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PS3 developer needs price cut for hardware from Sony

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PS3 developer needs price cut for hardware from Sony
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By Justin Robinson
Jul 7, 2009 | 17 Comments
Tags: PS3 | developer | needs | price | cut | hardware | from | Sony

Essential Linkage: Turns out that Sony's PS3 was too expensive after all.

Ever since the PS3 was first released unto the world it has remained attached to something almost as big as the library of games available right now - a pricetag.

The sheer cost of packing a special Cell processor and Bluray drive into the console meant that Sony was actually making a loss on hardware sales.

In fact according to Gamasutra the PS3 costs Sony a lot:

- The PS3 still sells at a 10 percent loss per unit, according to Sony (March 2009 - 2.5 years after launch)

It's no huge leap to guess that an expensive console will mean less people will be inclined to purchase it, but it also seems that the developers of games are finding it tough to code their games to take advantage of the processor and other hardware available.

The CEO of Temco Koei has stepped out into the limelight to say his piece on the PS3:

Whenever I discuss this with Sony reps I always ask them: 'Please cut the price'," Kenji Matsubara told CVG in an interview. "From a publisher's point of view we would welcome a price cut for PS3 and we are waiting, definitely," he added.

There's been a lot of noise from quite a few devs in the past for a price drop, but it isn't likely that we'll see one in the short term.

How much do you think Sony should charge for their PS3 in Australia? Post below with the amount and why.

 

 
 
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17 Comments
Thoughts on this article? Add a comment below.
spaced
Jul 7, 2009 10:44 AM
 Since they're making money on licensing and currently there is no cracks to allow pirated material. They should exploit it by dropping the price. Making it say $400 or $500 it will sell heaps just for the bluray player.
LordBug
Jul 7, 2009 10:50 AM
 Well, considering Activision have threatened to drop the PS3 if they don't cut their prices, I'd be surprised if we don't see some token price drop in the near future.

Linkage: http://business.timesonline.co.uk/tol/business/industry_sectors/media/article6531367.ece

I'm afraid I have no opinion on the price of the PS3 though, as it just has no real attraction to me.
t8y
Jul 7, 2009 10:52 AM
 didnt activision make a similar claim recently (or threat even - to drop developing for ps3 totally?)

sad, but its the sort of action thats probably needed.
Argotha
Jul 7, 2009 10:55 AM
 Lets be honest. We would all like to see this thing come out for free. But even so we would all be busy with our lovable PC's.

:P

OT: Is it just me or has the font of the comments changed?
HokeyWhiteBoy
Jul 7, 2009 11:23 AM
 I guess they need to work with the game developers regarding licencing fees. Sony has to make money somewhere, but they also developed a console that is way to hard to code for, and way to expensive to buy.

Maybe they could say... we will sell the console $199.00 but then we want more money for every game you sell. More consoles out in the market means more game sales, so every one (including the consumer and the retailers) win?
Pari
Jul 7, 2009 11:33 AM
 Jesus, if they drop it down to 450-500 with a new release game or remote you will see a massive increase in sales for the ps3 for its blu ray capabilites.

t8y
Jul 7, 2009 11:48 AM
 yes but if they drop it that low, will they get their money back on game sales, or will people just buy it for the BD player and maybe buy a token game or two?
studor
Jul 7, 2009 1:17 PM
 I think $500 is a fair price. It makes a great multimedia device at that pricepoint for the loungeroom. I must admit though the only reason I have one was because it was free with my Bravia purchase. :)
thesorehead
Jul 7, 2009 3:31 PM
 t8y - if they buy it as a BRD player Sony still wins, as one of the owners of BRD tech and probably the single biggest publisher of BRD movies/video.

Personally I'm with the "price it as though it were a premium BRD player" crowd. PS2 had huge penetration, partly because that's how it was priced at the start of DVD uptake, and it dropped rapidly more or less in line with DVD player prices.

With 360 at Wii-like prices, Sony really has to use their one big advantage in the BRD drive. Bundle the thing with a remote and a few movie hire vouchers and/or HD DLC vouchers, and drop the price to the $500 range.
box124
Jul 7, 2009 3:57 PM
 they are already losing 10% every unit sold, if they kept the original design of the ps3 and just made cost less that ain't going to do anything for sony they need to lower the manufacturing costs of the ps3,either by finding a more efficient way of producing the guts of the ps3 or making a ps3 slim with less beefer guts inside which will lower the costs in the long run. Like in all honesty who the fuck needs that cell processor right now. they should of opted a better gpu then that silly cell processor.

The wii proved that people wont buy a expensive piece of hardware if the only thing going for it is that its got good tech inside.
strifus
Jul 7, 2009 7:00 PM
 I'd have to agree with the $500 price point. It may seem a bit low but really, as everyone has pointed out above, it would really make sales skyrocket to say the least and therefore increase profits in the games area where they make most of their money. The game devs know that they are talking about and wouldnt ask for a price drop if it werent really needed.

I wouldve bought a PS3 if the initial release price wasnt so high. Now, over a year later, I am still not inclined to buy one just for the gaming. I dont even have a BRD player because of the premium I have to pay for a BRD just to update my current collection.

Sony has to ask itself the questions. Are they willing to keep prices the way they are to recoup development costs and hope that uptake will increase in time? Or will they drop the price, see the increase in uptake that way and see more long term benefits from game development?

I have to say that the PS3, although a technical marvel is a bit of a disappointment. With an asking price thats way too high and the lack of any really good titles are just some of the things that see me still not owning one. With the PSX and PS2, however, there were a boatload of games bad or good, it was fairly priced and could act as your home entertainment interface at that fair price, and was the main reason why it was such a successful successor to the PSX. So, Sony, whats it going to be??
AIMBOT
Jul 7, 2009 7:07 PM
 I'm looking at a 360 right now. I find I enjoy that console a lot more, and unlike the PS3, IT DOESN’T FEEL LIKE I’M BEING RAMMED IN MY ARSE THOUGH MY WALLET.
SceptreCore
Jul 7, 2009 7:10 PM
 I agree with Strifus. That's why I don't own one either. I'd love to have one for when Gran Turismo 5 hits, but truthfully, at their asking price, it doesn't make me want to get it. Besides, I am content to wait and play my PC until it drops so low that most people have already completed the game... and I have not.
TheFrunj
Jul 7, 2009 11:04 PM
 Randomly stumbled upon this link from Atomic in 2004 about the Cell processor - still in development!

http://web.archive.org/web/20040602215505/www.atomicmpc.com.au/news.asp?aid=19603&cid=76&sid=28&pid=1

Enjoy!

-JR
d3c4y
Jul 8, 2009 7:07 AM
 I find it interesting that with the kind of technology industry we have today, where things are constantly being superceded, price dropped, and bargain binned, Sony still hasn't been able to get a cheaper price on 2.5 year old components that make up the PS3.

Surely, just due to component pricing, it must be costing them less to build. Very few things in computers these days holds their price for 2.5 years.
brissietex
Jul 8, 2009 10:08 AM
 To tell the truth, I would've easily bought a PS3 at the current price if Sony hadn't drop PS2 backward compatibility and messed around with the skus so much. Now, everytime I look at the PS3 in the shops, I shake my head and walk away. Sorry, Sony, you lost a customer when you pulled out the BC feature for something that is already so expensive.
czerney
Jul 8, 2009 10:51 AM
 If they drop the price on the condition that say 5 games must be purchased then I'd be a lot more interested. I get more for the same money, 5 games are sold which makes developers happy, Sony gets more kick back from the games sales. Win/Win/Win.
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