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Sony: 100K PS3s Selling Out Every Week in US; Wii is Just an "Impulse Purchase"

Discussion in 'BBS Hangout' started by RC Cola, Jan 31, 2007.

  1. UTweezer

    UTweezer Member

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    if SCE wants to start selling ps3's they need to cut $150 off the price and include a game. yeaaa riiite
     
  2. RC Cola

    RC Cola Member

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    The PS3 has no games, so they can't include one with the system. ;)
     
  3. VesceySux

    VesceySux World Champion Lurker
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    1) Buying a stick of gum while in the supermarket checkout line is an impulse buy; purchasing a $250 video game system is most definitely not. I don't know about the rest of you, but I sure as hell don't randomly walk into a store and shell out $250 "just because". And, considering the Wii is freaking sold out everywhere, who really has the opportunity to buy one on impulse? If people are buying Wiis on impulse, I'd imagine the panic over the shortage of units has something to do with their rash behavior.

    2) I don't understand how a price cut is going to help Sony. Their top-of-the-line SKU is $600, which, we all agree, is expensive. If they reduce the price by $50 to $550... well, gosh, that's still expensive. Sony would have to cut $100-$150 off the price of the (high-end) PS3 to spur any real demand. At that lower price, though, Sony will just end up further in the red, and will thus have farther to go to reach breakeven. Plus, if they cut the price in the next few months, everyone who bought a PS3 at the $600 price tag will scream bloody murder (and the press will have a field day reporting on Sony's lack of confidence in sales). The company has gotten itself into one hell of a hole.
     
  4. Storm Surge

    Storm Surge Rookie

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    IMO I sense 360 bias in this thread.

    Firstly, Sony doesn't make money off of systems, they make it off of games. Casual gamers won't buy tons of games, probably 1 or 2 a year. Whereas hardcore games would buy 10 or 12 games a year(maybe more) this evens out the discrepancy between units sold/profitability.

    The Wii IS a casual system, no denying that, but, outside of Zelda/Mario freaks, no one is going to buy a TON of games for it, this is a MAJOR LOSS. Less games sold = less developers making games for it.

    Secondly, the PS1/2 both sold over 100 million consoles, the xbox sold 20 million, the gamecube 22 million. I believe this is because of system familiarity, the Playstation brand is more powerful than Nintendo and Xbox combined. The "casual" gamer will see that as well. "Oh, what is this? What is a Wii? Oh hey look here, here is a Playstation, I know what that is, I definitely think my son is going to like that."

    With this OMG it is so much more expensive thing, just look at the IPod, and you will see Americans have price below functionality and the cool factor. The Ipod is EXPENSIVE, but people eat it up, people buy it over the many times cheaper Creative Zen Vision, who has the SAME features but lacks the recognizability. When you tell someone you have an Ipod, they immediately know what it is, tell someone you have a Creative? They don't have a clue.

    The IPhone is GOING to sell well, that's $600, Apple has taken the EXACT SAME strategy Sony is, more functionality, super brand, eventually it will sell.

    Don't forget loyalty, most people will stick with the same brand even if there is a little bit of a difference in price. I see the "Hey, I had the PS2, and I loved it, I'm sure I will love the PS3 as well." attitude.
     
  5. RC Cola

    RC Cola Member

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    I think they might want to get the $500 SKU (the better of the two IMO) to match the price of the $400 SKU for the the Xbox 360 (also the better of the two IMO). If someone wants a PS3 to play games, that is what they should be looking at. If they want a PS3 that has a bunch of extras (which not everyone will want), then the $600 PS3 is the only console that offers them what they want, and thus, is of great value.

    Sony is in a position where they can cut the price $100-$150 if they so wish it. As I said in the last thread, they've already begun mass production of Cell @ 65nm, which cuts costs on that chip by ~40%. If they can get RSX to 65nm sometime soon, they could probably get the costs for that to reduce by 40%-50%. Those are two of the three costliest components of the PS3, and it seems like Sony could get some massive cost reductions on them in the near-future. According to this , Blu-ray drives will reduce in cost by 50% by 2008, and that is the 3rd and probably most expensive component in the PS3. Throw in savings from reduced cooling (65nm RSX and Cell won't run as hot), revised motherboards (small processors, so less material), the removal of the EE+GS chip for PS2 BC, etc., and it shouldn't be too difficult to reduce the price by $100 in the next 12 months or so (think Stringer even said the PS3 should be breaking even by the end of the year). I didn't even mention the fact that there seems to be a really large chip in the PS3 (rumored to be the Super Companion Chip) which doesn't really seem to serve much purpose in the PS3 (compared to its abilities anyway); don't know what Sony has planned, but either the PS3 could end up with more functionality or it could cost even less to make if Sony can replace it with a chip that is less costly (some speculation that Nvidia might be doing something about this).

    At the earliest, I wouldn't expect a price cut until a little while after the European launch, which isn't until late March. Maybe around May ("E3" announcement), although they'd probably prefer to wait until the Fall before putting in a price cut due to poor sales.

    Of course, if the PS3 is selling 100K a week or anything close to that, there won't be a price cut anytime soon, even if Sony starts to break even on the PS3.
     
  6. Master Baiter

    Master Baiter Member

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    Obviously you didn't read the thread because prior to your post there are only 2 instances of "360" in the entire thread while there are over 40 instances of "Wii". Perhaps the thread is about the Wii versus PS3 as the article stated.
     
  7. Storm Surge

    Storm Surge Rookie

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    the edit button alludes me!!! :(

    anyways I did read it, it was a typo.
     
  8. MR. MEOWGI

    MR. MEOWGI Contributing Member

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    It think it will only grow. People will buy tons of games eventually. They have barley scratched the surface of the Wii remotes possibilities. It is truly revolutionary.
     
  9. RC Cola

    RC Cola Member

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    Other way around. And Xbox is probably more like 24M-25M. Doesn't really change what you said though.

    Personally, given the situation, I don't think the PS brand will be that important, although I guess I should wait a bit before concluding that for sure. The price is just too high IMO for someone with a PS2 to just blindly purchase a PS3 (as if it was an impulse purchase ;)) without considering their alternatives. It doesn't help if games like Devil May Cry, GTA, MGS, Tekken, Dragon Quest, etc., can be played on other systems. That's not to say they'll get a Wii/360 and not a PS3 (360 and PS3 are somewhat close in price anyway IMO, especially for a fan of the PS brand), but I think they'll consider their options more so than if the PS3 was $300-$400.

    Perhaps in 2008 and beyond when Sony can get the price of the PS3 down to more acceptable levels, the people that spent 5-10 years on the PS1 and PS2 will flock to the system (especially if they can keep big PS franchises exclusives).
     
  10. hotballa

    hotballa Contributing Member

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    Just how much money do you think Sony makes on games that aren't in house? Do you not know how much money they have to PAY to keep a title exclusive??

    The DS is a casual system too then, and the PSP is the "hardcore" one right? I'd like to see how that's working out.

    I'm sure the unsold PS3's sitting on shelves through the holiday season justify your statement. the IPhone doesn't have to sell 20 or 30 million units to be considered suceesful or even break even.

    PS1 debut = $299
    PS2 debut = $299
    PS3 debut = $599 (the $499 model is so unpopular that Sony isn't even offering it in Europe)
     
  11. TracyMcCrazyeye

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  12. emjohn

    emjohn Member

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    I don't own or want an XBox, and I think your reasoning is off. As far as brand familiarity and loyalty, consider what happened to SEGA (Atari).

    PS3 is a superior product in almost all respects, I plan on getting one, but I'm nowhere near as excited about getting it as I am the Wii.

    The PS3 is, if anything, a little ahead of its own demand. The one thing that really separates it from 360 and Wii is that it is an inherently Hi-Def system. For it to stand above the competition it needs to be played on 50+ inch HDTVs (and maybe those with 1080p to really stand out). That alone cuts down your target consumer. I have one, many others here have one, but not the majority of the country and maybe not the majority of the game console buyers.

    Hardcore gamers just might be outnumbered by parents with kids. Kids just might be more excited about a completely new way of playing games (Wii) than a higher-graphics version of something they already have (PS2/360).

    It's pretty apparent: The Wii is half the cost and appeals to a broader consumer base. I don't think it's unrealistic to think this might end up like PSP vs Gameboy DS.

    Evan
     
  13. RC Cola

    RC Cola Member

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    I think it is usually about $7-$10 per game, although that can vary. Some publishers can even get by without paying Sony a dime IIRC (only for HUGE games though...sort of a bargaining chip). I think the PS2 is sitting at 1.0B-1.5B units of software, although a lot of that would also include 1st party (GT alone probably has 20M+).

    It depends on the situation, but sometimes I wonder if Sony even bothers paying to keep a title exclusive. I'd be curious to see what titles they actually do this for.

    Sony isn't offering the $499 model in the UK (not Europe, some places will get the 20GB model IIRC) because it isn't unpopular. They made this decision like a year ago, long before any real decisions could be made about the popularity of both systems. They probably offered just that system so they wouldn't lose as much money, and countries like the UK tend to be more supportive of Sony than others.

    The 360 pretty much requires that too, right? Or were you just comparing the Wii and PS3?

    That can definitely be the case, although scaled a bit to match the number of console buyers out there of course. For Sony's sake, they better handle the PS3 better than the PSP (~2 years, and still no price cut...it was actually selling better than the DS at one point).
     
  14. UTweezer

    UTweezer Member

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    Sony must be really smoking some good stuff if they're expecting the PS3 to acheive PS2 sales success. Don't they understand price is the ultimate driver? The general consumer does not care about all those features at that price point. Most people aren't going to sit there and run a feature/cost analysis...

    too much too soon
     
  15. RC Cola

    RC Cola Member

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    I think even if the PS3 was priced at $300-$400, it would be extremely difficult to achieve PS2 sales. It doesn't help that the PS2 is still selling extremely well, so achieving PS2-sales gets harder every month. :)
     
  16. hotballa

    hotballa Contributing Member

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    http://www.eurogamer.net/article.php?article_id=72194


    It's actually sad. The PSP has so much stuff you can do with it, but $249 for the premium pack was ridiculous. I think once PS3 has more AAA titles out, that price might not be as much a factor, but I really can't see the PS3 going anywhere unless they drop that price at least 15%
     
  17. hotballa

    hotballa Contributing Member

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    I think it;s kinda unfair t put those expectations on the PS3 though. The PS2 had no real competitors.
     
  18. RC Cola

    RC Cola Member

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    I don't really buy that...well, I buy that retailers prefer the more expensive SKU. Plus, that could mean that demand for the more expensive SKU is enough such that Sony would rather offer just that model. :)

    Again, they've been saying that they'd only have one SKU in the UK for a long time, so I doubt the decision has anything to do with any sort of recent findings.

    Exactly.
     
  19. hotballa

    hotballa Contributing Member

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    That's a quote from Sony's, not the opinion of the writer. I doubt Sony would have wanted to highlight this since it essentially admits a mistake on their part to have the two separate SKUs.
     
  20. RC Cola

    RC Cola Member

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    Are you trying to suggest that Sony is incapable of saying stupid things? Or that we should believe Sony when they say they are selling 100K PS3s a week? ;)

    It wouldn't be the first time Sony decided to launch just a single SKU (instead of two) in a region based on what they see as demand for the two products. And again, they're also taking into consideration retailer demand...probably more so than consumer demand.
     

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