PS3 20% Price Cut and HDMI 1.3 on both SKUs

[CamDawg]

If this is true, Sony just sent more than a warning shot across Microsoft's bow.

Looks like all the bellyaching over the price of Sony's PlayStation 3 has done some good. Sony exec Ken Kutaragi just sent jaws to the floor over at Tokyo Game Show with an announced price cut of the 20GB PS3 base unit from ?62,790 to ?49,980 in Japan. Closer to home, we'd be looking at a move from about $538 to $428 (looking at current exchange rates) representing a drop of some 20% when the PS3 hits later this year, or uh, early next if the cut applies across the board. Not exactly cheap when looking at the Wii or Xbox 360, but that Cell processor, Blu-ray Disc player, and HDMI 1.3 output supporting Deep Color will certainly draw a premium. Yeah, you read that correctly, Ken announced HDMI support too, making the 20GB PS3 one fine Hi-Def movie machine on the cheap. Hoozah!

Update: Price reduction confirmed for Japan only. Waiting on rest-of-world price cuts, if any.

Source

Not sure how Sony can afford this, but if it's true in the U.S. also, you can mark me down for a PS3 for the Blu-Ray player alone!

[Quo]

wow. that would make things interesting for sure. I doubt we see all of that price cut in the US though.

[SpOoNmAn]

I also doubt it'll drop for the US. Sony MUST make money back on hardware asap, and if the 400,000 they are shipping will sell out, mind as well keep them at that original price so as to make more green stuff.

Even if its lowered, it goes back to the core/premium thing. How many do you think they'll actually ship of the cheaper one? very very few Im sure, forcing a purchase of the pricier one.

Sony is free to prove me wrong

[SHIBUMI]

Interesting...

I think it's because Japan is primarily their bread-n-butter so to speak for marketing. When all else fails, they can always point to the fact that the 360 is basically non-existent in Japan.

However - with their initial pricing - and the Wii coming out, I'm thinking they were really worried about losing that whole grip on Japan. That lower price should definitely cure that.

I really don't think we'll see it over here...

[SpOoNmAn]

Originally Posted by SHIBUMI

Interesting...

I think it's because Japan is primarily their bread-n-butter so to speak for marketing. When all else fails, they can always point to the fact that the 360 is basically non-existent in Japan.

However - with their initial pricing - and the Wii coming out, I'm thinking they were really worried about losing that whole grip on Japan. That lower price should definitely cure that.

I really don't think we'll see it over here...

Agree on all points

[SpOoNmAn]

Japanese analsyts weigh in(don't shoot the messenger)....

Sony's decision to reduce the price of the PlayStation 3 in Japan before the console has even launched has been branded "ridiculous" by a Japanese financial expert.

The outburst comes following Sony's announcement at the Tokyo Game Show that it is due to cut the Japanese price of the 20GB version of the console from 62,790 yen (421 euro) to 49,980 yen (335 euro).

"It's ridiculous to decide to cut the price before they start selling the PlayStation 3," said Yoku Ihara, head of equity research at Retela Crea Securities, speaking to Bloomberg.

"They may cut the price again if sales don?t go well," he added.

Sony will take a bigger hit on a launch it is already losing money on, as highlighted by Naoki Fujiwara of Shinkin Asset Management, who stated the price reduction, "is negative in the short term because the company may not be able to sell enough consoles to cover an instant loss caused by the price cut."

Personal opinions...

They did this to get back some good faith they've lost recently, which in the end they must feel is needed to combat Nintendo over there(they know Nintendo is super HOT right now).

Good for the consumers, and in the long run will show consumers that sony is willing to do what it takes to soften the blow of purchasing one.

[CamDawg]

Well, I really don't like Sony as a company; however, if they do make this cut in the US as well AND if the PS3 turns out to be a competent BluRay player, I'll pick one up. It really does seem like a deperation measure though. They were already losing a ton on the hardware; I wonder what their software attach rate will need to be in order to break even if they do make these price cuts globally.

[SpOoNmAn]

as far as attach rates, having only 6 games at launch doesnt offer a whole lot to people. Actually, that could force consumers to buy the most popular of those 6, helping their cause. Sony has never had a good attach rate for their consoles though, it'll be interesting to see if that changes. And its definitely a move of desperation.

Sony is coming across things that theyve never been confronted with. Launching systems according to their competitors timeframes, lowering prices to fend off their competitors, yada yada. They always dictated what was launched when and so on. MS changed that last November, and Nintendo is forcing a price war b4 the battle has officially begun.

Very interesting times we live in

[blars]

I saw this story come across this morning...pretty dang funny. Glad to see they're at least making some attempt to pull their head out of their behind.

I still won't buy it.

[WormholeXtreme]

I wonder if MS will now cut the price of the 360?

[SpOoNmAn]

When it comes to Japan, I have no idea what MS is doing. I still cringe when they send Peter Moore over to give his scripted, western-marketed speeches that bore the japanese to death. And the ones who don't get bored, get offended.

I'll stop there as to not derail the thread.