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[PlayStation Tree]

There's a couple of things I haven't heard mentioned much about Sony's pricing for the PS3 that I think are important.

Consol makers recoup their costs of initial hardware production through software licensing. This we all know. But the PS3 will also recoup some of the cost of the cell development through its licensing out to TV makers etc.

Also, the cost for developing the blu-ray technology will be paid for through the high initial prices of the first stand-alone players. This way the PS3 is free from shouldering those costs, and will only need to charge what the drives cost to manufacture.

So I dont think that the PS3 will have to cost much more than the PS2 did, if those elements of the manufacturing costs which are above and beyond what Sony has included in the past will be "covered" by other means.

 

[elostyle]

Consol makers recoup their costs of initial hardware production through software licensing. This we all know.

No we don't know that. R&D cost, yes. Hardware cost, no one knows. Or does anyone?

 

[TheJollyCorner]

remember the good ole days when these consoles would launch with a game and two controllers... and a robot? R.O.B.!

If PS3 came with a robot, I'd gladly pay a few bucks more.

 

[Agent Icebeezy]

$499 is my vote.

Also, consider this.

They won't have enough systems in any region, so whatever price they name, they'll get. It's a bit of raking the customer, but given the launch prices of BD players (and HD-DVD players for that matter), it would be a completely justified price and they can drop it $100 when more stock is available after six months or so. They can also throw in some "bundle" items to make it look like a great deal that really cost them nothing (Spider-Man 1 & 2 on Blu-Ray, HDMI cables, a headset - sound familiar?).

This is my vote too. I'll be ready to drop money once pricing is announced

 

[citan]

Yes it would. The people who would be scared off by the price would not be picking up for 399 anyway

I will pick it up for 399, if it's any more, sony is going to get rocked by Microsoft (and I hate microsoft) espically with the revolution going to be a lot less than the 360 and ps3.

 

[XMonkey]

given what we know: HD-DVD's bargain priced HD-DVD player is at $499. so, one could extrapolate that BR-DVD's bargain player will most likely be the all powerfull PS3.

Doesn't quite work like that. I'll bet a million bucks that the $500 HD-DVD player doesn't cost too much to make. Why? Because consumer electronics companies usually jack up prices on early adopters to make some money back and they know the early adopters will pay those prices. This is not the situation with game consoles because they are all launched at a loss.

 

[sonycowboy]

Doesn't quite work like that. I'll bet a million bucks that the $500 HD-DVD player doesn't cost too much to make. Why? Because consumer electronics companies usually jack up prices on early adopters to make some money back and they know the early adopters will pay those prices. This is not the situation with game consoles because they are all launched at a loss.

But, consider how low volumes are on the early units. They'll be lucky to ship even 100k. Running factories for low runs, the R&D, marketing, and such make for some fixed costs that require higher prices when selling lower volumes.

@$499, they won't be making any real money at all.

 

[choplifter]

they speculated that PlayStation2 would cost $850

same thing now.

 

[Mrbob]

$499 is my vote.

Also, consider this.

They won't have enough systems in any region, so whatever price they name, they'll get. It's a bit of raking the customer, but given the launch prices of BD players (and HD-DVD players for that matter), it would be a completely justified price and they can drop it $100 when more stock is available after six months or so. They can also throw in some "bundle" items to make it look like a great deal that really cost them nothing (Spider-Man 1 & 2 on Blu-Ray, HDMI cables, a headset - sound familiar?).

Might as well concede next generation to Microsoft now if this is the launch price.

$399 is pushing it.

Kaz Hirai has already mentioned previous pricing should indicate future pricing regarding Playstation 3. Now it doesn't mean $299 but $499 is absurd imo. Sony can't go above $399 or they will lose. Sony needs PS3 to keep people to buy into Blu Ray. $500 is way too high to take the plunge. Especially if MS drops the core system to $250. A system half the price can push out nearly the same quality gaming experience? Adios Sony and they deserve to get pummelled.

Besides, Sony has always priced their Playstation products for the long term, even if it meant taking a bigger hit in the beginning.

 

[Kleegamefan]

299 FTW (and I do mean win)

 

[xaosslug]

Doesn't quite work like that. I'll bet a million bucks that the $500 HD-DVD player doesn't cost too much to make. Why? Because consumer electronics companies usually jack up prices on early adopters to make some money back and they know the early adopters will pay those prices. This is not the situation with game consoles because they are all launched at a loss.

you must really know your stuff if you're willing to bet a cool mil. on it. B-O

but, that wasn't my point, son. my point was in order for BR-DVD to be competitive, which they will need to be, they will prob. release a BR-DVD player in HD-DVD's player's price range. that will be PS3.

remember the good ole days when these consoles would launch with a game and two controllers... and a robot? R.O.B.!

If PS3 came with a robot, I'd gladly pay a few bucks more.

"hey there, tiger"

 

[Mrbob]

299 FTW (and I do mean win)

I agree. Sony could go for the kill with a 299 pricepoint. The thing about Playstation 3 is if Sony prices the system at 299, they could feasably keep the price there for 2 to 3 years.

 

[Kleegamefan]

I agree. Sony could go for the kill with a 299 pricepoint. The thing about Playstation 3 is if Sony prices the system at 299, they could feasably keep the price there for 2 to 3 years.

That is correct......299 and no price drops in our lifetime....

 

[DCharlie]

almost agree with MrBob who is reiterating what i've said a few times, with the exception that i'd expect a 39800 yen price point here, and a $379 price point in the US.

 

[HomerSimpson-Man]

$700? Bwhahahahaha, yeah right.

 

[Speevy]

At half a grand, I don't think any console could survive for very long.

 

[Mrbob]

almost agree with MrBob who is reiterating what i've said a few times, with the exception that i'd expect a 39800 yen price point here, and a $379 price point in the US.

Oh I see how it is! :lol

Sony is battling two fronts with PS3, which is why I think it'll be lower than $379, and closer to $299. Sony is battling the game front and the movie front in one product. A $299 product effectively effectively damages two birds with one stone (won't say kill because 360 will still be around. But will probably do around XBox numbers or a little more if PS3 launches at 299). Two battles would be over before they started, and Sony makes out better in the long term by selling more movies and games than if they launched at a higher pricepoint. But you might as well concede the traditional console game market to Sony if PS3 sells another 100+ million systems. This would be over 15 years of domination.

 

[xaosslug]

At half a grand, I don't think any console could survive for very long.

i think Playstation has proven to be much more than just "any console"

not that i want it to come in high, in fact i'm hoping it's low. easier on my wallet. i just don't want to get my hopes too high.

 

[DCharlie]

Oh I see how it is!

I didn't mean it like that, just that i've posted several long boring posts on what Kutaragi meant by the PS3 being "expensive" and how i think Sonys philosophy on pricing has shifted somewhat. That's all

"Sony is battling two fronts with PS3, which is why I think it'll be lower than $379, and closer to $299. Sony is battling the game front and the movie front in one product. A $299 product effectively effectively damages two birds with one stone (won't say kill because 360 will still be around. But will probably do around XBox numbers or a little more if PS3 launches at 299). Two battles would be over before they started, and Sony makes out better in the long term by selling more movies and games than if they launched at a higher pricepoint. But you might as well concede the traditional console game market to Sony if PS3 sells another 100+ million systems. This would be over 15 years of domination."

Personally, i think Sony need to worry more about Nintendo to be quite honest. I don't see the X360 going anywhere in a hurry to be honest, well... okay... maybe in Japan it's going to struggle unless Blue Dragon, Lost Odd. *hfnnn* *hfmmm* and *Fnanfafa* help out.

I'd say $299 PS3 would be awesome for us, but wouldn't be a great move for Sony. $379 is a very good price for what you get, there is no need (or pressure really!) for sony to come in at $299 this time.

 

[HokieJoe]

no reason for it to cost more than Xbox core with no HDD, or Xbox premium with a HDD. Any R&D will be eaten up, so you're just looking at component costs



The chips are no more than the Xbox ones. Same amount of memory, a big CPU and a graphics chip. And Sony are fabbing them so no reason for them to cost any more (might even be cheaper).

bluray drive is just a DVD with a different coloured laser.

bluetooth - well Sony are one of the largest users of Bluetooth in Sony ericsson handsets, so they probably have a good deal with a supplier, or make their own.


$400.

At first, the Xenon and Cell will perhaps be commensurate in cost to manufacture. I would expect Sony to get much better economies over time. However, even with spreading the R&D costs about STI, I would guess that Sony will have a shitload more invested in the Cell when you factor in the up-front cost of fabs and such.

That also doesn't count their R&D, manufacturing, business wrangling, etc... to get Bluray a majority stake with the studios. Certainly they aren't absorbing all of the cost, but they don't exactly have a minor stake in Bluray's outcome either.

Moreover, Sony has some financial worries ATM.

My guess is $499, and for all of the mojo that they're stuffing in that box I suspect that most of you will say, "Thank you sir, may I have another".

 

[sonycowboy]

Might as well concede next generation to Microsoft now if this is the launch price.

$399 is pushing it.

Kaz Hirai has already mentioned previous pricing should indicate future pricing regarding Playstation 3. Now it doesn't mean $299 but $499 is absurd imo. Sony can't go above $399 or they will lose. Sony needs PS3 to keep people to buy into Blu Ray. $500 is way too high to take the plunge. Especially if MS drops the core system to $250. A system half the price can push out nearly the same quality gaming experience? Adios Sony and they deserve to get pummelled.

Besides, Sony has always priced their Playstation products for the long term, even if it meant taking a bigger hit in the beginning.

If they all sell at $499, then why can't they launch at that price? Then drop the price when supply allows. It hasn't really happened in this market like that before, but every other consumer electronics market it happens that way. Early adopters get raked and the standard consumer gets it at half the price.

 

[Mrbob]

If they all sell at $499, then why can't they launch at that price? Then drop the price when supply allows. It hasn't really happened in this market like that before, but every other consumer electronics market it happens that way. Early adopters get raked and the standard consumer gets it at half the price.

Yeah, they could launch at $499, but then a ton of people are going to buy 360 instead. What if the HD DVD add on is $149, and by the time the PS3 launches the core system is $249 and the premium $349? You can get a 360 premium w/ HD DVD add on for the same price. Or the core w/ HD DVD drive for 100 dollars cheaper. Is Sony ready and willing to sacrifice long term goals for short term gain? Also ready to jeapordize Blu Ray success at the same time? This has never been their strategy with Playstation products. I also have a hard time believing a $499 Playstation 3 can enable sustained sales. Plus it would look bad dropping the system 100 dollars in 6 months.

 

[artful_dodger]

I foresee them making a value - pack type scenario again like they did with the PSP to make money off of some of the components that are not tech - related.

IE PSP value pack = cover, memory stick, headphones, sampler disc, etc. $249

PS3 Value pack = extra controller, memory stick, hard drive, sampler disc and a Blu-Ray Spiderman 3. $399-449

 

[Speevy]

Well anyway, if it's $499, I don't want to read another word about the value of the Xbox 360. Enjoy the Blu-Ray players, I guess.

 

[Doc Holliday]

I don't know, 500 bucks for a gaming console is really pushing it. We're talking neo geo and 3do territory. That would be an extremely risky move considering Nintendo might release a console at $200 and the 360 being 299.99-399.00 in the us with a possible price cut.

 

[Blaster1X]

299 FTW (and I do mean win)

Not going to happen.

 

[HokieJoe]

Yeah, they could launch at $499, but then a ton of people are going to buy 360 instead. What if the HD DVD add on is $149, and by the time the PS3 launches the core system is $249 and the premium $349? You can get a 360 premium w/ HD DVD add on for the same price. Or the core w/ HD DVD drive for 100 dollars cheaper. Is Sony ready and willing to sacrifice long term goals for short term gain? Also ready to jeapordize Blu Ray success at the same time? This has never been their strategy with Playstation products. I also have a hard time believing a $499 Playstation 3 can enable sustained sales. Plus it would look bad dropping the system 100 dollars in 6 months.

I honestly believe that Sony aren't worried about the long term. They know that they'll surpass MS in console sales. However, the brief up front bleeding of early adopters might weigh considerably in their overall profitability.

I don't know what that point is, but I'm sure that they will cut it as close as they can without scaring customers away. Besides, look at what the 360 was bringing on eBay. I'm sure Sony took note of that.

 

[Doc Holliday]

I swear everytime sony releases a gaming system we go through the same thing.

 

[Diablos]

Why is everyone saying $499?? Sony is not stupid!

 

[Doc Holliday]

Why is everyone saying $499?? Sony is not stupid!

Because every other sony console was released at 499.99 duh...



OMG ps3 was suposed to cost $500! sony is selling it at 350!! Awesome deal, so much powah at an affordable price. +10000 sony hype machine.

 

[Deku]

I think $600-$500 on launch in Japan

$400-$500 when it launches stateside.

 

[Kleegamefan]

Yeah, they could launch at $499, but then a ton of people are going to buy 360 instead. What if the HD DVD add on is $149, and by the time the PS3 launches the core system is $249 and the premium $349? You can get a 360 premium w/ HD DVD add on for the same price. Or the core w/ HD DVD drive for 100 dollars cheaper. Is Sony ready and willing to sacrifice long term goals for short term gain? Also ready to jeapordize Blu Ray success at the same time? This has never been their strategy with Playstation products. I also have a hard time believing a $499 Playstation 3 can enable sustained sales. Plus it would look bad dropping the system 100 dollars in 6 months.

This is a great point...


With BD and SACD capabilites out the box, Sony has to potential to attract a new (up)market of audio/videophiles who may consider a console for the first time, and who wouldn't balk much at a $500 pricetag considering the price of other BD and SACD players on the market....not to mention PS3 is the only device to combine the two technologies sofar...


There is so much pent up demand for PLAYSTATION 3 that I don't a high price would limit sales.....SCEI will most likely sell out at either 299, 499 and everywhere between...

Of course CELL, RSX and BD and the manufacturing plants to make all this hard/software is expensive, *but* (big but) Sony will also be receiving revenue that MS and Nintendo consoles do not through licensing some of this technology (BD hard/software, CELL)..

Furthermore, Sony could ponentially receive license revenue from CELL and (especially) Blu-ray long after Nintendo (2011?) or Microsoft(2009?) replace revmote/X360 so this is another factor to consider.....CELL and Blu-ray are expensive but could yield dividends down the road, independent from the PlayStation brand......at least that option exists whereas with X360 and revmote it does not...

That said, I don't think Sony would risk losing sales to X360 in the western markets by pricing it much beyond Microsofts console, if at all....

 

[SolidSnakex]

OMG ps3 was suposed to cost $500! sony is selling it at 350!! Awesome deal, so much powah at an affordable price. +10000 sony hype machine.

Exactly, its actually funny that so many people haven't caught onto this. Everytime they launch a system they hype its technology up so much that they have people believing that its impossible for it to be anything other than some super high price, and then they announce its real price and the hype shoots through the roof. But hey, i'm a Sony fan so i'm glad people haven't caught onto it.

 

[Kleegamefan]

Exactly, its actually funny that so many people haven't caught onto this. Everytime they launch a system they hype its technology up so much that they have people believing that its impossible for it to be anything other than some super high price, and then they announce its real price and the hype shoots through the roof. But hey, i'm a Sony fan so i'm glad people haven't caught onto it.

Yeah, we went through this same thing not even 18 months ago with PSP....

 

[Speevy]

Yeah, we went through this same thing not even 18 monts ago with PSP....

And the machine has leveled in two regions, while many people (here) think it should drop price because $250 is too much.

 

[SolidSnakex]

Yeah, we went through this same thing not even 18 monts ago with PSP....

With the PS2 also, where the numbers were really high because of all the hype they'd built for the EE and the DVD player.

 

[Starfire]

A steak dinner.

 

[Kleegamefan]

A steak dinner.

...in Japan amirite?

 

[Diablos]

Because every other sony console was released at 499.99 duh...



OMG ps3 was suposed to cost $500! sony is selling it at 350!! Awesome deal, so much powah at an affordable price. +10000 sony hype machine.

Were you here around 2000?
To all of you who were --
Tell me that this doesn't remind you of pre-PS2 launch discussion. Everyone said the SAME THING!

 

[Kleegamefan]

Were you here around 2000?
To all of you who were --
Tell me that this doesn't remind you of pre-PS2 launch discussion. Everyone said the SAME THING!

Even the original PSOne had price speculations all over the map, which made the E3 1999 press conference "Two hundred, ninety nine dollars, thank you" bitchslap all the more impactful...

 

[byproduct]

I don't see why Sony wouldn't start off with some ridiculously high price point (early adopters will pay anything - look at the +$1000 Xbox 360 packs), and then lower the price as they ramp up production.

No point starting at a price everyone can afford if you can't produce enough consoles to satisfy demand, and with all the new tech in PS3 I am sure they will have some production problems at the start. They would probably sell out their initial stock at $599 or $499 just as easily as they would at $399 or $299.

Plus if people buy X360s due to the PS3 price being so high at the start they are still likely to buy a PS3 later once the price comes down, provided there is a noticable difference between the performance of the two machines. Meanwhile PS2 is still going strong for diehard sony fans who just wont buy from another company.

I reckon the initial price will be $449-$499 or even higher.

 

[HomerSimpson-Man]

Were you here around 2000?
To all of you who were --
Tell me that this doesn't remind you of pre-PS2 launch discussion. Everyone said the SAME THING!

Yeah, I still got an issue of PSM when PS2 was reveiled in 1999 and the talked $500-800 was already in there. Nothing changes over half a decade later I suppose.

 

[Diablos]

Yeah, I still got an issue of PSM when PS2 was reveiled in 1999 and the talked $500-800 was already in there. Nothing changes over half a decade later I suppose.

Nope, apparently not.

In a WORST CASE SCENARIO, I'd guess that Sony would price the PS3 to match the $399 360 Premium Pack. There's no way in hell they would make it more than their competition, ESPECIALLY since you can count on MS having lots of killer apps releasing shortly before, during, or right after PS3's launch.

 

[conker]

Sony could charge 700 and get away with it.

The demand will beat out the supply.

If you see people selling your shit on eBay and turning a profit, then you should have sold for higher.

Sony will NOT be able to meet demand at 400 or below.
A price like 600 or 700 will make demand lower, but will probably still sell out or almost sell out.

When you're talking about the first 2 million or so consoles, upping your price by even 100 dollars gets you LOTS more money.

Sony could easily launch at 700 and drop to 600 when supplies exceed demand, then drop to 500. A 200 dollar price drop in a matter of months would be insanity, though, especially with many retailers offering price protection.

The playstation brand has a hell of a lot of appeal. Sony can get away with charging tons of money for it initially.

However, I think they'll launch at 500, maybe lower.

The later they launch, the more likely 400 is. The earlier they launch, the more likely 500 is.

I seriously doubt 300, unless it's some crippled double tard pack that doesn't have the grilling capabilities the normal ps3 has.

I only forsee a price above 500 if it includes some sort of "extras" like controllers, memory cards, HDD, etc.

Of course, don't fucking think people will be able to buy a PS3 for it's actual price.
BUNDLES BUNDLES BUNDLES. The X360 launch was only the beginning. Make your preorders now, at 5 stores, and make sure you don't sign up for some bundle bullshit.

I wouldn't be surprised if Sony pulled a 400 PS3 out of their ass, but made it virtually impossible to buy because of BUNDLES.

 

[byproduct]

Good point. Bundles create good attach rates and allow you to drop the price whenever you want (by "un-bundling" the hardware).

 

[Ryudo]

The way i see it is that they dont really have enough funds to not price the thing over $400. Sony doesnt have the funds that MS have at their disposal and for a peice of hardware thats supposedly "so killer" its not going to be cheap to make.

499 is probably their sweetspot i think.

 

[Kleegamefan]

I seriously doubt 300, unless it's some crippled double tard pack that doesn't have the grilling capabilities the normal ps3 has.

:lol :lol :lol

 

[kaching]

399, tops, for the US at least. Anything higher than that and, yeah, they'll get the early adopters, but then sales will flatline.

 

[Guy LeDouche]

Can we just put a moritorium on these kinds of threads until Sony makes something official? Out of all the pointless shit GAF debates ad nas, this has to be the most worthless.

$700!
$299 FTW
$500
You're crazy! Sony has no money! $600+
No, you're a stupid XBot! $350!


No one has any basis for anything.

 

[Ben Sones]

The PS3 will sell for seven dollars. You heard it here first, folks!