Think about it. No price cut for Christmas

Nov 13, 2004
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#1
Think about it. Sony is a business. It's also Christmas time. The time of the year when people start shopping sprees. They're going to sell PS3s regardless. It's a wanted console because of all its features. And its price.

Come around March, when the video game industry slows down. Price cut? Most probably. That's when PS3 sales pick up.

Get the logic?

So expect no price cuts for this Christmas
 

Masked Maniac

Dedicated Member
Jul 27, 2008
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#3
Yeah it makes sence. A price cut around march was confirmed in the Sony Computer Entertainment Staff Annual Briefing thingy as well, if you believe the leak anyway.
 

Klynton

Apprentice
Apr 13, 2008
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#4
We've had a 'price drop' of sorts in the UK.

Play / Game etc are now doing deals like - 80GB PS3, 2 new games, BD DVD, PS3 Remote for £300.

Seems like a Christmas deal for here.
 

babybell

Elite Member
Oct 10, 2007
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#5
[QUOTE="Klynton, post: 0]We've had a 'price drop' of sorts in the UK.

Play / Game etc are now doing deals like - 80GB PS3, 2 new games, BD DVD, PS3 Remote for £300.

Seems like a Christmas deal for here.[/quote]

The sad thing about the Ps3 and blu Ray bundles, it that you still see Casino Royal being offered.

Where i am, I havent seen many PS3 being sold in the lead up to christmas. Certianly alot of people after Wii fit!
 

J3ff3

Elite Guru
Dec 30, 2006
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#6
ummm economics lesson? :D


The more you sell at a price the more you saturate demand (so to speak) - which is why a demand curve is downward sloping.

A business wants to make profit. Profit comes from revenue which is clearly price x quantity.

So yes, Sony can keep the Price high - but that doesn't necessarily make business sense given that they've had a year and a bit of being at £300. They would do better to earn more revenue via quantity. So higher revenue by lowering price and raising quantity sold.

Yes they can continue to sell at £300 so long as sales don't taper off - but given that this is also about market share they would do better to increase volumes.
 

jaewest304

Elite Member
Jun 21, 2008
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#7
[QUOTE="J3ff3, post: 0]ummm economics lesson? :D


The more you sell at a price the more you saturate demand (so to speak) - which is why a demand curve is downward sloping.

A business wants to make profit. Profit comes from revenue which is clearly price x quantity.

So yes, Sony can keep the Price high - but that doesn't necessarily make business sense given that they've had a year and a bit of being at £300. They would do better to earn more revenue via quantity. So higher revenue by lowering price and raising quantity sold.

Yes they can continue to sell at £300 so long as sales don't taper off - but given that this is also about market share they would do better to increase volumes.[/quote]

Can't do price cuts when you're losing money..business lesson #2
 

Vampirtc

Super Elite
Jan 24, 2006
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#8
[QUOTE="jaewest304, post: 0]Can't do price cuts when you're losing money..business lesson #2[/quote]

This has never stopped them before. Consoles usually sell by losing money and gain with addons and games.
 

J3ff3

Elite Guru
Dec 30, 2006
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#9
[QUOTE="jaewest304, post: 0]Can't do price cuts when you're losing money..business lesson #2[/quote]



"Loss leader" - the money is in the games. Business lesson no.3

:p
 

Sieghardt

All-Knowing RPG Tyrant
Aug 19, 2008
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#10
they're focusing on value ratehr than cheapness atm
Stores in ireland are offering PS3 + 2 games + a Bluray movie for €400
 

J3ff3

Elite Guru
Dec 30, 2006
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#11
[QUOTE="Sieghardt, post: 0]they're focusing on value ratehr than cheapness atm
Stores in ireland are offering PS3 + 2 games + a Bluray movie for €400[/quote]
yeah? and i could get a 60 gig in the uk just before they were discontinued with the same deal for cheaper.

doesn't seem like the best deal in the world when you compare it to last year.
 

Mana Knight

Elite Member
Dec 22, 2006
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#12
I think a lot of it has to do with, Sony has a particular target they want to achieve for PS3 in sales. Their goal isn't to outsell MS or Nintendo, just sell a certain number of consoles at the price it's at. So far according to them, they are ahead or on schedule.

MS on the other hand was all about beating PS3, and when 360 sales dropped significantly all year, they felt the need to drop the price significantly.

What I see Sony trying to do is sell what they have for Christmas (People are more likely to buy around Christmas than March). They should reach their sales target by March, and once they do they might just go ahead and drop the price. Or even, March could be the time a 45nm cell is ready. The biggest factor in the high PS3 costs is the cell, and having another significant reduction could reduce costs even more.
 

skulpt

Master Guru
May 27, 2005
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#13
This is what happened last year around Christmas:

360 sells more in the US in general. Sony waits until the new year, and begins to sell more than the 360 everywhere. MS introduces 1 PC in Europe and they were still selling less. Introduce a second one 6 months later to get things going and PC in the US. They will sell more again this Christmas. Sony will again have a PC in the new year it seems, and most likely sell more than the 360 until they do another PC. Thing is with MS, they have stated the next PC probably won't be for a couple of years, at least in Europe. I'm not sure there is much they can cut down in cost below $200. How much further can they cut the price of a tray DVD drive? ;) The PS3 still has expensive BR, and the Cell, which by no means are in main stream production and cost efficiency yet. The PS3 has a ways to go for cutting costs down. At least more so than the 360.

Let's just say this. People were viewing the 360 even more as the sure winner in 2008 at the end of 2007 with sales way higher than the PS3. Then reality hit with the PC that people really did like the PS3. Enough so to pay more for it and buy more of them until MS drastically cut prices to get the attention away from Sony.
 
Nov 13, 2004
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#14
[QUOTE="J3ff3, post: 0]So yes, Sony can keep the Price high - but that doesn't necessarily make business sense given that they've had a year and a bit of being at £300. They would do better to earn more revenue via quantity. So higher revenue by lowering price and raising quantity sold.[/quote]

There's a formula I learned in math awhile back. It's how much you should price something and how much you plan on selling for the most profit. Basically, a high price and less sales would earn you less money than a cheaper product with more sales. You gotta find the right price point.

The thing about Sony and the PS3, they can't really lose that much more money and expect to make it back with games and add-ons. Sony already lost the profit they earned from the PS2 days. So now they have to try to profit from the PS3. No more losing money.

So they can't cut prices until the 45nm Cell, RSX, and making other hardware efficient and cheap.

The PS3's already selling decent. Around Christmas, no doubt it'll sell better. So why lower the price? Yes, they'll sell more if they lower it. But they would also lose money.

They're on the 10 year plan. They still have quite a few Christmas to go. ;)
 

Sryche22

Superior Member
May 19, 2006
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#16
I was at a few electronics stores and department stores yesterday and the PS3 bundles now are a really good value....add on to that any additional sales or coupons, or gift certificates (like Best Buy) and December/January should be pretty good months to buy...this is of course the one time of the year that everyone feels a little less guilty about splurging...even if the economy isn't the greatest...Happy Holidays!! =)
 
E

electricmine

Guest
#17
Yes, they don't need a pricecut right now. That would be business suicide. Not sure if the PS3 will outsell the 360 now here in the U.S but they should do very well in other parts of the world. Sony just needs to keep up with the HEAVY, and I do mean HEAVY advertising.
 

Sryche22

Superior Member
May 19, 2006
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#18
[QUOTE="electricmine, post: 0]Yes, they don't need a pricecut right now. That would be business suicide. Not sure if the PS3 will outsell the 360 now here in the U.S but they should do very well in other parts of the world. Sony just needs to keep up with the HEAVY, and I do mean HEAVY advertising.[/quote]

Yes...advertising is the key right now....if they had one that showed the PS3 and a SONY Bravia LCD they could hopefully kill 2 birds with 1 stone..hehe
 

coolguy

Ultimate Veteran
May 24, 2005
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#19
sony will sell a lot of consoles this hoilday. but if the console was cheaper they would have sold maybe Double.
and that sony guy said that they will drop the price in march,,, why would he say this beforee a hoilday,,,
well if the PS3 gets a price drop iam sure MS will drop the 360 agian
 
Nov 15, 2008
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#21
[QUOTE="jaewest304, post: 0]Can't do price cuts when you're losing money..business lesson #2[/quote]

Risk Mangement 101. Take a chance losing money from consoles and make it back through everything else.
 

tuaamin13

Elite Member
Jul 11, 2007
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#23
[QUOTE="DorseyJay2FP, post: 0]Risk Mangement 101. Take a chance losing money from consoles and make it back through everything else.[/quote]

Being a Publicly Traded Company 101:
Share holders want to make money. You can't bleed it off and expect to keep your job.

Think of it this way: Sony's PS2 division made boat loads of money. The share holders were happy. PS3 is now burning through that money, and it was unexpected. The shareholders are not happy. That is why they are keeping the price with minimal losses, but still having high sales (for the games).

Conversely, MS came in with a war chest for XBOX (1) and expected to lose money, knowing they'd establish a foothold in the market and try to claw their way in with the (Xbox 360). The share holders are happy knowing that the 360 division is now in the black.
 
Nov 13, 2004
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#24
[QUOTE="1jessegd, post: 0]Why do you care you got you're ps3. Stop you're console war crap.[/quote]

We're just... Talking about a price cut?
 

Plazaskater

The Hero From Vault 101
Jan 31, 2008
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#26
Yeah Sony is def. not dropping the price anytime soon. Let the 360 price cut cool off some then start thinking about dropping it.
 

Ethos

Apprentice
Oct 19, 2006
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#27
You people with your calculations are forgetting one major thing Sony doesn't quite want to do with the PS3 and I've yet to see anyone mention it. Price the PS3 to low and kill off potential stand-alone Blu-Ray player sales and upset others. Sony is doing a decent job of walking the thin line allowing other businesses to make money off selling the stand-alone Blu-Ray players while trying to make a push into the gaming side of things. A price cut when Killzone drops sounds like what they ultimately need to do along with a huge marketing campaign. They have to try and allow the stand-alones to make a break through all while pricing themselves effectively to not lose to much money on the PS3 itself since it has already cost so much. As someone has said they are already on target to meet their goals so they are fine for the most part. Remember for Sony and the PS3 this is a marathon and not a sprint.
 

jaewest304

Elite Member
Jun 21, 2008
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#28
At all the business majors here...why aren't you guys running a multi-billion dollar a year company...oh because you "think" but don't KNOW what it is you're talking about. Sony WILL cut prices but not until they decide they need to do so. They have a plan and just like the other two PS consoles before this one Sony will bring in the money.

Rule 1 to making a profit in ANY business is never ever under cut yourself. If you have the better product and know exactly what you need to make off each unit you do not take a loss (which Sony did already due to selling the PS3 for less than it costs to make it) and drop prices until you have made enough of an install base to be able to do so.

People need to understand that a holiday season price drop this is WILL NOT happen. Sony has no need to do it. I believe early next year there will be a price drop and that will be a good time for Sony to do it because they will have a very large game library to help ease the loss on the console price drop.