Analyst: 80GB PS3 to be $499

[easi]

Industry analyst Michael Pachter expects the 80GB PlayStation 3 to drop in price to USD 499 once all stock of the 60GB model has sold out.

The 80GB model currently retails in North America for USD 599 with a copy of Evolution Studio's Motorstorm, but Pachter believes the newly introduced unit will drop in price for the standalone console.

"In our view, the Sony entry level price of USD 499 is here to stay," he said.

"We believe that there are presently 2 – 3 million 60GB PS3s produced and not yet sold, and expect the entire supply to be diverted to the US to honour the new lower price point.

"Once these units are sold through, we expect the company to lower the price of its 80GB model to USD 499 on a standalone basis."

Sony Europe boss David Reeves revealed last week the 60GB PS3 would be phased out in the US, leaving the 80GB SKU as the only option to consumers.

The analyst also predicted that Sony will again cut the price of the 80GB PS3 in early 2008.

"We expect the USD 499 price cut to be maintained until early next year, when the 80GB model will likely be cut again to USD 399," he said.

Sauce: GI.biz (http://www.gamesindustry.biz/content_page.php?aid=26751)

I know how much you guys love analysts so bon appetit.

[bapenguin]

That's a good point I suppose. They are going to drop the price to $499 and then remove the packins.

[Itchyeyes]

Pachter also said the 360 was going to drop in price at E3 :rolleyes:

[Rirath]

"We expect the USD 499 price cut to be maintained until early next year, when the 80GB model will likely be cut again to USD 399," he said.

Way to pull figures out of thin air. I hear they'll also have a pony as a pack-in.

[Vermillion]

So what you are saying is, don't buy the 60 gig PS3 because once it is sold out I can get the 80 gig for the same price, but because everyone understands that and is waiting on the 80 gig model at 499, the 60 gig will take forever to sell out, and thus I cannot get the 80 gig at the 499 price for the foreseeable future. Thus creating your own chicken-egg problem.

Harumph.

[Gorvi]

Damn, I haven't been saying that for a week now, have I?

[Zanzibar]

So, I guess we shouldn't buy the 60gb version then, and just wait for the 80gb at $499!

But..if EVERYONE waits...then...the 80gb price drop won't come. Hmm.

Conuuuundruuuuuum!

EDIT: Damn you, Vermy! ;)

[dynamik]

That's kind of what I was expecting. Just because they aren't making the 60s anymore, doesn't mean they don't have millions of them sitting around. By the time those are gone, they'll likely have a 160 or something else to fill the $600 spot and will move the 80 down to the $500.

[gojira]

Translation: Sucks to be Sony right now.

[PsychoticVile]

That actuallys assumes they sell through the current stock of 60gb PS3 anytime soon. I still see parents going to the stores this holiday and seeing the $499 PS3, $249 Wii & $299/$399 Xbox 360(might be even cheaper by then) and chose the Wii or 360.

[Zander]

They have nothing to base this on other than guessing. Seriously.

I hope this is true, but there is zero evidence other than a gut-feeling to say this is so.

[Yeti2005]

So is the plan to sell out the 60 GB, then sell out of the 80 GB w/ Motorstorm and then release the 80 GB alone for 499? I think there's going to be problems if there's an 80GB w/ Motorstorm stiing next to a 80 GB standard priced at 599 and 499 respectively.

[51|RandoM]

Translation: Sucks to be Sony right now.

You don't make a living as a translator, do you?

On a serious note, this is Pachter we're talking about. Lately, you'll do just as good flipping a coin, if not better than you will by listening to his near-term console market predictions.

But, yeah, hopefully this is true. Hopefully there will always be a $499(or lower)SKU available from now on. Most of the SDF has been saying this is how they think things will work... for good reasons. :p

[Devilturnip]

If they do drop it to $399 next year, we're getting to a price point that I'd feel comfortable with. I dropped $399 on a 360, and I could easily do it on a PS3. We'll see, though, I'm not exactly holding my breath.

[Dukefrukem]

I heard the new 80GB PS3 also blows you too when you take it out of the box for the first time.

[VTMarik]

Analysts?

Would that be the same class of analyst that keeps warning that both console gaming and PC gaming are over as each one goes through a sales boom?

[Wolvie]

So another analyst "expects" something without any evidence. Gee That NEVER happens. I hate analysts, they blather like drooling idiots and people lap it up simply because they say stuff people wanna hear. They're the attention whores of the financial world.

If they do drop it to $399 next year, we're getting to a price point that I'd feel comfortable with. I dropped $399 on a 360, and I could easily do it on a PS3. We'll see, though, I'm not exactly holding my breath.

I agree, thats a comfertable price point, and it SHOULD have been that to begin with. But Sony HAD to have a Blue-ray drive... fuckin jerks.

[TheFlyingOrc]

That's a good point I suppose. They are going to drop the price to $499 and then remove the packins.
What good point? He did not give a single REASON for his analysis! He simply outlined what he thought would happen without backing it up. No "point" was made!

[TheFlyingOrc]

Damn, I haven't been saying that for a week now, have I?
At least you gave REASONS for your opinion (dumb reasons they may be) - this guy gave none.

[Gorvi]

At least you gave REASONS for your opinion (dumb reasons they may be) - this guy gave none.
Hey, it's not my fault that he just skimmed my posts without actually getting any of the details. ;)

[Wolvie]

What good point? He did not give a single REASON for his analysis! He simply outlined what he thought would happen without backing it up. No "point" was made!

Uh yeah, WTF? He made no point... eh dude probably skim read the quote or sumthin.

[bapenguin]

What good point? He did not give a single REASON for his analysis! He simply outlined what he thought would happen without backing it up. No "point" was made!

Last night on the radio show I mentioned that if this happened, people would be pissed. That would be assuming the price of the 80GB model dropped to $499 and included the packin and whatnot a mere month or two after some people bought it at $599.

The point is (the one Pachter makes) is that Sony will remove the packins to justify the descrease in price.

[TheFlyingOrc]

Last night on the radio show I mentioned that if this happened, people would be pissed. That would be assuming the price of the 80GB model dropped to $499 and included the packin and whatnot a mere month or two after some people bought it at $599.

The point is (the one Pachter makes) is that Sony will remove the packins to justify the descrease in price.
MAAAAAAAAAAAYBE. Isn't it just Motorstorm? I don' think the consumer will see that as $100 worth of loss.

[Kamalot]

Just because this is the sensible thing to do does not mean Sony will actually go this route.

[Meatgortex]

This would be very difficult to pull off even if Sony wanted to do it.

The problem is that the 60Gb aren't going to all sell out at once. They've stopped making them, but some areas are going to run through their supply faster then others. At what point do you pull the trigger on a move like this?

When one store is out of $499 machines? OR When some % of stores are?
-If either of these are the case what do you do with the extra 60Gb machines that are left? Drop them to $399, but most of the country can't actually find them. Buy them back from stores and eat the cost of replacing the hard drives and re-boxing.

Do you wait and drop the price when the very last 60Gb has sold?
-In this case the vast majority of the country will be left with only the $599 SKU for weeks or months during the run-up to the holidays.

[51|RandoM]

I kind of think the reasons they'd drop it to $499 after the other SKU is sold out should be obvious.

If you're missing them, just check the ps3 sales figures every month after it was released.

[TheFlyingOrc]

I kind of think the reasons they'd drop it to $499 after the other SKU is sold out should be obvious.

If you're missing them, just check the ps3 sales figures every month after it was released.
I can't see them. They're...so SMALL!

Also, Sony cannot afford to sell these things at a $200 dollar loss every single Christmas. They need to chop off costs faster than $100 a year to drop less than $100 a year - and I doubt they're doing much better than that.

[Itchyeyes]

The 80gb PS3 comes out in August. That leaves less than four months if Sony plans on cutting the price before Christmas, less than 3 if Sony wants to cut the price in time for anyone to actually buy it before Christmas. It would be PR suicide for Sony to cut the price on a system that was just introduced 3 months previous, and like FlyingOrc mentioned, Motorstorm is not worth anywhere near $100.

[Itchyeyes]

I kind of think the reasons they'd drop it to $499 after the other SKU is sold out should be obvious.

If you're missing them, just check the ps3 sales figures every month after it was released.
It would make sense in the absence of the fact that they just had a pricing shakeup. If the only goal was to get the price as low as possible and boost sale, the logical thing to do would be to drop the EE from the 60gb version and cut the price on it as much as they could afford. But instead they phased out the 60gb version and introduced a new, more expensive, console in its place. I get the feeling that there is some other debate going on internally at Sony that is leading to these kinds of decisions, because from an economic point of view they make almost no sense.

[TheFlyingOrc]

It would make sense in the absence of the fact that they just had a pricing shakeup. If the only goal was to get the price as low as possible and boost sale, the logical thing to do would be to drop the EE from the 60gb version and cut the price on it as much as they could afford. But instead they phased out the 60gb version and introduced a new, more expensive, console in its place. I get the feeling that there is some other debate going on internally at Sony that is leading to these kinds of decisions, because from an economic point of view they make almost no sense.
It seems to me like an exec screamed "Get rid of that EE, I don't care HOW!" and then sent them all out of his office.

[Rafer]

-If either of these are the case what do you do with the extra 60Gb machines that are left? Drop them to $399, but most of the country can't actually find them. Buy them back from stores and eat the cost of replacing the hard drives and re-boxing.

I don't think they'll have a problem selling any remaining 60gb machines, remember they're likely the last ones with a hardware emulator. I can see it now "Get the rare 60gb model with Emotion Engine, only 3 left, $550." This is assuming Pachter is right about the $499 80gb model.

[easi]

How much does the EE chip cost anyway? I think they should keep it in or at least have a premium SKU that uses it. Rather than rewarding early adopter fanbois then turning around and saying HAHA FUCK YOU to the rest of us.

[TheFlyingOrc]

I don't think they'll have a problem selling any remaining 60gb machines, remember they're likely the last ones with a hardware emulator. I can see it now "Get the rare 60gb model with Emotion Engine, only 3 left, $550." This is assuming Pachter is right about the $499 80gb model.
I don't think the hardware emulation is something the average consumer cares about too much. The price is all that matters. I don't see a scenario where they don't move those units - the question is how many of the 80gigs they are going to sell this Christmas. Without a price drop and no huge releases? 2 million or less, I'd wager.

[Kamalot]

I don't think they'll have a problem selling any remaining 60gb machines, remember they're likely the last ones with a hardware emulator. I can see it now "Get the rare 60gb model with Emotion Engine, only 3 left, $550." This is assuming Pachter is right about the $499 80gb model.
That would mean admitting that the software emulation isn't as good as hardware emulation, and that people prefer full backwards compatibility.

How could they possibly do that when they are asking for $100 more to buy a PS3 WITHOUT hardware backwards compatibility?

[Trazzlo the Magnificant]

It would be amusing if eBayers were buying the PS3's to resell then in September for a higher price than Sony's price for the 80GB model.

[Telefrog]

A $200 price decrease is asking for way too much. It makes no financial sense to take a loss that large per console, especially when the attach rate is so low.

Can we just stop posting analysts predictions as news?

[Kamalot]

A $200 price decrease is asking for way too much. It makes no financial sense to take a loss that large per console, especially when the attach rate is so low.
Not to mention it would be a huge admission that their initial pricing was way off, and making all the early adopters feel more screwed than they already do.

[Zanch]

This is what a smart company would do, but Patcher left out one important detail: Sony has proven itself to be anything but.

[DaXIthR]

Wouldn't Sony be tempted to release another $599 package when the 80GB version drops to $499? You know, for that whole profitability thing...

I wish Sony would start nicknaming their SKUs. I'm getting tired of referring to them by their HDD size. Frickin' Sony....

[TheFlyingOrc]

Wouldn't Sony be tempted to release another $599 package when the 80GB version drops to $499? You know, for that whole profitability thing...

I wish Sony would start nicknaming their SKUs. I'm getting tired of referring to them by their HDD size. Frickin' Sony....
That's it. From now on, I'm calling them Core, Premium, and Elite. I'll let MS name their consoles.

[Kamalot]

$499 is still too much for a game system without a great gaming library. If I wanted to buy a system that will sit unused near my screen, I could just buy a Wii and save $249.

*oh snap!* :D

[51|RandoM]

Also, Sony cannot afford to sell these things at a $200 dollar loss every single Christmas. They need to chop off costs faster than $100 a year to drop less than $100 a year - and I doubt they're doing much better than that.

They can't afford the alternative either.

You don't wave a magic wand and suddenly cut your productions costs in half. It just doesn't work that way.

Just look at the company with the most money in the bank, with the console that has been crying out for a price cut for the longest time and hasn't gotten one.

[TheFlyingOrc]

They can't afford the alternative either.

You don't wave a magic wand and suddenly cut your productions costs in half. It just doesn't work that way.

Just look at the company with the most money in the bank, with the console that has been crying out for a price cut for the longest time and hasn't gotten one.

That's true. It seems to me that the only reason Microsoft hasn't cut the price is that they are waiting to steal Sony's thunder.

[51|RandoM]

It would make sense in the absence of the fact that they just had a pricing shakeup. If the only goal was to get the price as low as possible and boost sale, the logical thing to do would be to drop the EE from the 60gb version and cut the price on it as much as they could afford. But instead they phased out the 60gb version and introduced a new, more expensive, console in its place. I get the feeling that there is some other debate going on internally at Sony that is leading to these kinds of decisions, because from an economic point of view they make almost no sense.

Newflash: The $599 80GB PS3 is less expensive to produce than the $499 60GB PS3 was.

They're doing just what you say the logical thing to do is, introducing a SKU that is cheaper to produce.

Where the problem comes is in making sure you sell all of those 60GB units first, and do so without poking a sharp stick in the eye of your early adopters. That is why the 60GB gets dropped to $499, that is why the 80GB gets a "limited time" packin of Motorstorm and a $599 pricetag.

[Kamalot]

That's true. It seems to me that the only reason Microsoft hasn't cut the price is that they are waiting to steal Sony's thunder.
Agreed. It looks like Microsoft is happy to allow Sony to suffocate under their own weight.

[Scull]

I tend to agree with Patcher that the 80GB PS3 will move to $499, and hopefully leave the $599 spot vacant forever. I think that the timing is really off though. If the estimates of 2-3 million 60GB PS3s is accurate and the system sells at ~20,000/week (NPD US numbers)we have upwards of 150 weeks worth of stock or just about 3 years.

Assuming that we have 6 weeks of frenzied buying for Christmas and triple or quadruple that we're still looking at ~80 weeks to clean stock out. So maybe by Christmas '08 we could see the 80 GB model move into the 60 GB price slot, but that is assuming that sales stay at current levels and make dramatic increases for Christmas. The PS3 hasn't had the opportunity to show us that something like that will happen, but it could, although it seems really unlikely.

If you want a PS3 at $499, I doubt you could get the 80GB new for at least another year.

[Kamalot]

Newflash: The $599 80GB PS3 is less expensive to produce than the $499 60GB PS3 was.
If that's the case, then why are they charging customers $100 more for it? Wouldn't it make sense to pass along savings to customers AND increase their install base?

[51|RandoM]

That's true. It seems to me that the only reason Microsoft hasn't cut the price is that they are waiting to steal Sony's thunder.

I agree with you on this point. On the other hand, I find Microsoft's obsession with Sony to be a pretty big mistake when Nintendo is eating both of their lunches.

Microsoft has the headstart they needed to compete with Sony. Pricing is not going to win that particular battle, imho, first party software and online presence is going to win that battle.

[Scull]

If that's the case, then why are they charging customers $100 more for it? Wouldn't it make sense to pass along savings to customers AND increase their install base?

You assume Sony makes sense any more. They have shown time and again that they are losing touch with a) gamers and b) reality.

[51|RandoM]

If that's the case, then why are they charging customers $100 more for it? Wouldn't it make sense to pass along savings to customers AND increase their install base?

If you price the 80GB with packin at $499, how do you expect to sell the 60GB without packin at $499?

The only people who will swallow that are the ones who give a shit about hardware backwards compatibility... which is a tiny segement of the market.

The new model HAS to be more expensive than the old model until the old model sells through. Makes perfect sense to me. Makes perfect sense to Pachter too, seems like. :)

[Kamalot]

If you price the 80GB with packin at $499, how do you expect to sell the 60GB without packin at $499?

The only people who will swallow that are the ones who give a shit about hardware backwards compatibility... which is a tiny segement of the market.

The new model HAS to be more expensive than the old model until the old model sells through. Makes perfect sense to me. Makes perfect sense to Pachter too, seems like. :)
I think your post quite nicely illustrates how completely Eff'd up the PS3 pricing is. Give the consumers less, which costs less to produce, and ask them to pay more hoping they don't pay attention.

[51|RandoM]

I think your post quite nicely illustrates how completely Eff'd up the PS3 pricing is. Give the consumers less, which costs less to produce, and ask them to pay more hoping they don't pay attention.

...or they can buy the $499 model at $100 savings over its previous price.

The $599 ps3 is no more eff'd up than the Elite. :p

If they could switch SKUs overnight, the $599 SKU wouldn't even exist. The day after the 60GB models sold out every store would be populated with 80GB models at the $499 price.

This is just going to be a bumpy transition. We could argue all day about how Sony could have done a better job of it, but I think the point is moot. Anectdotal evidence leads me to believe those $499 60GB models are selling a lot better than they were at $599, so most important mission accomplished.

[Kamalot]

Anectdotal evidence leads me to believe those $499 60GB models are selling a lot better than they were at $599, so most important mission accomplished.
Well, pardon me for a big *DUH*. There's a $100 price difference.

[bapenguin]

The reason Microsoft hasn't cut the price is simple, the summer months are the worst time to do it. If you want to make the biggest impact with a price cut, you do it in November before the holidays.

The only other time you cut the price, is when your competitors do it.

[TheFlyingOrc]

I agree with you on this point. On the other hand, I find Microsoft's obsession with Sony to be a pretty big mistake when Nintendo is eating both of their lunches.

Ah! That is assuming that Microsoft cares about winning the gaming battle!

Microsoft doesn't. They came into this battle for one reason: Sony said they were going to put a computer in the living room, a SIGNIFICANT threat to Microsoft's interests. MS doesn't care if they win, they only care if Sony loses.

[TheFlyingOrc]

If they could switch SKUs overnight, the $599 SKU wouldn't even exist. The day after the 60GB models sold out every store would be populated with 80GB models at the $499 price.

Which would DESTROY consumer confidence. From then on, nobody wants to buy a PS3 because they might just cut the cost tomorrow, and I will have wasted my money. They cannot do this in the way you describe. I could see them doing it in the spring - but that means those 2-3 million units have to carry over through Christmas. There WILL be a time in November-December where you can only buy a $599 PS3, mark my words.


This is just going to be a bumpy transition. We could argue all day about how Sony could have done a better job of it, but I think the point is moot. Anectdotal evidence leads me to believe those $499 60GB models are selling a lot better than they were at $599, so most important mission accomplished.
We all know that anecdote means almost nothing - of course sales are going to skyrocket the WEEK of a price drop. I also expect sales to be higher after the spike - how MUCH higher is the question. (and internet anecdotes are completely worthless - show me the store sales numbers, I'm predicting less than 1.5 times the sales.)

[Narcissus]

Surely the 80 GB PS3 will come down to $499, but doing it soon after the 60 GB stock has depleted burns everyone. People buying the 80 GB now at $599 lost $100, people buying a 60 GB at $499 lost 20 GB. It's going to be a careful balancing act choosing the best time to bring the 80 GB PS3's price down, limiting the backlash from existing customers while trying to minimise the time spent at a $599 price-point.

With less than six months left until Christmas, reducing the 80 GB before then feels too soon to me. That said, they're going to need every chance they can get.

[51|RandoM]

Well, pardon me for a big *DUH*. There's a $100 price difference.

call DUH all you want, doesn't change the fact it is moving consoles.

Go and cry more about how bad they're handling this, then call "duh" when it is getting the job done. Doesn't make much sense to me, guess I'll just chalk it up to business as usual:

http://www.2and2.net/files/469bcc8fd93d2.gif

[TheFlyingOrc]

call DUH all you want, doesn't change the fact it is moving consoles.

Oh - come on - respond to MY posts. I at least gave you a GOOD rebuttal. Shooting fish in a barrel isn't exactly a difficult sport.

[Kamalot]

call DUH all you want, doesn't change the fact it is moving consoles.

Go and cry more about how bad they're handling this, then call "duh" when it is getting the job done. Doesn't make much sense to me, guess I'll just chalk it up to business as usual:

http://www.2and2.net/files/469bcc8fd93d2.gif
That's a funny GIF!

Mine's not as animated, but could be considered equally fitting:
http://iplayalot.com/evav/51RandoM_backhoe.jpg

What I really wanna know is how you tapped into my webcam... :rolleyes:

[51|RandoM]

Which would DESTROY consumer confidence. From then on, nobody wants to buy a PS3 because they might just cut the cost tomorrow, and I will have wasted my money.

I don't think so. The only time I run into people like that is on sites like this.

If you're going to quibble about 20 gigs of diskspace, aren't you also going to quibble about hardware BC vs. emulation?

If you got the first SKU at $499, you got hardware BC: win.
If you got the second SKU at $499, you got +20GB: win.

This attitude about a new model suddenly invalidating a purchase of an older model is asinine. You spent $499 for what the PS3 offered, does it suddenly offer less because the price goes down sometime after you bought it, or because a new model comes out with mildly increased stats(which, in the case of the drive space, has no affect on the game experience)? Obviously not.

I'll reiterate, though, the pricetag is more important than the details. That is why the 360 and the ps3 released with multiple SKUs. That is why Nintendo is laughing at both of them.

Oh - come on - respond to MY posts. I at least gave you a GOOD rebuttal. Shooting fish in a barrel isn't exactly a difficult sport.

Short version: videogame fanatics who frequent websites like this and get their panties in a wad over the difference between 60GB and 80GB or hardware BC vs. emulation are not representative of the market.

:)

[TheFlyingOrc]

This attitude about a new model suddenly invalidating a purchase of an older model is assinine. You spent $499 for what the PS3 offered, does it suddenly offer less because the price goes down sometime after you bought it, or because a new model comes out with mildly increased stats(which, in the case of the drive space, has no affect on the game experience)? Obviously not.
Well, yeah - but I'm talking the consumer. Not myself. I'm certainly not an idiot. But think of it this way...

Somewhere, there is a human being EXCITED ABOUT THE BRATZ MOVIE (www.thebratzfilm.com/). I think it is safe to say that people are morons.

Remember, if you have to THINK to appreciate marketing, then what you have is FAILED MARKETING.

[Narcissus]

The only time I run into people like that is on sites like this.Consumers, in this day and age, are far more savvy than you appear to take them for. At the $500 price-point, the people buying are not the mindless zombies you envisage. They are, for a large part, going to inform themselves.

If you got the first SKU at $499, you got hardware BC: win.
If you got the second SKU at $499, you got +20GB: win.You can argue how much of a difference there is between the two versions all you want. The real problem is that what was bought for $600 can now be had for $500.

[51|RandoM]

Consumers, in this day and age, are far more savvy than you appear to take them for. At the $500 price-point, the people buying are not the mindless zombies you envisage. They are, for a large part, going to inform themselves.

You can argue how much of a difference there is between the two versions all you want. The real problem is that what was bought for $600 can now be had for $500.

That $100 difference in price? That covers all the fun you had with the old model before the new model came out.

This argument is so stupid. Technology is introduced, and over time the price goes down. That is how shit works. Do you really think we should still be paying $400 for a quad speed CD-ROM just to protect the vanity of the people who bought them when they were first introduced?

I don't see people getting upset because 2006 models of cars sell for less in 2007? Where is the consumer uproar? Where is the sudden loss of confidence?

See, there is none. It a tempest in a teacup made up by people on sites like this who can't see the forest for the trees.

I'm not saying the average customer is stupid, I'm saying the people on sites like these are stupid, when it comes to this particular argument. Depreciation is not French to your average consumer.

[Kamalot]

It isn't an issue of depreciation. The issue is that consumers can buy a more capable system for $499, or a less capable system for $599. Consumers aren't completely stupid, and many other news sites are carrying the news now.

Everyone expects the price of electronics to drop. They don't usually expect companies to try and foist crappier systems on them at higher prices.

[TheFlyingOrc]

It isn't an issue of depreciation. The issue is that consumers can buy a more capable system for $499, or a less capable system for $599. Consumers aren't completely stupid, and many other news sites are carrying the news now.

Everyone expects the price of electronics to drop. They don't usually expect companies to try and foist crappier systems on them at higher prices.
I don't expect the average consumer to know that the hardware emulation is gone AT ALL.

[Narcissus]

Bluster.Should you need it pointed out to you, you were arguing that there's little difference between the versions. No-one here has tried arguing that prices shouldn't come down over time. It's the amount of time between price drops that's important.

Like I said in an earlier post, it's going to be a difficult balancing act for Sony getting the timing right on the reduction from $600 to $500 for the 80 GB PS3. Too soon, and they will provoke further negative publicity. Too late, and they continue pricing themselves out of the game.

[TheFlyingOrc]

Should you need it pointed out to you, you were arguing that there's little difference between the versions. No-one here has tried arguing that prices shouldn't come down over time. It's the amount of time between price drops that's important.

Like I said in an earlier post, it's going to be a difficult balancing act for Sony getting the timing right on the reduction from $600 to $500 for the 80 GB PS3. Too soon, and they will provoke further negative publicity. Too late, and they continue pricing themselves out of the game.
I don't think they're dropping until after Christmas, which makes the drop nearly worthless.

[Narcissus]

I don't think they're dropping until after Christmas, which makes the drop nearly worthless.Yeah, dropping the 80 GB PS3's price six months after the 60 GB is gone and it's a painless hardware refresh, dropping it before then and it feels like I've been deceived.

However, I think Sony are going to need a $499 console on the market this Christmas to prevent the PS3 from falling further behind the competition.

[Metal]

Why in the world would Sony come out with a 80 GB SKU with a pack in game this year, and then turn around and sell the same system without the game for $100 less. It makes no sense, and would be shafting anyone who bought this system in the next few months.

The PS3 will be $600 throughout Christmas as soon as the 60 GB SKU is sold out.

[Chainblast]

Why argue so much about this? If you want a PS3, buy a PS3. Sell your PS2 for $50 and get the 60 for $449. Are you seriously going to bitch and moan about that? You guys obviously don't have that much of an interest in the system, which is fine, just stop complaining about a moot point.

[Narcissus]

Why argue so much about this? If you want a PS3, buy a PS3. Sell your PS2 for $50 and get the 60 for $449. Are you seriously going to bitch and moan about that? You guys obviously don't have that much of an interest in the system, which is fine, just stop complaining about a moot point.You noticed this is a game site? Heaven forbid people have an interest in talking about them!

[TheFlyingOrc]

Why argue so much about this? If you want a PS3, buy a PS3. Sell your PS2 for $50 and get the 60 for $449. Are you seriously going to bitch and moan about that? You guys obviously don't have that much of an interest in the system, which is fine, just stop complaining about a moot point.
Blast it all - we are discussing Sony's market position, because we find it interesting.

One of us is sitting here wondering what Sony is doing, baffled by their decision, and having fun trying to understand how the market is moving. The OTHER one is throwing a tantrum because people aren't talking about how much they love his system. (hint: You are not person 1)

[jadkins555]

I get the feeling that there is some other debate going on internally at Sony that is leading to these kinds of decisions, because from an economic point of view they make almost no sense.

N'Gai said on 1UP Yours last Friday, after speaking to Kaz Hirai, that he was under the impression that Kaz had been wanting to get the price down for a while, but the powers that be at Sony wouldn't allow him to lower it. So they came up with the limited $599 SKU as a comprimise.

[Fartacus]

So what you are saying is, don't buy the 60 gig PS3 because once it is sold out I can get the 80 gig for the same price, but because everyone understands that and is waiting on the 80 gig model at 499, the 60 gig will take forever to sell out, and thus I cannot get the 80 gig at the 499 price for the foreseeable future. Thus creating your own chicken-egg problem.

Harumph.

Unless you know that the 60GB model has hardware BC, while the the 80GB model has software emulated BC. That eliminates the chicken-egg problem. If you're inclined to get a PS3 and are at all interested in backwards compatability, now's the time to buy before the 60GB models are gone.

[Dukefrukem]

so the only bad thing the ps3 nay sayers are saying now is if the 80 GB PS3's doesnt get dropped? maybe by then they'll release a 100 GB PS3 for $599 again... and so on... and so on....

[dirtbag]

call DUH all you want, doesn't change the fact it is moving consoles.

Are there any real sales figures out since the clearance sale started? I'm curious as to what, if any, impact the cut is really having.

[Sloth]

this just in! my cock is predicting that the PS3 will come with a 1000 dollar rebate and granted up to 3 wishes!

[Trazzlo the Magnificant]

so the only bad thing the ps3 nay sayers are saying now is if the 80 GB PS3's doesnt get dropped? maybe by then they'll release a 100 GB PS3 for $599 again... and so on... and so on....
And people will keep waiting to buy it later, ... and so on... and so on....

[Purple Santa]

And people will keep waiting to buy it later, ... and so on... and so on....

Later and so on is certainly me. I'm going to wait for that second price drop. At $399 being sometime next year, there will be enough for me to justify not eating for a few weeks. Although i'm secretly hoping someone buys me one for Xmas...then I can be a Sony fanboy too ;)