Analyst: PS3 Price Cut May Be Too Little, Too Late

Discussion in 'Video Games and Technology' started by drippy, May 24, 2007.

  1. drippy

    drippy is a freethinker.

    Joined:
    Jul 1, 2002
    Posts:
    2,642
    Trophy Points:
    186
    Likes:
    +0
    http://biz.gamedaily.com/industry/feature/?id=16277

    Found the analyst's comments interesting.

    $50 price cut meaningless.

    $100 price cut not significantly meaningful.

    $200 price cut needed to gain ground but not likely to happen.

    Success of the Wii could hurt third party publishers.
     
  2. pscoop

    pscoop Dead inside

    Joined:
    Dec 16, 2006
    Posts:
    5,449
    News Credits:
    7
    Trophy Points:
    176
    Likes:
    +7
    Every little bit helps IMO. I think PS3 will pick up steam by the holidays with more games like Little Big Planet, and improvements to the network like Home. The price drop will help also.
     
  3. Gigatron_2005

    Gigatron_2005 President of Calendars

    Joined:
    Jul 2, 2002
    Posts:
    7,871
    Trophy Points:
    227
    Likes:
    +1
    All I know is that if I saw an announced price drop of $100 today, I would go buy the system today, as well as maybe a few blu ray movies.
     
  4. flamepanther

    flamepanther Interested, but not really

    Joined:
    Oct 10, 2005
    Posts:
    10,507
    Trophy Points:
    292
    Likes:
    +125
    First of all, we already know how often analysts are wrong, which is to say nearly always. I don't see Sony making a huge leap in popularity this year, but they're not doomed or anything.

    So, he thinks that an industry-wide shift towards the Wii would be bad for 3rd party publisher profits in the long run because Wii game prices are lower, while R&D costs have been increasing and because Nintendo is still the dominant publisher for the Wii? Well lets see... Nintendo is still the dominant publisher for Wii because nobody's been making better games for it than they have yet. Also, if there's an industry-wide shift toward Wii, wouldn't those development costs, you know, drop? Brilliant.
     
  5. Frognal

    Frognal Prodigal Son Returned

    Joined:
    Aug 2, 2003
    Posts:
    4,503
    Trophy Points:
    186
    Likes:
    +0
    The price is only part of the equation, right now there is virtually nothing worth playing that isn't cross platform.
     
  6. flamepanther

    flamepanther Interested, but not really

    Joined:
    Oct 10, 2005
    Posts:
    10,507
    Trophy Points:
    292
    Likes:
    +125
    The analyst mentions lack of compelling exclusive games as a factor in Sony's problems.
     
  7. Atomsplitter

    Atomsplitter Needs a new title.

    Joined:
    Dec 19, 2004
    Posts:
    3,915
    Trophy Points:
    201
    Likes:
    +0
    Agreed, minus the movies, and the whole today thing. A 100 cut would be significant enough for me to pick up the 60 gig. That's what i'm hoping when (if, yeah yeah) the 80 gig comes out here.
     
  8. Spartan-117

    Spartan-117 Well-Known Member

    Joined:
    Feb 13, 2003
    Posts:
    1,813
    Trophy Points:
    161
    Likes:
    +0
    £200 probably wouldn't convince me to pick it up. Right now all I want is MGS4. I would have went in for Final Fantasy as well but they're ripping the arse out of it with this concept of games across systems telling the complete story. So what else does PS3 have to make me buy it? Approximately nothing. Especially with DMC4 apparently coming to 360.
     
  9. redsquadron

    redsquadron Token idiot...

    Joined:
    Feb 10, 2003
    Posts:
    2,390
    Trophy Points:
    186
    Likes:
    +0
    What can I say? Every system I buy seems to go belly-up despite me really liking it (Saturn, Dreamcast, N64 to name but a few).
    I was hoping the PS3 would be an exception as, quite frankly, it rocks my world right now (I've played RESISTENCE FALL OF MAN through 3 times, consider the GRAN TURISMO HD demo to be borderline photo-real and think Blu-Ray CASINO ROYALE looks amazing!). I can't be that unlucky can I??

    Personally I see the Wii as a waste of time. Even the 'pad shaking' of CALL OF DUTY 3 left me cringing with embarassment, so a whole platform based on the concept leaves me cold. Oh well, it's caught on so who am I to argue?

    Here's hoping it's just an innacurate 'analysis', but with KILL ZONE 2 and ARMY OF TWO imminent (as well as TRANSFORMERS of course!) I should get a few goodies out of the beast even if the worst happens.
     
  10. misterd

    misterd Well-Known Member

    Joined:
    Aug 10, 2002
    Posts:
    3,700
    Trophy Points:
    186
    Likes:
    +0
    Console costs and consumer support follow a simple curve. Right now, the PS3 is priced well beyond the means of average or even many above average consumers, especially outside the holiday season. A $100 price cut will only marginally increase its availability. As for software, one problem is that none of those games are presold franchises, which means they will have to find an audience to build word of mouth in order to attract new gamers, and with so few PS3 owners out there, that's going to be an uphill battle, especially when MS and Nintendo are bringing out some huge guns later this year.

    Unfortunately, the only saving grace the PS3 has at the moment is BluRay, but I suspect many consumers don't give a shit about that. Few people own HDTVs right now, and many of those that do actually don't use HD cable or satellite. They just wanted the larger, wider screen. And of course it is the BR capability that is mostly responsible for the console's price. So, ironically, while it may be the PS3 that saves BR, it may be BR that brings down the PS3.

    As for the other consoles...

    The Wii is hurting for quality software right now, but that's pretty typical in a post-launch period. However, perhaps because it needs less development time, it looks very likely that it'll get its major games (MPC, SSBB, SMG) into the market before the holiday season, which will help keep it competitive with the 360 (which it is projected to pass in sales come September).

    The 360 seems to be suffering now too, but I think there are two (or three) reasons for that. First the price. It's not as high as the PS3, and given the capabilities very competitive with the Wii, but most gamers know systems drop prices after being on the market for a year. The 360 has actually gone longer without a drop than any console I can recall. I suspect that many are just waiting for that first price cut (whether it be $50 or $100) before pulling the trigger. Second, the word is out on the consoles technical problems, and I think savy gamers are waiting for the newer models to make it. If there is a third point, its that, like its competition, there's not much coming out now. If you HAD TO play GOW, you already got the console. If you are waiting for HALO3, no real need to jump now. But between the two I don't see much that will drive up sales.
     
  11. misterd

    misterd Well-Known Member

    Joined:
    Aug 10, 2002
    Posts:
    3,700
    Trophy Points:
    186
    Likes:
    +0
  12. misterd

    misterd Well-Known Member

    Joined:
    Aug 10, 2002
    Posts:
    3,700
    Trophy Points:
    186
    Likes:
    +0
    I'd agree that DC and Saturn went belly up, but the N64, though failing to outcompete the PSX, had a fairly normal lifespand, and produced many of the best games of its generation.

    I think this sums up the PS3 problem well. All it has is Resistance, graphics and BR. Most people don't care about BR, and photoreal graphics don't make a great game.
     
  13. flamepanther

    flamepanther Interested, but not really

    Joined:
    Oct 10, 2005
    Posts:
    10,507
    Trophy Points:
    292
    Likes:
    +125
    Yes, because luck has very little to do with it. Most consoles that go "belly-up" do so because they don't sell enough units right at the beginning of their generation. Sometimes that's because they price themselves out of the market. Sometimes it's because they don't have enough good exclusives that people want due to development costs or lack of developer interest. If you get both problems, then a consoles chances are even more crippled, and it looks like the PS3 is in danger of falling into that situation. Sony may be able to turn things around, but it will be extremely difficult.

    Incidentally, the N64 didn't go "belly-up". It did fairly well, despite failing to dominate the market as expected. If you're lucky, the PS3 will fall into that same scenario. I also find it ironic that you're now rooting for Sony, despite their having no small part in the demise of the other systems whose failures you lament.
    I think you're in for a rough time this generation. The pattern that console wars usually seem to follow is this: The system that can sell the most consoles in the first couple of years will get the most exclusive games. The system with the most exclusive games then outsells the competition even more, which gets them more exclusives, and so on until the competition is all but squeezed out of the market. Right now, the Wii is poised to take the top position, with Xbox 360 getting bumped down to second. Any way you look at it, the PS3 is unlikely to do better than third place in a three man race. Odds are good that the gap between those places will only expand with time.
     
  14. Dragonclaw

    Dragonclaw Comic Ink - Dublin, CA

    Joined:
    Aug 5, 2003
    Posts:
    6,413
    News Credits:
    5
    Trophy Points:
    227
    Likes:
    +15
    I think PS3's biggest asset is also its biggest liability. I'm not going to buy a Blu Ray player...especially while DVD is still doing very well. Personally I just see no need to upgrade to the new format for quite some time. Add to that the fact that there's only a couple games that really pique my interest and the PS3 becomes $599 that is better spent elsewhere. To those who say "But Blu Ray is doing really well"...sure it is...because there's very little ELSE to do with all the PS3's that did sell :p  May as well buy a movie :) 

    As a parent, if my son wants a newer game system the price would DEFINATELY prompt me to purchase a Wii or the 360. I could buy either system with a good chunk of games for less than the PS3. As a parent, that's a no brainer. The PS3 will continue to be the "third choice" with parents until it can come in at the same price as it's competiton or lower, and with the Blu Ray technology Sony would have to lose a hell of a lot on each system to pull that off.
     
  15. Smasher

    Smasher HUNKY BEATS

    Joined:
    Feb 6, 2004
    Posts:
    12,705
    News Credits:
    3
    Trophy Points:
    256
    Likes:
    +3
    Being a Bluray player is nice, but its the games that will attract my dollars.

    Sony has done little in that department and doesn't appear to doing much in the near future. I had no idea it was doing so poorly in Japan -very surprising.

    I promise you if these numbers don't turn around then we will hear announcements of MGS4 and FFXIII on the 360 despite anything else we may have already heard to the contrary.
     
  16. godsenddeath

    godsenddeath . TFW2005 Supporter

    Joined:
    May 26, 2005
    Posts:
    4,896
    News Credits:
    2
    Trophy Points:
    216
    Likes:
    +2
    *The following comments are from somebody who owns a PS3, and is happy enough with the games available*


    Even if Sony do bring the Price of the P3 down to the price of the 360, MS could just cut the price of the 360.....

    On top of which after the latest update, Bluray playback in itself is less of a selling point, i gotta say my old 576P Spiderman DVD now looks fantastic.
     
  17. drippy

    drippy is a freethinker.

    Joined:
    Jul 1, 2002
    Posts:
    2,642
    Trophy Points:
    186
    Likes:
    +0
    The parents I typically deal with, multi-millionaires, don't bat an eye when it comes to $600 for a PS3 (or anything else).

    And as a parent, pricing alone would not in and of itself sway me to go with one console over the other.

    I do understand the point you're making though. :) 
     
  18. Dragonclaw

    Dragonclaw Comic Ink - Dublin, CA

    Joined:
    Aug 5, 2003
    Posts:
    6,413
    News Credits:
    5
    Trophy Points:
    227
    Likes:
    +15
    See, my son is 6...and I'm a good nine hundred thousand dollars and change shy of millionaire status...so buying a $250 Wii...or a $300 360 will keep him JUST as happy as a $600 PS3 :)  Yeah, when I worked for FAO Schwartz the parents were a LOT different than my time with TRU and Target...but a lot more parents are the TRU / Target shopping variety...case in point, FAO closed here AGES ago :)  I've seen LOTS of parents ask about the PS3, hear the price and only sometimes be civil with their sentiments that translate to F-That! :) 
     
  19. smkspy

    smkspy is one nice fucking kitty

    Joined:
    Jul 1, 2004
    Posts:
    20,311
    Trophy Points:
    322
    Likes:
    +79
    I almost caved and bought a PS3 yesterday. I went to get one, picked two games, found the damn $100 cable for my HD, an extra controller, the system, and headed for check out. To my surprise CC had just got in a single 360 elite! Needless to say, I ditched the $900+ worth of PS3 items and bought the awesome 360 and Gears of War for $600.

    :::goes to hug my new 360::::

    I think the only thing that could really save the PS3 besides a price drop is for them to remove the Blu-Ray.
     
  20. Cruellock

    Cruellock Disney Villain

    Joined:
    Feb 14, 2004
    Posts:
    4,857
    Trophy Points:
    186
    Likes:
    +0
    FF13 has been delayed, and with only 1 version of FF13 staying exclusive to the PS3, Sony really can't depend on FF13 anymore to sell their consoles.

    All it would take for me to buy one is some good games. Heck, I only bought an Xbox for Fable.
     

Share This Page