push Blu-ray over HD-DVD. Its waay too expensive. XBOX will stay 1st, nintendo 2nd and PS3 3rd..

[morose]

PS2 was first to market. Sony losing that advantage and then STILL coming to market with a more expensive system... well, what else can he do. Everyone knows the facts. He can only spin it. *shrug* Unless Blu-ray really does stomp HD-DVD in the format wars, I can't see the PS3 repeating the dominance that the PS2 had in sales. Not that it's a bad thing. Split market = incentives from manufacturers = cheaper systems more quickly = happy me. :)

[Chalex]

I won't touch a console at even 299 price point. At 200$ if it has some decent games then it becomes possible. I'm not as convinced that this system will have sales that compare to the ps2 launch. Oh I'm sure it will sell out in Japan but I'm less sure about america.I guess you missed the 360 launch when people were paying $1000+ for a $299 system.

[51|RandoM]

The PS3 is another battle in Sony's current war: The War of Convergence.

For Sony, it can be seen as a war, not for new territories, but a war for survival. Convergence of consumer a/v, video game consoles, and perhaps computers into a common unit, or perhaps a common infrastructure where devices transparently interact/share resources/share media solves a lot of problems for them.

Making convergence a valid consumer goal suddenly gives people a compelling reason to buy sony consumer electronics again. It is a quick way to rebuild their tarnished image in that area. The same interaction is a bonus for their console, and is a big win for the media divisions. They can sell you all the hardware, all the games, and lots of music and movies---all from divisions they own.

Problem with convergence is that you can't "almost" converge. There are no rewards for nice tries. The PSP is currently a "nice try". After yesterday's E3 session, the PS3 looks like it will be a "nice try".

Anyways, that is why Ken is saying what he is saying now. In his vision of a sony utopia, the PS3 isn't just a console. It is a mediacenter that does far more than a console, interfaces wonderfully with other Sony technology, and is a great piece of gear for promoting Sony's music, video, and gaming properties. If you look at it that way---and believe it, heheheh---the pricing is not really out of line.

They've messed up with the "me too" controller. If you're going to do what the other guy is doing, you have to do it at least as well, if not better. They've messed up with their online offering, seemingly. Sure, go ahead and use it as a tool for convergence, but by god make its gaming aspects just as good as the competition(Live). They made the same mistake with the PSP(DS). Great convergence device, lackluster portable gaming.

The only saving grace they have left is their developer support. As long as they secure the great games, keep them exclusive for awhile, they'll be able to succeed on the gaming front, of not their overall vision of convergence.

Sony is in the worst position of the three. They don't have another cash cow division to help cover expenses like Microsoft, and they're not both profitable and flush with cash like Nintendo is. That is another reason you're seeing realistic---in terms of cost of production---pricing on the PS3. They just don't have the deep pockets to take a bath on the hardware like Microsoft loves to do.

[51|RandoM]

PS2 was first to market. Sony losing that advantage and then STILL coming to market with a more expensive system... well, what else can he do. Everyone knows the facts. He can only spin it. *shrug* Unless Blu-ray really does stomp HD-DVD in the format wars, I can't see the PS3 repeating the dominance that the PS2 had in sales. Not that it's a bad thing. Split market = incentives from manufacturers = cheaper systems more quickly = happy me. :)

On the format war, I've read in a couple places that not only are dual-format players feasible, they're on their way. Do that and the format war is a tempest in a teapot. One of the places compared it to DVD-R vs. DVD+R.

[BleedTheFreak]

I've decided to call it the PS3rd now.

[cppcrusader]

On the format war, I've read in a couple places that not only are dual-format players feasible, they're on their way. Do that and the format war is a tempest in a teapot. One of the places compared it to DVD-R vs. DVD+R.

There were Beta/VHS players in the 80's as well, and we all know how that one ended.

[GrinR]

I guess you missed the 360 launch when people were paying $1000+ for a $299 system.

I bought a $1000 bundle, but it came with ALL the games and extra controllers and shit I knew I'd likely be buying anyway later. I know the going Ebay price was around 700-900 dollars after the initial insano-rush.

We'll see the same thing with the PS3, but without full backwards compatability and a damn good selection of games, they are going to lose their primary market - playstationheads.

Every time I go to EBX (*spit*) I see these jokers just falling over themselves to find the latest playstation-whatever. That's cool, but 90% of them are kids. Those kids are not going to be able to even come CLOSE to affording this system. I saw them drooling over the 360, but they knew they couldn't afford it either.

I think PS3 will have a great launch (how could it not?? Maybe by letting the MS marketing idiots handle it?) but is definitely going to lose market share to MS in this generation.

Wii will get stomped. Even more than the GC.

[DigitalMystic]

Oh well, I wasn't stuck on rushing out to get one until we receive a solid yea/nay on an FFVII remake anyway. That's what drew me to buy the PS1 and PS2 - content - and I can wait for an equal must-have RPG or game experience before I start craving a PS3.

I don't have an HD TV, I don't want or need a PSP, and I already get downloaded movies & music online w/my PC. Why doesn't Sony just start selling us $1,000 PlayStation Vaio's with an emulator disk and be done with it?

They did confirm one positive thing for me at their conference though - The Nintendo Wii is the only console I'll be waiting in line to pick up on launch day this generation. Whereas, I was standing with fist full of cash for all 3 in the past generation. :(

[didragondi]

I think only the hardcore players, playing games and buying systems for themselves will buy, and granted that is the most of the people on this site; I believe though that it is the family sales that really boost game purchases, especially at Christmas, and no one but those rich enough to not care will put a 600 gaming system under their tree. It may take a year to get the price down, through more efficient production, and I think during that year, at least in the US, the Xbox will kick hell out of PS3. In Japan, you never know. I will say this, though- I'll bet Nintendo cheered when they read the price.

[Taco]

I'm not so sure the $299 core system is looking so bad now. I mean it's still a stupid hack job of a machine no sane mane should purchase. But when comparing prices at a glance that $299 number stands out.

Not to mention you have the option of buying that HD post purchase. With the $499 PS3 you are fucked for life.

[Kem0sabe]

Ill be buying the Wii, the E3 presentation sold it, was watching the live stream while at work.

Tho the fps was somewhat of a dissapointment, very crappy textures on that :\

Just want to add that the host at the nintendo presentation was amazing, he looked ready to kick everyones ass if they disagreed with him lol

[51|RandoM]

There were Beta/VHS players in the 80's as well, and we all know how that one ended.


Actually, I've found most people don't know how that ended. Most people consider it a complete loss for Sony, when it was anything but. Guess which format has descendants still in use today at TV stations all over the world? One hint: It isn't VHS.

[Serapth]

Actually, I've found most people don't know how that ended. Most people consider it a complete loss for Sony, when it was anything but. Guess which format has descendants still in use today at TV stations all over the world? One hint: It isn't VHS.

This is splitting hairs... but... BetaMax is really dying in the professional market now too.

Besides, what do you think made greater licensing revinue... the perhaps millions of beta tapes sold to professionals, or the BILLIONS of VHS tapes sold to , well... everybody.

[pavlovscow]

A $500 whore is a far better experience than a $50 whore. Yet, I feel like the $50 whore is a far more reasonable value.

Plus the $500 whore told me she'd drop her price and play more games if I waited a few months.

[Dracula-X]

I read somewhere that the pornography industry got behind VHS, which was key to its success :) Blu-ray also has porn backing it... Who knows.

[Zanzibar]

Wii will get stomped. Even more than the GC.Welcome to my sig!

[dr_wily]

the last time a system was 600$ it was called the 3d0

[cppcrusader]

Actually, I've found most people don't know how that ended. Most people consider it a complete loss for Sony, when it was anything but. Guess which format has descendants still in use today at TV stations all over the world? One hint: It isn't VHS.

Yeah, I know that Beta is still used in video editing, and as Serapth mentiond it is on its way out as well. People in TV and Film like it because it does a better transfer than VHS, but they hate the licensing fees from Sony. Its true it wasn't a complete loss, but it certainly wasn't a success.

I read somewhere that the pornography industry got behind VHS, which was key to its success Blu-ray also has porn backing it... Who knows.

Vivid is getting behind HD-DVD.

[GodFather]

No thanks, I'd rather have hotcakes.

Mmm. Hotcakes.

Is your real name Vito?

[bean19]

The price will keep fence sitters on the fence.

Myself, I won't buy it until a must-have game comes out for it (so far the only must-have (for me personally) is FF XIII) - for other fence-sitters, MGS, DMC, Tekken/Virtua Fighter, etc. may be the games to get them to buy the system.

I have no doubt that it will sell well at release, but I don't think it will sell out, and I think the Wii and X360 will outperform it in sales this holiday.

That's a big fucking deal too. I never would have said that before the rather bad E3 press conference.

[Sl1pstream]

It will sell out, if only because they don't have a huge amount of them.

It'll sell out and the news will be all over the internet, in every playstation related magazine and even in normal newspapers. It's still Playstation after all.

[bean19]

I guess you missed the 360 launch when people were paying $1000+ for a $299 system.

About 80K people were doing so. There is no doubt in my mind that they can sell 2 million units in the U.S. at $600, and probably around 5 million units world-wide at that price. . . but, not instantly. . . that's what I'd expect them to show after a year of being released.

I wouldn't bother pre-ordering my PS3 if they actually deliver on the 2 million at launch promise.


(Btw, I think that promotions that give away free PS3's will get INSANE hits this year. There will be a far larger number of people that are simply priced out of any possibility of purchasing the PS3 that will be more than happy to drink Mountain Dew for a chance at a free uber-expensive system).

Another factor of this is that they may help sell X360s with that price point as the X360's now look affordable. If Microsoft drops their price by $50/console and drops the price of the 20 GB hard-drive by $50, they will look like they are giving a bargain. Same HD next-gen gameplay but half the price and twice the games.

[bean19]

It will sell out, if only because they don't have a huge amount of them.

Well part of the reason I don't think it will sell out is because they have promised a huge number of them at release (FAR more than Microsoft had). 2 million at release and 4 million by Christmas is their promise.

But it is Sony. . . so I don't know whether or not to believe that.

[Sl1pstream]

2 Million worldwide isn't that much imo.

[Valchael]

Even if it doesn't sell out, you know Sony will brag about how many they ship. That said I want FF and will probably get it when the price comes down.

[Bushido]

Wii will get stomped. Even more than the GC.



I sure hope you dont depend on your powers of observation for survival.

[Mason]

The PS3 launch list is the most important missing element. I mean, given that we're getting God of War 2 and FFXII dropped a month or so before the PS3 launch, even ardent Sony-platform-franchise fans have enough material to let them put off an upgrade for a while.

Right now, Sony's most prudent investment might be to keep cloning SquareEnix's staff until they have the manpower to get FFXIII out in November. And then give away a free Square employee clone with every PS3 purchase.

[Zanzibar]

the last time a system was 600$ it was called the 3d0
"Playstation 3d0." That's, like, the ultimate insult.

[Serapth]

The PS3 launch list is the most important missing element. I mean, given that we're getting God of War 2 and FFXII dropped a month or so before the PS3 launch, even ardent Sony-platform-franchise fans have enough material to let them put off an upgrade for a while.

Right now, Sony's most prudent investment might be to keep cloning SquareEnix's staff until they have the manpower to get FFXIII out in November. And then give away a free Square employee clone with every PS3 purchase.

What the hell could I do with a Sqenix clone? Can they atleast cook or clean?

[AversionFX]

my pc has given me next-gen graphics and online interactivity for many years.

why do i need to drop a couple hundred dollars to get something my computer has been doing forever?

[Dag-Sabot]

"Playstation 3d0." That's, like, the ultimate insult.Wow ...quote worthy! I hope they chisel those words on PS3's tombstone.

[KSmitty]

$600 is quite a bit of loot, maybe aiming at the HDTv set, its not so bad, but that is definetely not a 'mass market' price. They will sell, but the question is how well they will they sell once that Oh my GOD I gotta have the new PS3 hysteria runs out. I won't be making this purchase for a bit, hell right now I am looking at vacation packages that are cheaper than that thing. Once its gets to the $400 range I'll look to purchase until then I guess I'll just go over a friends. ;)

-K

[AniAko]

No thanks, I'd rather have hotcakes.

Mmm. Hotcakes.
Smothered in butter and syrup with a side of sausage..... mmmmm sausage *gurgle*
I'll get it when the non-'tard pack is <$299.
I feel the same way. I mean I was actually looking forward to the PS3 :eek:!! I know! I'm as shocked as you are! The fact is I simply can't afford it, not that I'll be able to find one when it comes out :rolleyes: Give me the non-online package with no hard-drive, all wired controllers, no usb, no BR decoder, and the rest of the jazz. Just make me a fucking gaming system. If they cut out all the crap, I bet they could build a value system people would be more inclined to buy. Say for $300? Now that's a competative price. I have doubts Sony will have an efficient, if even existent, online system. Live does online gaming for me just fine. I don't want another account, even if it's free. I want my playstation to play things, not connect to my toaster via bluetooth, or notify me via email when my washer is done with the spin cycle, or play movie formats I don't intend on buying.

Here's a brief timeline (http://www.ps3portal.com/brief-video-game-console-history-timeline.html) of console pricing history. Sony's been the only one to significantly raise the price from last generation to this generation.

[Redline]

"TO US, YOUR MONEY IS NO OBJECT!!!!" *Audience claps*

*groan*

[Twigz'N'Berries]

Well, at least the PS3 has made the HD standard...stupid MS. Very smart on their part. Trust me, the PS3 will sell very fast in the beginning. Then, when all of the early adopters have theirs, the 'casual' gamer will probably have a harder time justifying shelling out $500 - $600 bucks for a system.

Call me crazy, but with gas costing an arm and a leg, a lot of people have less disposable income to toss around.

[Taco]

I guess you need to define "selling fast". I define it as selling to plenty more than just hardcore gamers, and 500-600 bucks is going to put a wrinkle in those sales.

[bean19]

Well, at least the PS3 has made the HD standard...stupid MS. Very smart on their part. Trust me, the PS3 will sell very fast in the beginning. Then, when all of the early adopters have theirs, the 'casual' gamer will probably have a harder time justifying shelling out $500 - $600 bucks for a system.

Call me crazy, but with gas costing an arm and a leg, a lot of people have less disposable income to toss around.

I agree. . . hell, I am NOT a casual gamer by any definition of the terms, and I'm defnitely not going to spend $600 (the $500 option is ridiculous - if it isn't going to play Blu-Ray movies, they should just drop the whole Blu-Ray drive and make a $300 version).

It has incredibly similar specs to the X360. I'm not willing to pay an extra $100 for the key difference (the Blu-Ray drive) not to function as an HD movie player or $200 for the Blu-Ray drive to function but not be something I want or need. . . and also have great potential for causing really slow load times.

[AniAko]

I agree. . . hell, I am NOT a casual gamer by any definition of the terms, and I'm defnitely not going to spend $600 (the $500 option is ridiculous - if it isn't going to play Blu-Ray movies, they should just drop the whole Blu-Ray drive and make a $300 version).

It has incredibly similar specs to the X360. I'm not willing to pay an extra $100 for the key difference (the Blu-Ray drive) not to function as an HD movie player or $200 for the Blu-Ray drive to function but not be something I want or need. . . and also have great potential for causing really slow load times.

tsk tsk tsk....
The 360 is $300 remember. The $400 one is a discounted add-on package.
So you'll be paying $200 more for the drive, and $300 more for the BR movie playback functionality

[silv]

The PS3 is ridiculously over-priced. I do not care about blu-ray capability, I simply want something that can play awesome games.

$600 is a ripoff, not matter who is trying to spin it. I can't believe they are selling the 'stripped down' version that CAN'T EVEN BE UPGRADED.

That is a huge 'fuck you' to consumers.

[Taco]

I kind of doubt this was more of a desired price point than a required one.

More of a "fuck up" than a "fuck you".