PS3 60GB price cut + 80GB version

[kupomog]

New Version Of PlayStation 3 To Go On Sale In August; Sony Cuts Price On Older Model
AP - 7/8/2007 6:57 PM - Updated 7/8/2007 6:58 PM

Sony Corp. announced a revised PlayStation 3 console Monday with a bigger hard drive for storing downloaded content such as video games and high-definition movies.

The new $599 PS3 increases the system's storage capacity from 60 to 80 gigabytes and also includes a retail copy of the online racing title ``MotorStorm,'' a company spokesman said.

Starting Monday, the current 60 gigabyte model will cost $499 _ a $100 price drop.

The larger capacity machine won't be available in the United States and Canada until August.

It plays into the company's upcoming strategy of eventually offering downloaded high-definition movies, video games, movie trailers and demos, Sony spokesman David Karraker said.

Karraker said further details on high-def movies for download would be released at a later date.

The announcement comes two days before the E3 Media & Business Summit in Santa Monica, Calif., where dozens of industry heavyweights including Sony rivals Microsoft Corp. and Nintendo Co. are expected to show off their latest games and related products.

In April, Microsoft began selling a version of its Xbox 360 with a 120-gigabyte hard drive and a souped up high-definition video connection. Called Xbox 360 Elite, the black-colored system sells for $479.99.

Xbox gamers who already own the $399.99 20-gigabyte model can buy a snap-on 120-gigabyte hard drive for $179.99.

Karraker said Sony would use the E3 show to focus on two areas: ways to increase the number of consumers who own PS3s and other products such as the PlayStation Portable handheld system, and expanding the system's library of available games.

He said Sony would be releasing 100 new video games during the current fiscal year, including 15 titles that are exclusive to the PS3 such as the hack-and-slash action title ``Heavenly Sword.''

Source: http://www.kotv.com/news/national/story/?id=131051

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I won't be rushing out to buy one yet, it's still a lot to pay, but it makes me happy to know I'll have to spend $100 less by the time the must-have games are out.

[Stackhouse]

not a huge surprise, a move sony needed to make, but im still not interested

[skittlebrau]

It's nice to see a price drop already which is what I was anticipating, but...that's still a little too much for my wallet at the moment. Maybe another drop and then we'll talk *sigh*

[H Thompson]

Yeah, another price drop and the release of MGS4, FFXIII and hopefully some new Silent Hill game as well, then I'll be very excited for it.

[Gunstar]

This drop makes no difference to me. It's still half a grand without even getting into games and other crap. Not expecting much of an increase in sales, it still needs to be lower.

The best thing about it is the chance that Microsoft might drop the price on the Xbox. Then I will go buy a 360.

[conor.]

i'm thinking around the time time crisis 4 comes out i'll be itching to get one of these, the guncon (sp?) looks amazing from the videos i've seen.

is the 30 gig cut as well?

[blueguy]

20 gig. Yes, it's been cut from the production line. They don't even make them anymore as far as I know. Or at least, they don't sell them in the US anymore.

[Magnum]

so it'll be worth...what?

200 bucks in ten years?

amusing

[blueguy]

Probably less. You don't really expect a game console to hold value over 10 years do you? They don't even hold value for 5.

[grissom]

I doubt I would use the extra 20 gig, so I'd go with the cheaper model. I still don't need it that bad though. I can buy more interesting stuff for $500.

[Magnum]

I meant from a collecting standpoint


I'm sure it won't be worth that much, but it will be desired.

[Binky]

I like how the difference between a 60gb and 80gb hard drive is somehow $100.

[H Thompson]

Doesn't it say it comes with MotorStorm as well though?

[Supreme Stonecutter]

Too little and without enough software backing it. I'm glad I stuck with my 360. I loved the PS2, but damn Sony botched this one.

[Kiyosuki]

I knew they'd drop the price soon like this. People told me it would take at least two years.

[SubSane]

... still not low enough.

[Kiyosuki]

But at least somewhat managable.

I wonder if this and Katuragi resigning are connected.

[blueguy]

I think Crazy Ken was finished anyway. With the disappointment of the PSP and the huge miscalculation with the PS3 at least. Although I wonder if the Blu-ray drive was really his idea or if that was someone above him pushing for that to be included. Risky, but it seems to be working to win over the market. It isn't helping the system as a gaming console though.

[DAntae]

its the first time where a decent size price drop still doesnt make the purchase anymore attractive. eventually I will have to purchase to play some exclusives.

[sacrelicious]

... still not low enough.
This is true, it's still not low enough. But sony has just released a blu-ray player for $500, and the PS3 can't undercut it by too much otherwise they'd buy the PS3 for blu-ray only and never buy the games that cover the console's "discounted" selling price. Price cuts, new versions, etc, it doesn't matter the PS3 is quickly becoming a gaming blunder.

[Binky]

Wow, Sony really dug themselves into a hole with that. The only thing they could hope for now is the price of Blu-ray to drop (or just sell their players at lower profit margins).

[Supreme Stonecutter]

I think Crazy Ken was finished anyway. With the disappointment of the PSP and the huge miscalculation with the PS3 at least. Although I wonder if the Blu-ray drive was really his idea or if that was someone above him pushing for that to be included. Risky, but it seems to be working to win over the market. It isn't helping the system as a gaming console though.

Actually the Blu-Ray is about the only feature that might make a difference in the long run. Blu-Ray's disc size allows for more content, while the X360 is running off of the same storage capacity. Think about it, people get upset when new games have less content, but don't realize that they're demanding twice as much because of a new gen of console, without understanding that they don't have extra disc space to work with. Assuming Sony can hold long enough in the console war to keep developers they'll be sitting on gold with the Blu-ray ish.

[blueguy]

The problem with content these days isn't storage space. It's cost of developing games. As the consoles get better, it takes more and more people to make a game. That's why we're paying $60 for a game. And then it's made worse because now, if deadlines are coming up and they're falling behind, they won't hesitate to drop stuff and just add it later as downloadable content that they can charge even more for.

[Supreme Stonecutter]

The problem with content these days isn't storage space. It's cost of developing games. As the consoles get better, it takes more and more people to make a game. That's why we're paying $60 for a game. And then it's made worse because now, if deadlines are coming up and they're falling behind, they won't hesitate to drop stuff and just add it later as downloadable content that they can charge even more for.

I understand that, what I'm saying is that 3 or 4 years down the line, towards the end of the current generation's life cycles, PS3 will have an advantage because as games progress and the expectations on games progress having a larger disc capacity will be beneficial.

Downloadable content feels more like a different business model to me than just a "whoops, we couldn't fit it, here you go." Think about it, you said it in your own post. If it costs more to make games then the developers probably have to find new ways of making money.

[blueguy]

Oh I absolutely think it's a "whoops, we couldn't fit it" situation in many cases. I'll use Forza as an example. In the credits for the game, it lists Road America which isn't even in the game. It was in the first one. I'll bet $10 that it'll be offered as a download later that we'll have to pay for. They brought back the short version of the New York track, but the long version is nowhere to be seen. The track is already half done. People liked the long version on Forza 1, why not include the whole thing? $$ or they ran out of time. We already know they ran out of time because they've said there are things they wanted to include, but didn't have the time.

Gears of War. I recall hearing something about there being a level that didn't get finished where you'd fight Brumak. Now that there's the PC version video available, it shows them fighting Brumak. Again, I'd bet that'll be downloadable at a cost later on for the 360.

There's a lot of cases like this. I'm not trying to say all downloadable content is stuff that's getting cut due to time, but that doesn't really make it ok either. If the trend continues, we're going to be paying more and more for games just to continue getting the content we're already getting. The only improvements would be graphics and in some cases how the games work.

[DAntae]

if they could get the lesser ps3 down to 399.99, I would expect to see lots of people pick one up...myself included. it a more reassuring price, as lame as that sounds, it doesnt make you feel like your sinking in as much (and while its 100 less, it feels like so much more)

[blueguy]

Well, it's already showing huge spikes in sales, like on Amazon where it shot up like 2400% and was the #1 selling item for a bit. I think it's down to #8 now, but they're also offering the Bluetooth remote, Blu-ray copy of Memento, and 5 Blu-ray movies via mail-in rebate for free. 5 free movies I think is with the system anywhere you'd buy it.

http://www.amazon.com/gp/feature.html/103-1069184-7826225?ie=UTF8&docId=1000106451

and unless MS drops prices at E3, the PS3 is now only $20 more then an Elite and it has a built-in HD movie player and wireless network adapter.

[conor.]

how much is sony losing off this?

[blueguy]

Plenty. But that's the way consoles work these days (except for Nintendo). Sell for a loss for a while and make the money back off the proceeds from the game sales later on. Even so, I think they're probably losing less then the $1.x billion MS has set aside for warranty repairs.

[Kiyosuki]

Yeah it does seem to me like more of a "oh shi- we fucked up!" move than a really coy "we had this planned from the start, kekekekekeke". I don't know whats going on in their heads so I can't say for certain, but Ken resigning not too long ago seems like a pretty good indication by itself that things didn't go according to plan. Plus they are losing a sizable amount of money with this so unless they got some really, really daring gamble with fore-knowledge on whats going to go down in price it doesn't seem like something most companies would intentionally do.

Well one thing possibly in their favor is Blue Ray is doing better than HD-DVD.

[Supreme Stonecutter]

Oh I absolutely think it's a "whoops, we couldn't fit it" situation in many cases. I'll use Forza as an example. In the credits for the game, it lists Road America which isn't even in the game. It was in the first one. I'll bet $10 that it'll be offered as a download later that we'll have to pay for. They brought back the short version of the New York track, but the long version is nowhere to be seen. The track is already half done. People liked the long version on Forza 1, why not include the whole thing? $$ or they ran out of time. We already know they ran out of time because they've said there are things they wanted to include, but didn't have the time.

Gears of War. I recall hearing something about there being a level that didn't get finished where you'd fight Brumak. Now that there's the PC version video available, it shows them fighting Brumak. Again, I'd bet that'll be downloadable at a cost later on for the 360.

There's a lot of cases like this. I'm not trying to say all downloadable content is stuff that's getting cut due to time, but that doesn't really make it ok either. If the trend continues, we're going to be paying more and more for games just to continue getting the content we're already getting. The only improvements would be graphics and in some cases how the games work.

The trend continues if people spend into it, and I seriously think it's an intentional business model. Think about it, small impulse buys, people spend on those not thinking about how much they're actually spending. I'm not saying all downloadable content is thought of early in a game's development, but I'd wager much more is than you'd think.

[Gunstar]

So this whole price drop thing is one big fake out...

E3: No more 60GB PlayStation 3 in US after July, says Reeves

SCEE president David Reeves has told GamesIndustry.biz that the 60GB PlayStation 3 will no longer be available in the US after stock sells out - which he predicts will occur by the end of the month.

Reeves was speaking at an E3 event to announce the introduction of a new PS3 bundle in Europe. When asked about possible criticisms over whether SCEE should have given consumers the option to pay a lower price, as SCEA has done, he replied, "Well, they're not really are they, because what the US are offering from the 1st of August is a USD 599 version with one game.

"All they're doing is taking their stock in trade that they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July."

When asked to clarify if this will mean the end of the 60GB model, Reeves answered, "In America, yes."

SCEA announced a USD 100 price cut for PlayStation 3 earlier this week. A new 80GB model will come bundled with a copy of Motorstorm and will retail for USD 599.


Jesus Christ, Sony.

[grissom]

Goddamn. Fuck Sony.

[DAntae]

weak move on sony's part. but then again thats nothing new

[H Thompson]

They've got to be fucking kidding! surely they'll change their mind when sales for the 60gb surges and the 80gb version dissapoints.

[kupomog]

Fucking weaksauce.

[blueguy]

SCEA is denying the claim and PR for Europe who originally backed it up is already backpedaling.

While I do think Sony will axe the 60 gig at some point, it certainly won't be right away. Europe dude said the 60 gig supply would be gone by the end of the month. 80 gig version won't even be on sale until sometime in August. Do you think Sony would be comfortable with having no systems on store shelves for weeks?
I'm guessing the 60 gig will be slowly killed off like the 20 gig was in a few months. Once the supply of them dwindles, they'll pull Motorstorm from the 80 gig and drop the price to $499 for that. Afterall, the 80 gig is cheaper for them to make then the 60 gig one.

[kupomog]

Okay this better be some crazy fuck up or I will be super pissed. At least for now I can take it out of the title if it really isn't true. I do know that Kaz Hirai mentioned 60GB production will be stopped at some point so you're right, it's partially true but probably not happening immediately.

In other news here is the starter pack for Europe.

http://img517.imageshack.us/img517/9315/3dps3rfommsbbab7.jpg

[blueguy]

Who knows what to think. It just gets more confusing, but I'm standing by my initial theroy.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=6427&Itemid=2
Confusion surrounds the future of the $499 60Gig version of PS3. SCEA has denied 'inaccurate' reports that its $100 price cut on the 60Gig PS3 is simply a move to clear stock before offering solely the higher priced 80Gig version. But different stories are coming of of the company all the time. Kaz Hirai seems to think the $499 SKU is a goner.

A spokesperson for Sony in the US told Next-Gen, "As announced this week, SCEA's product offering in North America consists of a 80GB PS3 available in August at $599 and a 60GB PS3 available now for $499. We have will have ample supplies of both models to meet the needs of our consumers for the foreseeable future."

Officials at Sony Computer entertainment Europe - including president David Reeves - had said that the US price would still be $599 because that would be the only model on offer once 60Gig stocks ran out. If true, this would have rendered the $100 price cut a virtually pointless gesture, meaning that PS3 had not been cut in price, but was simply being offered with extra memory and a bundled game.

SCEA has reacted with puzzlement to the European perspective, suggesting that there may have been an incorrect interpretation. The spokesperson said, “Those quotes from David Reeves are not accurate. He said that if they had lowered the price in Europe, that territory would have run out of their current inventory by the end of July.”

Nevertheless, Kaz Hirai himself says the one SKU strategy is the plan. He told Scandinavian website VGTV, "[We do not] have a 2 SKU strategy in the US, we learned very quickly customers respond better to having one SKU than two. We dropped the price on the 60GB model, as you know that model is no longer in production, once it's no longer on store shelves it will just be the $600 SKU."

Previously, a senior PR at Sony in London had backed Reeves statement, confirming that he had been talking about the US market, though the PR later distanced London from the remarks, telling Next-Gen, “I believe that is the plan, but SCEA has not formally made an announcement on any timeframe. As it affects the US you should confirm with SCEA.
”

SCEA subsequently denied the story entirely. However, questions will now be raised about the company's long term plans for the 60Gig version and for its $599 / $499 pricing strategy as well as its ability to stay on-message. We're waiting for clarification on some of these issues from SCEA.

I dunno. SCEA wording may not necessarily deny the claims, but they make it clear they have enough supply to last a while before they're all gone.

[W.P.]

I have yet to get a PS2, and I'm not really interested in getting that either. http://forums.awardsdaily.com/images/smilies/new%20smileys/shrug2.gif