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Sony: No Immediate PS3 Price Cut Due To Economic Downturn

Price is always a concern when talking about the PlayStation 3, and even though analysts are predicting a price cut some time this year, Sony admits that they will probably always have the most expensive console.

In a recent Eurogamer interview, SCEE's David Reeves said that although there's the possibility of a price drop at some point in the near future, they have no plans for an immediate cut "due to the current economic downturn." Eurogamer than asked if Reeves thought the PS3 would always be the priciest system out there, and he replied:

"I think it will, yes. I'm not saying there are going to be any price cuts at all in the short term or the medium term. I'm not saying we don't need to do it - we are expensive. It is possible that as the cost [of manufacturing] comes down, we will be able to do it.

But we're protecting ourselves with a very hard shell to get through the next one or two years of an economic situation. If you're experienced, you know you have to go into that mode - it's like being an armadillo. You have to be hard, and then you will come out when the sun comes out."

This is very similar to the stance many companies are taking these days, and it does make a great deal of sense. Furthermore, most analysts believe that when Sony does drop the price of the PS3, Microsoft will quickly follow suit and slash another $50 off the Xbox 360 to remain cheaper. But Reeves, along with other industry insiders, believes they can push through the upcoming months and enjoy another big surge later in 2009. Reeves finished-

"If, as an industry, we can get through the next six to seven months, we're going to find a massive uplift in September and October. I'm very optimistic about it."

1/30/2009 Ben Dutka

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Comments (55 posts)

GuernicaReborn
Friday, January 30, 2009 @ 12:52:05 PM
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Thats too bad, this seems to be the biggest hurdle for the PS3 this gen. Dell Home currently has the 80GB for $339 until the end of Saturday but its just a sale. Sony should cut the price to 80GB $299 and 160GB $399, thats usually the sweet spot, the $300 dollar mark.

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Morals
Friday, January 30, 2009 @ 1:02:38 PM
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well i agree sony needs to start making money of the ps3 first then go in for the kill and take this gen. . . hopfully in 2010

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Vivi_Gamer
Friday, January 30, 2009 @ 1:19:58 PM
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meh you can get a ps3 for around £250 now, which concidering all the features it has is more than worth it.

Last edited by Vivi_Gamer on 1/30/2009 1:20:14 PM

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ps92117
Friday, January 30, 2009 @ 1:22:23 PM
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strategic price cut is what I hope for, I never had a doubt of an 09 price cut.

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Dingodial
Friday, January 30, 2009 @ 1:27:18 PM
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Yesterday I heard that Sony's profits have went down 95% since 2006. I would rather have them keep PS3 prices the same and offer a low-end model with a 20gb. HDD and no wi-fi for $300 (instead of having them cut the current price and as a result file bankruptcy and go out of business)

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PS3_Wizard
Friday, January 30, 2009 @ 1:44:20 PM

Its kind of hard for Sony to have fledgling profits if its never made a profit from hardware sales yet.

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www
Friday, January 30, 2009 @ 2:58:17 PM

Dingodial that's a good idea but unlike MS,SONY want the best for all ps3 owners,they don't want some consumers missin' on anythin' like wifi etc. Everybody should have necessary general components.

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Dingodial
Saturday, January 31, 2009 @ 6:32:12 PM

@ www
I agree that Sony is more dedicated to their customers than M$. Wi-fi is great but is it really necessary? If sony came out with a PS3 with no wi-fi then they could just sell a wi-fi antenna separately for those who want wi-fi.

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whooka
Friday, January 30, 2009 @ 1:42:17 PM
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It does indeed make sense, esp for the PS3, as even with a price cut, which would have to be modest despite any economic conditions (i.e. they aren't gonna lop $200 or anything off the price), the current economy is so bad that I don't think people would run out in droves to buy PS3's regardless of what they did with the price in the immediate future. Alot of people are going to struggle with just paying their electric bills in 2009, let alone purchasing something to run off that precious electricity, hehe.

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whooka
Friday, January 30, 2009 @ 1:44:18 PM
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Sorry, forgot to mention I'm down with dingodial in the sense that Sony would prob do good making a stripped down version of the PS3 available to people that is considerably cheaper then the fully loaded one, though not knowing much about their costs I don't know how much a smaller hd, no wifi, etc, would allow them to cut their costs buy, it may not be that much as the hd, wifi, etc, aren't the expensive components i'd guess and they'd obv have to leave the bluray player in there soooo...

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Dingodial
Saturday, January 31, 2009 @ 6:35:32 PM

I have seen the wi-fi adapter that microsoft sells for the 360 and at most retail stores it is sold for about $100. Heck, Sony could just take out the wi-fi and keep the 80gb. HDD.

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ec0li
Friday, January 30, 2009 @ 2:13:02 PM
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We'll see a $50 to $100 dollar pricecut around October this year.

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Arvis
Friday, January 30, 2009 @ 2:41:16 PM
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You know who I haven't seen post here in a while? Deleted User. Where has he been?

Anyways, I've repeated my stance on this issue many times: Price Is Everything. In fact, it is the ONLY thing keeping people from buying a PS3 anymore. They have the hardware, software, and features to make it all the ultimate package. But if people can't afford it, they won't buy it. It's a shame that Sony is unable to lower the price at this point, because at $299 they'd be FLYING off the shelves.

-Arvis

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www
Friday, January 30, 2009 @ 2:54:36 PM

Cut Sony some slack,there already operatin' at a loss,u have the cheapest blu-ray player,wat more?

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KevinCairo
Friday, January 30, 2009 @ 3:04:12 PM

Yeah, but the increase in hardware sales at a loss of profit doesn't justify it. Even the increase in software sales wouldn't help if they are losing too much money per a system. Wasn't it like 4-6 months ago that they were still losing something around $30-$50 per a system?
I think a good solution to help a little bit would be to package a couple games with each system. Throwing in two or three high selling games that have already made a good net profit off of couldn't hurt, considering that they cost probably $5 to physically manufacture at most, and it wouldn't compete with the sales of them since they wouldn't be too recent. For example, if they made an 80 gb bundle with Ratchet & Clank, Resistance, and maybe even GT5P, that would probably boost sales because those are great games that most people really should own anyway and having them included saves about $130 (best buy has them for $60, $30, and $40 respectively).
The reality of it is that if they're barely beginning to make a profit of the PS3, they'd better hang on to that even if it's not pushing the most units because 8-10 million x $30 (profit) is a sh*t load more than 12 million x $0 or a $20-$30 loss.

Last edited by KevinCairo on 1/30/2009 3:07:08 PM

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WorldEndsWithMe
Friday, January 30, 2009 @ 2:48:49 PM
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Xmas time for sure. I just got back from poopmart (Walmart) and was hoping to get a reduced price on Uncharted: no such luck though.

Last edited by WorldEndsWithMe on 1/30/2009 2:50:47 PM

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tlpn99
Friday, January 30, 2009 @ 3:50:02 PM

World I have seen Unchartered here for £14.99 pre owned, keep at it you will get one unless your after brand new :)

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WorldEndsWithMe
Friday, January 30, 2009 @ 5:09:35 PM

Well, pre-owned doesn't bother me but I love the game and I was hoping it'd be 30 by now. I might break down and go into Gamestop. That pic of me is a couple years old and these days I look more like a badass so I don't think any Xbots there will try to sell me their brokedown crap. (It's happened before)

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www
Friday, January 30, 2009 @ 2:52:05 PM
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U get what u pay for,heck tell rolls royce to the cut the price on the phantom.
Am sorry if u can't cap it, stay in ur broke lane.
U're gettin' exclusives like K2,Heavy Rain,Uncharted2,reliability,free online,wat else? and you still complainin' about price.

Am surprised ppl in the land of opportunity still complain about ps3's price!

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Dingodial
Saturday, January 31, 2009 @ 6:26:06 PM

I know that this is off-topic but why is the Phantom over 300 thousand dollars? I know it has a V-12 and the looks of a really old Lincoln Towncar (LOL) but it should be more like an $80,000-$100,000 car.

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crapreviews
Friday, January 30, 2009 @ 2:54:10 PM
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So.. you want to keep the price high when you know americans don't have much money becuase of the economy. Yet, you still expect these same americans to go out a buy a high priced machine even though they dont got money.

i guess it's a bad move either way. lower the price and sony hurts their income. dont lower the price and less people buy, which hurts sonys income.

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www
Friday, January 30, 2009 @ 3:05:48 PM

yeaaaaa,oookay....then let's just count ourselves lucky n play our ps3s n stop worryin' about those who don't got it!

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KevinCairo
Friday, January 30, 2009 @ 3:06:55 PM

Who's gonna lose more money, one person paying $50-$100 more for a system that's a great value or Sony losing millions, maybe even billions, more on a price cut they cannot afford?

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NoMoreWar
Friday, January 30, 2009 @ 7:08:08 PM

exactly why this kind of economic situation is so dangerous. its just one big catch-22

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Robochic
Friday, January 30, 2009 @ 2:59:58 PM
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I have no clue why people are still complaining about the price, i've given up to figure it out. I think the price is perfect look what you get out of the system any cheaper and we loose certain features which would suck and turn people off, sony can't lower the price and have the same features they would loose lots of income on that, and no one has made a profit on their consoles, M$ is in debt with the xbox and xbox360 always has been.

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www
Friday, January 30, 2009 @ 3:07:30 PM

tell'em again!

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tlpn99
Friday, January 30, 2009 @ 3:52:31 PM

Robochick my cousin got a new one at Christmas and he is missing the card reader and some other bits so already there is bits missing off the machine not forgetting the most important one backwards compatibility.

He said to me I'll be able to play my PS2 games. He was gutted once I informed him he wouldn't be able to.

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Joe_III
Friday, January 30, 2009 @ 6:47:58 PM

Sony is the only company losing money on consoles...Xbox has been profitable for a year now...

http://news.teamxbox.com/xbox/15546/Microsoft-Reports-Record-Second-Quarter-Results-Says-Xbox-Division-Will-Turn-an-Annual-Profit-for-the-First-Time/

Last edited by Joe_III on 1/30/2009 6:54:45 PM

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Buckeyestar
Saturday, January 31, 2009 @ 7:51:30 AM

That was before their firesale/pricecut.

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Arvis
Friday, January 30, 2009 @ 3:10:58 PM
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For the record, I'm not complaining about the price. I have an original 60gb with BC that I paid $600 for. I'm just saying that a lower price would get the machine in a lot more homes.

-Arvis

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isaya85
Friday, January 30, 2009 @ 3:53:51 PM
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I'm sure they'll do fine the don't need to be thinking about a price cut we have 10 years of PS3 to enjoy they got plenty of time to make a profit we just need to support them


PSN ID Biggest_GMoney

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WorldEndsWithMe
Friday, January 30, 2009 @ 5:13:02 PM

Hey, I see you post your PSN, you want into the posse I'm puttin together for R2 and KZ2 from here?

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MirrorSoul
Friday, January 30, 2009 @ 8:54:59 PM

I want in, i have been looking for good people to play with

PSN: MirrorSoul

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WorldEndsWithMe
Saturday, January 31, 2009 @ 12:21:22 AM

In like Manson in Jail motherf*cker

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Gone
Friday, January 30, 2009 @ 4:16:26 PM
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A price drop would be nice, but a price drop on games would be better. $59.99 for a game is crazy. Still waiting for the PS2 to drop to $99.

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rell
Friday, January 30, 2009 @ 4:23:11 PM
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sony do your thing I have no complains whats so ever.

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Joe_III
Friday, January 30, 2009 @ 4:29:15 PM
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...It's not even worth cussing anymore. Bad move. Blah blah blah value, blah blah blah quality. Yes PS3 is a somewhat superior machine WHEN devs decide to maximize it. If they can't afford a PS3, they're not buying a PS3. But if people can afford a 360, they're buying a 360.

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Deleted User
Friday, January 30, 2009 @ 4:40:52 PM
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Well. So much for my idea of what they needed.

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bamf
Friday, January 30, 2009 @ 4:52:17 PM
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We've already had a price drop in the UK due to the reduction of VAT. People are still earning the same amount of money if not more. We're holding onto our money in fear of job losses, so no-one going out and spending.

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Scarecrow
Friday, January 30, 2009 @ 4:55:07 PM
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*blames Bush and tax cuts*

Damn those tax cuts!!!! >:E

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WorldEndsWithMe
Friday, January 30, 2009 @ 5:16:01 PM
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I'm no business exec but I'd guess analysts can't predict whether or not the price cut would sell enough systems to make up the losses they would take in hardware by doing so. They aren't as interested in winning the install base war as much as we are, just making money in the Neo Great Depression that, yes the torturing war criminal George Bush gave to not only the US but after a fashion the whole world.

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Joe_III
Friday, January 30, 2009 @ 6:21:10 PM
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they should be interested in winning the install base because that would exponentially increase profit on software. It costs the same (ish) to dev a game that 100K people buy as it does a game that 3m buy.
and that 2.9m is a LOT of free money...

And You can act like this is all Bush's fault, but this has categorically been linked to Clinton's administration.

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Buckeyestar
Saturday, January 31, 2009 @ 7:52:45 AM

By Bush supporters.

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BikerSaint
Saturday, January 31, 2009 @ 9:38:55 PM

@Joe3
Totally agree with you on this one!!!!


Last edited by BikerSaint on 1/31/2009 9:40:04 PM

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NoMoreWar
Friday, January 30, 2009 @ 7:04:23 PM
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if you guys want to argue about why the economy is sucking so badly, it goes WAY beyond the who the presidents have been. banks practiced stupid policies and a lot of people made stupid personal decisions.

as for Sony, i guarantee you they have people dedicated to projecting profits. they have to focus on the long-run while keeping an eye on the short. they have projections for console profits that include those made from future software and accessory sales. with their market experience, they have a much better knowledge for figuring out what the most profitable price is than any of us on here.

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Spartan 117
Friday, January 30, 2009 @ 7:30:52 PM
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Well PS3 might as well kiss 2009 goodbye.

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MadPowerBomber
Friday, January 30, 2009 @ 9:03:11 PM

The PS3 isn't going anywhere. It's just getting a hefty dosage of negative press from people who have no idea what they're talking about. Lots of game-sites and game-mags and the like just go running off at the mouth about how terrible the system is doing and all that, but... it's not doing terrible at all. ESPECIALLY considering the price. People need to stop pretending that they know what a big corporation needs to do as though they've got the credentials to be advising a company on anything. Especially gaming fans and journalists. Not to mention that one of the biggest detrimental factors in PS3 sales as far as my experience goes is GameStop. The place that's supposed to be selling these things have copious amounts of uneducated employees that spout off nothing more than rumors, speculation, half-truths and out and out lies about the PS3 (especially in comparison to the 360) to get consumers to sway away from spending that much money on a console. I *still* hear the ridiculous "The Playstation 3 has no games," argument from employees at GameStop when a consumer comes in questioning about which console is better.

The days of being chicken little on the internet need to end.

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dusink
Friday, January 30, 2009 @ 7:31:33 PM
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i feel the price is perfect. they are selling a lot of machines and it is going to continue. software really does sell machines and when the games come, i dont care who you are, if you are a gamer your puttin out that extra hundred for the PS3. It is the best deal in the gaming indusry for what you get. I wish I could of bought it for 400 but i couldnt wait and bought it at 500. So go Sony you got my support

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dusink
Friday, January 30, 2009 @ 7:33:22 PM
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@spartan 117


look forward to you eating those words at the end of the year

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Spartan 117
Friday, January 30, 2009 @ 8:12:49 PM

Well in case sony hasn't noticed we are in a recession. So unless they want to succeed the situation with thePS3 is only going to get worse.

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SerichA
Friday, January 30, 2009 @ 7:59:52 PM
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I'm not surprised that people have been lying about the price drop since around the start of 2009. Too much of a rumor, and Sony can't afford it anyway without taking an extreme loss. And PS3 sales probably will gain a lot of momentum with KZ2 and the following games later, it's nowhere near done for.

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food86
Friday, January 30, 2009 @ 8:57:39 PM
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maybe you guys didn't listen before but, a day ago I posted that sam's club was selling 40 gb ps3 for 300.00 dollars. I talked with the manager about the ps3 and he said all sam's across the country are selling the 40gbs at 300.00 good deal since I bought one in case my refurb gives out.

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BikerSaint
Saturday, January 31, 2009 @ 9:43:33 PM

Hey Food86,
It that 40BG at Sams club one of the B/C models, or not???

Last edited by BikerSaint on 1/31/2009 9:46:50 PM

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karneli lll
Friday, January 30, 2009 @ 9:31:31 PM
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Sony needs a price cut because they aren't marketing right,has anyone seen the killzone superbowl ad? goodbye killzone 2

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phade2blaq
Tuesday, February 10, 2009 @ 6:23:24 PM
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Sony continues to make blunders regarding the PS3 pricing structure. I would think by now they would know price is one of the jey issue keeping PS3 sales at bay and since they won't acknowledge this and give potential customers what they want, they'll continue to pull up the rear in console sales.

Sony came out of the gate at launch with a horrible marketing plan for the PS3 and they continue to do so.

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