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Electronic Arts wants PS3/360 to be cheaper photo

Electronic Arts seems to have a habit of criticizing console prices, and has once again voiced concern that the Xbox 360 and PlayStation 3 are a bit too costly. Speaking at the Goldman Sachs Technology and Internet Conference, chief financial officer Eric Brown said that prices were not in line with the last generation. 

"I think pricing has not come down as much as we would have expected at this point in the cycle compared to the last," he explained. "We do have a long way to go with respect to pricing. Last cycle, approximately 48 percent of PlayStation 2 units were sold at a price point of $149 or less. Clearly at $299 we're nowhere near that price point."

Of course, this generation is quite different from the last, and that's something Brown also discussed: "It's a possibility that we don't see a sharp and distinct console transition like we've seen in the past. Today, we have two of the three consoles operating at full, high-definition and are running games at 60 frames a second. If you have a multi-billion capital investment to develop the next generation hardware, the question I would ask is, 'If you were to produce that, what would you display it on?' There's really nothing in terms of broadly available consumer viewing technology other than 1080p televisions.

"You could upgrade in theory, but you wouldn't get the obvious graphic benefit that we saw that drove the transitions in the prior cycle."

Do you think prices are fine at the moment, or should another round of cuts be made?

EA: Console Price Cuts Have A Long Way To Go [IGN]








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54 comments | showing # 1 to 50
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RenegadePanda's Avatar - Comment posted on 02/24/2010 11:34
RenegadePanda
Sony just started making money, if they drop the price again they'll be back where they started.

And please God, don't try and make Microsoft cut production costs. We all know what that leads to.

And just ignore the Wii.
Gene Eric's Avatar - Comment posted on 02/24/2010 11:37
Gene Eric
I'm good with cuts. The 360 maybe, but i'm not sure Sony would want to drop the price just when they just minimized the losses from the PS3 production
Shadowiii's Avatar - Comment posted on 02/24/2010 11:39
Shadowiii
360 should drop the HDDless version and put the Elite at around $200. Maybe release a super-elite for the current elite's price with two controllers, a 250 GB hdd, and a game.
Sony's price point is ok, but I'd kill to see a $250 PS3 Slim. That would be a downright steal. Then again, the system is selling well at $300, so I guess they can't complain.
Ragewaar's Avatar - Comment posted on 02/24/2010 11:39
Ragewaar
Yea cut the price of consoles, makes perfect sense. You know, just completely ignore the fact that games prices are increasing year on year and its close to the point where a console costs the same as 3 new games.
flynn110's Avatar - Comment posted on 02/24/2010 11:45
flynn110
riiiiigght. because EA hasn't been raping everyone on peripheral game sales like rock band, etc.
kainsec's Avatar - Comment posted on 02/24/2010 11:48
kainsec
Console prices don't bother me. Its a one time charge per company you support every 5 or so years. I don't make that much disposable income but I can afford to save $10 a check for the next 5 years so I can afford the next generation without a sweat. Now if you want to talk cutting software prices which is a frequent and recurring cost which seems to pose to climb if Activision has their way we can talk. Or if you want PC hardware companies to cut their parts price we can talk.
Corak's Avatar - Comment posted on 02/24/2010 11:51
Corak
Ragewaar has a point, but also keep in mind Sony and MS make more money off software sales than they do the sale of a console. Its the same model that computer printers follow, they basically give away the printer with a computer purchase or charge a lot less for one, but they gouge you on the ink for it. I think the prices for the consoles right now, for what you get, is pretty good. I would also like to see the slim PS3 for $249, that would be a steal, but that won't happen until production costs for it come down which I don't see happening anytime soon. Both have good software lineups this year, you could argue that Sony's might be a little better, so that's what I see them focusing on this year more than the pricing for a console.
wardprod's Avatar - Comment posted on 02/24/2010 11:53
wardprod
If someone tells me that these consoles will last for another ~5 years or so (hmmm there was a post in this topic here right???) then i don't mind the current price of them. Now i can only assumee that the price wich is a "must have" category could only become reality when these are on deathrow. At least for my wallet :(

Correct me if i'm wrong.
Ragewaar's Avatar - Comment posted on 02/24/2010 11:56
Ragewaar
Correction to my other post, 2 new games.

Game.co.uk price of Xbox 360 Arcade = £129.99
Modern Warfare 2 RRP = £54.99

Yes yes i picked the highest RRP game on the market, but mark my words thats the way Bobby Kotick and his merry band of wallet rapists are going with their pricing structure nowadays.
runtheplacered's Avatar - Comment posted on 02/24/2010 11:57
runtheplacered
"Its a one time charge per company you support every 5 or so years."

These companies only source of income is not in the sales of their consoles.. in fact, for the longest time Sony lost money on selling you a playstation 3. Income also comes in from distribution of games on their platforms,(in Sony's case) charging the publishers the right to put their games on PSN, Microsoft obviously makes money on Xbox Live, and that's really only scratching the surface. Apparently they're getting more money out of you then you thought, which I assume is exactly what they would want you to think.

Anyway, console prices aren't overly terrible to a "gamer", but I can see it all the time in people that are more "casual" still being scared off by a $300 console.
Threaded's Avatar - Comment posted on 02/24/2010 12:00
Threaded
360 is over priced, PS3 is... well I'd like it lower but it's fine with what it offers at that price.
Pinhead's Avatar - Comment posted on 02/24/2010 12:03
Pinhead
I think everyone would like the consoles to be cheaper, except Sony and Microsoft that is.
mix's Avatar - Comment posted on 02/24/2010 12:06
mix
The DS and PSP are like $200 for tossing an extra $100 on top of that it's not a lot more to pay for a console.

I paid $360 for a FUCKING graphics card 2 years ago, boo hoo soo much money. Dropping the price crates more of an impulse purchase or nets a sale from the people on the fence but the prices where they are now are quite reasonable when you compare them to other electronics.
KwikPwn's Avatar - Comment posted on 02/24/2010 12:07
KwikPwn
I would expect to see a price cut from MS first. As of last month the 360 is still outselling the PS3 in the U.S. , I think 360 will get a cut in the fall, with a Natal pack-in bundle selling at the PS3s pricepoint.
karooo's Avatar - Comment posted on 02/24/2010 12:07
karooo
PS3 is fine @ 300. But maybe a $50 price cut is coming this year who knows.

and 360 will def have a price cut. $250 natal bundle will be sweet.
pokota's Avatar - Comment posted on 02/24/2010 12:09
pokota
As others have said, I'd be even happier with a drop in software prices. That would move consoles AND games. Eric Brown's rant sounded entirely self-serving. Basically, "what can Microsoft and Sony do to make EA more money".
Sexualchocolate's Avatar - Comment posted on 02/24/2010 12:13
Sexualchocolate
I don't care, i've got all the consoles i want right now.

My ps3 that is.

But games are too expensive. Way too expensive.
EdgyDude's Avatar - Comment posted on 02/24/2010 12:14
EdgyDude
Dear EA:

WTF? Wii and X360 are already 200 bucks, a PS3 is 50$ below half the price at launch, are your sales failing that bad? maybe if YOU dropped your own prices you'd do better, sincerely

A Gamer with a working brain.
KwikPwn's Avatar - Comment posted on 02/24/2010 12:17
KwikPwn
Yeah, EA tries to charge you $60 bucks a year for minor changes and roster updates. The price of EA sports titles should be cut in half.
Wedge's Avatar - Comment posted on 02/24/2010 12:19
Wedge
I didn't read the article... but I love that crab.
Fearzone's Avatar - Comment posted on 02/24/2010 12:28
Fearzone
EA would like it if they game away consoles for free. Console makers are free to price consoles where it suits them. EA can choose whether to make games from them, or not.
Volomon's Avatar - Comment posted on 02/24/2010 12:28
Volomon
Wait how long did it take for the PS2 to hit $149 though?
whormongr's Avatar - Comment posted on 02/24/2010 12:29
whormongr
both consoles should be dropped to $5, then I would buy them for all of my friends. It is about volume right?
eddacosta's Avatar - Comment posted on 02/24/2010 12:34
eddacosta
Why don't THEY cut the prices of games, they would sell much more if they sell games for 30 or 40 bucks, and then get the rest with quality DLC.
CaptNink's Avatar - Comment posted on 02/24/2010 12:36
CaptNink
@SexualChocolate

You need more consoles. You're missing out!
Suigyoken's Avatar - Comment posted on 02/24/2010 12:38
Suigyoken
Haha no, granted you're buying a lot of technology with either of the consoles, but I have no trouble having people coming into my store and buying 360's and PS3's... now if only I can get a good stock of PS3's that'll be awesome. I think the price points are a sweet spot for consumers right now, and if anything, it's the games that need to get a price adjustment.
Dv8thwonder's Avatar - Comment posted on 02/24/2010 12:49
Dv8thwonder
You can't spell weak without EA.
LoftyTheMetroid's Avatar - Comment posted on 02/24/2010 12:52
LoftyTheMetroid
I still don't have an HD console, mostly because of the prices. So I guess this applies to me.

I'd get a 360 for sure if I could get a non-crappy SKU (i.e. an Elite) at $150-$200. (Hey, I refused to purchase a PS2 until I could get it for $150, that's just my limit...)

I wouldn't mind paying more for a PS3, mostly because it's also a Blu-Ray player, but $250 is probably the absolute ceiling for me, $200 would be a sweet spot.

You gotta take into account that the HD consoles are constantly touting their FPS games, all of which control, play, and run better on my PC. (Why would I want to resort to dual-analogue for my FPS?!) I'm looking for more of the games that can only really be enjoyed on their respective consoles, like Uncharted or The Last Guardian.
Vanor's Avatar - Comment posted on 02/24/2010 13:02
Vanor
The cost for both the 360 and PS3 are pretty low right now, yet the price cuts they received only seemed to give a temporary boost to their sales. Now they're gonna slump again, despite their recent price cuts. Hardware only sells based off of the software.

Activision, and now EA. Maybe this is projectionism on their part, but perhaps they need to release more compelling software on the hardware to make it sell. Maybe instead of whining to Sony and Microsoft about lowering the price, they instead make some games that will drive up the demand for the hardware.

Let's look at the Wii. Right now, the demand of the Wii has seen a resurrgence as of late. And it will continue to go up for the next few months, at least. It wasn't because of the price cut as much as it was the release of the proper software for the console. That being NSMB Wii. The game has driven sales for the Wii up in Japan (where the console market is stagnant). But boohoo to EA and Craptivision. They can't strongarm Nintendo because they make their own games in-house. Sony and Microsoft have to contract out third parties to do that. They can't hold their software hostage because Nintendo doesn't need them, and they have no shortage of smaller third parties making games for their consoles.

The next few years are gonna be interesting indeed to see unfold.
xYeTi MaNNx's Avatar - Comment posted on 02/24/2010 13:03
xYeTi MaNNx
Corak

"Both have good software lineups this year, you could argue that Sony's might be a little better."

What? Mass Effect 2, Crackdown 2, Splinter Cell Conviction, Halo Reach and Alan Wake aren't doing it for ya? Don't mean to start a flame war, but Microsoft has one hell of a lineup this year.

Anyways Im spending about $1400 on PC parts when there are only 2 PC games I want for this entire year. I'm satisfied with current console prices.
ZamaR's Avatar - Comment posted on 02/24/2010 13:05
ZamaR
This is coming from a publisher that has driven the price of games back up to $70 dollars right?
Kalmah's Avatar - Comment posted on 02/24/2010 13:07
Kalmah
Game prices are a bigger issue to me than the console itself. The way I see it (possibly different for other views) is that we pay once (usually) for consoles and it stops there, but each time we want to play a 6-8 hour game it's roughly another $60+ from our wallets. Now, with so many great games out, it's hard and VERY tempting not to go broke.
Schmo0zle's Avatar - Comment posted on 02/24/2010 13:21
Schmo0zle
Dear EA:

I want you to stop selling shitty games for $60.
Conor 's Avatar - Comment posted on 02/24/2010 13:28
Conor
I think EA needs to worry more about making good games more often than the price of consoles.
ran24's Avatar - Comment posted on 02/24/2010 13:39
ran24
Of course prices are "not in line" with last generation's, dipshit. The current generation has wi-fi, multimedia playback, ridiculous graphics, usb/other media ports, and online stores. That costs moneys.
matrixdude171's Avatar - Comment posted on 02/24/2010 13:46
matrixdude171
These prices aren't going to be cut anytime soon. Sony's trying to break even, and microsoft is just being a money whore. Even if the 360 was $149, xbox live is $50 and wireless adapter is another $100, not to mention you have to use their hard drive expansions. Sony is already loosing money, and if they went to a $149 price range their looses would be too high.
Astalano's Avatar - Comment posted on 02/24/2010 13:49
Astalano
Cut GAME PRICES, not console prices. Games at 40 euros on console and 25 on PC would allow people to buy more games, so you have a healthier industry where more people make profit. What good is it to start at 60 euros when the price will just fall to 35-40 the next month? Just look at Darksiders at 51 euros on Play.com for the first month, now it's way down to 35.
beegzz's Avatar - Comment posted on 02/24/2010 13:50
beegzz
@Wedge LOL It's appropriate given the crabby mood everyone gets in when it comes to money and prices.
Ragnar Dragonfyre's Avatar - Comment posted on 02/24/2010 14:08
Ragnar Dragonfyre
I really like this new trend of game publishers admonishing consoles for being overpriced, yet it's okay to charge $69.99 CDN for an 8 hour game with no multiplayer or replay value.

Stop overcharging for short games and maybe then I'll start buying your games brand new. Then game producers will get my money rather than EB. I'd rather wait for a used copy to price drop below $30-25, which reflects to true value of a game I can beat in one or two sittings.
y3kbug's Avatar - Comment posted on 02/24/2010 14:53
y3kbug
FYI, PS3 still loses money on every console sold. I think they lose about $18 on every PS3 Slim sold.
manasteel88's Avatar - Comment posted on 02/24/2010 15:34
manasteel88
I'm sure they do...less money spent on a console means more money spent on games.
Punch McChainsaw's Avatar - Comment posted on 02/24/2010 15:39
Punch McChainsaw
Ummm.... Has EA even made a game that runs at native 1080p?
EdgyDude's Avatar - Comment posted on 02/24/2010 15:46
EdgyDude
@LoftyTheMetroid: I hear ya man, to me a console is a pricey thing, specially because oout of the US, prices bloat disgustingly by taxes and speculation, that's why i'm specially careful with my money spending on gaming and go for the extreme to buy as cheap as a i can without sacrificing quality in games.
Narynan's Avatar - Comment posted on 02/24/2010 15:59
Narynan
I'd like EA to not charge me 60 dollars for a new game on these platforms.
VenusRBecky's Avatar - Comment posted on 02/24/2010 17:08
VenusRBecky
Gee, if they feel that way, why doesn't Goldman Sachs end their conference by announcing that they are going to take the Federal Tax Dollars funneled to them by the AIG bailout and buy everyone in America a 40" HDTV and a PS3 or Xbox360.
Josef Hargreaves's Avatar - Comment posted on 02/24/2010 17:37
Josef Hargreaves
Whilst I'd love to pay £120 for an Elite, I do think the prices are fine. I can get a PS3 for £250, or Elite for £200. That's not too bad. I don't see a price cut coming, TBH. Both consoles seem to be selling well (Grape vine. I don't know the figures.) and there's no reason to cut the price if you're product IS shifting.
MasterMS's Avatar - Comment posted on 02/24/2010 17:48
MasterMS
Why doesn't anyone mention the Wii? No one thinks $199 is a little pricey for it? Wasn't the gamecube like $99 at this point in its lifetime? Granted the GC wasn't in demand but I'm pretty sure the cost of the Wii is low enough to allow another substantial price drop. Think of how many more units they could move. As for the PS3 and 360 of course I'd never argue against a price cut, but I think the current prices are fair.
Tabijinka's Avatar - Comment posted on 02/24/2010 18:56
Tabijinka
Game prices need to go down before any of these developers can complain about console prices
Ubersuntzu's Avatar - Comment posted on 02/24/2010 22:17
Ubersuntzu
That goldman sachs guy is an idiot. Every gaming console since the atari all hooked up to tv sets that used essentially the same technology. Polygon counts, larger draw distances, better textures, and improved AI have always been what new consoles were all about.

Why would whether or not the big 3 roll out new consoles hinge on a decision to increase resolution? It's like this guy knows nothing about video games so he just assumes its related to dvds and blu rays.
Johnnyreb2565's Avatar - Comment posted on 02/24/2010 23:34
Johnnyreb2565
Well at launch there was no way I was paying $600 for a ps3. However, after the new slim I got one for Christmas, and have enjoyed getting alot of the good older games for used prices(not Gamestop used, real used prices). Only games I payed full price for was $20 Valkyrie Chronicles. (got Demon's Souls with the ps3 but only $60 game anyone in my fam payed for full price). That said, I now have copies of: MlB09, MGS 4, RES 5, killzone 2, Civ revolution, Oblivion, NCAA FB 09, Madden 09. The sports games under $10 and the others under $15.

Glad I waited till now the used game market is going the way of the frugal game buyer.
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