The Problem With a PS3 Price Cut
During an interview with Fast Company, Jack Tretton said the following:
People are having short-term thinking - the platform is not even three years old. It was $599; it's now $399. The focus on pricing is something we appreciate, but you have to have the conviction and the confidence that you are on the right path for the long term and ultimately you'll get all the consumers you want. You won't get them all day one, but we're looking to get them over a 10-year period. It's going to take different things to get different consumers.In a GamePro article Sean Mirkovich goes over the issue in a fair amount of depth and ends with a call for a cheaper PS3.
"Logically" it would make more sense for Sony to invest in a product that was more efficient and didn't cost so much to produce and sell.Here's the thing. Consumers are so obsessed with the "console wars" that they latch on to key memes and can't see past them. The reality is that the PS3 is a better system than the Xbox 360 and the Xbox is far more expensive in the long run as they nickle and dime you for your gaming experience.
For example, I recently set up a PS3 and an Xbox 360 on two TVs in my girlfriends house to see how they treat files handled on a PC differently. Both were easy enough to set up. But here's the kicker. I had to buy a $100 wireless adapter for my Xbox 360, because unlike the PS3, it doesn't have WiFi built in.
Now we are wanting to play online games. So I have to buy a "gold" Xbox Live account for $50 a year, because unlike the PS3, there is a fee to play online.
Not counting the built in Blu-ray player, or having to buy rechargeable battery packs for the Xbox 360... the bottom line? It costs hundreds more to get the same experience from an Xbox 360 that the PS3 has out of the box. Once you add WiFi alone the two systems cost the same, and the PS3 has so much more.
So price wars? Please. The Xbox 360 is a great system, no doubt, but don't fool yourselves, it is simply more expensive to own. More proof? Ask my buddy who bought a launch system that just red-ringed on him... that three year warranty isn't doing him much good now.
Sony need not lower the price of the PS3, it just needs to educate the gaming population that they are getting more for less.
[Source: GamePro via PCWorld]
Comments
You, like every other PS3 pusher neglect to mention a few things.
1) The Xbox 360 doesn’t require a wireless adapter because it has built in ethernet. Which by the way connects at way faster speeds than wireless. I have mine connected with a 1000mbps connection.
2) The library of available XB360 games is easily twice that of the available PS3 games. And while Sony claims to have more exclusives than Microsoft, this just isn’t true. (155 vs. 172 – Wikipedia)
3) While you may wish to get rechargeable battery packs for the 360 (which you don’t have to), when the battery dies, you replace the pack. If the battery in the PS3 controller dies, you replace the controller. Cheaper in the long run.
4) With built in Wi-fi, when wireless N becomes a standard, will you be able to use it? No. With the 360, if you so choose to go wireless, guaranteed they will have an adapter available. And I dare you to try to stream a 1080p movie over 54mbps. It gets pretty ugly.
5) $399 is a lot of money to cough up for a console. Even Microsoft admits that the Arcade sales are far greater than the Pro or Elite models. But Sony can’t make a bluray system cheaper…can they?
6) Backwards compatibility is a huge issue for us gamers. I simply refused to purcahse a PS3 because they aren’t backwards compatible with my library.
You list the same two reasons that Sony has been for the last few years. The argument isn’t working. Pick a new one, bud.
@wanderson75-Decent points, but you can replace the battery in a ps3 controller. The problem is that the buttons tend to wear out long before the battery degrades.
@wanderson75-Oh yeah, you also left out the subscription costs, which will certainly make the xbox more in the long run.
@wanderson79-
I own a 360 so I know the truth so don’t try it with me. Some other dumb smuck might fall for it, not me! Like I said in the end you’ll pay more for 360 than a Ps3. Ps3 is an investment a 360 is a rip off. What about all the dummies that purchased the HD add for 360 they already spent more on a 360 than I did with a Ps3
1) You act like Ps3 doesn’t have built in ethernet. What if your 360 is in a room with no router, wich most of them are,then what? Like he said you have to buy 1 for $100.
2) I have my ps3 hooked to a wireless N router right as I type douche bag. Online is free of charge. I can search the web if I want.
3) The battery in the Ps3 is replaceable it shows you how in the manual. Who wants to replace their battery every other week? Not me. How much money would that be in a year. So you’d be better off buying the rechargable battery pack for $20.
4) Bluray is way better than streaming movies. Not to mentin I can put movies right on my HDD, you can’t. I can also for the price of 360’s 120gig HDD wich is $150, I can get a 500gig HDD for cheaper, $89.
5) 360 has more games but 75% are Garbage comparing exclusive 360 game titles to Ps3 is like comparing a 380 to a .50 cal. You’ll get murked.
6) Does Mercedes try to compete with Ford as far as retail price. Exactly!
7) The fact of the matter is the only reason 360 is still in the game is due to wades of cash Microsoft throws around for timed releases and down loadable content.
Mark my word Microsoft will kill 360 in 2-3 years and come with a new system. Ps3 is a technological advancemet thats ahead of it’s time. Then Ps3 user base will be bigger and Microsoft will lose out due coming out with a system to soon.
@wanderson75, like every xbot, you neglect to mention a few things. Let me respond to every comment that you mentioned:
1) Wired connection? Wanna talk about convenience? Heck I can move my ps3 at the house at any room anytime anywhere. No hassles, no wires. 1000mbps connection? Are you fully utilizing it when playing games? Nope.
2)So.. x360 has more exclusives… but how many of them are good anyway? 4? 5? Some of them aren’t even completely exclusive as they’re also available on the PC. Besides, 360’s been out for about a year before the ps3 was released, and yet it only leads the ps3 by 17. At this pace (3 yrs for the ps3. 4yrs for 360), I do think that the sony has or is releasing more exclusives than microsoft. Why not try counting the AAA+ exclusives?
3) By the time that the ps3 controller’s battery dies, you probably would have spent enough money on regular batteries to buy another controller or two. Besides, you can replace the batteries of your PS3 controllers… for only 5 bucks. ==> http://www.dealextreme.com/details.dx/sku.13314
4) And knowing microsoft, how much would the new wireless adapter cost? Microsoft can’t make their accessories cheaper… can they? Yet to happen. If ever, they better start on the hard drive.
5) Read the entire article. PS3 is cheaper in the long run. period.
6) Makes sense if your library is filled with xbox games. But what if your library is filled with ps1 and ps2 games? Does it make sense to get a 360 for BC? True not all PS3’s are BC now (mine is) but sony’s working on a BC software for the ps3, they recently patented it.
You list the same reasons that xbots have using been for the last few years. The arguments aren’t working. Pick a new one, bud.
hey wanderson75 you’re so off it’s not even funny.
1) As someone said the PS3 has ethernet too so that’s not an advantage for the 360. Who cares what you connection is. Playing games on XBL doesn’t even use a total of 1 mbps for both upload and download. More than enough for Wireless G.
2) XBOX 360 has more games than PS3? I’m shocked! A system that’s been about a year longer has more games? Whoda thunk it?
3) battery packs may be cheaper than PS3 controller but they’re still $25. And no you could just use regular batteries instead but that’ll cost you more than $25 a year. My firend PS3 controlers which get used ALOT still work. 2 years later. No replacement needed yet.
4) WHEN N becomes standard. Yeah when? We’ve been waiting 5-6 years for that. It’ll be at least 3-4 more year before N becomes mainstream then a new PS system will be coming out then anyways. Besides as I said you don’t need wireless N anyways.
Also some of us PREFER wireless and if you don’t see that $100 for a wi-fi dongle is complete rip-off then there is something wrong with you.
Thankfully I had a wireles gaming adpater I was using on a PS2 so I use that on our 360. no way I was going to pay $100 for wireless. And I’m not running 30 feet of ethernet across the house to to have it hooked to a router.
Which LEGAL movies are you streaming in 1080p? XBL only has 720p movies. Netlfix has very very few HD movies. Oh by the way blu-ray is 1080p and needs no streaming since it’s part of the system
5) As people have said the XBOX 360 is more expensive. I just love how I had to pay $50 for a XBL gold subscription just to update Madden 09 rosters because I don’t play online. While my friend who has a PS3 got to update his for FREE. And if he did want to play online that was free too. Wasn’t the $60 I paid for the game enough for Microsoft they needed another $50?
6) Backwards compatibility? Ok so your PS3 didn’t play your PS2 games so you bought a 360. When did the 360 start playing PS2 games? Oh wait it doesn’t. Also the 360 only plays HALF the Xbox games. And MS stop making the rest BC nearly 2 years ago. Why one would want to play old games on a new console is beyond me anyways
Why can’t I add my own HDD to the 360 like one can with the PS3? $150 for 120 GB is a JOKE and ther’s nothing larger out there. You can upgrade you’re HDD on the PS3 to 500 GB and you can get one of those for less than $150.
As the other guy said I also am a 360 owner so you can’t feed us your BS. Stop being a fanboi for a day ok? It’s not like MS is paying you.
All true but at the end of the day most are not really thinking about that. I’m thinking about the games and if you can get (most of) the same games on xbox and its cheaper, why not go with that?
I’m actually one of many holding out for a PS3 price cut. I mean I know the hardware is worth it but I just cant stand the idea of dropping 400 (plus games) for videogames. As far as blu-ray goes the average person (myself) is fine with their dvd player until those start dropping in price as well, we know its just a matter of time…
People are too greedy these days. The PS3 was $599 in Nov 2006. In less than 3 years it has come down $200 already. If you are waiting for a price cut before you buy a ps3, you will be waiting a long time. Do not expect Sony to cut the price again any time soon. That is foolish to think it will happen.
…and if you wait too long, you may end up hurting Sony by holding out on your purchase. Sony may even abandon completely the PlayStation brand.
Look at all the other so-called invincible companies that have been shut down in the last 12 months. It can easily happen. Sony is bleeding money.
Sony may very well liquidate the entire PlayStation arm of their company. They have been losing billions since the production began on the ps3. Shareholders won’t allow another price cut since it has already been cut by $200 since launch.
When a company knows they are losing and they refuse to do the only logical thing to gain market share (a price cut), it means only 1 thing. Sony is pulling the plug on the PlayStation brand, and are now just in it to see how much of their losses they can recover before announcing their intentions.
to the poster called jen,
sony clsoing off the playstation business? sounds like an xbox fan’s wet dream. Sony ain’t sega. And while they are bleeding money from selling ps3s they also have the ps2 and psp softening the blow.
it’s just a matter of time before that hardware costs goes below selling price. once that happens it becomes easy.
howard.stringer@am.sony.com
Ya all suckers!!!!
ME-
you tell others to stop acting like a fanboy, when you are acting exactly like one yourself you hypocrite.