PS3 Drops Price, Adds SKU
In the first blow of E3 positioning, the boys at Sony decided to do the strangest price drop in history I believe. Yes, the 60 gig PlayStation 3 console is now $499 but they turned around and introduced a new SKU for $599 that included an 80 gig hard drive along with a copy of Motorstorm. The new 80 gig model will be available in August for North America while the $499 price goes into effect immediately for the 60 gig model. What’s going on with companies and these different versions of their consoles?
And why only an 80 gig hard drive when the Xbox 360 Elite carries a 120 gig hard drive? If people were hoping for an Xbox 360 price adjustment, I think all hope is gone at least for now and especially during E3 this week. The one thing I hope is done sooner rather than later is the dropping of the Xbox 360 Core console. The Pro and Elite should be the only options for an Xbox 360.
I know some of you will argue value but was there really a need to keep a $599 SKU? I don’t think so. Nintendo has to be enjoying all of this. What say you? Are you more tempted to buy a PlayStation 3 now?
July 9th, 2007 at 11:00 am
i agree that they should drop the Core Console, to be honest the best aspect on the xbox is its online feature (xbl). the playstion 3 is still too expensive for me, especially with the lack of good games. maybe once the price drops and a few more good games (more than just MGS) are announced, ill consider buying one =)
July 9th, 2007 at 11:02 am
the games is what always convinces me at least. i wouldn’t buy a system for one game the way some do.
but yeah..drop the Core. a total bomb for E3 would be moving the Pro to $299 and the Elite to $399. that would be one hell of a chess move.
July 9th, 2007 at 11:23 am
dropping the core would be smart, but what would happen if the price for it were dropped to $199? Having to choose between the core and the wii would be thrown into the mix.
July 9th, 2007 at 11:28 am
hmmm never thought about that p. interesting shot at the Wii with a price point like that.
July 9th, 2007 at 12:04 pm
That is interesting news, but why would anyone buy a 80GB PS3 for $599.99 when they could get the 60GB PS3 for $499.99
I wonder if Microsoft will react to this price drop. They could drop the price of the PRO from $399.99 to $339.99 & drop the ELITE from $479.99 to $429,99
We will have to wait and see what happens.
July 9th, 2007 at 12:15 pm
I wish Sony wasn’t such a joke, it’d make Microsoft be even better to gamers if they had any competition.
July 9th, 2007 at 12:30 pm
well the added SKU takes away the significance i think of the price drop. yeah they lowered the price, but then kept a $599 SKU. why is having a $599 SKU so important?
July 9th, 2007 at 1:13 pm
I don’t understand Sony…this price drop will be murder for them. They are already losing hand over fist and this price drop will murder them from a bottom line perspective.
Don’t get me wrong…they need to be more competitive since they were $200 more expensive but as Deac stated, why drop the price and then turn around and have a $599 sku. My hunch is they think folks will purchase the $599 model based on perceived value and the game and the extra 20 gig really doesn’t cost them all that much to throw in.
I think this illustrates they are grasping for straws right now.
July 9th, 2007 at 1:51 pm
the bigger question is whether or not Microsoft will continue to play safe or will they go for the throat and drop their price? maybe this $199 Core option mentioned already…a $349 Pro offering and a $399 Elite?
if you want to end this so called war…a $399 Elite, $349 Pro and $199 Core will do it. throw in the HD-DVD player for a limited time or some chippy game and it’s game over.
sometimes you have to lose in order to gain but they should be well used to it considering the losses in that dept. you lose now but gain TREMENDOUSLY afterwards. software sales would increase by the butt load after the userbase triples with a move like this.
July 9th, 2007 at 1:56 pm
I don’t think MS will “react” to Sony. They have their own set strategy based on being profitable. If they announce a price drop of any kind you can bet that it has been planned for quite some time and will not be a gut reaction to Sony.
I agree, that a across the board price drop by MS would be game over for Sony but that could also put MS at risk of being profitable according to their time table. I think they still compare very favorably to Sony right now based on price coupled with game selection. Maybe when Sony starts to get some AAA games out there that would be a good time to then drop the price of your console.
July 9th, 2007 at 2:22 pm
Right now, the Xbox 360 has good leverage to make the same drops that have been brought up in this thread — and it would be a swift kick in the ass for Sony.
At the same time, though, Aero’s point of profitability shouldn’t be overlooked. I think the 360 will drop in price now, so they can slip in the Falcon hardware unnoticed. Let’s not forget that the 360 has been at it’s current price since 2005. They can’t sit idly by while a system that dropped less than a year ago comes within their safe range.
The price will drop, and it will drop soon. They don’t have a choice, as people who see the PlayStation brand as gaming could get very interested with this price drop.
All in all, I think both companies dropping prices help everyone in the equation. Gamers get hardware cheaper and companies get their hardware to a larger audience.
Everyone benefits
.
July 9th, 2007 at 2:44 pm
We can see a price drop later this year on the units and after they start using the cooler 65-nanometer processors. Plus improved cooler 360’s being produced as a result.
http://txpaladin.spaces.live.com/blog/cns!6CD9E1BE453FFFA8!174.entry
I don’t think Microsoft will do this based on Sony, they’ll do it when they want to and start saving money on production. Sony’s doing this to increase sales, but they also will start using the 65 nanometer chips too.
July 9th, 2007 at 3:10 pm
I’ll never turn to the Darkside! No matter how many times they drop the price >:(
July 9th, 2007 at 3:27 pm
The 60gb version of the PS3 is now the exact same price as the Elite in Canada. If Sony plans on releasing some good content, you’d better hope Microsoft can secure the licensing for Video Marketplace in Canada. Otherwise, this could affect sales.
I’ll make my final decision after the E3 release schedule. There’s no telling what games are exclusive as of now.
July 9th, 2007 at 5:37 pm
Why drop the Core Console???
You can still play online witha core and a 56 MB MU….I know that is what I did in the past when I was GOLD.
“to be honest the best aspect on the xbox is its online feature (xbl). the playstion 3 is still too expensive for me, especially with the lack of good.”
July 9th, 2007 at 6:19 pm
Microsoft could slit Sony’s throat right now in this console war, but I don’t see them doing it.
July 10th, 2007 at 7:02 am
Until some the anticipated signature games are released for the PS3 (Gran Turismo, MGS, Devil May Cry 4, etc) it ain’t happening for me. I’m having too much fun with my Crack (Down) & Gears.
Especially without a concrete online gaming experience (like XBL), it’s gonna take more than waving an extra Bengie in my face to pony up.
Sorry Sony, but P-Diddy was wrong – It’s not always about the Benjamins.
July 10th, 2007 at 7:50 am
Well, based on some interent conjecture by some analysts out there MS will be announcing a price drop for all models during their conference tonight. $50 drop for the core and premium and the Elite will be pushed to $399.99 the original price of the premium. If true, this is the death nail for Sony in my mind especially considering they have no content to make their console look attractive right now.