Latest PS3 pricing FUD debunked by Sony

[GTP]

Yesterday, at all the bigger A/V forums, you had insiders and FUDsters posting that a French review with a Sony rep...had the PS3 pegged at 599-699 Euro pricing.
Several posters who could also read French said the actual likely price given in the interview if anything...was 500.00 Euro....but the FUDsters tried there best to convince everyone the skiy was falling on Ps3 pricing in spite of this.

Here are two links debunking the Fud.
http://gamesindustry.biz/content_page.php?aid=15937
http://www.reghardware.co.uk/2006/04...3_price_range/

I also believe Euro pricing estimates include 19% vat in France....no?

[Sony1]

No they do not include VAT. Their are different tax rates in the Union anyway. Just take my word for it the PS3 is not going to cost 500.$ or less at the start in November, Sony is not going to undercut Samsung, LG, Panasonic, and few others buy offering a player at 600.$ to 1000.$ less than them, so get over the 500.$ bid, it's not going to happen in November

[zombie]

Originally Posted by Sony1

No they do not include VAT. Their are different tax rates in the Union anyway. Just take my word for it the PS3 is not going to cost 500.$ or less at the start in November, Sony is not going to undercut Samsung, LG, Panasonic, and few others buy offering a player at 600.$ to 1000.$ less than them, so get over the 500.$ bid, it's not going to happen in November

You don't think Samsung, Panasonic, Pioneer, and LG will lower the prices in time for PS3's launch? Why not? While I don't claim to know what PS3 will cost I do know that it's a competitive market out there, even among fellow BD supporters.

[Sony1]

Because it's just to soon for those companies to lower the price of their players only after 2 to 4 months after Blue-ray hits the streets. Another thing is Sony can only take so much of a loss on the PS3. The comapany cares about it's stock, and losing 200.$ to 400.$ per unit is not an acceptable price to pay. The Cell Processor alone is going to cost 299.$ just to make, I wish I could find that article on production costs for both PS3 and Xbox 360, it had a complete breakdown of all the costs involved in producing each, I can definetly see them lowering the price after the holidays, and into spring but the november price is going to be high.

[Patrick]

You dont know how much Cell will cost Sony for Ps3 or the Blu-ray drive. Dont say It wont cost Below or at $500. You dont know, No one but Sony does. You know what happenes when you assume dont you? Enough said. Just wait for Sony. Oh and Sony did say PS3 will be the poor mans Blu-ray player.

[Sony1]

Okay well keep dreaming then the PS3 will cost below 500$ in November. The production costs are easy for any anaylist to get a hold of. Try and do some research on it and then make your predictions.

[Knight-Errant]

Originally Posted by Sony1

Okay well keep dreaming then the PS3 will cost below 500$ in November. The production costs are easy for any anaylist to get a hold of. Try and do some research on it and then make your predictions.

It is standard practice for games firms to make a loss on their hardware and make up for it with software sales.

[zombie]

Originally Posted by Knight-Errant

It is standard practice for games firms to take a loss on their hardware and make up for it with software sales.

Agreed and this is exactly what Sony1 has a hard time admitting.

Sony1:

Again, for someone so seemingly anti-BD and anti-cheap PS3, why do you use the Sony nickname?

[Knight-Errant]

Originally Posted by nyg

Agreed and this is exactly what Sony1 has a hard time admitting.

Sony1:

Again, for someone so seemingly anti-BD and anti-cheap PS3, why do you use the Sony nickname?

I was wondering that myself.

Maybe Toshiba1 would be a more fitting moniker?

[Sony1]

I am not anti-Bd at all, I wish the PS3 would cost less than 500$ I am just simply be realistic given the current delays and production costs status. I find it hard to believe that the Blue-ray association is going to go along with a BD player at 600$ less than what will be the cost on late September

[zombie]

Well eventually Sony will give an actual price for their PS3. Until then we will continue to speculate amongst ourselves. I suspect though, that if they want it to be the huge success they need, they're going to have to price it for $499 or less. With everything they're promising this does indeed sound unlikely but Sony is kidding themselves if they think people are going to pay much more than that for what most consider to be just a new video game console.

[marzetta7]

Originally Posted by Sony1

Because it's just to soon for those companies to lower the price of their players only after 2 to 4 months after Blue-ray hits the streets. Another thing is Sony can only take so much of a loss on the PS3. The comapany cares about it's stock, and losing 200.$ to 400.$ per unit is not an acceptable price to pay. The Cell Processor alone is going to cost 299.$ just to make, I wish I could find that article on production costs for both PS3 and Xbox 360, it had a complete breakdown of all the costs involved in producing each, I can definetly see them lowering the price after the holidays, and into spring but the november price is going to be high.

I've read many of the articles boasting that Sony is going down in flames based on their cost component analyses. What these analyses miss the boat on is that Sony will be purchasing their components in mass quantities. Economies of scale alone will bring the cost of the PS3 down below $500 in my opinion, as they most definitely will be getting a very substantial discounted rate on components, so I wouldn't worry too much that the PS3 will be above $499. In addition, as most have noted, any loss encountered on each unit will be made up per the selling of games and other add-on components. So, to summarize, much like Apple gets hugely discounted rates on flash memory for their iPods, Sony too, will be getting discounts on Cell processors, mainboards, Blu-ray drives, etc.

Moreover, I too, don't expect "those other companies" that comprise the majority of the consumer electronic and information technology markets to lower the prices of their Blu-ray players too soon, possibly in early 2007. I think they all understand that the HD player market is still an early adoption market and the PS3 really is in a different market--the PS3 just happens to play Blu-ray movies in addition to being the GAMING CONSOLE MARKET leader. To add upon that, I think too that the majority of the consumer electronic and information technology companies realize that the plan for the PS3 and its soon to be reality is that this console is going to be used to establish the Blu-ray format in the mainstream with millions of units sold by 2007 worldwide. So, again I don't see Sony selling their console at more than $499 with what is at stake. In the meantime, the "other companies" can skim the cream from the crop of those interested in purchasing only a Blu-ray capable player and not a gaming machine--there is indeed a good market for that. In addition, the $500 to $800 machines I don't think can be seen as to much of a threat as 10,000 units aren't going to be penetrating any type of market any time soon and even at that price for ONLY a PLAYER is still to high to warrant high rate adoption. It is that whole economies of scale argument again--remember Blu-ray has a crap load of players coming out from a slew of different companies whereas Toshibas has, well Toshiba.

Also, don't forget the factor of content that HD DVD is severly lacking in as compared to Blu-ray. What is a consumer going to do, hmm, should I buy the player that can play all the Blu-ray movies that are covering all the walls of the store or should I buy the player that will only play this small selection of movies (HD DVD). Hmmm?

[Patrick]

SONY1, I didnt give any PS3 predictions. You did. I simply said give Sony time to give us the price before throwing in your 2 cents. Oh and no one but Sony really knows how much Cell, and Blu-ray will cost SONY to put in each PS3. You stating what you think could inadvertantly make someone think you know what your talking about. So just keep it quiet till Sony says so and then give your opinion based on facts instead of rumors. Oh and change your name to something that fits, like Rumor1 or MSowned. lol

[thunderhawk]

Oh c'mon, let's keep it kind and polite here ok?

Back on-topic, I don't really care how many losses they are going to make... Fact is, Xbox360 is already a year in business here (PS2 was also a year ahead of Xbox) and PS3 better gets some fair pricing here. Let's face it, $500 is too much for a device most people just claim as a gaming console.