Sony CEO Dismisses Calls for PS3 Price Cut

[Andy Chalk]

Sony CEO Dismisses Calls for PS3 Price Cut

Activision's [http://www.sony.com] subtle threat to drop support for the PlayStation 3 if a price cut doesn't come soon, saying CEO Bobby Kotick "likes to make a lot of noise."

Sony has steadfastly refused to reduce the price of the might have to stop supporting Sony [http://www.playstation.com]."

That threat doesn't seem to bother Stringer, however, who brushed off both Kotick's remarks and the suggestion that a PlayStation 3 price reduction would happen anytime soon. "He likes to make a lot of noise," he told Reuters [http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0735329820090708]. "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 holding the price point on the console, Stringer added, "I [would] lose money on every PlayStation I make -- how's that for logic?"

Despite his comments, Tokyo Game Show [http://www.gamesindustry.biz/articles/stringer-again-dismisses-ps3-price-cut-talk] are "rife," noting that some analysts believe the company's guidance for its current fiscal year suggest a reduction planned for sometime in the latter half of 2009.


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[Teh_Doomage]

Wouldn't it at the end of the day, yes, you lose money on each Playstation, but wouldn't the volume of sales at a cheaper price point make up for the loss, more so if they sell more peripherals? Talk about somewhat bad business practices.

 

[CinosNroca]

Wouldn't it at the end of the day, yes, you lose money on each Playstation, but wouldn't the volume of sales at a cheaper price point make up for the loss, more so if they sell more peripherals? Talk about somewhat bad business practices.

I concur. If the price went down, I might actually consider buying one.

 

[Sixties Spidey]

Well sony's basically caught between a rock and a hard place now.

You have consumers, Activision and all of these other companies saying, "We have had enough of your bullshit, lower the fucking price", and then you have Stringer on the other hand saying
"Listen you fucktards, this thing is expensive to create, and I lose money on every Playstation made."

It's a very wishy washy situation, but the question is, wouldn't they lose less and gain MORE if they lowered the price point?

 

[midpipps]

Wouldn't it at the end of the day, yes, you lose money on each Playstation, but wouldn't the volume of sales at a cheaper price point make up for the loss, more so if they sell more peripherals? Talk about somewhat bad business practices.

Actually they already loose a decent amount of money on the system at the price they sell them now yes they might sell more peripherals. But there are also a lot of aftermarket peripherals and such that work with the system such as headsets. You can use any bluetooth and most USB headsets with the system. I am sure they would love to cut the price and get people off their backs. But they have to look at how they would recoup that loss and that is not an easy thing to do in big business.

When asked about the logic of holding the price point on the console, Stringer added, "I [would] lose money on every PlayStation I make -- how's that for logic?"

I really don't understand why they would add the (would) in there considering him saying "I lose money on every playstation I make" is a true statement already.

 

[Frank_Sinatra_]

Well sony's basically caught between a rock and a hard place now.

You have consumers, Activision and all of these other companies saying, "We have had enough of your bullshit, lower the fucking price", and then you have Stringer on the other hand saying
"Listen you fucktards, this thing is expensive to create, and I lose money on every Playstation made."

It's a very wishy washy situation, but the question is, wouldn't they lose less and gain MORE if they lowered the price point?

Depends really, especially when people say this:

If the price went down, I might actually consider buying one.

Sony doesn't want you consider buying a PS3 if the price went down. Sony wants to know that you will purchase their system.

 

[Bat Vader]

Wouldn't it at the end of the day, yes, you lose money on each Playstation, but wouldn't the volume of sales at a cheaper price point make up for the loss, more so if they sell more peripherals? Talk about somewhat bad business practices.

I concur. If the price went down, I might actually consider buying one.

I as well. No matter how much I want to play Heavy Rain and possibly The Last Guardian no console that costs that much is worth it just to play two games.

I love how the CEO never said anything about the consumers though. They won't bite the hand that feeds them.

 

[MrBrightside919]

Sony is shooting themselves in the foot...again...

 

[Internet Kraken]

Damn. I was actually going to buy a PS3 if the price dropped.

 

[Macar]

Is it just me or does this guy seem really obnoxious?

Not even what he says, just how he says it.

 

[Teh_Doomage]

Wouldn't it at the end of the day, yes, you lose money on each Playstation, but wouldn't the volume of sales at a cheaper price point make up for the loss, more so if they sell more peripherals? Talk about somewhat bad business practices.

Actually they already loose a decent amount of money on the system at the price they sell them now yes they might sell more peripherals. But there are also a lot of aftermarket peripherals and such that work with the system such as headsets. You can use any bluetooth and most USB headsets with the system. I am sure they would love to cut the price and get people off their backs. But they have to look at how they would recoup that loss and that is not an easy thing to do in big business.

True, but they make no money what-so-ever if a console just sits on the shelf unsold.

 

[CinosNroca]

Well sony's basically caught between a rock and a hard place now.

You have consumers, Activision and all of these other companies saying, "We have had enough of your bullshit, lower the fucking price", and then you have Stringer on the other hand saying
"Listen you fucktards, this thing is expensive to create, and I lose money on every Playstation made."

It's a very wishy washy situation, but the question is, wouldn't they lose less and gain MORE if they lowered the price point?

Depends really, especially when people say this:

If the price went down, I might actually consider buying one.

Sony doesn't want you consider buying a PS3 if the price went down. Sony wants to know that you will purchase their system.

Let me clarify: if there were more than just 2 or 3 games worth a hoot for the system, I would definetely buy it.

 

[EnglishMuffin]

Sony is going to go the way of the US auto industry at this point.

 

[HardRockSamurai]

Honestly, a price drop is all the convincing I'd need to go out and buy a PS3. Come on SONY, use your heads!

 

[Siegreich]

You know there's no added costs to the the ps3 like there is for the 360, you have to pay for online play, pay if you want wi-fi, you have to get a warranty in case of red ring... over the course of a couple years you'll spend more on your 360 than you would on a ps3.

 

[MK Tha Rebel]

A price cut is NECESSARY. That's the main (and only, to my knowledge) complaint about the PS3. Sony would start making money off the PS3 if more people owned them. Then they'd buy the add-ons and extras, because those are priced pretty well.

But fine, you don't want to cut the price. Here's an alternative plan, Mr. CEO, free of charge. Sell PS3s in separate parts like the X-box 360. Sell a full PS3 at the normal price, but also sell a core system with no hard drive, no wireless, less USB ports, and, well, WHATEVER you can cut out and sell separately. Sure, if you buy a core PS3, a hard drive, and wireless adapter separately it would end up costing MORE than a full PS3 (Like it does with the 360) but hey, mo' money mo' money.

Sony, you make great products, by you guys know nothing about marketing.

 

[cleverlymadeup]

not sure why everyone wants a price cut, they are both around the same price right now as it is

they are losing money on them or were at the beginning, i'm not sure if it's evened out but they do need to make some of the money back that they did lose originally. i'd like to see ANYONE constantly lose money on their product and willing lose more money when someone says "cut your price"

 

[KSarty]

I honestly think the PS3 is as cheap as it can be at this point in the game. Buying a 360 with a hard drive, wireless internet, and a years worth of online subscription (all of which the PS3 comes with already included) brings you to $450 according to Best Buy. The PS3 right now is $400, what is the problem here?