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PS3 price cut? More like a liquidation sale photo

In an interview with GamesIndustry.biz, SCEE President David Reeves let us in on the truth behind the 60GB PS3's price drop -- apparently, the 60GBs are getting the markdown in America because Sony's going to stop selling them here.

How concerned are you about possible criticisms that you should have given European consumers what SCEA has given US consumers, i.e. the option to pay a lower price?

Well, they're not really are they, because what the US are offering from the 1st of August is a USD 599 version with one game. All they're doing is taking their stock in trade that they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July.

So once the 60GB is gone, that will be the end of the 60GB then?

In America, yes.

Well, that explains that, doesn't it?

Reeves also explains that, owing to a lower cost of memory in Europe, the difference in cost between a 60GB PS3 and an 80GB PS3 there is "just Euro cents; it's nothing," and that therefore it makes more sense to just stick to one model:

Probably we could have gone for 80GB, but does it really make any difference? We just know that we get a better supply on the 60GB than we will on the 80GB. So we chose to continue with the 60GB until we find that we can get something better, maybe lower cost. It just didn't seem necessary to us.

He also says the fact that their 60GB "has about 88 percent backwards compatibility," compared to our 100 percent.

Looks like if you want a discounted PS3, you should grab one now. 

[Via GamesIndustry.biz ]


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66 comments | showing # 1 to 50

WastelandTraveler's Avatar
WastelandTraveler at 07/13/2007 09:38
Oh Sony, why do you bastardize your child so much.
synce's Avatar
synce at 07/13/2007 09:38
It's almost as if Sony wants to fail.
saxomophone's Avatar
saxomophone at 07/13/2007 09:39
does anyone who paid full price for the 60gb model feel betrayed at all? "80gb ps3 set to be phased out sometime in '08"
Kryptinite's Avatar
Kryptinite at 07/13/2007 09:41
Is anyone that surprised? I thought not.
DeusPayne's Avatar
DeusPayne at 07/13/2007 09:41
laff
twesterm's Avatar
twesterm at 07/13/2007 09:47
Yay, so Sony makes a price cut disguised as a clearance sale and then once those are out prices raise back to $599. Can't you see the public outcry once that happens?
Aex's Avatar
Aex at 07/13/2007 09:47
If this is true, It is such a horrible way to the what has been a good week for Sony. /sigh
Aex's Avatar
Aex at 07/13/2007 09:48
... I meant to say, horrible way to end what has been a good week... I'm so tired :(
BluDesign's Avatar
BluDesign at 07/13/2007 09:53
This will be what happens from here on out on the PS3. Every 6 months we get a hardware refresh in the form of a new HDD, which can help keep prices artificially high longer.

The cost of slapping a new $50 premium sized HDD in there is too easy to pass up to keep the console's costs high.

Plan on seeing reintroductions of the 20 GB version's featureless body and style sometime next year, but with a 60 or 80GB drive slapped in there. I'm calling it right now. There will be a 120-160 GB PS3 to complement it on the high end of things.
Mxyzptlk's Avatar
Mxyzptlk at 07/13/2007 09:53
Wow, I can just imagine the backlash now.
Artadius's Avatar
Artadius at 07/13/2007 09:53
Bait and switch?
brainderailment's Avatar
brainderailment at 07/13/2007 09:54
Yeah, it sucks. Hopefully (for their sake) they will change their mind. They should've just put a 120Gb Hdd in the 599 and brought the 60Gb to stay at 499.
Zero Iscariot's Avatar
Zero Iscariot at 07/13/2007 09:55
I know you guys are sick of this, but...

Please Digg this
morbo47's Avatar
morbo47 at 07/13/2007 10:02
Wow, that sounds like it borders on... illegal

Did no one at Sony go to business school? Do they know nothing about consumer confidence or, you know... good will?

The 80 gig version, how much is that in the US? Did they not drop the price on that too?
Zero Iscariot's Avatar
Zero Iscariot at 07/13/2007 10:04
The 80GB is $599US, and will be the only North American SKU, and won't have hardware based backwards compatibility.
twesterm's Avatar
twesterm at 07/13/2007 10:04
@Zero
I already hate Digg and all the attention whores who ask everyone to digg their article enough already, but why would I digg your article that is a pure rumor and not even a good one at that?
TheHunter234's Avatar
TheHunter234 at 07/13/2007 10:05
Wow, they took one of the best possible business actions available to them and turned it in to something that's just going to piss more people off. I guess the next couple of months will be the best time to pick up a PS3, unless they indeed start constantly updating them Nintendo-style: PS3 Lite, PS3 SP, etc.
DrXym's Avatar
DrXym at 07/13/2007 10:11
This is a pretty stupid story. If they've bumped up to 80Gb then OF COURSE THEY'RE GOING TO GET RID OF THE 60GB MODELS. It does not mean however that once they do that the price jumps back up to $600. It'll stay where it is with an unbundled 80Gb version to replace it.
<p>
As for the software BC, it works just fine.
BluDesign's Avatar
BluDesign at 07/13/2007 10:17
Isn't the new PSP a revision? Shouldn't they call it the PSP SP? or PSP PS SP?
Malleus's Avatar
Malleus at 07/13/2007 10:18
@DrXym..according to kaz they will stay at 599 after the 60GB goes away..check the interview out. He answers in English.

http://atvs.vg.no/player/index.php?id=10235

(around 1:45, *Website is foreign but interview Kaz answers in English)
GuitarAtomik's Avatar
GuitarAtomik at 07/13/2007 10:21
I really doubt they would do this without repackaging the 80gb sans Motorstorm, and dropping that price to $499. They'd have to be really, really, really, stupid to do that.
TorpedoTed's Avatar
TorpedoTed at 07/13/2007 10:21
I guess thats why they are not gonna sell the 80gb ones in Europe becasue there are so many 60gb ones still around!!
This sux!
Malleus's Avatar
Malleus at 07/13/2007 10:23
Yeah maybe so Leigh, Microsoft probably saw it coming although its been 18 months...they could cut us a break with a price drop anyway. :) I think we will see one before xmas regardless.
Malleus's Avatar
Malleus at 07/13/2007 10:25
@GuitarAtomik

Judging by their PS3 trackrecord so far I would say that while the people at Sony may not be really, really stupid they often make really, really stupid (out of touch with consumer) decisions.
GuitarAtomik's Avatar
GuitarAtomik at 07/13/2007 10:28
@Malleus

If that's true, then that's amazing. The only reason I'm doubting this story at all is because it would be the single dumbest move since releasing the console at $600. My logistics center refuses to believe any company could be that dumb.
kenoji's Avatar
kenoji at 07/13/2007 10:30
This tactic doesnt seem that brillant. Whats the point of the price drop in the first place if your going to discontinue that model for a another with the old price tag?

Then again, ALOT of the old models did not sell, so they should still be there to buy collecting dust.

However, I see no logic in the huge price difference between the old model and the. 100 dollars doesnt equal 20g. Thats just highway robbery! With this announcement, it seems like Sony is trying to just gouge the consumer.
Malleus's Avatar
Malleus at 07/13/2007 10:34
@Guitar

I agree with you bro, its almost inconceivably dumb but that is what Kaz is saying pretty clearly in teh video. Obviously nothing is set in stone and things can change but as of right now it does indeed appear that is what they are going to do at least initially.
Malleus's Avatar
Malleus at 07/13/2007 10:36
@Guitar

...and if you think about it, that is what Sony does with all their consumer electronics...they put out new slightly improved versions and cost reduce the remaining shelf stock of their old stuff every 6 months or so. Just take a look at their tv's and you will see it.
Zero Iscariot's Avatar
Zero Iscariot at 07/13/2007 10:37
TWESTERM:

I appreciate your ignorance, but facts are only rumours until they are facts.

And yes, we spell rumour with a "u" in Canada.
SLiFE's Avatar
SLiFE at 07/13/2007 10:38
I was considering getting the 20GB model until it was discontinued.
I was considering getting the 60GB model in the spring until I heard this.

Isn't the 2600% jump in sales on Amazon indication enough?
People don't want to pay $600 for a fucking console.
GuitarAtomik's Avatar
GuitarAtomik at 07/13/2007 10:38
Well I also thought they'd never get rid of the 20Gb version since it was their best way of staying close to the X360 price wise. And yet here we are.
DrXym's Avatar
DrXym at 07/13/2007 10:44
@Malleus, I really wouldn't put much faith in WHAT they say at the moment. They're trying to clear their inventory of 60Gb PS3s and they are hardly going to say that they'll replace it with. Doing that would dampen sales of the very consoles they're trying to get rid of. It's fairly obvious that once the 60Gb model is history that we'll see something to replace it at the same price point. Sony are not going to hike the price back up (even as a bundle) when Christmas is around the corner.
kintaeb's Avatar
kintaeb at 07/13/2007 10:46
Lol, I actually started to have some respect for Sony. Their press conference wasn't overly arrogant, they showed some actually good looking titles. Now this hits and they are once again the worst company in the history of everything. Ok, well maybe not THAT bad, but this isn't helping them.
Malleus's Avatar
Malleus at 07/13/2007 10:47
@DrXym

You can put faith in money though and it's no secret that they are still losing alot of money on the sale of the hardware. Honestly I dont see them being in that position to cost reduce yet because the way they make up for selling the console at the loss is with game sales....which are obviously very poor at the moment. Only time will tell but I dont have alot of faith in Sony anymore. Not saying the PS3 is bad but I just dont trust the company anymore.
Malleus's Avatar
Malleus at 07/13/2007 10:48
@DrXym

You can put faith in money though and it's no secret that they are still losing alot of money on the sale of the hardware. Honestly I dont see them being in that position to cost reduce yet because the way they make up for selling the console at the loss is with game sales....which are obviously very poor at the moment. Only time will tell but I dont have alot of faith in Sony anymore. Not saying the PS3 is bad but I just dont trust the company anymore.
Malleus's Avatar
Malleus at 07/13/2007 10:48
oops ;)
falsoman's Avatar
falsoman at 07/13/2007 10:49
I almost can bet you, that they are going to sell out the 60GB version, put the 80GB and sell it at $600, and sometime at the hollydays take out the pack-in game and sell it at $500 and people will be again OMG they had a price cut of a hundredz!!!

Then it will sell good again.
twesterm's Avatar
twesterm at 07/13/2007 10:53
@Zero
Are you trying to imply that all rumors become facts or that we can really believe that you have some buddy that magically knows something that nobody else knows?

Fact is that is only a rumor and should not be taken as any kind of fact or even potential of becoming a fact until (if) it actually does happen.
twesterm's Avatar
twesterm at 07/13/2007 10:57
And I still stand by my comments about Digg
Joe Burling's Avatar
Joe Burling at 07/13/2007 11:00
And everyone bitched about the 360 sku's being confusing.

I'm still not convinced Sony even dropped the price in the first place.
GuitarAtomik's Avatar
GuitarAtomik at 07/13/2007 11:00
@twestern

It's not a rumor when the exec of the company is on video saying it in clear english. How is that a rumor?
Topher Cantler's Avatar
Topher Cantler at 07/13/2007 11:01
Wow, WHAT the FUCK. He's basically saying, "Our customers are blithering dolts and won't notice what we're doing; so much so that I'll just come right out and admit to it."

How stupid do they think we are?
Zanch's Avatar
Zanch at 07/13/2007 11:01
Oh Sony...what have you become?
xtofuconsumerx's Avatar
xtofuconsumerx at 07/13/2007 11:11
Just when i was getting excited about actually wanting to purchase a ps3 now this crap happens. Damn them all.
Zero Iscariot's Avatar
Zero Iscariot at 07/13/2007 11:19
TWESTErm is refering to THIS.

I'm pretty sure my friend does magically know something that you don't, he buys $300 Million worth of electronics every quarter, the next quarter for MS just happens to be starting in August.
RskimB's Avatar
RskimB at 07/13/2007 11:30
I was seriously considering getting a 60gb, ah Sony what have you done you bastards.
Baron Calico's Avatar
Baron Calico at 07/13/2007 11:31
Hey Sony! Quit hittin' yerself! That one looked like it hurt! Quit hittin' yerself!
joeisremy's Avatar
joeisremy at 07/13/2007 11:33
RAPE!

Where the fuck is my whistle?
OutrageousToob's Avatar
OutrageousToob at 07/13/2007 11:35
I hate this console generation, I really do... While some of the games are great, this multiple SKU bullshit is out of control. If I wanted to buy a new PC, multimedia hub, or otherwise I'd fucking buy one. I just want a damn games machine, but no... every fucking company on the planet wants to be interwebbed into our livingrooms with their fancy-schmancy XboxStation-CellVist-PlayMedia-Multi360Grapho-Spectrometers.
brainderailment's Avatar
brainderailment at 07/13/2007 11:41
I guess we can say so much for selling 11million this year. I don't think they can do it.
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