SCEE: PS3 to Cost $750

[Itsme]

SCEE: PS3 to Cost $750

Submitted by Benjamin Nied
Last update: 04/06/2006

While everyone waited for Sony to announce the price of the Playstation 3 at this year's GDC, no such word came during the event. However, in an interview with European radio station Europe 1, Sony Computer Entertainment Europe's President, George Fornay, has revealed a price range for the new console, and it isn't going to be cheap. Apparently earlier estimates of the console costing between $400-$500 US were way off; the new price range is reportedly between 500 and 600 EUR, or about $600-$750 US. If this price range turns out to be accurate, the Playstation 3 would be the most expensive console on the market by far, costing almost double that of the Xbox 360 Premium and over double that of the rumored cost of the Nintendo Revolution.

Fornay himself admitted that this was a fairly high price, but was quick to remind listeners that the PS3 also doubles as a high-definition DVD player and computer, so when consumers contemplate buying a PS3, they should keep in mind that its all-in-one capabilities are really a bargain. It's also possible that the PS3 will still cost $500 in the U.S., and cost more in the rest of the world, since most people would be unable to afford such an expensive console. Even with the $500 tag, the console will still be $200 more than Revolution and $100 more than Xbox 360 Premium, meaning that Sony can't afford to have the new console cost much more than that or else it stands to lose a large percentage of its consumer base.

In my opinion, $500 should be the price ceiling for the PS3. If Sony goes any higher than that, most people won't be able to buy the new console and will either flock to a competitor or simply not buy a console at all. With Nintendo debuting the Revolution as a console affordable to all, and with the Xbox 360 already established, Sony needs to make sure that the PS3's price range doesn't eliminate it before it has a chance to shine. Given the raw horsepower and capabilities that the PS3 has to offer, I would hate to see it eliminated from the next-generation race just because it's been priced too high. Stay tuned to E3 to see what Sony has to say regarding this news, as the final PS3 details should be revealed at that time.

http://www.dlmag.com/1182/scee-ps3-to-cost-750.html

[InfiniteNothing]

SCEE: PS3 to Cost $750

Submitted by Benjamin Nied
Last update: 04/06/2006

While everyone waited for Sony to announce the price of the Playstation 3 at this year's GDC, no such word came during the event. However, in an interview with European radio station Europe 1, Sony Computer Entertainment Europe's President, George Fornay, has revealed a price range for the new console, and it isn't going to be cheap. Apparently earlier estimates of the console costing between $400-$500 US were way off; the new price range is reportedly between 500 and 600 EUR, or about $600-$750 US. If this price range turns out to be accurate, the Playstation 3 would be the most expensive console on the market by far, costing almost double that of the Xbox 360 Premium and over double that of the rumored cost of the Nintendo Revolution.

Fornay himself admitted that this was a fairly high price, but was quick to remind listeners that the PS3 also doubles as a high-definition DVD player and computer, so when consumers contemplate buying a PS3, they should keep in mind that its all-in-one capabilities are really a bargain. It's also possible that the PS3 will still cost $500 in the U.S., and cost more in the rest of the world, since most people would be unable to afford such an expensive console. Even with the $500 tag, the console will still be $200 more than Revolution and $100 more than Xbox 360 Premium, meaning that Sony can't afford to have the new console cost much more than that or else it stands to lose a large percentage of its consumer base.

In my opinion, $500 should be the price ceiling for the PS3. If Sony goes any higher than that, most people won't be able to buy the new console and will either flock to a competitor or simply not buy a console at all. With Nintendo debuting the Revolution as a console affordable to all, and with the Xbox 360 already established, Sony needs to make sure that the PS3's price range doesn't eliminate it before it has a chance to shine. Given the raw horsepower and capabilities that the PS3 has to offer, I would hate to see it eliminated from the next-generation race just because it's been priced too high. Stay tuned to E3 to see what Sony has to say regarding this news, as the final PS3 details should be revealed at that time.

http://www.dlmag.com/1182/scee-ps3-to-cost-750.html

Pricing that must be an SOB because they can't piss of the rest of the bluray consortium by underpricing the PS3.

[Kudos]

I'd pay 750 for it, if it ran Windows, played PC games like BF2, Oblivion etc, and was an HD-DVD player.

without the computer aspect of it, I'd never pay that much

[Cubsfan]

I'd pay 750 for it, if it ran Windows, played PC games like BF2, Oblivion etc, and was an HD-DVD player.

without the computer aspect of it, I'd never pay that much
I think even with the PC aspect, they're starting to limit their sales. There's a lot of families that can scrape together $400 for Christmas, but not $750. $750 is a LOT of money.

[Bires]

$500 by November 07.

[DarkFury]

I'll just stick to my computer games.... sheesh!!! :2far:

[VTGreg]

Does anyone remeber some of the insane prices on ebay for XBox 360 just after it's release? PS3 will have many more features than the 360 did and while $750 seems like a lot of money, it isn't that expensive when you consider all you are getting.

[Itsme]

Seems to me that the current trend in electronics items is that people will buy at almost any price. Yes, it will out of reach for some folks, but maybe only a small percentage.

[DarkFury]

Does anyone remeber some of the insane prices on ebay for XBox 360 just after it's release? PS3 will have many more features than the 360 did and while $750 seems like a lot of money, it isn't that expensive when you consider all you are getting.
That logic really only works for a "true hardcore gamer" (or at least a kid with parents that have alot of disposable income.)

For the most part, I know of ALOT of parents who aren't gonna shell out $750 for something they perceive as an "electronic toy". At least they can justify that a PC can do more than just play games... I highly doubt the average consumer looks at these beyond that after they see that price tag.

But of course, the crazed masses with cash will soon be joined with this wonderous machinery. :heh: I hope it's really worth it to them. :shrug:

[Devhux]

My goodness -- something's going to rival the launch price of the infamous Panasonic 3DO Interactive Player.

[wileycraig]

I used the same all-in-one rationale to get a PS2 thinking that I could throw out my DVD player, only to find that the PS2 was the most finicky DVD player on the market, I have had more success with $39 Target players than with the PS2. I guess I will have to find a different reasoning tactic to convince my wife that we need the PS3.

[shocky123]

*coughs*
fu*k, 750 bucks...... some of us have to pay for college..

But think of the profit I'll make off each one when I ebay them for 100% profit, this'll pay for college :)

~Kyle

[ProMinx]

The problem with a high market entry point isn't that Sony won't make enough money off of volume, but rather that there won't be broad enough of a customer base, so if PS3 doesn't sell a ton, video game producers won't put in the extra effort to convert their games to PS3's ridiculously complex code. The most important part of any console launch is establishing the console's consumers as a viable investment for game developers. Too expensive unit price => too limited of a market for games => too few games produced => no reason to buy the PS3 to begin with => dead console. Say hello to the Jaguar and the 3D0 on the way to console hell, PS3.

[Bires]

Ya. Sony has a long reputation of failed business ventures. :rolleyes:


For the fanbois:

Sony SuckS!!!11!!! XBOX 36) RULEZZS!~

[eSDee]

I'd pay 750 for it, if it ran Windows, played PC games like BF2, Oblivion etc, and was an HD-DVD player.

without the computer aspect of it, I'd never pay that much

I'd pay 750 if it ran Macintosh OS.

[Thesifer]

I wouldn't even take a PS3 for free.. Well maybe for free so I could ebay it. But that's insane pricing. I don't care what it does. Unless it gives blowj--err I mean.. yeah.

[Agent Plissken]

Lets see, where should I start... oh yeah, the PS3 will NOT cost $750. period.
It may cost that to make, but the MSRP....... no.

[Devhux]

I'm honestly guessing it will cost $499 US. I can't see anything much higher for the simple reason that few people would buy it (despite being a Blu Ray player.

[gwilks98]

Ya. Sony has a long reputation of failed business ventures. :rolleyes:


It's funny you should mention that. I was reading this hypothetical a few days ago:

http://www.bonafidereviews.com/article.php?id=148



Like many of you, it’s hard for me to remember a time when the word "Playstation" was not synonymous with gaming. Sony has held the all mighty hardware throne for an astounding eleven years at the time of writing this. The same can be said for Nintendo’s 9 year reign with the NES and SNES from 1985 - 1994, and even more so with Atari’s 10 year reign ending with the collapse of the entire industry in 1981-1984. With that in mind, one must ask, is Sony placing to much faith in the Playstation moniker at this point or do they truly understand the business on such a level that the cat and mouse game they are playing with the PS3 and any information surrounding will ultimately pay off in the bolstering amount needed to save the ailing hardware giant.

In a recent interview through a European media outlet, Mr. Fornay Vice president of SCEE (Sony computer entertainment of Europe) made some rather astounding remarks regarding the PS3 price-point and the views being placed upon it. He hastily hinted that a Blu-ray player in the neighborhood of $599.99 would be an absolute steal, but as a stand alone gaming machine would be quite overpriced, as proven in the past. Sony was quick to issue a rebuttal on his behalf stating these were his personal views and not official commenting on the price of the PS3. Damage control at its finest. But keep in mind the massive cover up after Sony’s own CEO Howard Stringer hinted at the PS3's launch delay to Vanity Fair. Sony PR was quick to label it as "pure speculation" coming from the company’s own CEO, which was later to be proven completely accurate when the delay was made official mid-march of 2006. Sony isn’t one for honesty as a company entity however their head honcho's loose lips seem to deliver the only truth passing Sony’s door these days.

If the PS3 is delivered at $599.99 what does this mean for Sony? Historically gaming machines would have never sold for anything north of $299.99 (that was until the Xbox360 moved the line to 399.99 in winter of 2005). Just look at the complete failure of the 1990's powerhouse, the 3DO, at the relatively respectable price of $399.99 (roughly $449.99 inflation adjusted). With the PS3 now touting the largest price tag for any console in the history of gaming and higher then most mid-low end PC's at this point, does this spell disaster for the ailing hardware giant? Sony hasn’t posted net gains in the past three years until 2005 when they posted a depressing $580 million dollar profit after posting loss's in the billions for the last three fiscal years.

The true death blow at this point would really point to the HDCP compliance required for Blu-ray movie playback (as well as HD-DVD), making the PS3 no more then a video game system with a capacity of 50 gig games for anyone who purchased a HDTV in the past 6 years. So were does the PS3's $600.00 price tag come into play for us non-HDCP HDTV owners? The answer is nowhere.

PS3 production pricing at this point has been laid out to be anywhere from $850 - $956 per unit, meaning there will be a loss on each machine of approx $250 - $350 per console sold. If one million consoles sell in the first day of availability Sony will have wiped their entire fiscal gain for all of 2005 in under 24 hours.

In retrospect, Microsoft lost $150 per Xbox (Version 1) console, ending in a 4 billion dollar loss in the lifespan of Xbox (Version 1). With pockets deeper then the Atlantic Ocean, even Microsoft had to re-consider their standings in the console market, thus leading to an abruptly ended Xbox life span. So how will Sony bounce back for a variable $2 billion dollar hole in 2006? Answer is they won't at the price point they have “announced”.

Sony’s official statement in the face of the $599.99 price tag was "The console will not cost $750 dollars", meaning in short, I believe the damage control was laid down not in the face of the price tag being over priced, but more like being under priced. Expect the PS3 to weigh in above the $650 mark for Sony to have a substantial chance at a 2006 fiscal year that doesn’t sink the proverbial ship.

But what does all this mean for gamers as a whole? Basically with an astounding high price, and seemingly useless features for those of us with standard definition televisions or high definition televisions purchased in the past 6 years, we will be purchasing a half-complete machine for a fully complete hi-def included player price. This is Sony’s main hurdle, finding a way around the HDCP protocol. A blu-ray player with a price tag of $100.00 is still worthless to over 350 million Americans which is, I might add, Sony’s main demographic for hardware sales (North America).

Ailing stock prices, poor movie sales and a failing UMD (Sony PSP media) market, might add up to a low-cost buyout in Sony’s future. I personally see this happening regardless of the Blu-ray market by 2014. I for one can just see the looks on Sony’s main competitors faces at this time, all the gleaming in the world coming from One Microsoft way ( the road both Nintendo HQ and MS HQ reside on) as this could turn out to be the largest upset in consumer electronics history.

All this added up, you have to ask yourself. Will the next Playstation you purchase post-PS3 run a Microsoft operating system and have backwards compatibility for PS1 PS2 PS3 Xbox and Xbox360? Putting your rabid love for Sony aside, this doesn’t seem as far fetched as it once did, when the Sony name wasn’t covered in enough red tape to fill the Grand Canyon.

Blu-ray, Cell and a self-destructive obsession with one upping Microsoft, might have possibly put this king to rest... for good.


to me, it's gonna be a war of two greater evils. May the american consumer lose...

[zero2dash]

This was proven inaccurate a few days ago. :)
One of the higher ups (either Kutaragi or Phil Harrison) came out and said the guy was misquoted and misunderstood and the console wouldn't cost that much.
http://www.gamespot.com/news/6147148.html

[UPDATE 4/6]: A Sony representative eventually returned GameSpot's request for comment, saying, "This interview was misinterpreted and at this time, there has not been any official announcement from Sony Computer Entertainment on pricing for the PlayStation 3 worldwide."



I still say they'll probably surprise everyone and sell them for $299 even though they'll lose a lot of money per console sold. (Which they will recoup from software sales and online subscriptions.) Think about it - they hype the price and scare everyone into thinking it'll be uber-expensive, and then drop a bomb and surprise everyone and come out cheaper than everyone thought. :idea:

[Grubbie]

This was proven inaccurate a few days ago. :)
One of the higher ups (either Kutaragi or Phil Harrison) came out and said the guy was misquoted and misunderstood and the console wouldn't cost that much.
http://www.gamespot.com/news/6147148.html


I still say they'll probably surprise everyone and sell them for $299 even though they'll lose a lot of money per console sold. (Which they will recoup from software sales and online subscriptions.) Think about it - they hype the price and scare everyone into thinking it'll be uber-expensive, and then drop a bomb and surprise everyone and come out cheaper than everyone thought. :idea:


If they lose 300$ a console that is a HUGE HUGE HUGE hole to makeup with software sales. If they sell 6million consoles they lose almost 2 BILLION.

Now we have no way of knowing how much it will cost to produce a PS3. I don't think they will be able to go lower the $500 with the blu-ray drive. How pissed would their partners be when they are selling 750$ stand a long blu-ray players and sony sells a ps3 which has a blu-ray player for under $500.

[gwilks98]

If they lose 300$ a console that is a HUGE HUGE HUGE hole to makeup with software sales. If they sell 6million consoles they lose almost 2 BILLION.


That's why the games will cost $115 a pop. :D

[zero2dash]

If they lose 300$ a console that is a HUGE HUGE HUGE hole to makeup with software sales. If they sell 6million consoles they lose almost 2 BILLION.

Now we have no way of knowing how much it will cost to produce a PS3. I don't think they will be able to go lower the $500 with the blu-ray drive. How pissed would their partners be when they are selling 750$ stand a long blu-ray players and sony sells a ps3 which has a blu-ray player for under $500.

They won't sell consoles for $500. Hell other than the initial launch crowd "hardcore", they wouldn't sell (IMO) for $400. The problem with the consoles coming out this year (sans the Revolution, which I'll omit because it'll be cheap)...err, well that leaves the 360+Ps3 - is that they have to make everyone think "I must own one of these". Sorry, there's too many games coming out for Ps2 still this year + next year (FFXII this winter + GoW2 in Q1 2007...hello? :)) that people who already own a console now still have plenty of good games to play. The only thing new consoles really offer is hi def gaming and there's still a fair (I say fair but in reality its HIGH) ratio of people who DON'T own the necessary equipment to take advantage of hi def gaming. The gimmicks of the new Sony/Microsoft consoles are 1) hi def gaming and 2) online play at the core. Considering most people don't own HDTV (still) and a lot of people still aren't on broadband...sorry, there's no real reason to buy a new console (IMO). Nintendo is the only exception because theirs will be cheap enough that people would say "eh, new console for $200? I'm sold".

I'm not saying "never" but I seriously doubt you're going to see a Ps3 for $500...Sony has to price theirs to be competitive with the 360 and being that I wouldn't doubt that Premium 360s go for $300 this fall/winter, I really don't see Ps3 selling for more than $350.

Yes, they'll take a huge loss in manufacturing. But so did Microsoft and look where they are. Sony's got enough money off of their other divisions just like Microsoft does with their PC entity. :hmm: You might also be forgetting that at this point in time, over 100 million households have at least 1 Ps2 system...I guarantee you that Sony will most likely have most of those people back for a Ps3 venture...even if it takes some time (and a few price drops). If they sell 100 million consoles and the software-to-console ratio is 5:1 (meaning they sell 5 games to every 1 console sold - and I'm sure in reality the # is higher than this) - they're still making mad money despite losing that initial hardware manufacturing cost. That would mean (for instance at this 'low' figure) they've sold 500 million pieces of software for their system...at $50 a pop? Sure, discount for development, packaging, & advertising - but they're STILL making tons of money.

They'll make their money back man...just like Microsoft did. Microsoft lost a couple (at least but I forget the exact $$$) hundred off every Xbox system and they made millions upon millions on Live subscriptions. They still have Live subscribers + new subscribers...and Sony's (reportedly) switching to a pay service as well meaning they'll recoup money that way as well.

[Bires]

We should start a pool for release cost and release date.

I'll put my $5 in for November 17 at 399.00.

[Thesifer]

Sony's got enough money off of their other divisions just like Microsoft does with their PC entity.


In this are you speaking of their Failing, money problems, other divisions? Or is there a division I don't know about that is making money hand over fist? Oh wait, none of their products are really selling right now :).

[InfiniteNothing]

The only chance sony has is to sell them all on ebay. LOL.

[zero2dash]

In this are you speaking of their Failing, money problems, other divisions? Or is there a division I don't know about that is making money hand over fist? Oh wait, none of their products are really selling right now :).

Sony's still selling Ps2 systems like hotcakes.
PSP will sell better once the price drops.

Also take into account their other products...electronics especially.
Most Sony electronics sell decently based off brand name/repeat customers. (TVs, DVD players, stereo components, etc.) The name Sony carries a moderate price markup, so they still make profit over manufacturing cost with their electronics (especially stuff like their ES lineup for picky home theater shoppers).

Unless - they're not selling. :confused:
I haven't heard anything recently about Sony 'struggling'. :shrug:

[Thesifer]

Unless - they're not selling. :confused:
I haven't heard anything recently about Sony 'struggling'. :shrug:


Here you go..


The delay of the new console, PlayStation 3, is an apparent setback to Sony's turnaround efforts at a time the struggling electronics giant badly needs a new hit. The formerly highflying electronics maker has fallen on hard times as competition from China has eroded earnings on bread-and-butter consumer electronic products like televisions.

From an Earlier Article about their delay.

[zero2dash]

Wow...I had no idea. :faint:
I stand corrected; thanks for the quote Thesifer.
I guess people got sick of paying a higher price for 'the Sony name'. :)

[Thesifer]

No problem :) That's what I'm here for, cause it's obviously not because people like my Opinions on "news" issues .. (since the word politi..err.. is off limits) :P

[ProMinx]

I was about to jump on the "sony's other profitable ventures" quote, but it looks like that has already been taken care of (actually...it was mentioned in the Sony sell-out to microsoft article posted above, if my memory serves me correctly). Anyway...Sony cannot afford to take a price hit on the PS3. Playstation is the only profitable venture that Sony has (PSP is still losing tons of money), and in the last three years...Sony has only managed to post black numbers one of those years, and that 750 mil profit from last year doesn't compare to the 4 bil lost the previous 2 years.

As previously mentioned, Sony cannot sell the PS3 cheap or their partners that manufacture blu-ray players will jump ship and join the HD-DVD cadre, which means that Blu-Ray won't catch on...so Sony will lose so much money on Blu-Ray that the company will fold. However, if Sony sells the PS3 high enough to keep the Blu-Ray partners happy...the game developers will jump ship...and Sony's only major profit-developing will fail...so again Sony will fold. Basically...Sony's time in the sun has come to an end.

[Thesifer]

Ya know, They should have to follow the same rules as a small business.. If you don't post numbers in the Black for a certain number of consecutive years (3+) then you are classified as a Hobby :) ..

But anyhow,

I'm putting my money on sony becoming the next Sega. Except bigger because they are into so many areas. Or atleast scaling back and staying where they are strong, JAPAN.

[shocky123]

I think it is funny how everyone is just assuming that Sony is oblivious to all of these financial 'concerns'

I mean ****, Sony has been around longer than Microsoft...
(since 1946)

Game-Consoles only account for 9.4% of their expected income, and more importantly 65% of their sales income is from their electronics(TV's, electronics, semiconductors, etc, NOT inclusive of any gaming related products), which has over the last 4 years only decreased in strength by 0.4% .. <1%.
So I do not predict that Sony is gonna go out of business from this, nor anytime soon for that matter.. Yes, they may get into some substantial debt, but they arent claiming that the console is going to account for, nor is there really any way for there to be a 50% change in their total annual income such that the PS3 becomes their primary revenue.
Also notable, Sony's investment in the film industry account for roughly the same amount as their console investments on a yearly basis over the past 3 or so years.

Oh yeah, and just in case anyone didnt know (like me, until I read this..) Sony holds many of the patents for the up and coming HD-anything (BlueRay,HDDVD,etc) technologies, including much of the technology related to the cameras that record/broadcast HD content.
So HD-anything still pays off for Sony.

I honestly dont see Sony dropping anywhere, yes they'll have record losses initially, however, history has shown us that the total revenue's generated by consoles and etc. make the products more than profitable. Period.

~Kyle

(Sega is still around, and has been since 1940)

[zero2dash]

Sony is the #1 game console company right now and they can't afford to lose the #1 spot in an industry as big as gaming. They will do whatever it takes to hold onto that spot; they're not going to hand it over to Microsoft (and its 1 yr 'new console' advantage). If they had to, they'd give Ps3 systems away with a game purchase - do you honestly think they wouldn't?

Again - how many times does it have to be said...
Game companies only make money on games, not consoles.
Unless you play your cards right like Nintendo and release your consoles cheap, with weaker/cheaper components than everyone else; Nintendo is the only company (to my knowledge) that has ever been lucky enough to have made any money off consoles.

As for companies disowning the BluRay market - it's possible, but quite a few film studios have actually agreed to release movies on both formats, so it's not likely for one to be abandoned. You also have to consider that Sony is bullheaded when it comes to their "proprietary formats" and they don't give up on them nowadays (they did on Betamax, sure, but that was after the lawsuit). Memory Sticks (regular, pro, and duo - pick a flavor) are still around despite being proprietary, correct? UMD hasn't taken off as well as Sony would have hoped but it's still *there*. (Might not be for long - I read a report yesterday about Wal-Mart severely cutting back on UMD movies since the sales aren't there; most PSP owners are smart enough to dump their own movies/files to MS and transfer them to the unit.)

IMHO - Sony will hang itself before it gives up on anything.