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Sony: PS3 price cut not a reaction to bad sales photo

Sony's still basking in the good press earned over its $299 price cut. Nevertheless, the platform holder wants to silence the wagging tongues of cynicism, stressing that the price cut did not come about as a reaction to slow PS3 sales.

"We are aware that consumers are watching their euros and pounds more carefully than before and it may make a price reduction have potentially even more impact," says SCEE president Andrew House. "But it would not be fair to say this is a reaction to current market conditions."

House also had nice things to say about the PlayStation Network, and how it factors into Sony's mythical ten-year plan: "The goal is to move from a traditional short, toy-based life cycle to a longer, consumer electronics life cycle. The network allows us to give customers a better sense of value and continuous improvement."

What do you think the motivation was behind the price cut? Slow sales, the constant pressure from publishers, or something else entirely? Play the role of an analyst and take a wild guess.








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25 comments | showing # 1 to 25
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Hopeless Savage's Avatar - Comment posted on 08/24/2009 19:28
Hopeless Savage
While I'm a firm believer that Valve never intended to stop releasing content for Left 4 Dead 1, in this nearly identical claim from Sony regarding the ps3 price cut, I have to say I'm skeptical. I'm aware of the discrepancy, but it's only with a small trace of irony that I say this is because Sony is full of pompous douchebags and I'm tired of their shit.
doctorzizmore's Avatar - Comment posted on 08/24/2009 19:28
doctorzizmore
Obviously the price cut isn't in response to bad sales, or they would have done it like a year ago. What befuddles me is why they aren't taking this opportunity to PRETEND like it's due to the recession or consumers not being able to afford it. That would at least make them look like a sensible and likable institution. By saying that 'this is all part of the larger plan' they just make themselves seem like the outmoded, slow-to-react dinosaur of a company that they really are...which won't stop me from buying a PS3 slim. Finally.
doctorzizmore's Avatar - Comment posted on 08/24/2009 19:28
doctorzizmore
Obviously the price cut isn't in response to bad sales, or they would have done it like a year ago. What befuddles me is why they aren't taking this opportunity to PRETEND like it's due to the recession or consumers not being able to afford it. That would at least make them look like a sensible and likable institution. By saying that 'this is all part of the larger plan' they just make themselves seem like the outmoded, slow-to-react dinosaur of a company that they really are...which won't stop me from buying a PS3 slim. Finally.
doctorzizmore's Avatar - Comment posted on 08/24/2009 19:28
doctorzizmore
Obviously the price cut isn't in response to bad sales, or they would have done it like a year ago. What befuddles me is why they aren't taking this opportunity to PRETEND like it's due to the recession or consumers not being able to afford it. That would at least make them look like a sensible and likable institution. By saying that 'this is all part of the larger plan' they just make themselves seem like the outmoded, slow-to-react dinosaur of a company that they really are...which won't stop me from buying a PS3 slim. Finally.
themizarkshow's Avatar - Comment posted on 08/24/2009 19:29
themizarkshow
I think it was a combo of slow sales, publisher pressure, and the fact that it was costing so much less to make them that they could finally drop the price and actually make some money. I do think the PSN helps though... saving $50 a year and being able to use any bluetooth headset you have for a mic saves some serious cash in the long run.
Hcapt's Avatar - Comment posted on 08/24/2009 19:29
Hcapt
Wild guess - customers did not view the PS3 as being worth $400, so Sony had to decrease the price to put the console in line with customer expectations.

9 months of anticipating price cuts couldn't have helped the PS3's sales either.
ouched's Avatar - Comment posted on 08/24/2009 19:29
ouched
I've put on my analyst hat.. Sony lowered the price in response to the light hurricane season we've had thus far in the States. That makes about as much sense as a price cut without slow sales.

There's on one system that hasn't seen a price cut yet, Sony, and it happens to be the box that waggle built, for better or worse.
RonBurgandy2010's Avatar - Comment posted on 08/24/2009 19:31
RonBurgandy2010
What's with the crawfish?
doctorzizmore's Avatar - Comment posted on 08/24/2009 19:31
doctorzizmore
those multiple posts were obviously to help you pad your wallet, Jim.
danthemagnum's Avatar - Comment posted on 08/24/2009 19:44
danthemagnum
I think that this has more to do with the general over all support, meaning consumer, retailer, developer, and publisher. I think Sony kind of spread itself a little thin trying to be everything to everybody and now wants to focus its efforts a little more into selling the games, while also supporting other options as well such as music streaming, video downloads, etc.
BlackSunEmpire's Avatar - Comment posted on 08/24/2009 20:02
BlackSunEmpire
Why do these companies treat us like we're all stupid?? I'm sure when this is reported in less videogame-centric circles (does it get reported in less videogame-centric circles??) it doesn't look as rediculous. But I think we all know the PS3 wasn't exactly flying out the door, and the rumours of an imminent price cut weren't helping. They really had very little choice given their sales stats.
Sentry's Avatar - Comment posted on 08/24/2009 20:28
Sentry
All of the above. But they did it once all of their ducks were in a row and not a second before.
Havoc Fang's Avatar - Comment posted on 08/24/2009 20:40
Havoc Fang
I blame the price drop on the war on terrorism.
donkeykong's Avatar - Comment posted on 08/24/2009 20:47
donkeykong
@doctorzizmore, regarding your "What befuddles me is why they aren't taking this opportunity to PRETEND like it's due to the recession or consumers not being able to afford it."

I'm not sure why you'd encourage them to be dishonest. Particularly in this case though, if a company told me "hey we figured you could use the help so we just straight up are charging less now, no other reason", I'd wonder how they justified their previous price. When they say "well it costs us less to make this now, so the savings are passed on to you" no one gets angry and the effect on our wallets is the same.
ViciousBoston's Avatar - Comment posted on 08/24/2009 20:58
ViciousBoston
who cares? you get to keep 100 dollars or use it on more PS3 games. SLIM PICKINGS!!!
Genebeef's Avatar - Comment posted on 08/24/2009 21:27
Genebeef
wow, even in the face of admiration from doing something right for once, they can never say straight face: it's because we're getting the shit kicked out of us from the wii and 360
Bilar's Avatar - Comment posted on 08/24/2009 22:41
Bilar
@RonBurgandy2010

because they taste good and Jim's from the South now, which is Crawfishland.
Orionsaint's Avatar - Comment posted on 08/25/2009 00:04
Orionsaint
No company in history has ever admitted they are failing.

Oh the reason we're releasing this cheaper system is because the PS3 was not selling well.

Hahaha!
Sexualchocolate's Avatar - Comment posted on 08/25/2009 03:43
Sexualchocolate
i think they've cut the price because....


THAT WAS THEIR PLAN ALL ALONG!

The Japanese way is to look way forward, plan accordingly and execute your plan. Sure it's not what us Westerners are used to, we see our companie using every available opportunity to grab sales and change up our strategies on a monthly / weekly basis. The Japanese don't, they make a well thought out plan, and stick to it.
denjunki's Avatar - Comment posted on 08/25/2009 03:56
denjunki
I think that Sony are telling the truth--sort of. It depends on what they mean by "not because of bad sales". If they mean "not because of bad sales of consoles", then they must mean they cut the price because of bad sales OF GAMES, where they make their money. And you generally can't sell PS3 games to people who don't own PS3s. (If I sound like a broken record to the 5 of you who've read my only blog post, I apologize.)

And sure, that's probably in combination with lower build costs, but the price dropped nearly 40%, which I don't think can be made up entirely by lower build costs.
Tha_Meat's Avatar - Comment posted on 08/25/2009 06:49
Tha_Meat
Hasn't Sony produced smaller versions of all of there consoles up to this point? Yes. PS1, PS2 and PSP (not talking about PSPgo) have all been reduced in size and sony has probably been working on the new PS3 for awhile now. I would say atleast 1-2 years. Redesigning a console and including smaller parts doesn't take over night. There are a million configurations for all of that hardware and this is just what Sony does. The good thing with the consloe size reduction is that a price cut has always been attached to it.
Cynical Gamer's Avatar - Comment posted on 08/25/2009 07:36
Cynical Gamer
They need to drop it 50 more bucks. The PS3 would sell like hotcakes (most people would buy it for the blu-ray LMAO).
Everyday Legend's Avatar - Comment posted on 08/25/2009 08:16
Everyday Legend
It's like saying "We saved you from this burning building, but it wasn't so we could save anyone's lives, yours especially."

Say what you will about a "Japanese Plan" or any other comment that may reek of rampant fanboyism - it only goes to further prove the long-standing assumption that Sony is content with acting like a prep school douchebag that realized that a vast majority of the people he wanted to come to his party lacked the sheer tonnage of coin it takes to even get through the fucking door.

To their credit, it doesn't cost much once you get through the door, but to talk like you're doing the world a favor LONG after you should have done the world a favor sounds pretentious as hell.

Which, as history has shown, is par for Sony's course.
Sentry's Avatar - Comment posted on 08/25/2009 14:42
Sentry
The Destructoid spin room is a beautiful, colourful place.
Archwright's Avatar - Comment posted on 08/25/2009 15:16
Archwright
Sony... the only reason you can say crap like that is because nobody believes you anymore. We know that you mean the exact opposite of what you say.
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