PS3 production cost could be cut by $100

[McBain]

Production cost of PS3 could be cut by US $100

http://www.digitimes.com/systems/a20070507PD200.html

Also includes cost breakdown comparision to Elite.

[phranctoast]

Sony needs to do something soon about the ps3 price. The games are starting to roll in and now the only deterant is the price....

[Gamekid]

Nice to know that a price cut is in the works. Could the price cut come by the end of this year? So let's say, that you lower the cost by $100.00. The 60 would cost $500.00, the 20 no longer exists. There has been some rumors going around that an 80 is in the works, but sony has yet to confirm a newer machine. I would think that you would want to get the 60 down in price and then put out newer models of the ps3 as time goes on, however it seems to me that sony shouldn't make any newer models of the ps3 because you can just as easily take the 60 and put an 80GB hard drive inside. Sony wants to get rid of the ps1 and ps2 chipsets as chipsets seemed better then software emulation, but if getting rid of the chipsets is the start for a price cut then so be it.

[Blackraven]

It would be most exciting if the price drop came within this year (most preferrably during the Xmas season/year-end holiday season).

[Gamekid]

When should the price drop come? Since the best games are still to come, this summer and this fall will bring us blockbuster games. I would think that the holiday rush would be eaiser since we don't have the ps3 shortage that we did last year. The ps3 has done very well since launch and with the home program coming out in the fall, microsoft had better have something better to top sony's home program. Their goal is to reduce the amount of parts inside the machine for a price cut to go into effect. There has been talk of an 80 GB in the works, however sony hasn't confirmed this at all. There has also been talk of a newer model of the ps3 to come out at some point so I don't know whether or not, it's better to have a price cut and then make a newer model or vice versa. How many ps3's are going to be sold by the end of this year? I have to say that sony is losing a lot of money on their machines so they need to have a price cut soon. If a price cut goes into effect, it'll be $100.00 less as another article provided by a link on here talked about a possible price cut that may come sooner then we all think. Anyway, if a price cut goes into effect, microsoft will probably have a price cut as well so that they are in line with sony.

[corwin]

Hi,

Idont realy care when the price drop come, as i have already bought the PS3

but I hope for you guys that it would come, so the player base would be bigger and there would be more and more games for it.

so, come on Sony!

[shido]

I think ya'll are being too optimistic about a price drop coming soon for the PS3. Even after cutting production costs by $100, it still costs over $700 to make a single console. The console would have to be turning a profit before they decide to cut the price, cause they are taking a major hit as it is selling it for $600.

[jbuttler007]

If the price drops I want a rebate, and yes I still have the receipt.

[phranctoast]

I think ya'll are being too optimistic about a price drop coming soon for the PS3. Even after cutting production costs by $100, it still costs over $700 to make a single console. The console would have to be turning a profit before they decide to cut the price, cause they are taking a major hit as it is selling it for $600.

I think they need to cut the price soon before they lose to uch ground to the MS and Nintendo. Most consoles are sold at a loss anyway with the game sales bringing in the revenue. Sony would be smart to drop the price as quickly as possible, make the game money, and blu ray disc money to compensate the console loss.

[Jaren613]

Originally Posted by shido

I think ya'll are being too optimistic about a price drop coming soon for the PS3. Even after cutting production costs by $100, it still costs over $700 to make a single console. The console would have to be turning a profit before they decide to cut the price, cause they are taking a major hit as it is selling it for $600.

In normal circumstances you'd be right, but Sony might have to continue selling it at a loss to gain back their ground. It could be bad business to keep it at $600 just to sell it at less of a loss, especally if they are in it for the long haul. Selling the system for less of a loss now might only be good in the short term, their longterm goal would be getting a bigger userbase to support the kind of software sales they need to make a profit. The best way to do that right now is with a price cut.

[Gamekid]

It's up to sony on when to have a price cut, not up to us.

[msupe]

my thinking if sony drops the price to 500 game over! nobody in their right mind would choose a 360 over a ps3. think about it a elite is $475 with no hd dvd drive. if somebodies got an hd tv they want hd movies therefore .......
sony wins
bluray wins

[Gamekid]

Answer this question, Will sony introduce a new model of the ps3? because I have heard rumors that there is an 80 in the works, but sony has yet to confirm yet. Still sony could put out multiple ps3's in a matter of months by having newer models come out, the same way that apple kept redoing the ipod. If sony does introduce a new ps3 with an 80 GB hard drive, they would have to include something on the newer model that you don't get with the 60 otherwise people aren't going to buy the newer model. I think that it's best that sony just keep one model of the ps3 and give us the option to upgrade the hard drive if we want to. If the price were dropped to $500.00, the 60 would replace the 20 as the 20 was priced at $500.00. $100.00 more then the xbox 360. How much does the elite model cost?

[dakota81]

First, that article does not do a cost comparison to the 360 elite, despite the title, notice how it says 20gb hard drive.

Second, Sony's rumored 80gb drive probably would be due to the availability of 60gb 2.5" drives shrinking? Or 80gb drives available for cheaper.

Third, I highly doubt a price drop is in the works, Sony's still loosing a lot of money on each sale. If *anything* maybe a $50 price drop.

Comparatively, the price now is pretty darn good for someone who wants both a playstation, a blu-ray player, and better dvd upscaling like I did. (I know currently it doesn't upscale, but the hdmi does allow my tv to use its much better internal scaler).

[BOSS10L]

Originally Posted by dakota81

Second, Sony's rumored 80gb drive probably would be due to the availability of 60gb 2.5" drives shrinking? Or 80gb drives available for cheaper.

I'd say that bigger drives getting cheaper. I can remember a few years back when my 4GB HDD bit the dust and I RMA'd it, Maxtor sent me a 10GB one instead because it was actually cheaper for them to do that.

[Gamekid]

Originally Posted by dakota81

First, that article does not do a cost comparison to the 360 elite, despite the title, notice how it says 20gb hard drive.

Second, Sony's rumored 80gb drive probably would be due to the availability of 60gb 2.5" drives shrinking? Or 80gb drives available for cheaper.

Third, I highly doubt a price drop is in the works, Sony's still loosing a lot of money on each sale. If *anything* maybe a $50 price drop.

Comparatively, the price now is pretty darn good for someone who wants both a playstation, a blu-ray player, and better dvd upscaling like I did. (I know currently it doesn't upscale, but the hdmi does allow my tv to use its much better internal scaler).

What I'm asking is why put out a playstation 3 with an 80 alongside the 60? I wonder if we'll see a price drop by the end of the year? Many ps3 games are coming out. Ones like burnout 5, LAIR, Rainbow six, GIA IV, and others are coming out this summer and this fall. Assuming that they all do well, would a price cut for the ps3 help out here? LAIR is a ps3 only game and I'm wondering if a price cut would convince people to buy a ps3?

[Jaren613]

Originally Posted by dakota81

Comparatively, the price now is pretty darn good for someone who wants both a playstation, a blu-ray player, and better dvd upscaling like I did. (I know currently it doesn't upscale, but the hdmi does allow my tv to use its much better internal scaler).

I agree 100%, but that doesn't matter. The question is do enough people agree with that price point to make the PS3 a potential big seller like the PS2 was. I think it should be, but that doesn't mean it is.

A price drop wouldn't hurt, especically if Sony can keep this rate up with reducing production costs, they could be making money on the system by next fall even at a $500 price point. The huge plus of course being that more systems would sell, meaning a lot more software would sell.

Software has always been the moneymaker in this industry anyway. I'm not too in touch with Sony's finances to know whether or not they can continue losing $200+ per console, but I bet they could probably handle it if it would turn this game around in their favor next year.

[WriteSimply]

A price cut is not a wise decision. If the production cost can be reduced, that's money SAVED.

By Fall, Home and other great games will be released. The bigger HDD PS3 may also be released. This will generate new customers who will buy because not only that the PS3 can play BD movies (via an upcoming PS3-BD campaign) but also that new games are being released. The games will generate income instead of reducing cost.

If the savings (via production cost) is passed on to the consumer, SCE doesn't get anything. The Fall games may or may not be big hits so cutting the price of the console is not going to put more money in the bank. Cutting cost and earning revenue is a better way of generating profits.

A price cut in 2008 would be more wise.


fuad

[Gamekid]

Originally Posted by WriteSimply

A price cut is not a wise decision. If the production cost can be reduced, that's money SAVED.

By Fall, Home and other great games will be released. The bigger HDD PS3 may also be released. This will generate new customers who will buy because not only that the PS3 can play BD movies (via an upcoming PS3-BD campaign) but also that new games are being released. The games will generate income instead of reducing cost.

If the savings (via production cost) is passed on to the consumer, SCE doesn't get anything. The Fall games may or may not be big hits so cutting the price of the console is not going to put more money in the bank. Cutting cost and earning revenue is a better way of generating profits.

A price cut in 2008 would be more wise.

fuad

I agree with you on what you're saying. What we need are ps3 exclusive games. Some people don't thinkt that $600 is worth it. You can use the ps3 as a blu-ray player that you would otherwise have to spend extra on, however some people may only use the ps3 for gaming. In this case, games that are only found on the ps3 would make the ps3 more appealing and more popular for those that don't have one yet. The only way that you can play LAIR is to get a ps3. We also have home coming up in the fall. Another way to make the ps3 more appealing to us would be to have the psp link up the ps3 in various ways. This is one area that microsoft can't beat since they don't have a handheld yet for the 360.