Best Buy Dropping the 20G PS3?

[Commissar Rob]

According to sources quoted by Joystiq, retailer Best Buy will no longer offer the 20G model of the PS3. (http://www.joystiq.com/2007/03/17/best-buy-done-with-ps3-20gb/)
With Best Buy's decision to no longer carry the unit, a major retailer has walked away from the 20GB table, obviously the margins were better on the 60GB model. Sony says they are still producing 20GB models.Personally, I never understood why either Microsoft or Sony divided their user bases with two models. Maybe the market is helping at least Sony change that decision.

[Deadend]

They did it so that stupid people who think they are cheapskates will buy their systems. Or so when you buy the more expensive version, you feel like your getting a bargain for all the extra stuff in the box.

[CaptStu]

Pretty soon Best Buy will be dropping the 60-gig model. :D

Someone had to say it.

[Camel]

Before the PS3 came out, a lot of people on the site said that the 20G model was the one to get.

For those who know more than me, did that turn out to be the case? Or are you better off with the 60G model? Just curious since I plan on getting a PS3 someday.

[Heretic Machine]

But, the 20g model is the only one I'd buy... ever. I'm not paying $600 for a console in the foreseeable future. $500 was pushing it, really pushing it, but if they did enough with it this year, or next year, then I would probably of ended up with a PS3.

Not for $600.

[fitbabits]

It's not just Best Buy - other retailers have all but abandoned the 20GB model. As have Sony, it must be said.

[Zeal]

It seems to me that both Microsoft and Sony realized splitting the userbase was ultimately a bad move. Sony criticized Microsoft with dual SKUs and then decided to do the same thing.

In comparison, I'd say that Microsoft's decision not to include a mandatory harddrive with the 360 was the worst of the two. Sony can very easily phase out the 20gig with no longterm disadvantages, but how can Microsoft kill their core system? I don't think it would be easy.

The only way would be to phase out the core 360 and force developers to start utilizing the harddrive from the get-go.

Dual SKUs = always bad

[Johan]

Dual SKUs = always bad

Bad for developers, but genius marketing. It allowed both MS and Sony to claim a $100 lower price point for their systems (which, btw, BOTH continue to do...as do fanboys of both).

In the case of MS, it also allowed for the sale of overpriced memory thingies (what the heck are they called? I'm tired), and overpriced HDD accessory add-ons.

I disagree with you. In marketing; terrific idea. For gaming and gamers? Not so great...but it was never meant to be great for the purchaser, just the company.

[Gorvi]

While you could say that the 20GB model is the way to go for the more tech savy who would actually replace the HDD, the 60GB just makes more sense for your more common gamer. The WiFi is nice to have (MS needs to make this standard in the rumored new model 360, even the Wii has that built in) and I've actually used the card readers more than I thought I would. That being said, the 60GB needs to drop to $500 standard to stay competitive. That'd be a much easier price to swallow for what you get in the box.

[danhoo]

This basically confirms Kamalot's recent suspicions about the demise of the 20Gig model, I think.

I was in a Best Buy on Friday and they had a nice pyramid of PS3's. It seemed like they were all 60Gig models, but out of curiousity I pushed a few aside and found a couple 20Gigs hidden in the middle. Then the pyramid collapsed and they kicked me out of the store.

[mkelehan]

I was in BB today, and there weren't even labels for 20GB systems. I also went to a couple Targets. At least 3 60GB PS3s in each store, but not a 20GB in sight.

[The Continental]

Yeah, this sucks.

I was hoping to ask the fam for a 20GB model for the upcoming birthday, as I have no use for WiFi and had planned on adding a much larger drive at a later date if needed. The sticker shock of the 60 giger is likely to kill that dream though.

[Zeal]

I think it's mainly because Sony's losing money on the 20gig and they don't like that.

[Rafer]

It would be sad if PS3s aren't selling because people are waiting for the 20GB to get back in stock. Sony should either get more systems out there or announce that they stopped making them.

Sorta the opposite from December, I remember being in line for Wii and they were also selling PS3s. All the 60 gig systems went first, nobody wanted the 20 gig systems after being in line for hours.

[The Continental]

I think it's mainly because Sony's losing money on the 20gig and they don't like that.Yeah, but that's the name of the game in the console industry (no pun intended). You can't build your entire business on the razor/blade model and then abandon the lower margin razor which is more likely to appeal to the average consumer, particularly when your interest in the blades is two fold (games and Blu-Ray).

[Wolvie]

Lesson learned here? No gaming system should have two SKU's. make one format, one price and go with it. It's easier for everyone that way.

[Craigtheplague]

It seems to me that both Microsoft and Sony realized splitting the userbase was ultimately a bad move. Sony criticized Microsoft with dual SKUs and then decided to do the same thing.

In comparison, I'd say that Microsoft's decision not to include a mandatory harddrive with the 360 was the worst of the two. Sony can very easily phase out the 20gig with no longterm disadvantages, but how can Microsoft kill their core system? I don't think it would be easy.

The only way would be to phase out the core 360 and force developers to start utilizing the harddrive from the get-go.

Dual SKUs = always bad

Spot on! Hard drive caching in games (if that makes a difference) and >50MB arcade limit (I know it's higher now) could have been better for developers.
Bad for developers, but genius marketing. It allowed both MS and Sony to claim a $100 lower price point for their systems (which, btw, BOTH continue to do...as do fanboys of both).

In the case of MS, it also allowed for the sale of overpriced memory thingies (what the heck are they called? I'm tired), and overpriced HDD accessory add-ons.

I disagree with you. In marketing; terrific idea. For gaming and gamers? Not so great...but it was never meant to be great for the purchaser, just the company.
Spot on also! The core makes the premium seem like a bargain with the MSRP of accessories. In reality, the cost of accessories that separate core from premium is way less than $100. Same thing with Sony's SKUs.

[jpublic]

Spot on also! The core makes the premium seem like a bargain with the MSRP of accessories. In reality, the cost of accessories that separate core from premium is way less than $100 for Microsoft or Sony to manufacture.

Edited for correctness. The retail price of the accessories is far more than the difference.

Edit: Why is it 'edited' always looks like it's misspelled to me?

[Tyrant]

Best Buy and Futureshop up here in Canada haven't advertised the 20gb unit on their site for a few months now.

I suspect part of the decision might have to do with retail/warehouse space and the fact that while the 20gb version is $100 less than the 60gb, it's still pretty expensive. So you've got the choice of expensive and more expensive. As such, why bother carrying both if people think the more expensive one is superior and they're willing to spend at least $600CAD to begin with?

[Orphiuchus]

500 is still way to much for a console. But then, games suck now days anyway. meh.

[Rafer]

Best Buy and Futureshop up here in Canada haven't advertised the 20gb unit on their site for a few months now.

I could of got a 20GB in December when they were $550 Canadian. Now in Canada the price of the 60GB went up in most stores to $700. Even if they slash the price later this year I might end up paying more for a system with no hardware emulation (just speculation) and a larger HDD that I'd probably replace anyway. Maybe I should of got one in December.

[jpublic]

Rafer - check EBGames, they're sticking to the original price last I checked, which was about 4 days ago.

[antoniogaud]

I have the 20 gig and I like it just fine. I have no need for the wifi (have a wired line) and so far, my HDD is pretty much empty anyway.

[Opty]

Yeah, but that's the name of the game in the console industry (no pun intended). You can't build your entire business on the razor/blade model and then abandon the lower margin razor which is more likely to appeal to the average consumer, particularly when your interest in the blades is two fold (games and Blu-Ray).

Except that model didn't appear until Microsoft entered the game. Before then every console was sold for more than cost.

[Royal Fool]

Hey, what happened with Kamalot's wager? I remember when he made a bet to have someone photograph themselves next to a 20GB unit in-store. Did someone get a picture and win the GBA?

[Tyrant]

Before then every console was sold for more than cost.

???
As far as I'm aware, no console has ever sold for more than cost, except maybe for the Wii.

[childish]

i work at best buy...they are not completely dropping it...they will still sell it online but just not instore

[TrackZero]

Personally, I never understood why either Microsoft or Sony divided their user bases with two models.

Well, to put it rather bluntly, that's because you don't understand business. (I'm not being a jerk, but I'm not about to explain the economics of having more than one SKU, yet again.)

[RorschachCCCLX]

My GM at Gamestop said that as far as GS was conserned, the 20 gig PS3 doesn't exsist anymore. Our district don't get any in distrobution shipments, so its a good indacation that Sony has little intrest in selling them anymore.

[TrackZero]

In the case of MS, it also allowed for the sale of overpriced memory thingies (what the heck are they called? I'm tired)

Memory cards. ;)

[MrE]

I doubt they will fully drop it. The 20Gb SKU will probably be downsized so that every 10 60Gb models in stock, they have one 20Gb unit.

[bone_matrix]

I work in the electronics dept. at a Target in Omaha, Ne, and I haven't seen 20 gig PS3s for at least a couple months. Course, we don't sell more than one PS3 a week, so I could see why we don't get a lot of stock...

[Slack3r78]

Is this the part where I pretend the 20GB wasn't a marginally less bad joke than the core 360 and express shock and awe at this new development?

[Blue]

Sony's differing SKU's never really left a bad taste in my mouth like the Core version did. It just seemed less of a sucker buy for unsuspecting parents looking to nab a Christmas deal.

With that, I suppose this announcement solidifies my understanding that I'm not meant to own a PS3 for quite some time. Were I to pick one up, the 20G would be the route I'd take as I don't really need a 60G drive nor the other things that come along with that version. I understand the point of having two models here (again, unlike the 360 split) as one isn't an entire balls-out gimped version of the other, but it's frustrating when they up and yank the cheaper SKU so quickly in it's cycle. That both seems foolish and a kick in the face to those who are now stuck with some extra unnecessary baggage that's costing them an extra hundred on top of an (at least to myself) over-priced system.

I dunno, maybe I'm just thinking out loud with this and dropping some angst on the boards. If I could find a Wii I would completely buy it right now just out of spite. And then my wife would ground me.

[Magnanimous Gnome]

Looks like Sony lied again. Krazy Ken ftw. :rolleyes:


I seem to have lost the password for my Kamalot account, and for some reason I can't get it e-mailed to me. Can one of the reds help me with this?


In all seriousness, I really hope some major lessons are learned this gen. MS and Sony have both had some pretty big fuckups that I hope are never repeated again.

[KingGorilla]

Now is it Best buy, or the Super Secret Best Buy?

[Vandenh]

There should never have been a 60GB model.

[Slack3r78]

There should never have been a 60GB model.
That's actually probably the most sensible thing posted in this thread.

[bapenguin]

Phil Harrions (i think it was Phil) basically admitted this in a recent interview. He said something along the lines of - "People aren't finding the 20gb models not because we aren't making them, but because retailers aren't ordering them. We only make and ship what the retailers order"

[anakin876]

???
As far as I'm aware, no console has ever sold for more than cost, except maybe for the Wii.

Supposedly all of the nintendo consoles have sold for more than cost - but that may have been crazy fanboy ravings.

[RMan]

Personally, I never understood why either Microsoft or Sony divided their user bases with two models.
Sony’s multiple SKU doesn’t ‘divide their user bases’. The 360’s SKU differences were significant enough to do this, but the PS3’s are not. Giving people a choice is not inherently a bad idea, IMO the PS3 SKUs split the market about as much as Nintendo did by having multiple colored GCs.

[Evil Avnovice]

I think it's more: "Why did Sony critize Mircosoft for their "Core" pack, then turn around and do the exact same thing?"

[Johan]

STILL can't even order a 20 GB model from Sony's own online store.

The thing is dead. Best Buy didn't kill it; Sony did.

Sony’s multiple SKU doesn’t ‘divide their user bases’. The 360’s SKU differences were significant enough to do this, but the PS3’s are not. Giving people a choice is not inherently a bad idea, IMO the PS3 SKUs split the market about as much as Nintendo did by having multiple colored GCs.

We'll wait for the dropping of the EE chip from all PS3's to remind you of split user-bases, then... :D

[Pal]

I personally liked the look of the 20GB model better. The 60GB version was a little too "bling" for me. My friend got a 20GB, and it has been great so far; with HDMI now standard, it isn't an inferior iteration by any extent. When I decide to purchase a PS3, I'm hunting down the 20GB one for sure; the little differences between the two models are not worth $100.

[RMan]

We'll wait for the dropping of the EE chip from all PS3's to remind you of split user-bases, then... :D
Hey, I'm not defending every move they make, just pointing out that this one is not directly comparable to MS’s multiple SKU situation just because one aspect of it is the same. As far as dropping the EE chip, I think that does kinda suck, I think they saw that the BC thing didn’t hurt the 360 much, so figured they could get away with it. I do have a feeling that their BC will suck even worse than the 360’s, since it’ll be kinda their second choice and likely won’t have as much time put into it, but we’ll see.

[Sensei-X]

Dropping the 20gb model from their stores is for lack of a better term, retarded. I've been at BB and GS and the 4 times someone has asked for the PS3, when they were informed they only have the $599 60gb model the customer has lost interest and walked away. I don't know how this reflects on the rest of the prospective buyers, but it seems that rather than selling more $600 models they may find themselves not getting the sale. If Sony wants to sell more 60gb and phase out the 20gb then they better damn well reprice the 60gb to $499 or come holdiay season 2007 they may have a long hard winter ahead of them.

[LordBeatnik]

Dropping the 20gb model from their stores is for lack of a better term, retarded. I've been at BB and GS and the 4 times someone has asked for the PS3, when they were informed they only have the $599 60gb model the customer has lost interest and walked away. I don't know how this reflects on the rest of the prospective buyers, but it seems that rather than selling more $600 models they may find themselves not getting the sale. If Sony wants to sell more 60gb and phase out the 20gb then they better damn well reprice the 60gb to $499 or come holdiay season 2007 they may have a long hard winter ahead of them.

You do have to wonder what they are thinking. The 20G seemed to be a great way to upsell to people who don't want to pay 600 for a console. Get them in the door for the 500 unit, and then sell them on the 60G features. "It's only 100 more! You're already shelling out 500, what's an extra 100?" Sony should be desperate for any customer who'll pay 500+ for a console.

Combine this with the EE chip removal, and you wonder if Sony's read the writing on the wall with respect to their pricing. The cheap Wii is not the irrelivent niche some predicted, and MS has had a year to build a game library and get their production costs down. How bleak would the PS3's next Christmas be if MS drops the premium xbox360 price 50-100 dollars and Sony is selling the PS3 for 600? Perhaps Sony is desperate to cut costs and stop some of their bleeding money because they will need to do a price cut far earlier than they planned if they want to avoid falling too far behind their competitors.