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Will Playstation 3 see a price drop?

Will Playstation 3 see a price drop?

"Cheaper by the dozen..." - Sony will cut the PS3 price by $100 next week, if rumours are correct.

UPDATE:
I missed Sony Japan's announcement that there will be "no price cut" on the PS3. However, nothing has explained the advertising from Circuit City, nor has there been any word from Sony Computer Entertainment America. Not everything coming from the company's headquarters has held up so far, so we'll leave this out as still very possible - though definitely keep in mind there are conflicting reports.


We've all been a little miffed at the presumptive nature Sony has taken with the launch of the PS3. From hearing about everyone needing Blu-ray in their living rooms to telling us how people will be lucky to own one at its astronomical launch price, it seems the company has had PR mis-fire after mis-fire. It's been a rabbit-like attitude from The Tortoise and the Hare since launch, and it's found Sony in last place so far.

Maybe the hare finally woke from his nap - the PS3 is rumoured for a $100 price drop as early as next week.

The news originally came from a sticky-fingered gamer, who snagged an early copy of an advert for American retailer Circuit City. The ad showed the PS3 at $499 after the $100 "price break," but it was originally expected that this was only at the one chain. However, an anonymous interview with the merchandising manager of 'a large retail chain' at GameDaily has uncovered that it is indeed a country-wide price drop.

According to the source, the prices will be effective as of Thursday, July 12th. Advertising for the new price will begin on July 15th. This new price actually puts the PS3 close to the current XBox 360 prices by the time you factor in the hard drive and an HD DVD drive on the XBox. Whether this constitutes a 'value' has yet to be seen, but it certainly does make it a slightly less bitter pill.

Whether the price drop will domino outside of the United States is currently unknown, as this could just be SCEA's own little incentive for sales. However, if it assists enough with languishing sales, it would be foolish not to carry the trend on to other markets. Though it's unlikely that this will catch the system up to the little-engine-that-could that we call the Wii in very short order, it may help get the console some good traction heading into the school season and finally the holidays.

Do you have a thought on the price drop? Does $499 sound a little more reasonable to you, or is it still too much? Join the community discussion and tell us your ideas.

38 Comments

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Bursar 6th July 2007, 16:18 Quote
Maybe not...
Quote:
"At present we have no plans," Sony President Ryoji Chubachi told Reuters when asked whether Sony had any plans to cut the PS3 price.
Orgat 6th July 2007, 16:25 Quote
They're obliged to deny it until it's ready to go, otherwise they'd stall sales in the meantime.

Quote:
This new price actually puts the PS3 close to the current XBox 360 prices by the time you factor in the hard drive and an HD DVD drive on the XBox.

Without a 360 price drop, the 360 would be far more expensive. Forgetting the HD-DVD drive, once you add in just a Live subscription and a charging cable, you're already close to the PS3's price - but with a smaller hard disk and no blu-ray player. It'd be only $20 more than the 360 Elite also.

But I think 360 has to price drop now also at least if MS wants to be aggressive.
mikeuk2004 6th July 2007, 16:37 Quote
dont forget adding the wireless adaptor too. Well its been on sale in the UK in places for as low as £350 so if there is an official price drop then maybe the RRP will be around £350 and then the odd retailer thats already selling it below the RRP it could be aroun £300, but then who knows.

Isnt this just how rumours start and then get out of hand and people believe it to be gospel
Orgat 6th July 2007, 16:53 Quote
Quote:
Originally Posted by mikeuk2004
dont forget adding the wireless adaptor too. Well its been on sale in the UK in places for as low as £350 so if there is an official price drop then maybe the RRP will be around £350 and then the odd retailer thats already selling it below the RRP it could be aroun £300, but then who knows.

Isnt this just how rumours start and then get out of hand and people believe it to be gospel

Didn't want to include the wifi, because for some people it won't matter. If you want it though, yeah, it adds a lot to the 360's cost.

It's possible this won't be happening, but that's fairly unlikely now I think. There's another leak out of canadian retailer showing the price also being reduced there to $549, or the same price as the Elite. A bit coincidental.
devdevil85 6th July 2007, 17:07 Quote
When you factor in everything the PS3 offers and try compare the 360 to it, the price of the PS3 is the cheapest at $499. Of course, you have to have the money to utilize everything the PS3 offers, but atleast it offers it and you know you're pretty much futureproofed for a good 3+ years. The 360 is a great piece of kit and with Halo 3 on it's way it'll probably be more enticing to buy, but with the way the 360's been failing lately and how M$ hasn't really done anything to target the problem directly in their currently manufactured consoles (other than adding a 3 year warranty for one specific problem), I wouldn't want the headache, so I'd probably get the PS3 if the price dropped $100 AND they come back on their promise(s) on Playstation Home and all of these "180 games" that are supposed to debut by Xmas.
Amon 6th July 2007, 17:14 Quote
I'm going to say these price drops won't happen, at least not this early or by the amount rumoured. It certainly won't help recuperate the investment in the Cell broadband engine since there is still no software incentive to buy it despite such a price drop--no one will still buy it.
rupbert 6th July 2007, 17:47 Quote
The Xbox 360 Premium will be dropped to £199, with an anouncment at E3.

Heard it here first ;)
devdevil85 6th July 2007, 18:41 Quote
Quote:
Originally Posted by rupbert
The Xbox 360 Premium will be dropped to £199, with an anouncment at E3.

Heard it here first ;)
M$ expected to make profit on the 360 by the year 2020...you heard it here first! (but who cares about that? Better for us right?)
DXR_13KE 6th July 2007, 20:58 Quote
Quote:
Originally Posted by devdevil85
M$ expected to make profit on the 360 by the year 2020...you heard it here first! (but who cares about that? Better for us right?)

MS are already making a profit selling the console.
identikit 6th July 2007, 21:03 Quote
What like the $1b they just spent right?
devdevil85 6th July 2007, 21:36 Quote
Quote:
Originally Posted by DXR_13KE
MS are already making a profit selling the console.
First off, show me a link that prooves that statement, secondly just like identikit said, they just spent $1 billion (which will affect how much actual money they made/are making off of the console) and thirdly, this doesn't help either http://www.tgdaily.com/content/view/32781/98/.

Also, if M$ is making money on the 360, then, once the PS3 drops, they will also have to drop their price and that will also hurt that "trend" of profitability. Console manufacturers shouldn't be making money on their consoles until 4-5 years later. It's an investment that takes an upfront loss, so I'm more angry that M$ IS making money on their console already, rather than taking more cost off of the consumer because I still think the 360 is too expensive for what it is, especially the games at $54.99.
DXR_13KE 6th July 2007, 22:09 Quote
Quote:
Originally Posted by devdevil85
First off, show me a link that prooves that statement, secondly just like identikit said, they just spent $1 billion (which will affect how much actual money they made/are making off of the console) and thirdly, this doesn't help either http://www.tgdaily.com/content/view/32781/98/.

Also, if M$ is making money on the 360, then, once the PS3 drops, they will also have to drop their price and that will also hurt that "trend" of profitability. Console manufacturers shouldn't be making money on their consoles until 4-5 years later. It's an investment that takes an upfront loss, so I'm more angry that M$ IS making money on their console already, rather than taking more cost off of the consumer because I still think the 360 is too expensive for what it is, especially the games at $54.99.

i show to you a link to prooove my statement, from a news from 21st Nov 2006 from www.bit-tech.net.

$1 billion is pocket money for a company like MS when you think about the money they are getting from live, games and the console it self.

edit and other sources of income. :p
devdevil85 6th July 2007, 22:35 Quote
Quote:
Originally Posted by DXR_13KE
i show to you a link to prooove my statement, from a news from 21st Nov 2006 from www.bit-tech.net.

$1 billion is pocket money for a company like MS when you think about the money they are getting from live, games and the console it self.

edit and othersources of income. :p
First off, if they are making money then why haven't they dropped the price of the 360 yet? and that was 9 months ago....Secondly, do you actually believe that those are actual figures of what those consoles cost? Those are hardball estimates and I would believe it more if the source of this information was from the actual manufacturer(s). Lastly, why would M$, Sony or even Nintendo want anyone to know exactly how much profit they were making off of you? (That information has to be strictly confidential, or atleast I would assume that) Either way, it doesn't matter who is making profit, it's who is offering the best console at the most affordable price and if M$ is making profit off its console this early on then it is we the consumers that are getting ripped off because games are outrageously expensive and games should be what makes a console manufacturer profit because games should be what dictates a console's acceptance/profitability in the marketplace, don't you agree?
DXR_13KE 6th July 2007, 22:47 Quote
i do agree, i would hope that MS would modify its console so it would be more efficient, have more useful functions and fail less.
if you notice those numbers are quoted as estimates..... 9 months ago, meaning that if at the time they were not realistic, they are more realistic now.
devdevil85 6th July 2007, 22:58 Quote
Quote:
Originally Posted by DXR_13KE
i do agree, i would hope that MS would modify its console so it would be more efficient, have more useful functions and fail less.
if you notice those numbers are quoted as estimates..... 9 months ago, meaning that if at the time they were not realistic, they are more realistic now.
Like I said above, I would rather a console manufacturer make its profit through the sale of its games rather than through the console itself because the whole idea of why we buy consoles in the first place is to play games, but as you can see that's not how it works and because I know M$ could drop their prices at a moment's notice, but aren't, is another reason why I will not purchase a 360 until it has justified its pricetag, not just through its hardware, but through its media as well.
DXR_13KE 6th July 2007, 23:57 Quote
and rate of failure decreases i hope.
Bladestorm 6th July 2007, 23:57 Quote
One version of the rumour I heard was that sony were going to charge $100 less for the PS3 for a week to coincide with some big show (or possibly just at the show) but the normal price was going to remain the same.

presumably to induce a bit of publicity without inducing much more anger from shareholders.
identikit 7th July 2007, 00:24 Quote
Why would shareholders be angry at a price drop? Unit sales is a big thing, if I had shares in Sony I'd want the PS3 to drop in price. It makes sense from a market viewpoint.
themax 7th July 2007, 21:40 Quote
If I was shareholder I would be mad at a pricedrop that is being hyped by media outlets but not actually reported as true by Sony. I think as good as a price drop will be, the media is hurting sales of the PS3 with the continuous speculation. I just caught an iTWire article titled as if Sony has confirmed a Pricedrop of $100, but then goes on to speculate within the article itself. Pretty misleading if you ask me when media outlets use that kind of tactic. Until Sony confirms a pricedrop it would be nice of the media drops the issue, because as long as they keep "speculating" over and over on one people will start to believe it, and when Sony doesn't deliver on a promise never made, people will find one more reason to be angry at Sony for lying to costumers (or something to that nature).
Bladestorm 8th July 2007, 03:09 Quote
Kotaku are reporting several employees from major US retailers like circuit city are reporting the new adverts they are getting in / new price lists are all listing $499. Has there even been any hint of rumour about a price drop outside of the U.S. though ?
DougEdey 8th July 2007, 07:08 Quote
Yerp, Target have certain stores breaking the 15th Embargo.
mikeuk2004 8th July 2007, 14:58 Quote
Quote:
Originally Posted by devdevil85
First off, if they are making money then why haven't they dropped the price of the 360 yet? and that was 9 months ago....Secondly, do you actually believe that those are actual figures of what those consoles cost? Those are hardball estimates and I would believe it more if the source of this information was from the actual manufacturer(s). Lastly, why would M$, Sony or even Nintendo want anyone to know exactly how much profit they were making off of you? (That information has to be strictly confidential, or atleast I would assume that) Either way, it doesn't matter who is making profit, it's who is offering the best console at the most affordable price and if M$ is making profit off its console this early on then it is we the consumers that are getting ripped off because games are outrageously expensive and games should be what makes a console manufacturer profit because games should be what dictates a console's acceptance/profitability in the marketplace, don't you agree?

That is just stupid. The console is a veichle which needs its own profit. So manufactures of PC's (&components) and DVD players or Video Recorders are to sell their machines and gain no profit??? and only take a share of th profit from DVD's and software sales only??

Thats what your saying. And you think that MS should reduce the price on the 360 if they are now making money? If they did that so that they dont make money then why bother wasting time in making it in the first price. MS is a hungry corp that is there to make money and not make you happy.
SNIPERMikeUK 8th July 2007, 15:19 Quote
Take for instance play.com have been selling the premium for £229.99 recently (although if u go to get instore deals, u can get 2 games with it for an extra £50 which is a better deal as u will inevitably need games, so the £50 off the console price, which u are so called saving is not really).... But it does point towards a price cut.... And with the new microsoft care for 3 years that can only be good.

What with Sony rumours of a 80gb model of the PS3, and the current state of it's games, not to mention its price, and possibly useless Blue Ray play back, it really is not looking good in the playstation camp.

As for a PS3 price cut, well it's very much needed, and that said even more so if the 360 decide to cut what is already a winner?!?
DougEdey 8th July 2007, 15:28 Quote
80GB has been confirmed for the korean market because they have more stuff to download then us. Same reason why the US has the 120GB HDD/Elite now and we don't
kempez 9th July 2007, 00:18 Quote
Keep getting tempted to get a PS3 and the only thing that holds me back is the sheer amount of cashage...mebbe this will convince me (along with a game I actually want to play :p)
zabe 9th July 2007, 00:37 Quote
Those $100 won't come down until christmas, Sony will most assuredly try to milk as much money as they can from the PS3 and then boost christmas sales with the price reduction. That is, of course, if they want to sell a bit, given that the $600 mark is getting a bit old and too expensive for that hardware, no matter how innovative it is!! Personally, I'm not getting a PS3 in the next 1.5 years, I wouldn't settle for the good games available now, I'm waiting for the GREAT games.
steveo_mcg 9th July 2007, 10:52 Quote
Quote:
Originally Posted by zabe
Those $100 won't come down until christmas, Sony will most assuredly try to milk as much money as they can from the PS3 and then boost christmas sales with the price reduction.

Really then it seems a bit odd to anounce them now surely that would hit sales for the next 4 months! :D
zabe 9th July 2007, 11:22 Quote
Quote:
Originally Posted by steveo_mcg
Really then it seems a bit odd to anounce them now surely that would hit sales for the next 4 months! :D

lol, my crystal ball seems to be faulty... still, the new price affects USA only, so we're left out in the cold here in Europe. I really doubt Sony will take 100€ off the PS3 here, which leaves us with an already over expensive console (when compared to JAP or USA) until the holiday season...

Guess they need to cash back from all those blue laser diodes!!
steveo_mcg 9th July 2007, 12:25 Quote
True just means now the PS3 is £50 more overpriced
mikeuk2004 9th July 2007, 12:31 Quote
I like the art work of the new 80gb PS3 package with Motor storm posted in the other Ps3 price cut thread where it was confirmed.
themax 9th July 2007, 14:12 Quote
Quote:
Originally Posted by steveo_mcg
True just means now the PS3 is £50 more overpriced

Give it a rest on the overpriced bit. If you don't want you don't want it. It's pretty annoying that nothing is enough for people with Sony. If they undercut the 360 you would probably just complain about the games.


The posters over on kotaku also seem to have a hard time reading. They seem to have understood the 80GB model as $100 for only 20 additional gb of space (Without Motorstorm lol), and that the 60gb is "inferior" because of it's lack of space (A whopping 20gb). People these days, seem to look for anything to complain about now. It's good the price has come down, and I see it as very competitive with the 360 Elite now, and maybe slightly competive with the Premium.
completemadness 9th July 2007, 17:33 Quote
apparently its confirmed

http://games.slashdot.org/article.pl?sid=07/07/09/0253236

reading slashdot this morning and apparently the $499 PS3 is confirmed, though it is slashdot so the words pinch and salt come to mind

if its true, then :-
Quote:
Originally Posted by Orgat
They're obliged to deny it until it's ready to go, otherwise they'd stall sales in the meantime.
DougEdey 9th July 2007, 22:53 Quote
Just so everyone knows, the 80GB version does not have the EE chip, so all emulation for PS2 is going to be Software based.
Amon 9th July 2007, 22:55 Quote
Quote:
Originally Posted by DougEdey
Just so everyone knows, the 80GB version does not have the EE chip, so all emulation for PS2 is going to be Software based.
I thought Emotion was already removed, or was that for PAL units only?
DougEdey 9th July 2007, 23:05 Quote
PAL only
The_Beast 9th July 2007, 23:24 Quote
100usd is a lot but still not enough for me to buy one
Flibblebot 10th July 2007, 13:31 Quote
Apparently, a UK-related announcement is expected Thursday...
devdevil85 11th July 2007, 16:55 Quote
Gamestop had a used 20GB PS3 on sale for $360. I thought, "Wow!, I might actually buy it", but the thought was only for a split second when my conscious came into play. Anyways, they had a used 60GB PS3 for $450, which I thought would be a pretty good steal if the console had any games.
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