Sony Re-examining Price/Volume Budgeting Process for PS3
The Financial Times [subscription required] (Britain's infamous 'pink paper') is reporting that Sony is re-examining their PS3 price/volume budgeting process.
Quote:
Sony is reconsidering its pricing strategy for the PlayStation 3 in an effort to ignite sluggish sales in Japan and the crucial US market.
Ryoji Chubachi, Sony's president, said yesterday: "We are re-examining our [PS3] budgeting process in terms of pricing and volume. Sales assumptions change and the market is competitive. We are in the midst of revisiting our strategy for the PS3." Mr Chubachi also said he thought Sony had hit its bullish shipment target of 6m consoles at the end of March.
I guess it's only a matter of time before someone else at Sony says Chubachi's comments were taken out of context.
Is there anybody out there who doesn't think Sony is continually re-examining their budgeting/pricing, anybody? Bueler? Bueler?
Almost funny. Some companies do constantly examine their budgeting process, but you simply don't see the same level of 'panic' or uncertainty at Microsoft or Nintendo. That's why this is news.
Well I hope there is a price drop pretty soon. I'd like to own a PS3 by the end of the year (Christmas gift, hopefully!). If it stays at $600 I know that will not happen though.
Almost funny. Some companies do constantly examine their budgeting process, but you simply don't see the same level of 'panic' or uncertainty at Microsoft or Nintendo. That's why this is news.
Uh, panic, uncertainty? You really get that out of proactively considering your pricing, especially when that is a key factor in a three player war for marketshare?
That isn't panic, that is common sense.
Getting too much peer pressure from the other reds?
Uh, panic, uncertainty? You really get that out of proactively considering your pricing, especially when that is a key factor in a three player war for marketshare?
That isn't panic, that is common sense.
You're missing the point...
If Microsoft and Nintendo are doing something similar, then it's not being reported. Why is that? Could it be because there's no panic or uncertainty with their next generation entries? The panic and uncertainty statement is more reflective of things overall with Sony, not just this one instant.
Uh, panic, uncertainty? You really get that out of proactively considering your pricing, especially when that is a key factor in a three player war for marketshare?
That isn't panic, that is common sense.
Are you really suggesting that Sony isn't under greater pressure than the others to drop console prices? Really?
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Quote:
Originally Posted by Johan
My God, IrishWhiskey, you were right about everything!
If Microsoft and Nintendo are doing something similar, then it's not being reported. Why is that? Could it be because there's no panic or uncertainty with their next generation entries? The panic and uncertainty statement is more reflective of things overall with Sony, not just this one instant.
So show us the other two pieces of the Financial Times where they interviewed Microsoft and where they interviewed Nintendo. Show us the opening of the Financial Times where they stated they were having the interview to address the panic and uncertainty about the PS3.
Absence of evidence is not evidence of absence.
You're adding those two words "panic and uncertainty" to add spice to what is at its heart just business as usual.
FYI, I'm not missing the point at all, seeing as how every other story has it as an underlying theme.
So show us the other two pieces of the Financial Times where they interviewed Microsoft and where they interviewed Nintendo. Show us the opening of the Financial Times where they stated they were having the interview to address the panic and uncertainty about the PS3.
Absense of evidence is not evidence of absense.
You're adding those two words "panic and uncertainty" to add spice to what is at its heart just business as usual.
FYI, I'm not missing the point at all, seeing as how every other story has it as an underlying theme.
Um, you're seeing something which clearly isn't there.
I added the words panic and uncertainty because that's what I'm picking up from Sony. Not once did I claim the words were authored by anyone else.
Your assertion that the linked article only has merit if the Financial Times asked the same questions of Microsoft and Nintendo may be valid in some respects, but not so in this case as this is another example of Sony's struggles. Neither Microsoft nor Nintendo are feeling the heat the same way Sony is, and that's why this is relevant.
You've finally made the transition! I never noticed you do that before. Used to always be the British "Sony ARE...." rather than the American "Sony IS..."
You've been absorbed. You are now one of us. Resistance is futile.
$499 would be sooo much easier to swallow for me than $599. I don't know, there's something about that extra $100 that just pushes it over the edge.
I think even $500 is WAY too much for a console... but that's just me.
I honestly don't know why I'm wishing for a price drop, since I know it still wouldn't be enough for my cheap ass. I just can't see paying over $350 for a console. $500 - $600 is just absurd, if you ask me.
Not to bring up THAT whole discussion again... just stating my personal limits.
You've finally made the transition! I never noticed you do that before. Used to always be the British "Sony ARE...." rather than the American "Sony IS..."
You've been absorbed. You are now one of us. Resistance is futile.
Sony is a singular company, hence the correct word would be "is" when talking of the whole company. At least that's my thinking.
300 dollars is already pretty damn expensive for a console (atleast for me). 200 dollars is the sweetspot for the majority and it seems previous data seem to support this notion if my memory serves me right.
Anyways, it's impossible for Sony to win this war, even IF they dropped the price. Unless they dropped it all the way to 300. THEN they have a chance, but they will probably only start making a profit after 5 years time.
I'm so confused now. 
