Sony Has Cut PS3 Production Costs By 70 Percent

[Brotherofwill]

Does this mean Sony finally is going to stop being an ass? Well, on the path. They should also get rid of having them being complicated for complication's sake. Doubt they will make me a fan, but if they let go of stubbornness, I won't be harsh on them anymore. (They could just keep being asses though and keep earning my hate, but Im gonna be optimistic)

Oh no! Not your hate, everything but that! Everyone hide!

Maybe it's connected to all the feature chopping the PS3's been subjected to.

The cost of those usb ports, last gen chipsets and card readers must amount to quite a lot in manufacturing.


I don't know, it seems like Sony are out to torpedo their own ship, they constantly state they are not going to cut the PS3's price and that it represents excellent value and so on, then they announce things like this.

It erodes their own arguments. Still, it could be worse, they could have cut PS2 backwards compatability as well, you'd have to be a complete and total bloody moron to do that...

They didn't announce this if I recall correctly. It was an investor meeting, the only reason people picked up on it is because they like to complain.

It is hardly shooting themselves in the foot to 'announce' cheaper production costs. The whole 'increased value' bit is more of a company motto, they'd still say it if the PS3 was 199$ or whatever.

but Fat Princess keeps me filled...

Nice one.

 

[hansari]

I was under the impression they did that so people would still buy PS2's...

Perhaps, but it doesn't really make business sense when second hand PS2's are so easy to find and cheap.

The question then is how much does backwards computability cost? More than $50? [http://www.amazon.com/PlayStation-2-Console-Black/dp/B000TLU67W/ref=sr_1_1?ie=UTF8&qid=1249086673&sr=8-1]

I get nervous whenever I read news like this. Reducing production costs that dramatically is usually a sign that it's being made more cheaply (read: lower quality/safety).

Hahahaha...I doubt they will be dangerous...probably just break more easily...

Which is bad since I don't have a high opinion of the parts they used for the ps2. I bought one for my sister, only had a total of 3 games for it...didn't play that much but it still broke...

Sony says repairs will cost about same price as buying a new one. Hahaha...no thank you...

I got an 80 gig version. I am glad that they have found ways to cut the costs of production, as I love Sony, and would hate to never see the Playstation 4.

That would never happen...the way the economy works is that if Sony was truly in trouble, another company would just give them money so the playstation would become a "joint-venture"...

McDonalds/Playstation anyone?

 

[Brotherofwill]

McDonalds/Playstation anyone?

More like Apple/Sony. That'd be funny, just imagine all the 'I'm a PS4' commercials.

 

[BloodyOne]

That would never happen...the way the economy works is that if Sony was truly in trouble, another company would just give them money so the playstation would become a "joint-venture"...

McDonalds/Playstation anyone?

McDonalds...my life would end.

I would rather have Sony combine assets with game designer studios.
McDonalds... Now I'll be having nightmares for weeks!

 

[FoxParadox]

70%? What did they do? Start making the consoles hallow or paper?

 

[hansari]

They didn't announce this if I recall correctly. It was an investor meeting, the only reason people picked up on it is because they like to complain.

While fanboys usually cause quite a ruckus for no reason, I think in this instance, they have a right to complain. Especially on something like "backwards compatibility" as that is something consumers thought was going to be a safe assumption...

Besides,when questioned [http://www.ps3attitude.com/new/2009/01/bring-back-backwards] they said...

Sony: When we removed backwards compatibility from PS3, we said that it would not be coming back as our priority was to make great next generation games. I am not sure where you are getting your information from, but at no point did we say that there would be some sort of emulation being brought to PS3.

So I guess there was an announcement...at least thats what Sony claims...

More like Apple/Sony. That'd be funny, just imagine all the 'I'm a PS4' commercials.

Hahaha...

 

[TsunamiWombat]

If Sony can do this and return Backwards Compat, the PS3 will proceed to rape 360 and kick the Wii in the chest. I'm interested to see what happens.

PS: I'm a 360 owner, so no fanboy whining at me.

 

[manaman]

I would welcome a price drop. You know $99 a unit. Cheaper then a blu-ray drive for my HTPC?

70%? What did they do? Start making the consoles hallow or paper?

That wasn't a reduction all at once. That was a reduction over the years they have been making the systems.

 

[DRADIS C0ntact]

If the next console wars are scheduled for 2012, they will probably be focusing all their efforts on not screwing up there..

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years? Considering that the PS2 is still alive and kicking, it doesn't look to me that Sony will be releasing a new console anytime soon. I think the PS3 could continue through the current console war, and the entirety of the next before they need to release another console.

 

[JWAN]

hm- I'm sadly to lazy to look this up, but I thought that the ceo comment was that if they cut the sale price they'd be loosing money. Did I just read that wrong?

kinda, they are already not turning a profit on the system because not many people are buying it, now they are trying to cut their losses by at least getting rid of the units. They have to move metal or else they lose more money. Instead of (this is an example) losing $250, they only lose $150. Hypothetical prices but they were good numbers. For a future strategy they should stop bullshitting the consumer and make a cheaper system with a solid title base. As a matter of fact that's the only way to REALLY sell a council. You can sell units on a name alone but after a year people stop buying it.

FOR THE RECORD:
I predicted that Sony would NEVER turn a profit off of the PS3 the day they announced the price for the system. Now they may only have to wait 8-10 years

 

[JWAN]

If the next console wars are scheduled for 2012, they will probably be focusing all their efforts on not screwing up there..

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years? Considering that the PS2 is still alive and kicking, it doesn't look to me that Sony will be releasing a new console anytime soon. I think the PS3 could continue through the current console war, and the entirety of the next before they need to release another console.

Yea, the issue at had is first they need to turn a profit. If you cant make money why even continue on? I mean, business 101 says that if your company is losing money faster than its earning it you need to shut the business down before you end up in a soup kitchen. Basically the PS3 launched Blu-ray players so they could fight and win the HD v.s Blu-ray tech. Blu ray is winning but the PS3 was a distraction for a broader market grab.

 

[Quadtrix]

Good for them. Hopefully they'll bounce back sometime soon. We'll probably have to wait awhile before there's any chance they'll lower the price for a PS3, though. They must first recover their losses, so it'll be awhile before we can expect a price drop.

 

[DRADIS C0ntact]

If the next console wars are scheduled for 2012, they will probably be focusing all their efforts on not screwing up there..

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years? Considering that the PS2 is still alive and kicking, it doesn't look to me that Sony will be releasing a new console anytime soon. I think the PS3 could continue through the current console war, and the entirety of the next before they need to release another console.

Yea, the issue at had is first they need to turn a profit. If you cant make money why even continue on? I mean, business 101 says that if your company is losing money faster than its earning it you need to shut the business down before you end up in a soup kitchen. Basically the PS3 launched Blu-ray players so they could fight and win the HD v.s Blu-ray tech. Blu ray is winning but the PS3 was a distraction for a broader market grab.

Well, if the cost of production for PS3's is now less than the retail price, they will start turning a profit. They may have taken longer to get to that point than Microsoft or the Big N, but Sony's system will be around for longer than the 360 or Wii. (According to Sony, at least.) It seems like Sony is confident in their strategy.

 

[JWAN]

If the next console wars are scheduled for 2012, they will probably be focusing all their efforts on not screwing up there..

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years? Considering that the PS2 is still alive and kicking, it doesn't look to me that Sony will be releasing a new console anytime soon. I think the PS3 could continue through the current console war, and the entirety of the next before they need to release another console.

Yea, the issue at had is first they need to turn a profit. If you cant make money why even continue on? I mean, business 101 says that if your company is losing money faster than its earning it you need to shut the business down before you end up in a soup kitchen. Basically the PS3 launched Blu-ray players so they could fight and win the HD v.s Blu-ray tech. Blu ray is winning but the PS3 was a distraction for a broader market grab.

Well, if the cost of production for PS3's is now less than the retail price, they will start turning a profit. They may have taken longer to get to that point than Microsoft or the Big N, but Sony's system will be around for longer than the 360 or Wii. (According to Sony, at least.) It seems like Sony is confident in their strategy.

They did a similar thing with the PS2 and it took them about 5 years to start turning a profit. I mean, its up to them to make another system and if they say they wont build another one for 10 years just to say they made some money then Ill trust them. But I firmley believe they released the PS3 just for the blu-ray

 

[hansari]

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years?

but Sony's system will be around for longer than the 360 or Wii. (According to Sony, at least.)

They did a similar thing with the PS2 and it took them about 5 years to start turning a profit. I mean, its up to them to make another system and if they say they wont build another one for 10 years just to say they made some money then Ill trust them.

The level of trust you guys give is astonishing.

Its already been stated that there will be a Wii2. And the Xbox3 is in development phase...

As for the next Sony console...the PS4? There is no confirmation that they have a release date set for it or that they are in development...

But rumors abound already that Intel has been signed on to develop the next console after the company dumped Nvidia (perhaps over just how the "difficult to develop games on this console" plan backfired). [http://www.google.com/#hl=en&q=intel+sony+playstation&aq=f&oq=&aqi=&fp=-Pw1cEIpNGU]

If they already have their next graphics supplier slated, doesn't that mean they are already making preparations? Intel will need some time to get a graphics card ready sure....but the company is HUGE compared to Nvidia...

 

[TsunamiWombat]

Hasn't Sony continuously stated that the lifespan of the PS3 would be over 10 years?

but Sony's system will be around for longer than the 360 or Wii. (According to Sony, at least.)

They did a similar thing with the PS2 and it took them about 5 years to start turning a profit. I mean, its up to them to make another system and if they say they wont build another one for 10 years just to say they made some money then Ill trust them.

The level of trust you guys give is astonishing.

Its already been stated that there will be a Wii2. And the Xbox3 is in development phase...

As for the next Sony console...the PS4? There is no confirmation that they have a release date set for it or that they are in development...

But rumors abound already that Intel has been signed on to develop the next console after the company dumped Nvidia (perhaps over just how the "difficult to develop games on this console" plan backfired). [http://www.google.com/#hl=en&q=intel+sony+playstation&aq=f&oq=&aqi=&fp=-Pw1cEIpNGU]

If they already have their next graphics supplier slated, doesn't that mean they are already making preparations? Intel will need some time to get a graphics card ready sure....but the company is HUGE compared to Nvidia...

Under development?

Proof or it didn't happen. Everything points that those rumors were in reference to Project Natal, it seems strange to launch a new peripheral and not give it time to make sales. ANd both Sony and Xbawx have their silly new motion gimmick under development.

Rumors aren't truth. Developers are just now getting the optimum out of these systems, why the hell is everyone so eager to push on to the next stage?

 

[blippity]

I get nervous whenever I read news like this. Reducing production costs that dramatically is usually a sign that it's being made more cheaply (read: lower quality/safety). I half expect this to be followed in a few months with stories like:
"Sony warns that new model will explode after more than two hours of continuous use."
"Recall on new PS3 model; cooling fan found to expel asbestos and CO2."
"Gamer reports new PS3 power supply 'burned brighter than the sun' before melting through concrete floor."

Thanks for the laugh!

Yeah the reduction in costs in my experience (outside of gaming consoles) does tend to lead to poor quality. My only other concern is will they reduce the price outside of the US? If the base model in the US is $399, it should be by today's conversion rates, less than $500 in AU. But what are they charging? Anywhere between $650-700. No wonder I don't know a PS3 yet. My Ps2 is still cruising and if Sony have their way, I'll probably skip the 3 and move onto the next one, which is a shame since I've enjoyed the PS consoles until now.

 

[Credge]

The level of trust you guys give is astonishing.

The irony, of course, is that you're trusting rumors.

 

[nova18]

I'm going to ignore all the comments on this thread (and logic) by lighting a little candle.
Does anyone know what is written on that candle?

The candle says "Hope. Hope that Sony can still win the war "

All we need is for Nintendo to get bored of money.
Microsoft to be destroyed in a new plague.
And PC fanboys to fall in love with the PS3 for no discernible reason.

What? [small]It could happen.[/small]